Maintenance Contract Cost

[Installer024 0]

Hey Guys,

 

Newbie here, only my 2nd post. Had my largest install go very well a few months ago and know they are talking maintenance contract for the year. They also would like to see a monthly number as well. I have done some research and obviously know there are a few posts on here. I was hoping for a more in depth discussion with someone if possible. My specs are below. Let me know where you would start etc.....Things you would consider, prices you would charge, formulas you would use, things you would stipulate in the contract etc.. If you need more detail, i would be happy to give it over a private email to protect the confidentially of my client.

Thanks guys Could really use your help.

 

There are 2 warehouses. Both are close to each other, but 4 hours away from my shop. I usually charge 2/3 hourly rate for travel. Below is the equipment list with cost that was installed for each location.

 

WH #1

31 Fixed Cameras- $275 Cost Each

1 PTZ $ 3500

DVR $11,500

NVT 4K

 

WH #2 (Larger, more patch points)

29 Fixed Cameras- 250 Cost Each

3 PTZS 3500 Each, (1 was existing, works fine but is not new)

DVR 11,500

NVT 5 K

[Rockvilleash1976 0]

There is a difference between a service contract and a maintenance contract.

Maintenance Contracts usually run 10-15% of your install cost on a yearly basis. I would recommend that you start the contract from day one and make it at lest a 3 year contract. If you used a good manufacture that has a 3 year warranty and provided UPS's at the DVR's you can make a good profit because you should not have any serious issue for the first 3 years. You need to exclude acts of good, vandalism, end-user error. At the end of the 3 years you should state that there needs to be a service visit to evaluate the condition of the system. I would not renew the contract without making sure the system is still in good working condition.

 

Service Contract:

For most warehouse systems I will do quarterly or bi-annual service to clean cameras and inspect the system. I always plan for two techs. You need to figure how many hours it will take to clean all the cameras and if you need any special equipment like lifts. Take that time and round up. So if you can do it in 6 hours you need to round up to an 8 hour day. If you leave it at 6 hours it is very unlikely a tech will get to another site to do any work so a 6 hour day should be an 8 hour billable day. $75-$125 an hour single man rate are the going rate in the market I am in.

[thewireguys 3]

How long do you guys warranty your installs for? If it's for the first year would you sell your customer a maintenance/service contract?

[Rockvilleash1976 0]

We provide a one year parts and labor warranty. We dont do a lot of service or maintenance contracts until the installs get into the 100K range. We just provide per call service for our customers.

 

It is a good idea to offer service and maintenance because for a integrator this is a good source of RMR. We dont do it and it works for us but this is an area for growth and more RMR.

[Installer024 0]

Rockvilleash1976, thanks for the advice. I sent you a private email.