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botrous
29-04-2005, 11:37 AM
I am thinking of starting a new way of business here in Lebanon , giving homeowners maintenance contract for their A/C's usually mini-split units for a sum of money they will pay yearly, i'll maintaine their ac's without any charge .
I just want to know if this idea is applicated anywere and how it works , it's disandages and advantages ?
Are the spare parts and the ***** included in the contract ?
or just only the servicing , like filters and coils cleanings and regular chek ups.?

chemi-cool
29-04-2005, 03:21 PM
Hi Botrous,

Its done here for many years. This is how it works:

The first year is free, manufacturer warranty.

Second year up to 5 years, no paimants for labour, only parts + 20%.
A unit 5 years old to 10 years old, 75% more.

Its a very good program for you but you will have to start from at least 50 units.
Give the customers 4 paiments with acredit card only, APR as your bank will advise you.

Chemi :)

botrous
29-04-2005, 06:52 PM
That seema to be a good plan , but how much you charge for refrigerant ? and is the filter cleaning free ?

chemi-cool
29-04-2005, 07:19 PM
You will have to work out the prices yourself or relay on big companies price list.

Under no circumstnces I will clean a filter.
This is the user responsibility.

If they want a service contract which is cleaning the filter, the inside coil, out side coil is another story.

Calculate the travel time and 2 hours three times a year.

Chemi :)

botrous
29-04-2005, 08:28 PM
ok man , i got the Idea , thanks a lot . . .

cleanNcold
30-04-2005, 03:41 AM
first of all you need to do an excellent job of installing the unit(s) then talk with the customer and stress the point that the system is not maintenance free. some customers that i have are happy to pay me to clean and or change filters along with other preventive maintenance. i send letters in spring and fall to all my customers asking if they want a preventive maintenance check. you will be surprised how many will pay you instead of cleaning themselves. this is great fill in work for the slower times. time your letters to get business during off peak times of year.

botrous
30-04-2005, 05:36 PM
Thanks for the advise CleanNcold , can you send me a copy of the letter u send to ur customers so i see how i should write mine ?

Peter_1
30-04-2005, 08:55 PM
We charge for an all-in contract +/- 7% of the total price (larger projects) if we installed the units. This is a payback period of +/- 15 years.
For Carrefour - a very big supermarket chain - you give you price included all labor and, all small fans till 10 W, fitting the broken lamps (delivered by Carrefour on site) in the cabinets, gas, service calls, cleaning of the inside of the cabinets, cleaning of the condensers, ...
If something is broken due to the fault of others (clients of the shop or Carrefour peoples), everything is payed back
You also have to do the telemonitoring of the site and you're responsible for all product losses.
A second independent company is looking over your shoulder with the same telemonitoring system.
For larger repairs, you must make first an offer (if you then take larger margins, nobody complains)
Price for these contracts is +/- 6 to 9% of the total installed price. For a Carrefour with 3 packs (2 Ht and 1 LT, each 5 compressors), contract cost +/- 15.000 to 20.000 €/year.

Some do it in another way: you can also make a service contract to clean/service the units twice a year and measure/verify some important values. You then give the customer afterwords a log with the measured values.
You then give a special larger discount (mostly 25%) on each item you have to replace and makes perhaps a special price for the travel costs.

In Belgium, you're obligated to perform a check-up of each refrigeration compressor at least once a year. They sometimes control this on site in the special logbooks you have to fill in.

It all depends how hard competition is in your neighborhood.

botrous
30-04-2005, 10:29 PM
thanks peter , wonderful information , when i arrive to a decision on the contract thing i will let u know . . .
Guys of the forum u r really great and helpful