Does Your Field Service Company Suffer From These Profit Leaks?

After processing over 300,000 work orders every year for Service Companies, we found that a lot of HVAC/Equipment companies are like a leaky bucket.

They’re leaking profits.

And a lot of times these “Profit Leaks” are hiding in plain sight.

But instead of plugging these holes first, they hire more tech to grow their revenue.

I don’t blame them, that’s what they know best.

But the thing is …

Hiring more techs while their business is leaking profits only makes things worse because the more techs they add, the more and faster profits leak.

If you’re processing over 2,000 work orders every month, then there is a high chance that your company is suffering from 1 or more “Profit Leaks” that each could be costing you $100,000-500,000+/month in profits.

The more work orders you process, the more and bigger the leaks potentially are.

To help you find these leaks before they drain your profits, I’m going to share with you a series of questions that we use as part of our “Profit Leaks Audit” we offer to companies to pinpoint where they’re leaking profits and how much.

Let’s dive in.

Profit Leak #1: Real-Time Processing of Service Requests

• How many service requests (calls, emails, portals) are you getting a day?
• How many service requests (calls, emails, portals) are you processing in real-time?
• Out of those you're not resolving in real-time, how many don’t convert to work orders?

Profit Leak #2: After Hours Service Requests

• How many service requests are you getting outside of work hours each week?
• How many of these are canceled? (don’t convert to work orders)

Profit Leak #3: On-Site Work Orders

• How many new on-site work orders does your technician generate each week? 
• How many estimates are going out in real-time while technicians are on-site?
• How many of these are canceled/ rejected/don’t turn into work orders?

Profit Leak #4: Invoice Disputes

• How many invoices per month are being disputed?
• How long does it take to resolve a dispute? How many service requests do you miss out on meanwhile?

Profit Leak #5: Credit Hold & Collections

• How many accounts per month are being put on credit hold?
• How many work orders do these accounts usually generate each month?
• What percentage of monthly sales goes to external (third-party) debt collection?
• How many accounts on credit hold/debt collection never reorder (lost customers)?

Profit Leak #6: Preventative Maintenance

• How many active accounts do you have?
• How many of them have recurring preventative maintenance programs?

Profit Leak #7: Employee Productivity

• How many $50/hr employees are doing $5/hr jobs?
• How many invoices does your staff currently process?

Profit Leak #8: Multiple Truck Rolls/Triage

• How many multiple truck rolls per service request your techs go out on?

Profit Leak #9: Inactive Client Accounts

• How many clients haven’t put in a service request in 6+ months?

Ok, that was a lot of questions!

But you’re still here, right? :-)

I don’t call my self a “numbers guy” (that would be Jez on our team) …

But answering these questions is critical to uncovering where your business could be leaking profits.

And by now, you’ve probably identified one or more leaks that could be costing you 100s of thousands in profits (and maybe even millions every year).

Finding these leaks is the first big step.

High five.

But then the question is, how do you plug these leaks?

Over the next few weeks, I’ll be publishing our “Profit Leaks Fix” series tackling each of the areas above to help Service Companies keep/add more profits to their bank account without hiring new techs (or while hiring fewer techs).

Meanwhile, if you’d like to do a deep dive into these questions …

Right now, we’re offering “Profit Leaks Audit” to help HVAC/Equipment Service Companies uncover where they’re leaking profits and map out an action plan to plug the holes in their business and add more profits to their bottom line.

As you can imagine, it takes a lot of work on my end to dive into your business, uncover these leaks, and map out a custom action plan for you.

I could easily hang a $1,000 price tag on this and have my pick of people.

But because of everything going on with COVID and the economy, I don’t want to make it any harder for HVAC/Equipment Service Companies to keep more profits in their bank accounts.

So I’ve decided to buy ten slots of my time (each worth $1,000) for the next 10 executives who reach out to me to run their business through this.

If you’d like to claim your “Profit Leaks Audit”, send me a message and we’ll schedule a Zoom call together.

Also, I’d love to hear from you on how many Profit Leaks have you identified in your business.

Leave a comment below with your answer.