Why is your Home Annual Maintenance Contract (AMC) a thing of the past?
Annual Maintenance Contracts(AMC) have been a preferred method to save money on annual spend a homeowner or tenant incurs towards any repairs and breakdowns. AMCs are typically an annual contract between a maintenance company and a homeowner or tenant where the maintenance company charges an annual fee in advance and provides preferential service to the customer without charging for every inspection visit. The AMC is supposed to ensure peace of mind along with the savings for its customers. However, it has been observed that it falls short of this promise as the customers feel the pinch of having to pay a high annual charge, especially when in many years the contract doesn’t get fully utilized. Over the years it has been realized that the AMCs have a number of drawbacks. Some of these drawbacks have been listed below.
Key Drawbacks of an AMC
- You pay for the annual charges in advance even in case there is no breakdown or repair needed in the entire year
- You only get selected services primarily Plumbing, Electrical and AC included in the Maintenance Contract, and not cleaning.
- You cannot cancel the contract in between even if you’re moving or are not happy with the service.
- You don’t know which professional will come for repair and how skilled and experienced he or she is; and
- You don’t get any digital records of the spend you have done over the last few years.
Overall, with an AMC, there is hardly any real savings realized to the Home Maintenance spend and is generally considered as a necessary evil. Moreover, over the last few years, the price of the AMC has dropped significantly by new providers in an attempt to capture market share forcing a drop in quality of service promised by the service providers. There is a need for another solution that enables the following –
- Consolidate other spends including cleaning, painting, etc. into the contract
- Flexible when it comes to choosing the tenure of the contract
- Ensures service levels don’t fall after the customers have signed up; and
- Prohibits paying huge advance payments
Subscription or membership based services are emerging successfully around the world as they bring far more value to the customers while ensuring consistency in service levels. A subscription promises preferential service to the customer at a small monthly fee and giving them access to a larger pool of services, at highly discounted rates. Moreover, members get to enjoy a number of exclusive deals throughout the year.
At HomeGenie, and true to our promise of making Home Maintenance Simple, Reliable and Affordable, we launched, HomeGenie+, a unique Home Maintenance membership program with 3, 6 and 12 month plans to provide our members with the following benefits.
- Free Unlimited Callouts
- FLAT 15% Discount on all Services, including cleaning
- Only 4* and more Rated Experts
- Dedicated 24×7 Support Staff
- 30 Day Extended Service Warranty
- AED 1000 Protection Cover
- …and many more exclusive member-only benefits.
Let’s take an example – A 3 bedroom villa has an annual maintenance cost of 4500 AED which includes AC, Plumbing, Electrical, Pest Control, and selected Cleaning Services. This is an advance payment and does not cover other spends like General Cleaning, Handyman and other services or breakdowns that might occur including Appliance, Painting, Gardening, etc. However, a HomeGenie Membership for 12 months for a similar villa costs only 75 AED per month or 850 AED annually and give your access to a 15% discount on over 150+ services. This cost is usually covered in less than 5 visits by home maintenance professional during the year.