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relay is more reliable and less expensive than a stack control. Don't cover ongoing problems. If you change an ignitor, that problem is solved, but if you have to clear sludge from a fuel line, you will probably have to do it again soon. Address the sludge issue. This serves both you and your customer. Give the customer an incentive to make corrections. If you feel you must cover ongoing problems, set a limit or charge a deductible. The customer must have some skin in the game. Consider treating your fuel against sludge. A fuel treatment program could pay itself off in spades for contracts that cover fuel filters and fuel lines. The payoff depends on how effective the treatment is, the cost per gallon, and how many contracts you sell.
GET PAID FASTER Faster invoicing not only results in faster payments, but also in fewer disputes. A customer's gratitude after a service call is short lived. Invoice the customer while she is still grateful for your fine service, and she will not dispute the bill. If you wait a month, she will forget how quickly you arrived and how long you were there. It's human nature.
Here are some tips to get paid faster:
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Flat rate billing—simplifies the billing process, results in faster invoicing and fewer disputes. Have the technician's bill from the field—speeds the invoic- ing process, reduces invoicing errors (part selection and work performed), may enable immediate payment. Support this with proper training on contract coverage and service billing. Have a comprehensive and organized parts list—Your parts list should have the items you sell for most of your jobs. It should be organized well enough to facilitate easy look up, whether from a computer or from a printed list. The organization of the printed list is critical if your technicians bill from the field and must work off a printed list. For computer parts, searching it is important to understand how the software searches for parts—by keyword, by part number, etc. and assign categories as needed.
This concludes part 2 of our article. Part 3 will focus on how to measure your performance to ensure your service department is continuously improving. l FON
David Visaggi, president of Inside Oil Consulting, is an operational specialist for fuel retailers and mechanical service companies. He can be reached at david@insideoil.com; www.insideoil.com.
www.fueloilnews.com | FUEL OIL NEWS | DECEMBER 2011 19
