Issue #5 September 2021

This month, we're doing things a tad differently. In the past, we covered 3-5 different topics per newsletter, all in an effort to bring you the most value. We're dedicating September to service agreements because they are just so bleeping sustainable.

Table of Contents

The newsletter from KGG designed specifically for your business. We’ll highlight industry news, market trends, and bring you every resource we have.

We’re dedicating September to service agreements because they are just so bleeping sustainable. Specifically, we’ll cover:

  1. …what it means to be in the service agreement business
  2. …what they can do for your company
  3. …how to market them
  4. …how to sell them

Not necessarily in that order. 🙂

Buckle up for our deep dive!

–Chris

P.S. If we haven’t met yet, hi! I’m Chris, your HVAC everything digital marketing expert. Let’s connect on Linkedin!


September… Your Season for Service Agreements

Ahhhh, do you feel it??? After a very busy summer, the cool transition to fall begins.

If there are two key takeaways from summer, it’s that preventative HVAC maintenance and IAQ upgrades help to keep homeowners comfortable and healthy.

Just think about how many calls you got from people who desperately needed their AC fixed in a hurry… Or wanted IAQ upgrades to combat pollen or smoke from wildfires… What’s interesting is that most of them didn’t:

  • Have a service agreement
  • Have their HVAC system inspected or maintained every 6 months

You Might be Wondering… Why is Fall the Season for Service Agreements?

One answer is because we’re coming into the HVAC slow season, and service agreements are a great way to keep you and your team busy while bringing in guaranteed income to sustain your business.

The second answer is a bit more nuanced.  Going into the Fall and cooler temps arriving, more people will be closing windows and doors again and eventually turning their heating systems on.  This is precisely when things get interesting with air quality!  

With the lack of fresh air now coming in, the air gets “stale” and potentially unhealthy.  IAQ solutions, like a central air monitor, will notify the homeowner when something gets out of range like humidity, particles, and chemicals.  This gives the contractor a chance to jump into action and save the day with solutions based on what is actually going on in the home.

So… that’s why now is the time to focus on service agreements. 

Before we dive into how to market them or train your staff to be comfortable selling them, it’s important you first understand the business benefits of service agreements. Specifically, why you should shoot for 500 of these bad boys.


What 500 Service Agreements Would Mean for Your Business

Service agreements are baked-in wealth for your business. If you have 500 service agreements, you have $350K of guaranteed annual revenue.

Don’t believe it? We prefer the stories numbers tell. Here’s the proof…

If you don’t care for watching videos… here’s a breakdown of what was covered in it…

  • The revenue from the service agreement, average contract price is $300 annually ($150,000)
  • 23% of your customers are going to need service, average ticket is $353 ($46,000)
  • 5% will need a new furnace, at $3500 ($87,000)
  • 7% will need AC repair or replacement, at an average of $2000 ($67,000)

Marketing Service Agreements. Simplified.

So, maybe you’re suuuuper interested in getting into the service agreement game, but not sure where to start. Don’t fret, we got you covered.

Specifically, let’s address these burning questions:

  • How do I market HVAC service contracts?
  • Do I focus on getting new or existing customers?
  • What should I do to get my service agreements in front of new and existing customers?

Before you do anything, it’s important you take some time to create these 4 things:

  1. Design maintenance agreements in a way that brings more value to the customer.  The profit doesn’t come from the agreement itself, but from the relationship it builds.
  2. Create tiers of service contracts: Good, Better, Best
  3. Remember who you’re marketing to.  You and your peers understand what a condenser or coil is, but homeowners don’t: Market accordingly. 
  4. Create a landing page for your service contracts, including a graphic of your service agreement tiers, and explain what each line of service is.  All social ads and email marketing will link back to this page.

Be sure to do these 4 things…

Are you Marketing to Attract New or Existing Customers?

Once you have your service agreement laid out, landing page on your site ready, and the language of your marketing all set to target homeowners, you’re officially ready to go on offense with your marketing.

For each ad, highlight individually what value your service will bring to them. For example, let’s say one aspect of your service agreement is to clean the coils:

  • Commit one ad to coils
  • Explain what the coils are and what they do
  • Why they need to be cleaned and what could happen if they aren’t
  • How you clean them
  • Repeat for each service agreement line item

For New Customers…

  • Radio / audio ads – I Heart Radio and Spotify  
  • Social media ads – Facebook, Instagram, and Snapchat

Target Audience

Focus on homeowners. Set up your target audience based on age and geography. Think about what else they might be buying to get your ads in front of them.

For Existing Customers…

  • Phone call
  • Email

The goal here is to re-establish the personal connection. They’re not just another person you’re targeting. You’ve closed them at least once before… time to do it again.

Pro Tip: The owner of the HVAC company preferably calls existing customers, asks about their previous service, how are things going now, and then tells them about the new, shiny service agreements you’ve created. Email works, but won’t be nearly as effective.


HVAC Service Contracts Creates a Built-in Opportunity for Selling IAQ

Any time a technician is in front of a homeowner or a building owner, the conversation about air quality should just come naturally and automatically every single time.

These opportunities were once restricted to talking about energy savings or about increased comfort levels. Now the conversation can include health and wellness, and that is such a shift in messaging. And frankly, and much easier to sell.

Central Air Monitors and Home IAQ Checklists

Rob Ambrosetti, KGG’s training director, believes contractors should get themselves familiar with IAQ monitoring devices like the Haven Central Air Monitor (CAM).

“They can use the Haven CAM in conjunction with their maintenance agreements and help homeowners identify IAQ problems as they arise.”

Because he’s such a nice guy, Ambrosetti went ahead and created a helpful and downloadable home IAQ checklist your techs can print out and use while they are doing an in-home assessment or scheduled maintenance of your customer’s HVAC system and indoor air quality.  Here’s a sneak peek ↓


Related Links to Resources, Content, Videos, and More

  • Want free and qualified HVAC indoor air quality leads? This should do the trick.  
  • There’s a whole sales playbook the team at Haven put together on the central air monitor. You can find it by registering yourself on their site here.
  • Learn more about inbound marketing strategies HVAC businesses can benefit from.
  • Did you like the video we share about the power of 500 service agreements?  There’s a whole lot more where that came from.  Listen in on the slightly expanded REP Talk episode.   
We're dedicating September to service agreements because they are just so bleeping sustainable.  Specifically, we'll cover:

1. ...what it means to be in the service agreement business
2. ...what they can do for your company
3. ...how to market them
4. ...how to sell them
Not necessarily in that order.  :)

Buckle up for our deep dive!

Until next month friends!

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