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Hey everyone, it's Mike Andes.
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I'm the founder of Augusta Lawn Care, where we have over 200 locations around the world.
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And I'm the founder of HomeWorks, software built for home service business owners to grow without breaking.
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And today I'm actually talking to members of HomeWorks instead of our annual momentum call.
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We're doing Q and A, and we're gonna be talking about how you can grow your home service business
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scale up your marketing channels to actually be able to dump money on one specific platform, how to test that platform, and just all other questions revolving around how to grow your home service business.
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Without any further delay, let's go ahead and roll the tape.
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Where do you see Copilot in a year?
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Yeah, well, it won't be called co-pilot.
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It'll be called homeworks.
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That's the first thing.
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The second thing I would say is a lot of features that we're working on just a lot clearer in how they affect sales operations and admin.
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So from an operations perspective, like next week you're gonna see save routes come out and like there's a lot of work going on to the dispatch board, especially when you start doing a huge volume of recurring visits.
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On the sales side, instant quotes is gonna be very important to us as well as the price book.
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So those are two big things that in 2026 we're working on to be able to to build out a quote very quickly without having to use like a spreadsheet or calculator or anything like that.
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And then behind the estimate have all the components of the job, both their cost and their price to the customer on the back end.
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So.
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By doing that, we'll be able to do a much better job of job costing.
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Because right now, you can do job costing, but it's at the job level.
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The ability to be able to build out an estimate where I put in there, okay, a foot of pipe cost me a dollar and I charge $3.
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If I can then have all the components of the job, including labor, materials, all being created for you, I can tell you exactly what you're going to make in terms of profit on the job.
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So...
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Sales, that's operations, more of the dispatch, kind of the organization side.
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From the admin perspective, a lot of it is this honestly design.
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Even for like behind me at Augusta here, during the spring rush, we'll have about 70, 80 people on the phone doing admin every day.
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If I can just save everyone one second, one less click, one less getting distracted by something that shouldn't be popping up at the wrong time, that's really important.
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And so our goals, like you'll see a lot of things, even like the unscheduled work and waitlist that just came out.
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It looks a little bit different.
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Like the filtering looks a little different.
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It's a little cleaner.
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Those are the type of little changes from an admin perspective we're really focused on.
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And that's just like the overall tightening of the design so that someone that you drop into the system can learn it much faster because it's more intuitive.
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So, for example, the one of the pages I hate the most is like the customer list page right now.
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Tons of filters at the top.
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There's a lot of buttons, a lot of things happening.
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We can change that design to where it's very intuitive to when you get in there like, oh, I can very quickly find the service I want.
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I can very quickly find the zip code or if they're currently on service or if they have a pause service.
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Those are the type of things that we can just...
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make better.
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And so a lot of what we're doing in 2026 is just making what is there better, faster, easier to navigate, but then also building some tools that I think will really help with sales, especially instant quotes and the price book.
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And then secondly, from an operational perspective, a lot of scheduling stuff, things around like multi step routes, etc.
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There's a very long answer to your very short question.
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But I appreciate it nonetheless for breaking the ice.
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All right, let's go ahead and Jacqueline.
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Hey, a question for you, for our context.
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So we're a seven 40,000 business nine years coming.
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Generally it's stuck in profit mode for the last three years and tweaking and building, I have had great intentions of getting P4P and have failed every year for three years now.
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but we converted to co-pilot last year.
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And our problem has gone, we're a multidisciplinary service.
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And that's where we get stuck.
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And that crossover and diversity, as we were like the one's 33%, irrigation tech would be, you know, 40%.
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But then we control is like 20% where we tried the software and we couldn't have it.
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We, we haven't tackled it again.
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No, we tackled in spring and it was with co-pilot transition.
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We just said, Hey, we're going to fix it later.
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Yep.
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The good thing is you did the hardest part, which is the switch to co-pilot now making the P4P part will be way easier.
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Yeah.
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And so how you can make this work, Jacqueline, is inside of your items and services of Copilot, you can adjust the rate that is just for P4P.
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Now, what's nice about that is it doesn't change anything inside Copilot or your billing or invoicing.
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So you could just simply move that number to make sure that it corresponds with the correct service.
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and move that number up or down, the rate.
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So if you go to item and services for weeding versus mowing versus all these other things, there's a separate line in there just for the sink to P4P, and it's the rate for P4P.
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Oh, in the SKU.
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Correct.
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Right, right in the item and service.
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And so that way it's to just sync up.
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So we built that just for this one reason.
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And that is people have different rates and different percentages for different types of services.
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If you manipulate that number, it'll come across to P4P correctly.
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Was that always there?
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Yeah, it was.
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Okay.
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Well, I guess spring rush happens, right?
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Oh, I couldn't solve that, I guess, at the time.
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It's not super intuitive because what everyone thinks is that the rate and the P4P rate should be the same, right?
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Yeah.
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And theoretically, theoretically, if all your percentages was, you would be.
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I wish.
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But yeah, but you can just move that number up and then it'll move over inside P4P, like it'll adjust on P4P.
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Okay, so that is easier to handle.
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It has been built with.
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Okay.
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Okay, good.
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It's not going to be perfect because you are kind of inflating what looks like your hourly rate is.
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So that could throw some of your reports slightly off.
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But in terms of the actual how much are they earning, all that will come across clean.
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I'll also say once you try that out and you're going to be like, oh, what about this, this, and this, book a call with Layelle.
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You can do it even if you're not a member.
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Just go sign up, go to support and put a call with her.
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And she'll just be like, oh, yeah, just change just one or two things.
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Your percentages can change here.
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Or, for example, some of your team members might mostly be on mowing or mostly be on weeding.
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She'll just say, hey, the user level, change out those percentages, and we can make it cleaner.
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Okay.
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Hey, everyone, real quick, I just wanted to make a shout out.
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This call that you're watching right now is actually what we call our momentum call at Copilot.
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It's one of the calls that we have every year with all the members inside of Copilot.
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And so if you ever thought about joining Copilot or switching softwares, I highly recommend doing it right now.
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This is the best time of year to do it.
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and we are really interested in helping you grow your business, not just have software and make a bunch of, a box of features and have you on a subscription and lock you into a contract.
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We don't do that.
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We have a guarantee that you'll grow your business or your money comes back to you.
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And in order to do that, we make sure we have these calls where you go over your goals.
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We actually have a goal session.
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and a planning session.
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And the entire first year is full of calls with support to be able to make sure you grow your business, both in revenue and in profits.
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So if you've considered joining, go check out copietserum.com, book a call with Christian.
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He's our head of sales.
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He also used to be my personal trainer.
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He's a great guy and he'll see if joining Copiat is the right fit for your business.
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All right, James, I believe is up next.
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Hi, how are you doing?
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Good.
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How are you doing?
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Doing well.
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Um, so last year we had kind of an interesting year with,
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marketing uh we primarily did direct mail and door hangers it's done pretty good for us in the past last year between direct mail and door hanger could probably put out about 3 000 to 3 000 residents and we got like five maybe ten calls off of all that and there were some things i changed in the marketing but i'm just curious what's like a good call rate for marketing
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Yeah.
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So are you all door hangers that you did the 3000?
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Door hangers and postcards.
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Okay.
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So do you know of the 3000, how many were door hangers and how many were postcards?
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Postcards is about 1500.
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Okay.
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And of the six calls that came in, how many of them were from postcards and how many were for door hangers?
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It was a pretty even split.
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Okay.
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So you have a one in 500 hit rate, uh, in terms of response rate for, as a blended average.
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That's a good starting point.
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Most people don't even come up with a number.
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Because then it's a function of, I don't believe you are yet in a position to do more.
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So you have more, better, new.
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More would be, hey, this is working, let's go do more of them.
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I'd say go do 30,000 instead of 3,000.
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The problem is you can't do more because the math doesn't math when you're getting 1 out of 500.
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And so this is when better steps into play.
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And most people go think new.
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I don't think that because one of the 500 is a benchmark that I think you can eventually down the road increase that effectiveness by five, like five X. I didn't get to one out of 100.
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And then you start to have a real good marketing machine.
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Like, OK, if I can put out 100 of these an hour, that's one per hour.
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If I pay someone to do that, it's 25 bucks.
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But my print cost, that's $30.
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The cost per lead, $30.
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That'd be great.
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And so I would say this is actually a function of doing it better.
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And the reason I say that is because when we started doing door hangers at Augusta, our hit rate was very similar to yours.
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We've done 24 versions of the door hanger now to get it to where it is five times better.
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and in terms of like one out of a hundred as an approximation.
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So to get there, though, it'll mean like, okay, now next year when you do 3,000, let's do 1,500 of them that have instant quote, and let's have 1,500 of them that don't have instant quotes, like the actual price of the job.
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And then you can, again, do another with 1,500.
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All right, 1,500 that have a QR code, 1,500 where they write in their email address and their phone number.
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These are the type of things that you start split testing to get to where –
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the exact same number of door hangers will produce five times more results.
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That makes sense.
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The one thing we did change that year was we did switch over to, it wasn't exactly an instant quote, but we had like a starting rate listed on the door hanger.
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We've never done that before.
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And so I'm wondering if it was just kind of a turnoff for people.
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Because we haven't seen it.
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Yeah, we have not seen that move the needle in terms of conversion.
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I'll just like test this.
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So when you say starting at, they basically think of that as, oh, that's the lowest price.
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I'm only going to be higher than that, which unfortunately when it comes to numbers, higher is infinite.
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And so they think – like if they say starting at $50, oh, I'm probably $80 or $90.
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Well, they could very well be $50.
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And so I would highly recommend James, like this doesn't sound promotional, but like check out lawncaremedia.com.
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Don't even have to buy the door hanger.
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Just go to that one.
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That was one of our, like I think our 15th version that we used Augusta.
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We've now customized a little bit more because we have the command center to be able to do some cool stuff with in terms of instant quotes and collecting card information.
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But you could start there with a design of like, okay, I know that just doing that design will double the amount that you're getting from door hangers.
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Compared to like doing a starting at number, if you have a QR code on it, it'll also improve the conversion, not in how many people respond, but in the legibility of the information.
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Because when they write on it, it messes up.
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To some degree.
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I also know that if I offer more than one service, I will increase the conversion rate.
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Because now I might swing out, swing and miss on a mowing service, but because I put a property cleanup price on there, I get some percentage of people on that.
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So you can get that conversion way improved just by doing more.
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That's why I'm happy that you tracked it.
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Because if you track it, then you can improve on it and split test and see what works.
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And then you're going to be like, okay, I tried that in my market.
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It actually got worse.
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Oh, yeah.
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hey, don't do that.
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Let's do the opposite of that.
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And so it'll take you a while, but like, I would not give up on any channel when it's like, is it good?
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Is it bad?
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It's like, how well did you do it?
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How many did you do?
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How long did you stick to it?
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How many iterations did you like?
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There's so many more questions I'd have to ask, right?
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Right.
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Like if I, if I, if I was giving away lawn care service, I'd probably get a pretty good hit rate, regardless of whether or not that door hanger worked or not.
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If I just said, everything is free forever.
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We get a great hit rate, you know?
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And then one more question, if that's okay.
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Yeah.
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Well, things have been pretty tight throughout the last five years.
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And one of the things we keep running into kind of off of your like 4L framework is we have a lead problem, but it's kind of caused because of a liquidity problem.
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We don't have the money for marketing.
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So we're kind of stuck in this loop of where we can't market enough to get the liquidity, but we don't have the liquidity to market.
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So how would you suggest kind of breaking out of that?
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Yeah, so if you don't have money, i.e.
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liquidity to get leads, the question becomes how do I get leads without spending money?
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There are a few things you can do.
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One is you can do things that require time instead of money.
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For example, like door hangers where for $50 you can get 1,000 plus of them and go out and put them like yourself.
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So first step would be I go spend time instead of money because I don't have money.
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And especially when you're slow, like there's no reason but not to go out and do that.
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The second thing would be, are you extinguishing all other aspects of marketing that don't require money?
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I.E.
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upselling, cross selling, talking to existing customers, emailing and texting them additional offers.
213
00:13:23.176 --> 00:13:28.480
Those are the things that you could double the size of your business and keep the same number of customers and never get a new lead next year.
214
00:13:28.941 --> 00:13:31.002
So one of our locations at Augusta, I just went through there.
215
00:13:31.423 --> 00:13:32.864
We have their, we pulled their metrics.
216
00:13:33.044 --> 00:13:35.126
I looked at their numbers from last year versus this year.
217
00:13:35.146 --> 00:13:36.186
Their profit doubled.
218
00:13:36.507 --> 00:13:39.469
Number of customers went down by 10%, and they didn't raise prices.
219
00:13:39.769 --> 00:13:44.393
They simply took the existing customers they had and just sold more stuff to them.
220
00:13:44.613 --> 00:13:50.997
So their annual ticket, the average annual ticket of each customer or average annual value went up by like 40%.
221
00:13:51.778 --> 00:13:57.081
They got better at sending text messages to the customer of spring and fall cleanup.
222
00:13:57.321 --> 00:13:59.602
And on average, people accepted one of them.
223
00:14:00.022 --> 00:14:01.403
On average, that was $600.
224
00:14:02.023 --> 00:14:09.487
That increased the average ticket by more than 40% because if they just mowed their lawn, it was like $800 to $900, right?
225
00:14:09.887 --> 00:14:14.909
So I would first, for example, do you send a monthly email blast to all the customers inside of Copilot?
226
00:14:15.269 --> 00:14:15.550
No.
227
00:14:16.130 --> 00:14:17.811
Step number one, completely free.
228
00:14:18.691 --> 00:14:20.332
Are you an enterprise right now, James, or lower?
229
00:14:20.352 --> 00:14:20.412
No.
230
00:14:21.388 --> 00:14:22.028
Enterprise, yeah.
231
00:14:22.549 --> 00:14:22.809
Okay.
232
00:14:23.009 --> 00:14:24.590
You have free text messages right now.
233
00:14:25.250 --> 00:14:26.411
Eventually, we're going to have to charge for it.
234
00:14:27.251 --> 00:14:28.672
Either free to text your customers.
235
00:14:29.052 --> 00:14:30.533
How many contacts do you have in your database?
236
00:14:30.873 --> 00:14:32.414
Probably about 800.
237
00:14:32.454 --> 00:14:33.914
Let's go.
238
00:14:34.054 --> 00:14:37.876
So we bought the business from a guy who failed as a business owner.
239
00:14:38.397 --> 00:14:44.280
We bought it with a bad reputation and tried to turn it around, which was a bad move on my part.
240
00:14:44.960 --> 00:14:48.122
So a lot of those customers don't like us.
241
00:14:48.882 --> 00:14:50.323
Did you change the name of the business or not?
242
00:14:50.603 --> 00:14:50.743
No.
243
00:14:51.442 --> 00:14:51.682
Okay.
244
00:14:52.123 --> 00:14:58.030
And these other customers, let's assume that out of 800, 600 of them had a bad experience.
245
00:14:58.811 --> 00:15:01.855
How many of them know that the business, the ownership changed?
246
00:15:01.895 --> 00:15:03.037
We did send out an email.
247
00:15:03.357 --> 00:15:05.360
I don't know how many people saw it.
248
00:15:05.640 --> 00:15:07.042
This was four or five years ago.
249
00:15:07.482 --> 00:15:07.763
Yeah.
250
00:15:07.803 --> 00:15:10.065
So like four or five years ago, no one knows remembers.
251
00:15:10.246 --> 00:15:10.866
They don't care.
252
00:15:10.886 --> 00:15:12.148
They don't think about you.
253
00:15:12.188 --> 00:15:13.169
They don't think about your business.
254
00:15:13.569 --> 00:15:15.652
If this was four months ago, I'd give some weight to it.
255
00:15:15.672 --> 00:15:17.354
But even then, people just don't remember.
256
00:15:17.754 --> 00:15:22.840
So I would highly recommend thinking of all these people's cold, cold traffic.
257
00:15:22.921 --> 00:15:24.783
Honestly, they don't remember who you are.
258
00:15:25.203 --> 00:15:26.704
Um, half the text messages are going to bounce.
259
00:15:26.724 --> 00:15:30.807
Half the emails are going to bounce, but I would definitely be doing an email and text message.
260
00:15:31.407 --> 00:15:41.393
And even if you have, do you have them segmented James, but like the ones that were bad, like that you kind of burned, they, he burned kind of by date, if that makes sense.
261
00:15:41.433 --> 00:15:41.633
Yeah.
262
00:15:41.733 --> 00:15:41.893
Yeah.
263
00:15:41.913 --> 00:15:42.214
Effective.
264
00:15:42.234 --> 00:15:42.374
Yeah.
265
00:15:42.414 --> 00:15:42.594
Cool.
266
00:15:42.914 --> 00:15:44.395
So I would send all of them an email.
267
00:15:44.715 --> 00:15:45.995
I'd make that one much more graphical.
268
00:15:46.015 --> 00:15:49.576
You can put embedded video inside of the email builder of Copilot.
269
00:15:49.856 --> 00:15:55.798
And I would explain why you, what you've done over the past four or five years to change the reputation of XYZ business.
270
00:15:56.278 --> 00:15:56.978
We've done this.
271
00:15:57.078 --> 00:15:57.719
We've done this.
272
00:15:57.779 --> 00:15:58.939
We've now have a software.
273
00:15:58.959 --> 00:16:00.519
We know how we answer our phones.
274
00:16:00.739 --> 00:16:01.520
We have reviews.
275
00:16:01.560 --> 00:16:02.440
Here's a bunch of them.
276
00:16:02.700 --> 00:16:03.800
We have our money back guarantee.
277
00:16:03.840 --> 00:16:05.381
We do all these things now that are different.
278
00:16:05.801 --> 00:16:07.881
And so if you got burned in the past, I'm sorry about that.
279
00:16:08.121 --> 00:16:09.822
And when I purchased this business, I didn't know that.
280
00:16:10.102 --> 00:16:13.563
But I promise if you're willing to come back and give us a try, we're going to over deliver for you.
281
00:16:13.883 --> 00:16:19.912
And then the people that have no idea about that old one, you're going to address with an offer for a service that's required at this time of year.
282
00:16:20.453 --> 00:16:28.104
So I, in my opinion, like when I hear 800 customers, and let's just call, let's say 500, 500 or 600 of them are the old, old people, 200 or 300 new people.
283
00:16:28.965 --> 00:16:36.873
All right, two to three hundred new people, when we go into spring, we're going to get them on a spring cleanup early in the year prior to when everyone else is calling us.
284
00:16:37.374 --> 00:16:45.402
Like four to six weeks before the phone starts ringing off the hook, we're going to email and text two to three hundred people that have already done business with you in the past few years and they like you.
285
00:16:45.742 --> 00:16:50.167
You're going to email them all and you're going to text them all in a very personalized fashion saying, hey…
286
00:16:50.707 --> 00:16:52.629
It's James over here at XYZ Lawn Care.
287
00:16:53.069 --> 00:16:59.934
Would love to do service for you this time of year because we get really busy in a couple months, but as a valued customer, I'd like to give you priority.
288
00:17:00.194 --> 00:17:01.655
I'll give you a quote tomorrow if you like it.
289
00:17:01.815 --> 00:17:02.236
Sound good?
290
00:17:03.116 --> 00:17:03.677
That will convert.
291
00:17:04.037 --> 00:17:04.778
Text and email.
292
00:17:05.398 --> 00:17:11.263
And then to the other 500 people, you're gonna do the first route, which is, I'm sorry if you're experiencing the past, here's all the things we've changed.
293
00:17:11.563 --> 00:17:16.927
Make a video and embed that on your email and do a link inside of a text message to all of them otherwise.
294
00:17:17.107 --> 00:17:23.114
My GMs are not allowed to spend one single dollar on marketing until they have text and email every single other customer.
295
00:17:23.134 --> 00:17:24.756
And they don't spend money on marketing because of it.
296
00:17:25.056 --> 00:17:26.838
And it's free, James.
297
00:17:27.219 --> 00:17:28.880
It's free.
298
00:17:29.301 --> 00:17:29.801
Just do it.
299
00:17:30.042 --> 00:17:30.602
Just do it.
300
00:17:31.123 --> 00:17:31.423
Cool.
301
00:17:31.443 --> 00:17:31.764
Good stuff.
302
00:17:31.784 --> 00:17:32.805
All right, Bob, go ahead.
303
00:17:32.985 --> 00:17:35.047
Mike, thanks for the invite, man.
304
00:17:35.648 --> 00:17:36.569
Yeah, absolutely.
305
00:17:36.849 --> 00:17:38.210
Been following you for a long time here.
306
00:17:38.590 --> 00:17:41.713
And I want to thank you for creating P4P.
307
00:17:41.973 --> 00:17:45.936
I got to say, I heard Jacqueline, I think it was Caleb, talking about implementing it.
308
00:17:46.136 --> 00:17:47.357
I implemented it three years ago.
309
00:17:47.837 --> 00:17:49.679
Completely changed the business for the positive.
310
00:17:50.680 --> 00:17:52.481
Couldn't mention being in business without it.
311
00:17:52.641 --> 00:17:53.221
You and me both.
312
00:17:54.262 --> 00:17:54.562
Awesome.
313
00:17:54.722 --> 00:17:58.223
But that said, I want to share one of the biggest wins for this year.
314
00:17:58.243 --> 00:18:00.283
No doubt was the stability of the team.
315
00:18:00.504 --> 00:18:02.664
We had the lowest turnover ever.
316
00:18:02.804 --> 00:18:04.705
We turn over to one guy on May 20th.
317
00:18:05.265 --> 00:18:09.986
The following day we were able to hire somebody and the team has been solid since it's awesome.
318
00:18:10.306 --> 00:18:13.407
And I guess the question I have is how do we keep it this way?
319
00:18:14.147 --> 00:18:18.928
You know, we're, we're not, you know, we're, we're an eight person company and yeah,
320
00:18:20.529 --> 00:18:24.612
Right now, like I said, before P4P, we weren't profitable.
321
00:18:24.712 --> 00:18:26.634
I never really knew how that felt.
322
00:18:26.674 --> 00:18:27.294
We have been.
323
00:18:28.195 --> 00:18:36.921
I want to keep the people here, but we run a very flat, lean organization where there's literally no mid-level management.
324
00:18:37.282 --> 00:18:38.563
How do we keep them there?
325
00:18:38.583 --> 00:18:40.364
How do we keep them motivated?
326
00:18:40.504 --> 00:18:43.487
You get the wheelchair and you get the crib.
327
00:18:43.647 --> 00:18:44.247
Same situation.
328
00:18:44.287 --> 00:18:44.587
Let's go.
329
00:18:44.607 --> 00:18:45.888
I would say...
330
00:18:48.461 --> 00:18:50.322
This is when the trinity of the trades comes into play.
331
00:18:50.342 --> 00:18:52.884
So that's P4P, open book management, and profit sharing.
332
00:18:53.484 --> 00:18:53.704
Right?
333
00:18:53.925 --> 00:18:56.226
So have you done open book management and profit sharing yet?
334
00:18:56.266 --> 00:18:56.486
Yes.
335
00:18:56.726 --> 00:18:58.087
We got quarterly profit sharing.
336
00:18:58.988 --> 00:19:02.330
Last quarter, everybody was eligible.
337
00:19:02.750 --> 00:19:02.970
Cool.
338
00:19:03.030 --> 00:19:03.270
Awesome.
339
00:19:03.591 --> 00:19:06.713
So I think you have in place what would be –
340
00:19:07.513 --> 00:19:12.074
I would say is a maximized form of one location.
341
00:19:12.234 --> 00:19:16.655
Like you have all your team incentivized on their daily as individuals.
342
00:19:17.095 --> 00:19:21.595
You have them incentivized from a team perspective and the business from a profit sharing perspective.
343
00:19:22.016 --> 00:19:26.836
The only other way to, if you're thinking about your team and keeping that way is to create levels in the business.
344
00:19:27.376 --> 00:19:30.437
And if you're like, that doesn't serve my needs, then don't do it, right?
345
00:19:30.677 --> 00:19:35.898
And it's like where the book, like there was several times I'm like, I should not write this book because most people should build the business you've just built.
346
00:19:36.518 --> 00:19:38.718
And just keep optimizing it and be very happy.
347
00:19:38.858 --> 00:19:53.281
And so if that's not in the cards, which it doesn't need to be, just realize the hardest part for you is going to be now, Bob, is you built a great team, you're making money, but then you're going to lose people that stay with you for a few years and they just got to move on to something else.
348
00:19:54.021 --> 00:20:03.163
And so what I would do is I would take the first seven stages of success, you could basically rip it straight off, the first seven stages, and then realize that...
349
00:20:04.003 --> 00:20:08.087
you might lose some people to the next stage of their career because they outgrow your business.
350
00:20:09.028 --> 00:20:14.953
But that's something to be celebrated given the fact that you know you're only offering half the latter.
351
00:20:15.453 --> 00:20:22.400
And so you instead, when someone leaves a different company and goes to construction, or they go to oil or do something in college, you celebrate that with the team.
352
00:20:22.580 --> 00:20:28.225
And if you do, they'll actually believe you when you say you want them to get them to the next stage of their career, even if that means leaving the company.
353
00:20:28.645 --> 00:20:35.532
And so before we had the GM track, before we had the owner track, and we had the other 14 stages, we would celebrate when people left the company.
354
00:20:35.852 --> 00:20:40.516
Assuming they were moving on to something bigger, better, they're going to make more money, educate themselves more.
355
00:20:40.797 --> 00:20:44.420
And so make it all about the learning and getting the next stage of their career.
356
00:20:44.820 --> 00:20:48.564
And they'll just realize the people that get through all the stages and they'll have to jump.
357
00:20:49.418 --> 00:20:49.858
And that's okay.
358
00:20:50.298 --> 00:20:51.379
So take the seven stages.
359
00:20:51.439 --> 00:20:55.620
I would probably, if I was you, Bob, change the sixth and seventh one to be things that take a little bit longer.
360
00:20:56.040 --> 00:21:03.082
You could also adjust P4P to where when they hit like a seventh stage of success for a technician, that their percentage on P4P goes up.
361
00:21:03.323 --> 00:21:08.384
You just change that one number on P4P, be like, hey, you go from 25 to 28 or 30 or whatever.
362
00:21:08.644 --> 00:21:16.827
You could bake in some compensation there, but usually people leave if they're an A player, mostly because of opportunity, other skills they want to, goals they have.
363
00:21:17.107 --> 00:21:23.313
And that is something to be, in my opinion, celebrated if they're moving on to something bigger that you can't offer.
364
00:21:23.653 --> 00:21:23.993
Very good.
365
00:21:24.174 --> 00:21:24.414
Thanks.
366
00:21:24.814 --> 00:21:25.295
You got it, brother.
367
00:21:25.375 --> 00:21:26.276
Congrats on all the success.
368
00:21:26.836 --> 00:21:27.477
All right.
369
00:21:27.637 --> 00:21:29.839
JRCNC Landscaping.
370
00:21:30.139 --> 00:21:30.540
Go ahead.
371
00:21:30.720 --> 00:21:31.040
Hey, Mike.
372
00:21:31.100 --> 00:21:31.621
How are you?
373
00:21:31.841 --> 00:21:32.581
Big fan of you.
374
00:21:34.160 --> 00:21:36.402
So this is where I am right now.
375
00:21:36.682 --> 00:21:38.824
So we're going to be around last year.
376
00:21:38.844 --> 00:21:42.286
We did about seven and change to 750.
377
00:21:43.147 --> 00:21:44.968
This year I'm being conservative.
378
00:21:45.268 --> 00:21:50.091
We still got to do some some cleanups, a second round of cleanups, fall cleanups.
379
00:21:50.111 --> 00:21:51.572
We just got snow here in Mass.
380
00:21:51.752 --> 00:21:55.435
We won't be able to got to wait for that to dry out to melt away.
381
00:21:55.595 --> 00:21:56.876
But this is where I am.
382
00:21:56.936 --> 00:21:59.337
I want to implement the P4P for next season.
383
00:21:59.477 --> 00:22:02.038
But we do the way we try to do.
384
00:22:02.078 --> 00:22:03.899
We try to do the control growth.
385
00:22:04.159 --> 00:22:04.839
You know what I mean?
386
00:22:04.859 --> 00:22:10.522
So, like, we try to be profitable and try to keep everything running smoothly.
387
00:22:11.162 --> 00:22:12.923
We're around 192 clients.
388
00:22:13.303 --> 00:22:15.884
My foreman makes $30 an hour.
389
00:22:16.225 --> 00:22:17.945
The next guy makes $26 an hour.
390
00:22:19.541 --> 00:22:26.483
The guy below him, 25, and then the most cost-effective guy is 23.
391
00:22:26.563 --> 00:22:30.984
Where do I – everything is so high.
392
00:22:31.224 --> 00:22:35.786
Where do I go from there?
393
00:22:35.866 --> 00:22:37.666
You might not know this number, and that's fine.
394
00:22:38.426 --> 00:22:43.708
When you look at last year's revenue, the 750, do you know what your wages were on that?
395
00:22:44.634 --> 00:22:44.874
Yes.
396
00:22:45.495 --> 00:22:45.775
Okay.
397
00:22:45.795 --> 00:22:46.535
Do you know this?
398
00:22:46.555 --> 00:22:53.580
So overall, for everything, we're around $360,000 for everything, for all of them.
399
00:22:53.940 --> 00:22:57.963
The same guys that I have now is the same guys that we had last season.
400
00:22:58.423 --> 00:23:00.364
Does that include your pay, the $360,000?
401
00:23:00.424 --> 00:23:01.325
No, it does not.
402
00:23:01.365 --> 00:23:02.506
No.
403
00:23:02.686 --> 00:23:03.346
Just themselves.
404
00:23:03.606 --> 00:23:06.548
What percentage of your day is spent in the field versus not?
405
00:23:07.008 --> 00:23:07.269
100%.
406
00:23:08.109 --> 00:23:10.551
Oh, you're in the field producing revenue all the day.
407
00:23:10.571 --> 00:23:10.671
Yeah.
408
00:23:10.771 --> 00:23:10.931
Okay.
409
00:23:10.951 --> 00:23:15.495
So I'm going to go ahead and pretend like you're a field member and producing about $125,000.
410
00:23:15.515 --> 00:23:15.955
So $125,000.
411
00:23:15.975 --> 00:23:17.356
Yeah, just above.
412
00:23:17.436 --> 00:23:18.978
Okay, cool.
413
00:23:19.398 --> 00:23:26.223
So what we can therefore say is if we take your labor revenue out, the business made $625,000 with them.
414
00:23:27.824 --> 00:23:30.146
And now we're saying that we paid them $320,000 last year?
415
00:23:30.186 --> 00:23:30.426
Yeah.
416
00:23:30.446 --> 00:23:30.607
Yeah.
417
00:23:32.900 --> 00:23:42.347
So if we take $320,000, divide that out by $625,000, that means right now you're paying about 51% of total revenue to wages.
418
00:23:43.508 --> 00:23:43.888
Correct.
419
00:23:44.268 --> 00:23:47.710
And that's a little high, but for what I'm getting, you know what I mean?
420
00:23:47.811 --> 00:23:50.012
Yeah, I got you.
421
00:23:50.212 --> 00:23:51.473
This is what I would do.
422
00:23:51.833 --> 00:23:52.394
Totally.
423
00:23:52.434 --> 00:23:52.794
I agree.
424
00:23:53.174 --> 00:23:56.417
What I would then say is as long as you beat that number,
425
00:23:57.298 --> 00:23:59.099
We're going to win.
426
00:23:59.179 --> 00:24:00.880
In terms of there's only upside for you.
427
00:24:01.641 --> 00:24:07.244
And so I also know that that number is very high, and we can improve it dramatically with P4P.
428
00:24:07.605 --> 00:24:12.268
Because your efficiency score, if I had to take a stab at it, it's probably 60%.
429
00:24:12.288 --> 00:24:16.751
Yeah, and so that number can get well above 75% to 80%.
430
00:24:17.271 --> 00:24:23.735
And the delta of the increase in their efficiency, they can make more money, and you can make more money.
431
00:24:23.915 --> 00:24:24.296
And so...
432
00:24:25.036 --> 00:24:30.560
The next question becomes how do you do equitably when you have people at 30, 26, 23, 25, and all over the place?
433
00:24:31.401 --> 00:24:37.746
My question is of those four guys, are they all doing the exact same thing or is the guy that's doing $30, is he kind of like their manager?
434
00:24:37.886 --> 00:24:42.450
So he was the manager for those three guys, those two guys, I'm sorry.
435
00:24:42.490 --> 00:24:43.551
So it was a crew of three.
436
00:24:44.231 --> 00:24:48.435
So he used to manage the other two guys with him on one truck.
437
00:24:48.955 --> 00:24:50.156
I would take the other truck.
438
00:24:50.536 --> 00:24:52.898
He's a crew leader essentially, but he's been with you for a very long time.
439
00:24:53.358 --> 00:24:53.719
Correct.
440
00:24:54.159 --> 00:24:54.919
So this is what I would do.
441
00:24:55.380 --> 00:24:58.601
I would, because it sounds like you keep these guys for a long time.
442
00:24:58.621 --> 00:25:00.602
They're very loyal and you do not want to lose them.
443
00:25:01.102 --> 00:25:06.985
And so how I would pitch this to them is, hey, guys, I'm trying to figure out this P4P thing.
444
00:25:07.405 --> 00:25:10.067
I want to pay you the harder you work, the more efficient you are.
445
00:25:10.207 --> 00:25:11.307
And it's going to take me a little bit of time.
446
00:25:11.327 --> 00:25:13.088
I'm going to do some math on the back end.
447
00:25:13.528 --> 00:25:18.911
But I want to figure out a way where you can make more money if you get jobs done faster and if you're working quicker.
448
00:25:19.391 --> 00:25:20.392
But you're not going to go down.
449
00:25:21.152 --> 00:25:22.473
So you're going to protect their base pay.
450
00:25:22.913 --> 00:25:27.697
Now, in years to come, when you hire new people, we need to know what their base pay is going to be.
451
00:25:28.017 --> 00:25:29.959
And I'm going to go out on a limb and say it's around $23.
452
00:25:29.999 --> 00:25:31.259
I know your market pretty decently.
453
00:25:31.820 --> 00:25:35.623
$23 is probably what you need to be able to pay to get an entry level person that's half decent.
454
00:25:35.983 --> 00:25:37.484
So that could be your base pay.
455
00:25:37.904 --> 00:25:39.265
You have people above that.
456
00:25:39.565 --> 00:25:41.307
Now, if you had a larger team,
457
00:25:41.767 --> 00:25:47.230
I would probably say, and you have a few people above, you just say, hey, this is the base pay, and we're rolling, and you might lose one or two of them.
458
00:25:47.510 --> 00:25:48.571
In this case, you don't want to do that.
459
00:25:48.631 --> 00:25:49.531
That's your biggest fear.
460
00:25:49.831 --> 00:25:54.254
So what you could do is just have a different percentage on P4P based upon tenor.
461
00:25:54.874 --> 00:26:01.097
I am not a fan of this usually, but given the fact that these guys have been with you for a very long time, there's no one churning.
462
00:26:01.117 --> 00:26:02.518
You want to maintain these four people.
463
00:26:03.178 --> 00:26:03.679
I would say...
464
00:26:04.646 --> 00:26:08.468
Try to find the commonalities between what is different between 23, 25, 26, 30.
465
00:26:08.488 --> 00:26:13.790
I'm going to go on a limit saying it's something to do with tenor, like how long they've been with you.
466
00:26:14.350 --> 00:26:16.171
So, for example, you can say, hey, you start at 23.
467
00:26:16.551 --> 00:26:18.212
After one year, you're at 25.
468
00:26:18.452 --> 00:26:20.172
At 26, you could bake your base.
469
00:26:20.252 --> 00:26:23.574
Your base pay goes up on P4P.
470
00:26:24.134 --> 00:26:24.414
Okay.
471
00:26:24.434 --> 00:26:24.594
Yep.
472
00:26:24.874 --> 00:26:25.174
Awesome.
473
00:26:25.434 --> 00:26:26.835
I appreciate your help.
474
00:26:26.915 --> 00:26:28.496
Thank you for everything and everything that you do.
475
00:26:28.536 --> 00:26:29.436
Thank you, as always.
476
00:26:29.836 --> 00:26:30.677
Been nothing but great.
477
00:26:30.697 --> 00:26:31.437
Thank you for everything.
478
00:26:31.988 --> 00:26:32.368
You got it.
479
00:26:32.649 --> 00:26:33.169
All right.
480
00:26:33.189 --> 00:26:35.291
907, you've been gifted the final question.
481
00:26:36.652 --> 00:26:37.673
Oh, I appreciate that.
482
00:26:38.093 --> 00:26:39.174
It's a really quick and easy one.
483
00:26:39.835 --> 00:26:42.037
I've got a guy who I think is awesome.
484
00:26:42.137 --> 00:26:43.618
He does an amazing on P4P.
485
00:26:43.778 --> 00:26:44.939
He's great by himself.
486
00:26:45.540 --> 00:26:48.122
His problem comes with mentoring the new guys.
487
00:26:48.142 --> 00:26:49.984
He can definitely be a bit snippy with them.
488
00:26:51.085 --> 00:26:56.630
Every year he says he wants to move into this management position, but then every single year we have the same issue.
489
00:26:57.490 --> 00:27:06.316
And I end up taking it back just to, you know, I don't want to lose my best producer, but at the same, and how do I find the balance and do I, what can I do to lead him out of that?
490
00:27:06.336 --> 00:27:09.598
Or, you know, the biggest question is, does he see this as an issue?
491
00:27:10.303 --> 00:27:15.166
Yeah, he definitely, every time we've spoken about it, he hits the reflection and he recognizes it.
492
00:27:15.286 --> 00:27:19.689
He's also amazing at coming back the next day and being like, look, I was definitely out of line yesterday.
493
00:27:19.989 --> 00:27:21.050
So he definitely sees it.
494
00:27:21.330 --> 00:27:24.672
But I would say it is getting better, just not good enough fast enough.
495
00:27:24.692 --> 00:27:27.233
We're probably 90% amazing, 10% a problem.
496
00:27:27.273 --> 00:27:29.835
But, you know, in the middle of spring rush, you can't have that happen.
497
00:27:30.175 --> 00:27:32.837
So the best thing is he knows it's a problem, right?
498
00:27:32.857 --> 00:27:35.919
If someone doesn't know it's a problem, it always ends ugly.
499
00:27:36.099 --> 00:27:38.741
They think they're doing just fine, and you're like, nope, you're not doing good.
500
00:27:39.121 --> 00:27:42.384
It almost always leads to being fired because they want this position.
501
00:27:42.584 --> 00:27:43.404
You say no.
502
00:27:43.444 --> 00:27:44.325
They want this position.
503
00:27:44.445 --> 00:27:46.947
You say no, and eventually they get frustrated, and they leave.
504
00:27:47.547 --> 00:27:54.973
So the fact that he knows and recognizes it's a problem allows you to be able to have a conversation around, I want you also to have this management position.
505
00:27:54.993 --> 00:27:55.373
Right.
506
00:27:55.653 --> 00:28:00.614
We both understand there are certain limitations that you have that are preventing you from getting this position.
507
00:28:01.294 --> 00:28:06.996
Let's team up on this together and figure out what we can do to make sure you get this position.
508
00:28:08.016 --> 00:28:12.317
And then together you brainstorm and you try to get him to say as much as possible of the things that need to change.
509
00:28:13.617 --> 00:28:16.038
And then you get to step up and be like, okay, great.
510
00:28:16.993 --> 00:28:21.679
I can help you give you a roadmap to how to make those changes happen.
511
00:28:22.139 --> 00:28:29.848
So in your back pocket, you would probably wanna have certain things of what you're gonna tell him, and benchmarks of success.
512
00:28:30.209 --> 00:28:33.372
So for example, instead of saying, okay, you're the general manager,
513
00:28:33.993 --> 00:28:39.199
I would say I need to train one team member that's green to do a very simple service.
514
00:28:39.860 --> 00:28:41.141
That's like step number one.
515
00:28:41.181 --> 00:28:45.446
I'd try to break it down for them that you could recon after each of the steps.
516
00:28:46.868 --> 00:28:49.711
One of them might be reading a book like Leadership Training and Tactics.
517
00:28:50.372 --> 00:28:53.374
And then like, hey, let's read this together one chapter a week.
518
00:28:53.815 --> 00:28:55.076
Easy peasy, lemon squeezy.
519
00:28:55.596 --> 00:28:58.959
At the end of the chapter, we'll recon on it together and figure out what we learned.
520
00:28:59.139 --> 00:29:01.420
We, not you, we learned together.
521
00:29:02.221 --> 00:29:09.767
And we'll make sure how we can identify, make sure we identify the areas that you can apply that to your leadership style.
522
00:29:10.990 --> 00:29:11.210
Right?
523
00:29:11.530 --> 00:29:17.754
So this becomes the classic, you know, leading a leader is very different than leading a technician.
524
00:29:18.615 --> 00:29:25.980
And so it's a very different skill and you will have to invest a lot into people and then they will break your heart because they will leave after you do all the training.
525
00:29:26.660 --> 00:29:27.961
Well, as long as it's for better.
526
00:29:29.117 --> 00:29:29.297
Yeah.
527
00:29:29.557 --> 00:29:37.520
So like even this week, I think I got three or four or five, I think, I forget, four of them are going down and we're sending them all out to Dallas for some leadership training.
528
00:29:37.680 --> 00:29:38.200
It's not cheap.
529
00:29:38.620 --> 00:29:40.961
It'll cost me six to $7,000 per person.
530
00:29:41.702 --> 00:29:47.264
But I know that the highest leverage you have in the business is better leadership.
531
00:29:47.844 --> 00:29:56.247
Because if they have six, eight, 10 people that they're managing, and they all get 10% more efficient, that's the best six to $7,000 you'll ever spend in your whole life.
532
00:29:56.967 --> 00:29:57.167
Right?
533
00:29:57.467 --> 00:30:02.308
So the time that right now you might not be spending that kind of money on like getting leadership training for them.
534
00:30:02.768 --> 00:30:12.691
But what you are going to spend on is time and ideally doing during your slow season, you go through things like a book, you figure out what are the benchmarks before you become this position?
535
00:30:13.071 --> 00:30:14.591
What do we need to do to get there?
536
00:30:14.811 --> 00:30:16.252
And what needs to change in behavior?
537
00:30:18.237 --> 00:30:19.718
And then spend – it's going to take time.
538
00:30:19.738 --> 00:30:20.359
That's what it's going to do.
539
00:30:20.379 --> 00:30:22.501
It's going to be you working with him on his skills.
540
00:30:23.182 --> 00:30:27.786
And as long as you come to the position of we are both trying to fight the enemy.
541
00:30:27.866 --> 00:30:30.628
The enemy is there are things preventing you from getting this position.
542
00:30:31.109 --> 00:30:33.851
And together, we're going to figure out how you can get there.
543
00:30:33.871 --> 00:30:35.313
Right.
544
00:30:35.333 --> 00:30:38.435
Instead of like you need to do this in order to get a promotion.
545
00:30:38.535 --> 00:30:38.736
Right.
546
00:30:39.704 --> 00:30:40.506
It's just not, I get it.
547
00:30:40.986 --> 00:30:41.547
I appreciate it.
548
00:30:41.567 --> 00:30:43.190
That's a great different tactic to take it to.
549
00:30:43.210 --> 00:30:47.217
Cause I feel like I definitely do like, Hey, I want to pay you more money, but like this isn't happening.
550
00:30:47.717 --> 00:30:48.278
Yeah.
551
00:30:48.398 --> 00:30:49.300
So I appreciate that.
552
00:30:49.480 --> 00:30:49.781
Absolutely.
553
00:30:49.841 --> 00:30:50.061
All right.
554
00:30:50.221 --> 00:30:50.702
I love you all.
555
00:30:51.043 --> 00:30:52.505
Hope you have a fantastic rest of your weekend.
556
00:30:52.565 --> 00:30:56.912
I do have to bounce to another call, but I will see you on the mastermind and on the Facebook group.
557
00:30:57.153 --> 00:30:58.395
But I appreciate you all tremendously.
558
00:30:58.775 --> 00:31:02.421
Cheers to another year of Copa at the last one before we go to homeworks.
559
00:31:02.962 --> 00:31:03.723
But I love you all.
560
00:31:03.844 --> 00:31:04.825
And I appreciate you all.
561
00:31:04.985 --> 00:31:05.266
Take care.
1
00:00:00.111 --> 00:00:01.372
Hey everyone, it's Mike Andes.
2
00:00:01.452 --> 00:00:05.076
I'm the founder of Augusta Lawn Care, where we have over 200 locations around the world.
3
00:00:05.616 --> 00:00:11.462
And I'm the founder of HomeWorks, software built for home service business owners to grow without breaking.
4
00:00:11.843 --> 00:00:16.287
And today I'm actually talking to members of HomeWorks instead of our annual momentum call.
5
00:00:16.467 --> 00:00:20.331
We're doing Q and A, and we're gonna be talking about how you can grow your home service business
6
00:00:20.871 --> 00:00:31.426
scale up your marketing channels to actually be able to dump money on one specific platform, how to test that platform, and just all other questions revolving around how to grow your home service business.
7
00:00:31.746 --> 00:00:34.590
Without any further delay, let's go ahead and roll the tape.
8
00:00:35.391 --> 00:00:37.014
Where do you see Copilot in a year?
9
00:00:38.316 --> 00:00:39.897
Yeah, well, it won't be called co-pilot.
10
00:00:39.937 --> 00:00:40.817
It'll be called homeworks.
11
00:00:41.717 --> 00:00:42.457
That's the first thing.
12
00:00:42.938 --> 00:00:52.501
The second thing I would say is a lot of features that we're working on just a lot clearer in how they affect sales operations and admin.
13
00:00:53.021 --> 00:01:02.644
So from an operations perspective, like next week you're gonna see save routes come out and like there's a lot of work going on to the dispatch board, especially when you start doing a huge volume of recurring visits.
14
00:01:03.564 --> 00:01:07.746
On the sales side, instant quotes is gonna be very important to us as well as the price book.
15
00:01:08.306 --> 00:01:18.130
So those are two big things that in 2026 we're working on to be able to to build out a quote very quickly without having to use like a spreadsheet or calculator or anything like that.
16
00:01:18.270 --> 00:01:25.293
And then behind the estimate have all the components of the job, both their cost and their price to the customer on the back end.
17
00:01:25.613 --> 00:01:25.773
So.
18
00:01:26.393 --> 00:01:29.396
By doing that, we'll be able to do a much better job of job costing.
19
00:01:29.756 --> 00:01:32.758
Because right now, you can do job costing, but it's at the job level.
20
00:01:33.259 --> 00:01:39.444
The ability to be able to build out an estimate where I put in there, okay, a foot of pipe cost me a dollar and I charge $3.
21
00:01:39.584 --> 00:01:48.211
If I can then have all the components of the job, including labor, materials, all being created for you, I can tell you exactly what you're going to make in terms of profit on the job.
22
00:01:48.691 --> 00:01:48.892
So...
23
00:01:49.572 --> 00:01:53.774
Sales, that's operations, more of the dispatch, kind of the organization side.
24
00:01:53.994 --> 00:01:56.875
From the admin perspective, a lot of it is this honestly design.
25
00:01:57.035 --> 00:02:05.459
Even for like behind me at Augusta here, during the spring rush, we'll have about 70, 80 people on the phone doing admin every day.
26
00:02:05.839 --> 00:02:14.283
If I can just save everyone one second, one less click, one less getting distracted by something that shouldn't be popping up at the wrong time, that's really important.
27
00:02:14.783 --> 00:02:20.625
And so our goals, like you'll see a lot of things, even like the unscheduled work and waitlist that just came out.
28
00:02:20.985 --> 00:02:21.946
It looks a little bit different.
29
00:02:22.046 --> 00:02:23.306
Like the filtering looks a little different.
30
00:02:23.326 --> 00:02:23.987
It's a little cleaner.
31
00:02:24.407 --> 00:02:27.368
Those are the type of little changes from an admin perspective we're really focused on.
32
00:02:27.748 --> 00:02:35.431
And that's just like the overall tightening of the design so that someone that you drop into the system can learn it much faster because it's more intuitive.
33
00:02:35.871 --> 00:02:40.133
So, for example, the one of the pages I hate the most is like the customer list page right now.
34
00:02:40.393 --> 00:02:41.653
Tons of filters at the top.
35
00:02:41.713 --> 00:02:43.614
There's a lot of buttons, a lot of things happening.
36
00:02:44.074 --> 00:02:49.056
We can change that design to where it's very intuitive to when you get in there like, oh, I can very quickly find the service I want.
37
00:02:49.376 --> 00:02:54.657
I can very quickly find the zip code or if they're currently on service or if they have a pause service.
38
00:02:55.037 --> 00:02:56.478
Those are the type of things that we can just...
39
00:02:56.998 --> 00:02:57.498
make better.
40
00:02:57.899 --> 00:03:10.828
And so a lot of what we're doing in 2026 is just making what is there better, faster, easier to navigate, but then also building some tools that I think will really help with sales, especially instant quotes and the price book.
41
00:03:11.148 --> 00:03:16.432
And then secondly, from an operational perspective, a lot of scheduling stuff, things around like multi step routes, etc.
42
00:03:16.472 --> 00:03:18.753
There's a very long answer to your very short question.
43
00:03:20.054 --> 00:03:22.156
But I appreciate it nonetheless for breaking the ice.
44
00:03:22.777 --> 00:03:24.117
All right, let's go ahead and Jacqueline.
45
00:03:24.137 --> 00:03:28.019
Hey, a question for you, for our context.
46
00:03:28.099 --> 00:03:33.980
So we're a seven 40,000 business nine years coming.
47
00:03:34.300 --> 00:03:46.324
Generally it's stuck in profit mode for the last three years and tweaking and building, I have had great intentions of getting P4P and have failed every year for three years now.
48
00:03:46.645 --> 00:03:48.305
but we converted to co-pilot last year.
49
00:03:48.325 --> 00:03:53.587
And our problem has gone, we're a multidisciplinary service.
50
00:03:54.387 --> 00:03:55.507
And that's where we get stuck.
51
00:03:56.108 --> 00:04:03.930
And that crossover and diversity, as we were like the one's 33%, irrigation tech would be, you know, 40%.
52
00:04:05.585 --> 00:04:10.830
But then we control is like 20% where we tried the software and we couldn't have it.
53
00:04:10.850 --> 00:04:12.892
We, we haven't tackled it again.
54
00:04:12.912 --> 00:04:16.515
No, we tackled in spring and it was with co-pilot transition.
55
00:04:16.535 --> 00:04:19.538
We just said, Hey, we're going to fix it later.
56
00:04:19.778 --> 00:04:19.918
Yep.
57
00:04:20.319 --> 00:04:25.323
The good thing is you did the hardest part, which is the switch to co-pilot now making the P4P part will be way easier.
58
00:04:25.343 --> 00:04:25.704
Yeah.
59
00:04:26.084 --> 00:04:34.133
And so how you can make this work, Jacqueline, is inside of your items and services of Copilot, you can adjust the rate that is just for P4P.
60
00:04:34.534 --> 00:04:39.580
Now, what's nice about that is it doesn't change anything inside Copilot or your billing or invoicing.
61
00:04:40.060 --> 00:04:45.446
So you could just simply move that number to make sure that it corresponds with the correct service.
62
00:04:46.047 --> 00:04:47.609
and move that number up or down, the rate.
63
00:04:48.109 --> 00:04:57.700
So if you go to item and services for weeding versus mowing versus all these other things, there's a separate line in there just for the sink to P4P, and it's the rate for P4P.
64
00:04:58.985 --> 00:05:00.967
Oh, in the SKU.
65
00:05:01.668 --> 00:05:02.068
Correct.
66
00:05:02.568 --> 00:05:03.930
Right, right in the item and service.
67
00:05:04.250 --> 00:05:06.512
And so that way it's to just sync up.
68
00:05:06.552 --> 00:05:09.455
So we built that just for this one reason.
69
00:05:09.495 --> 00:05:13.038
And that is people have different rates and different percentages for different types of services.
70
00:05:13.678 --> 00:05:16.561
If you manipulate that number, it'll come across to P4P correctly.
71
00:05:18.226 --> 00:05:19.047
Was that always there?
72
00:05:19.487 --> 00:05:20.167
Yeah, it was.
73
00:05:20.187 --> 00:05:21.008
Okay.
74
00:05:22.008 --> 00:05:24.289
Well, I guess spring rush happens, right?
75
00:05:24.530 --> 00:05:27.231
Oh, I couldn't solve that, I guess, at the time.
76
00:05:27.251 --> 00:05:32.834
It's not super intuitive because what everyone thinks is that the rate and the P4P rate should be the same, right?
77
00:05:33.014 --> 00:05:33.274
Yeah.
78
00:05:33.434 --> 00:05:37.016
And theoretically, theoretically, if all your percentages was, you would be.
79
00:05:37.556 --> 00:05:37.916
I wish.
80
00:05:37.956 --> 00:05:44.160
But yeah, but you can just move that number up and then it'll move over inside P4P, like it'll adjust on P4P.
81
00:05:44.800 --> 00:05:46.381
Okay, so that is easier to handle.
82
00:05:46.422 --> 00:05:47.342
It has been built with.
83
00:05:47.603 --> 00:05:47.803
Okay.
84
00:05:47.923 --> 00:05:48.804
Okay, good.
85
00:05:48.984 --> 00:05:53.568
It's not going to be perfect because you are kind of inflating what looks like your hourly rate is.
86
00:05:54.249 --> 00:05:57.552
So that could throw some of your reports slightly off.
87
00:05:57.872 --> 00:06:02.116
But in terms of the actual how much are they earning, all that will come across clean.
88
00:06:02.396 --> 00:06:07.621
I'll also say once you try that out and you're going to be like, oh, what about this, this, and this, book a call with Layelle.
89
00:06:08.381 --> 00:06:09.682
You can do it even if you're not a member.
90
00:06:09.722 --> 00:06:12.945
Just go sign up, go to support and put a call with her.
91
00:06:13.245 --> 00:06:15.506
And she'll just be like, oh, yeah, just change just one or two things.
92
00:06:15.526 --> 00:06:16.707
Your percentages can change here.
93
00:06:16.987 --> 00:06:22.531
Or, for example, some of your team members might mostly be on mowing or mostly be on weeding.
94
00:06:22.992 --> 00:06:26.794
She'll just say, hey, the user level, change out those percentages, and we can make it cleaner.
95
00:06:27.035 --> 00:06:27.355
Okay.
96
00:06:27.675 --> 00:06:30.716
Hey, everyone, real quick, I just wanted to make a shout out.
97
00:06:31.056 --> 00:06:35.098
This call that you're watching right now is actually what we call our momentum call at Copilot.
98
00:06:35.158 --> 00:06:40.159
It's one of the calls that we have every year with all the members inside of Copilot.
99
00:06:40.560 --> 00:06:45.461
And so if you ever thought about joining Copilot or switching softwares, I highly recommend doing it right now.
100
00:06:45.481 --> 00:06:47.022
This is the best time of year to do it.
101
00:06:47.642 --> 00:06:55.327
and we are really interested in helping you grow your business, not just have software and make a bunch of, a box of features and have you on a subscription and lock you into a contract.
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We don't do that.
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We have a guarantee that you'll grow your business or your money comes back to you.
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And in order to do that, we make sure we have these calls where you go over your goals.
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We actually have a goal session.
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and a planning session.
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And the entire first year is full of calls with support to be able to make sure you grow your business, both in revenue and in profits.
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So if you've considered joining, go check out copietserum.com, book a call with Christian.
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He's our head of sales.
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He also used to be my personal trainer.
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He's a great guy and he'll see if joining Copiat is the right fit for your business.
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All right, James, I believe is up next.
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Hi, how are you doing?
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Good.
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How are you doing?
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Doing well.
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Um, so last year we had kind of an interesting year with,
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marketing uh we primarily did direct mail and door hangers it's done pretty good for us in the past last year between direct mail and door hanger could probably put out about 3 000 to 3 000 residents and we got like five maybe ten calls off of all that and there were some things i changed in the marketing but i'm just curious what's like a good call rate for marketing
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Yeah.
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So are you all door hangers that you did the 3000?
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Door hangers and postcards.
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Okay.
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So do you know of the 3000, how many were door hangers and how many were postcards?
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Postcards is about 1500.
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Okay.
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And of the six calls that came in, how many of them were from postcards and how many were for door hangers?
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It was a pretty even split.
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Okay.
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So you have a one in 500 hit rate, uh, in terms of response rate for, as a blended average.
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That's a good starting point.
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Most people don't even come up with a number.
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Because then it's a function of, I don't believe you are yet in a position to do more.
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So you have more, better, new.
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More would be, hey, this is working, let's go do more of them.
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I'd say go do 30,000 instead of 3,000.
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The problem is you can't do more because the math doesn't math when you're getting 1 out of 500.
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And so this is when better steps into play.
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And most people go think new.
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I don't think that because one of the 500 is a benchmark that I think you can eventually down the road increase that effectiveness by five, like five X. I didn't get to one out of 100.
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And then you start to have a real good marketing machine.
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Like, OK, if I can put out 100 of these an hour, that's one per hour.
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If I pay someone to do that, it's 25 bucks.
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But my print cost, that's $30.
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The cost per lead, $30.
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That'd be great.
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And so I would say this is actually a function of doing it better.
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And the reason I say that is because when we started doing door hangers at Augusta, our hit rate was very similar to yours.
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We've done 24 versions of the door hanger now to get it to where it is five times better.
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and in terms of like one out of a hundred as an approximation.
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So to get there, though, it'll mean like, okay, now next year when you do 3,000, let's do 1,500 of them that have instant quote, and let's have 1,500 of them that don't have instant quotes, like the actual price of the job.
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And then you can, again, do another with 1,500.
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All right, 1,500 that have a QR code, 1,500 where they write in their email address and their phone number.
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These are the type of things that you start split testing to get to where –
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the exact same number of door hangers will produce five times more results.
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That makes sense.
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The one thing we did change that year was we did switch over to, it wasn't exactly an instant quote, but we had like a starting rate listed on the door hanger.
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We've never done that before.
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And so I'm wondering if it was just kind of a turnoff for people.
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Because we haven't seen it.
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Yeah, we have not seen that move the needle in terms of conversion.
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I'll just like test this.
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So when you say starting at, they basically think of that as, oh, that's the lowest price.
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I'm only going to be higher than that, which unfortunately when it comes to numbers, higher is infinite.
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And so they think – like if they say starting at $50, oh, I'm probably $80 or $90.
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Well, they could very well be $50.
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And so I would highly recommend James, like this doesn't sound promotional, but like check out lawncaremedia.com.
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Don't even have to buy the door hanger.
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Just go to that one.
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That was one of our, like I think our 15th version that we used Augusta.
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We've now customized a little bit more because we have the command center to be able to do some cool stuff with in terms of instant quotes and collecting card information.
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But you could start there with a design of like, okay, I know that just doing that design will double the amount that you're getting from door hangers.
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Compared to like doing a starting at number, if you have a QR code on it, it'll also improve the conversion, not in how many people respond, but in the legibility of the information.
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Because when they write on it, it messes up.
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To some degree.
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I also know that if I offer more than one service, I will increase the conversion rate.
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Because now I might swing out, swing and miss on a mowing service, but because I put a property cleanup price on there, I get some percentage of people on that.
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So you can get that conversion way improved just by doing more.
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That's why I'm happy that you tracked it.
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Because if you track it, then you can improve on it and split test and see what works.
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And then you're going to be like, okay, I tried that in my market.
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It actually got worse.
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Oh, yeah.
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hey, don't do that.
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Let's do the opposite of that.
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And so it'll take you a while, but like, I would not give up on any channel when it's like, is it good?
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Is it bad?
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It's like, how well did you do it?
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How many did you do?
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How long did you stick to it?
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How many iterations did you like?
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There's so many more questions I'd have to ask, right?
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Right.
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Like if I, if I, if I was giving away lawn care service, I'd probably get a pretty good hit rate, regardless of whether or not that door hanger worked or not.
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If I just said, everything is free forever.
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We get a great hit rate, you know?
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And then one more question, if that's okay.
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Yeah.
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Well, things have been pretty tight throughout the last five years.
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And one of the things we keep running into kind of off of your like 4L framework is we have a lead problem, but it's kind of caused because of a liquidity problem.
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We don't have the money for marketing.
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So we're kind of stuck in this loop of where we can't market enough to get the liquidity, but we don't have the liquidity to market.
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So how would you suggest kind of breaking out of that?
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Yeah, so if you don't have money, i.e.
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liquidity to get leads, the question becomes how do I get leads without spending money?
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There are a few things you can do.
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One is you can do things that require time instead of money.
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For example, like door hangers where for $50 you can get 1,000 plus of them and go out and put them like yourself.
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So first step would be I go spend time instead of money because I don't have money.
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And especially when you're slow, like there's no reason but not to go out and do that.
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The second thing would be, are you extinguishing all other aspects of marketing that don't require money?
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I.E.
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upselling, cross selling, talking to existing customers, emailing and texting them additional offers.
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Those are the things that you could double the size of your business and keep the same number of customers and never get a new lead next year.
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So one of our locations at Augusta, I just went through there.
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We have their, we pulled their metrics.
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I looked at their numbers from last year versus this year.
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Their profit doubled.
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Number of customers went down by 10%, and they didn't raise prices.
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They simply took the existing customers they had and just sold more stuff to them.
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So their annual ticket, the average annual ticket of each customer or average annual value went up by like 40%.
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They got better at sending text messages to the customer of spring and fall cleanup.
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And on average, people accepted one of them.
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On average, that was $600.
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That increased the average ticket by more than 40% because if they just mowed their lawn, it was like $800 to $900, right?
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So I would first, for example, do you send a monthly email blast to all the customers inside of Copilot?
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No.
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Step number one, completely free.
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Are you an enterprise right now, James, or lower?
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No.
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Enterprise, yeah.
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Okay.
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You have free text messages right now.
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Eventually, we're going to have to charge for it.
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Either free to text your customers.
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How many contacts do you have in your database?
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Probably about 800.
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Let's go.
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So we bought the business from a guy who failed as a business owner.
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We bought it with a bad reputation and tried to turn it around, which was a bad move on my part.
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So a lot of those customers don't like us.
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Did you change the name of the business or not?
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No.
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Okay.
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And these other customers, let's assume that out of 800, 600 of them had a bad experience.
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How many of them know that the business, the ownership changed?
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We did send out an email.
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I don't know how many people saw it.
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This was four or five years ago.
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Yeah.
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So like four or five years ago, no one knows remembers.
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They don't care.
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They don't think about you.
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They don't think about your business.
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If this was four months ago, I'd give some weight to it.
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But even then, people just don't remember.
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So I would highly recommend thinking of all these people's cold, cold traffic.
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Honestly, they don't remember who you are.
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Um, half the text messages are going to bounce.
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Half the emails are going to bounce, but I would definitely be doing an email and text message.
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And even if you have, do you have them segmented James, but like the ones that were bad, like that you kind of burned, they, he burned kind of by date, if that makes sense.
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Yeah.
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Yeah.
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Effective.
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Yeah.
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Cool.
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So I would send all of them an email.
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I'd make that one much more graphical.
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You can put embedded video inside of the email builder of Copilot.
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And I would explain why you, what you've done over the past four or five years to change the reputation of XYZ business.
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We've done this.
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We've done this.
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We've now have a software.
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We know how we answer our phones.
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We have reviews.
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Here's a bunch of them.
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We have our money back guarantee.
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We do all these things now that are different.
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And so if you got burned in the past, I'm sorry about that.
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And when I purchased this business, I didn't know that.
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But I promise if you're willing to come back and give us a try, we're going to over deliver for you.
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And then the people that have no idea about that old one, you're going to address with an offer for a service that's required at this time of year.
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So I, in my opinion, like when I hear 800 customers, and let's just call, let's say 500, 500 or 600 of them are the old, old people, 200 or 300 new people.
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All right, two to three hundred new people, when we go into spring, we're going to get them on a spring cleanup early in the year prior to when everyone else is calling us.
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Like four to six weeks before the phone starts ringing off the hook, we're going to email and text two to three hundred people that have already done business with you in the past few years and they like you.
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You're going to email them all and you're going to text them all in a very personalized fashion saying, hey…
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It's James over here at XYZ Lawn Care.
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Would love to do service for you this time of year because we get really busy in a couple months, but as a valued customer, I'd like to give you priority.
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I'll give you a quote tomorrow if you like it.
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Sound good?
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That will convert.
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Text and email.
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And then to the other 500 people, you're gonna do the first route, which is, I'm sorry if you're experiencing the past, here's all the things we've changed.
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Make a video and embed that on your email and do a link inside of a text message to all of them otherwise.
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My GMs are not allowed to spend one single dollar on marketing until they have text and email every single other customer.
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And they don't spend money on marketing because of it.
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And it's free, James.
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It's free.
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Just do it.
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Just do it.
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Cool.
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Good stuff.
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All right, Bob, go ahead.
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Mike, thanks for the invite, man.
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Yeah, absolutely.
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Been following you for a long time here.
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And I want to thank you for creating P4P.
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I got to say, I heard Jacqueline, I think it was Caleb, talking about implementing it.
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I implemented it three years ago.
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Completely changed the business for the positive.
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Couldn't mention being in business without it.
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You and me both.
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Awesome.
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But that said, I want to share one of the biggest wins for this year.
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No doubt was the stability of the team.
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We had the lowest turnover ever.
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We turn over to one guy on May 20th.
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The following day we were able to hire somebody and the team has been solid since it's awesome.
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And I guess the question I have is how do we keep it this way?
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You know, we're, we're not, you know, we're, we're an eight person company and yeah,
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Right now, like I said, before P4P, we weren't profitable.
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I never really knew how that felt.
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We have been.
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I want to keep the people here, but we run a very flat, lean organization where there's literally no mid-level management.
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How do we keep them there?
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00:18:38.583 --> 00:18:40.364
How do we keep them motivated?
326
00:18:40.504 --> 00:18:43.487
You get the wheelchair and you get the crib.
327
00:18:43.647 --> 00:18:44.247
Same situation.
328
00:18:44.287 --> 00:18:44.587
Let's go.
329
00:18:44.607 --> 00:18:45.888
I would say...
330
00:18:48.461 --> 00:18:50.322
This is when the trinity of the trades comes into play.
331
00:18:50.342 --> 00:18:52.884
So that's P4P, open book management, and profit sharing.
332
00:18:53.484 --> 00:18:53.704
Right?
333
00:18:53.925 --> 00:18:56.226
So have you done open book management and profit sharing yet?
334
00:18:56.266 --> 00:18:56.486
Yes.
335
00:18:56.726 --> 00:18:58.087
We got quarterly profit sharing.
336
00:18:58.988 --> 00:19:02.330
Last quarter, everybody was eligible.
337
00:19:02.750 --> 00:19:02.970
Cool.
338
00:19:03.030 --> 00:19:03.270
Awesome.
339
00:19:03.591 --> 00:19:06.713
So I think you have in place what would be –
340
00:19:07.513 --> 00:19:12.074
I would say is a maximized form of one location.
341
00:19:12.234 --> 00:19:16.655
Like you have all your team incentivized on their daily as individuals.
342
00:19:17.095 --> 00:19:21.595
You have them incentivized from a team perspective and the business from a profit sharing perspective.
343
00:19:22.016 --> 00:19:26.836
The only other way to, if you're thinking about your team and keeping that way is to create levels in the business.
344
00:19:27.376 --> 00:19:30.437
And if you're like, that doesn't serve my needs, then don't do it, right?
345
00:19:30.677 --> 00:19:35.898
And it's like where the book, like there was several times I'm like, I should not write this book because most people should build the business you've just built.
346
00:19:36.518 --> 00:19:38.718
And just keep optimizing it and be very happy.
347
00:19:38.858 --> 00:19:53.281
And so if that's not in the cards, which it doesn't need to be, just realize the hardest part for you is going to be now, Bob, is you built a great team, you're making money, but then you're going to lose people that stay with you for a few years and they just got to move on to something else.
348
00:19:54.021 --> 00:20:03.163
And so what I would do is I would take the first seven stages of success, you could basically rip it straight off, the first seven stages, and then realize that...
349
00:20:04.003 --> 00:20:08.087
you might lose some people to the next stage of their career because they outgrow your business.
350
00:20:09.028 --> 00:20:14.953
But that's something to be celebrated given the fact that you know you're only offering half the latter.
351
00:20:15.453 --> 00:20:22.400
And so you instead, when someone leaves a different company and goes to construction, or they go to oil or do something in college, you celebrate that with the team.
352
00:20:22.580 --> 00:20:28.225
And if you do, they'll actually believe you when you say you want them to get them to the next stage of their career, even if that means leaving the company.
353
00:20:28.645 --> 00:20:35.532
And so before we had the GM track, before we had the owner track, and we had the other 14 stages, we would celebrate when people left the company.
354
00:20:35.852 --> 00:20:40.516
Assuming they were moving on to something bigger, better, they're going to make more money, educate themselves more.
355
00:20:40.797 --> 00:20:44.420
And so make it all about the learning and getting the next stage of their career.
356
00:20:44.820 --> 00:20:48.564
And they'll just realize the people that get through all the stages and they'll have to jump.
357
00:20:49.418 --> 00:20:49.858
And that's okay.
358
00:20:50.298 --> 00:20:51.379
So take the seven stages.
359
00:20:51.439 --> 00:20:55.620
I would probably, if I was you, Bob, change the sixth and seventh one to be things that take a little bit longer.
360
00:20:56.040 --> 00:21:03.082
You could also adjust P4P to where when they hit like a seventh stage of success for a technician, that their percentage on P4P goes up.
361
00:21:03.323 --> 00:21:08.384
You just change that one number on P4P, be like, hey, you go from 25 to 28 or 30 or whatever.
362
00:21:08.644 --> 00:21:16.827
You could bake in some compensation there, but usually people leave if they're an A player, mostly because of opportunity, other skills they want to, goals they have.
363
00:21:17.107 --> 00:21:23.313
And that is something to be, in my opinion, celebrated if they're moving on to something bigger that you can't offer.
364
00:21:23.653 --> 00:21:23.993
Very good.
365
00:21:24.174 --> 00:21:24.414
Thanks.
366
00:21:24.814 --> 00:21:25.295
You got it, brother.
367
00:21:25.375 --> 00:21:26.276
Congrats on all the success.
368
00:21:26.836 --> 00:21:27.477
All right.
369
00:21:27.637 --> 00:21:29.839
JRCNC Landscaping.
370
00:21:30.139 --> 00:21:30.540
Go ahead.
371
00:21:30.720 --> 00:21:31.040
Hey, Mike.
372
00:21:31.100 --> 00:21:31.621
How are you?
373
00:21:31.841 --> 00:21:32.581
Big fan of you.
374
00:21:34.160 --> 00:21:36.402
So this is where I am right now.
375
00:21:36.682 --> 00:21:38.824
So we're going to be around last year.
376
00:21:38.844 --> 00:21:42.286
We did about seven and change to 750.
377
00:21:43.147 --> 00:21:44.968
This year I'm being conservative.
378
00:21:45.268 --> 00:21:50.091
We still got to do some some cleanups, a second round of cleanups, fall cleanups.
379
00:21:50.111 --> 00:21:51.572
We just got snow here in Mass.
380
00:21:51.752 --> 00:21:55.435
We won't be able to got to wait for that to dry out to melt away.
381
00:21:55.595 --> 00:21:56.876
But this is where I am.
382
00:21:56.936 --> 00:21:59.337
I want to implement the P4P for next season.
383
00:21:59.477 --> 00:22:02.038
But we do the way we try to do.
384
00:22:02.078 --> 00:22:03.899
We try to do the control growth.
385
00:22:04.159 --> 00:22:04.839
You know what I mean?
386
00:22:04.859 --> 00:22:10.522
So, like, we try to be profitable and try to keep everything running smoothly.
387
00:22:11.162 --> 00:22:12.923
We're around 192 clients.
388
00:22:13.303 --> 00:22:15.884
My foreman makes $30 an hour.
389
00:22:16.225 --> 00:22:17.945
The next guy makes $26 an hour.
390
00:22:19.541 --> 00:22:26.483
The guy below him, 25, and then the most cost-effective guy is 23.
391
00:22:26.563 --> 00:22:30.984
Where do I – everything is so high.
392
00:22:31.224 --> 00:22:35.786
Where do I go from there?
393
00:22:35.866 --> 00:22:37.666
You might not know this number, and that's fine.
394
00:22:38.426 --> 00:22:43.708
When you look at last year's revenue, the 750, do you know what your wages were on that?
395
00:22:44.634 --> 00:22:44.874
Yes.
396
00:22:45.495 --> 00:22:45.775
Okay.
397
00:22:45.795 --> 00:22:46.535
Do you know this?
398
00:22:46.555 --> 00:22:53.580
So overall, for everything, we're around $360,000 for everything, for all of them.
399
00:22:53.940 --> 00:22:57.963
The same guys that I have now is the same guys that we had last season.
400
00:22:58.423 --> 00:23:00.364
Does that include your pay, the $360,000?
401
00:23:00.424 --> 00:23:01.325
No, it does not.
402
00:23:01.365 --> 00:23:02.506
No.
403
00:23:02.686 --> 00:23:03.346
Just themselves.
404
00:23:03.606 --> 00:23:06.548
What percentage of your day is spent in the field versus not?
405
00:23:07.008 --> 00:23:07.269
100%.
406
00:23:08.109 --> 00:23:10.551
Oh, you're in the field producing revenue all the day.
407
00:23:10.571 --> 00:23:10.671
Yeah.
408
00:23:10.771 --> 00:23:10.931
Okay.
409
00:23:10.951 --> 00:23:15.495
So I'm going to go ahead and pretend like you're a field member and producing about $125,000.
410
00:23:15.515 --> 00:23:15.955
So $125,000.
411
00:23:15.975 --> 00:23:17.356
Yeah, just above.
412
00:23:17.436 --> 00:23:18.978
Okay, cool.
413
00:23:19.398 --> 00:23:26.223
So what we can therefore say is if we take your labor revenue out, the business made $625,000 with them.
414
00:23:27.824 --> 00:23:30.146
And now we're saying that we paid them $320,000 last year?
415
00:23:30.186 --> 00:23:30.426
Yeah.
416
00:23:30.446 --> 00:23:30.607
Yeah.
417
00:23:32.900 --> 00:23:42.347
So if we take $320,000, divide that out by $625,000, that means right now you're paying about 51% of total revenue to wages.
418
00:23:43.508 --> 00:23:43.888
Correct.
419
00:23:44.268 --> 00:23:47.710
And that's a little high, but for what I'm getting, you know what I mean?
420
00:23:47.811 --> 00:23:50.012
Yeah, I got you.
421
00:23:50.212 --> 00:23:51.473
This is what I would do.
422
00:23:51.833 --> 00:23:52.394
Totally.
423
00:23:52.434 --> 00:23:52.794
I agree.
424
00:23:53.174 --> 00:23:56.417
What I would then say is as long as you beat that number,
425
00:23:57.298 --> 00:23:59.099
We're going to win.
426
00:23:59.179 --> 00:24:00.880
In terms of there's only upside for you.
427
00:24:01.641 --> 00:24:07.244
And so I also know that that number is very high, and we can improve it dramatically with P4P.
428
00:24:07.605 --> 00:24:12.268
Because your efficiency score, if I had to take a stab at it, it's probably 60%.
429
00:24:12.288 --> 00:24:16.751
Yeah, and so that number can get well above 75% to 80%.
430
00:24:17.271 --> 00:24:23.735
And the delta of the increase in their efficiency, they can make more money, and you can make more money.
431
00:24:23.915 --> 00:24:24.296
And so...
432
00:24:25.036 --> 00:24:30.560
The next question becomes how do you do equitably when you have people at 30, 26, 23, 25, and all over the place?
433
00:24:31.401 --> 00:24:37.746
My question is of those four guys, are they all doing the exact same thing or is the guy that's doing $30, is he kind of like their manager?
434
00:24:37.886 --> 00:24:42.450
So he was the manager for those three guys, those two guys, I'm sorry.
435
00:24:42.490 --> 00:24:43.551
So it was a crew of three.
436
00:24:44.231 --> 00:24:48.435
So he used to manage the other two guys with him on one truck.
437
00:24:48.955 --> 00:24:50.156
I would take the other truck.
438
00:24:50.536 --> 00:24:52.898
He's a crew leader essentially, but he's been with you for a very long time.
439
00:24:53.358 --> 00:24:53.719
Correct.
440
00:24:54.159 --> 00:24:54.919
So this is what I would do.
441
00:24:55.380 --> 00:24:58.601
I would, because it sounds like you keep these guys for a long time.
442
00:24:58.621 --> 00:25:00.602
They're very loyal and you do not want to lose them.
443
00:25:01.102 --> 00:25:06.985
And so how I would pitch this to them is, hey, guys, I'm trying to figure out this P4P thing.
444
00:25:07.405 --> 00:25:10.067
I want to pay you the harder you work, the more efficient you are.
445
00:25:10.207 --> 00:25:11.307
And it's going to take me a little bit of time.
446
00:25:11.327 --> 00:25:13.088
I'm going to do some math on the back end.
447
00:25:13.528 --> 00:25:18.911
But I want to figure out a way where you can make more money if you get jobs done faster and if you're working quicker.
448
00:25:19.391 --> 00:25:20.392
But you're not going to go down.
449
00:25:21.152 --> 00:25:22.473
So you're going to protect their base pay.
450
00:25:22.913 --> 00:25:27.697
Now, in years to come, when you hire new people, we need to know what their base pay is going to be.
451
00:25:28.017 --> 00:25:29.959
And I'm going to go out on a limb and say it's around $23.
452
00:25:29.999 --> 00:25:31.259
I know your market pretty decently.
453
00:25:31.820 --> 00:25:35.623
$23 is probably what you need to be able to pay to get an entry level person that's half decent.
454
00:25:35.983 --> 00:25:37.484
So that could be your base pay.
455
00:25:37.904 --> 00:25:39.265
You have people above that.
456
00:25:39.565 --> 00:25:41.307
Now, if you had a larger team,
457
00:25:41.767 --> 00:25:47.230
I would probably say, and you have a few people above, you just say, hey, this is the base pay, and we're rolling, and you might lose one or two of them.
458
00:25:47.510 --> 00:25:48.571
In this case, you don't want to do that.
459
00:25:48.631 --> 00:25:49.531
That's your biggest fear.
460
00:25:49.831 --> 00:25:54.254
So what you could do is just have a different percentage on P4P based upon tenor.
461
00:25:54.874 --> 00:26:01.097
I am not a fan of this usually, but given the fact that these guys have been with you for a very long time, there's no one churning.
462
00:26:01.117 --> 00:26:02.518
You want to maintain these four people.
463
00:26:03.178 --> 00:26:03.679
I would say...
464
00:26:04.646 --> 00:26:08.468
Try to find the commonalities between what is different between 23, 25, 26, 30.
465
00:26:08.488 --> 00:26:13.790
I'm going to go on a limit saying it's something to do with tenor, like how long they've been with you.
466
00:26:14.350 --> 00:26:16.171
So, for example, you can say, hey, you start at 23.
467
00:26:16.551 --> 00:26:18.212
After one year, you're at 25.
468
00:26:18.452 --> 00:26:20.172
At 26, you could bake your base.
469
00:26:20.252 --> 00:26:23.574
Your base pay goes up on P4P.
470
00:26:24.134 --> 00:26:24.414
Okay.
471
00:26:24.434 --> 00:26:24.594
Yep.
472
00:26:24.874 --> 00:26:25.174
Awesome.
473
00:26:25.434 --> 00:26:26.835
I appreciate your help.
474
00:26:26.915 --> 00:26:28.496
Thank you for everything and everything that you do.
475
00:26:28.536 --> 00:26:29.436
Thank you, as always.
476
00:26:29.836 --> 00:26:30.677
Been nothing but great.
477
00:26:30.697 --> 00:26:31.437
Thank you for everything.
478
00:26:31.988 --> 00:26:32.368
You got it.
479
00:26:32.649 --> 00:26:33.169
All right.
480
00:26:33.189 --> 00:26:35.291
907, you've been gifted the final question.
481
00:26:36.652 --> 00:26:37.673
Oh, I appreciate that.
482
00:26:38.093 --> 00:26:39.174
It's a really quick and easy one.
483
00:26:39.835 --> 00:26:42.037
I've got a guy who I think is awesome.
484
00:26:42.137 --> 00:26:43.618
He does an amazing on P4P.
485
00:26:43.778 --> 00:26:44.939
He's great by himself.
486
00:26:45.540 --> 00:26:48.122
His problem comes with mentoring the new guys.
487
00:26:48.142 --> 00:26:49.984
He can definitely be a bit snippy with them.
488
00:26:51.085 --> 00:26:56.630
Every year he says he wants to move into this management position, but then every single year we have the same issue.
489
00:26:57.490 --> 00:27:06.316
And I end up taking it back just to, you know, I don't want to lose my best producer, but at the same, and how do I find the balance and do I, what can I do to lead him out of that?
490
00:27:06.336 --> 00:27:09.598
Or, you know, the biggest question is, does he see this as an issue?
491
00:27:10.303 --> 00:27:15.166
Yeah, he definitely, every time we've spoken about it, he hits the reflection and he recognizes it.
492
00:27:15.286 --> 00:27:19.689
He's also amazing at coming back the next day and being like, look, I was definitely out of line yesterday.
493
00:27:19.989 --> 00:27:21.050
So he definitely sees it.
494
00:27:21.330 --> 00:27:24.672
But I would say it is getting better, just not good enough fast enough.
495
00:27:24.692 --> 00:27:27.233
We're probably 90% amazing, 10% a problem.
496
00:27:27.273 --> 00:27:29.835
But, you know, in the middle of spring rush, you can't have that happen.
497
00:27:30.175 --> 00:27:32.837
So the best thing is he knows it's a problem, right?
498
00:27:32.857 --> 00:27:35.919
If someone doesn't know it's a problem, it always ends ugly.
499
00:27:36.099 --> 00:27:38.741
They think they're doing just fine, and you're like, nope, you're not doing good.
500
00:27:39.121 --> 00:27:42.384
It almost always leads to being fired because they want this position.
501
00:27:42.584 --> 00:27:43.404
You say no.
502
00:27:43.444 --> 00:27:44.325
They want this position.
503
00:27:44.445 --> 00:27:46.947
You say no, and eventually they get frustrated, and they leave.
504
00:27:47.547 --> 00:27:54.973
So the fact that he knows and recognizes it's a problem allows you to be able to have a conversation around, I want you also to have this management position.
505
00:27:54.993 --> 00:27:55.373
Right.
506
00:27:55.653 --> 00:28:00.614
We both understand there are certain limitations that you have that are preventing you from getting this position.
507
00:28:01.294 --> 00:28:06.996
Let's team up on this together and figure out what we can do to make sure you get this position.
508
00:28:08.016 --> 00:28:12.317
And then together you brainstorm and you try to get him to say as much as possible of the things that need to change.
509
00:28:13.617 --> 00:28:16.038
And then you get to step up and be like, okay, great.
510
00:28:16.993 --> 00:28:21.679
I can help you give you a roadmap to how to make those changes happen.
511
00:28:22.139 --> 00:28:29.848
So in your back pocket, you would probably wanna have certain things of what you're gonna tell him, and benchmarks of success.
512
00:28:30.209 --> 00:28:33.372
So for example, instead of saying, okay, you're the general manager,
513
00:28:33.993 --> 00:28:39.199
I would say I need to train one team member that's green to do a very simple service.
514
00:28:39.860 --> 00:28:41.141
That's like step number one.
515
00:28:41.181 --> 00:28:45.446
I'd try to break it down for them that you could recon after each of the steps.
516
00:28:46.868 --> 00:28:49.711
One of them might be reading a book like Leadership Training and Tactics.
517
00:28:50.372 --> 00:28:53.374
And then like, hey, let's read this together one chapter a week.
518
00:28:53.815 --> 00:28:55.076
Easy peasy, lemon squeezy.
519
00:28:55.596 --> 00:28:58.959
At the end of the chapter, we'll recon on it together and figure out what we learned.
520
00:28:59.139 --> 00:29:01.420
We, not you, we learned together.
521
00:29:02.221 --> 00:29:09.767
And we'll make sure how we can identify, make sure we identify the areas that you can apply that to your leadership style.
522
00:29:10.990 --> 00:29:11.210
Right?
523
00:29:11.530 --> 00:29:17.754
So this becomes the classic, you know, leading a leader is very different than leading a technician.
524
00:29:18.615 --> 00:29:25.980
And so it's a very different skill and you will have to invest a lot into people and then they will break your heart because they will leave after you do all the training.
525
00:29:26.660 --> 00:29:27.961
Well, as long as it's for better.
526
00:29:29.117 --> 00:29:29.297
Yeah.
527
00:29:29.557 --> 00:29:37.520
So like even this week, I think I got three or four or five, I think, I forget, four of them are going down and we're sending them all out to Dallas for some leadership training.
528
00:29:37.680 --> 00:29:38.200
It's not cheap.
529
00:29:38.620 --> 00:29:40.961
It'll cost me six to $7,000 per person.
530
00:29:41.702 --> 00:29:47.264
But I know that the highest leverage you have in the business is better leadership.
531
00:29:47.844 --> 00:29:56.247
Because if they have six, eight, 10 people that they're managing, and they all get 10% more efficient, that's the best six to $7,000 you'll ever spend in your whole life.
532
00:29:56.967 --> 00:29:57.167
Right?
533
00:29:57.467 --> 00:30:02.308
So the time that right now you might not be spending that kind of money on like getting leadership training for them.
534
00:30:02.768 --> 00:30:12.691
But what you are going to spend on is time and ideally doing during your slow season, you go through things like a book, you figure out what are the benchmarks before you become this position?
535
00:30:13.071 --> 00:30:14.591
What do we need to do to get there?
536
00:30:14.811 --> 00:30:16.252
And what needs to change in behavior?
537
00:30:18.237 --> 00:30:19.718
And then spend – it's going to take time.
538
00:30:19.738 --> 00:30:20.359
That's what it's going to do.
539
00:30:20.379 --> 00:30:22.501
It's going to be you working with him on his skills.
540
00:30:23.182 --> 00:30:27.786
And as long as you come to the position of we are both trying to fight the enemy.
541
00:30:27.866 --> 00:30:30.628
The enemy is there are things preventing you from getting this position.
542
00:30:31.109 --> 00:30:33.851
And together, we're going to figure out how you can get there.
543
00:30:33.871 --> 00:30:35.313
Right.
544
00:30:35.333 --> 00:30:38.435
Instead of like you need to do this in order to get a promotion.
545
00:30:38.535 --> 00:30:38.736
Right.
546
00:30:39.704 --> 00:30:40.506
It's just not, I get it.
547
00:30:40.986 --> 00:30:41.547
I appreciate it.
548
00:30:41.567 --> 00:30:43.190
That's a great different tactic to take it to.
549
00:30:43.210 --> 00:30:47.217
Cause I feel like I definitely do like, Hey, I want to pay you more money, but like this isn't happening.
550
00:30:47.717 --> 00:30:48.278
Yeah.
551
00:30:48.398 --> 00:30:49.300
So I appreciate that.
552
00:30:49.480 --> 00:30:49.781
Absolutely.
553
00:30:49.841 --> 00:30:50.061
All right.
554
00:30:50.221 --> 00:30:50.702
I love you all.
555
00:30:51.043 --> 00:30:52.505
Hope you have a fantastic rest of your weekend.
556
00:30:52.565 --> 00:30:56.912
I do have to bounce to another call, but I will see you on the mastermind and on the Facebook group.
557
00:30:57.153 --> 00:30:58.395
But I appreciate you all tremendously.
558
00:30:58.775 --> 00:31:02.421
Cheers to another year of Copa at the last one before we go to homeworks.
559
00:31:02.962 --> 00:31:03.723
But I love you all.
560
00:31:03.844 --> 00:31:04.825
And I appreciate you all.
561
00:31:04.985 --> 00:31:05.266
Take care.
