Planned Maintenance Agreement
Definition
A planned maintenance agreement is a contract where a customer pays a recurring fee in exchange for scheduled inspections and tune-ups of their equipment.
What Planned Maintenance Agreement Means for Your Business
What it means
Planned maintenance agreements, sometimes called PMAs, lock in a year or more of scheduled visits at a fixed price. They are the foundation of recurring revenue in field service.
Why it matters
PMA customers buy 2 to 3 times more repair work than one-time customers. They are cheaper to acquire, more loyal, and fill your slow season with pre-booked visits. Investors value them like gold.
How contractors use it
Shops sell PMAs on every service call, bundle them into new equipment installs, and auto-renew them annually. Good software schedules PMA visits automatically and reminds the CSR to call each customer 2 weeks before their appointment.
Real-World Example
An HVAC company sells 850 PMAs at $189 per year, generating $160,650 in upfront revenue. Those same customers average $640 in additional repair work each, adding another $544,000 annually.
Related Terms
Recurring Service Agreement
A recurring service agreement is a contract that auto-renews and bills a customer on a fixed schedule for ongoing maintenance or priority service.
Maintenance Plan
A maintenance plan is a customer-facing product that bundles routine inspections, discounts, and priority scheduling into a single recurring purchase.
Membership Plan
A membership plan gives customers priority service, discounts, and perks in exchange for a monthly or annual fee.
Backlog
Backlog is the total dollar value or labor hours of work that has been sold but not yet scheduled or completed.
Service Agreement
A service agreement is a written contract between a contractor and customer that defines the scope, price, and terms of ongoing service work.
Put This Into Practice with Free Software
Kaldr Tech handles planned maintenance agreement and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.