Identifying and Implementing New Revenue Streams
An HVAC Contractor in California asked:
What steps would you take to identify and then incorporate a new revenue stream?
EGIA faculty member Weldon Long started by saying that revenue can’t be the only driving force, and that profitability of the revenue stream is the first thing to look at before investigating further.
Long then used the example of a client with which he was working, where the new client wanted to sell more of a certain product with a very high profit margin. In the end, Long and the owner created an incentive system for the client’s salespeople to make a larger commission for each sale of the different product.
“Within 24 hours, the sales team was selling this new accessory like nobody’s business,” said Long.
Still Long cautioned that often, owners lose sight of what actually incentivizes their workers to sell when implementing a new revenue stream. “Sometimes we think we can force people to do something, when in reality we are undermining their ability to do the very thing we need them to do,” said Long.
Gary Elekes joined in, explaining that the way he views adding revenue streams is that in order to have enough of an incentive to do it, there must be an untapped segment of the market that the new stream would appeal to.
Weldon Long is a successful entrepreneur, powerful speaker, sales expert and author of the NY Times Bestseller, The Power of Consistency – Prosperity Mindset Training for Sales and Business Professionals.
Gary Elekes is serial entrepreneur with a passion for helping others become more successful by sharing what he has learned over the past 3 decades working closely with all facets of the contracting industry. During his career, Gary has held senior management positions at Lennox and Service Experts.
Our faculty members have also answered questions on other topics related to sales in the contracting world, including How to Implement a Flat Rate Pricing Process and Growing Your Service Agreement Program.
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