Average Repair Invoice (too low)

Valued Contributor

So, for the last few weeks we have been talking about lead generation, marketing and several other areas in the equipment sales arena. Let's switch gears this week and talk about technician performance. It does not matter what trade you are in these tips will help you all. We should always be looking at technician performance, but are they truly operating as a well-organized team, or do you just have a few superstars that are carrying the load for your companies? How many more superstars could you have if you held everyone to the same standard? Let's look at some possible problem areas and solutions that as owners or managers you should always have a grasp on. If your average repair invoice is low here are the areas I have always looked at and held myself and my teams acountable to:

  1. You’re not priced properly.
  2. Your closing ratio is sub-standard and does not meet the current industry KPI.
  3. Your technicians are not offering club memberships, enough accessories/add-on products and services.
  4. Your technicians are not offering options.
  5. Your technicians are not offering financing and/or you’re experiencing a sizable number of credit rejects.
  6. You’re not charging service fees and trip and fuel surcharges, or they’re not high enough.
  7. Your technicians are not getting authorization of the service fee before doing the diagnostic.

Here are some possible management solutions for you for one through four. We will cover five through 7 later in the week.

Management Actions (solutions):

  1. Price yourself properly.
  •   Review your pricing formula.
  •   Conduct a random sample job costing.
  •  Consider monthly price increase to cover increased costs.

2. Improve your closing ratio.

  •   Review your dispatching procedures.  Make sure that the right technician is going to the right appointment.  For example, you want your best communicator to go to a home with a system that’s passed its life expectancy (to potentially convert the lead), and you want your best technical person on a younger system that’s having problems.
  •   Implement a call priority system.  The older the system; the sooner you want to have a technician at the home.  If necessary, reschedule other appointments and waive those homeowners service fee.
  •   Review with your technicians the importance of spending time with clients. 
  •   Review with your technicians the importance of both their appearance and presentation. 
  •   Ensure that your technicians are conducting whole-house inspections and asking homeowners plenty of questions.
  • The operations manager should occasionally be riding along with all of your technicians, especially those that are failing to achieve acceptable performance levels.  Consider having underperforming technicians ride along with your best performers.
  •   The operations manager should call homeowners who do not buy.  Ask them what in particular made their decision.  You may get a considerable amount of information on what your technicians are saying or doing.  Also use this as an opportunity to potentially earn the business.
  •   If after continued training and ride alongs certain technicians are not achieving performance minimums responsive to the training, you should consider replacing that particular employee.  You can’t continue to burn calls.
  •   To help motivate your technicians to provide maximum effort on each call consider moving to performance-based compensation.  It will focus their attention on every call, and in turn, they will earn more as well. Note: be cognizant and follow all state regulations regarding overtime pay.
  • You may have too many service calls.  You may need to add additional technicians.

3.  Stress to your technicians the importance of offering accessories and add-on services.

  •   Review with your technicians the importance of presenting additional products and services as opportunities arise.  Your technicians should always be listening to your clients.
  •   Train on each and every product and service your company offers.  This should happen regularly throughout your training schedule.  Your technicians should know all of the features and benefits of every product and service.
  •   Make time for periodic ride alongs to ensure that your technicians are offering additional products and services.  Conduct more ride alongs with those who are not achieving performance expectations in this area.  Consider having them ride with top technicians.
  •   If your technicians are hesitant to offer a particular product because they don’t understand it, invite distributors into your office to provide additional training.
  •   Consider requiring your technicians to have clients authorize any additional products or services that they did not want.
  •  Ensure that technicians have the necessary add-on products on their trucks.

4. Stress to your technicians the importance of offering options.  There should always be deluxe, premium, and optimum options.

  •   Review the invoices from every sold job. 
  •   Each technician should be turning in a sheet that contains any recommendations or options they presented to the homeowner, including a new system if applicable.

You know looking at these again as I wrote all I could think of was what ST just came to maket with: Conditional Logic Forms.....!!





Valued Contributor II

These are awesome tips Bill! Competitive pricing, close rates, upsells, and options are all key!