Are Service Maintenance Agreements Really a Good Deal?

by | May 8, 2015 | Air Conditioning

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When the contractor installed the new heating and cooling system, there was the question about taking out a service agreement. At the time, the owner wondered if it was really worth the expense. Here are a few of the reasons why Service Maintenance Agreements really are a wise investment.

Breaks on Service Calls and Inspections

Many Service Maintenance Agreements have provisions related to annual inspections. Depending on the terms of the agreement, the home-owner may be entitled to a full system inspection once a year without having to pay a penny. When it comes to service calls, it is not unusual for the agreements to provide a limited number of free visits over the duration of the annual agreement. This means if something is wrong and the repair professional corrects the problem without having to replace any parts, the client could owe absolutely nothing.

Discounts on Replacement Parts

Over the years, it is a safe bet that one or more parts will wear out and require replacement. Some of those components can be pricey. Rather than worrying about how to adjust the budget and cover the expense, thing of how nice it would be if the service agreement included a discount on the part. While there is still some amount to pay out of pocket, it will be much more manageable than having to pay the standard retail price that non-contracted customers are assessed.

Reduced Rates for Labour Costs

When a repair is necessary, there is more to consider than just the cost of the replacement part. A labour charge also comes with the project. Some service agreements will provide a price break on the amount of labour. That could be in the form of a flat rate, or possibly a percentage off the total labour, based on the number of hours involved. With either approach, the result is a lower overall cost to the home-owner.

For home-owners who do not have a service agreement in place, talk with a local provider and secure one as soon as possible. By the end of the first year, it will be easy to see how the contract has already saved the customer a great deal of money.

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