Why a Subscription Based Service Business part two episode 140

 

Why a Subscription Based Service Business part two episode 140

Last week we talked about traditional business and the mindset

If you are keeping in touch with your customers on a regular basis it’s much easier to start a subscription based services business, service contracts, maintenance programs. Anew profit center

To add to your existing business

So really if it works for Netflix if it works for AT&T it works Verizon QuickBooks on line it works for Amazon your crm company the list goes on and on

Then why not for your service business or my service but I do have it apart of my services , so let's talk about your service business

Again why not your service business why not create another profit center for your businesse you know create another monthly revenue stream.

 

I'm sure that you realize by now that the no matter how long you've been in business that each month you start over again at zero.

So that means more new sales which is OK but why not cut your stress level

What if each and every month you could know for fact there was money being deposited into your account to the extent of I don't know could be 10, 20, 30% of your monthly expenses

You know that it's there same time every month like clockwork wow just think of it limiting your stress.

That's money in the bank each and every month being deposited,

If you had a portion of your customers on a service agreement or maintenance program and preventative maintenance program it's all up to you could have this happening each and every month and  that money would be deposited into your account every month repeatedly.

 If you were to know it’s going to happen would that make you a happier camper

Like I said just few minutes  go look at your business and think about the ways you could add a profit center for  it could be service or maintenance agreements or preventative maintenance agreements it that the list is endless.

It could be simple or you could be elaborate depending on what you want to do and how you want to handle it

So let’s look at why you might consider having a program like this working for you in your business.

1. As a business owner you have something new to sell your existing clients or customers you know them they love you they trust you ve done business with you before and so the likely do business with you some more.
2. For you the business owner becomes dependable repeatable income that gets deposited into your bank on a regular basis weather you do it monthly or quarterly or every six months it all the depends on you.

Personally I missed the boat when I started this and did yearly agreements but all the new stuff now is we're working on monthly and quarterly payments.

Now let's talk but the customer and why would the customer ever think about  purchasing a maintenance agreement or service agreement so let's take a look at that for minute

               

If you've done a great job of presenting your customers of value-based proposition from the services or whatever you sell from your company and this is going to be an easy transition for you to do however if you are a price based business then it can be done but it's going to be done at a greater cost of time and persistence to your customers why because there are two different mind sets

 

So let's put you in a the seat of the  customer see right now think about the last time you decided that you needed something done and you call someone or you try to call someone and couldn't get a hold of him or you did get a hold of him and he didn't call you back.

Or they made an appointment and they never showed up and gave  you some lame excuse don't you just hate calling people to get things done as a consumer .

 I know that all this is happened to you and that's why you hate all people and you put it off and put it up as much as you can until your wife or are you just of get down to the wire and say I need to get it done now so at that point. You are no longer in a consumer that has a want you're a consumer that has a need that need is to have a problem solved. Ultimately its solving a problem is what you get paid for.

 

We have automation, we have auto ship on products why not auto service

So I become a problem solver that's why if you have the proper customer base and  you approach them correctly they will go for it and you can put together subscription-based business service project in maintenance agreement.

So that's it for today next up so we can talk about what can look  like of of course each business is going to be different so I'll try to go to a couple different ones and then I ll talk  about simple and elaborate.

 About my service agreement and what we did in how we increase one of our clients lifetime value by over 400 hundred percent

And the reason why they were willing to spend that 400% over the years