#132 - Rebranding, Team Lead Pay, and GMB: Your Questions, Answered
Jul 9, 2024
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This podcast covers strategies for increasing revenue per plumber and HVAC technician, tracking KPIs, hiring team leads, and implementing incentive-based compensation plans. It also discusses rebranding after acquisitions and successful business models like new construction.
Increasing revenue per plumber involves boosting average ticket value and emphasizing quality and service training.
Critical KPIs for technicians include average ticket, sold hours, and close rate, while installers focus on completion rate and job quality.
Hiring team leads should prioritize technical expertise, coaching ability, and mentoring skills to drive team productivity and success.
Implementing incentive-based compensation plans combining base pay with sales commissions can enhance employee engagement and business outcomes.
Deep dives
Increasing Revenue Per Plumber
Focusing on boosting revenue involves enhancing the average ticket value, which significantly impacts the total revenue generated per plumber. By increasing the average ticket from $300 to $2,000 through offering more options, emphasizing quality, and enhancing service and sales training, revenue per truck can jump from $200,000 to $1 million, highlighting the critical role of average ticket in revenue generation.
Key Performance Indicators for Technicians vs Installers
For technicians, critical KPIs include average ticket, number of options, sold hours, and close rate, emphasizing sales and service performance metrics. On the other hand, installers focus on on-time completion, rate of callbacks, gross revenue, and completed job amounts, highlighting the importance of operational efficiency and quality in installation services.
Attributes of an Effective Team Lead
When hiring team leads, essential criteria include technical expertise, coaching mentality, and experience, with a key focus on their ability to coach and mentor others within the team. Successful team leads exhibit a willingness to teach apprentices, ensure understanding among colleagues, and drive productivity, making coaching a paramount aspect of their role.
Compensation Strategies in Service Industries
Implementing incentive-based compensation structures is crucial for driving performance and motivation within the workforce. Combining base pay with commission incentives based on sales volume and type of service can significantly enhance employee engagement and productivity, ultimately leading to improved business outcomes and enhanced revenue growth.
Warehouse Management in HVAC Businesses
Efficient warehouse management involves leveraging Vendor-Managed Inventory (VMI) systems for parts handling, enhancing speed and accessibility for technicians. Consignment models for equipment storage can optimize revenue velocity by ensuring immediate availability of essential items, thus streamlining service delivery and customer satisfaction.
Success Factors in HVAC Business Models
While new construction-focused HVAC businesses can be successful, they present challenges such as lower margins, cash flow constraints, and a focus on operational efficiency. Choosing a business model that aligns with strengths and preferences is crucial, with new construction requiring a distinct operational approach and expertise for sustained success.
Rebranding and Acquisition Strategies
During rebranding and acquisitions, the decision to retain or rebrand acquired businesses depends on their brand strength and market recognition. Incorporating successful brands into existing frameworks can bolster brand equity and market presence, driving long-term growth and customer engagement through strategic alignment and positioning.
Marketing Strategies for New Service Divisions
Launching a new home services division requires strategic decisions on brand visibility through Google My Business (GMB) and Local Services Ads (LSA). While multiple GMB accounts may boost local relevance and search performance, managing separate LSA and GMB accounts demands careful consideration of brand recognition, customer reach, and resource allocation for optimal marketing impact.
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Discussion on Increasing Revenue, KPI Tracking, Hiring Team Leads, and Compensation Structures
It’s June Q&A time, as John tackles strategies for increasing revenue per plumber and HVAC technician, tracking key performance indicators (KPIs), and tips for managing warehouse inventory and consignment. He’ll also get into hiring team leads, implementing incentive-based compensation plans, rebranding strategies after acquisitions, and navigating successful business models like new construction. Want to make sure you’re live for the next livestream? Learn more about John’s exclusive Facebook group over at www.ownedandoperated.com.
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