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As the year comes to a close, it's time to analyze your company's sales statistics and develop your plan for next year. The rooter business is cyclical and the chart demonstrates the sales trends that I have typically experienced in the past. Service calls tend to lessen during the holiday and tax season, then begin to climb gradually up to the November peak. The day after Thanksgiving is the busiest day of the year. December starts the slow-down and the cycle starts all over again.

Understanding the rooter cycle helps a company develop strategies to maximize profits during the traditionally slower periods and better prepare for the inevitable upturn in service calls. What you do throughout the year stabilizes your income stream in times when the phone doesn't ring as often.

There are ways to keep your profits up even with less calls. First and foremost a company should dump unnecessary expenses and critically allocate time and money. Companies that do well in the slow season do extremely well when the cycle turns upward. Let's look at a few ideas that enhance your prospects of success. If you depend on plenty of service calls to be profitable, you are at the mercy of the ever-increasing costs of advertising. True, advertising is necessary for most of us, but I assert that there always ways to get more from the calls you already have.

INTELLIGENT DISPATCH
The most profitable service technicians I have ever known have done so with the least amount of service calls. They sell larger projects instead of just basic drain cleaning and they don't "burn" so many calls—that's the secret. These people have been trained and have access to cameras, locators and jetters. They are dispatched to carefully screened calls where their prospects for success are enhanced. On main sewer stoppages, send your best techs. Make sure they have the new technologies at their fingertips and can bid repair work on the spot. With 40 calls or less they can generate upwards of $20,000 monthly after expenses. Two or three of these people can carry a shop during the downturn in the cycle. They are always on a dig job and that frees up other service calls to keep your other men active.

PREVENTATIVE MAINTENANCES (PMs)
Reward service techs for acquiring PMs throughout the year, perhaps a bonus commission. On any commercial call (especially restaurants), send people that tend to sell jetter work and can diagnose and pinpoint broken lines under restaurant kitchens. These people need superior locating skills. They should have the ability to replace traps under floor sinks and be efficient with trailer jetters. Restaurant owners never call asking for a PM. Coach your "commercial" techs on offering PM's at every opportunity. A typical PM would be: every 3 months at a reduced commercial rate. Get involved in pumping grease traps or at least have a sub-contractor lined up. Imagine having 100 quarterly PMs— automatic service calls without taking away from your incoming service calls. Another benefit of selling PMs is that your company is the logical choice when a serious problem arises and a dig-up is required.

SELL CHEMICAL TREATMENTS
Chemical drain degreasers and foaming root killers can substantially increase your profits over time. A company must continually search for ways to raise their average invoice amount. Whether you monitor your sales crew by "per job" or "per call", chemical sales impact profits.

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Peter Morici - [Intro] | [Articles] | [Email] | [Website]

The views expressed in this article are those of the individual author and do not necessarily reflect the views of the management or staff of MasterPlumbers.com


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