Executive Outlook: Increase Service Revenues To Recession Proof Your Business

By Chris Koterski, Stratix

Business leaders at this year's WBR Field Service show estimated that for every $1 in products sold today, $4 is sold in services. One simple fact can help you survive this recession: when equipment sales are down, service revenues increase. This said, many service providers have taken a "keep the lights on" approach to survival, where limiting new investments and reducing headcount have been the key focus. We're now seeing signs of economic improvement, and businesses are realizing that these are not sustainable strategies for growing top-line revenue. When the dust settles from today's economic storm, those who come out on top of the competition will have their service business to thank. Let's examine some strategies for positioning your service business to see assets, opportunities, and profitability at a time when your competitors are seeing liabilities, risks, and financial loss.