service contracts [RE-wrenches]

kirk vtsolar1 at together.net
Mon Feb 28 15:30:54 PST 2000


Hello everywrench,

I am debating the merits of offering service contracts to my existing
customers, above and beyond my initial workmanship and factory
warrantees. I'm sure some of you offer them, and I'm wondering how you
establish a yearly fee, what that fee includes(parts, labor, travel,
ect.), and the fine print of what the contract covers and what it
doesn't. Do service contracts bring in new business or establish
"baseline" revenue? How often might or do contracts burn you financially
if a system turns to require multiple service calls? Ect.

thanks,

Kirk Herander, Vt. Solar

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