Maximizing revenue from each service call is crucial for business growth and profitability in the roofing industry. While many roofing businesses focus on getting more clients or increasing the volume of jobs, the real growth opportunity lies in expanding each service call's value. This article will guide you through strategies to significantly increase your revenue per roofing service call.
Step 1: Understand Your Average Service Ticket
Before you can increase your revenue, you need to know where you stand. What is your current average revenue per service call? To find out, take all your service tickets for a given period (preferably a year), calculate the total revenue from those calls, and divide that by the number of service tickets that generated revenue. This number will give you a clear picture of your average service ticket.
For many service industries, the average ticket is often less than $200. In roofing, the average may be higher due to the nature of the work, but it's still essential to measure where you currently stand.
Take Action:Stop and calculate your average service ticket before reading further. Knowing this number allows you to measure improvements as you implement the strategies outlined below.
Step 2: The Power of Doubling Your Average Ticket
Once you've identified your average service ticket, let's explore the impact of increasing that number. For example, if your average roofing service ticket is $300 and your team runs 3,000 service calls per year, your annual revenue from service calls is $900,000.
Imagine increasing your average ticket by 50% or even 100%. Here's how the math looks:
Current Revenue: $300 x 3,000 calls = $900,000
50% Increase: $450 x 3,000 calls = $1,350,000
100% Increase: $600 x 3,000 calls = $1,800,000
As you can see, a modest increase in your average ticket can lead to significant revenue growth. You're not taking on more jobs—you're simply making more money from each one.
Step 3: Implementing the Service Call Blueprint
There are several strategies to boost your revenue per service call by giving your customers more options. Offering a menu of services allows clients to choose higher-value options, increasing your ticket size. Here's how you can apply these principles to your roofing business:
Offer Multiple Service Options
Instead of just quoting a repair, provide customers with various options. For instance, alongside the basic repair, offer an option that includes additional maintenance services like gutter cleaning, roof coating, or preventative maintenance. Customers who see a range of choices are more likely to select a mid-range or higher-priced option.
Don't Underestimate the Power of Upselling
Many customers don't know all the services they might need. For example, during a service call to fix a leak, you could offer an inspection of the entire roof or recommend a maintenance repair if required. These additional services provide value to the customer and increase your ticket size.
Bundle Services Together
Bundling services can increase the perceived value of your offerings. For example, if a customer needs a minor repair, bundle it with roof cleaning or an extended warranty to create a higher-priced package. Combining services creates a win-win situation where the customer feels they are getting more, and your average ticket goes up.
Step 4: The Leadership Challenge
To successfully increase your average ticket, it's crucial to have buy-in from your team. Every technician must understand the importance of offering options and upselling additional services. Leadership plays a critical role here—technicians must be trained and coached to follow these practices consistently.
When technicians rush through calls or fail to offer additional services, they leave money on the table. In one case, a technician who didn't follow the process cost the company over $10,000 in lost revenue. Ensuring your team complies will allow you to maximize your profits from every job.
Step 5: Measure and Improve
As the saying goes, "What gets measured gets managed." Track your average service ticket over time to see how your changes impact revenue. You'll be able to identify which technicians excel and which need more training. Additionally, keep a close eye on your revenue per call and continually look for ways to offer more value to your clients.
Aha Moment: People Buy Based on Options
One of the key insights in this article is that people make purchasing decisions based on the options you provide. Like a fast-food menu, customers are more likely to choose something in the middle when presented with multiple choices. In the roofing industry, this means offering several service levels—such as a basic repair, a mid-range option with additional maintenance, and a premium option with long-term warranties and upgrades.
Customers don't want to be told what they need—they want to choose what works best for them. By giving them more options, you allow them to make informed decisions, and often, they'll select higher-priced services than you might expect.
Start Maximizing Your Revenue Today
The strategies we outlined are straightforward but incredibly powerful. You can significantly increase your revenue per service call by offering more options, training your technicians to upsell, and regularly measuring your progress.
Start by calculating your current average service ticket and aim to double it. With a well-implemented plan and leadership that holds everyone accountable, you can take your roofing business to the next level—without taking on more jobs.
Take action today, and watch your revenue grow.
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