A brief description of the Test & Inspect portion of a service agreement. Test & Inspect Labor This is all the travel, setup, testing, inspection and report preparation labor necessary to complete the terms of the agreement. It does not include the labor to perform
programmed maintenance or repairs/replacements of any kind. This is the most common type of service agreement sold
today. The premise is that if you give the customer a cheap or even in some cases a free service agreement that you will make all your money on the
repairs. This is a disservice to the customer and creates a high cancellation rate.
Test & Inspect service agreements are the base of a
low quality service
agreement. They are nothing more than exactly what the name implies. There is no labor or materials included to performance actual
programmed
maintenance. Testing and inspecting are only the first step in determining what maintenance tasks are necessary. If your maintenance base is mostly T&I type service agreements your business is on a roller coaster
ride. Most companies that pursue this type of agreement as the main source of revenue, often find that their goal is to only lose money until late March or early April.
Based on national averages, contractors that
encourage these types of agreements also lose customers three times faster than contractors that sell high price, high quality service agreements.
The choice is yours.
Build a reputation of being the best. Offer your customers the peace of mind that they deserve.
[ BACK
] | 
