Too often, businesses make decisions based on a hunch rather than verifiable data. We invest money in things that end up having no financial impact on our business, while shying away from things that may save us loads of money in the long-run. Sure, seeing through all the smoke and mirrors of advertising can be difficult – but that’s why we let data prove the validity of our investments. We’ve set out to prove the worth of service business management software to you.
So how does service business management software improve profitability? Let’s do some math using FieldPulse. Below is the calculation to determine whether or not you should invest in any efficiency software: (Hours Saved per Month * Avg. Hourly Wage) / Cost for Product = ROI (Return on Investment)
Monthly Hours Saved
Through our own studies of third party service businesses, FieldPulse business management software saved them close to 20 hours per week in labor time for a contractor business with 10 employees total. About 2 hours per week per person. They were able to cut out paper invoicing, generate estimates, and even spend less time on the phone by adding comments right onto each project and dispatching members right from the app.
However, we still need to put this in terms of monthly hours saved, not weekly. 20 hours per week multiplied by 4 weeks in a month is 80 hours saved each month.
Average Hourly Wage
We used the national average of a general contractor hourly wage based on data from www.payscale.com. We found the average general contractor wage to be a little over $30 per hour.
Cost for Product
FieldPulse software costs $65 per month, with additional users starting at $10 per month. With all 10 people using the software, the cost would be $165 per month. During your software evaluation process, feel free to compare this value to those of higher-priced platforms such as Service Titan, Jobber, Housecall Pro, and Workiz.
Plugging the numbers into our simple formula, we came up with the following:
(80 Hours * $30 per Hour) = $2,400 saved per month with FieldPulse
So how do we interpret these results? Simple. We’re saving $2,400 a month, while the software only costs $165! Also, this number is simply based on increased efficiency, not including the bonus of improved work quality and customer service from using FieldPulse. While results may ultimately vary company to company, we’re confident that FieldPulse is a great value for any mobile service business.
When it comes to running a business and deciding what to purchase, do this simple calculation and you can estimate the return you’ll receive on your investment quickly and easily. Service business management software helps make every step of your daily operation function smoothly and efficiently. From customer management, scheduling, invoicing, and more – FieldPulse software will help improve your bottom line. Sign up now for a free 14-day trial of FieldPulse.