Productivity Tip 25 – Keeping Costs Down
One of the major challenges facing any business is the need to minimize costs in order to enjoy healthy margins while remaining competitive. This is particularly so in the service industry.
Customers today are usually spoilt for choice in terms of service providers. Customers look for service providers who can provide reliable and good quality service at a reasonable price. While quality of service is a top priority, quality service delivered at competitive rates is a winning combination i.e. more for less.
What are some of the causes of cost overruns in a service business? Here are some common ones:
If you examine the above list of causes, you can easily reduce it down to one primary factor – how well do your service personnel do their jobs?
To put it in another way, best-of-breed service providers often have the following traits:
- They have competent role models in their service team
If you have a motivated team of service technicians who are well trained and have well defined service standards backed up by strong, competent leadership and administrative support and systems, along with everyone focussed on the same goal – then keeping costs down and maintaining service quality will be both achievable and effortless.