Perhaps my favorite (and most productive) consulting activity is to go on a ride-along. I hop in the truck, or work alongside a team member. I open my ears and eyes, shut my mouth, and always learn something. Afterwards, we debrief and examine what went right and what could be improved. 

We require so much from our team members, operationally, technically. And they are required to meet sales goals, too. I believe that a nice, solidly skilled employee with a simple, friendly sales process is a gold mine of relationship building, problem solving and profits.

Except when that employee is talking about your service agreements. 

Recently, I went on a ride-along. The service tech was terrific. From the minute we arrived, “Timmy” charmed the customer with his Southern manners and calm, technical confidence. Timmy did a home survey and listened well as Mrs. Homeowner explained the challenges of the HVAC system. He did a fast and thorough diagnosis on the troublesome equipment. He made a successful presentation of suggested solutions and Mrs. Homeowner said, “Yes!” to everything. She even offered to make Timmy lunch.

Then, all the love and “warm fuzzies” went high-tailing out of the room the moment Timmy started in on the service agreement. 

“Oh, Mrs. Homeowner, I notice that your service agreement has expired. Would you like to renew it?” 

“Um, sure. I guess. What is the service agreement for again?” 

“Well, we do a 39-point check on your HVAC system two times a year and make sure it’s running properly.” 

“OK, wait. Didn’t you just do that?” 

“No, ma’am, I was troubleshooting the systems and found those problems.” 

“If you fix them, why would I need a 39-point check?”

“Well, the service agreement also includes filter changes.”

“Oh, yes, well, are you going to change the filters today?”

“I could! They are free with a service agreement.”

“How much is that?”

Now, at this point, Timmy fumbled for, then found and presented a 10,000-word, four-page agreement that listed — in eight-point font — 39 technical activities … all for the super confusing price of somewhere between $189 and $529 depending on what is referred to in an asterisk somewhere. I am not exaggerating. 

Well, it went from bad to worse at that point. Timmy never got lunch. He did do the originally agreed upon work. Mrs. Homeowner did not buy a service agreement. Timmy changed the filters, but I am not sure that Mrs. Homeowner knew this as she and Timmy didn’t exchange more than a dozen words before we left. Ugh. 

Here’s what I hate about service agreements …

They don’t cover anything. As a homeowner, I am painfully aware of what a service agreement doesn’t cover. To make matters worse, your employees often give away a lot of service that the customer is not appreciating or paying for. It’s a lose-lose situation.   

Asterisks. I hate small print, *s, and anything else that looks like we are trying to pull a fast one. 

They are presented poorly. Most importantly, employees are not properly trained to present the benefits in such a way that they don’t trip over themselves in the attempt. Maybe because the benefits aren’t that impressive? 

Bottom line: As a business owner, I understand why you offer service agreements. But why would your customer want one? 

Disagree? Agree? Think you have a better approach to the service agreement concept? Let us know. Email editor@plumbermag.com. 

 

Ellen Rohr is the president of Zoom Drain and Sewer LLC, and is a columnist for Huffington Post and a contributor to many business journals and trade magazines.