A maintenance agreement sells scheduled tune-ups at a recurring price — covering the visit cost plus margin. Annual price = visits × per-visit cost, marked up; monthly is that ÷ 12.
The example
2 visits, $55 cost, 40% margin.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 110 / 0.60 | — |
| 3 | Annual | → ~$183 |
The formula
The formula:
How it works
How it works:
- Per-visit cost = tech time + travel + materials for a tune-up.
- Multiply by visits per year (often 2: spring + fall).
- Divide by (1 − margin) for the annual price; ÷ 12 for monthly.
- Agreements add recurring revenue and first-call priority — worth more than the tune-up alone.
The agreement’s real value is the relationship, not the tune-up. A maintenance plan locks in recurring revenue, keeps you first-in-line on the customer’s next repair, and surfaces problems before they become emergencies — so even a thin margin on the visits pays off through repair and replacement work. Price to cover the visits with some margin, then count the downstream revenue as the upside.
Try it: interactive demo
Visits/year, cost per visit, margin.
Variations
Monthly price
Annual ÷ 12:
Annual cost (no markup)
Break-even:
Multi-system
Extra units:
Pitfalls & errors
Cover the visits. Per-visit cost includes time, travel, materials.
Margin, not markup. Divide by (1 − margin).
Value is downstream. The plan’s worth is the repair/replace work it brings.
Practice workbook
Frequently asked questions
How do I price an HVAC maintenance agreement in Excel?
What's the monthly price?
Why offer agreements if margins are thin?
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