SERVICE BENCHMARKS. Benchmark = Minimum Acceptable Performance. Industry Benchmark Model - Copiers Profitability Analysis. Category. % Mix of Sales. GP %. Sales Expense. Admin Expense. Individual Profit %. Weighted Profit %.
Minimum Acceptable Performance
% Mix of Sales
Individual Profit %
Weighted Profit %
Hardware 50% 36% -25% -15% -4% - 2.0% Supplies 17% 44% 0% -15% 29% 4.9% Service 32% 52% 0% -15% 37% 11.8% Rental 1% 40% 0% -15% 25% 0.3% Total 100% 43% -13% -15% 15.0%
(as a percent of revenue)
GP 52 %
Training, etc. 1.0
Salaries – 27.5%
Service Department Staffing
47% of total company staff should be service
Parts – 16%
All Parts used for servicing machines in the field as well as parts retailed, manufacturers’ rebates and warranty credits.
Auto Expense – 3.5%
Reimbursed business miles for Service Techs and Supervisors, fixed dollar auto allowance, paid expenses incurred for company cars used for Service Department; i.e. auto depreciation, maintenance, fuel and insurance
Training, etc. – 1.0%
Training salaries, manufacturer training schools, uniforms, computer related expenses for service department (ADS), phones (cell phones & pagers), miscellaneous expenses for Service Department
Gross Calls – any calls that are generated by the customer calling in for machine repair, recalls/callbacks, incompletes and dealer originated calls
Recalls/Callbacks – service calls received on the same machine from the customer within a specific timeframe or when specific copies between calls has not been achieved
Incompletes/Reschedules – service calls that could not be completed by technician (parts, technical escalation, out of time, etc.)
Net Calls – gross calls minus recalls/callbacks and incompletes
Response Time – is the time the call is received/generated to the time the technician arrives at the customer’s location
Customer Repair and Travel Time
Customer Time 72 minutes
Travel Time 30 minutes
Start at 8:00 a.m. finish at 5:00 p.m.
5 Gross Calls per Day
First Call 8:00 a.m.
First Call Cust Time 72 min 9:12 a.m.
Second Call Travel 30 min 9:42 a.m.
Second Call Cust Time 72 min 10:54 a.m.
Third Call Travel 30 min 11:24 a.m.
Third Call Cust Time 72 min 12:36 p.m.
Lunch 60 min 1:36 p.m.
Fourth Call Travel 30 min 2:06 p.m.
Fourth Call Cust Time 72 min 3:18 p.m.
Fifth Call Travel 30 min 3:48 p.m.
Fifth Call Cust Time 72 min 5:00 p.m.
Net Calls Per Day Per Technician
Average Gross Calls 5.0
Average Recalls 10% (0.5)
Average Incompletes 5% (0.3)
Average Net Calls 4.2
Call Back Parameters
Response Time = 4.0 Hours or Less
<2 Hours – High End Machines
<4 Hours – Middle Segment Machines
<8 Hours – Low End Machines
Less than 2.0 Calls on the “Board”
per Technician at the end of the day
Total Contract Copiers multiplied by (1
plus Time & Materials %)
divided by Copier Techs and Working Supervisors
Other Service Benchmarks
Copiers per Copier Technician - 150
Copies per Technician per Month
Parts and Car Stocks
$145,000 Service Revenue per Service employee (excluding Dispatch)
$75 - $95 Service Revenue per Unit in Field per Month
2.5 Parts Turns
$18 Parts per Call per Service Technician
Current Performance Level