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why hvac service agreements are a gold mine hi this is josh horn of horn valuation i help owners build value and sell their business why are hvac service agreements at goldmine do you know what they are of course you do youre an owner or youre involved in an hvac company you know what a service agreement is you contract with your customer to service their home or business probably for a year and they pay up front and in doing that they agree to call you to do the tune-ups and the maintenance if necessary now theyre typically not required to do that but if theyve fronted the money theyre more likely to call you and get you to come out why does this matter ill give you a quick story i have a real life story from my home in december of 2017 just a few years ago i was working out in my basement and i noticed that there was a small trickle of water running away from the furnace i thought oh probably no big deal right theyll come out patch that up and ill be in good shape i was on my