282 - Are You Losing Money on Every Service Call?

Is your service department draining profits instead of generating them? In this practical episode, Martin and Khalil tackle a real contractor dilemma: how to transform service calls from costly overhead into a profitable business segment. Discover why your current pricing model might be leaving thousands on the table and the straightforward systems you need to fix it.What You’ll LearnWhy mixing service and install teams creates hidden profit leaksHow to properly calculate service call pricing (hint: it's much higher than you think)Simple systems to separate service operations for clarity and profitabilityWhy treating service as a "loss leader" is destroying your marginsTime Stamps00:52 - Episode Intro01:02 - The Service Dilemma03:23 - Exploring Solutions and Pricing17:37 - Final Thoughts and TakeawaysSnippets from the Episode"If I can't figure out what something costs me and what I gotta sell it for, then I shouldn't be doing it." - Martin Holland"I think the way that this gets created is you start thinking 'If I can't service these clients, the builder's gonna get upset and not give me new jobs.' So we have it as a loss leader. That's a recipe for disaster."- Khalil Benalioulhaj"Make some estimate and just make sure the estimate is high enough that it's worth it. If we get half of our estimated calls, we still make money."- Martin Holland"You gotta know your costs. That's the takeaway."- Martin HollandKey TakeawaysDouble your service department costs at a minimum when setting pricesSeparate service from installation teams completelyStop treating service as a loss leaderUnderstand the full cost of running a dedicated service departmentBe bold with pricing until you get pushbackService should have its own tracking and profit metricsService work requires specialized skills and dedicated resourcesResources⁠⁠⁠⁠⁠24 Things⁠⁠⁠⁠⁠ Construction Business Owners Need to Successfully Hire & Train an Executive Assistant⁠⁠⁠⁠⁠Schedule⁠⁠⁠⁠⁠ a 15-Minute Roadblock CallCheck out⁠⁠⁠⁠⁠ OpenPhone⁠⁠⁠⁠⁠Build a Business that Runs without you. Explore our⁠⁠⁠⁠⁠ GrowthKits⁠⁠⁠⁠⁠ Need Marketing Help? We Recommend⁠⁠⁠⁠⁠ Benali⁠⁠⁠⁠⁠Need Help with podcast production? We recommend⁠⁠⁠⁠⁠ Demandcast⁠⁠⁠⁠⁠More from Martin Holland⁠⁠⁠⁠⁠theprofitproblem.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠annealbc.com⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠Email Martin⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Meet With Martin⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠More from Khalil⁠⁠⁠⁠⁠benali.com ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Email Khalil⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Meet With Khalil⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠More from The Cash Flow ContractorSubscribe to our⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠YouTube channel⁠⁠⁠⁠⁠Subscribe to our ⁠⁠⁠⁠⁠Newsletter⁠⁠⁠⁠⁠Follow On Social:⁠⁠⁠⁠⁠ LinkedIn⁠⁠⁠⁠⁠,⁠⁠⁠⁠⁠ Facebook⁠⁠⁠⁠⁠,⁠⁠⁠⁠⁠ Instagram⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠X(formerly Twitter)⁠⁠⁠⁠⁠Visit our ⁠⁠⁠⁠⁠website⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Email⁠⁠⁠⁠⁠ The Cashflow Contractor