How to make a small fortune by selling Service Agreements!
I wrote this article five years ago, it’s just as important and relevant today.
There are many benefits for you and your customers from selling Service Agreements.
One of the most important reasons, for you, is the income generated from the sale of
Service Agreements. Some other benefits are:
- Customer loyalty.
- Your clients are truly your customers and no longer just a name in your database.
- You will have monthly cash flow coming in.
- Priority service.
- 15% discount on all services.
- Never any after-hour or holiday fees.
From service agreements alone, you could possibly make one million dollars extra revenue in 10 years.
For example, we will use a very modest scenario. Suppose a technician can only sell service agreements to 30% of your customers. And let's say the average technician has three service calls a day. That's 15 calls per week. 30% of 15 calls equals 4.5 customers that he has sold a service agreement to.
The service agreements can be sold on a monthly or annual fee basis. For this example, we will sell service agreements at $150 for one year's service. 4.5 agreements selling for $150 equals $675 for a week's sales.
If your technician works 50 weeks a year, he or she will bring in a total of $675 x 50 weeks which will equal $33,750 in sales. This equates to 225 service agreements a year totaling $2812.50 each month in extra income.
Let's suppose that over the next ten years, your technician still only closes 30% of sales for service agreements. Ten years x 225 agreements a year equals 2250 agreements sold by one technician over a ten year period. 2250 x $150 per agreement equals $337,500 in total sales for the ten-year time-frame, equating to $28,125 a month in extra income.
If you have five technicians with a closure rate of 30% on service agreement sales, 5 x $28,125 equals $140,625 extra income a month or $1,687,500 a year.
As you can see, there is great potential for extra income from the sale of service agreements. You have the potential and means for your company to profit and raise its net worth. These attributes are what entrepreneurs or investors look for when they want to buy your business.
So what's the alternative? Not to sell service agreements and miss out on the opportunity to achieve additional financial stability solely through the sale of these agreements?
There is great potential here. Doors will open for you when the time is right! Just as this door has opened for you now.
I just shared one scenario with you on how you can change your business and your future. Don't wait a week or a month or years to start. Start right away. Make a difference in your life and your company. The choice is yours.
Contractor Success Systems can assist you in your quest for a successful, profitable future!
To your success ~ James Brush
