HVAC Contractor Agreements That Boost Customer Base - Downriver HVAC


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HVAC Contractor Agreements That Boost Customer Base

Basic maintenance is important, especially for residentials. Notwithstanding, what an agreement is all about, is the client experience, and relationship with their customers. Over the years, the term “service agreement” is carrying maintenance with your existing customers by providing constant check up on HVAC units in their homes. 

It will interest you to know that almost 80% of profits made in this industry are by just 20% of HVAC contractors. After a deep research, it was discovered that maintaining a healthy service agreement with your residential clients is the key. It’s not just something that happens overnight.

Types of Residential Agreements

As an HVAC contractor, you should have already decided on the type of terms and conditions you want to implement with your clients. Then, the next is to think of the types of products and services you will offer them to keep them glued to your business. Here are the expert ideas to consider:

  • Accurate tune-ups – this is more like inspecting and cleaning only. Depending on the product used
  • 1-year service agreement which may consist of 2 or 3 PTU’s that year
  • 1-year labour which includes the equipment for labour on repairs in that particular year
  • 1 full year parts and labour. This could be an extended coverage on parts and labour for that year
  • Extended years labour which could cover for a specific agreed amount of years between the contractor and the customer
  • Extended years for parts and labour. This is a total coverage for a specified number of years

The products and services offered by a heating and cooling contractor are dependent on the operational comfort levels he has as a company. So, making your service agreement products aligned with your end achievement is vital. These will lead to the amount you will charge these products upon the expiration of the service agreement.

Pricing Agreements

This section is not too complicated. Pricing of the service agreement is based on the type of product selection you want to offer. The products could have several features in them such as:

  • Direct labour based on the estimate of the agreement
  • Travel time
  • The wage paid for the type of work or level of technician
  • Direct labour profits – this is associated with burden or benefits for labour on site
  • Materials – that is if anyone is used in the service agreement
  • Extended warranty on coverage cost – if it is either purchased through a vendor or in-house sale

There are two basic pricing service agreements to discuss in this section namely:

  • Price for profitability
  • Price for maximum uptake
  1. Price for profitability: Tracking a gross profit target, and making sure you hit this target with the pricing, based on the duration it takes to market the agreement to your consumers using a price template.
  2. Price for minimum uptake: This is also referred to as price for maximum consumption. It means dealing with a lower price to make selling easier, especially by making a discount from the demand service calls.



As an HVAC contractor, you can check through the service agreement pricing templates on the electric gas industry association website to get a template for a service agreement and be certain that your set prices are accurate. There are several forms for service agreements that permits you to place your price correctly on the service agreements you make for your business. This will prove to your customers that you are professionals, and the bonuses you offer will keep them glued to your services, thereby leading to high profits for your business.


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