RMR Service Plan Success Story… in Plumbing!
San Diego HVAC/plumbing company charges $20/month VIP Advantage Membership program for clients. Why can’t you?
Are the sophisticated electronics and entertainment systems integrators install more complex than your home plumbing? You bet they are.
So it is eye-opening to see an HVAC and plumbing company earning recurring monthly revenue (RMR) with an established service program for what might be the epitome of a “break-and-fix” business… home plumbing. This is while many integrators are still reticent to ask clients for monthly service fees to maintain and secure their home networks, security systems, audio, video, and control systems.
Indeed, sometimes it is best to look outside the custom electronics industry for validation. That just might be the case for integrators examining the possibility of creating monthly service programs for their clients. They need look no further than Anderson Plumbing Heating and Air in San Diego.
The company, established in 1978, has instituted its VIP Advantage Membership programs for both HVAC and plumbing. Clients pay $19.90 per month or $238.80 per year for an Annual Plumbing, Heating & Air Conditioning Membership, or $15.25 per month/$183 per year for a more simpler Annual Plumbing & Heating Membership.
For the fee, Anderson touts on its website that members receive:
- "Safety and peace of mind through annual tune-ups and inspections – You can count on your plumbing, heating and air conditioning when you need them most.
- Savings – 15 percent discount off every plumbing, heating or air conditioning service/repair, every day (excludes replacements or installs).
- No emergency service fees – Call us anytime, day or night.
- Priority Service – Jump to the front of the line! As a VIP Service Member, your call is scheduled ahead of others, for routine and emergency calls.
- Transferable – Your VIP Service Plan can be transferred to your new home or to the buyer of the home you sell."
“It’s such a busy world out there and we are all so caught up in trying to manage our homes, our families, education, work… and that’s why we came up with the Anderson VIP Advantage Membership,” says Mary Jean Anderson, president of the company in a video on the website. (The company has quite a vibrant YouTube channel also with customer testimonials, staff recruitment videos and even instructional videos done with hilarity [see "Aerator Man"])
“Usually people don’t call us until they are already having an emergency,” says Megan Morris, a home comfort advisor for the company, in the video.
“So we call you when it is time for your maintenance. We come out and check the plumbing. We check the furnace and air conditioner to make sure that we are staying on top of any problems that are coming down the line. And we catch little problems before they become big, expensive problems.”
So as integrators grapple with the idea of garnering recurring monthly revenue (RMR) from their clients for their complex, sophisticated electronics, they might take a hint from Anderson Plumbing, Heating and Air in San Diego.
2019 State of the Industry Special Report - CE Pro Download
The custom electronics industry saw a healthy 8 percent growth rate in 2018, down slightly from the blazing 11 percent growth in 2017 but still admiringly strong. Our 2019 State of the Industry indicates that readers expect to see even more growth in 2019. Get your copy today.
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at firstname.lastname@example.org
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