Allen AC Repair Service talks about how profits benefit the customer.
Allen AC Repair Service owner Steve Lauten talks candidly about increasing sales and about how profits benefit the customer.
Originally offered as a presentation in August 2006 to his peers at an industry seminar the topic of the talk was: How Much Money Are You Leaving On The Table Per Sale? The purpose of th presentation was to help his peers consider how they can best serve the consumer by both offering options that help the consumer and lead to a more profitable business. Profits are what keep the business viable and allow them to serve the consumer.
How Much Money Are You Leaving On The Table Per Sale? This Applies to both Commercial and Residential Sales!
I talked a lot this year about understanding your costs when pricing a job. In order to price a job it requires you understand your, material, labor, and overhead costs, plus your profit goals. All of these things combined, if done properly will net you a fair profit at the end of the day. I am not going to spend anytime on this month on how to calculate your jobs. My main focus is what is your process for allowing a sale to be made? Who decides what margin to use, what discounts are allowed, and is the proposed job actually estimated properly?
Within your organization who “Owns the Sales and Estimating Process? In my opinion it should be the Owner/President of the company. I will admit the actual term called “Owning The Sales Process” is not mine. However, my belief that as the owner of the company it’s absolutely mandatory that the process of how we present ourselves, what we offer, how much we charge, and how much profit we make, plus when do we follow up on open sales leads must be owned by me!
I am not saying that someone such as a Sales Manager or General Manager can’t “borrow the keys” but I am saying the overall strategy, policies, procedures, and success must be owned by the Owner/President. Not only must you own the Sales Process, but you must also own the Measurement Process. You can’t manage what you don’t measure! You must measure and track every “Key Indicator” for your Sales Department, along with every other department in your company. Do you have posted Sales Goals for each Sales Person with daily revenue? How about for your Service Techs, do you measure how many maintenance agreements they sell, how many sales leads they turn in, and what their average revenue per call is? Do your techs know what the yearly revenue per truck goal is for your company and do you have rewards in place if goals are met?
I consider all of the above applicable to Commercial or Residential. The same goes for what I am now covering:
When a customer has old equipment, do you offer to do an energy study to see how you can save them energy? In addition, if it’s commercial do you always offer high efficiency equipment upgrades? Do you factor in the fresh air needed to update to current standards? How many offices spaces do you think could use a duct redesign when they are the 3rd tenant in the space and walls have been moved; yet the duct system is still the same? When offering system replacements do you offer leasing? It amazes me that in most cases the decision maker never knew they had the option of spreading out the costs over time and that the energy savings in many cases makes the lease payment for them!
What is the best way to sell equipment upgrades and accessories? Offer Them!
What is the best way to get a property owner to upgrade HVAC systems? Give Solutions that pay for themselves!
What is the best way to grow your business or grow your profits? Own the Sales and Estimating Process and then measure/manage the results!
In summary, we have a trend towards looking for new customers instead of focusing on the ones we have. We tend to sell part of the solution instead of the entire solution. In many cases the best solution pays for itself. Last but not least, if you are missing your revenue goals, do you “Own The Sales Process?”
Allen AC Repair Service, Total Air and Heat, is owned by Steve Lauten, the second generation owner. Founded in 1957 by Steve’s dad, Fred Lauten, Total Air and Heat is proud to have received some of the highest awards for quality and service that are offered in the Industry. Among those awards are the Readers Choice Awards from the Collin County Newspaper, the Trane Pacesetter Award in 2002, and designation as a Trane Comfort Specialist.