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Yearly service plans??

I know I've read about them before, but can't find too much info now. How does everyone handle service plans?

It's finally dawning on my bosses that as the systems get bigger, the problems get more frequent, and I will be needed in more places more of the time. We need to create some sort of service insurance plan that our customers can purchase.

Just looking for ideas or pointers.


Kevin D.


  • As an rule of thumb, I figure a one year service contract as 10% of project cost. Service contracts include 1 - 3 preventive maintenance calls, one system programming modification call if end user requirements have changed, next business day repair,replacement or loaner for any malfunctioning equipment, 8 hours aggregate telephone support, and 8 hours aggregate on-site labor. Anything over and above the limits of the contract sees a 20% discount in standard labor rates.

    You end up having to do a little math depending on project complexity, and take into account any component that may have available extended factory warranties. Also take into account travel if the place is far away.

    Try it like your auto dealership does. Look at the average end-user cost of service and repair on their car, and add a 40% margin. Its a crap shoot, but the odds are in favor of the house :)
  • Veraview, plan sounds fairly straight forward and after you explain this to the customer most would likely agree. Just make sure that you detail what is and isn't covered and don't cover anything above and beyond the manufactures warranty. I tend to find people don't mind paying as long as they feel they're getting a good deal. It is also a good idea to give a complete system training course to a few people at the customers site. I tell my sons all the time that by doing the job right the first time you shouldn't have to do it again.(barring equipment failure)
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