Service Agreements Help Retain Customers, Keep Technicians Busy

Jolly Plumbing maintains consistent work flow and avoids seasonal lulls thanks to the 1,000 customers it has on service agreements

Service Agreements Help Retain Customers, Keep Technicians Busy

Brady Jolly, owner of Jolly Plumbing

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To grow a new HVAC division at Jolly Plumbing in Wilder, Kentucky, the company revamped an old service-agreement program and rebranded it as the Jolly Home Plan. The primary goal? Customer retention and more consistent work flow during seasonal lulls, says owner Brady Jolly, who bought the company from his father, founder Barry Jolly, in 2017.

The results have been good.

“We only had about 50 or 75 customers enrolled under the old program,” Jolly says. “But now we have about 1,000 members.”

Spring and fall weather in northern Kentucky is fairly mild, so there’s not much demand for heating and air-conditioning repairs. But the service program helps keep technicians busy during these cyclical slow-downs because it includes an air-conditioning system tune-up in spring and a heating-system tune-up in fall.

For $14.99 a month, the plan also includes an annual plumbing-system inspection, a carbon monoxide test, priority first-in-line service, a sewer-lateral inspection, a 10% discount on repairs and a 50% discount on the company’s $167 emergency-service fee.

“It keeps our technicians busy,” Jolly says. “With 1,000 members and three technician visits a year, we’re going into people’s homes 3,000 times a year.”

Plus, many times system inspections reveal issues that customers don’t know about, which is good for them and also for Jolly Plumbing. The monthly membership fees also automatically generate a base level of consistent cash flow. And perhaps just as importantly, the program helps ensure customers will call the company whenever they need service.

“If they’re already paying $15 a month, they’re not going to call another HVAC or plumbing company,” Jolly says.

The company gives technicians an incentive to get customers to sign up. It pays them $15 for every sale and another $15 if customers renew their annual membership.

“It can really add up for our technicians,” Jolly says.

The extra $15 reward for customer renewals motivates technicians to fully explain the value the program provides.

“Customers are under no obligation to renew their membership — it auto-renews unless they cancel it,” Jolly says. “So it’s better if technicians fully explain the plan’s value. That way customers are more likely to renew than if they sign up just to get the 10% discount on, say, a new furnace installation.”

Read more about Jolly Plumbing in the June 2022 issue of Plumber magazine.


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