Insights — Channel Creation & New Revenue Streams — 3 min read
Installation-Only: A Service Channel for Product Manufacturers
If you manufacture and install your own products, your field team is a valuable asset that likely has 'white space' in its diary. Offering that team as an 'Installation-Only' service to others can transform a cost centre into a profit centre.
In short
An 'Installation-Only' channel involves selling your field team's time and expertise to other manufacturers or distributors who lack local installation capability. This creates a high-margin service revenue stream that uses your existing workforce and vehicles, improving staff utilisation and providing a hedge against fluctuations in your own product sales.
Manufacturers who provide installation often view their field teams as a 'necessary expense' required to close product sales. This leads to a management focus on reducing their cost, rather than maximising their value. When the order book for products is light, the installation team sits idle, draining cash.
By shifting your perspective, that same team can become a standalone product. There are hundreds of manufacturers (particularly those based overseas) who sell into the UK but lack the local team to install their equipment. By offering an 'Installation-Only' service, you can fill your team's diary with high-margin work that has zero material cost.
The Economics of 'Service-Only' Revenue
When you sell a product + installation, your margin is blended across materials and labour. When you sell 'Installation-Only', your material cost is zero. You are effectively selling 'man-hours' at a professional rate. If your vans, tools, and basic salaries are already paid for by your core business, the majority of this service revenue drops straight to the bottom line.
This model is particularly attractive for filling geographical gaps. If you have a team in the North West that is busy, but a team in the South East that is quiet, the South East team can be 'hired out' to other brands in their region.
Targeting the Right Partners
The key is to avoid 'channel conflict'—you don't want to install for a direct competitor who is trying to steal your customers. Instead, look for 'complementary' brands:
- **International Manufacturers:** Companies from Europe or the US who ship to the UK but don't want the overhead of a UK field team.
- **Online-Only Distributors:** Platforms that sell industrial or commercial equipment but leave the 'installation headache' to the customer.
- **Adjacent Tech Brands:** If you install HVAC, could you install commercial air filtration for a brand that doesn't have an engineering team?
Professionalising the Service
To make this a repeatable channel, you must treat these partners like customers. This means:
- **White-Label Readiness:** Your team must be able to represent the partner brand professionally (or remain neutral).
- **Defined Scope of Work:** Clear documentation on what is included (and what isn't) to prevent 'job creep'.
- **Digital Reporting:** Using a simple app to provide the partner with proof of installation and site sign-off instantly.
Testing the Demand
Before launching a service brand, you need to know if the demand is there. Evans helps manufacturers identify potential partners and test the 'per-day' or 'per-install' rate the market will bear. The objective is to ensure the new channel is a profit-driver, not an administrative burden.
Could your business support another route to revenue?
Evans Channel Creation identifies, validates and builds additional revenue channels from capabilities a business already has — B2B to D2C, D2C to B2B, product to service, recurring revenue or partners — and says so plainly when a channel should not be built. Programme from £1,995 + VAT per month over six months.
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