I was part of a panel discussion regarding how to grow service at a life safety industry trade show. Many of the firms attending were planning to expand their brand by adding an additional product line. Some of the mentioned additions included fire alarm, sprinkler, sound, security, etc. The primary justification for adapting their business model is the lucrative service, RMR, available for this type of equipment once installed. Most agreed that service was the goal as profit margins, on the installation of these systems, wasn’t very attractive. Additionally, a significant investment would be required in design and engineering skills and a fairly steep learning curve. Everyone seemed to agree that it was worth the effort and risk.
Continue ReadingHow to Increase Service Profit – Poll Results
I conducted a poll of over one hundred Fire Alarm and Sprinkler firms on the best ways to improve profit margins in service. The participants were a cross section of my clients, and non-client firms that are in my database.
- Focus on RMR (Service Agreements)
- Raise hourly rates and minimums
- Service Sales training
- Dedicate someone to selling service agreements
- More full coverage agreements and less inspections and repair
(Other items: Improve customer service skills, manage manpower, etc.)
Continue ReadingWhy Invest in Service Marketing?
Let’s state the obvious; Service is good, Service revenue is good, serving our customers is good….no need for debate or discussion. Everyone acknowledges service is profitable and it helps retain customers. I have never dealt with someone who stated, “I make so much money installing products and systems I don’t need the service revenue.” When the discussion turns to investing in service marketing the conversation usually gets apologetic, or some just plead guilty. Very few firms set aside funds for service marketing aids or service sales training. Technical training sure, software investment often, but putting some commitment and dollars specific to service marketing, it’s the exception. That leaves sales and marketing efforts that are dated and out of touch with current conditions. Sales reps have no formal service sales training and utilize service agreements that demonstrate little value to prospective clients.
Continue ReadingIt’s All About the Base
A key to success for any business is growing its customer base. It’s typical when speaking to a firm they refer to “their base”, as repeat customers. That may include clients who come back to them for equipment purchases, upgrades, enhancements, repairs, service, etc. This is a fair representation of a customer base, but it doesn’t differentiate the most sought after base by most highly successful firms.Continue Reading
Is it Time to Get Out of the Fire Alarm Installation Business?
This year I’ve been asked about “getting out” of the installation business more than any time in the past. Not surprisingly Covid has affected owners and operators’ perspective on their firm’s financial health. It’s raised a serious concern regarding their current business model moving forward. Some firms haven’t been affected as they had projects in the pipeline or were able to capitalize on existing relationships. Unfortunately, many have seen projects delayed, or cancelled. Almost all are concerned about eroding margins when they’re successful winning jobs. The margin issue is made worse by rising prices from vendors and subcontractors.
Continue ReadingService Sales Training ROI
Most firms recognize the importance of providing training for their technical staff. It may be provided by outside sources or done in-house using mentoring programs. Technical training is readily available for installing, or repairing products or systems, as well as, working with software. The cost can vary from thousands of dollars to no charge from suppliers. Business owners and operators typically don’t even consider the ROI as they know it’s a necessity, not an option. The inability to resolve technical issues in a timely manner is expensive and directly impacts customer satisfaction.
Continue ReadingBest Sales Training Method?
In the beginning sales training was OJT (On the Job Training). Early on articles and books were published about selling. Then recordings became available. Next came seminars at the local hotel. For firms that could afford it sales trainers were hired. Almost all of the messaging was generic and motivational, rather than content driven. Continue Reading
Are You Selling or Marketing Service Agreements?
Selling Service Agreements should not be confused with Marketing Service Agreements. Almost every firm I’ve worked with over the years has the ability to sell service agreements. It’s not uncommon to find the only reason a firm provides service agreements is because clients ask for them. In these situations it’s clear these firms don’t actively market service agreements, they sell them when necessary. Continue Reading
Customer Service and Sales Training
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 manufacturers training classes, while others utilize trade organizations. Technical training is a priority. Trained technical staff help ensure a firms’ products are supported. It’s not an option, it’s a requirement. For many firms that’s the extent of training provided.Continue Reading
Systems Integrators Focus on Service Marketing
More than ever system installers need to differentiate themselves from competition if they are to be successful. Not only do they need to be able to present the technical advantages of their products and systems, they also need to have a total solution. That total solution means a well thought out service agreement. A major component to their value proposition is the availability and quality of their service offerings. Owners and operators of buildings are looking to partner with firms that can create service agreements that are specific to their needs, not cookie cutter solutions.Continue Reading
Perfect for all personnel involved in service sales, this book describes the keys to success for selling service on technology-based products and systems. Anyone indirectly involved in service sales such as technicians, engineers, administrative assistants and others who work with customers will also find the book beneficial.
Readers will learn the unique skills and methodology required to be successful from the industry expert.