How to Boost HVAC Revenue
The basic necessity of each business is to continue to expand and grow. The only method by which this growth can be achieved is by an increase in the revenue. According to 2014 figures there are more than 80,000 HVAC businesses in the US. These businesses vary from contractors who are independent to conglomerates that are in the multi-million dollar status. Basically, an HVAC company makes money from sources that include carrying out installations or their repairs, maintenance and their replacements. These jobs will naturally come from diverse industries that include residential and commercial besides both healthcare and education. A finer study indicates that mere maintenance and repairs form almost 30% of the revenue source, another 7% coming from replacements. There is no denying the fact that a recurring service agreement is the perfect method of increasing revenue source while ensuring that customers keep coming back to you. Entering into a service agreement with the customer each time an HVAC unit is sold is the right method of economic planning. This is fairly simple because every customer realizes that a plan based on preventive maintenance is the saner choice as compared to breakdown maintenance which is both costly and cumbersome. Unfortunately, these services are usually not sought by the industry. This is where the HVAC manufacturers can obtain professional help from a leader that develops IT solutions for HVAC sector as well as fleet services and others.
Professional Help Pays
IT professionals in the field of Warranty Management Systems have on offer different methods of processing of claims, carrying out warranty claim management, return of parts, the creation and discharge of service contracts as well as providing extended warranties. Such a support structure is continuously evolving and making further improvements in the strategy. A strong program is essential for the administration of the warranty process. This includes policy monitoring, creation of flat rates as well as fault codes besides the management of rules and the processing of claims. What makes these professionals different is that they provide a single window for all the problems related to the warranty process. Such a system ensures that delivery is consistent and there are features that are built in for both advanced functionality as well as reporting.
The Administration of Warranty
There are different aspects of relevance in the administration of warranty.
- There must be a constant up gradation of warranty policy. This also includes the updating of the policy to process claims.
- The setting of current labor rates and services. This includes discounts and markups.
- Development of failure codes involving multiple levels. This will also define not only the type of job involved but also the cause of the failure and the subsequent analysis of the failure.
- The aspect of optimization of future pricing during the extended warranty period will also be considered.
- The important role of inventory management will be considered and tackled. This includes the critical aspect of ensuring the despatch of the right part to the right location well in time.
- The creation of questionnaires, pre-delivery inspection reports and other custom reports will be ensured while reserving the ability to study these when these have been filled in by either the dealers or the service centers.
The ultimate idea is to effectively manage warranty policies and other associated policies with the intent to process the claims efficiently. It is also of great importance to be able to discover the main cause of failure once a pattern has been created. Proper warranty administration ultimately creates customer confidence and helps increase manufacturer revenue.