Measuring The Numbers - The Daviston Group

Measuring The Numbers

The first step to getting more from each service call is measuring where you are. What is your average ticket now? Think about it and go measure it. Here’s what you need to do. Take all your service tickets and add up the total revenue and divide that answer by the number of service tickets that have money on them. That will give you an average number. The average number that I see for heating and air conditioning companies is less than $250.00. Plumbing is much higher.

“What is my average service ticket?” Go do it today. Measure a year’s worth of data. Stop now and go do it. It’s a major problem in this industry that people watch, listen and learn but never take action. Take this important step before you go any further.

If you have any questions about how to do this, send me a quick email at [email protected] I am always happy to help.

If you implement the principles that you learn from The Free Webinar on my home page, you should expect to see an increase in your average service ticket of 100% to even 200%. Legally I cannot guarantee any sort of increase whatsoever, but if you take action it is my experience that these are the sorts of results that I have witnessed time and time again.

Now, take the answer that you arrived above (what is my average ticket) and double it. Then multiply that number by the total number of calls for the year that you measured. The results should be staggering.

Let’s look at the math while making a few of the following assumptions:

  1. Assume that we have 4 technicians and they run on average 15 money calls per week and we have 48 weeks per year. This takes into consideration holidays, sick days and vacation days.
  2. Assume that our average ticket is below average at $180.00 company wide.
  3. Assume that each technician ran 720 money call (15 tickets x 48 weeks = 720)
  4. Assume that the company ran a total of 2,880 service calls. (720 tickets per tech x 4 techs = 2,880)
  5. Assume that we collected $518,400. ($180 average ticket x 2,880 tickets)

Look what happens to total revenue as we increase the average ticket:

Current revenue: $180 x 2,880 = $518,400
50% increase: $270 x 2,880 = $777,600
100% increase: $360 x 2,880 = $1,036,800

These numbers are not bull. I know what some of you are thinking because I have been there. This is not a blue sky promise. Take a look at the following results from a client of mine. He would be happy to talk to you and verify that the information is true if you have any doubts.

Study the chart below. This is why you must implement the Service Call Blueprint. This is a before and after comparison of 611 calls (six weeks before and six weeks after).

I compared the average ticket amount before and after. If you’ll notice we generated $42,684.00 more in revenue as a result of the coaching. Also, notice that Tech 6 decreased.

There is a reason for this. He did not do what we asked him to do and the boss allowed him not to do so. Notice also that Tech 6 ran more calls than anyone else because he rushed. Tech 6 is costing this company $10,286 in lost revenue. This is assuming that we replace him with a person who achieves an average of the top three techs.

This is a leadership issue. We know that Tech 6 does not do what we ask of him because we listen in to the virtual ride alongs and the boss only yacks. Recently, the boss agreed with me and we are limiting Tech 6 to only 3 calls per day. The boss also told him that he must comply and the boss is now listening in to every presentation.

I implore you to measure your numbers. What gets measured and focused on will improve if you have the leadership skills to get your people to do the things that make them successful. I can help you with that too, but that’s another book for another time.