Now is the Time to Reevaluate Service Pricing

Service managers need to think more purposefully about technician assignments and posted labor rates to maximize profitability..

Bob Clements believes there’s never been a better time for service managers to take a hard look at their pricing strategies. “Think about all the equipment that was sold in 2020,” Clements says. “We are going to have a tsunami of service and parts hit us in 2021. I would love for people in service to reevaluate their posted labor rate.” The president of Bob Clements International has seen a lot in his 36 years in the agricultural equipment business, and he’s convinced that the most misunderstood aspect of service is pricing strategies. Clements says he hasn’t seen much focus on how jobs are priced out, or how to best utilize the 3 types of pricing — menu pricing, flat rate pricing and time and material pricing. READ FULL ARTICLE>>