Selling radon protection programs is a great way to add value for your customers and yourself. Not only do you get the satisfaction of knowing that you're helping to keep people safe, but you also get the added benefit of recurring revenue. Radon protection is an important service, and it is one that many people are happy to pay for year after year. In this post, we will discuss how you can go about selling radon protection programs and adding value for your customers.
Recurring revenue is one of the most powerful types of income you can generate. Unlike one-time sales, which require you to re-earn revenue on every project, recurring revenue comes in year after year. This provides a stable source of income that you can count on to fund your business and reach your long-term goals.
In addition, recurring revenue helps you to build relationships with your customers. By providing them with a valuable ongoing service, you create trust from your customers that can lead to repeat business and referrals. If you are not already using recurring revenue streams in your business, now is the time to start. With the power of recurring revenue behind you, you will be well on your way to achieving your goals.
While you won’t sell a radon protection plan to every customer you provide testing or mitigation services to, the opportunity to slowly begin to accumulate recurring revenue is there. For example, let’s say you sell radon protection plans that cost $200 per year and your crew installs 250 systems per year. If just 1 out of 5 customers joins your protection plan, you will have 50 new service plans with $10,000 extra income per year. After a few more years, you’ll quickly see your recurring revenue growing!
Core Elements Included In Plans
To create your own Radon Protection Plan, you will need to decide on the following items:
- What is included in the plan
- The duration of the plan
- How much will you charge
- How you will promote your plan
What Is Included In Your Radon Protection Plan
Typically, radon protection plans contain some sort of ongoing monitoring and/or warranty on labor and/or parts.
On-going radon monitoring is a great way to ensure your customers' homes are always safe. Whether the radon levels fluctuate due to natural causes, home renovations or even failed fans, you'll always be able to react as soon as high levels are detected.
A few products to consider:
When considering whether to include, purchase or lease an HCRM, consider this experience shared by Brent Ulbert Owner/Partner of Professional Discount Supply | Radon.
It is recommended that you lease the HCRM to the customer for a few reasons. First and most importantly, HCRMs are low-cost and unable to be recalibrated. Homeowners are buying protection plans from you in order to stay protected. You can really demonstrate your value and expertise by sending this point home. The NRPP-approved device that you carry--that you use on jobs and real estate transactions--costs 5-10X what an HCRM does on Amazon, why? Accuracy and reliability. When you lease them the device, you include actual testing* with your CRM every year. This way, if the HCRM ever loses calibration, you will catch it and swap it out. This is something that would be exceedingly difficult to do for the average homeowner, even if they knew to do so (read more at my radon myths page here). What an amazing service for your customer!
Second, if the homeowner decides to cancel service, you can retake possession of the device and use it in a new home. For low-cost service plans, you can always include a short term lab kit in lieu of an HCRM. Drop them a kit with a prepaid mailer as you do your annual system inspection. It's up to them to deploy and mail the kit in. If they want more hands-on service, make it easy to upgrade to an HCRM and a "white glove" service plan!
*What does it cost to get you to perform a real-estate level, NRPP-standard test? $150? Perhaps your white glove plan includes this, the CRM, a ten point radon system inspection all annually for the low-low price of _____? By having a price list, you can demonstrate the value you provide with these programs. Buying a monitor, having me calibrate it, having me inspect your system would cost 2X, but since you're signed up for "white glove service plan triple platinum extreme" it only costs _____. This type of value based sales is common in other contracting industries, why not ours?
Warranty, Labor, and Inspections
There are a few ways to consider including warranty, labor, and inspections in your plan. The end goal is to deliver peace of mind to your client so that if there is a problem, the issue will be resolved quickly and easily.
- Could you include an extended warranty on labor?
- Could you include an extended warranty on parts?
- Could you provide an on-site inspection periodically?
- Could you discount or warranty service calls?
You will want to consider the risk you incur when providing a warranty. For example, if a faulty fan stops running be sure to minimize your out-of-pocket cost.
Additionally, consider the time it will take to do an on-site inspection. If your plan includes an on-site inspection every two years, be sure you are covering your scheduling time, drive time and time on the job site.
The Duration Of Your Plan
Consider whether your plan will be a recurring plan or include only a specific period of time.
How Much Will You Charge
If your plan is recurring, pick a yearly cost to charge your customers. It is simplest to create a recurring agreement that the customer can cancel but will auto-charge their credit card if they do not cancel. You will also want to use software to automate the process to minimize the amount of time tracking.
If your plan covers a period of years, you may want to consider giving options with discounts for longer commitments. For example:
- 1 Year: $199
- 3 Years:
- 5 Years:
How You Will Promote Your Plan
Your radon protection plan will be best communicated when selling your radon testing or mitigation proposal. Create a simple brochure that explains the benefits of the plan. For example:
- Always know that your radon levels are at acceptable levels
- Extended coverage on labor and parts
- On-site inspections to ensure your system is working properly and the sealant has no cracks
- On-call customer service
One of the best ways to add value for your customers is to sell them a radon protection program. Radon protection is an important service, and it is one that many people are willing to pay for year after year. In fact, many homeowners are happy to sign up for a yearly contract so that they can be assured that their home is safe from the dangers of radon gas. If you are looking for a way to add value for your customers, selling radon protection programs is the way to go. Not only do you get the satisfaction of knowing that you are helping to keep people safe, but you also get the added benefit of recurring revenue.