A maintenance agreement member is worth the annual fee plus the repairs, add-ons and eventual replacement they bring you, minus the cost of serving them, for as long as they keep renewing. Because renewals carry no new acquisition cost, members are the one part of an HVAC company's marketing that compounds. This guide shows how to value a member, what that means for marketing spend, and how to sell and keep plans without discounting the profit away.
It is marketing and business coaching. How plan revenue is recorded, taxed or deferred is a question for your accountant, not for us.
What a member is actually worth
Start with the fee, then add everything a member typically brings that a non-member is less likely to give you. Use your own records; the figures below are a hypothetical company.
| Source of value | How to estimate it | Example per year |
|---|---|---|
| Plan fee, less visit and admin cost | Fee minus technician time, parts and scheduling cost | $229 − $102 = $127 |
| Repair work from members | Gross profit from member repairs ÷ number of members | $64 |
| Add-ons sold on member visits | Gross profit from filters, humidifiers, thermostats ÷ members | $21 |
| Share of replacement gross profit | Replacement gross profit × the extra chance a member buys from you, spread over the years | $105 |
| Gross profit per member per year | $317 |
The replacement line is the one to handle carefully. If a replacement leaves $2,800 in gross profit and you think members are meaningfully more likely to buy theirs from you, spread that extra likelihood across the years until the system needs replacing. Be conservative here. If you cannot support the estimate from your own records, leave the line out and the plan will still usually pay.
Why renewal rate drives the result
A member's lifetime value is roughly the yearly gross profit multiplied by how many years they stay. How many years they stay depends almost entirely on renewal rate.
| Renewal rate | Expected years as a member (approx.) | Lifetime gross profit at $317/yr |
|---|---|---|
| 60% | 2.5 | $793 |
| 70% | 3.3 | $1,057 |
| 80% | 5.0 | $1,585 |
| 90% | 10.0 | $3,170 |
The approximation used is one divided by the share who leave each year. Moving from 70% to 80% renewal adds more value per member than most sign-up campaigns ever will. That is why renewal reminders, member scheduling and win-back offers deserve as much attention as selling new plans.
What you can afford to pay for a new member
Once you have a lifetime value, the ceiling for acquiring a member follows the same logic as any job in our cost-per-booked-job guide. Decide what share of lifetime gross profit you are willing to spend up front.
With a lifetime value of $1,057 at 70% renewal, spending a fifth up front gives a ceiling of about $211 per new member. Most members, though, cost far less than that because they are signed at the point of service: a technician offers the plan during a repair or tune-up the customer has already booked. The marginal marketing cost of that sale is close to zero. The paid ceiling matters for campaigns aimed specifically at selling plans, such as spring and fall tune-up promotions.
Designing an offer that sells and still pays
Members tend to value certainty and priority more than discounts. A plan that sells well and stays profitable usually has:
- Clear inclusions. One or two visits a year, what is checked, and what is not included.
- Priority booking. Members go to the front of the queue in a cold snap. This costs little and matters a lot to the customer.
- A modest repair benefit. A small member rate on repairs, rather than large discounts that erode margin.
- Automatic reminders. The visit is booked for them, not left to memory.
- A simple renewal. Annual or monthly payment with a reminder before the renewal date.
Watch for creep. Each extra inclusion raises your cost per member. If the visit grows from forty-five minutes to ninety, the plan line in the table above can turn negative without anyone noticing.
Where plans get sold
On the website
A plain page explaining the plan, linked from every service and repair page, with a clear call to action to call or text. Prices shown plainly, since hidden prices tend to put people off.
By technicians
Most plans are sold on site. Give technicians a short, honest way to offer it and a one-page leave-behind. Measure offer rate per technician, since a plan nobody offers cannot sell.
By the office
When a non-member books a repair, the CSR can mention priority booking for members. When a member calls, the CSR should recognise them.
Through campaigns
Spring and fall are natural times to promote tune-ups that convert into plans. These campaigns are where the paid ceiling above applies, and margin-weighted campaigns can carry them.
A renewal process that works
- Sixty days before renewal: a reminder by the customer's preferred channel, only where they have consented.
- Thirty days before: a second reminder with the next visit offered.
- At renewal: confirmation and the visit booked.
- Thirty days after a lapse: a short win-back message with an easy way to rejoin.
- Each quarter: a review of lapsed members, with a call to the most valuable ones.
Canada's anti-spam legislation requires consent for commercial electronic messages, along with identification and a way to opt out. Build consent into your booking process so reminders are allowed when you need them.
Members and the shoulder seasons
Members also solve a scheduling problem. Booking member visits in April, May, September and October puts paid, planned work on the board when demand is lowest, without discounting. Spread visits across those months instead of letting them pile up when the first cold week arrives. The job mix and shoulder seasons guide shows how to plan the year around this.
Mistakes to avoid
- Measuring sign-ups only. Report net members after lapses, every month.
- Discount-led plans. They attract members who leave when the discount ends.
- No owner. Someone in the office needs to own renewals as part of their job.
- Inflated value estimates. Use your own records, and be conservative on replacements.
- Treating the plan as accounting. Revenue timing and tax treatment are for your accountant.
If you want help selling and renewing plans, see maintenance agreement marketing, or compare plans and pricing.
Frequently asked questions
What should a maintenance agreement cost?
That is your pricing decision, and it should cover the visit, the admin and a fair margin. We help you test how the plan is presented and offered, but we do not set your prices or give accounting advice on how plan revenue is recorded.
Is renewal rate really more important than new sign-ups?
Over several years, usually yes. A small improvement in renewal rate keeps a larger share of every past year's sign-ups, so it compounds. New sign-ups only add to the base you then have to keep.
Should technicians be paid for selling plans?
Many companies use a small spiff per plan sold, but the decision is yours, and pay structures belong in a conversation with your accountant and HR adviser. What we measure is offer rate and conversion by technician.
Can I text renewal reminders to every past customer?
Only to people who have consented to hear from you. Canada's anti-spam law requires consent for commercial electronic messages, and the CRTC explains the rules. When in doubt, check before sending.
Sources
- CRTC: Canada's Anti-Spam Legislation FAQ (2026-10-22)