Client Background

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A mid-sized plumbing and HVAC service company operating with 12 service vehicles and a team of 18 field technicians. Despite strong demand and a loyal customer base, the company was struggling with low per-truck productivity, poor parts management, and inconsistent profitability.

 

 

The Challenge

 

The owner faced multiple compounding issues:

 

• Each technician averaged only $750/day in gross revenue per vehicle.

• Parts and tools were inconsistently stocked, leading to lost productivity.

• Technicians frequently left jobs to retrieve parts, losing billable hours daily.

• Insurance, uniforms, and communications contracts were overpriced.

• Sales opportunities for new installs were routinely missed.

 

Cash flow was tight, and the business was underperforming relative to its market potential.

 

 

Strategic Interventions Implemented

 

 

1. Service Vehicle Inventory System

 

• Implemented a daily restock system: each truck was inventoried and replenished after every shift with high-turn, high-margin parts and equipment.

• Developed a real-time inventory dashboard integrated with purchase orders for seamless restocking.

 

 

2. Dedicated Delivery & Helper Vehicle Program

 

• Introduced a support delivery vehicle to supply on-demand parts and assist with heavy installations.

• This allowed technicians to remain at job sites and maintain continuous productivity.

 

 

3. Vendor & Cost Optimization

 

• Negotiated fleet insurance, uniform, computer, and internet contracts, achieving significant cost reductions.

• Established prepaid service contracts, improving cash flow predictability and client retention.

 

 

4. Sales Enablement Training

 

• Developed and rolled out a technician sales training program, empowering field staff to confidently present and sell high-value equipment upgrades and installations.

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Quantified Results

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Metric                                                  Before               After                      % Change

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Gross Daily Revenue Per Truck              $750                    $2,350                      213%

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Total Service Trucks                                  12                           15                               25%

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Annual Gross Revenue                            $6,787,000       $10,044,760           48%

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Profit Margin                                             13%                       28%                            15%

 

 

Our team also negotiated early payoff discounts on several expensive MCA's including moving all weekly payments to one monthly payment for a total savings of $2.7M                           

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Owner Impact

 

The systems created operational discipline, reduced waste, and built a scalable model.  The increase in revenue and profit margin allowed the owner to hire an Operations Manager to handle all aspects of the day to day running of the business.  This single move allowed the owner to be able to focus on planning and growth, and not have to be bogged down dealing with minor problems and issues.  The company now projects multi-location expansion within 24 months. 

 

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Key Takeaways

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• Structured inventory systems and delivery logistics can more than triple field productivity.

• Strategic renegotiation of vendor contracts can unlock hidden profit.

• Sales training for field staff creates immediate revenue lift without additional headcount.

• Operational discipline is the foundation of sustainable profitability.​

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