Selling service and maintenance plans for industrial and construction equipment is a highly effective way to boost revenue. If a company buys a new forklift or piece of packaging equipment, for instance, it may also be interested in a service plan. Doing so ensures the equipment will operate efficiently throughout its lifetime. And should any problems arise, the servicing company will usually fix them. This helps to create logical reasons for additional customer "touches" past sale; which will ensure that your company is in the know of any upcoming sales opportunites.
One of the most common types of service plans for industrial equipment is a regular maintenance plan. Also known as a “preventative maintenance plan,” this covers the cost and labor for all routine forms of maintenance associated with the equipment. Industrial construction equipment typically requires ongoing maintenance to ensure it functions as intended. The buyer can either perform this maintenance themselves; they can outsource the task to a third party; or they can buy a regular maintenance plan.
Another common type of service plan offered with industrial equipment is extended warranties. As the name suggests, this plan “extends” the warranty for a piece of equipment beyond its standard manufacturer's warranty. Most manufacturers of industrial equipment offer some type of warranty, guaranteeing that the equipment will work as intended for a predefined length of time. Should the equipment fail, the manufacturer agrees to fix or replace it at no cost. An extended warranty plan goes one step further, offering protection beyond the standard manufacturer's warranty.
Tips on Selling Service Plans
First and foremost, familiarize yourself the different equipment service plans offered by your company and their respective features. You can't expect to sell many service plans (if any) unless you know what exactly you are selling. So, read through each and every service plan, taking note of what it covers, how long the coverage lasts, how much it costs, etc. Using this information, you can pitch your equipment service plans more effectively, generating a stronger response by prospects.
If you research some of the different equipment service plans currently being offered, you'll notice that many of them contain multiple levels of service and protection. Assuming your company also offers multiple levels with its service plans, use this as a selling point. If a prospect cannot afford a “premium” plan, for instance, perhaps he or she can afford a “basic” plan.
Arguably, one of the most effective sales tactics to sell more equipment service plans is to convey its cost-value to the prospect. Sure, a service plan may cost extra, but if it saves money in the long run it's worth it.