0381: The Value Of Service Agreements In Your Construction Company

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 0381, And It's About The Value Of Service Agreements In Your Construction Company</strong></span></h1> <p><span data-preserver-spaces="true">It goes to the heart of the question of the difference between a </span><a class= "_e75a791d-denali-editor-page-rtfLink" href= "https://www.fasteasyaccounting.com/customers-vs-clients" target= "_blank" rel="noopener"><span data-preserver-spaces="true">customer and a client</span></a><span data-preserver-spaces="true">. Service agreement holders are more likely to be clients who add more value to your construction company because they represent your customer base's most loyal segment. </span></p> <p><span data-preserver-spaces="true">Every service agreement customer represents future work. In the meantime, service agreement clients are a source of cash flow and are predetermined to call you instead of your competition when repairs are necessary.</span></p> <p><span data-preserver-spaces="true">Non-service agreement customers are more likely to be customers and fickle. They may call your contracting company for future work or decide to shop the competition and use the information they find to negotiate for a lower price. In some cases, they may not even remember you or your construction company name.</span></p> <p><span data-preserver-spaces="true">Besides, your replacement sale close-ratio usually is higher with service agreement clients, and your overall pricing and related service care level can be much higher, resulting in even more raving fans. Service agreement clients trust you, follow your recommendations, and do not frequently shop around. </span></p> <p><span data-preserver-spaces="true">When and if you ever decide to sell your company, potential buyers understand the value of service agreements, and your company will be more attractive if you have a strong base of service agreement clients and are generally willing to pay even more for it than you expected. </span><