A repair vs. replace graph is a graph that home service technicians and salespeople can use to communicate to clients when a product should be replaced or when it should be repaired based on the age of their existing product and the cost of a newly installed product. When a graph is made, there is a curved line that goes through it. Anything above the curve means the product should be replaced and anything below it means the client should get the product repaired.
It might seem intimidating at first, but creating a repair vs. replace graph is actually pretty simple because you only have two variables to worry about: money and time. Here’s how to do it step by step:
Step 1: Draw a graph with an X-axis and a Y-axis.
Step 2: Label your Y-axis, or your vertical axis, ‘Money’ and label your X-axis, or your horizontal axis, ‘time.’
Step 3: Calculate the max cost your product replacement could be. Include the installation costs and fees associated with this product. This will vary depending on the product and cost of installation. For this example, we are assuming the max replacement cost is $15,000. Write your max replacement cost at the very top of your Y-axis.
Step 4: Identify the maximum lifespan of your product. Some external variables can affect this number. For example, an HVAC unit in Houston will likely have a shorter lifespan than the same unit in Chicago. For this example, our product’s max lifespan is 20 years. Once you find your product’s max lifespan, write it at the far right end of your X-axis.
Step 5: Typically, the younger a product is, the more money a client is going to be willing to spend on repairs. Identify how much a client would be willing to spend on repairs for each year (or a couple of years if you don’t feel like getting into the nitty-gritty) within the lifespan of your product.
Step 6: Once you find out how much a client is willing to spend on repairs based on the age of the product, plot your data points on the graph. The data points should form a curved line.
Step 7: Use the graph when making sales. Any price/time data points that fall beneath the curve qualify as a repair and anything above the curve generally warrants a replacement.
Whether it’s a roof, a water heater, an HVAC unit or anything in between, you should get a general idea of what homeowners are willing to spend on your products and services. Some of the benefits of having an in house repair vs. replace graph include:
If you want help setting up your very own repair vs. replacement graph, or if you want to learn more sales techniques, you should check out one of our upcoming classes or one of our monthly memberships.
A proactive business is a successful business. That's why our team takes the time to make sure every client has a proactive, not reactive, business plan. Our strategies make your business run more smoothly and profitable.
Our training services help businesses identify and achieve their key performance indicators (KPIs). Whether it's increased revenue or higher satisfaction rates, our methods allow you to see immediate and continued results.
Our team of experts works hard to make sure your business gets personalized training. We'll work with your team one-on-one or in group settings to set and achieve your business goals. We develop training based on your goals!
We believe that people are the most valuable asset. We strive to provide outstanding benefits, life balance, leadership, and support to our team. We believe in helping people reach their greatest level of growth, contribution and satisfaction.