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Tip #4: Flatten demand to drive profit.


Seasonal businesses can suffer from feast or famine. As we have just entered the air conditioning season in Ontario, Canada, it offers a timely example.

Industry veterans say, “There’s not enough capacity in the entire industry to satisfy the demand when people first turn on their A/C”. It’s a defeatist attitude that assumes that we are victims of the weather and have no influence on the situation.

Fact is, many companies can significantly influence demand, improving productivity and driving higher profits.

Imagine how many “emergencies” would be avoided if we fire up the A/C before it needs to be put into use? All of a sudden, we have available technicians, parts, and reduced urgency on the part of the customer. That’s a recipe for outstanding productivity.

Develop a great customer list and communicate through any means necessary to “nudge” customers to pull ahead or defer demand into quieter periods. Converting your customer base to recurring revenue service contracts offers even greater influence as you pull ahead scheduled maintenance work or defer it to off-peak periods to flatten the demand curve (see tip #3). You will see a dramatic increase in off-peak productivity, keep your core team employed through the slower times and have happier customers whose equipment works when they really need it.

How do you influence demand to drive productivity and profitability? Share your experiences in the comments below!


Learn more about field service transformation with Chapman Management Solutions and download the free eBook with all 30 Tips at www.chrischapman.ca.

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