I recently had an occasion to run some numbers on a contractor's maintenance agreements (M.A.) to find the total income generated per year by each M.A.
After adding the M.A contract income, the cash service for each M.A. and the system replacement income from each M.A. customer, I came up with an average income of $959.00 for every M.A. customer this contractor had!
That is $1,000,000 in sales for every 1,050 M.A. customers at a very good margin!
If you had 3,150 M.A.'s, you would do about $3,000,000 a year at a net profit of 12%!
If you treated these customers right and took good care of them, it would be like having all of your customers in your back yard with a big tall fence around them. Nobody could take them away from you! They would be your "customers for life".
M.A.s are the life blood of your business. They are your share of market. If you don't get them, someone else will! Everybody that works for you must be made aware of how important M.A.s are. This has to come from the top and you have to talk about it all the time.
How many M.A.'s did you sell today?
