Service Contracts

Vanderhoofven dkvander@clandjop.com
Fri, 16 Jan 1998 00:34:54 -0600


At 12:55 PM 12/17/97 -0600, you wrote:
>Hi There,
>
>I have been asked to provide a service contract to a local church for tuning
>and repairs.
>
>Does anyone have such a document? If so please email me with info! Thanks in
>advance, and Seasons Greetings!
>Regards,
>Don Rose

I know that this topic is a month old, but it died out while everyone was
busy with Christmas tunings.  I was hoping to reply then, but I think this
topic is a classic and worth reviving.

My goal is to have a steady customer base, hopefully with very nice pianos
that I can tune every 6 months or 3 months.  But it usually turns out that
I end up tuning for people every 9 months, or 1 year, or 2 years, because
they forgot to call, or something came up, etc.  If I can get a written
agreement with a customer to tune their piano on a regular basis, it will
bring in more steady income for me, and the customer will have their piano
well taken care of.  

It helps if I pre-schedule the customer appointments 6 months in advance,
while we are talking at the end of the tuning.  Then when 5 1/2 months
rolls around, I can send out a post card to remind them, and then call
about a week beforehand to make sure that the schedule is still okay.  Then
I try to call the night before as a reminder, to eliminate "no-shows".

The more customers I can sign up on an service contract, the busier I will
be and the more money I can make.  I am not working another part-time job
now, but I am not working full-time in customers houses either.  But if I
ask every customer to re-schedule in 6 months and also ask for three
referrals, I am confident I will be so busy that I will be able to start
picking the pianos I want to work on in a few years (Come on, let me dream
a little bit!).

The PTG Business Resource Manual has a section (for RPT's only) at the back
which has sample Invoices, and forms for inspecting and appraising pianos,
and a sample Piano Service Proposal which I have adapted to fit on my
letterhead.  Basically the piano service proposal is an agreement between
the piano technician and the piano owner.  It lists the piano (or pianos)
and also lists the agreed upon service schedule for each piano.  At the
bottom of the page is a place to put the price for each service call, and
an agreement about how much extra work you can do without asking permission
from the piano owner in case of a broken string, etc. (I always try to get
approval first anyway).  There is also some wording that says that the
price will be adjusted to the Consumer Price Index every ________ (you fill
in the blank, but you can put every 6 months or 12 months or however often
you want to review your price schedule).

The important thing is that you and the customer can both agree on what
will be done to the pianos, the frequency of service, and the fee.  And you
both need to sign it, and then give one copy to the customer.  The
agreement is self-renewing, and every year it will continue at the new
price unless they move away or you go out of business.  

I only have about 20 customers who have agreements with me like this.  I
wish I had 1000 of them!  There are a few caveats I could think of, perhaps
Newton will have some more when he returns!  (We miss you Newton!)

1.  Make sure and specify exactly what work you will be doing and for how
much.  If not you may find yourself doing much too much work for the
smallish amount you are being paid.  You might say $XX.XX each for two
tunings every January and July.
If you will be doing more work than just tuning, make sure and spell it out
and detail what you will be doing.  For example:  $XX.XX for each service
call, to include a tuning and an additional one hour of regulation and
voicing work. 
I am still pondering this myself and would welcome suggestions.

2.  Reminders:  If you start doing this, it is very important to keep track
of the customers, because even though you both know that you are going to
tune again in 6 months, if you don't remind them, they will forget,
contract or no contract.  Make sure and send a letter or postcard.

3.  Discounts:  I would prefer to not give any discounts, but I still have
customers that I started tuning for 5 years ago when I was just beginning,
and they still are paying a ridiculously low price.  Little by little, the
fee is getting higher, but it takes a while.  Of course discounts might
apply when there are lots of pianos in one location without much driving.
Also, I don't mind giving a discount to churches that have a full time
secretary, because then I can fit them into my schedule if someone else
cancels at the last momoent.

4.  Scheduling:  Ideally you could arrange it so that all of your customers
that are in the 1100 block of Main street all get scheduled the same day.
That way the driving would be minimized, and you could get more work done
in a day.  I still don't know how to do this!

5.  Hesitancy on the part of the customer:  While I am there, at the end of
the appointment, I explain the Piano Service Proposal to the customer, and
fill it out and sign it.  Then I ask them if they would like to do this,
and sometimes they say yes and sign.  But often they want to talk to their
spouse first, and so I leave both copies with them, and they can sign a
copy and return it after they decide.  If the customer doesn't sign when I
am there, however, there is little chance of them signing it, though.


But, there are some good benefits of setting up your customers on a service
agreeement.

1.  You can always know in advance how many customers you will be tuning
for the 2nd week of March, and that way you can plan your vacation at the
appropriate time.  I suppose one could eventually train their customers not
to call when you are sitting on the beach sipping margaritas!

2.  Steady income:  Hopefully you won't end up with 100 tunings in December
( I wish!) and 16 tunings in January.  If you can distribute your tunings
evenly throughout the year, there won't be as much stress from being too
busy, and then stress from not having enough work.  Of course, you can
always use slow times to catch up on shop work, etc.

3.  I would theorize that the customers who will do a service agreement
with you would be the ones who care about their pianos.  Those are the kind
of customers I want. The customers who have me tune every 9 years don't
really care about their pianos, and I will be happy to let them call me
when they feel like it and charge them the extra for the huge pitch raise.
But the ones who really take an interest in their pianos will appreciate
the regular service.  Eventually one could hope to be seeing more and more
of fine pianos every day and seeing less and less of Naugahyde Wurlitzers!

I am sure that others have ideas about this also.  I am sorry to write so
much about this, but I have been thinking about this for a month!  And if
anyone has an effective service agreement that includes tuning AND
regulation AND voicing, I would like to see the wording.

Sincerely,
David

David A. Vanderhoofven, RPT
Joplin, Missouri, USA        
e-mail:  dkvander@clandjop.com

web page:  http://www.clandjop.com/~dkvander/
#pianotech page:  http://www.clandjop.com/~dkvander/ircpiano.html




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