How Much Revenue Should Your Techs Generate?
SBE - Service Business Evolution LLC
Everything you need to know to build a business that runs itself.
One of the KPIs for profitability is the wage-to-revenue ratio.
When looking at service techs, we can look at how much they are paid in comparison to how much revenue they generate, and we want it to be?at most?20%.
For Example:
If a tech makes $25/hour, their weekly base pay would be $25 x 40 = $1,000. Then taking $1,000 and dividing it by 20%, we could see that that tech would need to bring in $5,000 a week to get his wage-to-revenue ratio to 20%.
*Remember, this doesn't change for selling techs as you take commissions into consideration; it should still fall between 18-20% at the very least.
If your tech is not currently meeting this metric, it is from a combination of these?3 things:?1. Pricing, 2. Productivity, and 3. Production
We can fix all 3 of those!
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Check out our Service Champions Regional Training in a city near you?HERE
Here is something really interesting:
If a service tech is not a selling tech, they will typically be at absolute best able to hit an 18% wage-to-revenue ratio.
However, if they are a selling tech that is compensated with the structure we recommend while receiving regular coaching and training, it is possible to have them around a 14% wage-to-revenue ratio... which is a lot of extra profit!
To find out more about SBE coaching and training, contact us. We're happy to help! CONTACT US
About the Author: Derrek is a coach and trainer at SBE, and a frequent public speaker for seminars, corporate events, and conferences. He has had speaking engagements in over 7 countries and across most of the U.S. His coaching and training style reflects this communications background by his ability to break things down into easily understood pieces and brings new insight into topics.