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 ReadingAre 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
New Service Sales Environment – Navigating COVID 19
Salespeople are resilient by nature. A career in sales comes with a large dose of rejection, sometimes daily. What we can’t allow is to be defeated by this challenge. No question the pandemic has changed the market environment and requires service sales people to adapt. What hasn’t changed is the need to generate sales. You need them to generate business to sustain your income, and so does your company.Continue Reading
Recession Proof Your Business
The following entry was written in early 2018. As of today the worst case scenario is not as hypothetical as it once seemed. For those firms that grew their renewable revenue over the last two years there may be a
cushion to the fall. For those that haven’t it’s never too late.
The economy is strong, construction cranes dot the landscape and plans are in place for future expansion by businesses nationwide. Many firms are either planning to purchase new equipment or retrofit what’s in place. Times are good in the business community. Installers and contractors are hustling to get as much of this business as possible. For many firms the biggest challenge is staffing to support this activity. For those of us who have been around for awhile, we’ve seen it before. We want to believe this cycle will last forever. We know it won’t. It’s just a matter of time before things slow down, or in worst case come to a halt.
Compliance Reporting: Focus on Solutions Not Inspections
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
Service Marketing Goal Setting – Reality Check
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.
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Don’t Overlook RMR Service Revenue
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