Exposing The Myth Of Average Ticket

Unveiling The Truth About Average Ticket In Your Service Business

Ever wondered about your team’s average ticket? It’s a common topic among salespeople in the home services industries. The quest for this number often stems from the desire to benchmark performance, but here’s the catch — most comparisons are based on an inflated version of the average ticket.

Service Excellence has worked with many home services companies, so we know a thing or two about the emphasis placed on average tickets. Explore the breakdown of the average ticket ahead and consider reevaluating how you target that golden “average ticket” goal.

The Myth Of Inflated Averagesclose up on a calculators numbers

Companies frequently calculate their average ticket by considering only closed calls. The unclosed calls — like diagnostic-only calls and zero-ticket calls — are conveniently left out of the equation.

This artificially inflated average ticket might make your numbers look good, but it’s far from a true reflection of your service company’s performance.

Inflated Average Ticket Formula

The typical formula used to calculate average ticket numbers is:

Total Money Collected / Total Calls Closed

While this approach might offer a momentary boost, it doesn’t provide an accurate measure of your team’s performance. This really only gives you information on the average revenue incurred from all closed calls.

The Accurate Calculation: Opportunity Calls Matter

A genuinely accurate average ticket takes into account all calls, closed or not. The formula for this calculation is simple yet revealing:

Total Money Collected / Total Opportunity Calls

Now, you might be wondering, what exactly constitutes an opportunity call?

Opportunity Calls Include:

  • Demand calls
  • Scheduled maintenance calls
  • Tune-up specials
  • Sales calls

Yes, even those zero tickets and diagnostic-only calls go into the average when they were opportunities. However, there are exceptions.

Not all calls are opportunities. For instance, warranty calls and callbacks would not factor into the equation. While many techs do close sales on warranty calls and callbacks, these are excluded from the calculation. Of course, they should be accounted for separately.

Why Calculate The Average Ticket Accurately?

The primary reason for accurate calculation is to determine the true return on investment on each opportunity. Unmasking the real average ticket provides insights into the effectiveness of your service team and the actual value generated by each opportunity.

Ready to demystify your average ticket and uncover the genuine performance of your service business? It starts with an accurate calculation that includes all opportunities, bringing clarity to your return on investment and paving the way for informed decision-making. Sign up for a training session with Service Excellence to learn more and IGNITE THE POWER WITHIN!

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