Selling PM Service Agreements: Overcoming Price

Salespeople, let me ask you an elementary question:

Why do FMs buy maintenance from a service contractor?

They understand that Preventative Maintenance has the potential of delivering on promises including: 

  • Reducing the costs associated with HVAC maintenance and operation
  • Freeing up time and headache by delegating/partnering with a competent service provider
  • Increasing HVAC uptime, especially in mission-critical environments (manufacturing, bio-pharma, food processing, healthcare, etc.)

The caveat: These promises only get delivered IF the service contractor actually delivers them and engages the customer to demonstrate the impact of their service that is often invisible. 

I’m sure if you are reading this you are one of the few that deliver phenomenal service, but sadly a large segment of our industry has chosen a different path.

So how did we get here? 

From my vantage point, it seems that a lot of “service” companies have taken the path of least resistance and will do almost anything to grab a service contract. They’re betting that the equipment repair and replacement work will be worth it. 

This has resulted in a race to the bottom on pricing, which has led to descoping of services, which has led to even poorer maintenance. 

So where are we now? 

For those FMs that buy based on an apples to apples scope and value, it’s business as usual.  

However there is a substantial number of FMs who are fed up with the risk of purchasing descoped, low priced PM agreements and are eager to explore new approaches that help mitigate risk.

If there is measurable ROI, they will invest.

So I gotta bet - Wouldn’t you guys love getting back to having fun selling truly valuable maintenance and be financially rewarded for it?

Get Cutting-Edge Mechanical Service Insights In Your Inbox

What If?

I want you to imagine something: 

What if your maintenance solution included one-minute interval performance data on critical HVAC equipment that enabled your Service Ops team to get early warnings of degradation and proactively prevent disruption?

Would this change the way you sell maintenance?
How do you think your mission-critical customers would perceive you?
Would this deliver the differentiation you need to compete? 
Do you think selling solution based service could be fun and financially rewarding?

The money shot (true differentiation) for service sales is:

  1. Actually delivering what FMs truly value
  2. Measuring it
  3. Documenting it

Not only will these 3 components to your maintenance solution earn you customers for life, they will also provide you with local case studies that can be used as powerful sales tools.

Concrete data-driven proof that you deliver on your promises trumps old-school standbys 100% of the time.

Let’s now look at where the mechanical service industry is heading:

Predictive Maintenance (PdM) delivered with IoT real-time HVAC monitoring.

  1. Deliver measurable benefits to your customers that they truly value
  2. Gain an unfair sales advantage and close more service agreements 
  3. Help create compelling ROI/Risk Analysis justification for equipment upgrades

FMs are eagerly looking for technology solutions to cure their equipment maintenance maladies.

According to a November 2022 survey conducted by BuildingEngines, 68% of Facility Managers are prioritizing building operations/equipment maintenance as they enhance their tech stack.

This is the linchpin to escaping the race to the bottom.

You Can Start Selling Predictive Maintenance Today

Sales leaders: The time to start integrating IoT monitoring technology into your maintenance solution is now. 

The service contractors who get smart and understand how this technology can be used to cater to the needs of high-value clients are going to start picking off the best opportunities and build a competitive moat in their local markets.

nClarity is designed to be implemented building by building with a small team, so you can introduce it into your Service Operations in a staged implementation without rocking the boat.

The process looks like this:

  1. Embed IoT monitoring in your accounts one at a time (starting with “friendlies” that have great community profiles)
  2. Identify low-hanging fruit to drive measurable benefits for the client (uptime, energy savings, etc)
  3. Build out a reference base in your market to prove the concept and build powerful case studies you can use to gain an unfair sales advantage

If you’re interested in learning more about how to sell Predictive Maintenance (PdM) with IoT real-time HVAC monitoring, you can schedule a call with our team here.

Learn how to start selling predictive maintenance