Part 8 – Improved Efficiency
Efficiency is secondary to immediate profits
Our pricing system based upon customers retention levels demonstrated in your consumer study can “cover a multitude of efficiency sins” and turn you into a 22% profit company in 120 days
The biggest mistake owners make is waiting for efficiency improvements to increase profits rather than using the price tool
On a good day….. Running a contracting company is sort of like trying to put up a tent in a windstorm, like “whack a mole “no sooner is one problem fixed and then another pops up.
Yup, plan for the worst and hope for the best.
Once we get your profits up to 22%:
let’s take a look at CSR and Tech closing rates , average tickets , conversions from tune ups to replacements , the % of service agreements sold , cost of direct labor ,
And overhead. Then we might be able to even lower prices to increase retention.
To do this first … before raising profits … really means there is a 90%+ chance you will miss the profit goal
48% + profit points to pick from > Pick up 10% profit getting your pricing right , get the right sales training raising your average ticket 25% ( ok that increases work time and decreases travel time ) ok another 5% profit, put some GPS that gets your staff under control and cuts your fuel and maintenance cost OK another 2% profit , get your billing and parts ordering under control another 2% profit , Fire dead wood before they chase away your customers or waste or leads, better let do personality testing before you hire them and reduce turnover , ok another 4% profit , extend service hours by hot seating the trucks ( ok you will need to call me to find out what that is ) pick up another 5% profit . more profit recording calls to so you can , train and track CSR’s , more profit with consumer financing that gets customers to buy more , more profits cutting credit card fees , more profits doing automatic water tests , more profits adding new services for old customers that love and trust you , more … more … more …more … profits