The Maintenance Plan Playbook: Recurring Revenue for Service Businesses

Every service business owner I know complains about the same thing: "It's feast or famine."

One month, phones ring off the hook and you can't keep up. Next month, crickets. You're scrambling to find work for your techs and wondering how you'll make payroll.

There's a solution that smooths this out: maintenance plans.

Done right, maintenance plans create predictable, recurring revenue that fills your slow months and builds customer loyalty. Done wrong, they're a money pit that locks you into unprofitable work.

Here's how to do them right.

Why Maintenance Plans Matter

For Your Business

Predictable revenue: Each plan is scheduled work you control. You know in January exactly how many tune-ups you'll do in February.

Higher lifetime value: Maintenance customers spend 2-3x more than one-time customers. They call you first for repairs, trust your recommendations, and refer friends.

Slow season filler: Schedule maintenance during slow periods. Instead of scrambling for work in January, you're busy with planned tune-ups.

Competitive moat: Competitors can't steal customers who are already on a plan with you.

For Your Customers

Peace of mind: They don't have to think about maintenance. It's handled.

Priority service: When something breaks, they go to the front of the line.

Discounts on repairs: Makes the plan feel valuable.

Extended equipment life: Maintained equipment lasts longer.

Building Your Maintenance Plan

What to Include

HVAC maintenance plan example:

Basic tier ($15-20/month or $150-200/year): - Two tune-ups per year (AC in spring, heating in fall) - 10-15% discount on repairs - Priority scheduling - No overtime charges

Premium tier ($25-35/month or $250-350/year): - Everything in basic - Indoor air quality check - Duct inspection - 20% discount on repairs - Free diagnostic calls - No trip charges

Plumbing maintenance plan example:

Basic tier ($12-18/month or $120-180/year): - Annual whole-house plumbing inspection - Water heater flush - 10% discount on repairs - Priority scheduling

Premium tier ($20-30/month or $200-300/year): - Everything in basic - Drain cleaning included - Water quality testing - 15-20% discount on repairs - Free camera inspection

Pricing Strategy

The math has to work.

Calculate your fully-loaded cost for each service included: - Tech time (including drive time) - Vehicle costs - Materials/supplies - Overhead allocation

Then add your profit margin.

Example calculation: - AC tune-up cost: $65 - Heating tune-up cost: $60 - Admin costs: $15 - Total cost: $140 - Target margin: 30% - Price: $182/year (~$15/month)

Don't underprice. A common mistake is pricing maintenance plans as loss leaders, hoping to make it up on repairs. This backfires because you end up with customers who only use the plan benefits and never buy repairs.

Pricing Psychology

Annual vs. monthly:

Monthly feels smaller: "$15/month" sounds cheap. Annual saves you payment processing and increases commitment.

Offer both: Annual with a small discount (e.g., $150/year instead of $180 if paid monthly).

Naming matters:

• "Maintenance Plan" (basic, descriptive)
• "Comfort Club" (HVAC-friendly)
• "Priority Service Plan" (emphasizes benefit)
• "Home Care Program" (broader scope)

Pick something that sounds valuable, not bureaucratic.

Selling Maintenance Plans

When to Offer

Best time #1: After a repair

"While I'm here, I want to mention our maintenance plan. Since you just paid $400 for this repair, the plan would have caught this issue early. Probably would have been a $150 fix instead. And you'd get 15% off the repair, which would have saved you $60 today alone."

Best time #2: During installation

New equipment customers are perfect candidates. Include the first year free with major installations, then convert them to paid plans.

Best time #3: After seasonal tune-ups

Customer just paid $150 for an AC tune-up. Show them the plan math: "For about the same price, you'd get two tune-ups plus discounts on any repairs."

How to Sell

Don't be pushy. Present it as a helpful option, not a hard sell.

Focus on their problem: - "I noticed you've had a few repairs this year..." - "Your system is getting older, and maintenance will help it last longer..." - "You mentioned hating to deal with this stuff..."

Use specific math: - "Last year you spent $340 on two repairs. With the plan, that would have been $280." - "The plan is $180/year. The tune-up alone is $150. So you're getting the second tune-up and all the discounts for $30 more."

Offer easy enrollment: - "I can sign you up right now, takes 30 seconds" - "We'll charge the card on file and schedule your next visit before I leave"

Conversion Targets

Realistic targets for different scenarios:

• Post-repair: 15-25% conversion
• Post-installation: 60-80% conversion (should be nearly automatic)
• Post-tune-up: 10-20% conversion
• Proactive outreach to past customers: 5-10% conversion

If you're below these numbers, work on your pitch and timing.

Managing the Program

Scheduling

The whole point of maintenance plans is predictable work. Use them strategically:

Schedule during slow periods: - January/February: Heating tune-ups and inspections - October/November: AC tune-ups and winterization

Avoid peak seasons: - Don't schedule maintenance when you're slammed with emergency calls - Customers understand seasonal scheduling, so communicate it clearly

Automate scheduling: - Send reminders 2-3 weeks before scheduled service - Offer online scheduling - Follow up if they don't respond

Renewal Strategy

Auto-renewal is essential. If customers have to actively renew, many won't (even if they intend to).

60-90 days before renewal: - Send email reminder with plan benefits recap - Include repair savings they received this year - Note any rate changes

At renewal: - Process payment automatically - Send confirmation with next service date - Thank them for their loyalty

If payment fails: - Contact within 48 hours - Offer to update payment method - Don't let them lapse without conversation

Retention Targets

Good programs retain 75-85% of members annually.

Below 70%: Something is wrong. Survey lost customers.

Above 85%: You're doing great. Ask for referrals.

Growing the Program

Acquisition Channels

In-person (highest conversion): - Tech upsell after service - Follow-up calls after repairs - Walk-ins/phone inquiries

Email campaigns: - Past customers not on plans - Seasonal promotions (pre-summer AC plans) - "Renew early" discounts for expiring plans

Website: - Dedicated landing page explaining benefits - Easy online sign-up - FAQ addressing common objections

Direct mail: - Works especially well for older homeowners - Include specific savings examples - Clear call-to-action

Promotions That Work

First-month free: Low commitment, easy to try.

Annual prepay discount: Saves you billing costs, increases commitment.

Referral bonus: Give existing members a free month for referrals.

Bundle with installation: Include 1-2 years free with new equipment.

Seasonal signup specials: "Join before summer and get your AC tune-up this week."

What Doesn't Work

Heavy discounting: Attracts price-sensitive customers who will leave at first rate increase.

Complex tier structures: Keep it simple. 2-3 tiers maximum.

Too many exclusions: If customers feel nickel-and-dimed, they'll leave.

Financial Management

Revenue Recognition

Maintenance plan revenue should be recognized over the service period, not when collected.

If someone pays $180 for an annual plan in January: - Recognize $15/month in revenue - Actual tune-ups have their costs recorded when performed

This gives you accurate monthly P&L and prevents counting all the revenue when you haven't done the work yet.

Tracking Metrics

Customer count: How many active plans?

Monthly recurring revenue (MRR): Plans × average monthly value.

Retention rate: Plans renewed / plans up for renewal.

Cost to service: Actual costs vs. plan revenue.

Upsell revenue: Additional repairs and equipment sales to plan members.

Profitability Analysis

Review annually: - Are plans profitable on their own? - What's the true all-in cost per plan? - How much additional revenue do plan members generate?

Some plans may lose money on pure service delivery but are wildly profitable when you include the additional repairs and equipment those customers buy.

Common Mistakes

Mistake 1: Giving Away Too Much

It's tempting to make plans "irresistible" by including everything.

Result: You lose money on every plan and attract customers who use all the benefits without buying anything else.

Include valuable but cost-effective benefits. Generous discounts on repairs (which you profit from) are better than free services (which cost you money).

Mistake 2: Weak Follow-Through

Selling plans is easy compared to delivering consistently.

If you sell a plan and then the customer can't get scheduled, or their tune-up is rushed, or they don't feel prioritized, they won't renew.

Make delivery as good as the pitch.

Mistake 3: Not Tracking Economics

"We have 200 maintenance plans" sounds great. But if each plan costs you $180 to service and brings in $150, you have 200 problems.

Know your numbers. Adjust pricing and inclusions based on actual costs.

Mistake 4: Complicated Plans

If your techs can't explain the plan in 30 seconds, it's too complicated.

If your office staff needs a reference guide to answer basic questions, simplify.

If customers ask "what does this include" repeatedly, make it clearer.

Mistake 5: Ignoring Plan Customers

Plan members are your best customers. They deserve extra attention: - Periodic check-ins - Holiday cards - Exclusive offers - Referral program - Priority scheduling (for real, not just on paper)

Treat them like VIPs. They'll stay longer and refer more.

Ready to build a maintenance plan program that fills your slow months? [Let's design a plan](/contact) that works for your business and your customers.