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Communication of paid service system of brand agents

Sep 21, 2022

2022 is a year of ups and downs. With the recurrence of the COVID-19 and the dramatic changes in the economic environment, the downward pressure on China's construction machinery industry has increased sharply after five consecutive years of upward cycles. Under the background of overlapping times, how can each participant in the value chain of China's construction machinery industry go through the cycle of industry and macro environment to achieve sustainable win-win development? How to redefine the value of the industrial chain and rebuild the business model? 2022 China Construction Machinery Marketing&Post Market Conference was officially opened on September 15. This conference gathered influential people from China's construction machinery industry, built a high-level communication platform, talked about "going through the cycle", and looked forward to the future with colleagues.

The following is the summary of Mr. Qu Wenbin, Deputy CEO of the Machinery and Aftermarket Business Department of Lixingxing Machinery in East China:

Thank the organizer of the conference for giving me this opportunity to analyze with you how to establish and operate such a mechanism system of paid services of agents in the coming period. We establish paid services. Why should we do so? I think it is a win-win situation at least.

Project income of paid service system:

As for agents, agents can continuously invest in the development of service teams and the construction of maintenance capabilities (agents' service hardware+software) for a long time.

As for the service team, the service team carries out timely and professional regular maintenance and troubleshooting of equipment through paid services to extend the life cycle of equipment, help customers reduce the operating costs of equipment use, and maximize the production efficiency of equipment.

For maintenance technicians, through paid service, they can achieve the differentiation of fault diagnosis skills and customer service within the team, and finally achieve the differentiation of personal performance evaluation system.

Fully recognize the value of maintenance service skills and posts. So as to improve the confidence and satisfaction of employees, and ultimately substantially improve the social level and social status of maintenance technicians.

On the development of manual charging system:

The customer's expectation of paid service must be higher than that of free service. This is not bad. When the expectation is high, it will promote our maintenance service level to continuously improve. It is also an external force virtually, which can enable the overall agent to continuously improve the service level. Then let's briefly talk about the development of the labor charging system. Here, I just want to introduce some ideas. Because the development of the labor charging system, I believe that the method is definitely not a method, but basically a cost evaluation, mainly including the following factors:

1. Verification of labor cost. The overall operating expenses of the maintenance team in the past years include direct and indirect expenses. Actual working hours and actual labor utilization rate of agents in previous years. Set the corresponding expectations according to the data of previous years.

2. Labor rate pricing. Combined with the current market situation, cost data of previous years, and cost expectations.

3. Travel rate pricing.

4. Preparation of maintenance standard man hour instruction manual.

5. Implementation of labor charging policy.

Objectively speaking, I think this may also be a common challenge for our agents. You can see that the growth rate of our after-sales salesmen has not been high in the past five years, which may be our common challenge. Of course, how to constantly improve the acceptance of the maintenance plan in the eyes of users through innovation and adjustment, including the competitiveness in the market perspective, must be an ongoing topic for us.

In our Carter system, we support the training of our maintenance trainees every year, no matter what the situation is. Even in the declining cycle, we never stop training the trainees' skills. So we always said that we should really care and respect our maintenance service personnel.

After all that has been said, it may take a minute or two to make a brief summary. With regard to the paid service mechanism, we look forward to reviewing this important matter again in 2023 when we are in the construction machinery marketing&post market conference. Our agent friends, including our host manufacturers, let's see how you implement it. I sincerely hope that we can implement it successfully.