The biggest problem for a technical services company is irregular income. Maintenance contracts solve this.
A maintenance contract is an agreement with the customer to carry out periodic checks in exchange for a fixed fee. For them, peace of mind. For you, predictable income and a steady flow of work.
Why maintenance contracts are a game changer
- Recurring revenue. You know how much you are going to invoice each month before you start. You can plan recruitment, investment and holidays.
- Work during the low season. Checks can be scheduled for the quieter months. Air conditioning in spring, heating in autumn.
- An ongoing relationship with the customer. Every check is an opportunity to identify needs, quote for improvements and strengthen the relationship.
- Fewer emergencies, more planning. Well-maintained equipment breaks down less often. Fewer emergency calls, more scheduled work.
How to design your maintenance contract
- Define what it includes. Be specific: "2 annual checks of the air conditioning system, filter cleaning, pressure checks, electrical inspection." The customer needs to know what they are paying for.
- Define what it does NOT include. "Breakdown repairs, replacement parts and system extensions are quoted separately." This prevents misunderstandings and abuse.
- Set the price. Calculate the true cost of the checks (time + travel + minor materials) and add a margin. A domestic air conditioning maintenance contract is usually between €80 and €150/year. More for businesses.
- Offer extra benefits. "Customers with a maintenance contract receive priority in the event of a breakdown and a 10% discount on repairs." This encourages them to sign and justifies the cost.
- Flexible billing. Offer annual payment with a discount or quarterly payment without a discount. 70% choose annual — and you get paid sooner.
How to sell maintenance contracts without sounding like a salesperson
The best time to offer a maintenance contract is just after an installation or major repair:
"Look, I’ve just installed the equipment and it’s working perfectly. To keep it running well and make it last, it should be checked once a year. We have a maintenance contract for €X/year that includes a full inspection, clean and check. Would you be interested?"
It is natural, not pushy, and the customer understands the value immediately.
The magic number: 100 contracts
Do the maths: 100 maintenance contracts at €120/year = €12,000 in guaranteed annual revenue. With that cushion, you can cover a month and a half of fixed costs without relying on new jobs. And each contract represents an active customer who will probably call you about other things during the year.
Getting 100 contracts is not easy, but nor is it impossible. If you install 5-10 systems a month and offer maintenance to 50% of customers, you will have them in 2-3 years.