Maintenance Contract Options

Options are almost always a good thing. It is why they created vanilla and chocolate, it is why peanut butter comes in smooth and chunky style. Options are also important to your business. Choices frequently lead to better deals.

A lack of choices can cost you money. For example, some maintenance contracts tie a company into purchasing equipment solely from the maintenance provider. As you can imagine, and I am sure many of you know first hand, this winds up costing your company money. Once you are contractually bound to purchase from one source, that source can charge almost whatever they want.

Several years ago most maintenance contracts were written this way. It worked out great for the maintenance providers. Times are changing, however, and so are the terms that are likely to be accepted by the customer.

Most customers insist that a clause be put in the contract stating that the customer can purchase equipment wherever they want. This leaves them free to pursue options like independent distributors, or sometimes even other end users. If you do not add a clause like this, go over your contract with a fine tooth comb and make sure there is nothing restricting your purchasing.

There is a psychological aspect to including a clause like this in writing. It makes the customer feel comfortable that they have choices they are free to pursue. They may still chose to purchase from the maintenance provider, but that decision will be theirs.

If you have a contract that restricts where you buy your equipment, take note of the expiration date. A few months ahead of that date, call the maintenance provider and tell them you want to review the contract before you renew it. If you don't do this, it might automatically renew, with all the terms it currently contains.

Remember, you are the customer, you have negotiating power. Chances are there is more than one maintenance provider in your area. If one won't agree to your terms, another might.

A change like this in your contract can save your company hundreds and even thousands of dollars, depending on how much you generally buy. Make sure you leave your options open.