Whether you are a one-person operation and want to stay that way, or a 200 tuck company, you need to implement systems and procedures. Here's why.
Today customers demand having their expectations met exactly the same way every time they buy a service or product. If you can't deliver consistently "they" won't call you back.
Consistency is the reason many companies follow franchise models like McDonald's, Best Buy, and Dunkin Donuts. Each of these franchises' have a manual on company standards and checklists to deliver everything the consistently each and every order. Notice their people always ask, "Would you like a pie with that?" It's in their "how-to-do-it" manual. They understand that consistently asking customers what they desire using forms for comfort, health, safety, property or savings has proven to result in 65 percent more sales.
The best contractors increase their average repair and replacement ticket and prevent costly callbacks by using proper call handling procedures, onsite call assessment forms, pricing standards, and work delivery checklists for every job they do.
Today, customers expect upfront repair and installation pricing. Given the fact that the average technician is only 52 percent efficient over a 12-month period, Flat Rate pricing has become the only way to for contractor to make a fair price without alienating their customers.
In addition, the best contractors use invoices and proposals that provide payment protection terms, as well as, liability protection terms and conditions. The best part about flat rate pricing it provide you with pricing credibility and is its ability to help prevent competition by quickly pricing and proposing work right on the spot.
Tracking your daily billable hours to service calls and jobs is the single best way to know what is needed to stay busy, as well as, to justify your next hire. Tracking also allows you to implement such things as performance based pay for technicians and installers or when pricing needs adjusting to remain profitable.
Tracking billable hours, number of service agreements sold, and accessories sold and replacement sold per number of call made or hours billed to a job versus job labor budget is simple. A one truck company can use a pocket note pad and log billable hours after each call, more than one technician or installer have then call in post call to debrief.
Most contractors know if they are profitable without having to looking at their financials by simply tracking billable hours.
Most HVAC business owners find it difficult to find the time to learn best practices. It is important to find the time in order to survive. At the very least you should be reading HVACR Business or attend GrowMyHVAC.com's FREE business training webinars offered through its Business Builders Club , participate in their forums, follow a few threads, ask a few questions, or simply attend.
This is the most often overlooked business system no matter the size company. HVAC business owners know they need to keep their employees motivated and should have systems for this. Performance based pay should be integral for management, office and field staff. But how do owners themselves stay motivated?
It happens to all of business owners - when we're faced with obstacles, we often lose our focus and drive. As an owner, you are faced with business challenges of every magnitude on a day-to-day basis and it's hard not to feel overwhelmed. Being your own boss is a rewarding experience despite the challenges. The best contractors employ these ways to stay motivated:
The above examples demonstrate why consistency is needed. Naturally, there are other business systems and procedures you can easily put in place to help make your business operate consistently efficient.
Wendell Bedell is CEO of www.GrowMyHVAC.com, a division of Building Services Institute, Inc., the nation’s premier online HVAC staff training and process implementation support membership organization, focused on helping contractors grow and become more profitable. His email is wendellb@GrowMyHVAC.com. To see what the positive financial impact is to your business by implementing the above professional service call handling blueprint simply go to bit.ly/contractorneedsanalysisor call 800.240.2823.
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Whether you are a one-person operation and want to stay that way, or a 200 tuck company, you need to implement systems and procedures.