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The Image Changer: Cost Center vs. Revenue Center

Employee
Employee

The Image Changer: Cost Center vs. Revenue Center

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One of the greatest challenges facing the field service industry is changing it's image from a cost center to a revenue center. This distinction is needed to influence our CFO's because it adds value to the field service software solution to their real business issues. In what ways can we help influence this perception? There is an interesting piece from the "The 2014 European Services & Trends Report" stating that "66% of companies view their service organizations as profit centres rather than cost centres 40% of companies have no strategy in place to motivate their parts reps to sell services, and will not be looking to do that for the next five years" - See more at: http://fieldserviceusa.wbresearch.com/mediacenter#sthash.B1ljlJHO.dpuf

What can do more to help push this initiative?

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Re: The Image Changer: Cost Center vs. Revenue Center

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Getting field techs to sell is certainly one great way to generate more revenue, but often just getting better visibility of warranties, entitlements and contracts is the first way companies can generate more revenue and profits from their field service organization. This is also one of the easiest ways to make a business case for CFOs. Sometimes convincing them that field techs will sell a certain amount of products and services in the field is met with skepticism, but showing them real examples, for example, of customers where the company had no visibility into their entitlements and gave them thousands of dollars in free service when they should have charged for it can be a very compelling business case.

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Retired

Re: The Image Changer: Cost Center vs. Revenue Center

Jump to solution

Getting field techs to sell is certainly one great way to generate more revenue, but often just getting better visibility of warranties, entitlements and contracts is the first way companies can generate more revenue and profits from their field service organization. This is also one of the easiest ways to make a business case for CFOs. Sometimes convincing them that field techs will sell a certain amount of products and services in the field is met with skepticism, but showing them real examples, for example, of customers where the company had no visibility into their entitlements and gave them thousands of dollars in free service when they should have charged for it can be a very compelling business case.

Message 2 of 2