By Steve Andrew, Vice President of Marketing, North America, for IFS
Trade contractors are waking up to the full revenue potential of selling services that extend beyond the initial construction, installation or commissioning of a customer project. Some sectors, like HVAC and refrigeration contractors, have been successfully selling aftermarket service contracting for some time. But today, customers expect more responsive, technologically-enabled services. And downward price pressures and increased customer demand for lifecycle support of their project mean contractors are pushing more and more revenue from the project itself into an aftermarket service contract. This requires sophisticated field service management technology capable not just of streamlining work at the customer site, but encompassing the entire value stream. Implementing a comprehensive field service application is the only way to ensure service contracts are structured and measured for profit, that your contracting firm has the capacity to deliver on commitments and that those commitments are ultimately met.
Lacking a broad and powerful field service management application, trade contractors can find themselves facing:
- Losses from service contracts that are priced too aggressively.
- Poor new project win rates when competitors can price their projects more aggressively due to a profitable aftermarket service offering.
- Inability to identify upsell opportunities while on a job site delivering maintenance.
- Inconsistent delivery provided by self-performing or subcontracted resources.
- Inability to adopt new disruptive technologies like the internet of things (IoT).
- Challenges with tracking and delivering on various customer-specific service contracts, leading to penalties for missed service level agreements (SLAs).
If your contracting business gets its operations processes right by leveraging comprehensive field service management software, however, you can price aftermarket service for profitable delivery even as you price the initial contract more aggressively in anticipation of the continuing aftermarket revenue stream.