It’s an old topic but it needs to be revisited — again. Has your service department adopted flat-rate pricing yet? If not, it’s time to seriously consider the conversion. Most contractors have very strong opinions about flat-rate pricing, one way or the other. However, the reality is this: If you have actually sat down and…
A well-run service department should be making money, producing a 15 to 20 percent net profit. In fact, your service department should be the most profitable department within your company, but it’s usually not. There are two reasons most companies find service unprofitable. First, they are not priced properly. It costs a lot to run…
If you are a contractor, your world turned upside down in 2008 and 2009. The housing bubble burst; new construction dried up; unemployment went to 10 percent; and consumers stopped spending money. Unless you sold your business for millions before this happened, your company was affected. Most everyone has heard the definition of insanity: doing…