Why one good agreement is worth more than ten new installs
Most HVAC startups chase installs.
The smart ones build agreements.
Installs pay today.
Service agreements keep the lights on when installs slow down.
More importantly, a good service agreement protects you—from unpaid visits, warranty confusion, seasonal chaos, and customers who expect free labor forever.
This is how to build service agreements that actually work for startups—without overcomplicating things or scaring customers off.
🧠 First: What a Service Agreement Really Is
Let’s clear the confusion.
A service agreement is not:
-
A warranty replacement
-
A promise of free labor forever
-
A discount program that loses money
A service agreement is:
-
A prepaid maintenance plan
-
A priority-access contract
-
A relationship anchor
Done right, it stabilizes cash flow and filters better customers.
🛡️ Why Startups Need Service Agreements Early
Most new contractors think:
“I’ll add agreements later when I’m bigger.”
That’s backwards.
🚨 What Agreements Do for Startups
-
Smooth out slow seasons
-
Reduce emergency chaos
-
Lock in repeat customers
-
Improve install quality (maintained systems fail less)
-
Create predictable income
Predictability beats growth when you’re new.
🧱 The Protection Side (This Matters More Than Money)
Good agreements set boundaries.
🔒 What Your Agreement Must Protect You From
-
Free emergency calls
-
Unlimited visits
-
Misunderstood warranties
-
“You were just here last month” arguments
If it’s not written, it will be assumed.
📋 Core Elements Every Startup Service Agreement Needs
Keep it simple. Clarity beats length.
🧾 1. What’s Included (Be Exact)
Spell this out clearly.
Common inclusions:
-
One or two maintenance visits per year
-
Basic cleaning and inspection
-
Standard performance checks
List what you do—not what you might do.
🚫 2. What’s NOT Included (Even More Important)
This prevents fights later.
Explicit exclusions:
-
Emergency after-hours repairs
-
Major repairs or parts
-
Refrigerant additions beyond minor top-offs
-
Code upgrades
Customers respect honesty more than surprises.
⏱️ 3. Priority Service (Your Hidden Profit Lever)
Priority doesn’t mean instant—it means scheduled first.
Examples:
-
First available slot
-
Front-of-line scheduling
-
Seasonal priority booking
This costs you nothing but feels valuable to customers.
💵 4. Pricing That Makes Sense for Startups
Avoid underpricing just to sell.
💰 Smart Startup Pricing Structure
-
Annual flat fee
-
Paid upfront
-
Auto-renew option (clearly disclosed)
Most startups do better with one simple tier.
Cheap agreements attract high-maintenance customers. Don’t do that.
🔁 Agreements = Better Installs (Quietly)
Here’s what new contractors miss:
Maintained systems:
-
Break less
-
Fail slower
-
Are easier to diagnose
Which means:
-
Fewer emergency calls
-
Fewer warranty headaches
-
Less stress
Manufacturers expect proper maintenance.
👉 EPA system care & compliance overview:
🔗 https://www.epa.gov/section608
📑 Legal Basics (Keep It Clean, Not Complicated)
You don’t need a lawyer-written novel—but you do need basics.
⚖️ Must-Have Clauses
-
Term length (usually 12 months)
-
Cancellation policy
-
Transferability (or not)
-
Limitation of liability
Plain language wins.
👉 IRS guidance on service income & contracts:
🔗 https://www.irs.gov/businesses/small-businesses-self-employed
🛠️ How to Introduce Agreements Without Feeling Salesy
You don’t pitch—it’s part of the conversation.
🗣️ Tony’s Simple Line
“Most of our customers choose our service plan so they’re covered and get priority. I can explain it if you want.”
Then stop talking.
If they say no, you move on.
If they say yes, you explain calmly.
📞 When to Offer the Agreement (Timing Matters)
Best times:
-
After a clean install
-
After a successful repair
-
During a seasonal tune-up
Worst time:
-
During an emergency call
-
When the customer is stressed or angry
Context matters.
🚨 Common Startup Agreement Mistakes
I see these kill agreements fast:
❌ Overpromising coverage
❌ Pricing too low
❌ Too many plan tiers
❌ No written exclusions
❌ Forgetting to schedule visits
If agreements create stress, they’re built wrong.
🧮 The Math: Why Agreements Make Money Long-Term
Example:
-
100 agreements at $199/year = $19,900
-
Visits are scheduled, predictable, efficient
-
Repair upsells come naturally
That’s slow, steady income—not chaos.
🧱 Tony’s Rule for Service Agreements
Ask one question:
Does this agreement make my life easier—or harder?
If harder, rewrite it.
🔚 Final Word: Agreements Build Real Businesses
Service agreements don’t make you flashy.
They make you durable.
They protect your time.
They protect your margins.
They protect your sanity.
For HVAC startups, that’s not optional—it’s survival.
