Does Your Field Service Company Suffer From These Profit Leaks?
Does Your Field Service Company Suffer From These Profit Leaks?
Lead In: Profit leaks are hiding in plain sight. It’s time to plug them.
After processing over 300,000 work orders every year for Field Service Companies, we found that a lot of HVAC/Equipment Service Companies are like a leaky bucket.
They’re leaking profits. And a lot of times these “Profit Leaks” are hiding in plain sight.
But instead of plugging these holes first, they hire more technicians to grow their revenue.
We don’t blame them. That’s what they know best. But the thing is, hiring more techs while their business is leaking profits only makes things worse because the more techs they add, the more and faster profits leak.
If you’re processing over 2,000 work orders every month, there is a high chance your company is suffering from one or more “Profit Leaks” that each could be costing you $100,000-500,000+/month in profits.
The more work orders you process, the more and bigger the leaks potentially are.
To help you find these leaks before they drain your profits, we are sharing with you a series of questions that we use in our “Profit Leaks Audit” we offer to companies to pinpoint where they’re leaking profits and how much.
Let’s dive in.
Profit Leak #1: Real-Time Processing of Service Requests
How many service requests (calls, emails, portals) are you getting a day?
How many service requests are you processing in real-time?
Out of those you’re not resolving in real time, how many don’t convert to work orders?
Profit Leak #2: After Hours Service Requests
How many service requests are you getting outside of work hours each week?
How many of these are canceled or don’t convert to work orders?
Profit Leak #3: On-Site Work Orders
How many new on-site work orders does your technician generate each week?
How many estimates are going out in real-time while technicians are on-site?
How many of these are canceled/rejected/don’t turn into work orders?
Profit Leak #4: Invoice Disputes
How many invoices per month are being disputed?
How long does it take to resolve a dispute? How many service requests do you miss out on meanwhile?
Profit Leak #5: Credit Hold and Collections
How many accounts per month are being put on credit hold?
How many work orders do these accounts usually generate each month?
What percentage of monthly sales goes to external (third-party) debt collection?
How many accounts on credit hold/debt collection never reorder (lost customers)?
Profit Leak #6: Preventative Maintenance
How many active accounts do you have?
How many of them have recurring preventative maintenance programs?
What percentage of monthly sales goes to external (third-party) debt collection?
Profit Leak #7: Employee Productivity
How many $50/hr employees are doing $5/hr jobs?
How many invoices does your staff currently process?
Profit Leak #8: Multiple Truck Rolls/Triage
How many $50/hr employees are doing $5/hr jobs?
How many invoices does your staff currently process?
How many multiple truck rolls per service request do your techs go out on?
Profit Leak #9: Inactive Client Accounts
How many clients haven’t put in a service request in the past six months or longer?
Ok, that was a lot of questions! But you’re still here, right? 🙂
Answering these questions is critical to uncovering where your business could be leaking profits.
And by now, you’ve probably identified one or more leaks that could be costing you hundreds of thousands in profits (and maybe even millions every year).
Finding these leaks is the first big step. But then the question is, how do you plug these leaks?
Check out our “Profit Leaks Fix” series tackling each of the areas above to help Field Service Companies keep and add more profits to their bank account without hiring new techs (or while hiring fewer techs).
Meanwhile, if you’d like to do a deep dive into these questions…
Right now, we’re offering the “Profit Leaks Audit” to help HVAC Equipment Service Companies uncover where they’re leaking profits and map out an action plan to plug the holes in their business and add more profits to their bottom line.
As you can imagine, it takes a lot of work to dive into your business, uncover these leaks, and map out a custom action plan for you. We could easily hang a $1,000 price tag on this and have our pick of people. But because of everything going on with COVID and the economy, We don’t want to make it any harder for HVAC Equipment Service Companies to keep more profits in their bank accounts.
We’ve decided to offer ten slots of the Profit Score Quiz (each worth $1,000) for the next ten executives who reach out to us to run their business through this.
If you’d like to claim your “Profit Leaks Audit”, send us a message and let’s schedule a Zoom call.
We’d love to hear from you on how many Profit Leaks you’ve identified in your business. Leave a comment below with your answer.
Yassin Shaar
Chief Growth Officer
