Setting Up Maintenance Agreements

Now is an excellent time to reach out to your customers and highlight the importance of routine maintenance on their lighting systems. Regular upkeep ensures their lights remain brilliant for years to come. Plus, it’s a fantastic opportunity to stay engaged with your customers, generating extra revenue throughout the year, and offering discounts for new installations!

Why should your customers enroll in a maintenance plan?  

Here are some key benefits you can provide them:

  1. Preventing system issues early.

Routine maintenance can significantly decrease the likelihood of a breakdown. While not all repair situations can be avoided, preventive care can save a substantial amount on unexpected landscape lighting emergencies - particularly those urgent service calls right before a big, backyard gathering!

  1. Clearing away debris.

Throughout the summer, grass clippings, mulch, silt, and growing plants can obstruct or diminish light output. Uncovering luminaires, trimming vegetation, and cleaning lenses ensure the system shines brightly.

  1. Enhanced efficiency.

This is particularly relevant for customers who still use halogen systems. Did you know that if one halogen bulb fails, the other bulbs in the system are subjected to greater stress and may fail prematurely? Keeping the bulbs current keeps your customers happy.

  1. Detection of faulty components.

During the summer, systems can endure wear and tear. Even with high-quality products, lights can be misaligned or wires and connections can become exposed or damaged. A quick inspection allows for parts to be fixed or replaced as necessary. Ultimately, maintenance visits don’t just keep a system looking great all year long, they also help you avoid dissatisfied customers. 

Here are some of our suggestions to include in your maintenance agreements:

    • Inspection of all parts, noting those that may need to be replaced or repaired.

    • Inspection for moisture intrusion.

    • Inspection and adjustment of tree and cable mounts as needed.

    • Inspection of fittings and connections.

    • Inspection and cleaning of LED components.

    • Cleaning of all luminaire lenses.

    • Cleaning all luminaire finishes (we recommend Sheila Shine for our brass products).

    • Adjustment of luminaire positioning to ensure optimal illumination.

    • Minor plant and tree pruning around luminaires to enhance night effect.

    • Testing and re-setting of system controls (timers/photocells).

    • Testing amperage at the transformer.

    • Evaluation of overall system performance..

Setting Up a Maintenance Agreement

Maintenance can easily lose money for your business if you're not careful.  It's important to price maintenance agreements correctly for profitability. In general, for any service business it's going to cost a business between $75 and $150 depending on the distance from the shop just to send a technician on a service call.  You'll want to group service contracts close together for tight routes to increase profitability.  You'll also want to account for man-hours onsite, two technicians can easily double your cost to  perform a service, as well as time behind the wheel getting to and from a service call impacts your bottom line.  Being organized, knowing what is installed, having the supplies on the service vehicle, limiting the type of luminaires used on most installs, all help you to perform more service per hour and is going to help make service a profitable endeavor vs a loss to your business.

Here is a list of things you may include in a service contract:  

  1. Establishing the Price:

    • Factors to Consider:

      • Base price for a visit: What is your billable hourly rate?

      • Number of Luminaires: More luminaires require more time and resources. How much time is consumed per fixture, multiplied by the billable hourly rate.

      • Type of System: Age, not installed by you, LED, complexity of the setup, etc.

      • Location and Accessibility: Ease of access to the lighting system.

      • Frequency of Visits: Typically, two visits per year.

      • Additional Services: Include any extras like extended warranties or emergency visits.

    • Example Pricing Structure:

      • Base fee plus a per-luminaire charge.

  1. Service Inclusions:

    • Two Maintenance Visits Per Year: Ensures consistent performance and longevity.

    • Extended Warranty on Products: Provides added value and peace of mind for customers.

    • Discounts on Addons to System: small discount for upsells.

  1. Benefits to You:

    • Opportunity to Upsell: During maintenance visits, suggest upgrades or additional features.

    • Pre-empt Competitors: Lock in customers with a maintenance agreement, reducing the chance of competitors adding to your system.

  1. What Should the Agreement Look Like?:

    • A Sample Form Includes:

      • Customer Information: Name, address, contact details.

      • System Details: Number and type of luminaires, placement.

      • Technical Specifications: Transformer type, amps at transformer, location of GFI, color temperature used.

      • Pricing and Services: Maintenance agreement costs and a detailed breakdown of the included services.

      • Legal Language: Terms and conditions, liability, service scope.

      • Auto-charge: Set up automatic monthly billing for convenience. This can usually be done through your CRM or billing system.

      • Length of Agreement: Typically one year, with renewal options.

By integrating these points, you can effectively set up a comprehensive maintenance agreement that benefits both your business and your customers. If you need more details on any section or a specific template, feel free to ask! To contact us, send us a email at info@sllights.com