By Colin Sheehan, RCS Reporter.
A new video from Cotney Consulting Group featuring John Kenney provides needed information on expanding/separating a current service department or developing a new one for your company. The video also discusses the importance of having a great service department for your company’s overall financial success.
“Whether you're roofing business is commercial, residential or a combination of both, having a successful service division will add profitable dollars to your bottom line,” said John. “The service division will perform with a clear net profit of 20% to 30% on the commercial side, which will substantially boost your company's overall financial performance. Successful residential contractors have seen a return of 30% to 40% clear net.”
While the systems and procedures for operating a service department for commercial and residential differ, there are some common qualities as well. In this video, John touches on the following key topics that both need to succeed.
1. Setting your service strategy and financial goals
“What is the end goal of your service maintenance division? What customers are you targeting and how do you plan to get there?” asks John. These questions, and others like them, are important for creating a strategy that will carry your new service divisions towards success.
During this initial set-up stage, you will also need to do the following:
Develop a sales plan and determine the services you will offer.
Clearly define goals and ensure they align with your company’s overall values and mission.
2. Understand your financial investment
Keep in mind the following future expenses for developing a new service department:
You will need to build a dedicated team, or teams, for your service departments.
You will need to invest in quality equipment.
You will need to utilize online marketing tools to promote your new services.
3. Separate maintenance and repair work
“Another critical, yet often dismissed factor, involves having separate teams for maintenance and service repair work,” said John.
You will be performing both repairs and maintenance, so it is best to develop your teams separately for these specialties. Repair techs will operate from a fix-it mindset, while maintenance techs will operate from a keep-it-working perspective.
Watch the full video for more information on developing repair and maintenance teams. You can also contact John Kenny directly through his email with any further questions.
Learn more about Cotney Consulting Group in their RoofersCoffeeShop® Directory or visit www.cotneyconsulting.com.
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