How to Make a Consistent Profit on Service Work
Service work also involves a lot of guesswork.
Whether you have 2 trucks or 200, each service professional works differently and there’s a lot of things that could go wrong. So how can you ensure you make a profit on every single service call?
1. Charge a service call/diagnostic fee
Always charge a fee for the service call or diagnosis of the problem. And NEVER refund this fee back to the customer. Also, we recommend charging only one fee. Don’t charge multiple fees for gas, travel or extra distance. More line items make customers feel like they’re being overcharged.
2. Charge for every repair every time
Typically your service call fee will not cover the actual cost of getting a service professional to the customer’s home or business. Therefore, it’s important to make sure that all of your guys and gals are charging for the work they’re going.
Take the time to review your work orders and look for missed items, and use them as teaching or training moments.
3. Use flat rate service pricing
Using flat rate pricing ensures you’re making the most money on your best technicians. This is crucial for a lot of reasons (check out this video for further explanation). It also makes sure you’re charging a fair price for the customer, AND for you. Along with that, you have to make sure that your flat rate price is based on an hourly rate that covers all your overhead.
This guest blog was written by Anastasia Harold, Coolfront Affiliate Manager, Western States
Guest blog by Anastasia Harold – Coolfront Affiliate Manager Western Region