Cost Benefit Analysis

General Maintenance Agreements (GMA's)

250 GMA's per year, at a value of $500 each = 250 x $500 = $125,000 in revenue.

By simply better tracking GMA renewals and improving your billing cycle, (monthly, bimonthly, quarterly, semi-annually, annually) you are able to improve this figure by just ten percent

(10%) = $125,000 x 10% = $12,500 per year extra revenue

This represents an additional $12,500 per year in revenue just from your present customer base, without any special effort.

Service Requests

If you presently handle 300 service calls per month,

300 x $75/call min. charge = $22,500 per month
$22,500/month x 12 months = $270,000/year

You generate $270,000 a year from service revenues at the minimum rate of $75 per call.
Our experience shows that 20% of these calls are completed but never invoiced. If you can add 20% to your revenues from better billing of service calls. Then $270,000 annual revenue x 20% = $54,000/year.

You can generate an additional $54,000 per year in revenues, simply by better billing of your present level of service calls.

This $54,000 represents your profit on jobs completed. You have already paid for the wages, overhead, and materials used on jobs not invoiced. Why not collect your profit?

Analysis

SAM/IDM will never let you forget to invoice a service call.

Will SAM/IDM bring you 'found money'?

Use your own numbers. Consideration of the above examples, will allow you to reach your own conclusions about how SAM/IDM can help your business.

Questions and comments are always welcome.