Attention students! Class is in session! Grab a chair because it’s time to learn! Welcome to Monitor Business School 101.
In this class, you will learn the fundamentals of Generator Monitoring, How to Implement It and most importantly, How to Make Money using Monitoring. Over the next several months, we will cover these topics in greater detail so you can improve and grow your service business!
Lesson 3: Productive Service Calls vs. Minor PM’s
In our previous lesson, we covered how the generator industry is growing and to a point where there are not enough technicians to go around to service every generator. What this means is in order to grow your service business, you have to maximize your efficiency by deploying your technicians to generators that require immediate attention versus sending them on a minor service inspection.
In a classic service agreement format, you have one to three minor service inspections and one major inspection. Though, on the minor inspections, are you really gaining anything of value by being there? They’re one, if not THE, least profitable form of service you provide and in most cases the generator is just fine. What if you get rid of a minor service inspection and focus your efforts on deploying technicians to generators that actually need service? Your gross profit margins will increase dramatically.
This is where generator monitoring is at your advantage. At any time, you can see the current status of every generator you maintain and can instantly see which generators have failed or faulted out. Based on industry experience, around 10% of all generators are in some type of fault or failure and require a technician visit. Assuming you have a thousand service contracts, one hundred of those generators require immediate attention. With that in mind, you now have a hundred profitable service calls at your disposal!
Today’s key takeaway is to utilize generator monitoring on every generator you service so you can maximize your profitable service call potential. By removing a minor service inspection, you can better manage your technician staff and deploy them to generators that actually need service.
For our next lesson, we will cover customer expectations and some common myths about generator service and monitoring. Stay tuned!