I was part of a panel that discussed growing service at the ESX Conference. Many of the firms attending were looking to expand their brand by adding an additional product line. The primary justification for adapting their business model is the lucrative service, RMR, available for this type of equipment once installed. This must be the case as profit margins, on the installation of the systems, was not very attractive. Continue Reading
A recent poll by a trade publication asked readers to identify the Top 3 effective ways to increase profits for their business. Traditionally polls of this nature generated answers that were focused on reducing costs and improving productivity. I found this poll interesting in that the responses went in another direction.Continue Reading
Firms in the service industry make significant investment and effort to provide technical skills training for their employees. Many companies train their staffs locally, some send them to manufactures training classes, while others utilize trade organizations. Continue Reading
Most medical device manufacturers acknowledge service should be the most profitable part of their business. In fact, analysts have estimated the profitability of the service business is nearly 60% higher than equipment sales. Continue Reading
This past month I conducted workshops for a nationwide audience of systems integrators in Orlando,FL. Honeywell brought together over fifteen hundred Notifier and Gamewell/FCI-Silent Knight distributors to discuss issues that are important to the success of this important audience. Beyond new product and marketing announcements, service Continue Reading
For over twenty years I’ve been conducting a biannual survey of fire alarm and sprinkler system end users that begins with the same question: Why do you purchase a test and inspection agreement on your life-safety system? Every year the number one answer has been the same. “It’s required by code.” What has changed over the years is the number Continue Reading
Let’s assume all new service marketing programs begin with well thought out strategies and goals. We will also assume detailed plans have been developed to map out the tactics, tools, and resources required to launch the program and meetings have been held to introduce and discuss the new initiative.
Most companies know service is their most profitable business. The majority understand selling service agreements is the best method to capture this renewable, high margin revenue and build the value of their company. Many believe they are doing a great job growing this business. For almost all the only measuring stick is comparing results to previous years. Every firm can do a better job growing their service business. Far too many continue doing the same things they’ve done year after year. For those that have adapted their business model, the results have been dramatic. For those that haven’t, the opportunity is there for the taking. Continue Reading