In part one of this two-part series, I sat down with HVAC Learning Solutions instructor Tom Wittman to discuss the benefits you can receive by promoting maintenance agreements to customers.
Today, we'll touch on other ways maintenance agreements can affect your business, including hiring procedures and cash flow.
M: Is there a rule of thumb for how many technicians you should have per maintenance agreement?
T: Typically one technician can manage around 200 to 250 maintenance agreements. I have two simple rules:
- Make yourself accessible and available during demand months by not scheduling maintenance agreements during the busy season.
- During slower months, schedule enough work to keep technicians in front of four to five customers a day.
Once you approach 200 to 225 agreements above your benchmark, start recruiting a new technician.
M: What KPIs can technicians use to gauge their progress?
T: There are two performance indicators technicians should follow:
- Sell maintenance agreements - 60 percent of service calls should result in a maintenance agreement.
- Bring urgency to non-urgent issues - Demonstrate how preventive repairs or additional accessories can solve a customer problem.
On average, one technician can contribute $55,000-$65,000 in revenue per month. Couple that with the ability to calculate when it's time to recruit a new technician and it's the lowest-risk way to build a business.
M: What else should dealers know about promoting maintenance agreements?
T: It's important to understand the difference between implementing change and influencing change. Implementing change in the company culture, habits, and behavior can cause a high level of resistance from employees. If you learn to influence change by supporting your team and talking through the issues, you'll get results more quickly.
Guest blogger Tom Wittman is an HVAC Learning Solutions instructor from Carmel, Ind.