Insights — Channel Creation & New Revenue Streams — 3 min read
Should Manufacturers Offer Installation Services?
To install or not to install? It is one of the most common questions for manufacturers looking to add service revenue. The answer depends on your appetite for operational complexity.
In short
Manufacturers should offer installation if the product's performance is highly dependent on correct setup, or if third-party installers are inconsistent and damaging the brand. While it offers higher margins and better customer data, it should only be pursued if the manufacturer can manage the 'people complexity' of a field-based team without distracting from the core production business.
For many manufacturers, the point of sale is the point of greatest risk. You've built a high-quality product, but its performance—and your reputation—now depends on how well it's installed by a third party. If they get it wrong, you get the blame, even if the hardware is perfect. This leads many to ask: should we just do it ourselves?
Adding an installation channel is the most natural step in the 'Product to Service' journey. It captures more of the customer's budget and ensures the product is set up for success. But it also turns a factory-based business into a field-based one, with all the logistical and liability headaches that entails.
The case FOR in-house installation
The primary driver for internal installation isn't usually the profit on the labour—it's the protection of the product margin. If a £50,000 piece of equipment is installed poorly, the manufacturer often spends thousands in 'free' support trying to fix it. Doing it yourself eliminates that friction.
- **Brand Control:** You own the customer experience from start to finish.
- **Up-selling:** Installers are your best salespeople; they are in the building and can identify future needs.
- **Data:** You see exactly how the product is being used in the real world, which informs R&D.
- **Margin:** You capture a significant portion of the project value that usually goes to the contractor.
The case AGAINST in-house installation
The biggest risk is channel conflict. If you rely on a network of third-party installers to recommend your product, and then you start competing with them for the installation work, they will stop recommending you. You also take on significant new risks: health and safety on site, travel delays, and the management of a remote workforce.
The middle ground: 'Certified Partners'
Many manufacturers find the best economic value is not in doing the work themselves, but in charging for the *right* to do the work. By creating a certification programme, you can charge for training, audits, and leads, capturing service-like revenue without the logistical burden of a van fleet.
How to decide
Evans uses a simple diagnostic: if your product can be installed by a generalist with a manual, don't do it. If it requires specialist tools and proprietary knowledge that only you have, you are missing a massive revenue opportunity by not owning the installation channel.
We help manufacturers evaluate this risk and opportunity through our Channel Creation Programme, from £1,995 + VAT/month over six months.
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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