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Keeping your Average 'Above Average'
by Mike Diamond
January 3, 2008

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Before you pencil in your marketing budget for the year and decide that you need to substantially boost the number of calls you receive to meet your revenue goals, think about your averages. Specifically, think about your team’s average ticket or invoice. That’s half of the battle in meeting your revenue goals. 
    Your revenue goal is obviously determined by the number of calls you run multiplied by the average amount you generate on each of those calls. So, before you go breaking your back on marketing to boost the number of calls you’re getting, why not focus on boosting the other half of that equation? 
    By focusing on boosting your average ticket, you can utilize the current team you have to boost your revenue. You won’t have to spend more on marketing and you won’t have to hire more technicians to run the additional calls.
    The secret to doing the most with what you’ve got is keeping your average above average. What is your average ticket today? To figure it out, you can take a sample of your team’s invoices, say from the last month. Total up the revenue that you’ve generated from those invoices and then simply divide by the number of invoices you used in the sample. For an accurate average, include those calls where your technician may have only collected a service fee because those were still calls that your team ran. 
    It’s important to know the average your team is generating on service calls for several reasons. First, you’ll need to know for your budgeting process every year.  Knowing your average ticket helps you create revenue goals that are achievable. Also, knowing your average ticket gives you a quick way to check the performance of your team. If one of your technicians is below your average for the week, you’ll want to ride along with them to see how you can get them back on track. At the same time, if one of your technicians is above average for a time, you’ll want to see what he or she is doing differently than everyone else. Perhaps you could have them role-play with your other technicians or lead a training session so the rest of your team picks up some of their tips. 
    Once you know what your average ticket is, how do you keep it above average or improve it? Here are a few things you can do to boost your average.   

Train your team -- You’ve heard it before, but the only way to consistently affect your team’s performance is to give them the training they need to do it. To figure out what kind they need, observe your team and see what weaknesses each member has. If one of your technicians is lacking in presentation skills, get him some training. By addressing their weaknesses, you’ll help them develop a stronger presence in the home.  A simple fact that’s sometimes overlooked is the personable approach.  Homeowners buy from those companies that they like and trust. What can your technicians do to increase their likeability in the home? Train your team to build rapport before diving into the repair, and you’ll see a jump in their success.  

Ask -- One of the toughest parts of the selling process for someone who isn’t accustomed to selling is asking for the order. For your technicians who probably don’t want to be perceived as pushy salespeople, it’s even harder. They may have a product that would make life better for your clients, but they might not be comfortable asking your clients for the sale. Give your team practice and tips for closing because the only way to increase your sales is to sell more!  

Give options -- Even if your technicians are worried about being perceived as pushy salespeople, they should be willing to give your clients options for service. By offering your clients multiple options, you have the opportunity to boost your sales, and your clients will be in control of what they choose for their home and family.   

Monthly specials -- If you want to boost your average ticket, you can make it easier for your team by offering a particular product or service as a special each month. This will give your technicians a reason to bring that particular item up to your client, and by bringing it to their attention at a special price, some of your clients will choose to go ahead with that service as well. It’s a simple way to boost your average ticket, and by printing up a flyer or other promotion, it makes it easy for your technician to present.  

    When it comes to the plumbing business, it seems that everyone always wants to get more calls, but you might be able to make more from the calls you’ve already got.  Keep your averages above average and you’ll be headed for a record-breaking year.  


Mike Diamond
Mike Diamond is CEO of Plumbers’ Success International, an organization dedicated to providing plumbing contractors with a competitive edge by providing the newest, most cutting-edge proprietary tools, management expertise, marketing systems, training and buying clout that leads to market dominance, freedom of time and financial independence. For more information on Plumbers’ Success International, call (800) 505-8885 or visit www.plumberssuccess.com.

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