How to Sell Service Agreements October 12th, 2018 Welcome – we’ll be starting soon!

How to Sell Service Agreements October 12th, 2018

Assumptions You don’t have control over your plan. You have unique value included – not just parts and labor. 90-day labor guarantee following an install. Assumptions

How to Sell Service Agreements Approach Master Your Benefits Teach Look for Clues to Problems A Few Other Ideas

99% of Opportunities Oh yeah, here is our service agreement. For this fee, you’ll have peace of mind. What is this guy thinking? Why would I pay this?

99% of Opportunities Oh yeah, here is our service agreement. For this fee, you’ll have peace of mind. Let’s wait until next year … after the warranty period.

… and that’s assuming it was proposed at all.

Approach

POLL

How would most sales professionals approach that fight How would most sales professionals approach that fight? - Head on, going toe-to-toe with Foreman. - Strategically and methodically. - Live to fight another day and forfeit.

How would most sales professionals approach that fight How would most sales professionals approach that fight? - Head on, going toe-to-toe with Foreman. - Strategically and methodically. - Live to fight another day and forfeit.

Oh yeah, here is our service agreement Oh yeah, here is our service agreement. For this fee, you’ll have peace of mind.

Strategic Approach Master Your Benefits Teach Look for Clues

Strategic Approach Master Your Benefits Teach Look for Clues

Strategic Approach Master Your Benefits Teach Look for Clues

Strategic Approach Master Your Benefits Teach Look for Clues

Strategic Approach Mastered his benefits, and knew he couldn’t win in the traditional way. Stayed in process until it was time. Looked for clues – fatigue and errors.

Master Your Benefits

Benefits of Service Agreements Predictable and budgeted expense Guaranteed emergency response First priority in the queue Hassle-free Peak Performance of equipment Lower Total Cost of Ownership (TCO) Peace of mind Benefits of Service Agreements

POLL

When illustrating the benefits of our service agreements, what’s the most common mistake most sales people make?

When illustrating the benefits of our service agreements, what’s the most common mistake most sales people make? - Talking too much. - Bringing up price too late. - Selling it like an insurance policy. - Asking the wrong questions.

When illustrating the benefits of our service agreements, what’s the most common mistake most sales people make? - Talking too much. - Bringing up price too late. - Selling it like an insurance policy. - Asking the wrong questions.

Benefits of Service Agreements Predictable and budgeted expense Guaranteed emergency response First priority in the queue Hassle-free Peak Performance of equipment Lower Total Cost of Ownership (TCO) Peace of mind Benefits of Service Agreements

… and by the way.

Benefits of Service Agreements Predictable and budgeted expense Guaranteed emergency response First priority in the queue Hassle-free Peak Performance of equipment Lower Total Cost of Ownership (TCO) Peace of mind Benefits of Service Agreements

Benefits of Service Agreements Predictable and budgeted expense Guaranteed emergency response First priority in the queue Hassle-free Peak Performance of equipment Lower Total Cost of Ownership (TCO) Peace of mind Benefits of Service Agreements

Teach

How to Teach Highlight service agreement in every sales call – the earlier the better. Illustrate examples for each benefit to gain practical relevance. Visit Top 20 current clients to teach them about your “new” service plan.

Guaranteed Emergency Response Able to keep finance off the backs of my client because we eliminated surprises. Predictable Expense When a critical system fails or a major event is scheduled, this benefit has been a savior. Guaranteed Emergency Response For non-emergencies, it’s still nice to know that you’ll be at the top of the queue. First Priority in Queue No more having to deal with your internal process – just call us and we fix it. Hassle Free Since we provide proactive and preventive services, your investment will be optimized and will perform at the peak level throughout its life cycle. Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response Able to keep finance off the backs of my client because we eliminated surprises. Predictable Expense When a critical system fails or a major event is scheduled, this benefit has been a savior. Guaranteed Emergency Response For non-emergencies, it’s still nice to know that you’ll be at the top of the queue. First Priority in Queue No more having to deal with your internal process – just call us and we fix it. Hassle Free Since we provide proactive and preventive services, your investment will be optimized and will perform at the peak level throughout its life cycle. Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response Able to keep finance off the backs of my client because we eliminated surprises. Predictable Expense When a critical system fails or a major event is scheduled, this benefit has been a savior. Guaranteed Emergency Response For non-emergencies, it’s still nice to know that you’ll be at the top of the queue. First Priority in Queue No more having to deal with your internal process – just call us and we fix it. Hassle Free Since we provide proactive and preventive services, your investment will be optimized and will perform at the peak level throughout its life cycle. Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response Able to keep finance off the backs of my client because we eliminated surprises. Predictable Expense When a critical system fails or a major event is scheduled, this benefit has been a savior. Guaranteed Emergency Response For non-emergencies, it’s still nice to know that you’ll be at the top of the queue. First Priority in Queue No more having to deal with your internal process – just call us and we fix it. Hassle Free Since we provide proactive and preventive services, your investment will be optimized and will perform at the peak level throughout its life cycle. Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response Able to keep finance off the backs of my client because we eliminated surprises. Predictable Expense When a critical system fails or a major event is scheduled, this benefit has been a savior. Guaranteed Emergency Response For non-emergencies, it’s still nice to know that you’ll be at the top of the queue. First Priority in Queue No more having to deal with your internal process – just call us and we fix it. Hassle Free Since we provide proactive and preventive services, your investment will be optimized and will perform at the peak level throughout its life cycle. Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response Able to keep finance off the backs of my client because we eliminated surprises. Predictable Expense When a critical system fails or a major event is scheduled, this benefit has been a savior. Guaranteed Emergency Response For non-emergencies, it’s still nice to know that you’ll be at the top of the queue. First Priority in Queue No more having to deal with your internal process – just call us and we fix it. Hassle Free Since we provide proactive and preventive services, your investment will be optimized and will perform at the peak level throughout its life cycle. Peak Performance When all the unpredictable costs are eliminated and your downtime is minimized, the reduction in costs become dramatic. Lower TCO Peace of Mind

Guaranteed Emergency Response Able to keep finance off the backs of my client because we eliminated surprises. Predictable Expense When a critical system fails or a major event is scheduled, this benefit has been a savior. Guaranteed Emergency Response For non-emergencies, it’s still nice to know that you’ll be at the top of the queue. First Priority in Queue No more having to deal with your internal process – just call us and we fix it. Hassle Free Since we provide proactive and preventive services, your investment will be optimized and will perform at the peak level throughout its life cycle. Peak Performance When all the unpredictable costs are eliminated and your downtime is minimized, the reduction in costs become dramatic. Lower TCO Even for those risky souls out there, the peace of mind that comes with this plan is always a welcome benefit. Peace of Mind

How to Teach Highlight service agreement in every sales call – the earlier the better. Illustrate examples for each benefit to gain practical relevance. Visit Top 20 current clients to teach them about your service plan.

Look for Clues

Guaranteed Emergency Response Predictable Expense Guaranteed Emergency Response First Priority in Queue Hassle Free Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response High service invoice, complaints about finance, mention “OpEx” by security or facilities Predictable Expense Guaranteed Emergency Response First Priority in Queue Hassle Free Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response High service invoice, complaints about finance, mention “OpEx” by security or facilities Predictable Expense ROI comments of system, compliance requirements, disruption of ops Guaranteed Emergency Response First Priority in Queue Hassle Free Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response High service invoice, complaints about finance, mention “OpEx” by security or facilities Predictable Expense ROI comments of system, compliance requirements, disruption of ops Guaranteed Emergency Response Impatient, client is member of “clubs”, asks about response time First Priority in Queue Hassle Free Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response High service invoice, complaints about finance, mention “OpEx” by security or facilities Predictable Expense ROI comments of system, compliance requirements, disruption of ops Guaranteed Emergency Response Impatient, client is member of “clubs”, asks about response time First Priority in Queue Complaints about internal process, system been down a while Hassle Free Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response High service invoice, complaints about finance, mention “OpEx” by security or facilities Predictable Expense ROI comments of system, compliance requirements, disruption of ops Guaranteed Emergency Response Impatient, client is member of “clubs”, asks about response time First Priority in Queue Complaints about internal process, system been down a while Hassle Free Complaints about not having updated system, personal purchases on newest things Peak Performance Lower TCO Peace of Mind

Guaranteed Emergency Response High service invoice, complaints about finance, mention “OpEx” by security or facilities Predictable Expense ROI comments of system, compliance requirements, disruption of ops Guaranteed Emergency Response Impatient, client is member of “clubs”, asks about response time First Priority in Queue Complaints about internal process, system been down a while Hassle Free Complaints about not having updated system, personal purchases on newest things Peak Performance Mentions ROI or TCO, finance involved, outsourcing common, sophisticated business Lower TCO Peace of Mind

Guaranteed Emergency Response High service invoice, complaints about finance, mention “OpEx” by security or facilities Predictable Expense ROI comments of system, compliance requirements, disruption of ops Guaranteed Emergency Response Impatient, client is member of “clubs”, asks about response time First Priority in Queue Complaints about internal process, system been down a while Hassle Free Complaints about not having updated system, personal purchases on newest things. Peak Performance Mentions ROI or TCO, finance involved, outsourcing common, sophisticated business Lower TCO Uses this term, has service contracts on personal items, anxious mindset Peace of Mind

High service invoice, complaints about finance, mention “OpEx” Predictable Expense ROI comments of system, compliance requirements, disruption of ops Guaranteed Emergency Response Impatient, client is member of “clubs”, asks about response time First Priority in Queue Complaints about internal process, system been down a while Hassle Free Complaints about not having updated system, personal purchases on newest things Peak Performance Mentions ROI or TCO, finance involved, outsourcing common, sophisticated business Lower TCO Uses this term, has service contracts on personal items, anxious mindset Peace of Mind

What’s the easiest way to find these clues?

Perform weekly service audits

A Few More Ideas

A few more ideas

Do you want to increase your service agreement sales by 25% - 33% by just doing practically nothing?

A few more ideas Add to every proposal possible. Don’t think they’ll say “yes” in a year from now… they won’t. Be able to answer this question in your sleep: “Why should I do this now? All the equipment is under warranty for a while.”

Lesson Plan

Questions and Discussion Chris Peterson cpeterson@vectorfirm.com