Posted by u/seasonal_swings_are_killing_me

How do you price and sell maintenance agreements?

Answered by Ask a Shop Owner ·

Summer we drown, winter we starve. Need maintenance income. What is the model that works?

u/askashopowner Owner-business owner advisor

Top answer

$189 to $299/year per system for two tune-ups (spring and fall), priority scheduling, and a 10% to 15% repair discount. Sell every service call. Every tech, every ticket, every time. Target 30% conversion.

The math: 300 agreements at $229 = $68k of recurring, largely-prepaid revenue that fills your shoulder seasons. It also gives you a captive base for repair and replacement upsells. Companies with 500+ agreements sell for 2x higher multiples than those without.

Track it weekly. Number of active agreements is the single most important leading indicator of business health in residential HVAC.

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