Services with smarts

Services with smarts.

Repair and maintenance specialist Fast Go 24-7 has prospered through sharply focused marketing and a membership system that helps it manage costs

SRIWIPA SIRIPUNYAWIT

Strong finances, high quality control, prudent cost management and smart marketing strategy are crucial success factors for small and medium-sized enterprises (SMEs).

It's fair to say that Thai SMEs these days are generally much stronger than their counterparts of a decade or two before. Many have even expanded abroad. But smaller firms are still vulnerable when the sailing on the business seas gets rough _ even a tiny wave could swamp some of them. According to local statistics, 35% of SMEs ultimately sink.

One small service business that has found the sailing quite successful and smooth is Fast Go 24-7, a 24-hour repair and maintenance provider. Siripong Limratanamongkol, a consultant to the company, credits smart marketing and prudent financial management.

Every business needs to create brand awareness, Mr Siripong stresses. However, operators need to spend wisely by prudently managing their budgets.

"To do so, it's important to select the right means and right media to reach the target market," he says.

Founded three years ago, Fast Go 24-7 has emerged to serve demand for high quality maintenance and repair services from households and corporations. The services it offers include fixing and maintaining properties and equipment such as air-conditioners, electricity, flooring, gutters, plumbing, doors, windows, and the like. It also offers property renovation and painting services.

The company has spent heavily to make its brand known but believes it has also spent well. Last year it spent more than two million baht on advertising in newspapers and magazines and through direct marketing such as telemarketing and direct mail. It also focused on roadshows and exhibitions.

After exploring a variety of channels, the company did an assessment of each marketing activity and selected the most effective means that delivered a proper return on investment. As a result, it realised that hypermarkets such as Tesco Lotus and Big C were the best locations for catching the attention of prospective customers. It also found out that selected events at the Queen Sirikit National Convention Center gave it good exposure.

"A lot of SMEs have wasted a lot of money joining all kinds of fairs and exhibitions yet the impact is minimal and they eventually are out of business as they run out of money," says Mr Siripong. "The thing is that they have to choose the right places and the right methods that fit their products, services and target market rather than do it all blindly.

"Space and locations of the exhibition halls must be taken into consideration too. Those that are too spacious, such as Impact Muang Thong Thani, won't be good as the fairgoers easily get too tired to walk through every aisle."

Quality control and cost management are also crucial. To manage costs effectively, the company uses a members-only approach, believing that having a base of regular customers is better than relying on sporadic users of its services.

The company's three annual membership packages are simple but effective. The 1,540-baht Privilege package is provided to individual households, the 2,408-baht Premier is for small businesses and there's also a 10,700-baht Corporate package for large clients. Each package assigns points to various services, which are debited to the member's account.

Currently, Fast Go 24-7 serves more than 1,000 properties, 25% Corporate members, 50% Privilege and 25% Premier.

"This enables us to know the exact number of clients, so we know exactly how many staff and how much equipment we need to have in place," explains Mr Siripong. "This helps us plan ahead and manage costs effectively rather than hiring a large number of staff to sit and do nothing when there aren't any calls coming in."

He acknowledges that the company has lost business by declining to handle work from non-members who call with emergency requests. "However, we really need to stick to the policy since it's the only way we can arrange resources and manpower effectively."

Of course, a service business is nothing unless the staff are motivated to serve, says general manager Amnuay Chankrachang. He promotes a sense of belonging among the employees and make sure they have quality control systems in place.

At Fast Go, he explains, mechanics and service people should arrive at a job with all the necessary supplies within four to eight hours after a call. The call centre contacts the customer afterward to ensure that the work met expectations.

The company is insured against any unexpected damages to clients' properties, and the staff stick to the job at hand. "They shouldn't do what others have already done," says Mr Siripong.

Last year, the company's revenue totalled 15 million baht and it expects to see it double this year. Its current corporate clients include Kasikornbank, DHL, Giffarine, The Governmental Pharmaceutical Organisation, Bangkok Commercial Asset Management, Safety Insurance, Black Canyon, The Pizza Company, Tsutaya and many more. In the near future, it plans to add service centres outside Bangkok and in three years it hopes to be ready to grow further by franchising.

Your money
Bangkok Post
Monday January 15, 2007