Residential service agreements can uniquely position your HVAC business to succeed. Without them, you’re missing out on one of the most effective, low-cost marketing and service tools to increase sales and company growth.

While your company will certainly benefit from the repeat business residential service agreements afford, two other key groups also benefit: Your customers and coworkers.

Further, smart HVAC contracting businesses know that residential service agreements help to overcome three major barriers to building a lasting, profitable business. They are:

  • Acquiring well-trained coworkers in all facets of the business and keeping them
  • Creating revenue during the off-season
  • Beating out competitors offering lower prices

Here’s how a residential service agreement benefits all three groups: coworkers, customers and owners.


Simply put, with a base of customers needing your services year-round, you’ll guarantee more work, which allows you to hire quality coworkers without having to reduce hours during the off-season or lay anyone off. And a company that can’t provide stable, consistent work might force quality technicians to seek employment elsewhere.

You’ll also be able to hire more competent coworkers in other facets of your business, such as customer service and sales, and keep them employed throughout the year.


The benefits for homeowners are well known and generally depend on the plan you develop. In most scenarios, a residential service agreement program should allow homeowners to net:

  • Discount on any emergency service repairs, parts and/or labor
  • An HVAC system that requires fewer repairs
  • A longer-lasting system
  • Priority customer
  • Emergency service any time of day or night 
  • No overtime charges
  • Higher energy savings and lower utility bills
  • Increased home comfort
  • Better home safety

Furthermore, with consistently high-quality work and repeat visits, homeowners will become better informed  about the value of your services.


With well-trained technicians committed to your business and a larger group of satisfied, repeat customers, HVAC company owners are positioned to grow their businesses. And the cycle of benefits then repeats.

In particular, your company will benefit because the equipment-replacement sales cycle decreases; you’ll be better positioned to inform homeowners about indoor air quality equipment and other accessories; you’ll create a more stable work environment with more available sales opportunities and increased customer retention; you’ll have a better cash flow; you’ll gain more referrals; and you will have created a stable of satisfied customers and coworkers, making both groups easier to work with.

For more expert advice on developing a residential service agreement, feel free to contact me today.