When air-conditioners were sold with one year guarantee, SSDs used to send AMC proposals by
post and through personal delivery to the customers. Many would enter into AMC and send in
their cheques by post! Companies on the other hand would never hesitate to enter into AMC contracts.
We would have many good working window air-conditioners in stock and in case an air-conditioner is
brought to the workshop for gas charging/ compressor replacement, a stand-by unit would be provided.
In fact for companies and others, the units would be brought to workshop for water-wash and return
once in a year. (New name: Put-down service). Also the very name SSD is recent . All the shops were known as “Air-conditioning and Refrigertion Engineers” and all of the business was repairing, maintaining under contract. A few new machines were sold in any given year.
RESULT: Revenue loss. Hardly any AMC business is obtained these days.
Purchase of air-conditioners were “Capital” in nature and required Board sanction. Companies found
that it was easy to get air-conditioners on rental and write off the expenditure as expenses. Customers used to be charges anywhere between Rs.500 to Rs.800 per machine per month. Business owners used to buy old units and refurbish them , provide with new grilles and keep them ready to be given for rent.
The minimum rental period was six months. NRI’s coming back to their homes during summer insisted that parent’s provide air-conditioners and they in turn asked for 3 to 6 months rental contract.
This was a good revenue stream for many. After introduction of splits and disposable income increasing this business segment is totally lost. Air-conditioners are ordered with impunity by executives in the Purchasing department.
RESULT: Revenue loss.