In our previous articles, we discussed the reasons why Mean Copies between Calls (MCBC) is the most important metric, and we looked at some of the issues that impact that value. In this article, we want to start trying to find ways to address the issues in the service department.
Start at the Top
The commitment to address the issue and change your philosophy has to start at the most senior levels in the company. In most cases, the goals, metrics, and practices will be significantly different than your current ones. If the owner/president is not behind these changes, it may be impossible to get the changes made.
The senior management team needs to understand that there may be bumps in the road as you move forward, but if you stay the course, the end result will be more profit, happier customers, and easier sales.
Articulate the New Philosophy to the Team
Once this decision is made, it is important that everyone involved understands the plan and why it will help them. You must...
When a copier dealer replaces a competitor’s machine they usually also pick up a supply of surplus toner that is stored at the customer’s site. These supplies in many cases get discarded or sold wholesale. While this is good for the dealer installing the new equipment, it is an unnecessary expense for the previous vendor.
When examining why service profitability is suffering, problems with supply expenses may not surface. This can result in pressure on technicians for more productivity and to reduce parts costs.
Why it Matters
Toner control affects two issues. One is the need for capital, and the other is dealer profitability. From the capital perspective, if the average toner costs the dealer $30, and they have 10,000 units in the field, and the average unit has two extra cartridges, that is tying up $600,000 of capital.
From a profitability standpoint, that same $600,000 has been written off and would show up as an unneeded expense. This could have an impact on a...
One of the most important factors in the success of a copier dealership is the commitment to training. In my time working with dealers, one common factor in each of the most successful dealers is their investment in training. The successful dealers make sure that each technician is trained on the products they service.
Benefits of Training
Training will benefit both the employee and the employer. In many cases, a dealer will say that it costs too much to send all the technicians to training. Dealers may decide to only send one technician to the factory school and hope he can train the other technicians.
This ignores the fact that an individual may only retain 30% of what they learned in class. If the technician comes back and remembers even 50% of what he learned, the technicians that he teaches will be down to 25% of what they need.
Training benefits both the employer and the employee and we will discuss these benefits.
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In the last article, I discussed the importance of Mean Copies between Calls (MCBC) this may also be referred to as Mean Calls between Visits (MCBV). Since that is the number one factor in the cost of a copy, every service manager needs to focus his attention on growing that number. In this article, we will look at several factors that affect that metric. These factors can be measured using First Call Effectiveness (FCE), and this is the easier metric to measure.
How to Define FCE
I will use the same definitions and formulas as used by BEI Services to determine the FCE. I chose this method because it more clearly identifies the performance factors involved, and it does not get diluted by including courtesy calls, installs or network calls. This is known as a results-based FCE.
Call back (CB) is: CB%= CB/ (Emergency (EM) + Scheduled Calls (SC))
Hold for Parts (HP) is: HP%=Hold for Parts (HP) + No Parts/ (NP + SC + CB)
FCE would be the balance of the CB% and HP%.