Arkansas HVACR NewsMagazine March 2021

HVACR NewsMagazine March 2021

Business & Marketing Tips

Let’s analyze the issue.

The components are changed with little problem. The condenser is washed, condensate drain is cleaned, and you are on your way after checking the performance of the system. Stepping back inside the home you begin entering invoice data. Forget the reasons why, but it is apparent this is a single mom. You reach inside yourself and pull up the idea you must help the mom in some way.

First, did you make enough money last year to give things away? Did you net above 8%? Is your supply house bill paid up inside of 60 days? Did you borrow to pay taxes last year? Is your AP journal current paid current within 30 days? So many in our industry run without analyzing their financials monthly and adjusting when things don’t line up. Even with a total disregard for your own company’s fiscal health you impact customers and the industry in a negative manner. What will the customer ’ s expectation be on the next service request? Because you just discounted a service call, you have just given the customer an unrealistic picture of what it takes to run a profitable business. Because you discounted the job, your industry competes with lower pricing overall in the area. So -- we have done injustice to the customer , the community, and the industry when we discount our work without first making sure we can do so responsibly. A first step is admitting we have a problem with discounting work.

So, you discount the invoice by 50%.

Mission accomplished!

Job completed!

Feeling good!

You just helped a mom and her family.

Off to the next service call

But wait..... There’s a service van parked on your cape!

Your company just lost money. Not because you helped someone, but because your desire to help is not analyzed on a weekly basis. While everyone should give back to the community, all too often we continually discount parts, labor, or both. We need to think about the consequences.