ARLINGTON, Va. - The Air Conditioning Contractors of America (ACCA) has released what the association says is the first-ever comprehensive analysis of residential service agreement programs in the HVAC industry. The publication,Residential Service Agreements: A Benchmarking Guide for the HVAC Contractor, is an analysis of a detailed survey of more than 300 contracting firms from across the country.

This report allows contractors to compare their own programs to those offered by similar companies. The information is useful for HVAC contractors seeking to create a service agreement program or to improve their current program.

The report covers such items as:

• Net profit margin on agreements

• Agreement sales per technician

• Full service vs. preventative maintenance

• Number of service agreements

• Retention of service agreement customers

• Service agreement costs

• Renewal efforts

• What is covered by service agreements

• Service agreement marketing and compensation

• Closing rates on service agreement calls vs. cold calls

The data is also cross-tabulated for comparisons among contractors based on geography, number of employees, and annual sales volume.

“There is no doubt that residential service agreements play a key role in the growth of many HVACR contractors,” said Hilary Atkins, ACCA general counsel and principal author of the report. “But this survey showed that the ways in which service programs are administered - what they cover, how they are marketed, how much they cost - vary widely.”

A separate publication on commercial service agreements, based on a similar survey of contractors, is undergoing final review and is scheduled to be published in March 2009.

Residential Service Agreements: A Benchmarking Guide for HVAC Contractorsis now available at ACCA’s online store (go to and click on “Business Management”) or by calling 888-290-2220. The cost is $185, or $85 for ACCA members.

Publication date:03/02/2009