Service contracts are designed to benefit both the customer and the business. For the customer, the main advantage is peace of mind. They are getting two visits per year—one before the hot season and one before the cold season—to ensure their system is running efficiently, safely, and reliably. During the winter visit, we focus on safety checks, like monitoring for carbon monoxide, gas leaks, and other potential hazards. For the summer visit, it’s more about tuning up the mechanical components, cleaning, and ensuring the system is ready to handle the heat. For example, making sure the system's refrigerant is within range and all the mechanics function to run at full speed. A well-maintained system can last longer in the summer and save customers money by preventing higher electricity bills caused by dirty condenser coils or clogged filters. From the business perspective, service contracts aren't necessarily profitable upfront— they're $150 per year, which breaks down to about $75 per visit. At first glance there is no real benefit for the business, as we are losing money off the $150 but the value comes in by building long-term relationships with customers. When people trust you, they’re more likely to come back for major repairs or system replacements. That’s why we want to do the best that we can for each individual customer by providing efficient and safe work that benefits them in the long run. That’s how most service contracts are for all service companies like plumbing, HVAC, or electrical. Where our service contracts stand out is on top of the two visits customers get several other benefits, including a 15% percent discount only on repairs, as well as 3-5% for equipment replacement. Depending on the scope of the work, they might save even more. Our contract customers also get priority scheduling during high-demand seasons, so if we’re booked out for days, we’ll make room for them because they’ve shown loyalty to us. Typically, regular customers will incur an after-hours fee if they call any time after 8 PM or on weekends. Whereas our service contract customers have no after-hours fees for emergencies, whether it’s late at night or on weekends. Ultimately, the service contract is about giving customers more value. It’s an investment in trust, ensuring they think of us first for any HVAC needs. For us, the long-term customer relationships far outweigh the short-term costs.
There’s a big difference—almost a gap—between how large companies operate in our industry compared to smaller businesses like mine. Most of the big companies only worry about sales, not customer care. In many cases, they don’t give the customers real options but instead push products or services without considering what’s best for them. For us, it’s all about providing options. We always try to put ourselves in the shoes of our customers and treat them as we would want to be treated. That principal shapes everything we do. Most consumers today are looking for someone they can trust, and trust is what our business is built on. Now, of course, pricing matters. There are always price-conscious customers who prioritize cost above all else, regardless of quality. But many homeowners want more—they want someone they can rely on, someone who prioritizes their needs over making a quick sale. The sad fact is, our industry has developed a reputation similar to other professions like dentistry or law, where trust can be an issue. It's mostly because of the way some of the larger companies work, focusing on upselling rather than genuinely solving problems. At Selective Air, we focus on being customer centric. We don’t come in with a sales pitch or a quota to meet. Instead, we focus on understanding what our customers need and offering real solutions. That is really the core of my brand: honesty, reliability, and treating people the way they deserve to be treated. One of the ways we deliver on this promise is through service contracts. These contracts are a key part of our business, helping customers maintain their systems efficiently. In the next blog we will explore what a Selective Air Contract looks like and what a typical maintenance call is.
