Service contracts

[Hirstgas]

I appreciate that there has probably been threads on this befor but I can find them (it just took me 10 mins to figure out how to start a new topic)

Me and a mate are looking to starting up a pay monthly service/cover contract for our customers

He's a sparky and I'm obviously gas/plumber were gunna do a one stop shop for all household problems.
We've got a web developer on board to make sure where we need to be online.

Just wanted to know if anyone's had any Experiance of setting this up

Was it straight forward/Worthwhile?

How many property's do you need to get to make any money ect....

All help much appreciated...

Thanks

 

[IDCHAPPY]

We offer a yearly service and contract call out scheme and have about 30 or so client's but every thing is chargeable. If your going to do free call outs and parts then you'd need hundreds of people signed up really 🙂

 

[jtsplumbing]

BG & Corgi are charging around £20 pr mth, If you are looking to cover gas & electric you need to look at the age of the property's and what's installed in them you only need a couple of claims and you would soon be out of pocket, depending on what you intend charging will determine how meny property's you would need 2 men earning say 20 grand each would need 2000 property's just to cover your wage, without paying out for any parts.

 

[Roger Welton]

Need loads to make it worthwhile, a couple of firms local to me have done this and are slowly shutting down the schemes as they find custs are always getting them out for minor issues.

You'd want to do a survey and rectify all potential problems or exclude them before getting folk on contract to filter out all the dross

 

[Hirstgas]

Yeh looked into different contracts and they all exclude problems caused by sludge and boilers that are over certain ages ect.
Infact when you look into it there more get out clauses that anything else ha.

Were both doing pretty well anyway with our own work and just looking down another route to secure more of a client base and expand.

Obviously we won't be taking on 10 year old isars ect and offering to cover parts.
Just need some advise on how it all works.

It's just an idea at the min in the very early stages.

 

[A1P]

There are a number of 'big players in this market.As has been said you need big numbers and to be able to write contracts like them.As you have noticed exclusions are the key.My feeling is that for BG etc.it is just a way of 'buying up the market'.Oh you need a £600 powerflush.What a pity your boiler is beyond repair,we have some special offers at the moment.I am sure it is also an 'earner' on a big scale.I am not sure it is worth taking on the established market leaders.You would have to do it on price probably,not a good idea.

 

[Hirstgas]

If I don't go down the repair route aswell I'm still looking just to do service contracts ect, like you say it's about getting a foot in the door and building a rep with the customers so when they need a powerflush, new boiler ect they will use me.

 

[Linkyplumb]

Another thing to consider... Would you yourself be able to cover it all, if you had callouts at the same time. If customers are paying, then they are going to expect a reasonably quick service

 

[julesverne]

BG & Corgi are charging around £20 pr mth, If you are looking to cover gas & electric you need to look at the age of the property's and what's installed in them you only need a couple of claims and you would soon be out of pocket, depending on what you intend charging will determine how meny property's you would need 2 men earning say 20 grand each would need 2000 property's just to cover your wage, without paying out for any parts.

think you got your figures wrong. 2000 houses at 20 quid a month is just short of half a million a year. nice work if you can get it.

personally i think this is the way to go in the long run especially with wages rises being non existent and households that cant afford big repair bills and whilst i know they would be better saving the money people want peace of mind. i am planning on bringing out my own cover. its basically a numbers game and having the back up. you will need to take the calls etc. good luck if you go ahead with it. its need a lot of planning.

 

[Ermintrude]

It's ok till u get 20 calls in one week. We can't ever seem to get parts for anything over a week old. Refund premiums against a new boiler!

 

[Hirstgas]

think you got your figures wrong. 2000 houses at 20 quid a month is just short of half a million a year. nice work if you can get it.

personally i think this is the way to go in the long run especially with wages rises being non existent and households that cant afford big repair bills and whilst i know they would be better saving the money people want peace of mind. i am planning on bringing out my own cover. its basically a numbers game and having the back up. you will need to take the calls etc. good luck if you go ahead with it. its need a lot of planning.

Nice to hear someone who thinks it's a good idea,

I agree people these days love paying for stuff month by month


Does anyone use gas checker and seen the beta contract they have on there?

 

[jtsplumbing]

think you got your figures wrong. 2000 houses at 20 quid a month is just short of half a million a year. nice work if you can get it.

personally i think this is the way to go in the long run especially with wages rises being non existent and households that cant afford big repair bills and whilst i know they would be better saving the money people want peace of mind. i am planning on bringing out my own cover. its basically a numbers game and having the back up. you will need to take the calls etc. good luck if you go ahead with it. its need a lot of planning.

Thanks for pointing that out, I was wrong ! just got in, was on the phone and trying to do other things, any way as you say nice if you can do it, but look at how meny big boys & insurance Co doing it, first you have to get the customers, then try and back it up, would think admin would be a nightmare , and could you keep up with work load ?

 

[negas]

its taken me over 5 years to build up any reasonable numbers, you must offer better and faster calls than bg etc, i couldn't drink any alcohol remember you need to able all hours, and on many occasions i have a lot to pay out on parts. on just one visit.and the amount of cust that try to get the boiler on cover with faults is amazing.Now finally managed to get just over 1000 on cover and now recommendations finally making it easer. Good luck

 

[lame plumber]

look at AA cover small print, £90 callout costs!! and monthly fee hardly worth taking it out. Unless you have done your sums properly youll lose out over time

 

[Hirstgas]

look at AA cover small print, £90 callout costs!! and monthly fee hardly worth taking it out. Unless you have done your sums properly youll lose out over time

Yeh but people do take it out that's what I mean I've seen a few local company's doing it. So must be some brass in it.

 

[negas]

Yeh but people do take it out that's what I mean I've seen a few local company's doing it. So must be some brass in it.

not as much as you might think

 

[Ermintrude]

Only cover boilers you know!