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Service Contract Marketing help

Discussion in 'Irrigation' started by SprinklerGuy, Nov 12, 2004.

  1. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    This could make a huge difference in how well my company does in the future without my input...so any help is much appreciated.

    I have already gotten some input from DanaMac...Dana, I am just trying to get some other opinions. LOLThose that know me..know that change is in the wind. I have downsized significantly and I will probably not make the money I once did in the sprinkler business...but:

    I have a plan to change the way my company does business in AZ and I would like to get the word out to my clients. I plan to sell my service contracts, as many as possible, much like a home warranty but for sprinklers. I sold almost 100 of them last year without much of a push..I would like to sell 300-500 of them this year. That would be significant revenue and would help ease my worries about debt service etc.

    How does one go about promoting a new idea such as this. I plan to enclose a blank service contract in each copy of my newsletter that goes out soon. Should I then follow up with phone calls and more mailers?

    My tech really did a great job last year of selling them to repair clients..hopefully he continues as I have made the policy even more attractive.

    Any help would be much appreciated...
  2. aquamtic

    aquamtic LawnSite Senior Member
    Messages: 303

    Tony, Many companies here in my area really depend on annual service contracts. I will also be implementing thm more here. I will also be doing special weekly/monthly walk through contracts for commercial sites.

    Lets exchange some ideas.

  3. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    Paul...glad to.

    My plan is to have enough service contracts to keep one employee busy most of the year.....He will answer the phone and deal with all service contract customers himself...all other calls will be routed either to me or a sub or another tech.

    I plan to make this policy easy to buy and easy to understand...it will include 2 regular visits one in spring and one after overseeding of rye grass in fall early winter. also...all other repairs necessary will be free or have a deductible..depending on plan chosen.
    Also...small deductible will be paid to replace timer

    All of this is based on a home warranty/service contract I have on my rental home covering appliances etc.
  4. Rotor-Man

    Rotor-Man LawnSite Member
    Messages: 126

    I've always been a one man operation, doing a blend of new installs and repair and winterization work. I operate mainly by refferals and small advertising in a local newspaper. I would like to do more repair work, but don't really know what medium is best for getting the word out. Would like to know more how you structure your service contract and what it includes.
  5. Mdirrigation

    Mdirrigation LawnSite Gold Member
    Messages: 3,746

    You do have to structure it so its not construed as an insurance policy . You will need a trip charge or some customers will call you every week, you will need to limit replacing heads to those that are defective , not damaged or broken by others .
    ( the customer could potentially break every head on a 10 year old system and expect new) Exclude everything you cant control . Especially defects due to improper installation . I have a very comprehensive service policy 90% complete.
    Marketing it is simple leg work ,and paper work , I have a log of everyone who has called for service or an estimate for 22 years, You can also walk neighborhoods that you know have a lot of systems and write down adresses in the winter. I am sending dirrect mail to people I know have systems , I am anticipating a 30% return on 3000 mailings.
  6. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    I have had service contracts in place now for about 5 years...each year I tweak them. Last years was the best so far all the way around. We are getting $335 and it included 2 tuneup/checkup type visits and all other repairs were free. Out of the 77 we sold only 5 of them were pain in the asses.

    Incredibly 29 of them never called...and most of them have renewed for this year.

    It is a gamble of course....but I know the home warranty companies are doing quite well...the laws of percentage say that 10-15% of the clients will abuse the privelage....10-15% of them will never call or forget to call and all the others in between should be normal.

    My thought was to get the money ahead of time and bank it.

    Yes, it could backfire, but in 5 years time, nothing has happened to make me change my mind about this being a good idea.

    If I could get 90k in revenue up front...It would be worthwhile don't you think?
  7. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Messages: 1,712

    How many Years have you and I bashed this around. Are we off our butts and serious this year?
  8. AssuredServicesCo

    AssuredServicesCo LawnSite Member
    Messages: 113

    You might want to check your liability duties with your attorney with regard to the sales of the sprinkler service, if you have deductibles. You may be practicing Insurance without a license and could be fined or forced to cease and dissest by the State during the middle of alot of contracts. A disgruntled customer who seeks councel from his or her attorney may make this discovery and then you could be stuck. Thanks. Just a thought. Im not an attorney but was in the insurance business for 12 yrs. Rock On.

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