Comfort Club agreement

Two tiers, two economic profiles

A Preventive Maintenance agreement — the PM-only or basic tune-up tier — is the entry-level HVAC residential agreement at the $149–$229 per year band. It bundles two annual tune-up visits and not much else. Industry retention on PM-only agreements typically falls in a 55–70% annual band: customers cycle out on price, on lapse, or on switching providers when they have a service event.

A Comfort Club agreement is the premium tier at the $349–$649 per year band. It bundles the same two annual visits with priority dispatch on emergency calls, a defined repair discount (typically 10–15% off labor and parts on repairs during the agreement period), filter delivery, and in some shops a diagnostic-fee waiver. Industry retention on Comfort Club agreements falls in a 78–92% annual band — materially higher than PM-only because the priority dispatch and repair discount actively engage the customer through the year.

Margin and retention math

Comfort Club gross margin generally tracks in the 45–55% range — meaningfully higher than PM-only on a percentage basis and dramatically higher on an absolute-dollar basis given the price-tier difference. The compounding advantage is that retention compounds over multi-year holds: a Comfort Club book at 85% retention regenerates ~3x slower than a PM-only book at 60% retention, which means the marketing-spend requirement to maintain the agreement count is structurally lower.

The AOR connection

Comfort Club is the primary vehicle for AOR (Agreement on Repair) attach. A service technician on a repair call has a far easier upsell when the offer is a high-value Comfort Club agreement at $399/yr that includes a repair discount the customer can apply to the in-progress repair, versus a PM-only agreement at $179/yr with no immediate financial benefit. Shops that run Comfort Club as the named upsell tier and quote the AOR offer with the repair invoice are the same shops that run 30%+ AOR attach rates.