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Preventative Maintenance: More than just an up-sell opportunity

Yes, we know it’s a headache for your service providers to constantly ask their customers about buying service contracts – and constantly getting turned down. And yet, there are so many benefits to both parties that it really is worth the continuing effort.

Customer Benefits

Let’s look first at what they can mean to your customers:

Mature engineer on building roof checking solar panelsAssured maintenance. The pre-paid nature of service contracts encourages the scheduled preventative maintenance of equipment that might be critical. Consider the HVAC system at the Florida nursing home in the news not long ago. The air conditioning system and backup generators all failed and at least 14 elderly residents died during power blackouts caused by Hurricane Irma. We don’t know that poor maintenance was the issue here, but we do know that regular preventative maintenance minimizes the risk of system failure.

Lawsuit protection. The regular maintenance schedule available with service contracts creates a paperwork trail of service history. This can be critical in situations where equipment or machine failure unfortunately results in death or injury. Service contracts are also an important tool in environments where government regulations mandate safe performance, such as hospital machinery or fire-safety equipment.

Mechanics training class with teacher and students

Expected expense. Sometimes necessary maintenance or repair work doesn’t get done simply because it’s not in the budget. When an organization must tighten its purse strings, it’s not going to quit paying salaries or the bills it’s already accumulated. It’s much easier to constrain abstract expenses like preventative maintenance that can probably be put off for another month or so – even if the short-term savings might negatively impact machine safety or worker safety. However, if the organization is contractually obligated to make monthly payments on a service contract anyway, they might as well see the benefits.

Company Benefits

Now let’s take a quick look at a couple reasons why it’s worth your efforts to make sure service contracts are always in the offering by your people.

Worker safety. Service contracts encourage regular maintenance, and that creates a safer work environment for technicians and others in close proximity. This is an especially critical consideration around equipment that uses fuel or other dangerous chemicals. We talked earlier about how maintenance contracts can be useful by leaving a paper trail. With a maintenance contract, there is a record of all service work performed on a particular item.

Technician checking routers in server roomRecurring revenue. A lot of service companies have revenue peaks and valleys. For example, HVAC companies tend to be insanely busy in the winter and summer, but revenue goes down in the fall and spring. Service contracts create recurring revenue streams that can help your business through the valleys and boost profits during the peaks. This can also help alleviate paycheck fluctuation during low times since technicians still have contract work they can be doing.

Improved response times. When a piece of equipment is getting regular maintenance from being on a service contract, you're less likely to get an emergency call to come repair it. When you multiply this by all the customers you have, you should see a dramatic lowering of the number of emergency service calls you get.  This means that when an emergency call does come in, you can dispatch technicians right away.

 


At Sentrien Systems, we have the service industry experience and the software solutions to help your company grow. If you're looking for answers, simply call us (571-384-5380), email us (info@sentrien.com), or fill out our contact form.

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