07-15-2022
08:48 AM
- last edited on
05-10-2023
12:41 AM
by
LBabayan
Well as the week ends let's look at the final five potential management actions that may need to be taken to achieve an industry standard KPI if your replacement gross margin is to low. We need to remember that CASH the residential home service industry is KING. The only way to accumulate that cash is to make sure our gross margins meet or exceed what the industry standards are. So, what are those final five areas:
1. Your company has inventory control problems.
2. Your company is experiencing too many call-backs.
3. Your company is experiencing too many warranty calls.
4. Your company has too many returns and allowances.
5. You’re using improper accounting practices.
Examine your inventory control.
Take advantage of any vendor incentive programs that are available to you. You may be able to save money on materials and supplies your company regularly uses.
Reduce the number of call backs your company receives.
Reduce the number of warranty calls your company receives.
Assess your returns and allowances.
Evaluate your accounting practices.
Replacement gross margin is something you can lose control of quickly so you want to make sure you are proactive at all times in monitoring this area and reacting.
A little tease for next week we will be looking at your call taker KPI and making sure we continue to fuel the engine that runs our businesses.
07-19-2022 11:28 AM
thanks for posting these tips, @wpowers11!