Service contract

[freezy]

Evening all,

I have a customer that wants me to provide a service contract and I need some help.

I normally just charge by the hour, what needs to be in a service contract, and how do I charge. Can I charge for call outs or does the price include maintenance work with additional costs for breakdowns.

If anyone has a link or could pm me, it would be really well appreciated.

[Andy]

Evening all,

I have a customer that wants me to provide a service contract and I need some help.

I normally just charge by the hour, what needs to be in a service contract, and how do I charge. Can I charge for call outs or does the price include maintenance work with additional costs for breakdowns.

If anyone has a link or could pm me, it would be really well appreciated.

What you charge depends onn the contract. One we offer quite often is comprehensive labour only. This covers your service once or twice a year and your callouts (excludes some items such as water leaks and on commercial equip cabinet cleans, also electronics).
Sit down with the customer and as him what he wants, or what he can afford.
Normally you do offer some discount on the standard labour cost as he is buying bulk, but you are sure of the work and any parts you need to sell.

Kind Regards Andy

[freezy]

Hi Andy

If your call outs are included, what about the time on site troubleshooting and then fitting the new part.

If a compressor went down, does that mean that you would charge only for the compressor and gas. it could take over a day in labour plus travel time.

[Andy]

Hi Andy

If your call outs are included, what about the time on site troubleshooting and then fitting the new part.

If a compressor went down, does that mean that you would charge only for the compressor and gas. it could take over a day in labour plus travel time.

Hi Freezy

on large contracts all labour would be included, but on smaller write it out of the contract. ie the contract is service and callouts, but not remedial works (unless it can be first fixed during the callout. What ever you quote I would make sure it is open and honest
That way you build your relationship with your customer base.

Kind Regards Andy

[mgtet]

why not just quote hime for the service contract.
If you think the job will take 30 hours a year charge him for 30 hours at a slightly discounted rate. All breakdowns and repairs would be charged as extra at the same hourly rate as you charge for the service.