If this is your first time reading our blog please refer to posts 1 and 2 of Profit Mastery: The 4 Building Blocks, otherwise, welcome back! In this article we are going to go over our third driver in the series.
Average Dollar Sale
About now you should feel good about the amount and quality of leads coming in and your sales team should be excited to convert those leads into jobs. Where does that leave you? With a lot of work and no money. What?! I thought I though the whole point of business was to increase our profits. Let’s talk about how you can increase that Average Dollar Sale or better known as ADS.
One of the most important aspects of ADS is the measuring process! You will want to identify your business’s ADS by dividing the revenue by the total number of jobs you have. If you prefer, you can also track ADS per technician. This will make it easier for you to identify the source of any inconsistencies and input any proper training or re-training methods. It could mean you need to review some business policies and documentation procedures. Creating a Systems Manual could be extremely helpful.
When of your employees forget to charge for services they have completed they are basically throwing money away. It is one thing to know how to perform a job and it’s another thing to know how to charger for that job. It could also mean that your employees are not confident in explaining why they did what they did to your clients. All of these topics are good subjects to cover in an in-house ongoing training program, a vital component to a happy, healthy and thriving business.
Next week we will tackle the 4th and final topic, Margins!
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