Average Anual Income For Service Truck

[electriciansnet]

Hello All!
My question is actually two-part:
I'm putting together a small service department with two trucks and I have acquired an investor to help get it off the ground. He has asked me for a business plan which I am paying a pro to put together but I need to come up with some data.

1) I realize that there are many variables and the income varies dramatically from market to market but has anyone compiled an average annual income per truck for a truck performing commercial and residential service calls?

2) I'm looking to host a new site for both the customer and the service tech that will not only provide the customer with a means of scheduling a call and track the progress but to also provide the tech with a means to receive the work order, invoice the job and collect and have all the transactions sync with my QB company file. Does anyone know of a solution for a scenario like this?

 

[electriciansnet]

I still want to hear some input from some of you contracting gurus but I did find this interesting article:
http://www.ecmag.com/?fa=article&articleID=5016

 

[macmikeman]

I am going to say 250k avg. But I base on one. I know members here who run ten (or did) and they got that down to a fine science. So expect a higher number from them.

 

[jwjrw]

We do anywhere from 400 to 800 a day per truck. It really depends on what type of calls you get. Do you have the business to keep two trucks busy everyday all day?

 

[rodneee]

fine science

fine science

I am going to say 250k avg. But I base on one. I know members here who run ten (or did) and they got that down to a fine science. So expect a higher number from them.

i think 250k is an accurate and attainable number...but all i know is the more trucks we have on the road it always seems the average gross per truck declines...the term is "dis-economies of scale"...

 

[iwire]

Figure out how many billable hours you expect in a year out of a van.

Figure out what your rate will be (No small task if you really want to nail it)

Now you know how much the van can make.

No one here can tell you what your market, costs, or ability to sell your services are.

 

[macmikeman]

The other thing to consider is this. You may arrive at a basic target number, but sometimes it gets slow, sometimes it picks up and gets fast, that part is the real target you want to concentrate on. Try to always upsell every job in order to offset slow times or schedule hangups cause you will experience those unless you are real superb in your marketing and management operations.

 

[satcom]

The other thing to consider is this. You may arrive at a basic target number, but sometimes it gets slow, sometimes it picks up and gets fast, that part is the real target you want to concentrate on. Try to always upsell every job in order to offset slow times or schedule hangups cause you will experience those unless you are real superb in your marketing and management operations.

The up selling is the key to making the target, however the larger number of EC's out there have a hard time when it comes to dealing with the business end of the trade, and up selling may be difficult for them.

 

[GUNNING]

The Formula....

The Formula....

Plumbers have no help on the switchboard and up sell at the site when the water is running and cant be stopped.
A/C companies here use a "Comfort Specialist" to arrive after the client is sitting in sweltering heat to sell them a new system.
Both are salesmen. If you want to increase sales you need a salesman. Either someone that shows up and closes the sale while keeping your interests intact before the work is done. Or a Really good tech with very good paperwork skills and good verbal abilities. Some one that can up sell and close the sale.

I live in a town with about 50K to 80K people in Florida. I could do 5 service calls a day -switch broke - breaker tripped - gfci added - -- when it was booming. Its not booming now.

Incentives would be the best approach to keeping your systems and procedures intact. Make the gatekeeper the bookkeeper and base all pay on a percentage of collections. I think that is what the plumbers here are doing.

Flat rate and paid before they know what hit em. Big ad in the yellow pages to keep em coming. Get the trucks wrapped with logo and pictures and the techs in uniforms and booties. Change your name every couple of years when the brand gets a bad rap.

 

[jwjrw]

Plumbers have no help on the switchboard and up sell at the site when the water is running and cant be stopped.
A/C companies here use a "Comfort Specialist" to arrive after the client is sitting in sweltering heat to sell them a new system.
Both are salesmen. If you want to increase sales you need a salesman. Either someone that shows up and closes the sale while keeping your interests intact before the work is done. Or a Really good tech with very good paperwork skills and good verbal abilities. Some one that can up sell and close the sale.

I do our estimating. I am a salesman. That much is true.

I live in a town with about 50K to 80K people in Florida. I could do 5 service calls a day -switch broke - breaker tripped - gfci added - -- when it was booming. Its not booming now.

It's slowed down for us but we are still growing. Adding new customers every month.

Incentives would be the best approach to keeping your systems and procedures intact. Make the gatekeeper the bookkeeper and base all pay on a percentage of collections.

We pay our guys well. They work hard for us because of that and they know the more the company makes the more their bonus's will be.

I think that is what the plumbers here are doing.

Everyone knows Electricians are smarter than plumbers so I don't care what they are doing.

Flat rate and paid before they know what hit em. Big ad in the yellow pages to keep em coming.

Yellow pages here will get you 1 call a year. The phone book is a thing of the past. The internet is the future.

Get the trucks wrapped with logo and pictures and the techs in uniforms and booties. Change your name every couple of years when the brand gets a bad rap.

Yea I would much rather call a new company that I have no idea about than one in business since 1974 in my area. If our business gets a bad name it will be because we sold it to someone and they ruined the name.
When I had our roof put on I passed over all the new companies and looked for one in business in our area for years. Still don't know they won't go out of business but I felt better knowing they have been in business for years.

 

[220/221]

I am going to say 250k avg.

That's about right.^

 

[electriciansnet]

jwjrw "Do you have the business to keep two trucks busy everyday all day? " No there yet but this is part of the reason for the investor. Questions regarding the most affective media for the $ will be forthcoming. Thanks!

 

[jwjrw]

jwjrw "Do you have the business to keep two trucks busy everyday all day? "

We do one week and the next we may not. We do remodel, service, outdoor landscape, sewer lifts commercial, solar and anything else the customer might want. If I'm slack on service my guys can go work on the other projects we have going.

No there yet but this is part of the reason for the investor.

We have been in business since 1974. We are still growing but not at the rate we were in 2007. A lot of established companies here are either out of business or downsized to 5 to 6 guys. Starting a service business where I am IMO will be slow and will take a few years. Even with a good economy. Where you are it may be different.

jQuestions regarding the most affective media for the $ will be forthcoming. Thanks!

Angie's List and my Website have brought me the best bang for the buck. Our talk radio station ads work if you can afford to run them all the time.
I got 29 new customers in aug, and 38 in sep off angies list.

 

[hillbilly1]

Starting a business while the economy is bad, is the best time to do it. It teaches you to be frugal and keep a keen eye on costs. Not the easiest way to do it though.

 

[jwjrw]

Starting a business while the economy is bad, is the best time to do it. It teaches you to be frugal and keep a keen eye on costs. Not the easiest way to do it though.

I'm so frugal (tight) I squeak when I walk.
I look at every invoice I get line by line and make sure each price is what I was quoted. We use a cash back CC for gas and materials now. I was shocked at the amount we got back and my end of the year tax prep is easier. All our material and gas is paid for with the same card and payed off each month.

 

[electriciansnet]

Upselling

Upselling

Thanks to all of you for this great input. I may quote some of it in the business plan.
macmikeman- thanks for the advice and I'm perusing it now.

To all of you mentioning up selling- YES!!! Up selling is a big part of my vocabulary with my men. Its like the icing on the cake because the "Rolling Expenses" have already been dealt with.
Rodnee: Thanks for the new term "dis-economies of scale". This is probably a term well known by the couple of large companies in my area that have had to shut their doors because they could not keep up with the overhead of the 20+ trucks in the parking lot of their huge shop that worked so well in the mid 90s.

Bob (IWIRE)- No one here can tell you what your market, costs, or ability to sell your services are. This is very true but I'm looking for market data in this case and i got some good stuff. However, if my ability to sell were a major factor I would be soaring right now. My ability to be seen is my big problem.

Gunning- I also operate in Florida. This new service department is going to be all about image! The plan is to implemant "Trucks wrapped with logo and pictures and the techs in uniforms and booties.". The foundation of the business plan is to appear like a Fortune 500 company while maintaining the lowest overhead possible. I considered up selling bonuses but I ran into an HVAC buddy of mine and his boss is paying all of his people a flat percentage.
He's making more $ than he's ever seen and so is his boss. Sort of like mini-subcontractors. This is the concept I have decided to implement because I'm certain it will dramatically encourage sales. I also plan to use report cards based on followup calls along with bonuses for every 10 perfect report cards. This is a ripped off Home Depot concept. Remember the patches on their aprons? Every 10 were good for $100.

Thanks again to all of you for your reply and about to make a new post:
"What Is The Most Effective/ Cost-Effective Marketing For A Service Department?". Thank Guys! Andy

 

[electriciansnet]

What Is The Most Effective/ Cost-Effective Marketing For A Service Department?

What Is The Most Effective/ Cost-Effective Marketing For A Service Department?

I'm putting together a new (two truck) service department that is going to be a kind of child company of a well established, Florida based company where I have been VP for about 7 years. This new department will come with a new fresh and modern spin off logo; a slightly altered name and a ton of new concepts that focus on public/ customer relations and employee incentives.

The foundation of the business plan is to appear like a Fortune 500 company while maintaining the lowest overhead possible. I'm having a business plan built and I'm lacking the marketing data and advertising budget. This is an area that i really, really need to get right the first time around. Not only for the business plan but for my concept to fundamentally succeed.
We all know that bad advertising can be a business killer and quick!
Currently I pay to be in a rotation and receive text messaged leads which, combined with word-to-mouth, keeps me us fairly busy.
However its the commercial bid jobs that pay the bills but that's about all they do.
Whats working for you guys that are succeeding on the service end? Google Local? Your own site and SEO? Billboards, radio, cable?

 

[macmikeman]

Hey, can you come over here and be my boss too..... I remember when I had all the spunk you got, but none of the training you are starting out with. Your a lucky fellow. I thought it was all about electrical when I started my company. Took some re-learning.

 

[Strife]

At best I'd say 2 men (providing you can always charge for 2) Jman and helper at average 70.hr times 4K hr :280K plus 30% on 120K some materials (36K). So, at best 316K
At worst, 1 man, with 15% time unaccounted for @ $ 50.00/hr times 1600hr (2000 -minus the 15% unaccounted for) : 80K, plus 20% on 120K some materials (24K). So at worst 104K. Providing you can keep even one busy.

Now that unaccounted for time can be as good as 5% (don't think you'll get better than that) or as worse as 40%. It depends on how well the trucks are stocked (to eliminate the need to go to a supply house for most common items, and how well your electricians are at convincing the customer it did take THAT much to do the job.

Hello All!
My question is actually two-part:
I'm putting together a small service department with two trucks and I have acquired an investor to help get it off the ground. He has asked me for a business plan which I am paying a pro to put together but I need to come up with some data.

1) I realize that there are many variables and the income varies dramatically from market to market but has anyone compiled an average annual income per truck for a truck performing commercial and residential service calls?

2) I'm looking to host a new site for both the customer and the service tech that will not only provide the customer with a means of scheduling a call and track the progress but to also provide the tech with a means to receive the work order, invoice the job and collect and have all the transactions sync with my QB company file. Does anyone know of a solution for a scenario like this?

 

[John120/240]

Best of luck with your new venture!! We expect a status report next

Halloween. John