Some techs won’t sell Service Agreements because it effects their commission. Their logic is, “Why would I just give away 15% of my pay? I may not get to see the client again for years.”
This logic is obviously flawed. I’m not going to try to change the mind of the tech in this post. Nor will I build value on the service agreement. Those posts have been written and you can read them in the following links.
No, this post is going to be different. Instead of appealing to the long term thinking of your tech, I’m going to get at the core of the problem.
The Core of The Problem – the negative effect of a positive incentive
When a tech can sell a Service Agreement, but doesn’t, it is an incentive problem. As mentioned, the tech doesn’t want to give up his 15%. RELATED – How incentives ruin performance
So, as a service manager, you are going to use this as leverage.
REMEMBER – This technique is highly effective, and highly unpopular with your techs. *However, your clients will love it.
The highly effective and unpopular way to guarantee that techs will sell service agreements
I encourage you to us this approach with caution. Reserve it for once the tech has proven himself to be unwilling to sell Service Agreements.
Step #1 – The Warning
Inform the tech that you are going to have your best CSR follow-up on every call, and offer the Service Agreement to any client that didn’t purchase one. If you don’t have a CSR that can close the Service Agreement, then you do it as the manager.
Step #2 – The Follow-up Sales Call
Immediately call the client. Make it part of your satisfaction call, or “happy call” if you prefer. Build the value of the Service Agreement. Highlight the savings on today’s service call, and the savings on future service calls. Inform the client that you will send her service agreement savings to her in the form of a check, or reimburse her credit card.
Step #3 – Give the Service Agreement Spiff to the CSR (or you keep it)
The tech DOES NOT get the Service Agreement commission if he didn’t earn it. This is critical. Give it to the CSR.
Step #4 – Adjust the Tech’s Commission
This is the final step. You will only pay the tech for the retail value of the job after the client’s Service Agreement discounts are applied.
So, if he was worried about losing his 15%, then he lost it anyway. In addition, he lost his Service Agreement Commission as well.
How effective is this?
More effective than you realize. One of the most powerful forces in nature is the fear of loss. Why do you think we are so scared of the IRS? The IRS audits less than 0.01% of all tax payers. Yet, the IRS is the most feared federal entity. Why? Because they can take your money!
Just like the IRS, this technique will be highly effective and it won’t be popular.
The Service Manager’s fear
If you are a service manager you may be asking yourself the question, “Should I do this? My guys may not like me!”
To that I say, “Deal with it!” You have to grow into a good leader someday; and the sooner you do the better off you will be.
As a service manager you have the responsibility to grow your team, company, and take care of the client. There will be plenty of times that you have to ensure that all three are winning. It is often in these times that you will need to implement some of your most effective and unpopular programs.