Setting up service agreements for recurring revenue
Regular maintenance turns one-off jobs into steady, predictable work. How to structure, price and run service agreements.
By PrimemgrUpdated How we research and check this
One-off jobs keep a business busy; recurring work keeps it steady. A service agreement is a standing arrangement to do regular work (servicing, inspection, cleaning, treatment) on a schedule both sides agree up front.
Which work suits an agreement
Anything that should happen on a schedule rather than after a failure: air conditioning and heating servicing, pest treatments, regular cleans, equipment inspections. If a customer would be better off not waiting for something to break, it probably suits an agreement.
Define the scope clearly
Write down what each visit includes, how often visits happen, what is not included, and how extra work is priced. A clear scope stops “while you are here” turning into unpaid work.
Price for predictability
Customers value knowing what they will pay. A fixed price per visit or per period, with extras quoted separately, is simple to understand and simple to invoice.
Schedule ahead, and remind
The value of an agreement is that nobody has to remember it. Put the next visits on the schedule, and remind the customer before each one.
How this works in Primemgr
Each visit becomes a job a set number of days before its date, ready to book; the customer gets an email confirmation and a reminder when it is booked, and the equipment you service keeps its service dates on the customer’s record.