A short interview-style segment about advising clients who are building commercial service departments. The speaker emphasizes starting with a company-specific cost analysis to determine the minimum profitable price point, then confronting market and competitor pressures (e.g., low-priced competitors) and aligning service pricing and customer mix to reach profitability.
What do you find yourself doing with your clients as they're trying to build up a commercial service department? What are the things that you are actually helping them realize day to day?
We have a saying at BDR Fix sales. First you've got to make sure you're pricing your services properly. We can be as effective and efficient as possible, have all the right type of customers and those type of things. But if we haven't set our pricing structure correctly, then it's going to be much harder for us to be successful. I always go back and first of all look at companies individual costs. What price point did they need to be at to be profitable? This is where we start having a bit of a collision. We can't do it for that much money. Billboard Bob is offering it at this price. And so the first thing to overcome is all right, let's identify that this is where we need to be, make sure our prices are serviced properly and then what's really holding you back?