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SO WHAT’S THE BIG DEAL ABOUT MAINTENANCE?
The Importance of Maintenance Agreements in a Successful Dealership
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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!)
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Reseller RevenueSources Comparison
•Reseller 1•Reseller 2•Reseller 3•Reseller 4
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Reseller RevenueSources Comparison
Reseller 1 Revenue Sources
65%
14%
12%
9%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
21%
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Reseller RevenueSources Comparison
Reseller 1 Revenue Sources
65%
14%
12%
9%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
21%
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Reseller RevenueSources Comparison
Reseller 1 Revenue Sources
65%
14%
12%
9%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
Reseller 2 Revenue Sources
76%
6%
15%3%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
21% Recurring Revenue
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Reseller RevenueSources Comparison
Reseller 1 Revenue Sources
65%
14%
12%
9%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
Reseller 2 Revenue Sources
76%
6%
15%3%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
21% Recurring Revenue 18% Recurring Revenue
Reseller 3Revenue Sources
87%
9%0%
4%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
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Reseller RevenueSources Comparison
Reseller 1 Revenue Sources
65%
14%
12%
9%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
Reseller 2 Revenue Sources
76%
6%
15%3%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
21% Recurring Revenue 18% Recurring RevenueReseller 3
Revenue Sources
87%
9%0%
4%
POS System Sales
Fee for Service
Service Contracts
Credit Card Residuals
4% Recurring Revenue
0% Recurring Revenue
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Strategy For Boosting Maintenance Revenue
Recognize the Value of Your Services
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Strategy For Boosting Maintenance Revenue
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
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What does this mean to your business? ?
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Real Profitability
Total Annual Rev: $570,000 21% Recurring Rev: $ 120,000 Profit on Recurring Rev: 66%
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Real Profitability
Total Annual Rev: $570,000 21% Recurring Rev: $ 120,000 Profit on Recurring Rev: 66%
Profit Margin on New Sales vs Profit on Recurring IncomeLower System Prices Lower Hardware Cost / Better
Dependability
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Real Profitability
Total Annual Rev: $570,000 21% Recurring Rev: $ 120,000 Profit on Recurring Rev: 66%
Recurring Revenue Profit: $79,200 (60 clients)
Recurring Profit Per Customer: $1,320
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Step 1. Recognize your value
Your Services
Are Valuable
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Step 1. Recognize your value
• Give your clients a choice
•Less than $3 a day
•Tel. & Remote Support
•Discounts on other parts & labor
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Step 1. Recognize your value
• Give your clients a choice
•Less than $3 a day
•Tel. & Remote Support
•Discounts on other parts & labor
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Step 1. Recognize Your Value
•The service you provide to keep MISSION CRITICAL POS Systems running smoothly is crucial to your clients…
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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 !
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COSTSStep 2. Acknowledge The Costs
• MAINTAINING A SERVICE STRUCTURE
Phone Systems, Answering Services, Pagers, Mobile Phones & Blackberries
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COSTSStep 2. Acknowledge The Costs
• COSTS OF MAINTAINING A SERVICE STRUCTURE
Phone Systems, Answering Services, Pagers, Mobile Phones & Blackberries
Technicians and Other Office Staff
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COSTSStep 2. Acknowledge The Costs
• COSTS OF MAINTAINING A SERVICE STRUCTURE
Phone Systems, Answering Services, Pagers, Mobile Phones & Blackberries
Technicians and Other Office StaffYears of Training, Continued Education (PCI)
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COSTSStep 2. Acknowledge The Costs
• COSTS OF MAINTAINING A SERVICE STRUCTURE
Phone Systems, Answering Services, Pagers, Mobile Phones & Blackberries
Technicians and Other Office StaffYears of Training, Continued EducationMaintaining an Inventory of Equipment
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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
$
$
$
$
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Step 3. Sell It From The Start
Service Contracts as Part of Your Sales Process
Sell It From The Start
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Step 3. Sell It From The Start
“I’m afraid to bring it upbecause my competition doesn’t!”
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Step 3. Sell It From The Start
“I’m afraid to bring it upbecause my competition doesn’t!”
Irresponsible Careless Unprofessional
•Discuss maintenance from the start
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Step 3. Sell It From The Start
“I’m afraid to bring it upbecause my competition doesn’t!”
•Discuss maintenance from the start
•Use it as a differentiator
Irresponsible Careless Unprofessional
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Step 3. Sell It From The Start
“I’m afraid to bring it upbecause my competition doesn’t!”
•Discuss maintenance from the start
•Use it as a positive differentiator
•Be a ‘Consultant’ with a long term, not shortsighted, approach to the relationship
Irresponsible Careless Unprofessional
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Step 3. Sell It From The Start
“I’m afraid to bring it upbecause my competition doesn’t!”
•Discuss maintenance from the start
•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
Irresponsible Careless Unprofessional
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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)
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Procedures
Ok. I’m in... Now What??
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Procedures
•Establish a clear timeline for when Initial Support expires and Maintenance Coverage begins
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Procedures
•Establish a clear timeline for when Initial Support expires and Maintenance Coverage begins
•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”
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Procedures
•Establish a clear timeline for when Initial Support expires and Maintenance Coverage begins
•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
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Procedures
•Establish a clear timeline for when Initial Support expires and Maintenance Coverage begins
•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’
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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
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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.
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Procedures
Don’t Be Afraid Of Your Customers•Enforce your policies
•Charge for ALL Service
•Earn their respect
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Existing Client Procedures
What can I do about my existing
customer base??
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Existing Client Procedures
Mine the gold you already own
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Existing Client Procedures
• 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
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Existing Client Procedures
• 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
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Existing Client Procedures
• Send Letter To Clients• Explain The Coverage Options•
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Existing Client Procedures
• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits
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Existing Client Procedures
• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits• List The Payment Options
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Existing Client Procedures
• Send Letter To Clients• Explain The Coverage Options• Specifically State Services and Benefits• Explain The Payment Options• Provide Existing Contract Client References
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Existing Client Procedures
• 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
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Existing Client Procedures
• 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.
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Existing Client Procedures
• Follow Up !• Create a task in your company specifically
for the purpose of acquiring maintenance contracts
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Existing Client Procedures
• 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)
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Existing Client Procedures
• Consider Commission-Based Collections
• Provide Incentives for Collecting AND Servicing the Account
• Get the technicians invested!• Share the love ~ $$$
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Recap
• Revenue, Stability, Higher Profits
• Your Value
• Maintenance in the Sales Cycle
• Getting All Clients On Maintenance
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Designing Maintenance Contracts
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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
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Designing Maintenance Contracts
• 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
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Subscription Upgrade Plan
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Subscription Upgrade Plan
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Subscription Upgrade Plan
All RM Software Version UpgradesLow Monthly Price
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Subscription Upgrade Plan
• $10 month / First Station• $5 month / Additional Station• $3 month / Handheld License
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Subscription Upgrade Plan
•3 Stations = $20 / Month ($240/yr)
•Annual Software Support $695 - $995
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Upgrade Promotion
END OF YEAR UPGRADE PROMOTION
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Upgrade Promotion
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1 Free Module + 1 of the following
• 1 Skip Charge Waived ($300 value) • 25% Reseller Cost Discount• 50% Reseller Cost Discount / SUP
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3 POS v14Upgrade to v17: $ 1,200.00Module: $ 400.00
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Strategy For Boosting Maintenance Revenue
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Administering Maintenance Agreements
•Sample Contracts
•Communications Tools
•Billing Tools
•CRM – Help Desk Software
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Administering Maintenance Agreements
•Sample ContractsAvailable on Dealer Services
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Administering Maintenance Agreements
Key Contract Specifics
•The Scope Of Coverage
•Specific Services Provided
•Exclusions
•Hours / Days of Coverage
•Customer Responsibilities
•Definitions of Maintenance Terms
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Administering Maintenance Agreements
Customer Responsibilities
•Use a ‘Checklist’ before they call
•Basic cleaning
•Authorized callers
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Administering Maintenance Agreements
•Communication
AccessLine SmartNumber (accessline.biz)
Call Forwarding Service
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Administering Maintenance Agreements
•Communication
AccessLine SmartNumber (accessline.biz)
Call Forwarding Service
Eliminate Expensive Live Answ. Svcs
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Administering Maintenance Agreements
•Communication
AccessLine SmartNumber (accessline.biz)
Call Forwarding Service
Eliminate Expensive Live Answ. Svcs
Toll-Free Number
Simple Web Interface
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Administering Maintenance Agreements
•Communication
AccessLine SmartNumber (accessline.biz)
Schedule 1: Tom, Jerry, Bob, JaySchedule 2: Jerry, Bob, Jay, TomSchedule 3: Bob, Jay, Tom, JerrySchedule 4: Jay, Tom, Jerry, Bob
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Administering Maintenance Agreements
•Communication
AccessLine SmartNumber (accessline.biz)
Clients get ‘Direct Connection’ butPersonal Phone Numbers Protected
$9.95 - $19.95 / month
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Administering Maintenance Agreements
•Billing and CRM Tools
Wide Range of Products
From Free up to Professional
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Administering Maintenance Agreements
Intuit Billing ManagerFree - Web Based InvoicingAccept Credit CardsRecurring BillingIphone Mgmt App Iphone CreditCards
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Administering Maintenance Agreements
Other Free and Low-Cost ProductsFreeCRM.com - (CRM)ZohoCRM zoho.com - (CRM)CitrusDB - (CRM)Quickbooks - (Accounting)SysAid Free – (Help Desk)
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Administering Maintenance Agreements
Manage Recurring PaymentsPCCharge Pro – (Schedule automatic credit card charges for monthly or other periodic billing)
Mercury Payment - (ACH Direct Payment Processing)
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Administering Maintenance Agreements
Professional CRM Software •Service Reminders•Help Desk / Ticket Tracking•Inventory and Asset Management•Quotes and PO’s•Project Management•Contract Management and Billing
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Administering Maintenance Agreements
Professional Software •TigerPaw•Service CEO•Karisoft•Eclipse
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Administering Maintenance Agreements
Best Practices•Preventive Maintenance•Proactive Calls•Update Contact Info•Call OR Visit Confirm Satisfaction
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GOAL100% Of ClientsOn Maintenance