AMC Management

Comprehensive vs Non-Comprehensive AC AMC: Margin Analysis

Service center owners constantly debate: Should we offer comprehensive contracts covering all spare parts, or stick to labor-only non-comprehensive agreements? Here is a breakdown of the risks, margins, and operational requirements.

Profit margin and cost analysis spreadsheet comparing AC AMC contract types

Non-Comprehensive AMC: Low Risk, Steady Cash Flow

Covers routine servicing (2-3 visits) and unlimited breakdown attendance. Spare parts (capacitors, fan motors, gas refills) are billed separately. Margin: 60-70% on labor, plus 30-40% markup on parts. Best for older AC units (>5 years).

Comprehensive AMC: High Revenue, Calculated Risk

Covers routine servicing plus all parts, PCB repairs, and gas charging (excluding compressor replacement in some tiers). Commands Rs 4,500 - Rs 7,500 per unit. High cash flow upfront, but requires strict pre-inspection.

Mandatory Pre-Inspection Before Signing Comprehensive Deals

Never sign a comprehensive contract without checking compressor winding resistance, existing gas pressure, and coil corrosion. Document the pre-existing equipment health in ACServiceOS.

Managing Inverter AC PCB Exposure

Inverter PCBs cost Rs 4,000 - Rs 9,000. Comprehensive contracts must explicitly require customers to install a dedicated voltage stabilizer with high-voltage cut-off to prevent catastrophic PCB burnouts.

Related Software Workflows

Official Indian Industry & Regulatory References