Sell More Service By Providing More Value

Over the last month I’ve spoken to over two dozen Field Service Executives about challenges they are facing when it comes to generating additional service revenue for their companies.  I observed several common themes. First, every executive I interviewed indicated that they would like to sell more service contracts. However, they were experiencing resistance from customers as evidenced by low contract attachment rates.  Second, these executives were concerned about whether or not their prices were too high or if their customers really needed service contracts. After all, this was the feedback they were receiving from their sales teams and even first hand from the customers that had spoken to directly.

This is an all too familiar problem for me. I’ve encountered this for the last twenty five years as a management consultant. It is also a challenge that many field service executives face. Seldom is price the real issue why companies struggle to sell service contracts. In market research studies that I have completed for clients in a wide array of technology service industries, I have found that price is often low on the list of criteria that end-users consider when selecting and evaluating service providers. Indeed, criteria such as quality of service, knowledge and skill of service personnel, breadth of service offering, and vendor’s knowledge of their business are perceived by customers to have higher importance than price alone.

The truth is “your price is too high” will always be an objection...Read More