Maximizing Appliance Service Profit
Rod Williscroft, president of Totem Appliance in Burnaby, British Columbia, Canada, handles a lot of warranty service calls. To ensure his company maximizes profit on manufacturer, COD and third-party warranty services he follows two main rules: break out and document in a business report the costs attached to each type of service and communicate your needs clearly to the warranty providers.
“Every type of call you get has different costs associated with it,” Williscroft told a group appliance dealers and service providers during his session “Service Finance: Understanding Your Cost of Doing Business Report” during The Service & Retail Convention this week in Las Vegas. The convention is sponsored by the North American Retail Dealers Association (NARDA), the United Servicers Association (USA) and the Electronics Technicians Association (ETA).
“All of this breakdown is to develop an honest answer of what each service costs,” Williscroft said, describing certain processes and tips that can easily apply to the service businesses of CE and appliance retailers alike. “Even though the whole bundle looks good, you have to break it down.”