Topic: Sales and Marketing
Service contracts (especially proactive ones) are much more profitable than selling products. I won’t go into the details about how profitable they are as I wrote a three part series on service contracts a couple of years ago with the help of two of the industry’s service gods: Barry Haligan and Jay Rogina. You can refer back to that article later, but rest assured that even a poorly run service department is almost always more profitable that a well run sales department. Margins for service run between 50-80%!