Computer service contracts are an aspect of your business that you need to manage well.  You need to make sure you have a good system in place to sell the agreement and then track each client afterward.  The more professionally you handle your computer service contracts, the better your image and selling power will be.

When you go out to sell a computer service contract to a potential client, you should have your computer service contract all prepared.  Some people like a really detailed contract and others prefer to use a short, simple version.  At the other extreme are the people who go with a computer service contract that is basically a prepaid time agreement.  

Time Block Contracts
With these time-block computer service contracts, the client is purchasing your time.  The hope is that they will renew the agreement once the original block of time is used up. The minimum amount of information included in these agreement is as follows:

  • Normal rate
  • Discount given for prepayment of X number of hours at a time (i.e. 10% discount for prepaying 40 hours)
  • Length of time the prepaid time block is good for
  • List of services that can be performed with the time
From the point they sign a time-block computer service contract you need to push them on the consumption of time they pre-purchased.  You want them using your services and realizing how much IT assistance they need. This way you can sell them on an traditional year-long contract after the first block of time is used up.

When you have a business on a computer service contract like this, you want them to be using up the time blocks on a consistent basis.  If they aren’t then they are still in the customer phase.  They become a true client after they renew their first time block or they move to an annual contract.

Bottom Line on Computer Service Contracts
Computer service contracts come in many different styles. You have to choose the length and language that best suits your needs and your business model.  The main things to be concerned about when selling a computer service contract are (1) you have it thoroughly prepared before you go to sell it and (2) that you work very hard to ensure the full computer service contract is utilized by the client. This will help you maximize your return and turn the one-time contract customer into a long-term client.  

In this article, you’ve been introduced to Computer Service Contracts. To learn more about how you can improve your knowledge about Computer Service Contracts, just click here now to get access to a free one-hour audio training program on 5 Easy Ways to Grow Your Computer Consulting Business.