SO WHAT’S THE BIG DEAL ABOUT MAINTENANCE? The Importance of Maintenance Agreements in a Successful Dealership

SO WHAT’S THE BIG DEAL ABOUT MAINTENANCE?

The Importance of Maintenance Agreements in a Successful Dealership

It would be nice to have someone to help with problems at any time we need, with a monthly service charge.

Actual Quote from the 2009Restaurant Manager End User Survey

(And thanks to Mona Tidwell for opening the presentation by reading this quote for us!)

Reseller RevenueSources Comparison

•Reseller 1•Reseller 2•Reseller 3•Reseller 4


Reseller 1 Revenue Sources

65%

14%

12%

9%

POS System Sales

Fee for Service

Service Contracts

Credit Card Residuals

21%



65%

14%

12%

9%

POS System Sales

Fee for Service

Service Contracts


21%



65%

14%

12%

9%

POS System Sales

Fee for Service

Service Contracts



76%

6%

15%3%

POS System Sales

Fee for Service

Service Contracts


21% Recurring Revenue



65%

14%

12%

9%

POS System Sales

Fee for Service

Service Contracts



76%

6%

15%3%

POS System Sales

Fee for Service

Service Contracts


21% Recurring Revenue 18% Recurring Revenue

Reseller 3Revenue Sources

87%

9%0%

4%

POS System Sales

Fee for Service

Service Contracts




65%

14%

12%

9%

POS System Sales

Fee for Service

Service Contracts



76%

6%

15%3%

POS System Sales

Fee for Service

Service Contracts


21% Recurring Revenue 18% Recurring RevenueReseller 3

Revenue Sources

87%

9%0%

4%

POS System Sales

Fee for Service

Service Contracts




Strategy For Boosting Maintenance Revenue

Recognize the Value of Your Services


Recognize the Value of Your Services

Service Contracts as Part of Your Sales Process

Procedures to Get All of Your Customers on to Maintenance

Designing Maintenance Agreements

Administering Maintenance Agreements

What does this mean to your business? ?

Real Profitability

Total Annual Rev: $570,000 21% Recurring Rev: $ 120,000 Profit on Recurring Rev: 66%

Real Profitability


Profit Margin on New Sales vs Profit on Recurring IncomeLower System Prices Lower Hardware Cost / Better

Dependability

Real Profitability


Recurring Revenue Profit: $79,200 (60 clients)

Recurring Profit Per Customer: $1,320

Step 1. Recognize your value

Your Services

Are Valuable


• Give your clients a choice

•Less than $3 a day

•Tel. & Remote Support

•Discounts on other parts & labor


• Give your clients a choice

•Less than $3 a day

•Tel. & Remote Support

•Discounts on other parts & labor

Step 1. Recognize Your Value

•The service you provide to keep MISSION CRITICAL POS Systems running smoothly is crucial to your clients…

Step 1. Recognize Your Value

•The service you provide to keep MISSION CRITICAL POS systems running smoothly is crucial to your clients…

…and they know it !

COSTSStep 2. Acknowledge The Costs

• MAINTAINING A SERVICE STRUCTURE

Phone Systems, Answering Services, Pagers, Mobile Phones & Blackberries


• COSTS OF MAINTAINING A SERVICE STRUCTURE


Technicians and Other Office Staff




Technicians and Other Office StaffYears of Training, Continued Education (PCI)




Technicians and Other Office StaffYears of Training, Continued EducationMaintaining an Inventory of Equipment

COSTS

$Step 2. Acknowledge The Costs

• COSTS OF MAINTAINING A SERVICE STRUCTUREPhone Systems, Answering Services,

Pagers, Mobile Phones & Blackberries

Technicians and Other Office Staff

Years of Training, Continued Education

Maintaining an Inventory of Equipment

$

$

$

$

Step 3. Sell It From The Start

Service Contracts as Part of Your Sales Process

Sell It From The Start


“I’m afraid to bring it upbecause my competition doesn’t!”



Irresponsible Careless Unprofessional

•Discuss maintenance from the start




•Use it as a differentiator





•Use it as a positive differentiator

•Be a ‘Consultant’ with a long term, not shortsighted, approach to the relationship





•Use it as a positive differentiator

•Be a ‘Consultant’ with a long term, not shortsighted, approach to the relationship

•Present it so well that they question what the competitor is offering


Procedures

•Be specific about the value in coverage:• Access to Support (online and telephone)

• Preventive Maintenance (cleanings, checkups)

• Unlimited Upgrades via SUP if you choose• Discounts on non-contract parts & services (Show price sheet for Contract vs. Non-Contract)

Procedures

Ok. I’m in... Now What??

Procedures

•Establish a clear timeline for when Initial Support expires and Maintenance Coverage begins

Procedures


•Demonstrate your responsiveness, and ability to quickly solve issues during Initial Support, and be proactive about contacting them early on:

“ Hi, this is Edgar- I’m just calling to make sure everything is going well for you”

Procedures


•Demonstrate your responsiveness, and ability to quickly solve issues during Initial Support, and be proactive about contacting them

•Make contact 7-10 days before the Initial Support period expires

Procedures


•Demonstrate your responsiveness, and ability to quickly solve issues during Initial Support, and be proactive about contacting them

•Make contact 7-10 days before the Initial Support period expires

•Price your NON-Contract Rates so high, the maintenance agreement is a ‘No-Brainer’

Procedures

•If they decline, have them read and sign the Rate Sheet and leave a copy with them.

•Offer the contract again when they make the first non-contract service call

Procedures

HANDLING NON-CONTRACT CALLS•Estimate the Cost of the Job•Charge then the highest rates possible•COD Before Any Work Is Done(Ccard by Phone or COD when you walk in the door)

•If you go over, Bill the Balance•If they don’t pay their balance timely, they are cut off.

Procedures

Don’t Be Afraid Of Your Customers•Enforce your policies

•Charge for ALL Service

•Earn their respect

Existing Client Procedures

What can I do about my existing

customer base??


Mine the gold you already own


• Develop a ‘Suite’ of Maintenance Options• Software / Phone & Remote Access: 9-5 Biz. Hrs• Software / Phone & Remote Access: 24/7• Comprehensive SW/HW Coverage : 24/7


• Develop a ‘Suite’ of Maintenance Options• Software / Phone & Remote Access: 9-5 Biz. Hrs• Software / Phone & Remote Access: 24/7• Comprehensive HW/SW Coverage : 24/7

• Offer Payment Options• Monthly, Quarterly, Semi, or Annually• Consider Discounts for annual pre-payment• Seasonal: Consider Peak Season Billing


• Send Letter To Clients• Explain The Coverage Options•


• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits


• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits• List The Payment Options


• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits• Explain The Payment Options• Provide Existing Contract Client References


• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits• Explain The Payment Options• Provide Existing Contract Client References• Ask Them To Select By A Specific Date


• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits• Explain The Payment Options• Provide Existing Contract Client References• Ask Them To Select By A Specific Date• Automatically invoice for Basic Support if

they don’t respond.


• Follow Up !• Create a task in your company specifically

for the purpose of acquiring maintenance contracts


• Consider Outsourcing or A Part Time Position• 1 or 2 hours / day, 2 or 3 days week• Try it for a couple of weeks• Minimal investment ($12-15/hr)


• Consider Commission-Based Collections

• Provide Incentives for Collecting AND Servicing the Account

• Get the technicians invested!• Share the love ~ $$$

Recap

• Revenue, Stability, Higher Profits

• Your Value

• Maintenance in the Sales Cycle

• Getting All Clients On Maintenance

Designing Maintenance Contracts


• Services Provided

•Phone Support- biz. hrs, after hrs and holidays •On-site Support- biz. hrs, after hrs and holidays •Training Sessions (at your office or on-site) •Business Consulting•Self-help FAQ’s & Troubleshooting •Offsite Data Backup •PCI Compliance Monitoring •Loaner Equipment •Equipment Warranty Handling


• Maintenance Incentives

•Reduced Support Rates •Software Maintenance (installing patches as required) •Regular Preventive Maintenance Visits •Free Software Upgrades (SUP- more on this later) •Software Discounts (add on modules) •Special Consumable Pricing

Subscription Upgrade Plan



All RM Software Version UpgradesLow Monthly Price


• $10 month / First Station• $5 month / Additional Station• $3 month / Handheld License


•3 Stations = $20 / Month ($240/yr)

•Annual Software Support $695 - $995

Upgrade Promotion

END OF YEAR UPGRADE PROMOTION

Upgrade Promotion

Upgrade Before Jan 31

1 Free Module + 1 of the following

• 1 Skip Charge Waived ($300 value) • 25% Reseller Cost Discount• 50% Reseller Cost Discount / SUP

Upgrade Promotion

3 POS v14Upgrade to v17: $ 1,200.00Module: $ 400.00

$ 1,600.00

With SUP: $ 600.00 Without SUP: $ 900.00

Upgrade Promotion

FREE MODULE IS YOUR’S

TO USE AS LEVERAGE



•Sample Contracts

•Communications Tools

•Billing Tools

•CRM – Help Desk Software


•Sample ContractsAvailable on Dealer Services


Key Contract Specifics

•The Scope Of Coverage

•Specific Services Provided

•Exclusions

•Hours / Days of Coverage

•Customer Responsibilities

•Definitions of Maintenance Terms


Customer Responsibilities

•Use a ‘Checklist’ before they call

•Basic cleaning

•Authorized callers


•Communication

AccessLine SmartNumber (accessline.biz)

Call Forwarding Service


•Communication



Eliminate Expensive Live Answ. Svcs


•Communication



Eliminate Expensive Live Answ. Svcs

Toll-Free Number

Simple Web Interface


•Communication


Schedule 1: Tom, Jerry, Bob, JaySchedule 2: Jerry, Bob, Jay, TomSchedule 3: Bob, Jay, Tom, JerrySchedule 4: Jay, Tom, Jerry, Bob


•Communication


Clients get ‘Direct Connection’ butPersonal Phone Numbers Protected

$9.95 - $19.95 / month


•Billing and CRM Tools

Wide Range of Products

From Free up to Professional


Intuit Billing ManagerFree - Web Based InvoicingAccept Credit CardsRecurring BillingIphone Mgmt App Iphone CreditCards


Other Free and Low-Cost ProductsFreeCRM.com - (CRM)ZohoCRM zoho.com - (CRM)CitrusDB - (CRM)Quickbooks - (Accounting)SysAid Free – (Help Desk)


Manage Recurring PaymentsPCCharge Pro – (Schedule automatic credit card charges for monthly or other periodic billing)

Mercury Payment - (ACH Direct Payment Processing)


Professional CRM Software •Service Reminders•Help Desk / Ticket Tracking•Inventory and Asset Management•Quotes and PO’s•Project Management•Contract Management and Billing


Professional Software •TigerPaw•Service CEO•Karisoft•Eclipse


Best Practices•Preventive Maintenance•Proactive Calls•Update Contact Info•Call OR Visit Confirm Satisfaction

GOAL100% Of ClientsOn Maintenance

Documents

SO WHAT’S THE BIG DEAL ABOUT MAINTENANCE? The Importance of Maintenance Agreements in a Successful Dealership