Reoccurring Revenue
The heating season is almost finished, and installation work will slow down for many heating companies. This time of year is when we start looking at our business and wishing we had more service work in the warmer months. This month’s Boiler Business column will discuss “Service Plan” customers, what they want and how to package your own Service Plans to build that reoccurring revenue!
Service customers - What do they want?
Do your customers want to keep costs down as much as possible, or do they want all the help & support you can offer? Do these customers have elderly parents who need additional support or care? Are they landlords or estate agents with legal responsibilities? Or do they want the basics to meet regulations and the manufacturer’s instructions?
Here's a bombshell. Your customers do not want a boiler service!
Your customers want warmth, a cosy home, hot water to wash their kids and to feel confident that this “happiness” will continue.
Learning how to communicate people’s emotions via SMS and Email, along with professionally laid out design, images & video, will separate you from that Plumber at the bottom of the road who can service the boiler for cash on his way home.
Customers want to feel confident that their home is safe and that they are saving money through efficient fuel usage. Customers want security that somebody will help them if needed and want to trust the company/ person who will be in their home and maintain all the above.
It would be best if you learned how to communicate that your “Service Plan” will give many benefits they care about and also “includes” the boiler service, amongst other safety and energy-saving tests that are part of the plan.
What is your service plan?
Before diving into the differences between a Boiler Service and Service Plan A, B & C, take a few minutes to think of how you can “brand” your plans giving some indication that each level provides more value than the last option.
Avoid using any word that can lower the value of your plans.
Nobody wants “standard” or “bronze” service. Yes, of course, you do a fantastic job on every boiler service, leaving it spotless and spanking brand new every time your spanner touches it, but don’t tell your customers that! If you intend to sell service plans, maybe use “standard” to “standardise” the value of a boiler service.
Showing that the boiler service is the “basic” first level, inspection allows you to layer more “value” onto your Service Plans, charge accordingly and get people signed up for reoccurring revenue.
Example:
- Standard Boiler Safety Service
- Cosy Home – Service Plan
- Cosy Home – Plus Plan
What will you include in each level?
Your first-level service plan should include extra bells and whistles to make it appealing enough to join. However, putting all the bells and whistles onto your first-level plan may increase homeowner costs or harm your business profits. For instance, your first-level plan may be inspection only and not include serviceable parts & chemicals. While your next-level plan includes all “serviceable” parts and chemicals if needed.
If you serve a lot of customers with older boilers out of warranty/ guarantee, will you introduce a service & repair plan? If so, what conditions will you sign customers onto your plan? Will you inspect the boiler & system before signing the customer up? What timeframe will you work to when parts have to be ordered?
What are the limits to each plan?
Anybody with a few years’ experience will have heard customers’ misunderstandings about the boiler service they had from your heating company at some point. You know, “the magnetic filter has been leaking for 13 months since you serviced it last,” and “my bedroom radiator is now leaking, is it connected to the boiler service?”
To save you untold hours in the future, list what your service plan includes and excludes. What will your service plan not include? What are the limits? What will you check, test, fix and call out to and at what times? Is it clear that your service plan includes/ excludes evenings and weekends?
Service Plans – To be continued!
Free Service Plan Workshop
The Boiler Business is helping the plumbing and heating industry.
You can sign up for a free online service plan workshop at the following
Tom Lee-Zmuda
Hey buddy. My name is Tom, a former heating engineer turned marketing Jedi. My team and I specialise in helping local HVAC and Solar business owners dominate Google and sell their most profitable services. We are committed to building the best ROI through local SEO, kick-ass websites & sales communications that attract, sell and keep your best five-star customers.
Read All Posts
Share
Share
Share
Share
