Presentation is loading. Please wait.

Presentation is loading. Please wait.

Start Making Money in 2011 using Flat Rate Pricing …..a key to contractor profitability. Mike Hajduk, President Jeremy Lowe, Database Administrator.

Similar presentations


Presentation on theme: "Start Making Money in 2011 using Flat Rate Pricing …..a key to contractor profitability. Mike Hajduk, President Jeremy Lowe, Database Administrator."— Presentation transcript:

1 Start Making Money in 2011 using Flat Rate Pricing …..a key to contractor profitability. Mike Hajduk, President Jeremy Lowe, Database Administrator

2 CALLAHAN ROACH and d ESCO Long Relationship – dating back to the early 1990s Flexibility of flat rate usage. Books or mobile. It works!

3 Who is Callahan Roach Business Solutions? Started flat rate in HVAC in Segment leader. Sold over 5,000 dealers CAP flat rate. Trained hundreds of contractors.

4 Who is Callahan Roach Business Solutions? Consulted with industries largest and most successful dealers. Recognized as having the most robust database of flat rate repairs. Serves 3 industries.

5 Why flat rate as a linchpin? 91% of all American homeowners want to have their service company offer flat rate. 25% of service companies go out of business each year… Low Net Margins should not be fixed by beating up suppliers about pricing. Many HVAC contractors set their service prices to lose money. …Pricing errors are easy to fix with flat rate.

6 So what is flat rate pricing? Flat rate pricing is the technician offering the customer a no surprises single price to make repairs on their HVAC system, before the job is started.

7 What we know it is: Way to get enough for your labor and parts to make a profit Allows you to take the focus AWAY from your price and place it on your SERVICE and company QUALITY Show the customer that you have the capability to repair and install complex systems

8 Matt Michels The Power of Positive Pricing Published by ServiceNationPress.com Flat Rate Myths

9 Matts Flat Rate Myths Flat Rape Myth Technician Resistance Myth The Perfection Myth The One Long Job Myth The I can do it better myself Myth

10 Theatrics It is a tool to show that your company is head and shoulders better than the competition.

11 Merchandising of Your Service You compete with Macys, Kroger, Target etc., for your customers eye.

12 How to Merchandise your Company Uniforms Work Orders Booties, drop cloths, cleaning work area Flat Rate Manual or Mobile Device Pictures of equipment and/or parts Your Truck

13 Building Value in Service Invoices

14 Database Administrator, Technical Training, CTO, etc, etc, etc. Jeremy Lowe

15 Highlights 1. What the customer wants and perceives as value. 2. What an improperly completed invoice is. 3. What a correctly completed invoice looks like, why it is important, and how a properly completed invoice builds value 4. How to explain multiple repairs so that a customer understands the need to invest in their equipment now rather than later.

16 Service Tickets All Service Companies Need To Increase The Dollar Revenue Of Their Service Tickets to Remain in Business No Company Wants To Gouge Consumers Or Take Advantage Of Them Many Consumers Need Multiple Repairs Yet We Fear The Price May Scare Them Away

17 How Do We Deal With Customers That Have Want The Cheapest Price?

18 Repair Under the Diagnostic ?

19 It Is a Diagnostic Only Charge We Are Not Giving The Customer a Break We Are However Breaking the Company! Bad Mojo

20 WHY CHARGE SO MUCH? Running a business is EXPENSIVE! Labor drives overhead thus unapplied time means we must charge more Other hidden expenses must be covered so our company makes a profit No profit, no jobs! List cost of business

21 Other Expenses Insurance For Employees Business Insurance Rent Utilities Advertising Training Workers Compensation Consumables Tools Communications Taxes Fuel Licenses Warranties Employee Benefits

22 DIAGNOSTICS Not a profit center A charge customers understand if explained properly Cant make repairs under this charge Does not cover the expense of getting you to the door! Devalues our service if we make repairs as part of diagnostics

23 DIAGNOSTICS High liability when we Diagnose Always finish a diagnostic You touch it you bought it! Failure to do so is a liability Failure to do so is costing you customers Failure to do so can be laziness!

24 How Do We Deal With Customers That Have Multiple Problems When We Do The Diagnostic, But Only Want The Cheapest Price?

25 We Must Understand What Customers Really Want!

26 Understand Your Customer I Want A Fair Price! I Want To Trust My Repair Company! I Want It Repaired Right The First Time! I Want To Understand What My Servicer Is Doing To My Home All People Want Basic Human Need Time Is Valuable and Multiple Repairs May Indicate Inexperience Consumers Fear What they Do Not Understand And Cant Explain Well To Others

27 Flat Rate Service Pricing Giving Customers a Fair Price that is in Black & White From a Printed Book Customers Feel They Can Trust a Servicer Who is Thorough Doing a Complete Diagnostic Allows us to Recommend all the Repairs Up Front Using Tear Off Pads and Detail on our Invoices Builds Trust in us and the Company!

28 Flat Rate Builds Trust And If Used Properly Reduces Post Shopping Complaints About Price

29 Neat And Thoroughly Completed Service Tickets With Good Diagnostic Procedures Reduce Callbacks And Increases Consumers Understanding Of Recommended Repairs

30 Perceived Value

31

32 What Value Does Your Diagnostic Hold?

33 Understand Your Customer I Want A Fair Price! I Want To Trust My Repair Company! I Want It Repaired Right The First Time! I Want To Understand What My Servicer Is Doing To My Home All People Want Basic Human Need Time Is Valuable and Multiple Repairs May Indicate Inexperience Consumers Fear What they Do Not Understand And Cant Explain Well To Others

34 A Service Scenario Bad start Capacitor on motor Leaking service valve cap Safety is by passed Needs refrigerant Old mercury thermostat Contactor seriously pitted

35 What to Do? Always recommend all legitimate repairs Let the customer decide what they want to do Give your professional opinion if asked DO NOT REPAIR ANYTHING AS PART OF A DIAGNOSTIC!!! Offer discounts on multiple repairs

36

37

38

39

40 Observe! Leaving an item that Still Works but is obviously going to fail or is broken is bad business It is not what customers want even if we feel we are saving them money by encouraging the unit to RUN TO FAIL.

41

42 When A Customer Understands The Value Of Making Multiple Service Repairs At One Time They Will Make The Investment In Their Home Heating System

43 Did The Customer Perceive Any Value In The Diagnostic Procedure?

44 TECHNICIANS PERCEPTIONS Not Enough Time! I cant do a good diagnostic because the office gives me way too many calls! There is way too much stuff to check! We have no where to mark what we check on our invoices!

45

46 A Completed Service Ticket and a Thorough Evaluation Reduces Complaints

47 To Build Value TAKE the time to look Be thorough Show the customer the price in your book. Look for predictive repairs Look for preventative repairs Be prepared to suggest upgrades Understand what customers want!

48

49 What Does The Customer See?

50

51

52 Summary Explanation Bad Capacitor 2 Pole Contactor 1 Lb R22 Tighten Fitting O- Ring Diagnostic Total $ $ $29.00 $24.00 $16.00 $ $ $ $92.00 $26.00 $22.00 $0.00 $69.95 $ $ $78.00 $22.00 $18.00 $0.00 $69.95 $287.95

53 What Does The Customer See? $498 expense verses a $287 investment with an agreement

54 Perceived Value For A Small Investment Now The Customer Has Peace Of Mind For The Future They Can Enjoy Their System With True Peace of Mind Being Preventative Reduces Future Expenses Leaving More Money In Their Pockets In The Future For Other Uses

55 Perceived Value

56 What Do You See?

57

58

59 Value building starts at the door!

60

61 Perception What is the customers perception of you? The Company? The service the received? The value?

62 PERCEPTIONS People make multiple assumptions about us in the first few seconds! We either prove their assumptions right or wrong Visual clues are important to perception as is voice and tone Perceptions can be changed!

63 Make What They See Valuable!

64 Questions and discussion regarding our alliance? Desco – Callahan Roach works Flat rate as a merchandising tool Thorough Diagnostics Be proactive with recommendations Complete and neat work orders Value building starts at the door Contact us for consultation


Download ppt "Start Making Money in 2011 using Flat Rate Pricing …..a key to contractor profitability. Mike Hajduk, President Jeremy Lowe, Database Administrator."

Similar presentations


Ads by Google