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Hey everyone, it's Mike Andes.
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Today we're on the road and we're visiting with an owner from Augusta Lawn Care.
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His name is Garrett.
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He's been at this location for a couple of years now.
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He's gotten married recently.
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He's having a kid on the way and he's just going from growth mode into profit mode.
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So he passed the $500,000 annual revenue marker.
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He's actually more on the $800,000 in annual revenue market this year, but he now needs to make it profitable.
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He's been in the business, working as the GM.
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How do we systematize and simplify things so he can hand this off to a general manager
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and focus on his family as he has a kid coming up in just a few months.
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Let's go ahead and jump in with Garrett Smith from Colorado and Augusta Nation.
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All right, Glendale.
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Let's go.
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Profit mode.
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$31K in the bank.
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$570,000 in revenue last year.
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$800,000 this year for employees.
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Very efficient.
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Okay.
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Do you have a lot of debt?
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Yeah.
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Got it.
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Again.
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It's like $130,000.
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Oh, that's not bad.
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And then it's $3,000 a month in payment.
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That's not horrible.
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Okay.
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That's not bad at all.
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Cool.
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Snow removal.
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You don't do any Christmas lights?
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We do like 15 to 20 a year for the last three years.
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Might drop it this year.
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Might not.
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Okay.
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Cool.
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Cool, cool, cool.
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Is this your third year in Augusta?
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Or four?
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It started like three and a half years.
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Yeah.
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I still remember when you came to training.
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Well, the second time.
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Oh, yeah.
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The first time.
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That's right.
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Okay.
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Good stuff.
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Awesome.
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Anything I can help with?
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A lot.
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Let's go.
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Is this your first year in profit mode because you crossed 500 last year?
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I would say I'm in a constant cycle of, wow, we should really go into profit mode.
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And then this spring – You grew by 40%.
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Like we're in profit mode, but we grew a bunch.
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I think we got to the place where we had 47,000 in the bank, and I've never seen that kind of money.
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And I was like, okay, I could go buy a nice truck, which I really want to do.
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or I can go to the business, and I chose the latter.
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And I was like, what, I mean,
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what are you going to do with money besides grow your business, right?
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Right.
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So I feel like any time that we've had, like, excess cash, I've thought, like, let's go back into growth.
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Kind of.
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Okay.
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Cool.
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Are you going to keep growing to, like, 1.5 DGM plus model, or what's your plan?
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So I think in the short term, we need to make some profit.
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We have a baby coming in January.
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That moves things around.
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Let's go.
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Congratulations.
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Thank you.
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And, yeah, we're obviously, like, a little low on cash in the bank right now.
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Yep.
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And we're on the –
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We're improving that metric, but it was super bad to the point in July where we almost didn't make a payroll.
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And I was like, okay, this is a problem.
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We did like $90,000 and almost didn't make the...
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So this profit mode is the new initiative.
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This is the new version.
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This wasn't this whole year of profit mode.
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It's like, we need to... Got it.
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No.
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So yeah, and honestly, this format of group coaching, I was not sure, but I feel like I've learned enough that I can just go home and implement already, which is crazy.
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My first question was basically answered with DJ,
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tiering, admin, ops, and then sales.
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Because I have a GM, but he's transitioning out, so right now he's pretty much just a technician.
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And he's been with me since the start, like three and a half years ago.
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When you say that, is he actually leaving, or is he just like, hey, I'm not a GM, cool.
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I want to just be a technician.
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He's leaving.
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Got it, cool, all right.
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So I, for like kind of the first time in three and a half years, like it's pretty much just me.
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She does all the office work, so we don't have command center due.
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They'll like, sometimes if we get behind, they'll do calls or whatever.
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It's the reactive task maybe to them, but everything else.
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Okay, got it.
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What's your name again?
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I apologize.
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Malia.
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Malia?
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Yes.
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How do you spell it?
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M-A-L-I-A.
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Oh, that's easy.
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Great.
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Fantastic.
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And she's a little older, has a much better credit score.
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Nice and take notes.
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Good credit score.
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Good credit score.
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Lock them in.
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She's super nice to you.
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But yeah, so that was kind of my first question is like, it's really been like the last like three weeks where my GM's like, hey, I'm moving on.
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Right now he's pretty much just like a technician, which is great.
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Has he been good?
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Yeah, he's been really good.
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I think in hindsight I've really realized how poor of a job I did like training him, if that makes sense.
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And what was poor about that training?
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Well, we weren't doing the weekly scorecards, so, like, he didn't really know the numbers.
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We weren't going over...
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This sounds...
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This is embarrassing.
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You're good.
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We weren't going over the P&L.
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Yeah, yeah.
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Like, he didn't really, like, have goals.
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Like, he did a really, really great job, and, like, I didn't show up to the shop in the morning for, like, two months straight.
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Quality was good.
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But I think it was really just, like, we weren't profitable, if that makes sense.
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And I failed to emphasize, like, what KPIs we need to track in order to be profitable.
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And, like...
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Alice kind of talks about your job is not to keep our employees happy.
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You want to have the employees obviously, but you need to drive margin, or at least be able to break even.
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I think that was the biggest single failure that I had in training in.
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Because the employees are all super happy, quality was good, everything else was good.
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So yeah, that was kind of my first question which you answered is, how do I prioritize my time?
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It sounds like I need to be basically doing no admin.
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at this size.
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The only thing I'm doing is if she has a question or command center has a question I'm quickly answering it but not actually calling the customer.
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Do you still have an email on your phone?
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Yes.
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Start there.
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It's the best decision ever.
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Delete it.
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I've never even logged it.
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Do not have the mail app on your phone, or the email inbox.
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It'll force you to let them do their job without jumping in, because the thing that's causing a lot of problems, even at Commanson right now, is people that have delegated the inbox.
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I ask the emails environment, I'm like, why do you guys, some people cost five times more than other people?
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Well, because some people still jump and do it half the time, which means every single email we have to ask them, did you contact this person?
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What was that email on the weekend about?
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And get up to speed with them.
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And so the biggest thing you can do to get out of admin is delete your inbox.
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And empower them to be able to just do their thing.
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And then do I delete Connect Team as well?
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No, no, because they'll still have questions.
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Okay.
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And then kind of how I look at it is like at your size, you're still like the GM, kind of acting GM.
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Most of your day is manager time.
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So if you think about like worker time, manager time, architect time, as a manager, most of your day is manager time, which is you are reactive, things that go wrong, the crew is reaching out to you.
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You have to reach out from the admin.
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They have questions, et cetera.
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What you do during your 5%, 10% of your week that is architect time is you look at the times everyone reaches out to you and try to solve it with a system.
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So every time the admin person reaches out to you, you ask yourself, okay, they keep asking about this one service.
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Is it worth keeping 4% of revenue for this one service that every single time an email comes in, they have to reach out to me?
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And so even at your size, everyone thinks the architect time is like once you're above 1.5 million, once you have multiple locations.
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I still think everyone needs at least an hour a week of architect time, i.e.
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like you step away from the building, you assess the weak points, and you create solutions for those.
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And then everyone's like, well, then what problems do I assess?
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Like, what do I fix?
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You go back throughout your week and ask every single time someone from admin had to get in my way or operations had to reach out to me.
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Those are all the problems that if you systematize them as the architect, make the business go smoother.
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And really, that's the best way to set up your next GM for success is to get all those things firing in all cylinders and streamlined so they don't ever get those contacts through Connect Team.
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That makes sense.
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And then I guess the other question, so profit's the goal.
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In times where I'm way behind on everything, what are the things that I'm prioritizing during those times to drive profits?
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And in times where it's like, oh, everything's caught up.
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I don't have anything super pressing.
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What are the other things that I'm like?
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Like, is it sales?
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Yeah.
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I talked about this a little bit a few weeks ago, but when you have a bajillion things you've got to get done,
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The first thing I'm looking at is their deadline.
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If there's a deadline, it kind of takes priority.
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If you're like, next week, you've got to get something done.
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Like, okay, we've got to get all the trucks wrapped by this date, and it's a week from now.
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That's going to take priority.
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Most things don't have a deadline.
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So that's always the first question in terms of prioritization is, like, is there a deadline?
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The next thing I'm asking is, what are the pros for the positive things that are going to happen if I do this task?
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Because, like, you're going to have a bajillion things that are going to be put on your plate throughout the month, or you get ideas, you listen to Mastermind, you become things like this, you're going to...
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I've got all these ideas.
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I'm going to do Christmas lights.
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There's a bajillion things you could be doing.
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This is the synthesis for which one do I focus on, because you can only focus on a couple things at one time.
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And then the next thing is, if I do nothing, what are the cons of this decision?
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And if you ask these three questions, it would be very clear in terms of what should I focus on next.
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Because that's what most of us get paralyzed by.
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You have 50 things you know need to get done.
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You're in the middle of spring rush.
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You've got 10 people calling you.
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If someone just broke the water line, there's a deadline.
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You've got to get it done right away.
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It is the most important thing.
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The thing that becomes more challenging if you don't use this as a synthesis is when you don't have a lot – there is no immediate fires.
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What shit are you working on?
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That's when you go to your list of 30 things that you've put on the back burner.
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as like things you want to get done and you ask yourself, hey, none of these have a deadline.
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Okay, so if this was to be accomplished in the next few weeks and I focus my time, what would it do to the business?
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Okay, double it.
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Ooh, that's a big pro.
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What would be the cons if I do nothing?
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Well, I'd be just profitable.
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I'd stay the same size.
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Okay.
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And I would just very easily be able to assess what's the next thing to focus on.
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That makes a lot of sense.
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The deadline one is as a manager, most of your time is spent being reactive.
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Like when you hire a GM, what you're doing is you're hiring someone to take on fighters.
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So at this size and you're acting as the GM, you are mostly in manager mode.
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So if you think about architect time, here we go again.
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.
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Breaking things.
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I'm not breaking, I'm not breaking.
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So all right.
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Architect time, architect, something like that.
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Manager.
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And then we have our labor.
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The next big move for you after a year of profit is you're going to go pay to take 70% to 80% of your day that's currently spent being manager and cash that didn't pay someone else to be the manager so you can spend more time in architecting.
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That's what, Bryson, the move you'll make next year.
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It's like you're basically paying for a manager to take all the fires off your plate.
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And if there's fires coming on your plate as an architect, that's a problem.
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And that is the thing I can then fix.
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Like, OK, we are cutting out this service so that I don't get interrupted anymore.
238
00:11:01.640 --> 00:11:03.821
My manager should be able to handle all operations.
239
00:11:04.481 --> 00:11:05.822
And if they can't, that's a problem.
240
00:11:07.629 --> 00:11:12.832
And so as you grow the business, next year, are you going to get a general manager?
241
00:11:12.892 --> 00:11:13.512
Is that a plan?
242
00:11:14.153 --> 00:11:17.635
Ideally, so I feel like, I guess correct me if I'm wrong.
243
00:11:17.675 --> 00:11:21.377
We need to get two months of payroll in the bank.
244
00:11:21.577 --> 00:11:23.038
Or one month of revenue.
245
00:11:23.478 --> 00:11:24.759
One month of revenue in the bank.
246
00:11:24.919 --> 00:11:29.862
And then I would like to get a general manager and probably start to grow again.
247
00:11:30.862 --> 00:11:39.647
Yeah, I think you're in a perfect spot to go into profit mode, like legit profit mode, raise prices, have a lower close rate, probably do $850,000 to $900,000 next year.
248
00:11:39.987 --> 00:11:43.870
But this time next year, I have $150,000 in the bank.
249
00:11:44.070 --> 00:11:47.272
I think from a business perspective, you're in a better spot.
250
00:11:47.432 --> 00:11:49.753
I think from a mindset perspective, you're in a better spot.
251
00:11:50.053 --> 00:11:54.456
And I think from a leader of the family, probably the wise decision.
252
00:11:54.856 --> 00:11:57.678
And so I would only focus on that.
253
00:11:58.949 --> 00:12:00.311
Yeah, don't even think about GMs.
254
00:12:00.752 --> 00:12:01.874
You are the GM of the business.
255
00:12:02.334 --> 00:12:03.837
So you're saying you run it for the next 15 months?
256
00:12:03.917 --> 00:12:04.618
I would recommend that.
257
00:12:04.798 --> 00:12:05.059
Okay.
258
00:12:05.079 --> 00:12:05.239
Yeah.
259
00:12:05.780 --> 00:12:10.928
You'll also get really, really good at what metrics need to be hit so that when you hand it off, you'll know exactly what the recipe looks like.
260
00:12:11.369 --> 00:12:13.212
So I would do weekly scorecards for yourself.
261
00:12:14.741 --> 00:12:18.503
If you don't, what's gonna happen is you're gonna hire a gender manager and just like the last one, you won't do them.
262
00:12:19.263 --> 00:12:22.345
So give yourself a scorecard on the weekly side of things.
263
00:12:22.905 --> 00:12:26.087
Like now you'll know what a GM is supposed to, what that's supposed to look like.
264
00:12:26.868 --> 00:12:29.909
So my question is about snow removal.
265
00:12:30.550 --> 00:12:36.633
Pretty much, like a summary of the question is we're at capacity, how much do we raise prices?
266
00:12:36.873 --> 00:12:37.553
Does that make sense?
267
00:12:37.593 --> 00:12:38.634
For snow specifically?
268
00:12:38.654 --> 00:12:39.755
For snow specifically.
269
00:12:40.095 --> 00:12:41.756
We did snow for the first time
270
00:12:43.401 --> 00:12:45.842
I guess this is our third season of snow.
271
00:12:46.222 --> 00:12:49.343
First season we did like maybe $40,000 in revenue.
272
00:12:49.863 --> 00:12:53.164
Last year we did like $200,000, $220,000 somewhere in there.
273
00:12:53.184 --> 00:12:53.524
Oh, cool.
274
00:12:54.084 --> 00:13:01.807
With what we have, but we did a mid-season price increase like in February, well we sent out January when in effect like February-ish.
275
00:13:02.925 --> 00:13:06.087
And then we've signed some up, like maybe another 10%.
276
00:13:06.107 --> 00:13:06.988
Okay.
277
00:13:08.008 --> 00:13:09.049
So we maybe have 10% more.
278
00:13:09.089 --> 00:13:10.490
240, 250 this year?
279
00:13:11.531 --> 00:13:16.334
So when we're on track, we had a below average snow year last year in terms of pushes.
280
00:13:17.895 --> 00:13:23.978
So basically, if it doesn't snow at all, we'll do 24,000 because we have monthly unlimited clients.
281
00:13:24.239 --> 00:13:26.420
And then if we have average snowfall, we'll do another.
282
00:13:27.060 --> 00:13:27.981
Sorry, that's 27.
283
00:13:28.141 --> 00:13:28.681
And then it's 24,000.
284
00:13:29.722 --> 00:13:31.284
in per push if it's average snowfall.
285
00:13:31.904 --> 00:13:34.006
So it's like no snow, 24,000.
286
00:13:34.367 --> 00:13:36.188
Average snow, 51,000 a month.
287
00:13:36.889 --> 00:13:37.450
Oh, per month.
288
00:13:37.470 --> 00:13:38.110
Per month.
289
00:13:38.130 --> 00:13:40.433
And then double the average, we'd do like 75,000.
290
00:13:40.573 --> 00:13:41.313
Okay, cool.
291
00:13:41.333 --> 00:13:42.855
So somewhere between 24 and 75,000.
292
00:13:42.875 --> 00:13:43.155
Yeah.
293
00:13:44.757 --> 00:13:47.199
That's not just snow.
294
00:13:47.399 --> 00:13:50.923
We had nine events in January last year and none in...
295
00:13:51.565 --> 00:13:53.067
April, which is the second snowiest month.
296
00:13:53.107 --> 00:13:56.370
There was a lot of really big snow events, but not... Oh, sorry.
297
00:13:56.430 --> 00:13:58.652
Yeah, same amount of inches, but less events.
298
00:13:58.813 --> 00:13:59.053
Yeah.
299
00:13:59.353 --> 00:14:03.117
So, you know, it's interesting, but we should be hedge our bet low or high.
300
00:14:03.197 --> 00:14:04.539
We should be kind of decent.
301
00:14:05.622 --> 00:14:09.725
Where we're at right now is like, we're like probably a little over capacity.
302
00:14:10.426 --> 00:14:15.249
Like, I don't even know if we can fulfill everything that we have.
303
00:14:15.989 --> 00:14:17.851
Does that make sense?
304
00:14:18.371 --> 00:14:19.392
Okay.
305
00:14:19.652 --> 00:14:21.473
But it's like about break even.
306
00:14:22.114 --> 00:14:25.776
So, we definitely need to raise prices because we need to make money this winter.
307
00:14:25.817 --> 00:14:26.037
Yeah.
308
00:14:28.994 --> 00:14:32.398
So I did like a full price analysis of all of our accounts.
309
00:14:33.600 --> 00:14:38.225
About 31% of our revenue is about half the price it should be.
310
00:14:39.383 --> 00:14:39.723
Oh, wow.
311
00:14:39.964 --> 00:14:40.204
Yeah.
312
00:14:40.364 --> 00:14:42.326
We have a big range.
313
00:14:42.786 --> 00:14:44.367
That means you're losing money on them.
314
00:14:44.648 --> 00:14:44.968
Yes.
315
00:14:45.068 --> 00:14:45.328
Okay.
316
00:14:45.749 --> 00:14:46.409
And then the other...
317
00:14:46.689 --> 00:14:49.912
So why would we not cut them tomorrow?
318
00:14:49.932 --> 00:14:51.073
So should I double their price?
319
00:14:51.714 --> 00:14:54.416
Should I raise it by 50%?
320
00:14:54.516 --> 00:14:56.198
Like we were in business to make money.
321
00:14:56.418 --> 00:14:56.678
Yeah.
322
00:14:56.738 --> 00:14:58.680
If we're losing money, we should cut the customer or rate the price.
323
00:14:59.298 --> 00:15:00.079
Yeah.
324
00:15:00.099 --> 00:15:01.540
So my question is how much?
325
00:15:01.720 --> 00:15:09.827
And then also on the other 70%, those are anywhere from 2x the price that they should be to maybe like 20% under.
326
00:15:10.628 --> 00:15:12.049
There's kind of still a...
327
00:15:12.269 --> 00:15:15.272
I found we're super inconsistent in how we bid stuff, apparently.
328
00:15:16.853 --> 00:15:18.935
So how much do I raise on the 30%?
329
00:15:18.955 --> 00:15:20.276
And do I raise on the 70%?
330
00:15:20.376 --> 00:15:21.597
The other factor is...
331
00:15:25.702 --> 00:15:31.607
Compared to last year's data, 92% of the people that sign up for Snow come after today.
332
00:15:31.868 --> 00:15:35.931
So the bulk of the new signups are between now and January 1st.
333
00:15:36.051 --> 00:15:37.112
Yeah.
334
00:15:37.132 --> 00:15:38.694
So I don't want to like...
335
00:15:38.794 --> 00:15:40.555
So 31% is way underbid.
336
00:15:40.755 --> 00:15:40.956
Yeah.
337
00:15:40.996 --> 00:15:43.077
What percentage is slightly underbid?
338
00:15:44.118 --> 00:15:45.740
It's maybe another 20%.
339
00:15:45.980 --> 00:15:46.561
Cool.
340
00:15:46.901 --> 00:15:47.942
All right.
341
00:15:47.962 --> 00:15:49.263
So half your customers are underbid.
342
00:15:52.257 --> 00:15:53.178
I would have two tiers.
343
00:15:53.438 --> 00:15:54.599
One is you're gonna double the price.
344
00:15:55.319 --> 00:15:57.101
One is gonna be 20% increase.
345
00:15:57.601 --> 00:15:59.042
I would just bucket all of them and do it now.
346
00:15:59.262 --> 00:16:02.265
The reason is because you have so many leads about to come in, you're already at capacity.
347
00:16:02.285 --> 00:16:03.425
When you're at capacity, raise prices.
348
00:16:04.426 --> 00:16:11.211
So do it now so that you have all the leads to be able to come in before the winter and backfill, and those are gonna be the higher price.
349
00:16:12.652 --> 00:16:14.674
If you're at capacity, you have all the flexibility in the world.
350
00:16:15.214 --> 00:16:16.275
I would do it in two stages.
351
00:16:16.355 --> 00:16:17.936
I would first do the ones where I gotta double.
352
00:16:17.956 --> 00:16:19.297
You're gonna lose by 70% of them.
353
00:16:20.933 --> 00:16:25.977
And then I would do another one, because you're going to get some leads coming in, you're like, okay, we're almost back to capacity.
354
00:16:25.997 --> 00:16:26.297
Okay, great.
355
00:16:26.457 --> 00:16:29.579
Now let's go raise the people that are 15%, 20% underbid.
356
00:16:29.639 --> 00:16:30.760
We'll raise them all by 20%.
357
00:16:31.721 --> 00:16:36.864
And if you lose some of them, who cares, because you're about in the snow season, and as soon as you get up for snow, you've got a whole bunch of leads falling on your plate.
358
00:16:37.205 --> 00:16:46.071
What you don't want is going into this snow season, getting all these calls, and you can't even take them on because you're busy doing customers that are half the price they should be.
359
00:16:46.491 --> 00:16:47.112
That's crazy.
360
00:16:48.173 --> 00:16:48.333
Right.
361
00:16:48.654 --> 00:16:49.414
You're turning away money.
362
00:16:49.775 --> 00:16:51.757
Well, I just saw this one like two days ago.
363
00:16:51.897 --> 00:16:52.498
Oh, sounds good.
364
00:16:52.518 --> 00:16:54.199
So I was like, oh, that's a problem.
365
00:16:54.279 --> 00:16:56.041
And then we talked about it.
366
00:16:56.101 --> 00:17:00.186
I would batch it just for the sake of like you don't want to lose half your customers because you're going to go to the NerdRack.
367
00:17:00.666 --> 00:17:02.648
I would probably do that like just to tear the band-aid off.
368
00:17:02.908 --> 00:17:06.052
But I would probably do all the ones that you've got to raise price on basically by double.
369
00:17:06.072 --> 00:17:07.033
You're going to lose most of them.
370
00:17:07.553 --> 00:17:08.554
and expect that at least.
371
00:17:08.894 --> 00:17:17.862
And then as you get some leads trickling in through October, November, just be ready to switch over the people that are slightly underbid up by 20%, so you're profitable on them.
372
00:17:18.182 --> 00:17:23.987
And then you'll lose a few of them, and you'll have a couple more leads to be able to fill back up to capacity during November, December.
373
00:17:24.708 --> 00:17:25.308
That makes sense.
374
00:17:25.848 --> 00:17:32.154
I guess the only other pushback or factor that would maybe change it, and I'm guessing you're just going to say no, is we do that too.
375
00:17:34.823 --> 00:17:37.645
Maybe I shouldn't even ask it.
376
00:17:37.925 --> 00:17:41.908
We are like downtown Denver, so we're doing super tiny properties.
377
00:17:41.928 --> 00:17:43.849
Like a lot of times they don't even have driveways and garages.
378
00:17:43.869 --> 00:17:45.490
It's like we're clearing the front porch.
379
00:17:45.510 --> 00:17:46.771
Is this the classic density?
380
00:17:47.231 --> 00:17:48.332
It's density.
381
00:17:48.572 --> 00:17:49.152
Okay.
382
00:17:49.833 --> 00:17:51.033
Should I stop talking?
383
00:17:51.193 --> 00:17:55.096
It's actually with snow because like there's so much liability attached.
384
00:17:55.116 --> 00:18:01.380
Even though you don't have a lot of fixed costs, like you show up to a customer's property, you need to be making a certain amount.
385
00:18:01.500 --> 00:18:02.661
And if you're half of that,
386
00:18:03.121 --> 00:18:06.702
You're losing money so dramatically, you gotta raise prices.
387
00:18:07.823 --> 00:18:08.103
Duh.
388
00:18:08.623 --> 00:18:16.285
In order to be able to make the same revenue, not profit, revenue on these current price jobs versus what's coming in, you have to sell twice as many.
389
00:18:16.946 --> 00:18:17.266
Duh.
390
00:18:17.686 --> 00:18:18.966
And it's revenue, not profit.
391
00:18:19.206 --> 00:18:19.627
Revenue.
392
00:18:20.507 --> 00:18:21.727
So double the prices.
393
00:18:22.468 --> 00:18:27.089
Most of them will leave, and who cares, because you're gonna now replace them, you know what happens.
394
00:18:27.149 --> 00:18:29.650
92% of leads are about to come flowing in October, November.
395
00:18:31.177 --> 00:18:32.297
Just wait until the first snowfall.
396
00:18:32.357 --> 00:18:41.141
The last thing you want to be doing is saying no to a customer who's willing to pay a higher price while you're servicing someone else that's inside of your capacity at a price that's half of what someone else is willing to pay.
397
00:18:42.241 --> 00:18:45.522
That is the definition of insanity.
398
00:18:45.622 --> 00:18:47.843
That's why when you say – I'm trying to make it really clear.
399
00:18:47.863 --> 00:18:50.764
You hit capacity, you raise prices, period, if you're in profit mode.
400
00:18:51.573 --> 00:18:51.893
Period.
401
00:18:51.993 --> 00:18:55.116
And that's the thing that's going to be difficult for you is you just switch to profit mode.
402
00:18:55.536 --> 00:18:55.836
Yeah.
403
00:18:56.116 --> 00:18:57.417
The whole mindset has to change.
404
00:18:57.697 --> 00:19:03.242
Last year at Augusta Lawn Care, the average location grew revenue by more than 27%.
405
00:19:03.622 --> 00:19:05.783
And we're on track to beat that this year.
406
00:19:06.084 --> 00:19:17.392
If you want to see why, go to AugustaLawnCareServices.com slash franchise and watch over 50 videos and case studies of different owners that took their independent lawn care business and turned it into Augusta Lawn Care.
407
00:19:17.412 --> 00:19:17.572
Okay.
408
00:19:17.672 --> 00:19:18.393
It's not about dancing.
409
00:19:18.413 --> 00:19:21.014
It's like, if I don't make money, I don't want this customer.
410
00:19:21.455 --> 00:19:28.059
And if I'm at capacity, and I'm saying no to incoming leads that are willing to pay me twice as much, that's crazy.
411
00:19:30.200 --> 00:19:30.741
Makes sense.
412
00:19:30.841 --> 00:19:31.061
Cool.
413
00:19:33.363 --> 00:19:34.543
Amelia, do you have anything you want to add?
414
00:19:34.904 --> 00:19:35.744
Questions, anything like that?
415
00:19:39.958 --> 00:19:44.800
How do we get him out of the field when I have a baby?
416
00:19:45.320 --> 00:19:46.961
Joel just went through that this past year.
417
00:19:46.981 --> 00:19:48.922
Let's go in the middle of spring rush.
418
00:19:48.982 --> 00:19:50.262
Some of the timing.
419
00:19:50.282 --> 00:19:51.983
People really need to work on their timing.
420
00:19:52.063 --> 00:19:54.124
Well, we just had to get January or February.
421
00:19:54.144 --> 00:19:55.024
It's just a few years from us.
422
00:19:55.044 --> 00:19:56.265
That's right.
423
00:19:56.285 --> 00:19:56.765
That's right.
424
00:19:56.785 --> 00:19:58.166
That's right.
425
00:19:58.246 --> 00:19:59.486
We were shooting for September.
426
00:19:59.706 --> 00:20:00.186
That's funny.
1
00:00:00.091 --> 00:00:00.991
Hey everyone, it's Mike Andes.
2
00:00:01.011 --> 00:00:04.493
Today we're on the road and we're visiting with an owner from Augusta Lawn Care.
3
00:00:04.773 --> 00:00:05.753
His name is Garrett.
4
00:00:06.033 --> 00:00:08.394
He's been at this location for a couple of years now.
5
00:00:08.634 --> 00:00:09.775
He's gotten married recently.
6
00:00:09.855 --> 00:00:14.757
He's having a kid on the way and he's just going from growth mode into profit mode.
7
00:00:14.937 --> 00:00:17.038
So he passed the $500,000 annual revenue marker.
8
00:00:17.218 --> 00:00:22.920
He's actually more on the $800,000 in annual revenue market this year, but he now needs to make it profitable.
9
00:00:23.340 --> 00:00:25.621
He's been in the business, working as the GM.
10
00:00:25.881 --> 00:00:29.683
How do we systematize and simplify things so he can hand this off to a general manager
11
00:00:30.043 --> 00:00:33.405
and focus on his family as he has a kid coming up in just a few months.
12
00:00:33.725 --> 00:00:38.268
Let's go ahead and jump in with Garrett Smith from Colorado and Augusta Nation.
13
00:00:38.488 --> 00:00:39.508
All right, Glendale.
14
00:00:39.868 --> 00:00:40.349
Let's go.
15
00:00:40.449 --> 00:00:41.950
Profit mode.
16
00:00:42.010 --> 00:00:44.111
$31K in the bank.
17
00:00:44.131 --> 00:00:46.152
$570,000 in revenue last year.
18
00:00:46.172 --> 00:00:49.033
$800,000 this year for employees.
19
00:00:49.694 --> 00:00:50.494
Very efficient.
20
00:00:51.055 --> 00:00:51.375
Okay.
21
00:00:51.395 --> 00:00:52.735
Do you have a lot of debt?
22
00:00:53.416 --> 00:00:53.716
Yeah.
23
00:00:53.736 --> 00:00:54.036
Got it.
24
00:00:54.376 --> 00:00:54.596
Again.
25
00:00:54.616 --> 00:00:55.757
It's like $130,000.
26
00:00:55.777 --> 00:00:56.918
Oh, that's not bad.
27
00:00:56.958 --> 00:00:58.639
And then it's $3,000 a month in payment.
28
00:01:00.055 --> 00:01:00.735
That's not horrible.
29
00:01:00.815 --> 00:01:01.056
Okay.
30
00:01:01.656 --> 00:01:02.697
That's not bad at all.
31
00:01:03.417 --> 00:01:03.737
Cool.
32
00:01:03.977 --> 00:01:04.498
Snow removal.
33
00:01:04.518 --> 00:01:05.578
You don't do any Christmas lights?
34
00:01:06.339 --> 00:01:09.501
We do like 15 to 20 a year for the last three years.
35
00:01:09.961 --> 00:01:11.042
Might drop it this year.
36
00:01:11.682 --> 00:01:12.163
Might not.
37
00:01:12.303 --> 00:01:12.763
Okay.
38
00:01:12.983 --> 00:01:13.263
Cool.
39
00:01:13.623 --> 00:01:14.984
Cool, cool, cool.
40
00:01:15.064 --> 00:01:16.525
Is this your third year in Augusta?
41
00:01:16.825 --> 00:01:17.066
Or four?
42
00:01:17.086 --> 00:01:18.326
It started like three and a half years.
43
00:01:18.627 --> 00:01:18.887
Yeah.
44
00:01:19.147 --> 00:01:20.488
I still remember when you came to training.
45
00:01:20.528 --> 00:01:21.488
Well, the second time.
46
00:01:22.129 --> 00:01:22.689
Oh, yeah.
47
00:01:22.709 --> 00:01:23.610
The first time.
48
00:01:23.650 --> 00:01:24.450
That's right.
49
00:01:24.550 --> 00:01:24.870
Okay.
50
00:01:24.891 --> 00:01:25.291
Good stuff.
51
00:01:25.511 --> 00:01:25.811
Awesome.
52
00:01:26.051 --> 00:01:26.812
Anything I can help with?
53
00:01:28.133 --> 00:01:28.473
A lot.
54
00:01:28.833 --> 00:01:29.874
Let's go.
55
00:01:30.174 --> 00:01:33.676
Is this your first year in profit mode because you crossed 500 last year?
56
00:01:34.317 --> 00:01:37.739
I would say I'm in a constant cycle of, wow, we should really go into profit mode.
57
00:01:38.159 --> 00:01:40.701
And then this spring – You grew by 40%.
58
00:01:40.721 --> 00:01:44.144
Like we're in profit mode, but we grew a bunch.
59
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I think we got to the place where we had 47,000 in the bank, and I've never seen that kind of money.
60
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And I was like, okay, I could go buy a nice truck, which I really want to do.
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or I can go to the business, and I chose the latter.
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And I was like, what, I mean,
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what are you going to do with money besides grow your business, right?
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Right.
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So I feel like any time that we've had, like, excess cash, I've thought, like, let's go back into growth.
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Kind of.
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Okay.
68
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Cool.
69
00:02:09.445 --> 00:02:13.148
Are you going to keep growing to, like, 1.5 DGM plus model, or what's your plan?
70
00:02:13.228 --> 00:02:16.891
So I think in the short term, we need to make some profit.
71
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We have a baby coming in January.
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That moves things around.
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Let's go.
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Congratulations.
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Thank you.
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And, yeah, we're obviously, like, a little low on cash in the bank right now.
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Yep.
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And we're on the –
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We're improving that metric, but it was super bad to the point in July where we almost didn't make a payroll.
80
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And I was like, okay, this is a problem.
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We did like $90,000 and almost didn't make the...
82
00:02:38.763 --> 00:02:40.803
So this profit mode is the new initiative.
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This is the new version.
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This wasn't this whole year of profit mode.
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It's like, we need to... Got it.
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No.
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00:02:47.846 --> 00:02:57.557
So yeah, and honestly, this format of group coaching, I was not sure, but I feel like I've learned enough that I can just go home and implement already, which is crazy.
88
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My first question was basically answered with DJ,
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tiering, admin, ops, and then sales.
90
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Because I have a GM, but he's transitioning out, so right now he's pretty much just a technician.
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And he's been with me since the start, like three and a half years ago.
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When you say that, is he actually leaving, or is he just like, hey, I'm not a GM, cool.
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I want to just be a technician.
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He's leaving.
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Got it, cool, all right.
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So I, for like kind of the first time in three and a half years, like it's pretty much just me.
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She does all the office work, so we don't have command center due.
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They'll like, sometimes if we get behind, they'll do calls or whatever.
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It's the reactive task maybe to them, but everything else.
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Okay, got it.
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What's your name again?
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I apologize.
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Malia.
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Malia?
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Yes.
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How do you spell it?
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M-A-L-I-A.
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Oh, that's easy.
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Great.
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Fantastic.
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00:03:45.704 --> 00:03:48.745
And she's a little older, has a much better credit score.
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Nice and take notes.
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Good credit score.
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Good credit score.
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Lock them in.
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She's super nice to you.
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But yeah, so that was kind of my first question is like, it's really been like the last like three weeks where my GM's like, hey, I'm moving on.
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Right now he's pretty much just like a technician, which is great.
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Has he been good?
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Yeah, he's been really good.
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I think in hindsight I've really realized how poor of a job I did like training him, if that makes sense.
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And what was poor about that training?
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Well, we weren't doing the weekly scorecards, so, like, he didn't really know the numbers.
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We weren't going over...
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This sounds...
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This is embarrassing.
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You're good.
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We weren't going over the P&L.
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Yeah, yeah.
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Like, he didn't really, like, have goals.
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Like, he did a really, really great job, and, like, I didn't show up to the shop in the morning for, like, two months straight.
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Quality was good.
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But I think it was really just, like, we weren't profitable, if that makes sense.
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And I failed to emphasize, like, what KPIs we need to track in order to be profitable.
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And, like...
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Alice kind of talks about your job is not to keep our employees happy.
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You want to have the employees obviously, but you need to drive margin, or at least be able to break even.
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I think that was the biggest single failure that I had in training in.
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Because the employees are all super happy, quality was good, everything else was good.
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So yeah, that was kind of my first question which you answered is, how do I prioritize my time?
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It sounds like I need to be basically doing no admin.
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at this size.
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The only thing I'm doing is if she has a question or command center has a question I'm quickly answering it but not actually calling the customer.
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Do you still have an email on your phone?
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Yes.
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Start there.
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It's the best decision ever.
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Delete it.
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I've never even logged it.
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Do not have the mail app on your phone, or the email inbox.
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It'll force you to let them do their job without jumping in, because the thing that's causing a lot of problems, even at Commanson right now, is people that have delegated the inbox.
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I ask the emails environment, I'm like, why do you guys, some people cost five times more than other people?
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Well, because some people still jump and do it half the time, which means every single email we have to ask them, did you contact this person?
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What was that email on the weekend about?
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And get up to speed with them.
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And so the biggest thing you can do to get out of admin is delete your inbox.
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And empower them to be able to just do their thing.
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And then do I delete Connect Team as well?
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No, no, because they'll still have questions.
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Okay.
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And then kind of how I look at it is like at your size, you're still like the GM, kind of acting GM.
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Most of your day is manager time.
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So if you think about like worker time, manager time, architect time, as a manager, most of your day is manager time, which is you are reactive, things that go wrong, the crew is reaching out to you.
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You have to reach out from the admin.
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They have questions, et cetera.
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What you do during your 5%, 10% of your week that is architect time is you look at the times everyone reaches out to you and try to solve it with a system.
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So every time the admin person reaches out to you, you ask yourself, okay, they keep asking about this one service.
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Is it worth keeping 4% of revenue for this one service that every single time an email comes in, they have to reach out to me?
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And so even at your size, everyone thinks the architect time is like once you're above 1.5 million, once you have multiple locations.
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I still think everyone needs at least an hour a week of architect time, i.e.
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like you step away from the building, you assess the weak points, and you create solutions for those.
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And then everyone's like, well, then what problems do I assess?
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Like, what do I fix?
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You go back throughout your week and ask every single time someone from admin had to get in my way or operations had to reach out to me.
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Those are all the problems that if you systematize them as the architect, make the business go smoother.
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And really, that's the best way to set up your next GM for success is to get all those things firing in all cylinders and streamlined so they don't ever get those contacts through Connect Team.
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That makes sense.
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And then I guess the other question, so profit's the goal.
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In times where I'm way behind on everything, what are the things that I'm prioritizing during those times to drive profits?
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And in times where it's like, oh, everything's caught up.
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I don't have anything super pressing.
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What are the other things that I'm like?
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Like, is it sales?
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Yeah.
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I talked about this a little bit a few weeks ago, but when you have a bajillion things you've got to get done,
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The first thing I'm looking at is their deadline.
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If there's a deadline, it kind of takes priority.
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If you're like, next week, you've got to get something done.
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Like, okay, we've got to get all the trucks wrapped by this date, and it's a week from now.
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That's going to take priority.
191
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Most things don't have a deadline.
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So that's always the first question in terms of prioritization is, like, is there a deadline?
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The next thing I'm asking is, what are the pros for the positive things that are going to happen if I do this task?
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Because, like, you're going to have a bajillion things that are going to be put on your plate throughout the month, or you get ideas, you listen to Mastermind, you become things like this, you're going to...
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00:08:40.952 --> 00:08:41.593
I've got all these ideas.
196
00:08:41.633 --> 00:08:42.954
I'm going to do Christmas lights.
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There's a bajillion things you could be doing.
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This is the synthesis for which one do I focus on, because you can only focus on a couple things at one time.
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And then the next thing is, if I do nothing, what are the cons of this decision?
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00:08:57.768 --> 00:09:01.612
And if you ask these three questions, it would be very clear in terms of what should I focus on next.
201
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Because that's what most of us get paralyzed by.
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You have 50 things you know need to get done.
203
00:09:06.438 --> 00:09:07.619
You're in the middle of spring rush.
204
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You've got 10 people calling you.
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If someone just broke the water line, there's a deadline.
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You've got to get it done right away.
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It is the most important thing.
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The thing that becomes more challenging if you don't use this as a synthesis is when you don't have a lot – there is no immediate fires.
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What shit are you working on?
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00:09:26.033 --> 00:09:29.096
That's when you go to your list of 30 things that you've put on the back burner.
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as like things you want to get done and you ask yourself, hey, none of these have a deadline.
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00:09:34.118 --> 00:09:38.799
Okay, so if this was to be accomplished in the next few weeks and I focus my time, what would it do to the business?
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Okay, double it.
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00:09:39.600 --> 00:09:40.600
Ooh, that's a big pro.
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00:09:40.960 --> 00:09:42.400
What would be the cons if I do nothing?
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00:09:42.821 --> 00:09:43.841
Well, I'd be just profitable.
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00:09:43.861 --> 00:09:44.601
I'd stay the same size.
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00:09:45.061 --> 00:09:45.181
Okay.
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00:09:45.201 --> 00:09:48.582
And I would just very easily be able to assess what's the next thing to focus on.
220
00:09:50.623 --> 00:09:51.403
That makes a lot of sense.
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00:09:52.063 --> 00:09:55.704
The deadline one is as a manager, most of your time is spent being reactive.
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00:09:55.884 --> 00:09:58.945
Like when you hire a GM, what you're doing is you're hiring someone to take on fighters.
223
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So at this size and you're acting as the GM, you are mostly in manager mode.
224
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So if you think about architect time, here we go again.
225
00:10:10.853 --> 00:10:11.073
.
226
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Breaking things.
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I'm not breaking, I'm not breaking.
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So all right.
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Architect time, architect, something like that.
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Manager.
231
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And then we have our labor.
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The next big move for you after a year of profit is you're going to go pay to take 70% to 80% of your day that's currently spent being manager and cash that didn't pay someone else to be the manager so you can spend more time in architecting.
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That's what, Bryson, the move you'll make next year.
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It's like you're basically paying for a manager to take all the fires off your plate.
235
00:10:51.083 --> 00:10:54.566
And if there's fires coming on your plate as an architect, that's a problem.
236
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And that is the thing I can then fix.
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Like, OK, we are cutting out this service so that I don't get interrupted anymore.
238
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My manager should be able to handle all operations.
239
00:11:04.481 --> 00:11:05.822
And if they can't, that's a problem.
240
00:11:07.629 --> 00:11:12.832
And so as you grow the business, next year, are you going to get a general manager?
241
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Is that a plan?
242
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Ideally, so I feel like, I guess correct me if I'm wrong.
243
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We need to get two months of payroll in the bank.
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Or one month of revenue.
245
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One month of revenue in the bank.
246
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And then I would like to get a general manager and probably start to grow again.
247
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Yeah, I think you're in a perfect spot to go into profit mode, like legit profit mode, raise prices, have a lower close rate, probably do $850,000 to $900,000 next year.
248
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But this time next year, I have $150,000 in the bank.
249
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I think from a business perspective, you're in a better spot.
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I think from a mindset perspective, you're in a better spot.
251
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And I think from a leader of the family, probably the wise decision.
252
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And so I would only focus on that.
253
00:11:58.949 --> 00:12:00.311
Yeah, don't even think about GMs.
254
00:12:00.752 --> 00:12:01.874
You are the GM of the business.
255
00:12:02.334 --> 00:12:03.837
So you're saying you run it for the next 15 months?
256
00:12:03.917 --> 00:12:04.618
I would recommend that.
257
00:12:04.798 --> 00:12:05.059
Okay.
258
00:12:05.079 --> 00:12:05.239
Yeah.
259
00:12:05.780 --> 00:12:10.928
You'll also get really, really good at what metrics need to be hit so that when you hand it off, you'll know exactly what the recipe looks like.
260
00:12:11.369 --> 00:12:13.212
So I would do weekly scorecards for yourself.
261
00:12:14.741 --> 00:12:18.503
If you don't, what's gonna happen is you're gonna hire a gender manager and just like the last one, you won't do them.
262
00:12:19.263 --> 00:12:22.345
So give yourself a scorecard on the weekly side of things.
263
00:12:22.905 --> 00:12:26.087
Like now you'll know what a GM is supposed to, what that's supposed to look like.
264
00:12:26.868 --> 00:12:29.909
So my question is about snow removal.
265
00:12:30.550 --> 00:12:36.633
Pretty much, like a summary of the question is we're at capacity, how much do we raise prices?
266
00:12:36.873 --> 00:12:37.553
Does that make sense?
267
00:12:37.593 --> 00:12:38.634
For snow specifically?
268
00:12:38.654 --> 00:12:39.755
For snow specifically.
269
00:12:40.095 --> 00:12:41.756
We did snow for the first time
270
00:12:43.401 --> 00:12:45.842
I guess this is our third season of snow.
271
00:12:46.222 --> 00:12:49.343
First season we did like maybe $40,000 in revenue.
272
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Last year we did like $200,000, $220,000 somewhere in there.
273
00:12:53.184 --> 00:12:53.524
Oh, cool.
274
00:12:54.084 --> 00:13:01.807
With what we have, but we did a mid-season price increase like in February, well we sent out January when in effect like February-ish.
275
00:13:02.925 --> 00:13:06.087
And then we've signed some up, like maybe another 10%.
276
00:13:06.107 --> 00:13:06.988
Okay.
277
00:13:08.008 --> 00:13:09.049
So we maybe have 10% more.
278
00:13:09.089 --> 00:13:10.490
240, 250 this year?
279
00:13:11.531 --> 00:13:16.334
So when we're on track, we had a below average snow year last year in terms of pushes.
280
00:13:17.895 --> 00:13:23.978
So basically, if it doesn't snow at all, we'll do 24,000 because we have monthly unlimited clients.
281
00:13:24.239 --> 00:13:26.420
And then if we have average snowfall, we'll do another.
282
00:13:27.060 --> 00:13:27.981
Sorry, that's 27.
283
00:13:28.141 --> 00:13:28.681
And then it's 24,000.
284
00:13:29.722 --> 00:13:31.284
in per push if it's average snowfall.
285
00:13:31.904 --> 00:13:34.006
So it's like no snow, 24,000.
286
00:13:34.367 --> 00:13:36.188
Average snow, 51,000 a month.
287
00:13:36.889 --> 00:13:37.450
Oh, per month.
288
00:13:37.470 --> 00:13:38.110
Per month.
289
00:13:38.130 --> 00:13:40.433
And then double the average, we'd do like 75,000.
290
00:13:40.573 --> 00:13:41.313
Okay, cool.
291
00:13:41.333 --> 00:13:42.855
So somewhere between 24 and 75,000.
292
00:13:42.875 --> 00:13:43.155
Yeah.
293
00:13:44.757 --> 00:13:47.199
That's not just snow.
294
00:13:47.399 --> 00:13:50.923
We had nine events in January last year and none in...
295
00:13:51.565 --> 00:13:53.067
April, which is the second snowiest month.
296
00:13:53.107 --> 00:13:56.370
There was a lot of really big snow events, but not... Oh, sorry.
297
00:13:56.430 --> 00:13:58.652
Yeah, same amount of inches, but less events.
298
00:13:58.813 --> 00:13:59.053
Yeah.
299
00:13:59.353 --> 00:14:03.117
So, you know, it's interesting, but we should be hedge our bet low or high.
300
00:14:03.197 --> 00:14:04.539
We should be kind of decent.
301
00:14:05.622 --> 00:14:09.725
Where we're at right now is like, we're like probably a little over capacity.
302
00:14:10.426 --> 00:14:15.249
Like, I don't even know if we can fulfill everything that we have.
303
00:14:15.989 --> 00:14:17.851
Does that make sense?
304
00:14:18.371 --> 00:14:19.392
Okay.
305
00:14:19.652 --> 00:14:21.473
But it's like about break even.
306
00:14:22.114 --> 00:14:25.776
So, we definitely need to raise prices because we need to make money this winter.
307
00:14:25.817 --> 00:14:26.037
Yeah.
308
00:14:28.994 --> 00:14:32.398
So I did like a full price analysis of all of our accounts.
309
00:14:33.600 --> 00:14:38.225
About 31% of our revenue is about half the price it should be.
310
00:14:39.383 --> 00:14:39.723
Oh, wow.
311
00:14:39.964 --> 00:14:40.204
Yeah.
312
00:14:40.364 --> 00:14:42.326
We have a big range.
313
00:14:42.786 --> 00:14:44.367
That means you're losing money on them.
314
00:14:44.648 --> 00:14:44.968
Yes.
315
00:14:45.068 --> 00:14:45.328
Okay.
316
00:14:45.749 --> 00:14:46.409
And then the other...
317
00:14:46.689 --> 00:14:49.912
So why would we not cut them tomorrow?
318
00:14:49.932 --> 00:14:51.073
So should I double their price?
319
00:14:51.714 --> 00:14:54.416
Should I raise it by 50%?
320
00:14:54.516 --> 00:14:56.198
Like we were in business to make money.
321
00:14:56.418 --> 00:14:56.678
Yeah.
322
00:14:56.738 --> 00:14:58.680
If we're losing money, we should cut the customer or rate the price.
323
00:14:59.298 --> 00:15:00.079
Yeah.
324
00:15:00.099 --> 00:15:01.540
So my question is how much?
325
00:15:01.720 --> 00:15:09.827
And then also on the other 70%, those are anywhere from 2x the price that they should be to maybe like 20% under.
326
00:15:10.628 --> 00:15:12.049
There's kind of still a...
327
00:15:12.269 --> 00:15:15.272
I found we're super inconsistent in how we bid stuff, apparently.
328
00:15:16.853 --> 00:15:18.935
So how much do I raise on the 30%?
329
00:15:18.955 --> 00:15:20.276
And do I raise on the 70%?
330
00:15:20.376 --> 00:15:21.597
The other factor is...
331
00:15:25.702 --> 00:15:31.607
Compared to last year's data, 92% of the people that sign up for Snow come after today.
332
00:15:31.868 --> 00:15:35.931
So the bulk of the new signups are between now and January 1st.
333
00:15:36.051 --> 00:15:37.112
Yeah.
334
00:15:37.132 --> 00:15:38.694
So I don't want to like...
335
00:15:38.794 --> 00:15:40.555
So 31% is way underbid.
336
00:15:40.755 --> 00:15:40.956
Yeah.
337
00:15:40.996 --> 00:15:43.077
What percentage is slightly underbid?
338
00:15:44.118 --> 00:15:45.740
It's maybe another 20%.
339
00:15:45.980 --> 00:15:46.561
Cool.
340
00:15:46.901 --> 00:15:47.942
All right.
341
00:15:47.962 --> 00:15:49.263
So half your customers are underbid.
342
00:15:52.257 --> 00:15:53.178
I would have two tiers.
343
00:15:53.438 --> 00:15:54.599
One is you're gonna double the price.
344
00:15:55.319 --> 00:15:57.101
One is gonna be 20% increase.
345
00:15:57.601 --> 00:15:59.042
I would just bucket all of them and do it now.
346
00:15:59.262 --> 00:16:02.265
The reason is because you have so many leads about to come in, you're already at capacity.
347
00:16:02.285 --> 00:16:03.425
When you're at capacity, raise prices.
348
00:16:04.426 --> 00:16:11.211
So do it now so that you have all the leads to be able to come in before the winter and backfill, and those are gonna be the higher price.
349
00:16:12.652 --> 00:16:14.674
If you're at capacity, you have all the flexibility in the world.
350
00:16:15.214 --> 00:16:16.275
I would do it in two stages.
351
00:16:16.355 --> 00:16:17.936
I would first do the ones where I gotta double.
352
00:16:17.956 --> 00:16:19.297
You're gonna lose by 70% of them.
353
00:16:20.933 --> 00:16:25.977
And then I would do another one, because you're going to get some leads coming in, you're like, okay, we're almost back to capacity.
354
00:16:25.997 --> 00:16:26.297
Okay, great.
355
00:16:26.457 --> 00:16:29.579
Now let's go raise the people that are 15%, 20% underbid.
356
00:16:29.639 --> 00:16:30.760
We'll raise them all by 20%.
357
00:16:31.721 --> 00:16:36.864
And if you lose some of them, who cares, because you're about in the snow season, and as soon as you get up for snow, you've got a whole bunch of leads falling on your plate.
358
00:16:37.205 --> 00:16:46.071
What you don't want is going into this snow season, getting all these calls, and you can't even take them on because you're busy doing customers that are half the price they should be.
359
00:16:46.491 --> 00:16:47.112
That's crazy.
360
00:16:48.173 --> 00:16:48.333
Right.
361
00:16:48.654 --> 00:16:49.414
You're turning away money.
362
00:16:49.775 --> 00:16:51.757
Well, I just saw this one like two days ago.
363
00:16:51.897 --> 00:16:52.498
Oh, sounds good.
364
00:16:52.518 --> 00:16:54.199
So I was like, oh, that's a problem.
365
00:16:54.279 --> 00:16:56.041
And then we talked about it.
366
00:16:56.101 --> 00:17:00.186
I would batch it just for the sake of like you don't want to lose half your customers because you're going to go to the NerdRack.
367
00:17:00.666 --> 00:17:02.648
I would probably do that like just to tear the band-aid off.
368
00:17:02.908 --> 00:17:06.052
But I would probably do all the ones that you've got to raise price on basically by double.
369
00:17:06.072 --> 00:17:07.033
You're going to lose most of them.
370
00:17:07.553 --> 00:17:08.554
and expect that at least.
371
00:17:08.894 --> 00:17:17.862
And then as you get some leads trickling in through October, November, just be ready to switch over the people that are slightly underbid up by 20%, so you're profitable on them.
372
00:17:18.182 --> 00:17:23.987
And then you'll lose a few of them, and you'll have a couple more leads to be able to fill back up to capacity during November, December.
373
00:17:24.708 --> 00:17:25.308
That makes sense.
374
00:17:25.848 --> 00:17:32.154
I guess the only other pushback or factor that would maybe change it, and I'm guessing you're just going to say no, is we do that too.
375
00:17:34.823 --> 00:17:37.645
Maybe I shouldn't even ask it.
376
00:17:37.925 --> 00:17:41.908
We are like downtown Denver, so we're doing super tiny properties.
377
00:17:41.928 --> 00:17:43.849
Like a lot of times they don't even have driveways and garages.
378
00:17:43.869 --> 00:17:45.490
It's like we're clearing the front porch.
379
00:17:45.510 --> 00:17:46.771
Is this the classic density?
380
00:17:47.231 --> 00:17:48.332
It's density.
381
00:17:48.572 --> 00:17:49.152
Okay.
382
00:17:49.833 --> 00:17:51.033
Should I stop talking?
383
00:17:51.193 --> 00:17:55.096
It's actually with snow because like there's so much liability attached.
384
00:17:55.116 --> 00:18:01.380
Even though you don't have a lot of fixed costs, like you show up to a customer's property, you need to be making a certain amount.
385
00:18:01.500 --> 00:18:02.661
And if you're half of that,
386
00:18:03.121 --> 00:18:06.702
You're losing money so dramatically, you gotta raise prices.
387
00:18:07.823 --> 00:18:08.103
Duh.
388
00:18:08.623 --> 00:18:16.285
In order to be able to make the same revenue, not profit, revenue on these current price jobs versus what's coming in, you have to sell twice as many.
389
00:18:16.946 --> 00:18:17.266
Duh.
390
00:18:17.686 --> 00:18:18.966
And it's revenue, not profit.
391
00:18:19.206 --> 00:18:19.627
Revenue.
392
00:18:20.507 --> 00:18:21.727
So double the prices.
393
00:18:22.468 --> 00:18:27.089
Most of them will leave, and who cares, because you're gonna now replace them, you know what happens.
394
00:18:27.149 --> 00:18:29.650
92% of leads are about to come flowing in October, November.
395
00:18:31.177 --> 00:18:32.297
Just wait until the first snowfall.
396
00:18:32.357 --> 00:18:41.141
The last thing you want to be doing is saying no to a customer who's willing to pay a higher price while you're servicing someone else that's inside of your capacity at a price that's half of what someone else is willing to pay.
397
00:18:42.241 --> 00:18:45.522
That is the definition of insanity.
398
00:18:45.622 --> 00:18:47.843
That's why when you say – I'm trying to make it really clear.
399
00:18:47.863 --> 00:18:50.764
You hit capacity, you raise prices, period, if you're in profit mode.
400
00:18:51.573 --> 00:18:51.893
Period.
401
00:18:51.993 --> 00:18:55.116
And that's the thing that's going to be difficult for you is you just switch to profit mode.
402
00:18:55.536 --> 00:18:55.836
Yeah.
403
00:18:56.116 --> 00:18:57.417
The whole mindset has to change.
404
00:18:57.697 --> 00:19:03.242
Last year at Augusta Lawn Care, the average location grew revenue by more than 27%.
405
00:19:03.622 --> 00:19:05.783
And we're on track to beat that this year.
406
00:19:06.084 --> 00:19:17.392
If you want to see why, go to AugustaLawnCareServices.com slash franchise and watch over 50 videos and case studies of different owners that took their independent lawn care business and turned it into Augusta Lawn Care.
407
00:19:17.412 --> 00:19:17.572
Okay.
408
00:19:17.672 --> 00:19:18.393
It's not about dancing.
409
00:19:18.413 --> 00:19:21.014
It's like, if I don't make money, I don't want this customer.
410
00:19:21.455 --> 00:19:28.059
And if I'm at capacity, and I'm saying no to incoming leads that are willing to pay me twice as much, that's crazy.
411
00:19:30.200 --> 00:19:30.741
Makes sense.
412
00:19:30.841 --> 00:19:31.061
Cool.
413
00:19:33.363 --> 00:19:34.543
Amelia, do you have anything you want to add?
414
00:19:34.904 --> 00:19:35.744
Questions, anything like that?
415
00:19:39.958 --> 00:19:44.800
How do we get him out of the field when I have a baby?
416
00:19:45.320 --> 00:19:46.961
Joel just went through that this past year.
417
00:19:46.981 --> 00:19:48.922
Let's go in the middle of spring rush.
418
00:19:48.982 --> 00:19:50.262
Some of the timing.
419
00:19:50.282 --> 00:19:51.983
People really need to work on their timing.
420
00:19:52.063 --> 00:19:54.124
Well, we just had to get January or February.
421
00:19:54.144 --> 00:19:55.024
It's just a few years from us.
422
00:19:55.044 --> 00:19:56.265
That's right.
423
00:19:56.285 --> 00:19:56.765
That's right.
424
00:19:56.785 --> 00:19:58.166
That's right.
425
00:19:58.246 --> 00:19:59.486
We were shooting for September.
426
00:19:59.706 --> 00:20:00.186
That's funny.
