08.04.2008 — A proactive service agreement is one in which the dealer is offering regularly scheduled contact with the customer.

"It's not reactive," advises Kayye. "It's continuous personal contact. It's way beyond an extended warranty."

The customer is guaranteed not only quick system repairs, but also regular service intervals. Ideally, the dealer comes to the home on a quarterly basis.

Among the potential areas covered in a proactive service agreement are:

• Cleaning and dusting of the equipment (on a quarterly basis).
• Video and audio calibration.
• Complete operational review of the touchpanels, remotes and/or keypads in the system.
• A general installation inspection.
• Free software upgrades.
• Proactively checking bulb life on TVs.

In and above those services, the agreement also offers:

• Assured product performance throughout the term of the plan.
• Unlimited (or limited) service with no deductibles (some dealers sell "limited" service agreements in which the homeowner "buys" a certain number of "service hours" as part of the plan -- once the customer exceeds that number of hours, he is then charged for time and materials).
• Coverage against electrical surges.
• Free DLP bulb replacement for rear-projection sets.
• Customers support 24/7, 365.
• Protection against lemons
• Product replacement if deemed irreparable.

		How to Sell Proactive Service Agreements Reducing your installation labor warranties and offering sales commissions on renewals can lead to 70% margins on service contracts. What is Proactive Service? The customer is guaranteed not only quick system repairs, but also regular service intervals. Why Aren’t Integrators Selling Service Agreements? More than half of integrators do not even try to sell service agreements, according to CE Pro research. Who Buys Service Agreements? Gary Kayye of Kayye Consulting breaks down potential buyers into five groups.
Integrators are recognizing that they can build "clients for life" with service agreements rather than continuing to look at customers as one-time sales opportunities.