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Service Agreements


               “Golden Handcuffs”




4/22/2009        quot;Together We Can Do Itquot;   1
Overview
How service agreements impact
 financially
Making it easy by monthly debit
Impact of spiffs
Impact on gross revenue
Win….Win….Win

4/22/2009      quot;Together We Can Do Itquot;   2
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…
4/22/2009         quot;Together We Can Do Itquot;     3
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


4/22/2009             quot;Together We Can Do Itquot;               4
Company Impact
            Increase Annual Gross Sales

$288,000 @ 66% of
  Sales….$28,800…spiff

$216,000 @ 50% of
  Sales….$21,600…spiff

4/22/2009           quot;Together We Can Do Itquot;   5
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)




4/22/2009                 quot;Together We Can Do Itquot;    6
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


4/22/2009           quot;Together We Can Do Itquot;         7
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

4/22/2009        quot;Together We Can Do Itquot;     8
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.

4/22/2009        quot;Together We Can Do Itquot;       9
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

4/22/2009                     quot;Together We Can Do Itquot;                10

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Service Agreements

  • 1. Service Agreements “Golden Handcuffs” 4/22/2009 quot;Together We Can Do Itquot; 1
  • 2. Overview How service agreements impact financially Making it easy by monthly debit Impact of spiffs Impact on gross revenue Win….Win….Win 4/22/2009 quot;Together We Can Do Itquot; 2
  • 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… 4/22/2009 quot;Together We Can Do Itquot; 3
  • 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 4/22/2009 quot;Together We Can Do Itquot; 4
  • 5. Company Impact Increase Annual Gross Sales $288,000 @ 66% of Sales….$28,800…spiff $216,000 @ 50% of Sales….$21,600…spiff 4/22/2009 quot;Together We Can Do Itquot; 5
  • 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) 4/22/2009 quot;Together We Can Do Itquot; 6
  • 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 4/22/2009 quot;Together We Can Do Itquot; 7
  • 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 4/22/2009 quot;Together We Can Do Itquot; 8
  • 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. 4/22/2009 quot;Together We Can Do Itquot; 9
  • 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 4/22/2009 quot;Together We Can Do Itquot; 10