Why Callbacks Kill Your Margins (and How to Stop Them)
- danawillmer
- Sep 23
- 2 min read
Picture this. A technician finishes a job, marks it complete, and drives off. A few hours later, the phone rings. The customer is not happy. Something still is not working. Now you are sending the truck back, paying overtime, and explaining why the problem was not fixed the first time.
That is a callback. Every callback eats into your profit. Not just in labor costs, but in gas, lost time, and damaged reputation. For small service businesses, callbacks are one of the biggest silent killers of margin.
What is First-Time Fix Rate?
First-Time Fix Rate (FTFR) is the percentage of jobs resolved correctly on the first visit.
FTFR = Jobs completed on the first visit ÷ Total jobs × 100
Industry benchmarks show best-in-class companies run at 85–90 percent FTFR, while many small firms hover closer to 75–80. That gap may not look big on paper, but even a 10-point swing can represent tens of thousands of dollars in lost profit every year.
The Financial Cost of Callbacks
Let’s size the problem.
Average truck roll cost: $200–$300 when you count labor, fuel, and overhead.
Average service ticket: about $350 for common repair work.
Example: A four-tech shop completing 400 jobs per month.
At 80% FTFR → 20% callbacks = 80 repeat visits.
At 90% FTFR → 10% callbacks = 40 repeat visits.
That difference of 40 repeat visits equals:
$8,000–$12,000 in direct costs avoided
$12,000 in extra revenue capacity
$20,000–$24,000 total impact per month, or $240,000+ per year
Why Callbacks Really Happen
The root cause is usually not skill. Most technicians know their craft. Callbacks happen because behaviors inside the system are unclear or inconsistent:
“Done” is not clearly defined.
A checklist step was skipped.
Parts were missing because stocking habits are loose.
Office-to-field handoffs broke down.
These are system behavior issues, not “lazy employees.”
Five Behavior-First Fixes
Clarify the Definition of Done: Jobs are not “finished” until the checklist, photo proof, and customer confirmation are complete.
Use Checklists + Photo Proof: Every job closeout includes visible proof. This forces accountability and reduces missed steps.
Install Handoff Receipts: Require a quick receipt or confirmation between office and field. No one is left guessing if a handoff was closed.
Track with Scoreboards: Post callback rates, checklist compliance, and FTFR visibly. What gets measured gets reinforced.
Run Daily Huddles & Coaching: Ten-minute morning huddles catch yesterday’s misses, surface today’s risks, and reinforce what “done right” looks like.
Callbacks are not just a people issue. They are the symptom of unclear systems and inconsistent behaviors. When you line up these five elements — Definition of Done, proof, handoffs, scoreboards, and huddles — callbacks drop, cash stops leaking, and your reputation strengthens.
Behavior-first execution turns frustration into reliability.
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