FlatRateNOW Blog

Importance of Average Job Value & How the community achieves a positive $1,800 value

Written by Marcel Donnelly | Nov 22, 2022 9:56:52 PM

Do you know what your current Average Job Value is? 

Your average Job Value is a powerful indicator for how hard you and your team must work to achieve your goals.

Lets say your business has an average job value of $500 and the monthly sales target is $50,000. You would need to convert approximately 100 jobs. If the business converted 50% of the jobs attended to, then you would need at least 200 leads that month to achieve the sales target:

 

Current Average Job Value: $500

Desired Sales Target for Month: $50,000

Required Number of Job To Convert: approx. 100 Jobs

Conversion Rate: 50%

Number Of Jobs Job Opportunities: approx. 200 Jobs

 

Based on the example above, if the business were to increase their Average Job Value by only $100, the sales target may be achieved with 32 fewer jobs.

 

Potential Average Job Value: $600

Desired Sales Target for Month: $50,000

Required Number of Job To Convert: approx. 84 Jobs

Conversion Rate: 50%

Number Of Jobs Job Opportunities: approx. 168 Jobs

 

 

How does the community achieve a positive Average Job Value of $1,800?

 

As you can see above, improving the average job value could lead to significant benefits to the business:

  • Requiring less jobs to convert means lower marketing expenses
  • fewer jobs with higher value requires less travelling between sites and lower fuel expense
  • A lower number of higher value jobs means your tradespeople can focus on the job at hand and deliver a better quality customer experience

As demonstrated above, the benefits of achieving a higher average job value for your business are self evident. Below are some of the methods our FlatRateNOW community employ when on site, which we recommend you try.

 

  • Providing Alternative Options
  • Providing an option for 'Associated Work'
  • Offer Onsite Discounts/Immediate Go-Ahead Discounts
  • Embrace 'No"

 

Providing Alternative Options

No one enjoys feeling like they have been pigeon-holed into accepting a quote. To ensure they're getting the best deal, your customer will often want to compare your quote with that of a friend or competitor. 

To help avoid your customer feeling 'pigeon-holed' and potentially having 'buyer's remorse', you can provide additional options. Whilst there are jobs that are difficult to provide alternative options for, it can prove highly lucrative to offer different products in those situations. 

 

Providing an option for 'Associated Work'

This method is best explained in the form of the below example. 

What we mean by 'associated works', is not an alternative solution, but technically it is up-selling work that isn't going to solve the current problem at hand BUT could be completed at the same time to save time/effort/money for the customer if they were already interested.

Here are 2 examples:

Plumbing:

Your customer has a leaking tap, while you are onsite, you offer 3 options to the customer:

  • Option A: Service the Tap

  • Option B: Replace tap with a similar model

  • Option C: Replace tap with a new brand (generally a more expensive model).

Before you present your options, you take a moment and look at the area for 'associated works', it could be:

  • Installing an undersink filtration system

  • Convert 'Tap & Spout' to Mixer tap

  • Installing new flexible hoses

Each of the above could be added to Option D and presented to your customer as 'Associated Works'. They may say 'no' to each of the associated works and that is okay, but there is a chance they may say 'yes'. 

 

Electrical:

Your customer has requested that you install a 2 new downlights but they'd like to get their own products, you offer to the customer:

  • Option A: Install the 2 new downlights (customer supplied)
    • You explain the downside relating to warranty and how they are on their own if the product is defective
  • Option B: Install 2 new downlights (business supplied)
  • Option C: Install 2 new downlights (business supplied) with remote dimming function

 

Before you present your options, you take a moment and look at the area for 'associated works'. it could be:

  • Inspect the property switchboard to ensure it is compliant with the Australian Standards
  • Inspect the wiring that you'll be connecting with for the downlights to ensure there are no potential faults
  • Install a new light switch that merges the fan
  • Install a new light switch that is touch-sensitive

There are a number of associated works you could offer your customer alongside installing the new downlight. Similar to the above for plumbers, your customer may say 'no', and that is okay but the chance they may say 'yes' is very important.

 

Offer Onsite Discounts / Immediate Go-Ahead Discounts

Your business will burn a lot of time, energy and fuel going backwards and forwards from jobs. To reduce this burden on your team, a simple method we have learnt from the community is to offer an 'Onsite Discount'.

And the way they offer it to their customers is quite simple as well.. "If you go ahead with this work right now, we can do it for this price, however if we come back at a later date to complete the work, the price will be standard".

This works because if your customer wants the work done anyway, they may be inclined to proceed straight away to save themselves money and also reduce the need to have you back in their property again in the future!

 

Embracing 'No'

The methods above will lead to you and your team hearing 'no' a lot more, and that is okay because that will mean you'll hear 'yes' more often as well.

This is an important trade off. If you are uncomfortable with hearing no from your customer, remember that by offering your customer more, they will come back to you in the future because they know that you were willing to go above and beyond for them.

 

You can begin NOW

The above methods, which the FlatRateNOW community do everyday, can be implemented today in your business with your current systems or processes.

To make it easier, we have features in FlatRateNOW that make it easier for your team to follow these methods, such as:

  • Quick Sale Feature
  • In-app catalogue
  • Scratchpad
  • Pricing Tier/Pricing Adjustments
  • Suggested Add-on Tasks

 

 

Find out how FlatRateNOW can help your business achieve increased Average Job Value and more chargeable hours. Book in a time with our solution specialist today on (02) 7202 6008 or through the booking link below: