Service Agreements
& Maintenance Contracts

Why Service Agreements Are the Key to Business Stability

Service agreements (maintenance contracts) are the best business model in HVAC contracting. They create predictable recurring revenue - money that comes in whether you get emergency calls or not. A technician with 200 maintenance agreement customers has 200 guaranteed service calls per year before making a single marketing call.

? The Math

200 customers ? $180/year = $36,000 in guaranteed annual revenue. Those 200 customers also call you first for repairs, replacements, and referrals. A technician who converts 30% of service call customers to maintenance agreements in year 1 creates a business that continues growing automatically.

What a Standard Residential Maintenance Agreement Includes

Typical annual agreement for one system (heating + cooling):

Spring AC Tune-Up

Check and record refrigerant pressures (superheat/subcooling)
Clean condenser coil
Test and record electrical components (voltage, amperage at compressor and fan)
Test capacitors with capacitor meter
Test contactor for pitting and proper pull-in
Flush condensate drain
Check and clean evaporator coil (if accessible)
Check thermostat calibration and operation
Replace filter (if included in plan)
Provide written report with findings

Fall Heating Tune-Up

Test and record gas pressure (manifold and line)
Test heat exchanger for cracks (visual, CO test)
Test ignition system and flame sensor
Clean burners
Check flue for blockages and proper draft
Test limit and safety controls
Record temperature rise
Test blower motor amperage and check belt if applicable
Replace filter (if included in plan)

Pricing Your Agreements

Plan Type	What's Included	Typical Price
Basic	Two tune-ups per year (spring + fall)	$120-$160/system/year
Standard	Two tune-ups + filters + priority service	$160-$220/system/year
Premium	Two tune-ups + filters + priority + repair discount (10-15%)	$220-$320/system/year

How to Sell Maintenance Agreements

The easiest time to sell a maintenance agreement is at the end of a service call when the customer has just seen you work and trusts you. The conversation:

"Mr. Jones, your system is working great now. I noticed your capacitor is starting to get weak - within normal range but worth watching. Our maintenance plan would catch issues like this before they become emergency calls. It's $189/year and includes both your spring and fall tune-ups plus a discount on any repairs. Want me to get you set up today?"

Key selling points:

Prevents breakdowns during peak season (when it's 95?F and every tech is booked)
Priority scheduling - maintenance customers go to the front of the line
Extends equipment life and maintains efficiency
Typically costs less than one after-hours emergency call

? Module 4 Module 6: Financial Basics ?