Increase Profits on Your Servicing Contracts
It’s no secret that industry is facing challenges posed by rising costs and thinning profit margins especially when it comes to servicing contracts. Inflation has led to increased travel, labour, and parts costs, making it essential to find effective strategies to maintain competitive pricing and contract profitability . This has resulted in some providers choosing to avoid offering service contracts all together, preferring to not tie themselves or customers in, so they have better flexibility on visit schedules, lead times and prices.
Securing service or full maintenance contracts sounds like a great idea, secure customers, with known business requirements means service providers can plan resources and use the contract base as a platform to grow from. But all too often that’s not the case, as contracts can be difficult to run and even harder for managers to evaluate their profitability.
The answer is simple; make your data work harder!
Leveraging Data for Smart Contract Management
The foundation of successful service contract management lies in data-driven decision-making. Without accurate insights into work planning, resource allocation, and cost tracking, it becomes difficult to propose competitive pricing that sustains a healthy profit margin. Nor can you easily make adjustments; such as charging for extra work or parts, or track when and where you may need to implement a price increase to maintain your profit margin %. Managing all these variables by different customers, contract types, sites and equipment requires good service management software to give contract managers visibility of what’s required and help them to agree profitable pricing models.
When you have visibility of the true costs involved, you can be confident in your profit margins, often resulting in the ability to undercut the competition and gain more business as a result.
It’s Time You Had Advanced Reporting
Reporting is a pivotal feature that addresses a common challenge voiced by many companies – obtaining valuable and actionable data. This is where Service Geeni’s ‘charge codes’ comes into play. By using charge codes, companies can easily assign specific work to different job types, making it effortless to generate accurate reports so you can see where the costs are and ensure your pricing model is correct. Whether it’s warranty work, service work, or repair work of a particular type, the charge codes allow for precise categorisation. This approach provides a clear and detailed overview of all activities performed which can also be handy when dealing with any disputes that may arise regarding contract coverage and billing.
Why Service Geeni?
Service Geeni helps you track the performance of your contracts, identify areas for improvement, and make data-driven decisions. Whether you choose to focus on service contracts or venture into full maintenance contracts, having accurate reports at your fingertips will improve your contract pricing, provide transparency for customers, and most importantly maintain healthy profitability.
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