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Service Agreements
1. Service Agreements
“Golden Handcuffs”
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2. Overview
How service agreements impact
financially
Making it easy by monthly debit
Impact of spiffs
Impact on gross revenue
Win….Win….Win
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3. Three Year Premium
Plan
First year…………$148
Second…………….126 15% discount
Third………………..126
Total……………….$400
Upfront payment… $40 (For Spiff & Admin Fee)
Monthly debit of $10.00……..36 months
Always except…cash…check…
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4. Benefits and Goals
Tech A…Goal…Sold……..Sales……Spiff
30 20 66% $8,000 $800
15 50% $6,000 $600
X 3 Techs………….66% $24,000 $2,400
50% $18,000 $1,800
Numbers for 30 days Example for all associates
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5. Company Impact
Increase Annual Gross Sales
$288,000 @ 66% of
Sales….$28,800…spiff
$216,000 @ 50% of
Sales….$21,600…spiff
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6. Looking at Cost
Cost of Sales….Labor @ 25% = $72,000
…..Spiffs @ 10% = 28,800
…..Materials @ 2% = 5,800
…...Admin @ 5% = 14,400
Total COS…………………………..$121,000
COS….Cost of Sales
(COS for Service Agreement Sales only as estimate)
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7. How the Numbers Work
AGS from SA…….$288,000
Minus COS……….$121,000
Gross Profit……….$167,000 or 58% GM
Based on income of $41,600 a spiff of $9,000 =
21.6% raise
AGS….Annual Gross Sales
SA……Service Agreements
COS….Cost of Sales
GM…..Gross Margin
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8. Summary
Make it easy to own a Service Agreement
Think about your personal goals to sale
agreements
Remember how sales contribute to the
company’s goals
Win for the customer
Win for YOU
Win for company
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9. NOTES
All numbers, percentages, and amounts
used are for example only.
Your outcome should be more
positive, based on how motivated you
are in setting Goals for your associates.
If you are committed, it will be a
department in your company.
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10. Coaching for Contractors
“We can’t change the wind but we can adjust our sales”
Business Systems and Solutions
Flat Rate Pricing Software
(Flat Rate Plus TM)
Service Management & Accounting Software
(Total Office Manager TM)
1099 Heathwood West Dr. Cookeville, TN 38506
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