Ecmweb 8750 Rusty Wise Service Secrets Ecm Wide
Ecmweb 8750 Rusty Wise Service Secrets Ecm Wide
Ecmweb 8750 Rusty Wise Service Secrets Ecm Wide
Ecmweb 8750 Rusty Wise Service Secrets Ecm Wide
Ecmweb 8750 Rusty Wise Service Secrets Ecm Wide

Service Secrets: The Retail Contractor Mentality

Jan. 19, 2017
Knowing “cash flow is king” can help ensure your success.
Rusty Wise

I’ve been a master electrician in the electrical contracting business for more than three decades. Over the years, I’ve seen the industry from many different angles. I’ve crawled under houses, bent conduit, pulled wire, and run the office. I’ve been involved in the commercial, residential, and industrial aspects of the industry, ranging from houses, schools, retail, and roadway projects, which were public and private bidding-type projects.

Before becoming a residential services company, a small portion of my business was service and repair work because it seemed as though little profit could be made from these types of endeavors. Basically, I did it to keep my technicians busy. But like most contractors that don’t focus on service and repair work, you end up being a subcontractor to a general contractor. This means the general contractor is in control of the cash flow of your electrical company.

Cash flow is one of the most important aspects of any business. To improve your company’s cash flow, you must have a retail mentality — and with electrical service work, it’s a must.

Here are some key tips I can offer you on how to run a successful electrical service and repair company:

• Always charge the customer when services are rendered. When you go to the grocery store to buy a loaf of bread, you pay for it then. You don’t say to the cash register attendant “just bill me.” A successful electrical service and repair company charges the customer when services are rendered, and typically before leaving the property. For some, this may seem elementary, but the majority of

electrical contractors don’t take payments in the field. A dollar in your pocket is more valuable than two dollars owed to you.

• Always charge the customer per task performed. It’s important to move away from time and material charges. Using the loaf of bread example, do you ask the cash register attendant how much flour, water, and labor they have invested in the product? No. You just pick out the loaf you desire, and pay for it. Developing a preset pricing model, getting your technicians trained on this model, and structuring a way for your technicians to accept payment in the field are all vital parts of our business.

• Emphasize proper communication between your employees and consumers. Since your employees will be interacting more with the customer, proper communication is key. Communication occurs before the work starts, during the work, and after completion of the work. Again, proper communication is vital — especially because pricing and the payment is in the field.

• Adopt retail store hours. Extend your hours beyond 5 p.m., and work on weekends. You must provide service to your customers when they need it. What if you were selling that loaf of bread, and you were only open until

5 p.m.? More than likely you would lose a lot of bread sales. Retail electrical service work demands that you stay open longer during the work week and offer weekend appointments. In today’s world, many customers are working 8-to-5 jobs and might not be able to take time off during normal business hours to allow you into their homes. Offering service appointments after hours and on weekends is a great way to expand your business.

• Don’t be stingy with advertising. You have to build your brand and keep it in the forefront of the consumer’s mind. This takes money, and generally electrical contractors that work as subcontractors spend little or no money on advertising. But if you’re priced properly and keep your operating costs in check, investing in an advertising program should not be a problem. Most successful service contractors spend 10% to 15% of their sales on advertising.

I’ve learned hundreds of lessons as a residential electrical services company owner. In future articles, I will dive into these lessons and share more ways you can become a more successful service and repair contractor. If you want to get a jump start on things , then follow the tips above. This will ensure you are well on your way to future success.

Wise holds an A.S degree in Electrical Engineering and is licensed in N.C., S.C., and Va. In addition to being a college electrical instructor, N.C.-licensed real estate broker and former NASCAR race car driver, Wise owns and operates Mister Sparky in Charlotte, N.C.   

About the Author

Rusty Wise

Rusty Wise holds an A.S degree in Electrical Engineering and is licensed in N.C., S.C., and Virginia. In addition to being a college electrical instructor, N.C.-licensed real estate broker, and former NASCAR race car driver, Wise owns and operates Mister Sparky in Charlotte and Cherryville, N.C.

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