With Fall already here, many of your customers are hopefully scheduling their preventative maintenance visit on their furnace and heating systems. It gives them peace of mind they will be kept warm once the temperatures drop. Similar to the regular upkeep, regular reviews with your business expenses can ensure your company stays in the green and hopefully continues to grow!
When was the last time you reviewed your hourly cost? Was it last year, was it 5 years ago? Reviewing your service rates and any growth you may have experienced is an integral part of keeping your business in the green. It’s a balance act of understanding your customers’ budgets and what business costs you incur daily, monthly, and yearly.
Keeping the idea of competition and what your competitors may be doing in the back of your mind, here are some questions you’ll want to ask when looking at that hourly rate:
- How many technicians are you supporting in the field? Are you maintaining the trucks as well as paying for the gas when they go from job to job?
- Do you have new office staff that help dispatch and support your technicians in the field?
- Do you use new software to keep your business running smoothly?
- Are you using devices in the field to save time on paperwork back in the office? Are those devices on a data plan?
Indirect business costs can add up and if your hourly rate doesn’t take them into consideration, you can be left on a sinking ship. Updating your hourly rates and testing them is a great way to stay afloat. If you are at a loss as to where to start this review, check out Coolfront’s Setting Service Rates Guide and give us a call. Also check out our blog post "Service Rates & The Squawk Test." We’re happy to chat through the numbers side of your business!