aptDigital Weekly (#4): What’s your profit margin?

Hi, I’m Alex and this is the aptDigital weekly newsletter. Let’s use sales, marketing, and strategy to help your appliance repair business grow.

Pro Tip: Track your average profit margin per call.

I recently showed how to calculate your average lead value. In order to do so, you’ll need to know your average profit margin per call, which is calculated as the average cost of fulfilling a service ticket divided by the average gross revenue (AGR) per ticket.

If you’ve implemented proper bookkeeping procedures in your business, then you can reference your profit and loss reports to determine average costs.

If you haven’t started bookkeeping yet, then here are some costs to consider:

• Fuel
• Auto insurance
• Auto payments
• Any commission you may pay your techs
• Any markup you may add to your parts

Send me a message if you’d like help calculating your own AGR. I’d be happy to help.

This Week’s Roundtable:

I host a free weekly Zoom call for appliance repair technicians and appliance repair business owners. It’s a ‘no pressure’ place and time to talk with each other about whatever is on your mind.

This week’s recording: https://youtu.be/6YX4aDfH2mw

Highlights:

• Will there be a slow season this year? (22:41)
• The importance of tracking data & asking why (42:30)
• Examples of key performance indicators (46:55)
• Shotgun approach vs. focused approach to paid ads (52:20)

Check out past recordings here, and subscribe to my YouTube channel here.