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Getting asked to sign a contract is incredibly nerve-racking; putting your name down on that dotted line can cause heart palpitations even if you are confident that it is a suitable agreement at the right price. One area in which companies have started asking clients to sign contracts is for drain maintenance chemicals. Many drain maintenance companies have begun providing their solutions in “program agreements” - a contract in which a company agrees to provide drain maintenance chemicals regularly in exchange for scheduled payments.

This article explains the pros and cons of signing a drain maintenance program agreement. It will help you understand whether buying drain chemicals on an ad hoc basis or in a contract is right for you. Here at State Chemical, we offer both solutions: some of our clients utilize program agreements, some buy on a transactional basis, and some use a combination.

A Drain Maintenance Program Agreement Provides You with Regular Delivery of Chemicals

A program agreement is a contract in which a company agrees to provide drain maintenance chemicals regularly in exchange for scheduled payments. By signing a program agreement, the company agrees to supply provide you with equipment and chemicals and you agree to pay for that service.

Most companies that provide drain maintenance program agreements provide their clients with (1) equipment to dispense chemicals into their drains and (2) the chemicals. The equipment is provided shortly after the contract is signed and the chemicals are then shipped to you at regularly scheduled intervals. Most clients receive products monthly.

A company will provide dispensing equipment that takes chemicals from a bucket and slowly drips it into a drain. Then, as the bucket of chemicals is used up, the company will send you a new bucket.

The alternative to signing such an agreement is to buy the equipment and chemicals individually. You must sign a new purchase order with the company each time you need new chemicals.

Price is often a Deciding Factor in Whether to Sign a Program Agreement

Pro: Program Agreements Provide Price Stability

One of the significant benefits of program agreements is that you have price stability. If you sign a program agreement, that price is locked in. In the contract, the company usually agrees not to raise prices or agrees only to raise prices by a certain percentage. The company cannot drastically raise prices. You will know in advance how much you will pay monthly for your drain maintenance solution.

In contrast, if you do not sign an agreement and instead decide to buy drain maintenance chemicals as needed, the company can raise its prices anytime.

Con: Program Agreements Often Lack Price Visibility

One of the negatives of program agreements is it can be challenging to see what you are paying for on your invoice. Many companies provide a single line-item invoice for an agreement. That line item includes the collective price for shipping, equipment, chemicals, and service. In contrast, if you buy each item individually outside of a contract, you can see exactly how much each item costs. Your invoice will have a separate line for shipping, equipment, chemicals, and service.

Program Agreements Provide Stability, While Ad Hoc Buying Provides Flexibility

Pro: Program Agreements Provide Stability

Program agreements provide stability. When you sign a program agreement, that price is usually locked in. As discussed above, the company cannot significantly raise its prices. Thus, when you sign a program agreement, you know in advance exactly how much you will pay each month.

Pro: Program Agreements Provide Peace of Mind

Drain care tends to be an out-of-sight, out-of-mind issue. One of the major drawbacks of buying ad hoc is having to remember to order the products you need. In contrast, program agreements provide stability in receiving the products you need – products will be shipped to you at a regular cadence. Therefore, you know you will not run out of drain maintenance products. The program agreement allows you to be more proactive with your drain care.

Con: Program Agreements Provide Less Flexibility To Cancel and Modify

Buying products ad hoc provides flexibility. If you purchase ad hoc, you can stop ordering at any time. In contrast, some contracts lock you in to buy products for a set time period. In signing a program agreement, you should pay attention to the cancellation terms. It is important to note whether the contract allows you to cancel when necessary. If the company does not have flexible cancellation terms, you cannot cancel at any time.

If you decide to purchase products on an as-needed basis, it is easier to add and subtract products from your order. It is also easier to change the dosing if your chemical needs change.

The Punch Line: Program Agreements Provide Stability, While Ad Hoc Buying Provides Flexibility

Deciding whether to sign a drain maintenance contract can be a difficult decision. Program agreements provide you with price stability and regularly scheduled products, so you know your drains are taken care of. In contrast, buying on an ad hoc transactional basis can give you price visibility and flexibility regarding what and when to purchase.

Regardless of how you buy, you next need to decide what products to purchase. You can purchase most products through a one-time transaction or a committed program agreement. For example, you can purchase either a floating degreaser or a biological product on a program agreement or transactionally.

At State Chemical, we offer ad hoc and contractual purchasing to suit individual needs. For both, we provide service along with your purchase. For example, we will change out the bucket of chemicals and fix or replace the dispensing equipment as needed. Contact us to discuss whether ad hoc or contractual buying will work best for you.