Another important reason to sell service is that it provides YOU with predictable and renewable revenue streams.

For example, when a product sale is made, that is generally the only revenue you will receive from that customer for about 3-4 years until your customer decides to replace the product with something new.

It is a very different model when you sell a service contract. Installation is like a product sale, but technical services are generally renewable annually – allowing you to continue to make revenue from your customer each year.

When you think about it, by using a “product-only” sales model, you are missing out on a steady stream of potential revenue that you could continue to receive from your customers each year.

Additionally, after you have established a service contract with customers, they are much more likely to come to you for additional product purchases – rather than shop around for the best deal.