Question:
We are thinking of doing service contracts. Have any of you done this? Any input will be great.
Answers:
I do the service contracts. They are a great way to keep money rolling in during the winter, but they do have a downside. Some customers assume service agreements cover parts, labor and pumping. They get mad when they don’t see you and they think you are ripping them off. I do my testing during the day and I leave a sticker on the door so they know I was there.
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In my opinion, the only thing better than cleaning septic tanks is having your customers on a checklist paying you to tell them when it’s time for you to pump it! But you must let them know when they sign up that any repairs or pumping costs additional money. Other than that, the only thing to avoid is price wars started by poor contractors. Just do your deal, and if the next guy wants to work for nothing, that’s his business.
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If you are providing the best service in your area, you are giving your customers a service contract free of charge. I guarantee my customer’s septic system will pass inspection when they sell their home as long as they follow my usage procedures and pumping schedule. Not a single competitor in my state offers that. A new system can cost many thousands of dollars. I send out reminder cards. I have all the work I can do.
