Are Your Service Contracts Optimized for Profit? Discover Maximizing Repair Savings.
We all know that most CCTV installations require some form of warranty, maintenance, or service agreement. This process is how integrators and self-maintaining enterprises (SMEs) balance both the economics and longevity of the security infrastructure.
Though some of these “service agreements” are written for a minimum of three years and may even include coverage of legacy and out-of-warranty (OOW) devices, that is not always the case.
Often, we hear from integrators as well as SME’s, “Our agreements extend for the manufacturer’s warranty, but do not include repair of OOW or legacy devices.”
In addition, Integrators face challenges in structuring profitable service agreements that allow for:
- Equipment that is no longer supported by the manufacturer (i.e. Honeywell Rapid Eye)
- Equipment that was not installed by the integrator and is now considered ‘legacy.’
Here are a couple of options to consider, whether you are a security integrator structuring a comprehensive maintenance agreement or a SME working to extend the product life-cycle of a device that is just OOW.
Power of Data
At Renova, we often boast about the power of collecting repair data for our commercial security integrator customers. Repair data insights are provided to our integrator customers, which help them make practical business decisions whether or not to include repair in their service agreements.
For example, a sales or service team can now examine the data behind a particular brand in their installations to accurately predict what savings & costs they would derive in their contract by including repair of OOW equipment. We can even break down costs per model or part number.
What does this tell us?
We took the 18-monthly average repair (vs. replacement) savings on OOW equipment to show our customers, which CCTV repairs derive the most savings.
Though we cannot disclose all the data (this is reserved for our customers), we are able to showcase the types of devices and the average amount our customers are saving by repair versus replacement.
The data below shows which brands could have a profound effect on how you structure your service agreements in the future with OOW repair. You can strengthen relationships with your customers, drive CCTV repair savings, and drive brand loyalty by offering repair services.
So, what now?
If you have a greater understanding of the customers’ devices that require maintenance, then why not include repair in your service agreement?
By predicting the percentage of devices likely to fail in a year (3-5%) when no longer in-warranty armed with the knowledge of repair cost versus replacement cost, a win-win service agreement can then be structured for customer and service provider.
Programs such as Renova’s AEX (advanced exchange) can remove the need for two field visits for one problem.
Learn about the CCTV repair programs available by Renova.
