This document discusses the benefits of a three-year service agreement plan for technicians. It offers customers a discounted total price of $450 for the agreement paid through monthly installments of $10.59. For companies, it aims to increase annual gross sales by $337,500 through 750 premium agreements. The estimated cost of sales is $45,600, resulting in estimated gross profit of $74,400 or 62% gross margin. The document emphasizes that service agreements can be mutually beneficial for customers, technicians, and the company at large.

1. Service Agreements
“Golden Handcuffs”
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2. Overview
How service agreements impact
financially
Making it easy by monthly debit
Impact of spiffs
Impact on gross revenue
Win….Win….Win
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3. Three Year Premium
Plan
First year…………$159.95
Second…………….149.95 6%discount
Third………………..140.95
Total……………….$450.00
Upfront payment… $79.95 (For Spiff & Admin
Fee)
Monthly debit of $10.59……..35 months
Always except…cash…check…
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4. Benefits and Goals
 Service Calls………….Day……Week……Year
4 20 1000
 Agreements Sold
50%.........2……….10……….500
25%.........1………..5………..250
 X 3 Technicians………..3……….15……….750
Example for all associates
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5. Company Impact
Increase Annual Gross Sales
 750 Premium Agreements = $337,500
 750 One Year Agreements = $120,000
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6. Looking at Cost
Cost of Sales….Labor @ 25% = $30,000
…..Spiffs @ 6% = 7,200
…..Materials @ 2% = 2,400
…...Admin @ 5% = 6,000
Total COS……………………………$45,600
COS….Cost of Sales
(COS for Service Agreement Sales only as estimate)
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7. How the Numbers Work
AGS from SA…….$120,000
Minus COS……….$ 45,600
Gross Profit……….$74,400 or 62% GM
Based on income of $41,600 a spiff of $2,49
Each Tech gets 6% annual raise
AGS….Annual Gross Sales
SA……Service Agreements
COS….Cost of Sales
GM…..Gross Margin
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8. Summary
Make it easy to own a Service Agreement
Think about your personal goals to sale
agreements
Remember how sales contribute to the
company’s goals
Win for the customer
Win for associates
Win for company
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9. NOTES
All numbers, percentages, and amounts
used are for example only.
Your outcome should be more positive,
based on how motivated you are in
setting Goals for your associates.
If you are committed, it will be a
department in your company.
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10. Coaching for Contractors
“We can’t change the wind but we can adjust our sails”
Business Systems and Solutions
Flat Rate Pricing Software
(Flat Rate Plus TM)
Service Management & Accounting Software
(Total Office Manager TM)
1099 Heathwood West Dr. Cookeville, TN 38506
615-545-3551
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