Running an after-sales service business

Why service is worth doing well

For dealers of electronics, appliances, mobile phones, solar systems, CCTV or two-wheelers, service brings customers back to the counter. A customer whose repair is done on time and billed fairly is likely to buy the next product from you. A customer whose phone sat for three weeks without updates will not.

Service also earns in its own right: labour, parts margin, and contracts. But it only earns if every job is recorded and billed.

The service job flow

1. Intake: create a job card with customer name, mobile number, product, serial or IMEI number, complaint, condition (scratches, missing parts) and accessories received.
2. Acknowledgement: give the customer a job number, ideally on WhatsApp, with an expected date.
3. Diagnosis and estimate: technician records the fault; estimate shared; customer approves before work starts.
4. Work: parts issued against the job, labour recorded.
5. Quality check: tested by someone other than the technician, where possible.
6. Closure and invoice: parts and service charges billed; payment collected or recorded as credit.
7. Delivery: customer collects or job is delivered; feedback taken.

A sample format is in job card and service invoice.

Billing parts and labour correctly

A repair bill usually has two parts: goods (spare parts) and services (labour, visit charges). GST rates on parts depend on the item's HSN, and service charges are billed under the relevant SAC. Show them as separate lines.

For warranty jobs, parts may come from the brand and labour may be claimed from them; keep those jobs separate so claims are not missed. More on tax in GST for service and repair businesses. Confirm rates for your items with your CA.

Numbers to track every week

Common leaks in service businesses

• Parts used, not billed. Parts taken from stock without being linked to a job disappear from the books.
• Jobs delivered on credit, never followed up. Small amounts of ₹500–₹2,000 add up across hundreds of jobs.
• Uncollected products. Customers who never come back. Set a clear policy on how long you will hold items and inform customers at intake.
• Cash jobs without bills. A risk to both revenue and tax compliance.

Staffing and space

Plan the service area as carefully as the showroom. Each job needs a labelled bin or shelf position with the job number, so products are not mixed up. Keep parts in a separate store with one person responsible for issues. If technicians are paid partly by jobs closed, add a check on repeat repairs so speed does not come at the cost of quality.

Keeping customers informed

Most complaints in service businesses are not about the repair itself but about silence. A customer who drops off a washing machine and hears nothing for five days assumes the worst. Simple rules help:

• Send the job number and expected date on WhatsApp at intake.
• Message again when the estimate is ready, and do not start work without approval.
• If a part is delayed, say so the same day with a new date.
• Message when the job is ready, with the amount payable.

Keep message templates ready so staff send updates in a minute. For jobs at the customer's site, share the technician's name and visit window in advance. These small steps reduce the number of calls your counter staff handle and make customers more willing to approve estimates.

Building recurring revenue

Once jobs run smoothly, look at contracts. Customers with many units — offices, shops, housing societies — often prefer a yearly fee for maintenance. That turns irregular repairs into predictable income. See annual maintenance contracts.

Service jobs with Tally and Cashflow OS

Cashflow OS has a service jobs module for repair and pickup jobs. Staff open a job for a customer, add items or service charges as work progresses, then close and invoice it. Customers and items come from your Tally data, and the invoice can be posted to Tally through the connector when writing back is switched on. Outstanding from service customers then shows with the rest of your receivables. See service jobs.