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Roof Cleaning Cleveland (216) 323-0552 · Dec 2, 2010

RE: 5 year guarantee

B.A. · Guest

Very Interesting Topic.

TED: We offer a 2year warranty.

Ever since Scott introduced that 5 year logo, i have been intrigued. He is definatley correct about customers not calling to redeem warranties. It is a great selling and closing point, but as far as cashing in on warranties the A-Team has not gone back. The thing is: I have seen some of our roofs from 3 and 4 years ago, and some are infected again. No calls. Not one.

I know a plumber that keeps his office like a medical office, in that, there is a color coded file for every customer. He keeps detailed records on everything that he does for these clients. Now oour industry has a little less need for as many details as a plumber may have on a given repair (we either cleaned a roof, did a house wash, or washed a deck).

My point: I believe there is some merit to both offering a warranty (5 year) and offering some kind of maintenace plan. You would have to a have a solid delivery on the maintenance plan. See I believe this could be where the pricing wars begin, and end.
"......absolutley Mr. customer, while you're shopping for discounted roof cleaning, make sure they offer you a 5 year guarantee."

If Johnny Knuckleheads service offers 2 years for $400
and We offer 5 Years @ $650
which is the better value

Guest

B.A. wrote:

Very Interesting Topic.

TED: We offer a 2year warranty.

Ever since Scott introduced that 5 year logo, i have been intrigued. He is definatley correct about customers not calling to redeem warranties. It is a great selling and closing point, but as far as cashing in on warranties the A-Team has not gone back. The thing is: I have seen some of our roofs from 3 and 4 years ago, and some are infected again. No calls. Not one.

I know a plumber that keeps his office like a medical office, in that, there is a color coded file for every customer. He keeps detailed records on everything that he does for these clients. Now oour industry has a little less need for as many details as a plumber may have on a given repair (we either cleaned a roof, did a house wash, or washed a deck).

My point: I believe there is some merit to both offering a warranty (5 year) and offering some kind of maintenace plan. You would have to a have a solid delivery on the maintenance plan. See I believe this could be where the pricing wars begin, and end.
"......absolutley Mr. customer, while you're shopping for discounted roof cleaning, make sure they offer you a 5 year guarantee."

If Johnny Knuckleheads service offers 2 years for $400
and We offer 5 Years @ $650
which is the better value

Something seemingly simple on the surface, a guarantee or warranty, gets very complicated once a few layers of onion are peeled back.

Scott - thank you for the insight yet again (and AC too of course). The potential impact to the funnel could indeed be huge, and the selling price, among other things.

Ryan - good to see you on the premium side. My cards are pretty much on the table over here, save for a few things that I've kept closely guarded. I figured you'd be over here fairly soon, so it's all good

Looking forward to meeting you and talking with you in Chantilly.

Confident Roof Cleaning Houston TX · Guest

Hey Ted, id like to chat tomorrow if you've got some time in the afternoon....what would be a good time to call? Before or after 2?

B.A. · Guest

TEd: Likewise, really looking forward to next week.

Guest

Confident Roof Cleaning Houston TX wrote:

Hey Ted, id like to chat tomorrow if you've got some time in the afternoon....what would be a good time to call? Before or after 2?

Any time is fine Scott. I was going to ping you with a question via PM, so now I'll just wait 'til we talk. Thanks again.

Reliable Roof Cleaning Jacksonville FL · Guest

A 5 year warranty is a very interesting topic and I can see the benefits of offering the warranty to increase sales. My problem is that it eliminates one aspect of my business model. That being offering a maintenance plan for recurring revenue.

Therefore, I need to weigh the benefits of a maintenance plan vs a 5 year warranty.

I hope to one day sell this business. Without recurring revenue there is really not much to sell. Some equipment and the business name. Not as valuable as a business that can show recurring revenue.

Ryan of the A-Team talked about people not following up on their warranties as a good thing. Ryan says "The thing is: I have seen some of our roofs from 3 and 4 years ago, and some are infected again. No calls. Not one." That would concern me because you are not going to knock on the door and tell the homeowner his roof needs cleaning before the 5 years expire. So the homeowner sits there while a competitor can move it. With a maintenance program the roof stays clean and there is no threat of losing the customer to a competitor and you are generating revenue during the 5 year period.

Charles

Chowell77 · Guest

I think alot of it is keeping in front of your customers as well. We used to use an email reminder system that would categorize all of our customers and send them 4 annual emails. Nothing serious but just reminder type emails. Or if we have a great new special or added something to our services we'd send an email. I'll try and post an example shortly. This always keeps your name fresh with the customers without being obtrusive.

Reliable Roof Cleaning Jacksonville FL · Guest

AC Lockyer wrote:

Reliable Roof Cleaning Jacksonville FL wrote:

A 5 year warranty is a very interesting topic and I can see the benefits of offering the warranty to increase sales. My problem is that it eliminates one aspect of my business model. That being offering a maintenance plan for recurring revenue.

Therefore, I need to weigh the benefits of a maintenance plan vs a 5 year warranty.

I hope to one day sell this business. Without recurring revenue there is really not much to sell. Some equipment and the business name. Not as valuable as a business that can show recurring revenue.

Ryan of the A-Team talked about people not following up on their warranties as a good thing. Ryan says "The thing is: I have seen some of our roofs from 3 and 4 years ago, and some are infected again. No calls. Not one." That would concern me because you are not going to knock on the door and tell the homeowner his roof needs cleaning before the 5 years expire. So the homeowner sits there while a competitor can move it. With a maintenance program the roof stays clean and there is no threat of losing the customer to a competitor and you are generating revenue during the 5 year period.

Charles

Try a prorated warranty, it fits nicely into a recurring revenue model. Then reminding a customer that they have a warranty = money!
AC

AC could you elobrate on how a prorated warranty fits nicely into a recurring revenue model? I understand how you may recieve additional income if a homeowner calls and says I have some algae growth coming back within the 5 years. So you go out and charge a prorated amount to take care of the stains.

It also doesn't take care of the problem that some on here are saying that the customer even forgets he has a warranty. They have a problem and don't call so it leaves room for a competitor to move in and take your business.

I don't consider that I might get some warranty work truly recurring revenue. Recuring revenue to me is defined as I have X number of customers who have agreed for my company to come out each year and apply a maintenance application. And for that maintenance application they also aggree to pay an annual fee until cancelled. A potential company buyer would be able to place a value on that type of recurring income.

It's also my opinion that you have a better chance of keeping a customer with an annual contract. I get to see them each year and sell them my other services which are required more frequentely. You don't have to hope that after the 5 years he will use your services again.

Charles

Roof Cleaning Virginia 540-949-6277 · Roof Cleaning Institute of America Premium Member/MODERATOR

We have guarantees, warranties and limited warranties. What to do?

At some point we need to figure out what is best for us and our industry.

I have been reading a lot on "warranties" and find that using the word warranty is open ended, meaning that it "has no time limit. As a consumer, you can return the product to the manufacturer at any time and have it repaired or, if needed, replaced."

I think we need to be looking at a limited warranty after the state mandated warranty runs out. Usually one year in most states. In doing this, this is where we can add that only with a yearly treatment, then do the math for the customer. You don't see them for two years, by then they've forgotten about you and the roof. Now you're in their face again, applying a light spray for $$ each year depending on the conditions of the warranty.

What Is a Limited Warranty?

By Sienna Condy, eHow Contributor

I want to do this! What's This?

When you buy a new product, you expect a company to have a warranty on it. However, you might not understand exactly what kind of warranty you are getting. As a consumer, the type of warranty a product has should be something you check before you buy. There is a world of difference between a limited warranty and a full warranty.

The Warranty You Pay For

In some cases, a limited warranty can be free when you buy a product, but often, it's a warranty you have to pay for. Electronics stores often offer limited warranties at the point of sale. These limited warranties allow you to return a faulty item within a specified period of time. Manufacturers also offer limited warranties. Computer companies and other electronics manufacturers frequently have limited warranties for a year or two on their products. For this reason, it's important for a consumer to check original warranty information on the packaging before purchasing a second limited warranty from the store.

Time Frame

A limited warranty lasts for a specified amount of time, usually 1 to 2 years for electronics and up to 10 years for cars.

Features

Limited warranties are also often limited in other ways. For example, cars today often have 10-year warranties, but the last 5 years of the warranty usually only covers the power train. The warranty is limited in what it will repair or replace. So, it is not a full warranty. Limited warranties are also normally limited to first-time purchasers. If you sell the item at any time during the life of the warranty, the warranty is null and void.

Benefits

The benefit of a limited warranty is having peace of mind for at least a short time. When you purchase an item with a limited warranty, you know you don't have to worry about paying to replace the item if it breaks during that warranty. Most items that have limited warranties are either small, inexpensive items that you don't expect to last very long or bigger items like televisions, cars, computers and other high-end electronics. Manufacturers offer only limited warranties on these items because the length of time an appliance or electronic device lasts usually depends on the wear and tear a user puts on the item.

Full Warranty

In contrast to a limited warranty, a full warranty has no time limit. As a consumer, you can return the product to the manufacturer at any time and have it repaired or, if needed, replaced.Guarantee: "I guarantee that your roof will look like new when I complete the process"

Definition: (for our purposes)
1. A pledge that something will be performed in a specified manner.
2. To assume responsibility for the quality or performance of: guarantee a product.
3. To make certain
4. To express or declare with conviction

We need to think about how we (as a group) will go after this warranty/guarantee issue. Wording is important when offering these to customers. There is always someone around the corner looking for something for nothing or the attorney/client ready to tear us a new one.

Thoughts?

Roof Cleaning Virginia 540-949-6277 · Roof Cleaning Institute of America Premium Member/MODERATOR

Reliable Roof Cleaning Jacksonville FL wrote:

AC Lockyer wrote:

Reliable Roof Cleaning Jacksonville FL wrote:

A 5 year warranty is a very interesting topic and I can see the benefits of offering the warranty to increase sales. My problem is that it eliminates one aspect of my business model. That being offering a maintenance plan for recurring revenue.

Therefore, I need to weigh the benefits of a maintenance plan vs a 5 year warranty.

I hope to one day sell this business. Without recurring revenue there is really not much to sell. Some equipment and the business name. Not as valuable as a business that can show recurring revenue.

Ryan of the A-Team talked about people not following up on their warranties as a good thing. Ryan says "The thing is: I have seen some of our roofs from 3 and 4 years ago, and some are infected again. No calls. Not one." That would concern me because you are not going to knock on the door and tell the homeowner his roof needs cleaning before the 5 years expire. So the homeowner sits there while a competitor can move it. With a maintenance program the roof stays clean and there is no threat of losing the customer to a competitor and you are generating revenue during the 5 year period.

Charles

Try a prorated warranty, it fits nicely into a recurring revenue model. Then reminding a customer that they have a warranty = money!
AC

AC could you elobrate on how a prorated warranty fits nicely into a recurring revenue model? I understand how you may recieve additional income if a homeowner calls and says I have some algae growth coming back within the 5 years. So you go out and charge a prorated amount to take care of the stains.

It also doesn't take care of the problem that some on here are saying that the customer even forgets he has a warranty. They have a problem and don't call so it leaves room for a competitor to move in and take your business.
I don't consider that I might get some warranty work truly recurring revenue. Recuring revenue to me is defined as I have X number of customers who have agreed for my company to come out each year and apply a maintenance application. And for that maintenance application they also aggree to pay an annual fee until cancelled. A potential company buyer would be able to place a value on that type of recurring income.

It's also my opinion that you have a better chance of keeping a customer with an annual contract. I get to see them each year and sell them my other services which are required more frequentely. You don't have to hope that after the 5 years he will use your services again.

Charles

Charles,

This is exactly what I'm thinking about, just trying to figure it out and make it a win/win so they jump with joy to sign on!

Roof Cleaning Virginia 540-949-6277 · Roof Cleaning Institute of America Premium Member/MODERATOR

I found this on 1St Choice roof cleaning web site while reading another post on the guest side. Though this isn't completely what we would be doing it is something we can work from. My guess is he got this from the companies that make the products.

SHINGLE CARE™ 3-YEAR LIMITED WARRANTY©

(included with Standard and Premium cleanings)

1st Choice Roof Cleaning will re-clean your shingle roof should staining reappear within the 3-year warranty period on a pro-rated basis from the date of the original cleaning.This warranty may be transferred to the Shingle Guard™ Lifetime Guarantee within the first six months following the cleaning. Tile and cedar shake roofs are limited to our 2-year pro-rated warranty.

For as long as you remain on the semi-annual Shingle Guard™ Maintenance Plan as scheduled, you have an unconditional and transferable guarantee that your roof will remain free of fungus growth and stains and retain its like-new appearance for the life of the roof.©

Should fungus and algae staining reappear within the 6-year guarantee period or the life of the roof, whichever occurs first, Shingle Care Systems will provide the labor and materials necessary to re-clean and, if necessary, re-coat the roof to its best appearance possible.There are three conditions to this guarantee:

This guarantee does not cover areas of the roof where trees overhang or where trees are in such a close proximity that the roof is in continual shade.Should staining occur due to these reasons, you may be subject to a service charge to remove these stains.
This guarantee requires that the roof be kept free from debris such as leaves and pine needles.Should staining occur due to debris on the roof, you are subject to a service charge to remove these stains.
This guarantee is subject to one inspection by your authorized Shingle Care dealer.This inspection must occur within the two month period before or after the 3^RD (third) anniversary date of the original cleaning.Customers with a properly documented registration will be notified via US mail from Shingle Care national headquarters two months prior to the third anniversary date.

gutterdog · Dec 3, 2010

Classicrider wrote:

I found this on 1St Choice roof cleaning web site while reading another post on the guest side. Though this isn't completely what we would be doing it is something we can work from. My guess is he got this from the companies that make the products.

SHINGLE CARE™ 3-YEAR LIMITED WARRANTY©
(included with Standard and Premium cleanings)
1st Choice Roof Cleaning will re-clean your shingle roof should staining reappear within the 3-year warranty period on a pro-rated basis from the date of the original cleaning.This warranty may be transferred to the Shingle Guard™ Lifetime Guarantee within the first six months following the cleaning. Tile and cedar shake roofs are limited to our 2-year pro-rated warranty.
SHINGLE GUARD™ LIFETIME GUARANTEE©
(option available with Standard and Premium cleanings)
For as long as you remain on the semi-annual Shingle Guard™ Maintenance Plan as scheduled, you have an unconditional and transferable guarantee that your roof will remain free of fungus growth and stains and retain its like-new appearance for the life of the roof.©

SHINGLE COAT™ 6-YEAR GUARANTEE©
(option available with Standard cleaning at the time of cleaning only)
Should fungus and algae staining reappear within the 6-year guarantee period or the life of the roof, whichever occurs first, Shingle Care Systems will provide the labor and materials necessary to re-clean and, if necessary, re-coat the roof to its best appearance possible.There are three conditions to this guarantee:
This guarantee does not cover areas of the roof where trees overhang or where trees are in such a close proximity that the roof is in continual shade.Should staining occur due to these reasons, you may be subject to a service charge to remove these stains.
This guarantee requires that the roof be kept free from debris such as leaves and pine needles.Should staining occur due to debris on the roof, you are subject to a service charge to remove these stains.
This guarantee is subject to one inspection by your authorized Shingle Care dealer.This inspection must occur within the two month period before or after the 3^RD (third) anniversary date of the original cleaning.Customers with a properly documented registration will be notified via US mail from Shingle Care national headquarters two months prior to the third anniversary date.

1st choice? Thats Michael Kresles (I spelled it wrong, sorry) page in Kentucky!

Awesome dude! Checked him in Google, never seen his website. This guy is up there with Chris, for being honest and really wanting to help.

In Chantilly we should have an open talk about this 5 year guarantee!!!, the roofshampoo method, I'm gonna get you into cleaning gutters, made 500 2 days ago, 580 today. Gutters, really!. SEO, Management, The Book that will get you straight, for 2011, MORE!!!

Confident Roof Cleaning Houston TX · Guest

Mike, we did 1400 in guttters a couple mondays ago! Thanks for the advise! Only took us 5 hours.

Roof Cleaning Virginia 540-949-6277 · Roof Cleaning Institute of America Premium Member/MODERATOR

gutterdog wrote:

1st choice? Thats Michael Kresles (I spelled it wrong, sorry) page in Kentucky!

Awesome dude! Checked him in Google, never seen his website. This guy is up there with Chris, for being honest and really wanting to help.

In Chantilly we should have an open talk about this 5 year guarantee!!!, the roofshampoo method, I'm gonna get you into cleaning gutters, made 500 2 days ago, 580 today. Gutters, really!. SEO, Management, The Book that will get you straight, for 2011, MORE!!!

Mike.... I'M ALL EARS (and I'll watch too).

But... maybe before too many

Roof Cleaning Virginia 540-949-6277 · Roof Cleaning Institute of America Premium Member/MODERATOR

AC Lockyer wrote:

Classicrider wrote:

I found this on 1St Choice roof cleaning web site while reading another post on the guest side. Though this isn't completely what we would be doing it is something we can work from. My guess is he got this from the companies that make the products.

SHINGLE CARE™ 3-YEAR LIMITED WARRANTY©
(included with Standard and Premium cleanings)

1st Choice Roof Cleaning will re-clean your shingle roof should staining reappear within the 3-year warranty period on a pro-rated basis from the date of the original cleaning.This warranty may be transferred to the Shingle Guard™ Lifetime Guarantee within the first six months following the cleaning. Tile and cedar shake roofs are limited to our 2-year pro-rated warranty.

SHINGLE GUARD™ LIFETIME GUARANTEE©
(option available with Standard and Premium cleanings)

For as long as you remain on the semi-annual Shingle Guard™ Maintenance Plan as scheduled, you have an unconditional and transferable guarantee that your roof will remain free of fungus growth and stains and retain its like-new appearance for the life of the roof.©

SHINGLE COAT™ 6-YEAR GUARANTEE©
(option available with Standard cleaning at the time of cleaning only)

Should fungus and algae staining reappear within the 6-year guarantee period or the life of the roof, whichever occurs first, Shingle Care Systems will provide the labor and materials necessary to re-clean and, if necessary, re-coat the roof to its best appearance possible.There are three conditions to this guarantee:

This guarantee does not cover areas of the roof where trees overhang or where trees are in such a close proximity that the roof is in continual shade.Should staining occur due to these reasons, you may be subject to a service charge to remove these stains.

This guarantee requires that the roof be kept free from debris such as leaves and pine needles.Should staining occur due to debris on the roof, you are subject to a service charge to remove these stains.

This guarantee is subject to one inspection by your authorized Shingle Care dealer.This inspection must occur within the two month period before or after the 3^RD (third) anniversary date of the original cleaning.Customers with a properly documented registration will be notified via US mail from Shingle Care national headquarters two months prior to the third anniversary date.

http://www.shinglecare.com/

They are from Orlando, FL and the website has been under maint for 4 months now. I heard they went out of business. Seems every roof cleaning franchise goes this direction.

BTW Shingle Care use to be one of those every 6 months maint plan companies??? They were one of Mallard Systems chief competitors over the years.

Oh if you go to Mallard Systems website.................I didn't do that one. Don't hold that website against me.

AC

AC,

As I stated... I posted not about the company or even Mallard but something for us to look at, an example, and have an idea of what we want to do from here. "it is something we can work from". A 2 year, 3 year, 5 year... maintenance, no maintenance... that is a lot of SH** to get through. Also, the real important thing is how we use warranty, limited warranty and guarantee.

deleted member

AC,
I think you might be mis-informed. I came across a shingle care franchise in my area and I have looked at the Shingle Care website within the last month. They may have gone out of business since then, but their site was up and running when I started a thread on it.

gutterdog · Dec 5, 2010

Confident Roof Cleaning Houston TX wrote:

Mike, we did 1400 in guttters a couple mondays ago! Thanks for the advise! Only took us 5 hours.

Glad I was able to help!!

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