Why Maintenance Agreements Matter and How to Make Them Work w/ Ruth King

HVAC School - For Techs, By Techs

Bryan Orr

Training, Careers, Airconditioning, Self-improvement, Hvac, Business, Education, Refrigeration, Heating, Ac, Apprenticeship

4.8 • 985 Ratings

🗓️ 8 March 2017

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this episode, Ruth King shares some of her top insights on how to create a maintenance program if you don't have one. She teaches us to recognize a broken program and fix it.

The maintenance component of your company will be the part of your business that allows you to grow your business profitably. If you don't believe in maintenance agreements, your customers won't believe in those maintenance agreements either. Without maintenance agreements, your company will have sharply different slower times and busier times. You'll likely have to pay employees to stay in slow times, and it is not very profitable.

Getting a maintenance agreement plan in motion is as easy as getting a maintenance agreement form. Inform your customers of the benefits of maintenance (saving money on utility bills, extending equipment life, etc.). Then, offer it to your customers; you don't even have to make it sound like a sales pitch. Some of your existing customers will almost surely agree to the maintenance agreement.

When you enroll someone in a maintenance agreement, it is a good idea to put that money in a separate savings account. The cost of performing the maintenance can be taken out of that savings account, but you would have ideally already set some money aside solely for operation costs. To make sure you're at least breaking even on your maintenance agreements, you must make sure you factor in hourly pay, cost of goods sold, and overhead costs. You can calculate overhead costs by checking the previous year's operating expenses and dividing that by your billable hours.

If you are interested in Ruth's maintenance program course, you can find out more HERE. Be sure to use the offer code HVACRS (with all caps) to get a 10% discount on all her products.

Transcript

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0:00.0	This episode of the HVAC School Podcast as well as HVACR School
0:07.7	dot com are made possible because of carrier and testo. Now I have had a lot of people ask me why Carrier and Testo and the reason is these
0:16.4	are companies that I use in our business. I own an air conditioning contracting business, I've been a technician
0:22.1	for years. These are the
0:23.6	companies that I want to have part of HVAC school, literally. I mean these are the companies
0:27.8	that I use every day. So we install carrier products. We're a carrier factory authorized dealer and a President's Award winner the last two
0:34.7	years, and we also use Testo products every single day.
0:39.7	And while every business has things, has challenges in their businesses, I've been really impressed
0:44.8	by the path, the direction that both Testo and Carrier are taking with research and development,
0:50.5	with the new products that they've been coming out with and they're partnering with us
0:53.8	which says a lot to me about them that they're partnering with a website and
0:58.3	podcast that are training driven you know we're not we're not out here you know selling a bunch of products I don't have a store
1:04.5	that I'm selling anything on they're just supporting the technician training
1:08.7	for the people who do the work every day and I think that's pretty cool. And now the man who uses they don't make them like they used to as a universal verb.
1:19.0	Brian or...
1:21.0	Hello this is Brian and not only is they don't make them like they used to a universal verb, it's also a
1:27.3	universal excuse.
1:29.4	Wife asks you to take out the garbage?
1:31.6	Well, honey, they don't make them like they used to. You break your
1:34.0	crescent wrench because you put a pipe on it that was seven feet long. They don't make
1:38.2	them like they used to. So and so forth, you get the point. Universal excuse. I use it all the time.
1:42.4	Another example of that they don't make them like they used to is Ruth King because I think they broke the mold when they made Ruth. Not really sure what that means, but it sounds good. What I like about Ruth is that she just doesn't take any nonsense.
	...

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