Costing Fully Comprehensive Service Contract

[NewmanRef]

Hi Guys,

I have been asked to provide a quote for a fully comprehensive service contract for a chain of large cash and carry stores. Its early stages and I have not even surveyed the sites yet but I know one of the sites has approx. 40 display cases as well as walk in chillers and freezers. The other stores will be a similar size I would imagine... So, a fair bit of kit to look after. I'm quite happy putting a price together for the maintenance as we look after businesses of this size already, however this is the first time I have been asked for a fully comp contract.

I know that the company I used to work for priced their fully comp stuff on total HP for each store... but that is as much as I know... If anyone has any advice at all on how I go about pricing this, it would be much appreciated. Obviously the initial surveys are crucial and price will depend on general condition but is there any rule of thumb or indeed exact science for how much I allow per HP or Kw??

Many thanks in advance

[The Viking]

How much can you get away with?

Jokes aside, most larger companies put a clause in their fully comp contracts along the lines of "subject to any and all faults and issues found during the initial service visit are rectified as per our recommendations. Any and all faults and issues found during the first service visit will be charged at our normal contract rate. Remedial works required will be quoted if estimated value is over £XXX.XX. Any callouts before first service visit or before remedial works been accepted will be charged at our standard contract rate."

This is your get out of jail card, if you do have to sell the contract cheap then you can recoup your losses during the first service and also you get a chance to properly inspect the kit before you are locked in to a free for all contract.

:cool:

[will173]

I I totally agree. This is the best way.

[al]

Talk to an insurance broker and see if you can get a limited policy to cover the more expensive kit. Maybe offer labour only if they'll accept it, I would also exclude refrigerant, who knows where gas pricing is going.

[Magoo]

I would not touch it with a barge pole, you will end up being out of pocket for sure.
Comprehensive contracts are designed by smart accountants for their annual budget figures. Supported by sleasy lawyers and 10 pages of out clauses.
If you installed and maintained plant to end of warranty period and knew everything inside out and up side down, then quote it.

[Grizzly]

NewmanRef.
You are I assume doing Ok and growing within your means.
Please heed what the guys above are all saying. They have been there and survived!

There are lots of companies big and small been chewed in and spat out by the Cash and Carry ? Supermarket brigade.

We have a National Contract with one of these companies and their Trading Margin is 2%.
Theirs is a minimum expenditure Maximum Profit scenario. It has to be!

Try and work out how much that has got to be shifted to pay for anything!
People have painted the contract as a good thing, It's been a nightmare for some areas!

We have turned the plant reliability around in our area, so due to the hugely reduced call outs and site repairs etc.
We have not made such a huge los as others! Ours ends in the Autumn and I pray the shiny bums (Salesmen) do not sell service down the river again.
With another 5yr Fully Comprehensive (Gas excluded) Contract.

One site Had "New replacement Equipment Installed and "Our" Sales Team accepted Maintenance on it without even a site Visit.
I attend site for it's first maintenance visit, to a proud Site manager Telling me How they Had New Equipment!

I replied " It May be New to you, but it is a Supermarket Pack built in 2002 and the control equipment it uses has not been supported / Available for the last 10 yrs. Discus!
If you can afford to run this contract at a los Go for it! If not, Cover your Arse!

Some of the Supermarket Lads on here work stupid Hours and earn decent money as a consequence.

But I bet they know of ones that have been stuffed!
Grizzly