Select your language

Maintenance is a necessary evil

Mantenimiento

One of the fastest ways to grow in sales and profit is through the maintenance and service department.

By Miguel Villegas*

For many, maintenance is a department of the company that must be simply because, by obligation of customers or manufacturers, and usually becomes a necessary evil. It is managed in permanent crisis, it becomes a source of stress for the company, even its facilities are located in the last corner of the winery.

When asking several entrepreneurs in the industry about their maintenance and technical service department, they make gestures of anguish, anger or resignation. Some of the comments: "It is a headache - they generate many problems, stress - they have made me lose important projects and clients - we have it only because it is an obligation, that is not business and very little is billed".

In reality, maintenance and service departments are the most profitable of the companies, obtaining exit margins of 40% to 50% on average. These companies have managed to differentiate their service and invest adequately in equipment, people, consultancies, systems, certifications, advertising.

Some of the largest companies in the region report that their service departments contribute 25% to 30% of their total profit; The service can be very cost-effective because the greatest weight of the cost is obtained from technical labor. Large inventories are not required, give advances to manufacturers, in short, make risky financial bets.

- Publicidad -

One of the fastest ways to grow in sales and profit is through the maintenance department and technical services, but how to do it? The first thing is to understand your natural market, then the potential market, after understanding the opportunities that exist, it is necessary to design an operational commercial strategy that can be sustained over time, that can become an elastic offer so as not to have unnecessary sunk costs, establish controls, KPIS that allow measuring month by month the fulfillment of the strategy.

For example, your company specializes in chilled water installations, first analyzes your market namely how large the overall installed base is, what size your own installed base is, which brands are predominant, who your main competitors are, what are the underserved services and how you can differentiate yourself and add value. These are the key words. It is identified that there is no integrated offer in the market, which includes water treatment, mechanical maintenance, thermography, water balance (TAB), 24/7 attention and breakdowns, spare parts stock, among others.

In the operational commercial strategy, a work plan and a budget must be made to obtain commercial partners that offer these services, acquire appropriate tools, such as thermal imaging cameras, train staff to provide services, seek certifications, negotiate with staff their availability, provide means of transportation, A structure of the department is defined to be able to execute the PAN, the profiles for the hires are generated, etc.

A key factor in technical departments is to be able to have an elastic offer, especially at the beginning of growth, because demand will also be elastic, so it is recommended to have subcontractors that allow us to cover demand peaks and that in the valleys we do not have personnel without doing much.

Of course, the issue of contractors is something that always concerns quality, that customers are left at the end, etc. For this, there are moral and legal mechanisms as well as operational ones that lower the risk.

The differentiation allows that there are few competitors and that the services are more specialized, so they should also be more profitable, in addition these become a barrier of exit from the contract for the client, because when he goes to compare when he has an offer from the competition it is difficult to leave the services received and the value provided by his company.

In our cultures it is very common that we do not sustain the efforts and that we lose the course initially established, in addition to the fact that the follow-up is of low level. This makes indicators, controls, KPIS, periodic meetings ultra necessary.

A necessary and vital factor that makes the difference in a very powerful way is the inclusion of an exclusive (relational) sales force for the department.

Some of the important points to evaluate in the maintenance and technical service departments are the following:

•Sales
• HR (Sales vs Approvals)
•Usefulness
• Contract retention
• Double calls or guarantees
• Sales of new services
• Distribution of hours (Repairs, maintenance, breakdowns, etc.)
• Efficiency (Paid hours vs hours charged)

The recommended control meetings are weekly by operating units, general of the department monthly where it is possible to see the progress of the plans and results, as well as the modifications and adjustments.

One of the biggest and most common mistakes I have seen in different companies is to leave the entire operation very technical, including sales and administrative and organizational operation, coordinators, etc.

- Publicidad -

I recommend that there should be an important balance with administrators, purely commercial personnel and the engineering, technical team, each in its field and that important checks and balances be exercised between them.

In summary, the maintenance and technical service department does not have to be a necessary evil but rather a profitable business that allows us to retain customers and financial health as well as the necessary cash flow.

So I encourage you to sit down and self-evaluate, get out of the "Box" and think differently. If you have already done it and get excellent results, keep what you have and look for innovation.

Thanks a lot!

*Miguel Villegas Ugalde, Costa Rica, Licensed Marketer, 21 years of experience in the HVAC market. [email protected]

Duván Chaverra Agudelo
Duván Chaverra AgudeloEmail: [email protected]
Jefe Editorial de las revistas AVI Latinoamérica, ACR Latinoamérica, Ventas de Seguridad, Zona de Pinturas, Aftermarket Internation, Gerencia de Edificios, TV y Video, y Director Académico en Latin Press, Inc,.
Comunicador Social y Periodista con experiencia de más de 18 años en medios de comunicación. Apasionado por la tecnología y por esta industria.

No comments

• If you're already registered, please log in first. Your email will not be published.

Leave your comment

In reply to Some User
Mirage and Conalep Navojoa promote the training of refrigeration and air conditioning technicians

Mirage and Conalep Navojoa promote the training of refrigeration and air conditioning technicians

Mexico. Mirage announced a strategic alliance with the Plantel Conalep Sonora Navojoa to strengthen the training of new technicians in the sector.

New commitment to thermoacoustics for more efficient heat pumps

New commitment to thermoacoustics for more efficient heat pumps

United States. Copeland has invested in BlueHeart Energy, a Dutch startup developing thermoacoustic technology for more efficient and sustainable heat pumps.

Reliable Controls Appoints Sean Roukey as Business Development Executive

Reliable Controls Appoints Sean Roukey as Business Development Executive

International. Reliable Controls has appointed Sean Roukey as its new Business Development Executive for the Northeast United States.

KNX LATAM revolutionizes automation in Latin America with the Virtual Building Automation Days

KNX LATAM revolutionizes automation in Latin America with the Virtual Building Automation Days

Chile. Next Thursday, April 10th, KNX Latin America will hold the Virtual Building Automation Days, registration is free of charge.

GreenYellow and La Fazenda inaugurate a sustainable refrigeration system

GreenYellow and La Fazenda inaugurate a sustainable refrigeration system

Colombia. A new energy-efficient refrigeration system was installed at the La Fazenda refrigeration plant in Puerto Gaitán, Meta.

Officine Mario Dorin announces ambitious expansion plan at its Florence headquarters

Officine Mario Dorin announces ambitious expansion plan at its Florence headquarters

International. Officine Mario Dorin, a refrigeration company, has announced a major expansion plan at its headquarters in Florence, Italy.

Copeland expands its presence in Latin America with a new office in Chile

Copeland expands its presence in Latin America with a new office in Chile

Chile. As part of its regional growth strategy, Copeland has opened a new office in Santiago, Chile, strengthening its presence in the HVACR market.

Environment and UNDP recognize ten women for their contribution to the protection of the ozone layer

Environment and UNDP recognize ten women for their contribution to the protection of the ozone layer

Dominican Republic. Within the framework of International Women's Day, the Ministry of Environment and Natural Resources and the United Nations Development Program (UNDP) highlighted the work of ten...

Register for the Building Automation Webinar: Keys to Understanding Modbus and BACnet

Register for the Building Automation Webinar: Keys to Understanding Modbus and BACnet

International.  On March 27, 2025, ACR Latin America will offer a webinar focused on building automation protocols, with an emphasis on understanding Modbus and BACnet.

Scientists develop the first elastocaloric air conditioner on a commercial scale

Scientists develop the first elastocaloric air conditioner on a commercial scale

International. Researchers at the Hong Kong University of Science and Technology (HKUST) have developed the first elastocaloric air conditioning system with cooling capacity on a commercial scale.

Free Subscription
Remember Me
SUBSCRIBE TO OUR NEWSLETTER
DO YOU NEED A SERVICE OR PRODUCT QUOTE?
LASTEST INTERVIEWS
SITE SPONSORS










LASTEST NEWSLETTER
Ultimo Info-Boletin