How mismanaging your Technician Throughput could be costing you a minimum of $100,000 per year.
Tech Utilization Rate, and why it’s so important
Tech Utilization Rate is the amount of time your internal techs are performing maintenance, in a given period of time. If your techs work 40 hours/week, and you assign them to jobs only 20% of the time, this leaves 80% of their time not being utilized that will ultimately create bottlenecks, upset residents and owners, not to mention the consistent loss of revenue.
This metric is visible on the Insights dashboard:
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Generally, a utilization rate under 45% is bad, 45% – 75% is decent, and 75%+ is exceptional. The adjustments needed to get to the exceptional level are minor, and the financial gains are substantial. So… why wouldn’t you want to fix that?
How Tech Utilization Rate is calculated
Monitoring Tech Utilization allows you to determine 3 things:
1. If you need additional staff
2. How much time employees dedicate towards Meld
3. If you can accommodate more clients
Here’s the fun part
How small improvements turn into huge gains
Increasing your Tech Utilization by just 10% can have an immense ripple effect on your annual revenue.
Example: John averages 2.06 jobs per day.
See how increasing John’s Tech Utilization Rate by 10%, 20%, and 30% affects your total revenue.
John isn’t overworked, because the increase fits well within his week. You’re just utilizing your resources to be more efficient. And when this increase is implemented across your entire team, big changes happen. Increasing jobs/day, increases parts and labor revenue. More work is being performed, and more revenue is being generated.
Using Insights Pro allows you to see who, on your team, is taking on too much work, not enough work, or who is taking too long, allowing you to delegate and relieve stress from your higher performing techs, while keeping a close eye on your overall Tech Utilization Rate.
This graph is available in Insights Pro. See other related graphs.
By plugging in just a few numbers from your account, we can guide you how to move the needle to get your Tech Utilization Rate higher, and show you the potential revenue you are missing out on. An increase of just 10% could prevent – at the minimum – $100k from slipping through the cracks, every year. This, compared to the cost needed to monitor your technician throughput using Insights Pro at $400/mo ($13/day) is, in the words of our CEO, complete dogsh*t. It’s a no brainer.
Contact your Customer Success Manager to calculate your Technician ROI.