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HVAC Contractor Newsletter
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Benchmark Conversion Rate for Replacement Sales from Service Agreements
In the HVAC industry, air conditioning contractors can expect to sell one replacement air conditioner for every 10 to 11 service agreement customers. This statistic comes courtesy from Ron Smith a member of the Contracting Business Contractor Hall of Hame and author of HVAC Spells Wealth.
1 Replacement Sale for Every
10 to 11 Service Agreements
Service agreements are the true life blood of a heating and air conditioning company. With a service agreement, you establish an ongoing relationship with your customer. Without a service agreement, the moment your service truck pulls away from the customer's house, he becomes a free agent and a prospect at large.
With a service agreement customer:
- Repeat business increases
- Return on marketing increases
- Referrals increase
- Margins increase
- Company value increases
- Employee retention and morale increases
As you are developing your 2011 plan, set targets for your service agreements. Benchmarks should include - total number of new service agreements, percent of service agreements retained and service agreement conversion rate.
If you are struggling to develop a plan or need tools to help your technicians increase their conversion rate, please don't hesitate to contact us. We have several affordable and effective tools to increase service agreements sales.
Sincerely,
Brian Starzec
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