Need some help here guys. I hate the things, but I have a customer insisting that I take more money from them. The equipment is covered with a warranty for 2 yrs, so what in the world is a Maintenance agreement going to do for them? Someone wake me up. Also give me some feedback on prices to charge. If any one has a contract currently and doesn't have any hang ups with me seeing it, please email me a copy to go off of.

Dan, I sent you a copy. If they want to pay you, then by all means. If the equipment is under warranty, you may be able to offer them a contract which will guarentee a certain response time. A few of my customers do this. I used to not sell these, until Exponets, Nortel, Avaya, and a few others came in behind me a sold outrageous agreements. Maint. Agreements can be very good for both parties if they are fair.

How many copies do you have? ... just kiddin, would you mind emailing one to another houstonian?

Sure, send me your address.

>>houstonian

and I thought they were called houstonites.

you may call us either, as long as your beer is cold!

z-man, it seems I am also falling into the need to provide a few service contracts and would appreciate any info on a sample contract

Drop me a line and I will send you a copy of ours.

Sir, can you send me a copy too?? Thanks
[email protected]

Hi Guys,
I have been putting off offering service agreements...but I guess I should to be competitive. I would be grateful if somone could also send me a copy to use as a guide.
Thanks
Mick Brett
Brisbane
AUSTRALIA
[email protected]

I will talk with the other moderators and see if we can't offer a way to download the software from a link. My web site is not set up yet to download software, but it will be soon. Otherwise, email me directly and I will send a copy to you.

Hi Z-Man,

I am looking at how to do those service agreements too, could you send me a copy???

I would be ultra-appreciated!!!

My e-mail is: [email protected]

Thanks a million,
Trevor Farren.

You can get the Maintenance Contracts at this link, its up and finished. Thanks to test-ok
https://www.sundance-communications.com/installers/Tech_Message_Board/



[This message has been edited by dtmf (edited September 01, 2002).]

I am brand new to this forum. I too would like to offer service contracts, but havn't in the past because I don't know enough about them. Can you help? Thank You

[email protected]

[This message has been edited by PhonePro (edited September 22, 2002).]

Can I get a copy of the maint agreement.

Thx

Tony

Me too, Please!
[email protected]

We'll get this link working, not sure what happened to it. Check back in a day or so you'll be able to download it.
https://www.sundance-communications.com/installers/Tech_Message_Board/

Until we recently sold our interconnect, we provided maintenance contracts for 18 years. It was huge source of revenue (about $12-15,000 per month). The benefit of this type of contract provides security to the end user that their investment is covered. This would not only cover the phones, but the cpu, circuit cards, voice mail, ect.

Should something fail, the customer was covered. If they decided against maintenance, then they paid $80 service call plus parts. Priority service was always given to Maint. customers. Our response time was less than 4 hours.

If the interconnect is not charging you a fortune for this service it is a good investment. You can also ask them about covering the common control only. There is enough phones on the secondary market to have defective ones replaced or repaired.

It's working....Sorry about that.
https://www.sundance-communications.com/installers/Tech_Message_Board/

We just had a 2 day seminar on "Selling Maitenance Contracts" in Idaho, ending Friday October 11th! Wow! They can triple your profits in 5 years. There is a manual called "How to Turn your Interconnect Into A Cash Cow." that teaches you how to sell, price, and has a contract in it. Email me for more details at [email protected] If you don't do contracts, or don't know how, maybe this info can help you! Brian

For more information check out www.interconnectinsider.com

A great web site for free info on management in our industry. Brian

I am having a hard time getting customers interested. I am a tech , not a salesman. Would like any tips on how to actually sell one of these. Sure, when their system is a pile of smoking circuits they want to buy one but when they havn't had anything go wrong in years how can you sell one. Also, once one is sold, how do you convince them to actually up date their system. A maint. contract on an old Toshiba Strata VIe? that sounds like a lose/lose.
Any thoughts greatly appreciated

I can see selling a maintenance contract on your own equipment but unless you have a s**tload of service contracts how do you price out a service contract for an old switch? The day after you sign on the dotted line the whole thing could take a dump and obviously you can't be competitive if you CYA so potentially you stand to take a big hit on the system.

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One stop Voice and Data Solutions VoIP

Yeah, CYA can cost a lot ---- or, if not, cost you your business. The guy that I've been picking up after had to mortgage his house to buy a CPU for a PBX, couldn't pay his crew, and finally had to file Chapter ?? and it still cost him his business. Of course being caught in a "delicate" position by the wife (now ex) didn't help either.
Another guy has been using service contracts on new sales for the last 20-some years with great luck. A company I used to work for in So. Cal. sold "Extended" warranties vs. service contracts and made a killing. The extended warranty could be rolled into the financing package and gave great cash flow. It also allowed for some "creative bookkeeping" to slow down the tax bite as deferred income until it was used or rolled over as profit.
Either way make sure your state laws allow for this and not under usury laws. Some states restrict telecommunications and computer leasing/contracts similar to what they restrict banks.

Good luck, trust your financial advisor, and talk to your lawyer before you start down this road.

They bet it will break, you bet it won't, and they hope you win. Does it get any better? They should sell these in Vegas.

Most of the failures aren't covered, lightening, electrical, user abuse, I only offer these when I'm asked. If they still want want it after I explain the odds, I don't feel guilty.
mark

A few months back I started offering 'service only' contracts for new systems and 'parts and labor' contracts for systems that are just out of warranty. I only offer 2 types of phone systems so I don't have to keep too much inventory. If the customer is leasing a system it makes it alot easier to sell the contracts. In the case of leasing, I would sell a 'service only' contract for the first year, then a 'parts/labor' contract for the remainding years of the lease. I figure that if I can get the majority of my existing and future customers to spend $30-$70 a month I'll have great residual income in a couple of years.

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| Telephone Systems | Voice & Data Cabling

I guess Capital might have something. Selling them up front could be a lot easier than trying to convert a customer to one after 5 - 10 years of flawless operation. BUt for those who have converted a 5 -10 year old customer that has had flawless operation to a maint. contract, any suggestions on how to do it? What would be the best angle? And for a 10 year old system is it cost effective to get them on a maint. contract?

A maintenace contract with all hardware still under manufacturer warranty? Sweet!

Does anyone here offer MAC work as a part of their maintenance agreement? Usually MAC work is billed in addition to the maint. agreemant. It may be a good incentive to offer so many hours of free MAC work per month.

Also, ALWAYS do a complete inspection of the PBX/KSU, MDF, Switchroom or closet, and as much of the cabling as possible. Look for poor maintenance, bad environmental conditions (dusty, dirty switchroom/closet), is the MDF a "rats nest"?, Is the switchroom/closet secure? Human tampering has caused many a service call. These precautions can help you to determine your risk and bill accordingly. And if you do accept a contract that is high risk due to poor maintenance/environment be sure to include provisions in the contract for correcting these conditions.

A maintenace contract with all hardware still under manufacturer warranty? Sweet!

Does anyone here offer MAC work as a part of their maintenance agreement? Usually MAC work is billed in addition to the maint. agreemant. It may be a good incentive to offer so many hours of free MAC work per month.

Also, ALWAYS do a complete inspection of the PBX/KSU, MDF, Switchroom or closet, and as much of the cabling as possible. Look for poor maintenance, bad environmental conditions (dusty, dirty switchroom/closet), is the MDF a "rats nest"?, Is the switchroom/closet secure? Human tampering has caused many a service call. These precautions can help you to determine your risk and bill accordingly. And if you do accept a contract that is high risk due to poor maintenance/environment be sure to include provisions in the contract for correcting these conditions.

In my mind the two most important steps to take when "maintaining" a system is to 1. Protect it, surge protectors and UPS. and 2. Backup system programming.

<a href="https://www.acsnyc.com" title="ACS">ACS</a>

Most interconnects can triple there profits in a short period of time by offering service plans on the key systems they are selling. This is not rocket science here. And if you craft a good plan, there is no more risk than you have now (you already provide serive if something breaks, right?)

The easiest way to sell your plan is POS, meaning at the point of sale. The customer is already buying and your rep is already there. Simply have them pre-sign on a plan that the coverage and billing starts when the warranty is over. We get 50% of our sales to sign at POS. And we don't have to go back from the sales side.

Be sure to include an auto renewal part to your plan, and exclude toll fraud.

There are manuals and seminars on this subject and you can email me if you want more information on what I can get for you.

If you are not offering maitenance plans, you are leaving most of the profit on the table and selling yourself short. And, you are living month to month instead of having a large amount of contracted, predictible, high profit, residual income coming into your business each month.

These are easy to sell if you have a great plan that offers benefits to your customers "even if nothing breaks" such as priority dispatch, over the phone support, programming, etc.

Again, I got a ton of information on this subject. I am at [email protected]

Thanks. Brian

I would also add by doing so you lock the customer in for MAC work.

Forgive me if this sound rude - and maybe I'm missing something, so please explain - but this sound like nothing more than you ripping off your customer and being proud of it!
1)You are charging the customer a monthly fee for a service you don't provide
2) That is already 100% covered by the manufacturer warranty and
3)THEN you charge them the regular fee on top of the monthly fee for the services you do provide - or am I missing something?

Sure it puts money in your pocket, but how exactly are you different from the "used car salesmen" or those telemarketing guys who rip of the elderly with $500 water purifiers you can buy at wall-mart for $30!

You might be able to get away with it because, sadly, most customers are too stupid to know or pay attention to what they're signing, but sooner or later you'll get one who'll be calling the state attorney generals office right after you walk out the door.

Again, I am not trying to offend you, but I don’t understand what else you’re selling!

It's hard enough making a living as it is, it doesn't make it easier if we encourage dishonesty and deception as a revenue source!

How do you mean dishonest? You offer the maintenance plan that begins after the warranty. I for one had desighned my contract so that it has the customers interest in mind. Sure i make a monthly income from them, but the extra services I provide for contract holders really makes it worth the cost.

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| Telephone Systems | Voice & Data Cabling

Corwyn, it's an insurance policy. Plain and simple. You aren't required to do it. I have seen many people roll the dice then call wanting help and I have no reason to jump and every reason to charge the max. I also warn the customer about doing their own work AND not being certified as it voids both the warranty AND the maintenance contract. Once again no one is required to have a service contract but don't expect a vendor to come running when you don't have one.

I'm SORRY but this -
"A maintenace contract with all hardware still under manufacturer warranty? Sweet!"
- Doesn't say insurance policy after the warranty to me! This says -well English is my 3rd language, so maybe you need to explain it to me!?

And, if you are charging for travel time, moves, changes, programs WHAT exactly does the "insurance" policy which you title Service agreement (as in perform a set of services for an agreed fee) cover? What that you'll show up an hour earlier than usual?

I've said SEVERAL times in my original that I didn't understand what you are selling, but you're still not explaining anything!

I believe the "sweet" comment was from a member that misunderstood as well.
Yes there is a warranty on the items in question but the labor is NOT covered under the warranty. they are selling them a contract on the labor during the warranty period, then after the warranty is over converting it to include parts. MAC work is a seperate deal all together.

Ok- Let me explain. A post warranty service contract (AKA Maintenance plan) covers parts and labor should something break, after the original warranty is over. Many firm, like mine, add extra benefits to our plan, like free training, free programming, and priority dispatch. Any additions, including moves, changes, wiring, and extra equipment, is billable. Hope that clears things up.

I would be angry if anyone I have consulted or taught would ever go out with the intent to rip an uneducated customer off. The object here is to provide a good plan for the customer, sell it when they are in the buying mode, and collect a monthly residual payment to be there for them. Sort of like my health insurance. I pay every month whether I use it or not, but it is nice to have when I do need it.

I have spoken as a paid consultant on this subject for NEC, Winn, several distributors, and NATD. I have also done several private seminars on this subject. The only uneducated ones in this discussion is not the customers but rather, the interconnects who don't offer plans. If anyone wants info on a manual called "How to Turn your Interconnect Into A CASH COW." Please email me your fax number to [email protected] and I will fax you a 2 page flyer.

Rest assured, you can have a plan where you make a ton of profit and still be a good value to your customers... and they will want it! I can tell you how to strike this balance... (I did a little above). Brian

We offer that and a better MAC rate for our Maint customers.

I think that's as clear cut as it gets. Everyone hates insurance and hate it even more when they need it and don't have it. I really don't mind either way IMHO. Maint contracts you have to be there..non maint..well, when you can get to it in your schedule. I know it sounds harsh but this is a service industry and phones are as critical as it gets.



[This message has been edited by Coral Tech (edited February 15, 2005).]

The sample contrat is also missing an acceleration clause. for those of you that do not know what this means... I will explain...

My contracts are 3 year agrrements with an automatic 1 year renewal after the intial term.

The acceleration clause states if a customer does pay you after 30 days of receipt of the invoice, the entire contract no becomes due.

Walter

In some markets different things will work (e.g. accelaration clauses in metro markets). That is a great idea... in some rural markets where deals are sometimes done with a handshake and no written contract (if you can believe it) this may be viewed as a little strong armed. In my seminars I teach other interconnect owners to design a customer centered plan that fits the business climate they operate in. Thanks for this tip. Brian

Hi Brian. I would really appreciate it if you can email me a sample copy of your maintenance contract to [email protected] Thanks in advance.

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https://www.cablemaster.com.sg