Service Agreements, Part 2: How to Structure a Good Irrigation Service Agreement

In the first installment of this three-part series, Hunter Headlines posed the question: "Should Your Company Offer Irrigation Service Agreements?" The ultimate answer will be up to each individual company, but when you pause to consider all the benefits they offer, a strong case can be made for making them a regular part of your operation. Here are just some of the advantages service agreements can provide:

• Helps in scheduling workload during busy spring and fall seasons
• Simplifies life for the customer
• Improves your cash flow
• Increases the value of your business
• Source of steady income during slow periods
• Can help you "sell" your company over less qualified companies

If you’ve decided that offering service agreements sounds like a winner, the next step is to determine how to put a good one together.

Second in a Three Part Series

So, what should you include in an irrigation service agreement that will make it attractive to your customers?

A good place to begin is with regular servicing events that need to be performed, like clockwork, on an annual basis. In many markets, this would mean a system start-up in the spring with walk-through, adjustments, controller programming and basic maintenance all covered. In these same markets that would also include a fall winterization. As a prep for the winter months this would include a blow-out of the system as well as any pump removals. Winterization of any weather sensors should be included, too.Of course, not all regions of the country deal with extreme climate conditions. In most parts of the West and the South, a winterization would probably be replaced by a simple shut-down or fall controller programming (to accommodate the seasonal change is temperature and daylight hours).

Depending upon where you operate your business, in some cases, a summer check-up and controller reprogramming may be something to consider. Areas with excessive heat or with frequent thunderstorms are good candidates for a check-up.

Reduced Costs for Labor and Parts

A primary ingredient of a service agreement that is sure to make it appealing to your customers is a built-in discount program for any non-covered services. In essence, anyone who takes out a service contract with you would receive reduced costs on labor and/or materials for any service that is not covered by the basic agreement.

As one of your “preferred” customers, any homeowner under agreement should also receive priority scheduling. Their in-season service needs should take precedence over either a first-time or less frequent customer. By being under contract to you, these people have demonstrated their long-term commitment to you. One of their rewards should be that you take care of their needs ahead of those who have not entered into such a business relationship.

Encourage System Add-ons

With the long-term relationship that a service agreement implies, you may be able to use the contract as a platform for obtaining additional work down the line. System add-ons of accessories or upgrades to newer and better equipment are ideal ways to accomplish this.

Provide your customers with an attractive option to add “monitoring” capability through a central-control system. The Hunter Irrigation Management and Monitoring System™ (IMMS™) will be introduced later this year. Consider writing into your service agreement how they can take advantage of on-line monitoring service.

You can also include options to add such system upgrade products as a remote control or a weather sensor. For example, a rain sensor like the Hunter Mini-Clik® or Rain-Clik™ can be easily added to the system at the time of start-up.

What Should a Good Irrigation Service Agreement Contain?

• System start-up in the spring
• Fall winterization with blow-out
• In some cases: summer check-up, controller reprogramming
• Built-in discounts for non-covered services
• Priority scheduling
• Option to add monitoring capability
• Option to add a rain sensor