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