Service Agreement Ideas for Project Based Businesses
This one has got me racking my mind. One thing they always talk about when you are building enterprise value in a business is having predictable revenues. I think for something like window washing, lawn care, poop scooping etc it'd be easy to have predictable revenues because it's pretty straightforward to have a re-occuring service agreement. But what about us GCs? I originally thought I could get people with a membership for a percentage off jobs. This seemed like a good idea till the first two people to sign up only did so because they had large $40k plus jobs so it was a no brainer (it paid for itself 2x over). If I tried to make the percentage off smaller, it wouldn't be enticing enough to get people interested. Let's brainstorm here guys - what can a general contractor do as a monthly or quarterly service to get in to the service agreement game?Are You Selling Your Service… or Selling the Experience?
Customers have more choices than ever. Sometimes the difference isn’t just the service you provide, but how you make people feel from the first interaction to the final follow-up. What are some ways your business creates an experience that keeps customers coming back?Are discounts teaching customers to wait instead of buy?
I’ve been thinking about this more as we use more offers during slower seasons. Discounts can work. I’m not against them. We’ve used first-cleanup offers, prepayment offers, reactivation offers, seasonal promos, and different incentives to get people moving. Sometimes a discount gives the customer the little push they needed. It can help fill routes and bring back past customers. It can create cash flow and get someone to finally say yes after sitting on the quote. The problem starts when discounts become the main reason people buy. If customers only take action when there’s a deal, you may be training your market to wait. They learn your normal price is flexible and that your urgency is artificial. That can hurt your business over time. For a recurring service business, this matters even more because the first sale is only the beginning. If someone signs up because of a discount, you need to know whether they actually value the service at the regular price. A discounted customer can still become a great customer. But if the discount attracted someone who was never going to pay full price, you may have created a churn problem instead of a growth win. I’ve had to think about this with our own offers. When we send a first-month discount or a reactivation offer, I don’t want the message to sound like: “We’re cheap right now.” I want it to feel more like: “This is a reason to take action now.” That’s a big difference. The offer should support the value, not replace it. For example, I’d rather tie a discount to a clear situation: First cleanup when starting recurring service Prepaid months Seasonal restart Route opening in a specific area Past customer reactivation Limited schedule availability Add-on bundle That feels different than randomly cutting the price because leads are slow. Random discounts can make the business look desperate. Structured offers can still protect positioning. The other thing I think about is who the offer is for. A discount for a loyal customer who prepays is different than a discount for a brand-new price shopper who hasn’t shown any commitment. A discount to reactivate a past good customer is different than chasing someone who ghosted 5 follow-ups and only responds when the price drops. Those are not the same lead. I also think discounts need boundaries. How long is it available? What service does it apply to? Does it require recurring service? Does it require card on file? Does it require prepayment? Does it apply to add-ons? Does it stack with anything else? Without boundaries, the discount becomes negotiable. And once customers learn your price is negotiable, some of them will keep negotiating. That creates problems for the sales process and the brand. The goal is to use discounts without damaging the perceived value of the service. If your service is reliable, professional, well-communicated, and priced correctly, the discount should not be the strongest part of the offer. The strongest part should still be the outcome the customer wants. For us, that means a clean yard, waste hauled away, gate photo after every visit, clear communication, and one less thing the customer has to worry about. The discount may get attention. The service has to justify the full price after that. Have discounts helped your business grow, or have they trained customers to wait for a better deal?
💡FEATURE REQUEST: Price Increases in Products & Services List
Do you increase prices for ongoing customers? Do you know how long it takes me to increase my prices for 700 ongoing clients in my cleaning business? Whether you increase your prices on an annual basis or just as needed in these unpredictable times, it would be easier to make these changes en masse in the Products and Services tab! How would it work? When editing a product or service line item in the Products & Services List, there should be an option to carry that modification over to any existing Jobs that have that line item on it. Currently, this would only update for new jobs created, but I'd love to see a little pop-up that says, "Would you like to change the price for existing Jobs with this line item? Yes/No" Use Case Example: Because I am in the cleaning industry, it will be my primary use case. Let's say you have a minimum price that every client's rate will be at or above. When you create a new job for a recurring customer, you add a line item titled "Minimum Rate + current year," like for 2020: "Minimum Rate 2020," which is $150. You also add another line item based on how your pricing model is set up - in this case, I will use a simple one: "Small House" for $10 "Medium House" for $30 "Large House" for $50 When it's time for your prices to increase, consider the following options: you could decide to raise prices only for people with large houses and keep your minimum rate the same, or you may want to increase the cost for clients who have been with you for more than 5 years. Instead of making this change one client at a time and trying to sort through who the change applies to, I could go to the Products and Services List and find the specific line item I want to modify. Then, I could edit the price in there! Ta Da! You've raised your prices! Why should Jobber care? This would be huge for any business industry that has recurring clients. ServiceTitan, Housecall Pro, and other competitors already have this feature. I have found other threads that mention something like this or frustrations with how to go about raising prices. This would allow businesses that only see customers once or twice a year to set up their customers as recurring with one Job, saving them a lot of time and effort as well. You'd have at least one very loyal customer in me! I've spoken to two support agents who thought this was a simple but fantastic idea! My next price increase is in June, and I'd love you guys if you saved me weeks worth of work in a single click 🤞🙏 QUESTIONS, COMMENTS, FEEDBACK, AND MORE USE CASES WELCOME!!
Let’s Talk Pricing
What's one service that customers consistently underestimate the value of? For me, it's often the planning, preparation, and experience behind the work—not just the labor itself. How do you educate customers on the value you bring without feeling like you're defending your prices? I'd love to hear how others approach these conversations.
When “Competitive Pricing” Depends on the Market
How do you account for the value of your experience and problem-solving beyond simply adding up materials and hours, while still keeping your work competitively priced? For me, “competitive” changes depending on the event or market I am selling in. I have a bad habit of underpricing both my work and my labor just to make the sale and keep the boat floating. My smaller pieces usually do well at public-facing events, but at many of those shows I am also directly competing with Mee-maw selling $4 dog scarves made from copyrighted character fabric. There is nothing wrong with selling an inexpensive product, but it creates a market where customers are often comparing everything by price instead of considering the skill, equipment, originality, time, and experience that went into making it. This is not limited to custom work. It affects everything I make. I can calculate the materials, consumables, equipment costs, and hours, but that still does not fully account for the years spent developing the skills or the problem-solving required to turn an idea into a finished piece. Sometimes the hardest part is not figuring out what the work is worth. It is finding the market where people understand why it is worth it. I do not like turning away work or walking away from a possible sale, especially when every sale helps keep the business moving. At the same time, constantly lowering prices to fit the wrong market can leave you working nonstop without actually getting ahead. I typically bring a variety of my work to each event, hoping to make enough sales to cover the cost of the day while also connecting with people who may become future commission clients. How do you decide whether to adjust your pricing, change the mix of products you bring based on the event or demographic, or accept that a particular market simply is not the right fit for your work?
