By John Kenney, Cotney Consulting Group.
Lead generation is often the name of the game in the roofing industry, and it is an incredibly important part of running a successful contracting business. But you can also grow your profitability with the leads you already have by maximizing the revenue you make with each service call. By expanding the value of every service call, you can significantly improve your bottom line without having to find new clients or increase the volume of jobs your team is doing. Keep reading to learn helpful strategies to improve your service calls from Cotney Consulting Group CEO and industry expert John Kenney.
Before you can increase your revenue, you need to know where you stand. What is your current average revenue per service call? To find out, take all your service tickets for a given period (preferably a year), calculate the total revenue from those calls and divide that by the number of service tickets that generated revenue. This number will give you a clear picture of your average service ticket.
For many service industries, the average ticket is often less than $200. In roofing, the average may be higher due to the nature of the work, but it's still essential to measure where you currently stand.
Take action
Stop and calculate your average service ticket before reading further. Knowing this number allows you to measure improvements as you implement the strategies outlined below.
Once you've identified your average service ticket, let's explore the impact of increasing that number. For example, if your average roofing service ticket is $300 and your team runs 3,000 service calls per year, your annual revenue from service calls is $900,000.
Imagine increasing your average ticket by 50% or even 100%. Here's how the math looks:
As you can see, a modest increase in your average ticket can lead to significant revenue growth. You're not taking on more jobs — you're simply making more money from each one.
There are several strategies to boost your revenue per service call by giving your customers more options. Offering a menu of services allows clients to choose higher-value options, increasing your ticket size. Here's how you can apply these principles to your roofing business:
To successfully increase your average ticket, it's crucial to have buy-in from your team. Every technician must understand the importance of offering options and upselling additional services. Leadership plays a critical role here — technicians must be trained and coached to follow these practices consistently.
When technicians rush through calls or fail to offer additional services, they leave money on the table. In one case, a technician who didn't follow the process cost the company over $10,000 in lost revenue. Ensuring your team complies will allow you to maximize your profits from every job.
As the saying goes, "What gets measured gets managed." Track your average service ticket over time to see how your changes impact revenue. You'll be able to identify which technicians excel and which need more training. Additionally, keep a close eye on your revenue per call and continually look for ways to offer more value to your clients.
One of the key insights in this article is that people make purchasing decisions based on the options you provide. Like a fast-food menu, customers are more likely to choose something in the middle when presented with multiple choices. In the roofing industry, this means offering several service levels — such as a basic repair, a mid-range option with additional maintenance and a premium option with long-term warranties and upgrades.
Customers don't want to be told what they need — they want to choose what works best for them. By giving them more options, you allow them to make informed decisions, and often, they'll select higher-priced services than you might expect.
The strategies we outlined are straightforward but incredibly powerful. You can significantly increase your revenue per service call by offering more options, training your technicians to upsell and regularly measuring your progress.
Start by calculating your current average service ticket and aim to double it. With a well-implemented plan and leadership that holds everyone accountable, you can take your roofing business to the next level — without taking on more jobs. Take action today, and watch your revenue grow.
Original article source: Cotney Consulting Group
Learn more about Cotney Consulting Group in their Coffee Shop Directory or visit www.cotneyconsulting.com.
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