Your Business Toolbox: Maximizing Resources in Installation Part 1

How Can You Maximize Your Installation Resources?
Part 1

Since January of this year, the national unemployment rate has been at or below 4%. In both June and July of 2019, the rate was 3.7%.1 Finding workers of any kind is a daily challenge for dealers across the country. Finding experienced installers has been especially difficult.

Every dealer needs workers to fulfill the promises they make to customers during the sales process. You can only sell what you can install. If you can’t find more workers, the only way to grow and improve profitability is by utilizing your existing team in the most effective and efficient ways possible. Today, dealers must leverage their limited installation resources to prime.

Ask yourself: Are my installers as efficient as they can be? Am I making the most of every installation?

BDR has developed a new business strategy called Leveraged to Prime™ to help you leverage all your resources to maximum effect.

Leveraged to Prime: To make investments or improvements to maximize the performance of a resource and achieve superior results.

Take a look at the first 3 steps to leverage your installation team to Prime:


Maximizing Install Step 1: Sell a great job

Leveraging an installation to prime starts well before one of your install trucks arrives at a customer’s home. It starts before any equipment is even loaded on a truck. A Leveraged to prime installation starts during the sales process by selling a great job.

Selling a job that includes high efficiency equipment and accessories will make the most of your installation team’s limited time. To understand why, compare a base job with no accessories to an upsell job that includes accessories:

► An equipment-only 14 SEER job that sells for $4,000 may generate an approximate net profit of only $80 if it is completed in one day by two installers.
► Contrast this with a 16 SEER sale with accessories that sells for $8,000. Now the net profit could be approximately $2,160 if it is completed in one day by two installers.

That’s a huge difference!

Utilizing your installers to generate $2,160 of net profit instead of just $80 leverages their valuable time. When you sell a great job, you start the process of maximizing the installation that follows.


Maximizing Install Step 2: Everything ready, every time

The value of an installer’s time can be calculated down to the hour, or even the minute, by adding the cost of loaded labor and the average gross profit dollars generated per hour (loaded labor is the installer’s hourly rate plus benefits).

Let’s run the calculation for a typical 16 SEER job with loaded labor at $45 hour and average gross dollars generated per hour at $280.This puts the cost of an hour at $325 ($45 + $280). No small amount! The cost of a minute alone is over $5 ($325 ÷ 60 minutes = $5.42).

Now think about the time it takes your installers to get their truck loaded and get themselves ready before leaving your shop each morning. How many minutes do they typically spend? 15? 30? More?

Consider how much of your install team’s time you could save by staging jobs for them so that they don’t have to spend so much time at the shop each morning. Using the calculation above, you could potentially pick up over $160 per install team every day simply by shaving 30 minutes off their staging time! 

Some dealers, knowing the possible time savings, have hired a warehouse manager to stage jobs, make sure vehicles are fueled and manage inventory. If installer time is running $325 an hour, warehouse managers don’t have to save the install team much time to pay for themselves.

Consider staging jobs for your installers so that “everything is ready, every time.” The time savings will help you leverage your installations to prime.


Maximizing Install Step 3: Provide training

Training keeps your team performing at the highest levels. Consider investing time to train your installation team in these three areas:

1. Products – Work with your Tempstar distributor to schedule product training that will keep your team up-to-date. You can also have easoned installers lead training sessions for your team at your shop on a specific product they know well.

2. Installation practices and efficiency – Your team should know the importance of saving time and how you want your company’s jobs to be completed. Top companies invest time to memorialize their installation practices in pictures, writing, and video. It’s much easier to train a new installer if you have an installation manual or a collection of videos to share.

3. Customer interaction – Installers can be your ultimate referral generators. But to do so, they must be able to communicate effectively, show care for the customer’s home, and build value in your company and your installation practices. Spend some time practicing these interactions so your team becomes comfortable in the field.

Just like professional athletes, your installation team needs training to make sure they are achieving peak performance and leveraging your installations to prime.


Leverage Each Installation to Prime


Today, there aren’t enough workers to go around. Maximize the ones you have by:


1. Selling a great job.
2. Having everything ready, every time.
3. Training your team.


Consider attending BDR’s 1-day Labor Management Fundamentals course, which goes in depth on all the topics covered in this article.


About the Author: 
Scott Tinder is a BDR Trainer and Instructional Designer. He leads BDR’s Successful Sales for HVAC, Successful Service for HVAC, PreWall 1: 4 Steps to $1 Million in Revenue, and Wall 1: 6 Steps to $3 Million+ in Revenue courses.

 

About BDR:
BDR is a premier provider of business training and coaching services to HVAC contractors. BDR is an authorized training provider for International Comfort Products.

BDR is responsible for the content of this article. Opinions expressed do not necessarily reflect those of International Comfort Products.    

 

1http://www.ncsl.org/research/labor-and-employment/national-employment-monthly-update.aspx