The customer canceled in month four, after three visits and a free tune-up

What’s inside

• What an early cancellation costs

  Visits and benefits delivered before cancellation, set against the payments actually received.

• Cancellation terms in writing

  How either side can end the agreement, the notice required and how refunds are calculated, reviewed by counsel.

• Refunds that are fair and consistent

  A refund calculated from services actually delivered, applied the same way to every customer.

• Ending an agreement you cannot serve well

  Giving proper notice on an agreement that no longer works, and helping the customer move on.

• Replaced equipment and sold properties

  What happens to an agreement when the covered equipment is replaced or the property changes hands.

• Learning from cancellations

  Recording why agreements end, so pricing, service and sales improve.

The measure it works from

Measure

Margin per agreement per year

Which means

What an agreement brought in over its year, less the technician time, drive time, parts, consumables, covered repairs and office time it actually used.

Compared against

The agreement price set on the day it was sold.

Every figure in the document is illustrative, produced by one internally consistent model, and the document says so on its own cover.

The Exit Clause