The Computer "Service Block" Contract Explained

How a tech can achieve predictable profits ...by selling labor in advance

This is what some of the marketing experts say about the benefits of a computer service contract.

If you have a service business, don't make the mistake of pricing your services by the hour. Instead, bundle your time into a convenient "service package".(or computer service contract)

The reason for this is ...you will be forced to create an effective marketing plan. In doing this exercise you will discover your exact target market and what problem it solves.

This will give you plenty of marketing ammunition in selling the concept to your customers. As a double whammy it gives the customer more reasons to buy your services.

Today, the computer system is the epicenter of the small business. Hence, business owners need a high level of support for their computer equipment. The perfect solution being the "Service Block" computer service contract.

The "Service Block" is when you pre-sell say, ten hours of your labor at a reduced rate.

1.) Example 1: Your casual rate is $80 per hour and your service block reduced rate could be $65 per hour. The service block for the year would be $650 per year per PC.

2.) Example 2: your casual rate is $50 per hour and your service block reduced rate could be $40 per hour. The service block for the year would be $400 per year per PC.

To work out how effective this service agreement could become in the ideal world ....multiply every computer repaired in the last 12 months by the service block rate. If you attended say 200 computers in the year, multiply the "Service Block" rate x200 = $130,000 or $80,000 income per year.

This is not a silly example ...when you figure out ...it only means four different computers a week. Supporting networks would get you in contact with a large number of PCs. In addition, there are sales of new equipment to add to your annual income.

The "service block" agreement explained here ...is a three page self marketing document tailored for the computer repair business. You can carry it around in your vehicle or post to it customers.

By taking advantage of the attractive "Service Block" contract your customers get a high level of support with an attractive monthly payment.

Hiring staff becomes easier with a predictable income stream. "Service Blocks" or computer service agreements enable you to forecast your income and expand your business.

Once you see the impact on your business you will wonder why you never used a service contract before.

You will attract other revenue streams by using service agreements. Having a contract means more sales of hardware and software. The reason for this is ...your client is committed with a monthly payment going into your bank account.

A casual customer relationship is not a driver of sales. Without an agreement or contract the relationship is precarious and may end at any time. Rather like a casual de facto relationship and a marriage.

Having a computer service contract in your vehicle is an excellent way to convert casual customers into long term customers. We can easily calculate the benefits of a service agreement by multiplying all the computers serviced in a year by our "Service Block" rate.

This theoretical figure proves beyond a shadow of doubt that long term customers are far more valuable than casual customers.

Having healthy client relationships ....means more income. By regularly visiting your customers site and doing periodic maintenance there is far more chance of a healthy relationship. The reason for this is .....working on a casual basis you are always fighting the clock.

The customer wants the job completed and you out the door. The longer you stay unsuccessfully fixing a problem ...the more likely the relationship will sour.

Having a service contract means ....less stress for the computer tech. If you always work on a casual basis, it can be hazardous to your health. Continually troubleshooting under pressure wears you down. Having a service agreement means less stress and more hours doing easy preventative maintenance.

By using a service agreement you get an everlasting "drip-feed" into your bank account. How many computers (or dollars) have slipped through your fingertips ...by not having an income generating contract?

Service contracts means getting paid while on vacation. If you only work with casual customers ...you are penalized when going on vacation. In fact, you pay twice for a vacation ...the cost of the holiday plus the income you lose.

This ready-to-roll "Service Block" template ...is a marketing plan and income generator ...compiled into one document. By having this valuable document in your vehicle ...you can methodically grow your business.

Purchasing this ready made service contract ...means no expensive trips to your lawyer or time wasted, working on the details. It is all arranged for you in a specialized template.

By investing in the "Service Block" agreement you will get the template in the Microsoft Word format so you can easily amend the document to suit your requirements. The text is housed ...in easy to manage text boxes ...so copy will flow evenly around the document.

In addition I will include with the package:

1.) A compelling "Covering Letter" for your "Service Block" agreement. Here you will be able to mail your document with confidence and maximize your returns.

2.) A productive "Service Report Book" layout for a professional looking business. What better way to project a professional image than with a smart service report book. Take this to your local printer and instantly create for yourself ...an image of an expert. In Word format for easy editing.

3.) You also get two free standard service contract templates ...in Word format for easy editing. These are two agreements that have been previously used in the computer repair business. Just modify them with your own details.

Copyright Hytec Services 2004