How to Offer Maintenance Contracts for Long-Term Revenue
The biggest financial challenge in the construction and plastering industry is the “Feast or Famine” cycle. You land a big project, cash flow is great for three months, and then the project ends. You are back to hunting for the next kill. This transactional model creates instability. The most successful businesses in the world—from software to elevators—rely on “Recurring Revenue.” They don’t just sell a product; they sell a relationship.
For a Kanish Plasters franchisee, the opportunity to build a recurring revenue stream lies in Annual Maintenance Contracts (AMCs). Most contractors walk away after the handover. By offering a “Kanish Care” maintenance package, you stay connected to the client, generate steady cash flow during lean months, and secure the first right of refusal for future renovation work. This guide explains how to structure, price, and sell plastering maintenance contracts to transform your business from a project-based model to a subscription-based model.
1. The Problem: Why Walls Need Maintenance
Clients often ask, “If your plaster is so good, why do I need maintenance?” It is crucial to educate them that maintenance is not about fixing product failure; it is about fixing usage damage.
- Settlement Cracks: All new buildings settle into the soil over the first 1-2 years. This structural movement causes minor hairline cracks in the corners. This is physics, not bad plastering.
- Accidental Damage: Moving furniture, kids playing cricket indoors, or installing new AC units results in dents, chips, and holes.
- Moisture Issues: A small plumbing leak upstairs might cause a damp patch on the ceiling. Catching it early saves the whole ceiling.
The Pitch: “Sir, just like your car needs a service even if it’s a Mercedes, your walls need a check-up to keep them looking brand new. Our AMC covers these inevitable wear-and-tear issues.”
2. Structuring the “Kanish Care” Plans
Don’t offer a vague promise. Productize the service into tiers.
Plan A: The “Peace of Mind” (Residential)
- Frequency: 2 Visits per Year.
- Inclusions: Inspection of all walls, filling of hairline cracks, touch-up of accidental chips (up to 5 sq ft), and re-sanding of rough patches.
- Ideal For: Homeowners, especially those with kids or rental properties.
Plan B: The “Corporate Shield” (Commercial)
- Frequency: Quarterly (4 Visits per Year).
- Inclusions: High-impact repair (corridor scuffs), corner bead checking, dampness audit (using moisture meters), and “Silent Hours” execution (working at night to avoid disrupting the office).
- Ideal For: Offices, Showrooms, Schools, Hospitals.
3. Pricing Your AMC for Profit
Pricing must cover your travel + labor + material + margin.
- The Formula: (Cost of 1 Man-Day x Number of Visits) + Material Buffer + 30% Margin.
- Example: If a mason costs ₹800/day and you offer 2 visits, your cost is ₹1600. Add material (₹200) and admin (₹200). Total Cost = ₹2000. Price the AMC at ₹3000 – ₹3500 per year.
- The Psychology: ₹3500 sounds cheap to a homeowner who spent ₹50 Lakhs on the house. It’s a small insurance premium for keeping their investment pristine.
4. Operational Execution: The “Service Van”
Do not pull masons from active construction sites to do maintenance. They will hate it, and your main project will suffer.
The Strategy: As you grow, dedicate one two-man team (a senior mason and a helper) as the “Service Squad.” Equip them with a bike or small van stocked with repair tools, small bags of gypsum, paint touch-up kits, and cleaning supplies. Their only job is to run the AMC route. This ensures they are efficient, clean, and customer-service oriented.
5. The “Trojan Horse” Strategy (Upselling)
The real value of an AMC is not the ₹3500 fee; it is the access.
When your team visits a client’s house 6 months later for a check-up, they spot opportunities.
- “Ma’am, I see the paint in the kitchen is fading. Since we are here, shall we give you a quote for a fresh coat of paint?”
- “Sir, you mentioned you wanted a false ceiling in the kid’s room. We have a special offer this month.”
Because you are already a trusted insider with a contract, you bypass the competition. You become the default contractor for all their future needs.
Frequently Asked Questions (FAQ)
Q1: What if there are no repairs needed when I visit?
You still visit. Inspect the walls using a torch. Check the moisture levels. Clean any dust from the cornices. The client is paying for the assurance that everything is fine. The visit itself creates value and reinforces the relationship.
Q2: Does the AMC cover repainting?
No. Be very clear in the contract. “We repair the plaster surface only. Painting over the patch is the client’s responsibility (or charged extra).” Otherwise, you will end up repainting whole walls for free.
Q3: How do I sell this to a builder?
Pitch it as a “Handover Warranty.” “Mr. Builder, buy this 1-year AMC from us for all your flat buyers. You can market it as ‘1-Year Free Wall Maintenance’ to your customers. We will handle the headache of their complaints.”
Conclusion: From Transaction to Relationship
Contracts create value. A plastering business with 100 active AMC contracts is worth far more than one with zero. It shows stability. It shows that clients trust you enough to let you back into their homes. At Kanish Plasters, we encourage our franchisees to think long-term. Don’t just build the wall; protect the wall. That is how you build a legacy business.
