I was successful with service contracts. I don’t have that many out there but they were successful. I quit offering them because what happened is (and rightfully so) the people that paid for the service contracts expected prompt and immediate service. Even though my contract said support within 24hours and on-site visit within 48 hours of first call.

This is fine IF you have someone other then your self that can do service. Sadly as a one man band (as most of us are) our time just isn’t that flexible. Couple that with the time between thanksgiving and Christmas and your pissing someone off. Since your under contract those that have the contract get priority.

As many people just throw things on their CC card like Netflix and other little charges people have started to take note at how much that adds up. Anyone with basic finance sense can realize that even if they have to pay for a truck roll it’s cheaper then the service contracts. Most clients are finance savey and it doesn’t take a genius to realize the odds are in our favor (most of the time)

I’m not denying that this industry needs to change and needs a lawyer type billing system. The problem is lawyers are standardized, this industry is far from standardized. I also found that most of my word of mouth comes from how great my service is. It’s not the system it’s self it’s how it’s maintained is how clients perceive quality. Most are used to calling tech support for their printer and shit and acknowledge service. Of course you get the asses but overall people are good.

You have to look at the size of systems your selling. If most of them are over 100k then a service contract is probably in order. A 10-20k System where 10% is the first service contract, doesn’t make sense. Provide a one year warranty on your installation, after that all service is hourly. Yes talking people over the phone is time taken away but it’s just the cost of doing business but if the job is out of warranty and you spend 10 minutes on the phone I rather eat that and have a happy client then sending them a bill for my time and pissing them off.