$5M in Snow Removal - Coaching Stefano Narducci

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Everything needs to become dummy proof.
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Everything that you know in your head, everything you've learned, has to have a system.
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This is where it is much different than your business, is like everybody's under a lot of pressure, and so nobody can handle this business.
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Hey everyone, it's Mike Andes.
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I'm the founder of Augusta Lawn Care.
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We have over 200 locations around the world.
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I'm also the founder of HomeWorks, where we process over a million dollars of revenue every day for home service business owners.
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Today's a different episode for my channel.
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I'm actually going to be doing coaching one-on-one in this studio for a large operator that does over $5 million in annual revenue doing snow plowing.
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Now, he's at a crossroad because he's trying to take the business to the next level.
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He wants to get to $100 million.
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We're going to talk about what are the stages from $5 million
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to 100 million.
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We're gonna think about national expansion, a lot of franchising and licensing and a whole lot of other things.
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That's the first half.
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The second half though is going to be relevant to everyone.
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We're gonna talk about price increases, increasing the average customer value, improving the upselling process for his current operations and reducing his sales cycle.
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These are things that every single home service business owner can learn from.
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So without any further delay, let me introduce you Stefano Narducci from Ontario, Canada.
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From your experience, how should I decide between franchising, a private corporate owned chain, M&A, buying existing companies, licensing my brand and systems, and what signals tell you which road is right for a founder and what must be true before committing?
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I would just work backwards for your goal.
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So ultimately, your goal can kind of stem also around how long you want to do it.
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So if you're like, hey, I want to be doing this for 10 years and sell it.
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Well, that's very different than how I would recommend based upon that goal.
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And so, for example, franchising like I've done, I would not recommend it to anyone that's like, yeah, I want to scale this for five years and I want to exit for as high a multiple as possible.
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I would not recommend franchising.
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If someone's like, I want to do this for next 40 years, very different route we pick.
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Right.
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And so it really comes down to the goal.
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Like if the goal is maximization of money too, like it's also a thing to figure out.
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I was like, are we trying to maximize money?
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Are we trying to maximize impact in the industry?
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Are we trying to maximize the number of people we hire?
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Are we trying to maximize control?
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Like the thing that we're trying to maximize, we need to know what we're trying to solve for first.
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Impact in the industry.
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Okay.
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So impact is important.
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How long do you think you're going to be doing it?
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I want to say that I think I'd be very interested, and I could feel in my heart that I could see myself doing this at least until I'm 50.
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I'm 25 now.
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That's the long term.
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It's not like you're like, hey, I want to scale this thing and sell this private.
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No, I'm here for a long time.
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I mean, we opened a software company, Tractor Boys.
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We started around being in the business model.
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We've substantially grown in Northern, and of course, I want to take it as far as I can.
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Mm-hmm.
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for as long as possible.
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Like I, I don't really see an, an end road.
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Like I would just keep going until maybe it makes sense to bring on like a whole team of different people that I could work alongside with and maybe go more to a, you know, backend decision maker.
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But for the content that I make and for how much I'm really passionate about the business, I could see myself doing it for like forever.
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Okay, cool.
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So we basically have a few different options.
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One is going to be, we scale by corporate expansion.
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Expansion.
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Then we have franchising.
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Should be able to see that there, cool.
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Franchising.
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Then we have something like a licensing.
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I'm gonna put licensing slash community on this.
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Because I think you could kind of make it more of a community too.
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So when you look at this,
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which one kind of pulls you in a certain direction?
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Like for example, I know like a year ago you were thinking more corporate expansion plus M&A.
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which is doing a bunch of mergers and acquisitions and creating the biggest snow company in the world.
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Pretty much.
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Cool.
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Has your thought process changed over the past little bit?
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Are you still thinking that way?
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Because it's also a matter of you might not 100% know, and that's fine.
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I can kind of give you the pros and cons of what I think for all three of these, but as you look at it now, knowing what you know, which way are you kind of pulling yourself towards, you think?
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Knowing what I've, you know, heard and learned from others, I really am leaning towards the corporate expansion, M&A.
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However, like, I just don't know the differences between everything enough, and I don't know based on where I'm currently at with the media and how I've built Northern.
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I almost want somebody that's in a way further and higher position than I am and that has kind of been through this process to be like, this is what I think makes sense for you, okay?
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So I'm telling you right now I'm committed.
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Mm-hmm.
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I'm in it for the next however long, like 10, 20, 30, 40 years, however long it takes.
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And what does it take?
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I mean, for me, the first goal is just getting to $100 million.
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I really want to get to $100 million.
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Once we get to $100 million, I'm sure we'll just move the goalpost to $1 billion because that's what everybody does.
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But I want to make an impact.
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I want to make an impact in particularly the residential space because that's where all my knowledge is.
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But I want to focus on a subscription model.
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I want to be known as the home service based business that you could go to to take care of your snow and lawn care.
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But without diverse like diversifying too much, like I don't want to go to a point where we're doing all these different things.
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I just want to cut grass and blow snow.
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And I've done it really well in St. Marie.
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And I know that there's specific markets that we could go and do that.
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Now, I know if we go to the wrong market, we'll have a harder time.
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We'll need more up sales in the summer.
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We'll need to provide more different things.
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I just want to get good at those two things.
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I know that the summer side might call for some more attention.
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Maybe we might have to get into doing some weed spraying and fertilizing, reoccurring services like that, which I'm okay with.
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If the market calls for it, we'll do it.
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But based where I grew up in Sault Ste.
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Marie,
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You need your snow blown, and you need your grass cut.
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Nobody cares about anything else.
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What percentage of your current year 5,000 snow do you do lawn care on, like mowing?
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Uh, 700 last year.
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This, this year we're, we're planning to go to a thousand.
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That's my goal for the company.
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Got it.
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So I want to take it to a thousand and it's not new customers.
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It's the same customers.
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Yeah.
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Yeah.
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Yeah.
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Cool.
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Which just goes to show you the difference.
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Crazy.
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Yeah.
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What's the, um, when you're doing the MNA stuff, have you looked into multiples and like what those look like when you, if you were to buy out other companies?
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Not really, no.
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I mean, my plan was to just kind of go after these smaller companies that are just copying and pasting mine right now.
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Going to see them and saying, hey, I want to have a majority stake.
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We're going to do all the back end pretty much via command center or headquarters.
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We're going to do all the finances, the marketing, the sales, the software.
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And all you guys got to do is operate the company.
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So hire the guys out in the field, make sure it's running operationally, make sure the mechanics and everything are all up to pace.
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And when we got to go for snow events or you got to go and cut grass, just make sure the operation component of the business is getting taken care of.
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We'll do all the backend and looking at it like a 60, 40 split, 70, 30 split where we own a majority to make the decisions, but they still own the company as well.
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And it's our brand.
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I feel like ownership drives a lot of value and a lot of motivation, um, you know, for, for the business owner.
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Yeah.
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Yeah.
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Okay, so I will give you my opinion because you'll get other people giving you your opinion.
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If that's your goals, I would strongly recommend not going that path where you get either minority, even majority stake ownership in a business and then they still own the business.
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That would just be straight franchising because you need them all skin in the game if they're going to operate to your level.
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There's no way they're going to get through last winter if they own 40% of the business.
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They want to own the whole thing.
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So franchising is the world.
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If that's what you're wanting to do, where you're like, hey, I want my brand, I want my system, my softwares, I want everything done my way, and you're going to wear my brand.
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As soon as you say, you wear my brand, you're basically a franchise.
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In most states.
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And I'm assuming you eventually go to the US.
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So like,
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It's kind of like W-2 in the US versus 1099 contractors.
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As soon as you tell them, wear our uniform and show up at this time, and use our tools, you're basically, this is an employee, this is not a contractor.
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The same thing is true when it comes to franchise law.
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It's like, as soon as you say, wear this uniform and you must use these requirements, that's where it's essentially becomes a franchise.
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And if you start saying you're a licensor,
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which is like, hey, you can use our brand and you pay us a certain royalty.
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Fine.
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But as soon as you start saying you must wear these uniforms, you must use this software, you've got to do this.
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When you start making requirements, you become a franchise very quickly.
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And right now they're making a huge push legally to get licensors to become franchisees or franchisors because it's kind of like the whole employee versus subcontractor thing.
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it's way easier.
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Like, there's way less legal tape without licensing.
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It's basically like, hey, Northern Snow, here's all the things that you get.
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You get our ads, you get our software, you get plugged in our backend.
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You can scale that so fast and then they can just use their own brand name.
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So Billy Bob Snow, like, okay, great, yes, I want to pay you $2,000 a month, and I'm going to be plugged into your backend software, all your systems, all your training, all your ads, all you do with your operations.
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You're going to take a lot of the phone calls off my plate, charge me a per minute rate.
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Cool.
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That'd be the easiest and fastest route to make money.
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I bet you could get 20 to 40 people to do that in a year, and that is don't change your brand.
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We take over a lot of the back end stuff for you.
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We get a cut of it or a flat monthly fee, and you can keep your own name.
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That's a licensed model.
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That's Jim Launch.
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That's what Jim Launch did.
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Jim Launch, yep.
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Right?
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And so I think that's the fastest route to make money.
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If you want control, though, and you're like, I want our brand on the truck, on tractors.
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I want to be able to consolidate a lot of buying power.
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I want to be able to have uniforms on the guys.
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And the brand of Nord & Stove becomes big.
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Kind of like A1.
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That's franchising.
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well A1 you talking about Tommy yeah Tommy like from a regional perspective is relatively small because he's gone corporate expansion he owns 100% of it he owns every dollar of revenue I think he has private equity involved but like
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They own that revenue.
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But the expansion rate is so much faster if you say, hey, can I get 20 people to start their own location tomorrow?
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Because if you go one by one by one, you will be in 20 years, let's just say, 20 to 30 locations.
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And you'll be doing fantastic.
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You'll probably hit a million to 100 million doing that strategy.
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But that's the hardest, longest road.
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I don't know if it's the hardest.
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I think that it is not taking advantage of your biggest asset, which is your media.
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And so that's what we want to tap into, because if I could tell you one thing that I could see myself doing forever is that I found a really good stride in that.
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It's like.
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I just love it.
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Like I have a really good time doing it.
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It's so effortless to me.
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And I could see myself just pushing that agenda.
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So I want to scale the business around that.
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That was the whole point of making the media company.
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You know, it wasn't about, well, it was about sharing the journey as an entrepreneur.
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It definitely was about that.
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And just, hey, showing off some of the things that I know and look at me scale my business.
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And these are the things I know and take them, take them away.
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And I always did a mix of entertainment in there too.
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So that's why it always kind of stuck.
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And, yeah, then once it started gaining traction, I really seen the opportunity of being like, wow, this is how I'm going to scale the business because I'm going to get attention through this.
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I'm going to find other companies that I could acquire and or merge with, partner with, franchise, whatever.
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I didn't know which route to take to scale, but I knew that this tool was going to help me get there way quicker.
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Yeah, I think the thing that when I look at corporate expansion that it doesn't do is it's not tapping –
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So no tap into moat.
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So I think that the moat and the thing that is the most, your unique selling proposition is you have media.
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And if you went corporate expansion and you went mergers and acquisitions, you would drive deal flow from the content.
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But again, maybe 1% of your audience is in the markets that you would actually want to first target.
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So it's such a delayed gratification.
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It'd be like probably 15 years before you're...
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targeting all the north of the US and all of Canada to where you could actually fully utilize the impact on the media.
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Whereas tomorrow, if you said, hey, if you have $50,000 and you're able to have, be able to get two tractors, you can get started with the franchise,
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you could potentially have 20 locations next year.
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And so the franchising, I think, might be, and I don't know if I've ever said this, but someone might be the move for you.
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Why do you say it like that, though?
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Because it's the hardest.
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It's so hard.
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Because I heard you on Tommy Mello's podcast.
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It was a good podcast, and this was one of the questions I did have for you was like,
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If you were to rebuild Augusta, how would you do it?
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Based on what you know now.
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If you were to rebuild it.
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Because if you were to tell me that, that's going to help me more than anything.
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Because if you're telling me to take the franchise route, I know there's some points along the journey where you're like, I wish I would have built this differently.
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And I could say the same about my business for other things that I wish I would have done.
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I would have established the moat sooner.
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The moat now is...
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things that are hard to replicate.
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And that's where you always struggle when you're first getting franchising is because why should they join Northern Snow?
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Culture is disgustingly hard to replicate.
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Right.
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Also, culture replicating in their business when they're the leader, hard.
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That's what I'm saying.
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Yeah, that's the most difficult thing.
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I was told that by Dan when I explained to him because last year when I went to go see him in the summer, it was the same thing.
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It was like, Dan, I want to scale outside of Sault Ste.
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Marie.
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And Acquisition.com, same thing.
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I want to scale outside of Sault Ste.
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Marie.
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The advice from Acquisition.com
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So verse, the advice I got from Dan was completely different.
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Dan explained to me that you as a leader and as a culture driver need to go to each of these locations if you plan on doing them, whether it's franchising or owning the whole thing.
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And you got to instill your culture and all your procedures manually in person because it's different than just doing it over a camera, over a phone or et cetera.
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Like you need to actually go and do it boots on the ground.
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That was his advice, which I was shocked to hear that.
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But it makes sense from a cultural perspective, you know?
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And then the advice I got from acquisition.com was nail it before you scale it.
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And if you want to go the old school Panda Express route, I mean, like, go for it.
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You could do it.
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But it will take an extremely long time.
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And I think the thing that I'm focused on there, because I would agree for 99% of people that say I want a franchise, I say don't do it.
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I just say go the Panda Express route.
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The reason that 99% of them, I say that to you, is they don't have an audience.
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And right now you have nothing to give your audience.
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Like, unless they don't want to come work for you.
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I have so many people who want to come work for us.
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Right.
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So many people who want to start a business.
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I actually have people asking me, like, hey, like, pretty much in so many words, can I just work with you guys and, like, copy and paste it in my hometown?
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Like, it would work.
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Right.
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And so that's where, like, I think the franchising model could work.
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The downside that no one sees is they just think they're going to, like...
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put up this franchise disclosure document, pay 100 grand for legal fees, and start selling licenses.
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And that's somehow done.
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Once you enter franchising, it's a different business altogether.
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It has nothing to do with snow.
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It has nothing to do with tractors.
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It has nothing to do with maintenance.
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It has nothing to do with repairs.
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It has everything to do with owner psychology and training them as leaders.
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And that's the part you actually, you switch businesses.
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Like here, you don't see any lawn care stuff.
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No.
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There's no grass, right?
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We don't even, we're in the business of grass.
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My life changes too from a media standpoint.
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Everything changes.
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And everything you say now on the media will be picked apart.
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Because inevitably when you have a franchisee, they're not going to do it as good as you.
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There's not.
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No matter how many systems you give them, no matter how many things that you give them in place that you know you needed and didn't have and therefore you failed, they will take the exact same system that you know works and mess it up.
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Because they're not you.
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And then guess who they will blame?
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You.
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Yeah.
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And so the reason that most franchisors get into a whole bunch of legal disputes is because every single time a franchisee fails, they are always going to point at the franchisor.
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100% of the time.
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If anyone fails in side-tracism, they will blame you.
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So you're saying it's the role, but it will change my life, the way I go about business, and the content.
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Seriously.
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Yes.
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And the way you build your current one location.
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Yeah.
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Because you are no longer in that game.
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Yeah.
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And so, like, when I went to franchising, I was like, oh, like, this location is going to cut out a ton of services.
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We're going to simplify this like crazy.
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I'm going to have cut revenue by 30% to 40% so that I can step out of this and never come back in this door.
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And so it changes the whole way you think about the business.
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And furthermore, when you start franchising or even licensing, you have to ask yourself, okay, you're a 10 out of 10 entrepreneur in the snow space.
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Most people that are going to franchise are not going to be you.
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They're going to be a seven or an eight.
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Awesome.
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Nothing bad against that.
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But you've got to make them operate at 10 because that's what they expect.
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And so the challenging part becomes how do you make it dummy proof?
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I feel like the stress too and like just how difficult the winter is, like I'm going to be really to blame.
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You know what I mean?
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Because when their customers are coming down, the equipment's not working and they're experiencing those difficult times in a time crunch too.
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This is where it is much different than your business is like –
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everybody's under a lot of pressure and nobody has patience and nobody can handle this business.
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Hence why nobody's really scaled it too big.
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Right.
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But invert that because I think the biggest, the biggest weakness of the industry is actually the biggest strength as to why franchising is important.
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Cause the biggest reason people fail in snow is because of lack of community and the biggest advantage of a franchise is the community because there's one thing to be part of a Facebook group or a course or a mastermind.
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But the moment you all wear the same brand, the level of camaraderie and culture goes to the roof.
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Yeah, yeah.
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I see what you're saying.
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And so now when they're in a Facebook group with someone that says, hey, you should do this or hey, keep your head up.
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Like, keep going.
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I'm struggling too.
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The level of like togetherness and family is so different than even just like a mastermind or a course or a Facebook group.
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Even if they're competing with each other, like they're right next to each other.
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But like they wear the same uniform.
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It's like we are on the same team.
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And so that level of camaraderie is usually the lack of thereof is why people quit in the snow season.
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Like they're alone, they're wasted, they're just like, I'm done.
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In that moment is when you actually need a community to pick you back up.
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Like, hey, no, keep your head in the game.
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You got this.
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And this happens with Augusta.
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It's like, hey, we'll send you a truck.
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We got you.
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So now all of a sudden, maybe someone only has three tractors, they have four tractors worth of work, someone helps them out.
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That is the stickiness of the community.
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And it's like the Buffalo.
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They figured out we've got to stay in packs, and when there's enemy, we all put our butts together and we face out.
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And that's what happens in a franchise that I think is the actual reason people should join.
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Oh, then I'll, I know I could be extremely successful because that's the one thing I have on lock is that right there.
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Yeah, I agree.
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I agree.
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I have that on lock, the culture, the camaraderie, the way the business runs and just being able to get in that many guys at that.
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I don't want to say it's not that low of a pay, but it is not much money if you don't have any other income.
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If you're doing snow removal and you have another income.
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um then you can make good money working with us but if that's your only income it's not anything crazy and to be able to have these guys show up at those times and go for days on end you need a very sticky and toxic culture you'd have great leaders around the energy's got to be there and you'd be be able to support your men and doing that on a franchise level i could see myself doing very successfully yeah i'm just very worried about changing my path of content
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A lot of people ask me how we scale Augusta Lawn Care to over 200 locations around the world.
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And one of the bigger reasons was our website.
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Now, if you don't have a website, you'll never be able to have premium pricing or have a premium service in your market.
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If you want to go to homeservicewebdesign.com slash call, my team will spend 15 minutes with you making sure your website is dialed in so you can get more customers.
349
00:20:07.100 --> 00:20:10.542
Let's assume for a second we're going to franchise around because we can deviate from it in a second here.
350
00:20:10.622 --> 00:20:12.043
But that's what you're stuck on.
351
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That's what you want.
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I don't think it's what I want.
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I think that it checks the boxes that you're wanting.
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Cause like you like the, I think that your strongest point is your ability to have community, like build community.
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And I actually don't think most people have that.
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That's the easiest thing for me.
357
00:20:25.658 --> 00:20:25.858
Yeah.
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Being a leader and building a community is just like second nature.
359
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Yeah.
360
00:20:29.921 --> 00:20:37.546
And like realizing when people need pushed, when people need a little bit of love, when people need to be ignored, when people need to be propped up.
361
00:20:38.747 --> 00:20:40.449
That's actually, I think, the skill that you have.
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And I recognize that in very few people.
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And they don't know what they're getting into franchising because they think they're going to get a legal piece of document.
364
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The person now gets access to the brand.
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They come for training for one week and I'm good to go.
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And that franchise will never win.
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Most franchises never get to 100 locations, and therefore 90% plus of them go out of business.
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Franchisors.
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And the problem is, this is the huge liability you have in franchising.
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If you do that, and then you don't win, your content's a huge risk.
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Because now you have a whole bunch of people that are going to come after you.
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And so this is where you burn the boats.
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This is where franchising is like you go all in.
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It's not like, let's start a school community.
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It's like, I am going 110% into this.
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That's why I went and slept in the closet.
377
00:21:23.869 --> 00:21:35.035
It's like everything gets burned because every penny goes right back into infrastructure to build the moat, which the moat is like, yeah, it's the community, but no one puts value in the community when they do want to franchise.
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Once they're in, they realize that, and I know that's the reason that will keep them from quitting.
379
00:21:40.138 --> 00:21:42.239
But the moat, for them, their perspective is going to be like,
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00:21:42.999 --> 00:21:44.360
Better financing from Kubota.
381
00:21:45.260 --> 00:21:53.745
Like if you can get in, like when we have preferred vendors, I know I can save them 25% and save more than what they pay in the franchise fees just in preferred vendors.
382
00:21:54.225 --> 00:21:55.746
You can do that because now you have buying power.
383
00:21:55.966 --> 00:21:58.408
Yeah, with Kubota, I'm the only brand partner in Canada.
384
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The only brand partner.
385
00:21:59.788 --> 00:22:03.190
And so if you say, hey, look, if you do it yourself, it's going to cost you this month.
386
00:22:03.210 --> 00:22:06.132
If you get five tractors or more, you're paying for the fees.
387
00:22:07.017 --> 00:22:07.978
Like, why would you not do this?
388
00:22:08.378 --> 00:22:14.082
Oh, and we build your website, and we do all of your ads, and this becomes just, again, you are trying to build a business in a box.
389
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And you're trying to take every single point of failure and solve the problem for them.
390
00:22:18.925 --> 00:22:19.926
So it becomes dummy proof.
391
00:22:20.447 --> 00:22:26.271
Because you have figured out a lot of things that you don't even know need to be solved yet in the business because you're an entrepreneur, and like a 10 out of 10.
392
00:22:26.851 --> 00:22:29.553
And so you just glazed over like my website stuff or the software stuff.
393
00:22:29.593 --> 00:22:31.294
You just glazed over it because you're so good.
394
00:22:31.754 --> 00:22:34.996
What happens is you get seven or eight in there, you've got to make them successful.
395
00:22:35.336 --> 00:22:37.638
And so you'll see where all the bottlenecks that they hit up against.
396
00:22:38.218 --> 00:22:44.042
So for example, for us, it's like, there are people that will be great leaders in managing team, but they can't get 100 customers.
397
00:22:44.402 --> 00:22:45.623
The first 100, they stink at it.
398
00:22:45.883 --> 00:22:46.804
It's like, we're rolling this thing out.
399
00:22:46.824 --> 00:22:50.566
It's like, hey, you pay $20,000 and we guarantee you 100 recurring customers.
400
00:22:50.786 --> 00:22:51.847
We will run all of your ads.
401
00:22:52.047 --> 00:22:53.028
We will do all of the sales.
402
00:22:53.208 --> 00:22:54.930
We do instant quotes and sales over the phone.
403
00:22:55.050 --> 00:22:55.230
Why?
404
00:22:55.250 --> 00:22:59.734
Because I know that a lot of landscapers are not going to be great presenters and salespeople in person.
405
00:23:00.475 --> 00:23:06.220
So we take all these constraints and bottlenecks out, and then you build a moat that no one else can replicate.
406
00:23:06.661 --> 00:23:08.643
That's the part that in the long term you build...
407
00:23:09.637 --> 00:23:10.278
huge scale with.
408
00:23:10.978 --> 00:23:17.484
And those are things like a call center, software, repeatable processes that no one else can tap into.
409
00:23:17.784 --> 00:23:19.585
I think the thing that is unique about your media...
410
00:23:19.605 --> 00:23:22.108
I feel like I have so much of those on a small scale already.
411
00:23:22.128 --> 00:23:22.528
Right.
412
00:23:22.548 --> 00:23:24.510
And I think the thing about your media, it compounds it.
413
00:23:24.570 --> 00:23:32.597
So, for example, if you're able to say, hey, when you join the franchise, you get access to this roster of people that are signing up every single day from my content that want to be operators.
414
00:23:32.617 --> 00:23:33.177
Right.
415
00:23:33.257 --> 00:23:36.058
So like I just solved the biggest constraint for you, which is finding great operators.
416
00:23:36.078 --> 00:23:37.358
That's the hardest part of this business.
417
00:23:37.478 --> 00:23:39.099
And you want to know why we have the easiest part?
418
00:23:39.399 --> 00:23:41.079
I mean, you want to know why it's the easiest for us?
419
00:23:41.219 --> 00:23:41.699
The content.
420
00:23:41.860 --> 00:23:42.060
Right.
421
00:23:42.120 --> 00:23:42.540
Simple.
422
00:23:42.580 --> 00:23:50.682
Like we get, man, I get people who come from eight hours south of Toronto just to drive up to be like, I just want to work with this company.
423
00:23:51.022 --> 00:23:53.023
You guys gave me the opportunity to work as an operator.
424
00:23:53.103 --> 00:23:53.703
I just moved here.
425
00:23:53.883 --> 00:23:54.023
Yeah.
426
00:23:54.483 --> 00:23:57.244
Or I brought in, you know, example, Gio.
427
00:23:57.284 --> 00:24:02.765
He worked with Amazon and Ajax, and he came in, and he's been absolutely exceptional, and he's seen the content.
428
00:24:02.805 --> 00:24:06.205
My GM and partner that I brought in, he wouldn't have came in if it wasn't for the media.
429
00:24:06.805 --> 00:24:08.246
The media was what got him sparked.
430
00:24:08.386 --> 00:24:11.766
He's like, oh, that is going to take this way further than where we are.
431
00:24:11.786 --> 00:24:20.448
And so by having the content that stays even more entertainment, for example, you have a huge audience that you might get thousands of operators that...
432
00:24:20.588 --> 00:24:22.391
Now sign up, because now you have the distribution.
433
00:24:22.411 --> 00:24:24.874
Let's say you get 10 or 15, 20 locations to get started.
434
00:24:25.395 --> 00:24:30.282
Now you have this network of, you can serve way more area, way more operators can be involved.
435
00:24:30.542 --> 00:24:35.509
And if you're able to solve that constraint of finding good operators, and then it's not like, hey, people applied.
436
00:24:35.529 --> 00:24:37.011
It's like, we actually have a system
437
00:24:37.612 --> 00:25:02.834
for making sure they're good we could put a funnel we could put a funnel in place just because i do have so many people ask all the time to operate comment and dm us hey like it can i can i come work for you from all over the world um which is just crazy to think about power media is insane we could capture all those people in a form get them in our you know ecosystem and then be able to be like hey uh you're in colorado you're a franchisor okay boom hey we got a list of four guys who came across the video
438
00:25:02.954 --> 00:25:04.174
They want to work and we've edited them.
439
00:25:04.214 --> 00:25:07.255
We got videos like this is what we do for general managers We're just rolling this out now.
440
00:25:07.575 --> 00:25:22.259
It's like we can run national ads Thousands of applications run them to a video where they have to answer certain questions And then we rank them and we have hundreds of a roster of 100 people hundreds of people that want to work as general managers Because the hardest thing about copy and paste is finding great general managers.
441
00:25:22.459 --> 00:25:24.660
So solve the constraint and so I
442
00:25:25.807 --> 00:25:33.297
The thing that you have done, you just have to ask yourself, if I was to give this to an 18-year-old version of myself that didn't have all the skills, what would I have to tell them?
443
00:25:33.337 --> 00:25:35.540
Because it can't take them six years to figure out what you have.
444
00:25:35.560 --> 00:25:37.223
They need to be able to figure that out in 12 months.
445
00:25:38.459 --> 00:25:57.238
and so you do as much of it as possible for them ads you have to have it nailed because they don't know how to run ads you got to have the website nailed like dialed in it's already done from day one like here's how you do your google ads here's how you do your facebook ads click this button it's done for you i wanted to do all the back end for them and all i wanted them to focus on was the people aspect yeah
446
00:25:57.878 --> 00:26:05.346
Um, and even that we could help with by giving them talent, um, which was hiring the operators, the training, which have done a really good job with our training.
447
00:26:05.646 --> 00:26:10.010
We have a three part process where we have somebody who's interested in working with us.
448
00:26:10.030 --> 00:26:10.791
They fill out our form.
449
00:26:10.951 --> 00:26:14.795
They do online training kind of like a, you know, like a Best Buy or something like that.
450
00:26:14.835 --> 00:26:15.956
They do their virtual training.
451
00:26:16.337 --> 00:26:18.779
Once they pass the virtual training, they come in for an in-person training.
452
00:26:19.039 --> 00:26:44.615
they redo a small subsect of that virtual training in person there's a classroom setting and then they get their hands-on feel in the tractor tons of procedure videos we've taken to be able to help them more with understanding the equipment we have a small training facility in our yard they go out there they get experience with no snow unfortunately but that's the only way of having them practice and that's it they're vetted just like that now we put that process in place and it's really good and it's we could definitely copy and paste it and it's
453
00:26:45.455 --> 00:26:49.697
After they do the virtual training, if they don't get a certain score, we don't even call them to do the in-person.
454
00:26:49.997 --> 00:26:55.439
So that kind of defeats all the lazy operators who just won't take 30 minutes to do an online course.
455
00:26:55.519 --> 00:26:55.679
Yeah.
456
00:26:56.059 --> 00:26:59.201
And I think, too, it's kind of like opposite of us.
457
00:26:59.221 --> 00:27:02.682
Like during our winter, we train all of our owners.
458
00:27:03.142 --> 00:27:09.685
So like what you could do to slow roll in this is during your six months off, that's when you have people coming out for training.
459
00:27:10.572 --> 00:27:11.973
You have groups of five or ten owners.
460
00:27:12.273 --> 00:27:13.694
You already have the shop space for it.
461
00:27:13.714 --> 00:27:15.475
So it's like day one, we're going over sales.
462
00:27:15.535 --> 00:27:16.835
Day two, we're going over hiring.
463
00:27:16.855 --> 00:27:18.416
Day three, we're going over operations.
464
00:27:18.776 --> 00:27:21.458
Day four, we're going over systems and software.
465
00:27:21.838 --> 00:27:23.359
And you just create a training.
466
00:27:23.459 --> 00:27:25.640
Everything needs to become dummy proof.
467
00:27:26.841 --> 00:27:30.122
Everything that you know in your head, everything you've learned, has to have a system for it.
468
00:27:31.623 --> 00:27:32.704
And it's not like...
469
00:27:33.916 --> 00:27:37.057
Conceptually, for example, people at Augusta are like, multiple locations.
470
00:27:37.257 --> 00:27:37.497
Great.
471
00:27:37.958 --> 00:27:42.360
We just sat down the other day, Nick and I, for hours and created, no, no, this is your budget.
472
00:27:42.380 --> 00:27:43.400
Here's exactly what you're going to spend.
473
00:27:43.420 --> 00:27:46.281
Here's day one, day two, day three, day two, day two, day 90.
474
00:27:46.761 --> 00:27:49.042
Here's a 30, 60, 90 for your general manager and for you.
475
00:27:49.282 --> 00:27:50.743
Here's the comparative notes you're going to have together.
476
00:27:50.763 --> 00:27:54.084
Like every single thing has to be dummy proof.
477
00:27:55.705 --> 00:27:57.027
And so it's just a different business.
478
00:27:57.367 --> 00:27:59.229
Yeah, I strive on processes.
479
00:27:59.249 --> 00:28:00.791
We have some strong processes in place.
480
00:28:00.811 --> 00:28:03.573
That's why we've kind of put ourselves in a category of one with our business.
481
00:28:03.593 --> 00:28:11.982
Like there's other businesses that have done what we've done, but they just spin their head 360 degrees being like, where the hell did you young kids come from?
482
00:28:12.142 --> 00:28:13.304
We've been doing this for 20 years.
483
00:28:13.324 --> 00:28:14.645
We scaled to 5,000 driveways.
484
00:28:14.665 --> 00:28:17.908
You guys did this in six years and your business looks way better.
485
00:28:18.549 --> 00:28:24.932
Well, media has something to do with that, but we actually strive on processes and culture and making sure that we're thinking in a human-first aspect.
486
00:28:24.972 --> 00:28:30.035
And how could we decrease the deficiencies and improve optimization?
487
00:28:30.115 --> 00:28:32.316
How could we get really, really, really quick out there?
488
00:28:32.696 --> 00:28:40.160
And your business, like that location, will get better by franchising in a way because you'll be forced to simplify things for your current operators.
489
00:28:40.700 --> 00:28:44.242
When you get operators who are no longer being taught by you, you'll have to make the training better.
490
00:28:45.442 --> 00:28:51.003
I did one thing right, Mike, is I knew that I wanted to scale this past Usain Marie right around 500.
491
00:28:51.423 --> 00:28:57.565
So every single thing I've done for the company, I've always thought in a mindset first of, is this scalable?
492
00:28:57.885 --> 00:29:04.126
If it's not scalable, then I don't give a **** to waste any time on it or I don't care to pursue it or I'm going to just think in a way different frame.
493
00:29:04.446 --> 00:29:06.287
So I have built a business around that, hence why…
494
00:29:07.592 --> 00:29:12.616
You've never seen probably a company that has scaled the $5 million from the home service space that just does snowblowing.
495
00:29:13.016 --> 00:29:15.538
We don't even do walkways, sanding, salting, nothing.
496
00:29:15.898 --> 00:29:17.199
Just snowblowing.
497
00:29:17.819 --> 00:29:25.104
Because I've seen that making sure that we really simplify the original location will make it a lot easier to scale.
498
00:29:25.705 --> 00:29:26.906
Or am I missing something there?
499
00:29:26.966 --> 00:29:27.406
No, you're right.
500
00:29:27.766 --> 00:29:31.789
I think, too, like... We cut grass, too, but that's it.
501
00:29:31.969 --> 00:29:32.990
We cut grass and snowblow.
502
00:29:33.090 --> 00:29:33.870
Like, it's simple.
503
00:29:33.930 --> 00:29:35.972
If you get to 10 locations in your first year...
504
00:29:37.380 --> 00:29:41.081
be super valuable because you'd be able also to generate revenue during your off season.
505
00:29:41.899 --> 00:29:46.822
So if you think about your current operation doing $5 million, it's going to take you a while to get there from a franchising perspective.
506
00:29:47.122 --> 00:29:51.225
But if you think it was like, hey, during those six months, I'm really focused on growing my team.
507
00:29:51.245 --> 00:29:52.146
I got my own stuff.
508
00:29:52.226 --> 00:29:52.886
It's a big business.
509
00:29:53.307 --> 00:29:55.188
But for six months of the year, I train people.
510
00:29:55.528 --> 00:29:56.189
I get them set up.
511
00:29:56.309 --> 00:29:58.450
I give them all the steps for setting up their bank account.
512
00:29:58.630 --> 00:30:02.273
It's all the little things that you don't even think about now that you have to now think about franchising.
513
00:30:02.833 --> 00:30:04.554
How do they set up their business license?
514
00:30:04.674 --> 00:30:05.955
How do they set up their taxes?
515
00:30:06.015 --> 00:30:09.918
How do they set up employee, like running payroll, all these little things.
516
00:30:10.478 --> 00:30:13.183
You just create the system for it, and then you plug people into it.
517
00:30:16.469 --> 00:30:20.697
I think if you could sell 10 in the first year, you would be able to scale pretty good.
518
00:30:21.278 --> 00:30:23.522
I think you're the first one I ever told the franchise.
519
00:30:25.035 --> 00:30:27.197
Dude, everything I've heard, you've told everybody not to.
520
00:30:27.217 --> 00:30:27.757
Yeah, yeah.
521
00:30:27.857 --> 00:30:32.681
I was coming here and I was like, I was expecting you to say the first thing is, yeah, you're not going to franchise.
522
00:30:32.701 --> 00:30:36.324
Yeah, no, because I think that you have the skill of community building.
523
00:30:36.484 --> 00:30:43.089
And then secondly, I think you have the unique selling proposition of a community and an audience to sell to.
524
00:30:43.529 --> 00:30:49.474
Because the alternative is you have to go sell your soul to private equity to be able to get the money required to go to brokers.
525
00:30:50.455 --> 00:30:51.876
And you don't need to because you have the content.
526
00:30:53.162 --> 00:31:02.405
Now, the thing that's challenging about the first 10 is you can't say you're gonna franchise without, like you can't advertise as a franchise until you have your franchise docs in place.
527
00:31:03.305 --> 00:31:09.447
So what stinks is technically you kind of have to put in like 50 to 100 grand before you can ever actually say we're franchising.
528
00:31:10.367 --> 00:31:20.310
Now, what you could do is sample your audience and say, hey guys, if I ever allowed you all to start your own Northern Snow, how many would you be interested?
529
00:31:21.310 --> 00:31:23.173
Get them on a call and just talk to them.
530
00:31:24.035 --> 00:31:25.157
Don't ever say the word franchise.
531
00:31:26.079 --> 00:31:33.332
But if you got 50 people and 20 show up and 10 of them you don't actually have the money and they have existing business that they're ready to convert over, you have a business.
532
00:31:34.219 --> 00:31:35.340
So that's what I do with Augusta.
533
00:31:35.521 --> 00:31:41.387
I just put a post up like, hey, if you want to join Augusta, if you want to be part of Augusta in what I'm doing, like wear my brand, let me know.
534
00:31:41.708 --> 00:31:43.830
I guesstimated that I think I could get 10.
535
00:31:44.271 --> 00:31:44.751
So I got nine.
536
00:31:45.372 --> 00:31:47.194
The very first training with nine people.
537
00:31:47.474 --> 00:31:50.478
And now I look back at that training like, oh my word, I don't know how they stuck around.
538
00:31:50.558 --> 00:31:51.139
Like it's crazy.
539
00:31:51.179 --> 00:31:51.279
Yeah.
540
00:31:53.113 --> 00:31:54.034
and that's how it would be.
541
00:31:54.474 --> 00:31:57.616
But if you can get 10, then you can actually dedicate time and resources.
542
00:31:57.636 --> 00:31:59.997
Because let's say they all give you 30 grand.
543
00:32:00.017 --> 00:32:02.779
300 grand during your off season is enough for you.
544
00:32:02.799 --> 00:32:09.084
But okay, I'm going to hire one person to really think about franchise operations, like a NIC, franchise owner success, all the time.
545
00:32:09.264 --> 00:32:09.904
That's all they're going to do.
546
00:32:09.924 --> 00:32:10.725
They're in the community.
547
00:32:10.985 --> 00:32:11.965
They're reaching out to owners.
548
00:32:12.146 --> 00:32:12.666
They're doing check-in.
549
00:32:12.686 --> 00:32:14.087
They're doing monthly coaching calls.
550
00:32:14.267 --> 00:32:15.128
They're running the metrics.
551
00:32:15.348 --> 00:32:16.889
They're doing everything franchise.
552
00:32:16.949 --> 00:32:18.670
You can hire that one person with just initial fees.
553
00:32:19.917 --> 00:32:24.038
And then you have the bandwidth during that, quote, off-season to now focus on that.
554
00:32:24.078 --> 00:32:25.738
Also, you don't make a lot of money on mowing.
555
00:32:26.198 --> 00:32:29.259
Just let that do passive, focus on the snow.
556
00:32:29.459 --> 00:32:32.340
But then during the six months during your summer, you're training people.
557
00:32:32.360 --> 00:32:34.020
They're coming out for discovery days.
558
00:32:34.320 --> 00:32:35.300
They're seeing the operations.
559
00:32:35.520 --> 00:32:39.181
Just think if you said, hey, if you're interested in joining the franchise, cool.
560
00:32:39.401 --> 00:32:40.401
Come out for a discovery day.
561
00:32:40.641 --> 00:32:43.562
See our whole operation during August, during July.
562
00:32:44.915 --> 00:32:49.098
And in that, you just have a built-in sales process for getting to become a franchisee.
563
00:32:49.438 --> 00:32:49.599
Mm-hmm.
564
00:32:50.079 --> 00:32:50.399
Simple.
565
00:32:50.759 --> 00:32:50.940
Yeah.
566
00:32:51.200 --> 00:32:57.204
Now, I'm going to get to my next question, and I need to make sure that I'm on the right path with this.
567
00:32:57.905 --> 00:33:02.528
I feel like doing a subscription route, too, would make a lot of sense, and I'll tell you why.
568
00:33:02.548 --> 00:33:02.768
Okay.
569
00:33:03.749 --> 00:33:14.218
So I've really, and this is just my, you know, procedure mindset going forward and me just having such a heart for the human aspect is right now we're a contract based business.
570
00:33:14.538 --> 00:33:17.881
And if I want to scale my model, I want to scale it the way that I know.
571
00:33:18.181 --> 00:33:19.582
And that's via contract based.
572
00:33:20.363 --> 00:33:24.385
Okay, so with the contract-based model, you have a six-month contract for lawn cutting.
573
00:33:24.626 --> 00:33:26.207
You have a six-month contract with snow.
574
00:33:26.807 --> 00:33:32.751
That six-month contract with snow only gets you up to a certain amount of centimeters blown from your driveway per year, and then you get into surcharge.
575
00:33:33.231 --> 00:33:41.876
Your contract for the summer is on a biweekly or weekly schedule, depending on what you pick, and that'll only get you a certain amount of cuts in that six months.
576
00:33:42.336 --> 00:33:46.819
Outside of that, cuts will be charged additionally, and yeah, that's just pretty much it.
577
00:33:47.019 --> 00:33:47.540
Super simple.
578
00:33:47.560 --> 00:33:48.160
Okay.
579
00:33:49.626 --> 00:34:01.351
I spend, as of right now, close to almost a whole year, I want to say three quarters of the year, nine months, I have two or three sales agents renewing customers for the next winter.
580
00:34:01.851 --> 00:34:02.692
That's a bottleneck.
581
00:34:03.152 --> 00:34:04.372
It costs me a lot of money.
582
00:34:05.613 --> 00:34:08.174
We're not focusing on customer support and nourishment enough.
583
00:34:08.494 --> 00:34:13.797
There's not enough income, even with the price increase, to be able to get more people.
584
00:34:14.457 --> 00:34:17.098
to bring on for support and customer success and nourishment.
585
00:34:17.138 --> 00:34:17.898
They're just not.
586
00:34:18.458 --> 00:34:24.039
And we're locking really, really hard because all of our internal team is going towards renewing these customers.
587
00:34:24.379 --> 00:34:27.720
And it's simple things like, hey, I just want to call to renew.
588
00:34:27.920 --> 00:34:31.780
And yes, we could capture a lot of that through the software, but a lot of these people are old school.
589
00:34:32.080 --> 00:34:33.041
They want to come in.
590
00:34:33.241 --> 00:34:34.681
They want to renew for the winter.
591
00:34:34.721 --> 00:34:36.201
They want to come in person and pay.
592
00:34:36.241 --> 00:34:39.942
We probably get 1,000, 1,500 of our own customers come and lock in and pay.
593
00:34:40.627 --> 00:34:44.632
Maybe because we're from a baby boomer town and we have a lot of old retirees.
594
00:34:44.852 --> 00:34:45.333
I don't know.
595
00:34:45.813 --> 00:34:47.275
But we have a lot of in-person.
596
00:34:47.936 --> 00:34:49.197
We have a lot of phone calls.
597
00:34:49.518 --> 00:34:51.460
Majority of visit phone call and in-person.
598
00:34:51.881 --> 00:34:56.426
And then, yeah, that's pretty much a big bottleneck I've seen.
599
00:34:56.446 --> 00:34:57.287
Okay, so...
600
00:34:58.088 --> 00:35:01.031
So I want to go to subscription routes because... To solve that problem.
601
00:35:01.451 --> 00:35:04.154
We will... Once we have them on a subscription, that's it.
602
00:35:04.794 --> 00:35:07.276
No repetitive sales cycle.
603
00:35:07.857 --> 00:35:08.317
Okay?
604
00:35:08.377 --> 00:35:08.698
Zero.
605
00:35:08.858 --> 00:35:09.118
None.
606
00:35:10.359 --> 00:35:13.021
All we could focus and double down on is customer success.
607
00:35:13.562 --> 00:35:14.182
Which is like...
608
00:35:14.943 --> 00:35:40.062
you're you're hitting you're kind of killing two birds with one stone because you're making the experience not only better for the customer um but you're also solving for the customer too so i don't know it's just like it just makes so much more sense i watch my sales team go for three months straight one or two agents will work minimum 50 60 hour weeks and i watch us start at zero every april and by the time we're in december we have all of our customers
609
00:35:40.582 --> 00:35:46.428
And it's this long, slow burn going from zero to a thousand, two to three to four.
610
00:35:46.548 --> 00:35:50.632
And it's like so much effort from the team for no reason.
611
00:35:50.692 --> 00:35:56.718
And we could just have them on a subscription and the payments come out every month, just like Spotify or Apple Music.
612
00:35:57.178 --> 00:35:58.280
And they don't have to blink an eye.
613
00:35:58.600 --> 00:36:00.243
Or if they want, they can pay them full.
614
00:36:00.663 --> 00:36:02.466
And they get a good discount if they want to pay them full.
615
00:36:02.526 --> 00:36:05.049
But even with paying them full, it's still a subscription.
616
00:36:05.089 --> 00:36:07.633
Just like an annual payment for Spotify or Apple Music.
617
00:36:08.094 --> 00:36:10.457
Once that one year comes around, you will be charged again.
618
00:36:11.627 --> 00:36:12.947
That is the model I want to run.
619
00:36:13.228 --> 00:36:19.490
And how I want to plug it is you have your option to do just snow or you have your option to do snow and lawns.
620
00:36:19.810 --> 00:36:23.611
My main focus is I want to get as many people as possible on snow and lawns.
621
00:36:23.711 --> 00:36:24.092
Why?
622
00:36:24.492 --> 00:36:27.933
Because then this goes to the other part, which is me having a heart for the guys.
623
00:36:28.273 --> 00:36:34.495
When I go and hire 60 guys for the winter and I got like 40 guns, like guns out of the 60.
624
00:36:34.535 --> 00:36:35.676
The other 20 are all right.
625
00:36:36.316 --> 00:36:38.497
And I'm looking at them and this is going through my head this winter.
626
00:36:38.517 --> 00:36:38.917
I'm like...
627
00:36:40.540 --> 00:36:41.281
My heart's broken.
628
00:36:41.781 --> 00:36:43.743
All you guys are getting laid off in the spring.
629
00:36:44.344 --> 00:36:44.845
All you guys.
630
00:36:44.945 --> 00:36:46.987
Like, we're only keeping 15 out of 60.
631
00:36:47.728 --> 00:36:48.469
How do I keep them?
632
00:36:48.889 --> 00:36:54.915
I got to get as many of my winter customers as possible to convert to being interested in
633
00:36:55.596 --> 00:36:56.857
and being with us all year round.
634
00:36:57.277 --> 00:37:00.239
So then my head goes to a whole different thing, a whole different thing.
635
00:37:00.259 --> 00:37:02.261
And I don't even know if we'll be successful doing this.
636
00:37:02.321 --> 00:37:06.964
And I kind of wanted to have a second location started from scratch to see if this is possible.
637
00:37:07.624 --> 00:37:10.186
I'm going to go with a subscription model this spring in my current business.
638
00:37:10.226 --> 00:37:15.790
First time I ever did it, where I'm going to try and get all my 5,000 customers subscribed for their snow removal.
639
00:37:16.170 --> 00:37:22.857
Now, out of those 5,000 customers, we are going to work our ass off as a team to get them on a subscription all year round for snow and lawn.
640
00:37:23.117 --> 00:37:23.337
Okay?
641
00:37:23.357 --> 00:37:24.198
We're going to try and do both.
642
00:37:24.959 --> 00:37:26.641
Now, this will be the first time doing this.
643
00:37:26.681 --> 00:37:37.992
And if it's a success, it's definitely the way I want to scale the business moving forward because you're decreasing the sales cycle for our internal staff, which is decreasing expenses of paying the sales team, which is pay your sales team pretty well, right?
644
00:37:38.312 --> 00:37:41.395
And then on top of that, we could double down on customer support and nourishment.
645
00:37:41.776 --> 00:37:48.123
Then on the backside operationally, we keep guys and assets, really good employees all year round.
646
00:37:49.223 --> 00:37:52.744
My biggest downfall has always been the operator churn.
647
00:37:53.425 --> 00:37:57.306
I get all these highly skilled operators and I build a team of brutes.
648
00:37:57.806 --> 00:37:59.367
And then by the end of the winter, they're all gone.
649
00:37:59.687 --> 00:38:01.868
I only keep 15, 20, 30% of them.
650
00:38:02.248 --> 00:38:04.169
Next winter comes around, you lose them along the way.
651
00:38:04.209 --> 00:38:05.189
They have full-time jobs.
652
00:38:05.209 --> 00:38:06.110
They go other places.
653
00:38:06.410 --> 00:38:08.451
And it's like we're restarting every single year.
654
00:38:08.991 --> 00:38:11.412
So to me, how I would rebuild this business is,
655
00:38:12.172 --> 00:38:23.948
If I had to do it again, if I had to rebuild it, just like I wanted to ask you how you'd rebuild yours, if I were to rebuild my business right now, I would focus on more average revenue per customer, more money per household.
656
00:38:24.448 --> 00:38:25.770
And how would I accomplish that?
657
00:38:25.890 --> 00:38:27.012
I would look for high revenue.
658
00:38:27.332 --> 00:38:33.537
premium, quality-paying customers where I could provide snow services to them and lawn services to them.
659
00:38:33.697 --> 00:38:53.053
Even if we have to open up shoveling as an extra extent, even if we have to open up some weed spraying and mulching in the beds, whatever it takes, my goal and my focus would be to get 1,000 max, 1,000 quality-paying customers that spend $5,000 of average revenue per customer per year to get us the $5 million.
660
00:38:53.373 --> 00:38:59.718
Rather than 5,000 customers that we have right now, that gets us to 5 millions for only six months of the year.
661
00:39:00.539 --> 00:39:02.220
That is how I would rebuild this business.
662
00:39:02.481 --> 00:39:04.842
And that's what I think would stick from a franchising model.
663
00:39:05.463 --> 00:39:12.308
So that's something I wanted to kind of pour my heart out about because I built such a great business because there was such a big market.
664
00:39:13.109 --> 00:39:16.750
But I know now looking at it, I'm like, I got 5,000 customers on the snow side.
665
00:39:17.331 --> 00:39:24.153
I know to these 5,000 customers, there's 1,000 customers in there that would pay 50% to 100% more than they're paying right now.
666
00:39:24.753 --> 00:39:30.195
I know that we could upsell with doing shoveling because doing 1,000 homes with shoveling and snow blowing is not that hard.
667
00:39:30.555 --> 00:39:33.396
Doing 5,000 homes with shoveling and snow blowing is impossible.
668
00:39:33.696 --> 00:39:34.577
But I know I could do it with 1,000.
669
00:39:35.337 --> 00:39:40.859
Then on top of that, you provide lawn care for them and maybe some other upsells that you could do that are reoccurring services.
670
00:39:41.340 --> 00:39:46.202
You could almost get an average revenue per customer to like six, seven, eight, nine, $10,000 per household.
671
00:39:46.502 --> 00:39:50.864
Times that over a thousand customers, you're in the five to $10 million bracket for one location.
672
00:39:51.953 --> 00:39:56.537
Now, I went on a terror just because I'm like, there's no other guy that would understand this better than you.
673
00:39:57.317 --> 00:39:58.258
What do you think about that?
674
00:39:58.678 --> 00:40:01.520
Yeah, I think your lawn crew becomes your snow shoveling crew.
675
00:40:01.921 --> 00:40:02.981
Yes, yes, yes.
676
00:40:03.582 --> 00:40:07.305
A lawn care guy is usually not going to be as qualified to be an operator.
677
00:40:07.825 --> 00:40:09.186
All our lawn care guys are operators.
678
00:40:09.667 --> 00:40:10.007
Right now.
679
00:40:10.027 --> 00:40:17.373
If you're trying to scale it, you can get a lawn care operator for a lot cheaper, a lawn care like a mowing crew, than a guy who can drive a tractor.
680
00:40:17.594 --> 00:40:18.654
He does a great job of it.
681
00:40:18.674 --> 00:40:19.115
Yeah, yeah, yeah.
682
00:40:19.195 --> 00:40:19.395
Right?
683
00:40:19.615 --> 00:40:24.740
And so I think that your snow shoveling would probably, let's just say there's a thousand snow shoveling clients.
684
00:40:25.765 --> 00:40:27.106
That's your 1,000 mowing customers.
685
00:40:27.426 --> 00:40:27.606
Yeah.
686
00:40:27.746 --> 00:40:31.808
So, like, your snow, your mowing crew becomes your snow shoveling crew.
687
00:40:32.368 --> 00:40:34.249
And I do think you can get the 1,000.
688
00:40:34.550 --> 00:40:38.031
You can get an extra 20%, 30% revenue just by doing snow shoveling.
689
00:40:38.232 --> 00:40:39.052
Mm-hmm.
690
00:40:39.072 --> 00:40:44.355
Now, how do you feel about just going after, like, now I've changed the customer avatar at this point.
691
00:40:44.535 --> 00:40:44.675
Mm-hmm.
692
00:40:45.275 --> 00:40:49.478
Our new avatar becomes somebody who's looking to not touch anything outside of their home anymore.
693
00:40:49.698 --> 00:40:50.559
I think you use pricing.
694
00:40:50.579 --> 00:40:54.882
I think even with the whole subscription thing, I don't think you need to push in that direction.
695
00:40:55.182 --> 00:40:59.405
I think instead, we think of it, we have six months of snow, we have six months of lawn.
696
00:40:59.765 --> 00:41:04.949
When we hit the end of our snow season, we tell you, hey, do you want to see us again next, when you start?
697
00:41:05.069 --> 00:41:05.569
October 1st?
698
00:41:05.609 --> 00:41:06.189
December 1st?
699
00:41:06.970 --> 00:41:08.331
No, no, no, November 1st.
700
00:41:08.351 --> 00:41:08.711
November 1st.
701
00:41:08.731 --> 00:41:10.512
Okay, hey, do you want to see us November 1st?
702
00:41:10.733 --> 00:41:14.155
Or we can continue at your current rate and we can mow your lawn.
703
00:41:15.138 --> 00:41:16.099
Click one of these two buttons.
704
00:41:17.081 --> 00:41:18.843
I don't think there needs to be a big sales process there.
705
00:41:19.504 --> 00:41:25.792
Because if they opt out of mowing, what I want them to do in opting out of mowing is to opt in to starting next winter.
706
00:41:26.213 --> 00:41:27.274
We have their car on file, right?
707
00:41:27.294 --> 00:41:27.434
Right.
708
00:41:28.317 --> 00:41:29.317
Do we have to do your card?
709
00:41:29.337 --> 00:41:29.998
Yeah, all cards.
710
00:41:30.078 --> 00:41:30.318
Awesome.
711
00:41:30.338 --> 00:41:36.060
So it's like, hey, look, do you want to see us next November 1st, or do you want us to continue mowing at your current rate?
712
00:41:36.340 --> 00:41:40.102
Your current rates for snow is about what you would be charging for.
713
00:41:40.442 --> 00:41:41.423
No, it launched a bit more.
714
00:41:41.443 --> 00:41:41.963
A little bit more?
715
00:41:42.123 --> 00:41:42.843
Yeah, quite a bit more.
716
00:41:42.983 --> 00:41:43.904
I would say, I would say.
717
00:41:43.924 --> 00:41:44.484
Almost double.
718
00:41:44.844 --> 00:41:45.364
Is it double?
719
00:41:45.404 --> 00:41:45.905
Almost double.
720
00:41:45.945 --> 00:41:46.485
If they're weekly?
721
00:41:46.985 --> 00:41:47.205
Yes.
722
00:41:47.485 --> 00:41:48.226
What if they're bi-weekly?
723
00:41:48.486 --> 00:41:55.649
Bi-weekly, let me give you an example, because we're only 24 cuts this season on weekly, and 12 cuts bi-weekly.
724
00:41:56.353 --> 00:41:57.274
Yeah, see, that's the thing.
725
00:41:57.594 --> 00:42:01.197
So for Snow, for 12 months, they're paying $1,000.
726
00:42:01.637 --> 00:42:03.679
So biweekly model.
727
00:42:04.980 --> 00:42:08.143
If I have a total, that's $85 a cut if you're doing biweekly.
728
00:42:08.743 --> 00:42:11.305
It's $60 if you're doing weekly.
729
00:42:11.986 --> 00:42:12.826
Let me see how we did it.
730
00:42:12.866 --> 00:42:17.951
We do the first 12 weeks, and then we do six.
731
00:42:18.231 --> 00:42:18.731
Okay, sorry.
732
00:42:19.051 --> 00:42:20.353
Biweekly is 18 cuts.
733
00:42:20.493 --> 00:42:20.713
Okay.
734
00:42:22.448 --> 00:42:26.359
Bi-weekly is 18 cuts, and then weekly is 24 cuts.
735
00:42:28.335 --> 00:42:54.341
so i'll tell you what we did and what we solved for um bi-weekly sucks it looks horrible on your business but for us we figured out a way of tapping into it in our hometown because we have a lot of people that don't care about their lawns we don't have nice lawns in ontario and canada period because all the pesticides and bs and then on top of that being in northern ontario where we're primarily a snow uh season out there everybody's lawns is just weeds like it's not there's no lawn so the thing you can make sense of a 40 to 50 cut
736
00:42:54.601 --> 00:42:55.241
Yeah, we can.
737
00:42:55.401 --> 00:43:02.244
But what we've done is when we used to do biweekly, it would kill us because when the vegetation's high, we couldn't keep up and it would murder us.
738
00:43:02.284 --> 00:43:09.508
So what we do is the six-month contract, the first three months we front load with weekly, the back three months we do biweekly.
739
00:43:10.308 --> 00:43:11.009
That is what we do.
740
00:43:11.149 --> 00:43:13.370
And that is your biweekly package.
741
00:43:13.830 --> 00:43:16.572
It is weekly service for the first three months when vegetation is high.
742
00:43:17.012 --> 00:43:19.234
Around mid-summer, our vegetation dies.
743
00:43:19.374 --> 00:43:21.555
If you don't have an irrigation system, your lawn ain't growing.
744
00:43:21.736 --> 00:43:22.416
Barely growing.
745
00:43:23.016 --> 00:43:24.597
It's only growing a little bit.
746
00:43:24.697 --> 00:43:25.778
Maybe an inch every two weeks.
747
00:43:25.798 --> 00:43:31.222
So in the perfect world, let's assume weekly during the first three months, biweekly in the second three months of the growing system.
748
00:43:31.242 --> 00:43:32.202
That's our standard package.
749
00:43:32.222 --> 00:43:32.723
How many cuts?
750
00:43:32.743 --> 00:43:33.223
How many cuts?
751
00:43:33.687 --> 00:43:34.068
18 cuts.
752
00:43:34.448 --> 00:43:34.749
18 cuts.
753
00:43:34.769 --> 00:43:36.231
For the standard package or bi-weekly.
754
00:43:36.291 --> 00:43:36.831
18 cuts.
755
00:43:37.352 --> 00:43:40.897
If we take, let's just call it, right now you're usually $150 per month.
756
00:43:43.343 --> 00:43:43.863
For snow?
757
00:43:43.963 --> 00:43:44.503
Roughly, yeah.
758
00:43:44.583 --> 00:43:45.584
Okay, so that's $1,000.
759
00:43:45.864 --> 00:43:48.764
Our contract average over six months is $850.
760
00:43:49.305 --> 00:43:49.445
Okay.
761
00:43:49.465 --> 00:43:52.185
If that gives you... Yep, so if we take 50...
762
00:43:52.225 --> 00:43:53.766
So we're like $141 before tax.
763
00:43:53.846 --> 00:43:55.006
This is still $50 a cut.
764
00:43:55.426 --> 00:43:59.667
18 cuts times 50, that's $900 over the course of...
765
00:44:00.247 --> 00:44:01.268
If you did standard route.
766
00:44:01.368 --> 00:44:01.828
Standard route.
767
00:44:01.948 --> 00:44:03.988
And you just say that's how everyone is, right?
768
00:44:04.008 --> 00:44:07.729
So you just hit the end of the snow season and say, hey, you've been paying us $150 a month.
769
00:44:07.769 --> 00:44:08.649
I'm making it up.
770
00:44:09.170 --> 00:44:10.210
Do you want to, A...
771
00:44:11.336 --> 00:44:15.259
Continue at that rate, or you just do the six-month thing all the time.
772
00:44:15.379 --> 00:44:20.823
Every six months, the whole renewal contract, don't do it.
773
00:44:20.963 --> 00:44:21.624
That's killing you.
774
00:44:21.944 --> 00:44:26.007
The fact that you start from zero, you should be starting at your current number and working down as turn happens.
775
00:44:26.087 --> 00:44:26.347
Exactly.
776
00:44:26.447 --> 00:44:28.709
And that's why I'm very afraid of the subscription model.
777
00:44:29.309 --> 00:44:34.453
This is why I see Snow Guy wanting to do it because it helps from cash flow, especially because you got fixed expenses during the summer.
778
00:44:34.633 --> 00:44:38.937
But for six months, if you're charging someone, you are high on their priority list to get rid of.
779
00:44:39.737 --> 00:44:44.180
Now, hopefully they remember how painful it was last year to find you and get a good service.
780
00:44:44.520 --> 00:44:51.325
But when you're charging, like acquisition of comm, they talk about increasing the number of payments, increases churn 100% of the time.
781
00:44:51.946 --> 00:44:54.027
That's why annual subscriptions are so painful.
782
00:44:54.087 --> 00:44:54.768
We give a discount.
783
00:44:55.108 --> 00:44:55.568
Yeah, we do 10%.
784
00:44:55.588 --> 00:44:57.209
Because you know you're cutting on churn.
785
00:44:57.229 --> 00:44:57.670
Yeah.
786
00:44:57.690 --> 00:44:57.830
Right?
787
00:44:58.130 --> 00:45:03.314
And so, like, I personally feel like you have a week of sales in spring and a week of sales in fall.
788
00:45:04.323 --> 00:45:10.467
And that is, when I switch from snow to mowing, I'm telling every one of my customers, hey, go ahead.
789
00:45:10.647 --> 00:45:17.472
We can't, like, for 5,000 customers to automate through an email of having them choose is, like, you're only going to get a couple thousand.
790
00:45:18.913 --> 00:45:21.555
Well, so, like, responses, you mean?
791
00:45:21.755 --> 00:45:25.898
Yeah, because everybody's, like, old school and they want to use the phone or they want to come in person.
792
00:45:27.339 --> 00:45:27.919
Cool, that's fine.
793
00:45:27.979 --> 00:45:30.421
You can say, like, come on this day if you want to come in person.
794
00:45:30.441 --> 00:45:31.462
So, like, for example...
795
00:45:32.383 --> 00:45:35.724
If you said, hey, it's the end of the snowing season, you've been paying us $150.
796
00:45:35.744 --> 00:45:37.185
Does everyone pay up front?
797
00:45:37.585 --> 00:45:38.645
Or some people monthly?
798
00:45:38.845 --> 00:45:39.905
What's the split?
799
00:45:40.106 --> 00:45:41.726
90% pay in full.
800
00:45:41.846 --> 00:45:42.066
Oh, wow.
801
00:45:42.126 --> 00:45:42.506
Okay, cool.
802
00:45:42.546 --> 00:45:42.906
That's cool.
803
00:45:43.167 --> 00:45:43.287
90%.
804
00:45:43.307 --> 00:45:43.807
All right.
805
00:45:44.287 --> 00:45:44.527
Why?
806
00:45:44.567 --> 00:45:47.008
Because we drew a massive incentive around it.
807
00:45:47.228 --> 00:45:47.488
Cool.
808
00:45:47.748 --> 00:45:48.008
10% off?
809
00:45:48.028 --> 00:45:48.428
Yeah.
810
00:45:48.868 --> 00:45:50.709
Or if you pay monthly, there's nothing.
811
00:45:50.949 --> 00:45:51.129
Cool.
812
00:45:51.409 --> 00:45:53.370
You paid us $900 for the past six months of snow.
813
00:45:53.630 --> 00:45:54.230
We were great.
814
00:45:54.290 --> 00:45:54.930
We were awesome.
815
00:45:54.970 --> 00:45:55.391
Let's go.
816
00:45:55.431 --> 00:45:56.771
Here's some of our happy customers.
817
00:45:57.251 --> 00:45:58.132
If you pay us another $900...
818
00:45:59.747 --> 00:46:01.288
You get priority for next year's snow.
819
00:46:01.308 --> 00:46:02.008
You get locked in.
820
00:46:02.429 --> 00:46:06.391
And we could take care of your lawn 18 times over the off season.
821
00:46:07.151 --> 00:46:08.892
Now, if you don't want that, that's totally fine.
822
00:46:09.313 --> 00:46:13.095
You can go ahead and prepay for next snow season now to get locked in your 10% discount.
823
00:46:14.490 --> 00:46:14.770
Okay.
824
00:46:15.230 --> 00:46:20.193
Like I'm either selling them next year's snow or I'm selling them this year's mowing.
825
00:46:20.993 --> 00:46:32.099
Yeah, that's what, yeah, not quite what we did, but basically at the end of the sales season, we would then call all of our customers, send marketing to our current winter customers and say, hey, would you like to sign up for standard or premium?
826
00:46:32.300 --> 00:46:36.242
Yeah, I never want to leave the sale in their court.
827
00:46:36.562 --> 00:46:36.742
No.
828
00:46:36.782 --> 00:46:38.503
I'm assuming they're going to start with you next year.
829
00:46:39.223 --> 00:46:46.507
And I want to just like, but explain like we have like over 50% of our customers pay in the dead middle of summer and full for winter.
830
00:46:46.848 --> 00:46:46.968
Yeah.
831
00:46:46.988 --> 00:46:51.690
So I'm going to get it like in April if they're, if they're not doing snow, if they're not doing like it's two options.
832
00:46:51.710 --> 00:46:53.711
It's like end of snow season.
833
00:46:53.751 --> 00:46:53.932
Great.
834
00:46:53.952 --> 00:46:54.852
You pay for the six months.
835
00:46:55.412 --> 00:47:03.177
Either A, do you want to pay for the next six months of, of, of lawn care or do you want to pay for the next, next year's snow and get 10% off?
836
00:47:04.997 --> 00:47:08.820
I think that you're going to get, because right now only about 15% of your snow customers are doing lawn.
837
00:47:09.340 --> 00:47:11.822
I think we get 25% easily, which is a double.
838
00:47:11.842 --> 00:47:17.486
You get to about 1,200 recurring customers if you just make it really simple by saying same price.
839
00:47:17.846 --> 00:47:22.170
As soon as you say same price for a recurring service, you can double your conversion rate.
840
00:47:22.450 --> 00:47:28.194
So when we went from, hey, we're mowing your lawn to now during the winter, we say we're winter services.
841
00:47:28.654 --> 00:47:34.419
As soon as we said it's the same price as mowing and we come the same frequency, immediately doubled conversion.
842
00:47:34.899 --> 00:47:36.280
from 20 to 40% immediately.
843
00:47:36.580 --> 00:47:38.001
Because it's just like, oh, I'm already budgeting.
844
00:47:38.021 --> 00:47:39.562
In their mind, they've already budgeted for this.
845
00:47:40.123 --> 00:47:48.008
So it's like, hey, do you just want us to continue coming to the same, keep seeing our trucks, northern snows, northern landscaping, you pace the exact same amount.
846
00:47:48.368 --> 00:47:50.570
You know that's in their budget.
847
00:47:50.610 --> 00:47:53.352
Their paycheck doesn't change, their budget doesn't change from winter to summer.
848
00:47:54.265 --> 00:47:56.446
So you can tap directly into it by saying it's the same price.
849
00:47:56.886 --> 00:48:01.469
And at that $50 per cut rate, especially knowing that it's not like premium lawns.
850
00:48:01.489 --> 00:48:02.930
It's like you've got to cut the weeds down.
851
00:48:03.090 --> 00:48:03.530
Pretty much.
852
00:48:04.290 --> 00:48:05.151
You can make that work.
853
00:48:05.371 --> 00:48:08.733
Okay, that's brought me a whole different perspective then.
854
00:48:09.073 --> 00:48:14.876
Because then what I want to kill, and this is what people do all the time when it comes to even mowing.
855
00:48:14.896 --> 00:48:17.558
They're like, I'm going to charge a subscription and charge them throughout the winter.
856
00:48:17.838 --> 00:48:20.859
And then four months of not showing up to a person's house kills.
857
00:48:20.899 --> 00:48:22.800
Like churn just decimates them.
858
00:48:23.401 --> 00:48:23.621
Mm-hmm.
859
00:48:24.417 --> 00:48:27.800
And so, like, if you don't show up at their house for six months, you're going to have huge amounts of turnout.
860
00:48:27.820 --> 00:48:37.967
The only reason why I thought I would have success with it was just because of the reason that there's customers out there that pay basically in full in the summer, all summer long.
861
00:48:37.987 --> 00:48:38.127
Good.
862
00:48:38.147 --> 00:48:38.868
So get them up front.
863
00:48:39.028 --> 00:48:39.388
Yeah.
864
00:48:39.408 --> 00:48:40.529
We're done the snow season.
865
00:48:40.909 --> 00:48:46.794
Either A, you lock in next year's snow, 10% off, or pay what you paid for the past six months of snow.
866
00:48:47.354 --> 00:48:47.995
Now it's for mowing.
867
00:48:48.355 --> 00:48:49.036
Okay, I see.
868
00:48:49.116 --> 00:48:49.856
You're onto something there.
869
00:48:49.877 --> 00:48:50.917
That makes way more sense.
870
00:48:50.958 --> 00:48:56.883
Now, what if it was somebody, like, what if I wanted to rebuild the business and, like, you had to get snow and lawns with me and we did a subscription model?
871
00:48:56.903 --> 00:48:57.383
Then it would work.
872
00:48:57.483 --> 00:48:57.724
Love.
873
00:48:57.884 --> 00:48:58.785
Then you make a loom.
874
00:48:59.365 --> 00:49:00.786
So this is what we do for winter services.
875
00:49:00.887 --> 00:49:05.070
So, like, we're trying to solve the inverse here, which is we have four months of no mowing.
876
00:49:05.997 --> 00:49:08.417
We do a Loom video with a price comparison of the two.
877
00:49:08.918 --> 00:49:14.799
So if you did a Loom video for all your customers, like right now you can send them an email, but to your point, 30% of them are gonna open it up.
878
00:49:14.839 --> 00:49:17.579
And a bunch of them are gonna see the email and not even click a button.
879
00:49:17.699 --> 00:49:23.160
So you're gonna have to like, the higher level of education you give them, the higher level of conversion.
880
00:49:23.601 --> 00:49:30.582
So we know the same exact location can convert on winter services between 20 and 70%, depending on four different ways of reaching out to the customer.
881
00:49:31.302 --> 00:49:34.303
The lowest level is send an email, and you're hitting around that right now, 15%.
882
00:49:34.763 --> 00:49:35.483
Like that's the lowest.
883
00:49:35.503 --> 00:49:42.685
Like send an email, hey, if you want to do this other for off-season winter services for you, for mowing, you're getting about 15% to 20% of people to convert.
884
00:49:43.345 --> 00:49:46.986
You go one level up with that is you send them a loom video, the price comparison.
885
00:49:47.406 --> 00:49:48.887
Hey, if you sign up now for snow, we get this.
886
00:49:49.127 --> 00:49:52.588
Oh, by the way, you also get this extra thing if you also get our…
887
00:49:53.628 --> 00:50:22.635
mowing services like you throw something else in there for example you can sweeten the deal a lot but in my opinion no one goes through the summer without converting to next year's snow like that slow build will crush your margins from admin perspective and it's very hard to plan for next snow season when it's building building building all off season versus just being like i had 5,000 4,800 already are ready for next year great i know i have capacity for so many trucks tractors
888
00:50:24.526 --> 00:50:31.314
It's going to be a very pointed one to two weeks of conversion versus allowing people to like, hey, we're done snow.
889
00:50:31.394 --> 00:50:32.335
Thank you for the great year.
890
00:50:32.435 --> 00:50:36.060
And then two, three, four months later, they're coming in asking for snow again.
891
00:50:37.095 --> 00:50:39.597
I'm just going to assume they're going to be back on.
892
00:50:39.897 --> 00:50:41.198
You have their car information on fall, right?
893
00:50:41.258 --> 00:50:41.618
Everything.
894
00:50:41.798 --> 00:50:46.761
Dude, I would just say, look, next week you're getting charged for next year just like last year unless you tell us otherwise.
895
00:50:47.041 --> 00:50:47.441
Opt out.
896
00:50:48.082 --> 00:50:52.084
If you made this an opt out strategy, this is like the third level for us for winter services.
897
00:50:52.584 --> 00:50:53.445
Hey, you're on mowing.
898
00:50:53.945 --> 00:50:56.967
How do we do this to make sure everyone's bills stay consistent?
899
00:50:56.987 --> 00:50:57.908
Your budget doesn't have to change.
900
00:50:58.108 --> 00:51:00.369
You don't get a really expensive spring cleanup and fall cleanup.
901
00:51:00.669 --> 00:51:02.871
Hey, we just have this new budget-friendly option.
902
00:51:03.511 --> 00:51:05.172
stays the same price throughout the offseason.
903
00:51:05.192 --> 00:51:08.035
If you want to opt out of it, let us know.
904
00:51:08.255 --> 00:51:09.576
That's when you make the big jump.
905
00:51:09.836 --> 00:51:15.201
That's when you cross the chasm to where the majority will stay if you just say you have to opt out.
906
00:51:15.261 --> 00:51:17.743
Now contacting all those customers is just SMS and email.
907
00:51:18.488 --> 00:51:19.989
SMS email, and I would make a video.
908
00:51:20.449 --> 00:51:23.371
So the video is the thing that allows you to be able to really explain things.
909
00:51:23.391 --> 00:51:26.333
I still only think we'll probably do half of our customer base maybe.
910
00:51:26.353 --> 00:51:27.274
And the other half you're calling.
911
00:51:27.554 --> 00:51:28.695
Yeah, yeah, yeah.
912
00:51:28.715 --> 00:51:30.196
2,500 calls.
913
00:51:30.236 --> 00:51:31.977
So 2,500 calls across five agents.
914
00:51:31.997 --> 00:51:35.139
You'd hire a few people for part-time basis for two weeks.
915
00:51:35.540 --> 00:51:37.361
You can get through all those people in a week or two.
916
00:51:38.862 --> 00:51:39.122
Okay.
917
00:51:39.302 --> 00:51:40.843
That's a way different approach and strategy.
918
00:51:40.883 --> 00:51:42.845
I think that would be exceptional.
919
00:51:43.005 --> 00:51:45.326
I'm just afraid of your churn during the summer.
920
00:51:46.619 --> 00:51:50.481
If you add people all year round for both services, it's fine, I think.
921
00:51:50.721 --> 00:51:51.441
Yes, 100%.
922
00:51:51.461 --> 00:51:56.463
But the way I'm doing it now, you're going to have people that are paying in the summer for snow, and they're going to be like, f*** this.
923
00:51:56.483 --> 00:51:59.584
Yeah, and right now, if you said, hey, 50% of my people are doing lawn.
924
00:51:59.604 --> 00:52:01.205
Because you're not getting any value for six months.
925
00:52:01.265 --> 00:52:01.625
Correct.
926
00:52:01.865 --> 00:52:03.886
And that will kill a customer.
927
00:52:04.266 --> 00:52:05.806
So you can just have like three different tiers.
928
00:52:05.826 --> 00:52:11.128
You have snow monthly, you have snow annually, and you have snow and lawn.
929
00:52:11.589 --> 00:52:12.569
These are three packages.
930
00:52:12.949 --> 00:52:15.310
And inside of the snow, you have premium and standard.
931
00:52:16.577 --> 00:52:17.878
Okay, that would work really well.
932
00:52:18.158 --> 00:52:24.160
And then when it comes to the end of snow season, you're not, you don't accept people in the middle of August unless they're new customers.
933
00:52:24.901 --> 00:52:29.463
And you can just pitch it as like, hey, if you sign up now, you get the 10% off.
934
00:52:30.183 --> 00:52:31.704
But that ends May 1st.
935
00:52:32.864 --> 00:52:34.265
You just pull all that demand forward.
936
00:52:34.505 --> 00:52:35.786
Okay.
937
00:52:36.086 --> 00:52:36.266
Okay.
938
00:52:36.286 --> 00:52:37.706
I have a strong idea to go about this.
939
00:52:37.726 --> 00:52:39.147
That brought me a whole different perspective.
940
00:52:39.367 --> 00:52:42.529
And while you're pitching them that, you're pitching them the other six months.
941
00:52:42.789 --> 00:52:42.949
Yep.
942
00:52:43.965 --> 00:52:46.247
Yeah, especially like people paying for lawns in the summer too.
943
00:52:46.267 --> 00:52:47.168
They'd be so pissed.
944
00:52:47.228 --> 00:52:49.890
I guarantee you half of your snow customers don't even know you do mowing.
945
00:52:50.871 --> 00:52:53.673
Yeah, no, no, they don't all know for sure.
946
00:52:53.893 --> 00:52:57.777
It is a matter of like, do you like we have the four different levels.
947
00:52:57.897 --> 00:53:03.461
If you actually we like our most intense operators will go knock on people's door and show them the price comparison.
948
00:53:03.842 --> 00:53:05.323
You will convert 95 percent of people.
949
00:53:05.743 --> 00:53:06.804
Like, hey, look at the price.
950
00:53:07.464 --> 00:53:08.985
Since you're doing snow with us, we give this discount.
951
00:53:09.005 --> 00:53:09.525
This is what you do.
952
00:53:09.765 --> 00:53:12.406
You say, hey, look, usually it's $80 per cut for mowing.
953
00:53:12.847 --> 00:53:17.789
Because you're part of our snow service and you signed up for next year and you prepaid for that, we're actually just going to honor that same monthly rate.
954
00:53:17.889 --> 00:53:18.870
That's going to be down to $50.
955
00:53:19.130 --> 00:53:21.751
So you're getting like 40% off.
956
00:53:21.791 --> 00:53:24.473
You're going to go sign up for the next six months.
957
00:53:24.653 --> 00:53:27.914
It'll be the same exact cost as what you've been paying us over the past six months.
958
00:53:29.555 --> 00:53:30.276
Yeah, that'll work.
959
00:53:30.296 --> 00:53:31.436
You just doubled the lifetime value.
960
00:53:31.456 --> 00:53:32.677
You became a $10 million company.
961
00:53:32.697 --> 00:53:33.517
Yeah, just like that.
962
00:53:33.597 --> 00:53:33.857
Boom.
963
00:53:34.258 --> 00:53:34.378
Hmm.
964
00:53:35.612 --> 00:53:39.475
I feel like we'd probably convert like 70% of our people if we did that route.
965
00:53:39.775 --> 00:53:42.858
It's just the manual input and effort is going to be crazy.
966
00:53:42.918 --> 00:53:44.979
It's the same way that you ramp up for operators.
967
00:53:45.039 --> 00:53:46.320
Yeah, I got to do it on the other end.
968
00:53:46.340 --> 00:53:47.141
You do it on the admin side.
969
00:53:47.201 --> 00:53:47.901
Oh, that's interesting.
970
00:53:47.921 --> 00:53:50.143
You're going to get to five to ten people on the phone just pounding.
971
00:53:50.664 --> 00:53:51.204
Yeah.
972
00:53:51.224 --> 00:53:53.225
For the book launch, we had 5,000 people.
973
00:53:53.586 --> 00:53:55.187
I'm like, oh, we're just going to call every single person.
974
00:53:55.988 --> 00:53:56.508
Make sure they show up.
975
00:53:58.701 --> 00:53:59.802
So like 5,000, you can do that.
976
00:53:59.942 --> 00:54:01.623
You can get five to 10 people in your office.
977
00:54:01.663 --> 00:54:02.524
You train them for two weeks.
978
00:54:02.544 --> 00:54:05.767
You pay them a gobs amount of money and you pay them based upon their conversion.
979
00:54:06.607 --> 00:54:09.690
You pay them based upon how many people to upsell into the mowing service.
980
00:54:10.651 --> 00:54:12.072
Yeah, we'll expand rapidly.
981
00:54:13.513 --> 00:54:15.094
That brought a whole different approach.
982
00:54:15.155 --> 00:54:15.615
My God.
983
00:54:16.576 --> 00:54:16.836
Okay.
984
00:54:17.196 --> 00:54:24.522
Now, when you think about scaling it to the next location though, and maybe just focusing on premium customers that have both services, do you like that or you don't like that?
985
00:54:24.662 --> 00:54:25.663
I like a two-tiered approach.
986
00:54:26.023 --> 00:54:26.384
I like...
987
00:54:27.253 --> 00:54:28.253
Because people want options.
988
00:54:28.773 --> 00:54:34.635
Yeah, I think to say that right now 15% of our customer base is going to somehow become 100% next year.
989
00:54:35.315 --> 00:54:35.855
Not happening.
990
00:54:36.095 --> 00:54:38.256
I couldn't even get enough trucks and equipment to do that.
991
00:54:38.476 --> 00:54:45.038
If we get that 60% to 70% though over the course of time by increasing that conversion, I think that you can double the business by doing two things.
992
00:54:45.258 --> 00:54:49.499
One, in spring having a better conversion from snow into mowing.
993
00:54:49.799 --> 00:54:54.520
And then when you hit snow season, you already know how many customers you have because we pre-sold them early in the year.
994
00:54:54.900 --> 00:54:56.741
But now you're going to go to them with the upsell.
995
00:54:58.765 --> 00:54:59.906
for the shoveling.
996
00:55:00.286 --> 00:55:03.389
And that's how you're going to keep your mowing crew busy during the winter.
997
00:55:04.169 --> 00:55:07.712
You go after those thousand shoveling customers that use low-hanging fruit.
998
00:55:07.952 --> 00:55:09.273
Low-hanging fruit, lots of money.
999
00:55:09.293 --> 00:55:10.033
This is no ads.
1000
00:55:10.153 --> 00:55:11.695
None of this is ads.
1001
00:55:11.795 --> 00:55:14.937
Your customer acquisition cost is people in that calling for two weeks.
1002
00:55:14.957 --> 00:55:15.397
It's just calling.
1003
00:55:15.517 --> 00:55:17.178
It's just letting them know about the thing you have to offer.
1004
00:55:17.739 --> 00:55:21.842
And then making a really good video explaining it all inside the text.
1005
00:55:22.303 --> 00:55:22.983
That's simple, yeah.
1006
00:55:23.023 --> 00:55:23.143
Yeah.
1007
00:55:23.283 --> 00:55:27.964
So, hey, Mr. Jones, inside of your email, go check it because these are the three options we have.
1008
00:55:28.065 --> 00:55:29.725
It's 60 seconds tops.
1009
00:55:30.165 --> 00:55:31.325
These are the three things that we're doing.
1010
00:55:31.585 --> 00:55:32.786
We're now off in this new service.
1011
00:55:32.806 --> 00:55:37.847
We're reducing it by 40% for our existing customers as our way of saying thank you to be a loyal Snow customer.
1012
00:55:38.527 --> 00:55:39.307
Get 40% off.
1013
00:55:39.648 --> 00:55:41.108
Match your price of what you're currently paying.
1014
00:55:41.128 --> 00:55:41.368
Yep.
1015
00:55:42.137 --> 00:55:43.759
And that'll just give them the standard service.
1016
00:55:43.999 --> 00:55:44.099
Yeah.
1017
00:55:44.119 --> 00:55:46.141
And you're like, well, what about the different sizes of lawns?
1018
00:55:46.382 --> 00:55:49.405
On average, a larger driveway is going to mean a larger lawn.
1019
00:55:49.925 --> 00:55:50.626
More than likely.
1020
00:55:50.706 --> 00:55:51.047
Always.
1021
00:55:51.207 --> 00:55:51.447
Yeah.
1022
00:55:52.068 --> 00:55:52.288
Yeah.
1023
00:55:52.368 --> 00:55:52.708
Always.
1024
00:55:52.989 --> 00:55:54.130
I just didn't want to.
1025
00:55:54.530 --> 00:56:01.297
Like, the first thing I go to in my head about thinking about that is, you know, there might be a smaller driveway and then a really big lawn.
1026
00:56:01.317 --> 00:56:01.418
Yeah.
1027
00:56:01.538 --> 00:56:01.718
Yeah.
1028
00:56:02.634 --> 00:56:03.274
What happens then?
1029
00:56:03.414 --> 00:56:08.457
Dude, if we can take this business for $5 million to $8 million next year by just adding lawns and not adding a single more tractor.
1030
00:56:08.477 --> 00:56:09.078
It doesn't matter.
1031
00:56:09.138 --> 00:56:10.979
Because that's the hard part about this business.
1032
00:56:11.099 --> 00:56:12.619
You have to keep adding tractors.
1033
00:56:12.820 --> 00:56:16.702
Now, do you say I focus on this for the next year or I focus on franchising?
1034
00:56:17.453 --> 00:56:18.133
I focus on this.
1035
00:56:18.354 --> 00:56:19.214
I think you focus on this.
1036
00:56:19.234 --> 00:56:20.715
This is like the lowest hanging fruit.
1037
00:56:20.875 --> 00:56:24.757
The lowest hanging fruit is that you don't buy a single more, another tractor next year, but you double the business.
1038
00:56:25.017 --> 00:56:25.437
And you do that.
1039
00:56:25.457 --> 00:56:27.579
We also acquired a business in our hometown.
1040
00:56:27.619 --> 00:56:27.959
I saw that.
1041
00:56:27.979 --> 00:56:29.039
I heard that a few months ago.
1042
00:56:29.119 --> 00:56:29.360
Yeah.
1043
00:56:29.460 --> 00:56:29.640
Yeah.
1044
00:56:29.740 --> 00:56:32.401
Like if you did nothing, you would double this business.
1045
00:56:32.481 --> 00:56:35.883
If you just focus in spring for two weeks, just you really nailed.
1046
00:56:35.923 --> 00:56:36.884
I would do a test group.
1047
00:56:37.504 --> 00:56:38.265
Oh, with 100 people?
1048
00:56:38.665 --> 00:56:40.467
Spring cleanups, too, or just cutting grass?
1049
00:56:40.487 --> 00:56:41.027
Just cutting grass.
1050
00:56:41.648 --> 00:56:42.449
You want that recurring.
1051
00:56:42.589 --> 00:56:43.350
You want that flat monthly.
1052
00:56:43.370 --> 00:56:44.391
The spring cleanups is a bitch, man.
1053
00:56:44.591 --> 00:56:46.252
Yeah, it's, again, another spike.
1054
00:56:46.693 --> 00:56:47.914
And it's just there's not much there.
1055
00:56:48.114 --> 00:56:48.234
Yeah.
1056
00:56:48.254 --> 00:56:49.115
It's like leaves, too.
1057
00:56:49.155 --> 00:56:51.697
Like, it's a cool little quick upsell, quick little bit of money.
1058
00:56:51.717 --> 00:56:54.740
We're also trying to match the price of snow, right?
1059
00:56:54.760 --> 00:56:56.482
So I just wanted to be like, we cut your grass.
1060
00:56:56.922 --> 00:56:57.643
We cut an edge.
1061
00:56:58.043 --> 00:56:58.784
It's really basic.
1062
00:56:59.224 --> 00:56:59.685
We do what we do.
1063
00:56:59.705 --> 00:57:01.607
Now, what if I want to go for a price increase in the spring?
1064
00:57:01.627 --> 00:57:01.867
Yeah.
1065
00:57:02.618 --> 00:57:03.879
For your snow.
1066
00:57:04.760 --> 00:57:08.203
That's when you bake it into your spring sales pitch.
1067
00:57:08.563 --> 00:57:10.024
Hey, we're doing a price increase next year.
1068
00:57:10.565 --> 00:57:13.447
You can lock in next season for snow now by paying in full.
1069
00:57:13.927 --> 00:57:18.251
Also, because you've been a loyal customer, we'll honor your price for all the mowing as well.
1070
00:57:19.132 --> 00:57:21.454
So you very well could double your revenue in that season.
1071
00:57:22.200 --> 00:57:22.520
Right there.
1072
00:57:22.540 --> 00:57:22.660
Okay.
1073
00:57:22.880 --> 00:57:23.140
Okay.
1074
00:57:23.160 --> 00:57:25.941
So we want to honor your price that you currently paid for this past winter.
1075
00:57:26.061 --> 00:57:26.721
Yep.
1076
00:57:26.981 --> 00:57:28.982
If not, the prices will be going up after this month.
1077
00:57:29.362 --> 00:57:32.863
And at the same token, we wanted to let you know that we could cut your grass for the whole season.
1078
00:57:33.123 --> 00:57:34.443
The next six months, you don't have to worry.
1079
00:57:34.483 --> 00:57:36.944
We can match it the same as what you pay for your snow.
1080
00:57:37.064 --> 00:57:37.904
Oh, my God.
1081
00:57:37.924 --> 00:57:39.465
You're doubling the revenue.
1082
00:57:39.545 --> 00:57:39.765
Yeah.
1083
00:57:39.845 --> 00:57:41.346
And usually that's $80.
1084
00:57:41.366 --> 00:57:42.888
Usually that's $80 per cut.
1085
00:57:42.948 --> 00:57:43.909
We do 18 cuts.
1086
00:57:44.189 --> 00:57:47.472
That would usually put you at around $1,700 for the year.
1087
00:57:47.892 --> 00:57:52.697
We're going to honor your price of money that you've been paying for snow, so you can budget this in twice a year.
1088
00:57:52.757 --> 00:57:54.538
We're going to say it's $900, 18 cuts.
1089
00:57:57.100 --> 00:57:59.342
Make the payment today, and then I'll also lock you in for next.
1090
00:57:59.402 --> 00:58:00.862
That's brilliant, Mike.
1091
00:58:01.022 --> 00:58:06.645
That'll take it for sure to, I don't know, I feel like we could probably go from five to at least like seven or eight.
1092
00:58:06.886 --> 00:58:16.471
And then in the fall, now you have all those people locked in, you go to all of them and you say, we are now offering this new service for shoveling.
1093
00:58:17.531 --> 00:58:19.492
And you upsell those people who just gave you money.
1094
00:58:20.253 --> 00:58:22.114
Now, shoveling I can't do as a contract.
1095
00:58:22.874 --> 00:58:23.975
I have to do it as a per-time.
1096
00:58:25.073 --> 00:58:25.914
How could we bake that up?
1097
00:58:25.954 --> 00:58:27.734
Just card on file, hammering it once a month?
1098
00:58:28.115 --> 00:58:28.375
Okay.
1099
00:58:28.835 --> 00:58:29.475
Why can't you?
1100
00:58:31.656 --> 00:58:42.182
Because it is so much money that I found that with the customer's brain, the way they work, when they see $30 per time rather than – because it's like double the price of what the driveway costs.
1101
00:58:42.922 --> 00:58:45.263
And people can't justify that when they see that upfront cost.
1102
00:58:45.603 --> 00:58:48.945
When they see it baked into a monthly, you'll be okay with the driveway.
1103
00:58:49.425 --> 00:58:56.488
But when they see that full cost for the six months of the year for their, you know, place to be covered for shoveling, they get really turned off.
1104
00:58:56.528 --> 00:59:01.149
Plus for us, if it's a heavy snow year and we do it on a contract, we could be screwed.
1105
00:59:01.209 --> 00:59:03.150
We won't make any money at all.
1106
00:59:03.410 --> 00:59:04.731
We could just put in a contract in place.
1107
00:59:04.751 --> 00:59:08.432
So if we go over a certain amount of shoveling times and we could just charge you additionally.
1108
00:59:08.892 --> 00:59:11.153
But what we found works because we tested it right now.
1109
00:59:11.173 --> 00:59:13.595
We have a small shoveling crew out, just so you know.
1110
00:59:13.615 --> 00:59:15.456
200 with two crews.
1111
00:59:15.756 --> 00:59:18.197
And this gets our lawns trucks moving too, which I love.
1112
00:59:18.217 --> 00:59:19.538
The lawns trucks just sit all winter.
1113
00:59:20.018 --> 00:59:21.919
And the ramp rocks are perfect for doing.
1114
00:59:21.939 --> 00:59:24.540
And you're going to need to use them during the winter now.
1115
00:59:24.620 --> 00:59:35.366
Because if you scale up and now instead of 15%, 30% or 40% do snow or lawns this coming spring, you're going to need to get those trucks activated during the winter, which would become the shoveling crew.
1116
00:59:35.726 --> 00:59:36.827
And you're okay with a lower rate.
1117
00:59:37.807 --> 00:59:38.568
This is my opinion.
1118
00:59:39.008 --> 00:59:47.413
If you pull the sale for snow back to April, the way that we're talking about, come October, there's new money in their pocket.
1119
00:59:48.154 --> 00:59:53.617
And how you pitch this is, the biggest request at Northern Snow has always been, can you please shovel my driveway?
1120
00:59:53.998 --> 01:00:00.502
We're offering for a limited number of customers this service at a one-time cost, and it's the same as your usual rate for your driveway.
1121
01:00:00.962 --> 01:00:03.524
But we also do your, and then you have the other limits.
1122
01:00:04.244 --> 01:00:05.405
That's where you get 1,000 people.
1123
01:00:06.312 --> 01:00:09.813
Yeah, if we did 1,000 people, here, I'll just give you an example.
1124
01:00:10.134 --> 01:00:16.356
So a small residential walkway to be shoveled, and we have to shovel in front of the garage door and push into the driveway because the tractor can't get close enough.
1125
01:00:16.476 --> 01:00:17.917
That's probably your biggest complaint.
1126
01:00:18.237 --> 01:00:19.377
It is our biggest complaint, yeah.
1127
01:00:19.938 --> 01:00:20.738
We don't get close enough.
1128
01:00:21.038 --> 01:00:21.418
We can't.
1129
01:00:21.938 --> 01:00:22.519
Yeah, I don't know.
1130
01:00:22.539 --> 01:00:23.579
We'll damage everything.
1131
01:00:23.639 --> 01:00:27.501
I mean, for most people, their biggest complaint is their actual, their lowest hanging upsell.
1132
01:00:27.701 --> 01:00:27.861
Mm-hmm.
1133
01:00:28.141 --> 01:00:29.041
So our biggest complaint.
1134
01:00:29.161 --> 01:00:34.843
Like I had to shovel my entrance and in front of my garage door for the last several years because the tractor wouldn't get close enough.
1135
01:00:34.943 --> 01:00:35.483
I hated it.
1136
01:00:35.523 --> 01:00:36.583
And you would pay whatever.
1137
01:00:36.883 --> 01:00:39.364
I was like, man, I'll pay you twice as much if you just move this.
1138
01:00:39.384 --> 01:00:40.284
Yes, yes, yes.
1139
01:00:40.364 --> 01:00:41.544
That's what other people are thinking.
1140
01:00:41.824 --> 01:00:43.785
So you just, you pool the money though.
1141
01:00:43.805 --> 01:00:47.285
They're currently already like that thousand dollars is already going to you.
1142
01:00:47.706 --> 01:00:51.266
Get it in the spring so that when the fall comes, hey, we've heard you.
1143
01:00:51.566 --> 01:00:52.727
We've surveyed our customers.
1144
01:00:52.907 --> 01:00:55.027
The number one request is X, Y, Z.
1145
01:00:55.327 --> 01:00:56.728
Their lowest, their biggest pain point.
1146
01:00:56.748 --> 01:00:57.748
The same way it was for you.
1147
01:00:58.388 --> 01:01:21.000
and say we are now offering this to only our existing customers recommend i put a survey out saying hey if you paid the same price for your uh grass sorry if you pay the same price right now that you're paying for your snow would you pay for your grass could should i do a survey doing you could do a survey like 100 i wouldn't do it everyone because i want when someone has a problem and they see a solution i want the first thing to be transaction i don't want to be like oh do you want this okay great let me go get it
1148
01:01:21.820 --> 01:01:22.600
I want to be, do you want this?
1149
01:01:22.620 --> 01:01:23.521
Yes, cool, here it is.
1150
01:01:24.741 --> 01:01:25.982
So I would test it, yes.
1151
01:01:26.082 --> 01:01:28.182
I would probably send it to, let's say, 100 customers.
1152
01:01:28.603 --> 01:01:30.783
Like, hey, if we were offered this, would you do that?
1153
01:01:31.184 --> 01:01:34.765
Again, someone's saying they're going to buy something versus click this button.
1154
01:01:34.785 --> 01:01:37.386
So when it's not, because we have a dead time in our sales cycle right now.
1155
01:01:37.486 --> 01:01:37.626
Yep.
1156
01:01:37.766 --> 01:01:41.928
When it's not snowing right now, my guys should be working those phones, signing people up for lawns.
1157
01:01:42.817 --> 01:01:43.097
Right now.
1158
01:01:43.278 --> 01:01:43.718
When is that?
1159
01:01:43.918 --> 01:01:44.559
Right now.
1160
01:01:44.659 --> 01:01:46.180
So when it's not... Oh, this is dead time?
1161
01:01:46.381 --> 01:01:47.262
When it's not snowing.
1162
01:01:47.362 --> 01:01:47.802
Oh, yeah.
1163
01:01:47.882 --> 01:01:51.426
When it's not snowing, our sales guys are doing nothing right now.
1164
01:01:51.806 --> 01:01:52.006
Yeah.
1165
01:01:52.687 --> 01:01:53.248
Yeah.
1166
01:01:53.348 --> 01:01:53.648
100%.
1167
01:01:53.688 --> 01:01:54.809
Hey, we end the snow season.
1168
01:01:54.829 --> 01:01:56.551
You've already paid all the way up to April 1st.
1169
01:01:57.332 --> 01:01:58.013
For only...
1170
01:01:58.033 --> 01:01:59.894
This is how you can totally sell us, dude.
1171
01:02:00.475 --> 01:02:03.896
For only our existing customers that are loyal to us, we are offering mowing.
1172
01:02:04.276 --> 01:02:07.677
We're doing this because we don't want you to have to keep the mowers and all the rest of it.
1173
01:02:08.837 --> 01:02:14.459
So you sell that now, and then the same way you have dead space in the middle of summer, and you're usually doing renewals on snow.
1174
01:02:14.779 --> 01:02:15.239
No longer.
1175
01:02:15.539 --> 01:02:16.899
We pulled that forward to the spring.
1176
01:02:17.359 --> 01:02:19.260
Now you start focusing on shoveling.
1177
01:02:20.711 --> 01:02:21.352
Oh, man, dude.
1178
01:02:21.372 --> 01:02:22.874
Yeah, I could take this.
1179
01:02:23.034 --> 01:02:29.503
If I did all that with the 5,000 customer base, we could take it to— You could double the business without— You could take it to $10 million for sure.
1180
01:02:29.523 --> 01:02:30.625
You could absolutely take it to $10 million.
1181
01:02:30.685 --> 01:02:31.386
Which is exceptional.
1182
01:02:31.406 --> 01:02:33.989
All you have to do is take a $900 customer and make it $1,800.
1183
01:02:34.370 --> 01:02:35.231
You just doubled the business.
1184
01:02:35.451 --> 01:02:35.592
Mm-hmm.
1185
01:02:36.435 --> 01:02:42.939
And you can easily get there by getting 50% to 60% on snow and 50% to 60%, let's just call it 20% even, 30% on shoveling.
1186
01:02:42.959 --> 01:02:45.780
Okay, so let me walk back now because now I've got a different agenda.
1187
01:02:45.981 --> 01:02:56.286
So my agenda was to bring this new subscription model forward, plug it into the business, see how it does, and make it part of the copy and paste model for the future scaling outside of Zuzang Marie.
1188
01:02:56.747 --> 01:02:59.048
Now I'm going to double down on my current location.
1189
01:02:59.068 --> 01:03:03.931
I'm going to try and double the revenue, let's say, or maybe 50% increase on the revenue.
1190
01:03:03.951 --> 01:03:04.331
Okay.
1191
01:03:04.511 --> 01:03:08.995
And I'm going to try to get way more lawns customers so I can keep way more operators around all year round.
1192
01:03:09.275 --> 01:03:13.379
And I can make a better sales cycle, increase LTV, and just make more money ultimately.
1193
01:03:13.519 --> 01:03:17.442
Just grow a better, bigger business and keep our customers more nourished all year round.
1194
01:03:18.123 --> 01:03:20.085
Now, what does it look like?
1195
01:03:20.825 --> 01:03:47.310
after that once i got that nailed down say this takes me a whole year and i'm like i come back to you like later on around this time or closer to fall and i say hey mike listen look at what we did man took your advice we got 2 000 lawn customers let's say which i don't even know how we'd be able to get enough trucks to do that but i'd figure it out i'm sure um hey mike we got 2 000 lawn customers we converted which would probably bring up our revenue by let me just do some basic math
1196
01:03:47.890 --> 01:03:49.854
If we only convert, let's say we converted 2,500.
1197
01:03:49.954 --> 01:03:51.077
I was just going to say half.
1198
01:03:51.097 --> 01:03:52.038
Let's be fair with half.
1199
01:03:52.499 --> 01:03:53.521
We do 2,500 lawns times 850 or 2.1.
1200
01:03:53.541 --> 01:03:53.822
Yeah.
1201
01:03:57.661 --> 01:03:59.302
on top of the $5 million we already did.
1202
01:03:59.322 --> 01:04:01.604
And then you add another million.
1203
01:04:01.884 --> 01:04:02.825
For shoveling.
1204
01:04:02.885 --> 01:04:03.285
Shoveling.
1205
01:04:03.386 --> 01:04:05.647
That's how you get to $8 next year without buying more traction.
1206
01:04:05.667 --> 01:04:06.288
You scared me.
1207
01:04:06.868 --> 01:04:07.669
You just freaked me out.
1208
01:04:07.729 --> 01:04:10.691
And that is all without any more fixed costs.
1209
01:04:10.831 --> 01:04:10.991
Yeah.
1210
01:04:11.011 --> 01:04:11.752
Besides the trucks.
1211
01:04:12.232 --> 01:04:15.875
Yeah, new trucks, but I've taken a lot of advice from you over the years.
1212
01:04:15.935 --> 01:04:17.456
You'd actually be very proud of us.
1213
01:04:17.496 --> 01:04:18.998
We make our own custom ramp rack.
1214
01:04:19.298 --> 01:04:20.379
We just figured out how to do it.
1215
01:04:20.739 --> 01:04:24.222
Because we're in Canada, we get shafted bringing the ramp racks over.
1216
01:04:24.242 --> 01:04:25.022
Oh, yeah.
1217
01:04:25.262 --> 01:04:26.103
We pay $14,000 CAD for one.
1218
01:04:26.123 --> 01:04:26.624
That's crazy.
1219
01:04:27.284 --> 01:04:28.905
You guys probably pay three grand for them here.
1220
01:04:29.366 --> 01:04:31.047
So we get killed over there.
1221
01:04:31.907 --> 01:04:38.112
So my shop manager and our team got together and were like, we've got to figure out how to build these our own way.
1222
01:04:38.512 --> 01:04:39.533
So we fabricated our own.
1223
01:04:39.553 --> 01:04:42.115
We call it the Northern Ramp, and it does a great job.
1224
01:04:42.275 --> 01:04:44.096
So the question is, okay, we do that this year.
1225
01:04:44.517 --> 01:04:44.957
What's next?
1226
01:04:44.977 --> 01:04:45.898
Is that kind of what you're asking?
1227
01:04:46.755 --> 01:04:51.317
Yeah, I just want to figure out that if I could lock that down, say I come back to you, if you like me enough.
1228
01:04:52.238 --> 01:04:57.140
Say I come back to you a year from now and I'm like, Mike, here's where I'm at.
1229
01:04:57.480 --> 01:04:59.901
We're 2,000 or 2,500 of our customers.
1230
01:04:59.921 --> 01:05:01.042
We went ahead with the lawns.
1231
01:05:01.162 --> 01:05:02.082
It ended up working.
1232
01:05:02.983 --> 01:05:07.465
We kept more operators all year round and we just built this better business with way more top line revenue.
1233
01:05:07.505 --> 01:05:08.425
We go into the shoveling.
1234
01:05:08.966 --> 01:05:10.046
What's it look like next?
1235
01:05:10.266 --> 01:05:13.188
Then maybe next 2027, I'm looking for my franchisees.
1236
01:05:13.408 --> 01:05:15.449
Yeah, and make the model work at 300 customers.
1237
01:05:16.654 --> 01:05:17.275
That's the objective.
1238
01:05:17.415 --> 01:05:18.516
Like nail it at 300?
1239
01:05:18.596 --> 01:05:19.657
Yeah.
1240
01:05:19.997 --> 01:05:23.381
Should I work in private with a small company, like just for free to help them?
1241
01:05:23.401 --> 01:05:23.921
Just focus on this.
1242
01:05:24.262 --> 01:05:25.423
This is so much higher level.
1243
01:05:25.883 --> 01:05:26.624
Because I've done that.
1244
01:05:26.744 --> 01:05:26.944
Yeah.
1245
01:05:27.265 --> 01:05:28.506
I've successfully scaled like...
1246
01:05:29.533 --> 01:05:33.134
Like just by doing a little bit of coaching calls and just helping them for free from the goodwill of my heart.
1247
01:05:33.154 --> 01:05:38.575
I've scaled like a handful of companies in Ontario that have went from zero to like 800 driveways.
1248
01:05:38.875 --> 01:05:46.076
This model where you actually focus on the lawns, you have recurring revenue throughout the year, you don't have this huge sales cycle throughout the summer.
1249
01:05:46.396 --> 01:05:48.457
If you're able to nail that, that's a franchisable model.
1250
01:05:48.777 --> 01:05:54.038
What's not franchisable is huge sales cycles, complex services, and huge off-seasons.
1251
01:05:54.658 --> 01:06:03.307
And so if you can take those three things away and say, hey, if you have $100,000 and you can go finance two to three tractors, you can join Northern Snow.
1252
01:06:03.347 --> 01:06:05.169
And I'll give you the roadmap to get 300 customers.
1253
01:06:05.689 --> 01:06:09.333
It's going to have you at, let's just call it $800,000 in annual revenue.
1254
01:06:09.833 --> 01:06:11.635
Good revenue, too, if we're doing both.
1255
01:06:11.916 --> 01:06:17.802
Now, you still recommend I go for those higher snow markets that have a true six-month snow, six-month lawns.
1256
01:06:18.422 --> 01:06:19.383
I target those markets.
1257
01:06:19.443 --> 01:06:22.906
Yeah, and then you can always down the road branch down, so keep going more south.
1258
01:06:23.326 --> 01:06:25.488
As is like, well, there's only four months, then five months.
1259
01:06:25.508 --> 01:06:26.769
Like, you can always come down.
1260
01:06:26.789 --> 01:06:27.990
Okay, and then...
1261
01:06:28.070 --> 01:06:31.813
But your objective is nailing the part that most people don't know, which is the snow.
1262
01:06:32.213 --> 01:06:37.077
But you've got to fill that other gap in, and then make sure they don't need two salespeople to make that happen.
1263
01:06:37.297 --> 01:06:37.537
Yeah.
1264
01:06:38.098 --> 01:06:40.480
No, I feel like the lawn side is like...
1265
01:06:41.305 --> 01:06:42.826
It's just so much easier, you know?
1266
01:06:43.126 --> 01:06:44.887
Like, it has its problems for sure.
1267
01:06:44.967 --> 01:06:49.250
But, like, I mean, if you could do the snow side, the lawn side, it's a walk in the park.
1268
01:06:49.270 --> 01:06:53.373
Yeah, and you just tell people, like, oh, you want to join all throughout the summer when people are calling in for lawns?
1269
01:06:53.753 --> 01:06:54.394
Hey, no worries.
1270
01:06:54.594 --> 01:06:56.215
Just know that you have to also sign up for our snow.
1271
01:06:56.275 --> 01:06:58.997
We only do our snow customers during the summer.
1272
01:06:59.357 --> 01:07:08.105
Now, you are not concerned at all that some of these prices that these customers pay for their driveways might be too cheap compared to their lawn.
1273
01:07:08.125 --> 01:07:11.649
You're just like, hey, Steph, other properties will make up for it.
1274
01:07:11.829 --> 01:07:18.175
If you need $2 million in revenue next year by adding lawns to your existing customers and buying a few more trucks—
1275
01:07:18.703 --> 01:07:25.566
Yeah, all we'll need is trucks, some more zero-turners, and then the fabrication for all the ramp racks.
1276
01:07:25.726 --> 01:07:29.828
I go the route of buying old city trucks for $5,000, clean them up, throw a wrap.
1277
01:07:30.009 --> 01:07:33.670
And with those trucks, you'll also use for the shoveling.
1278
01:07:33.850 --> 01:07:39.093
Those assets that you purchase, we fully utilize year-round versus the tractors that sit there for six months of the year.
1279
01:07:39.994 --> 01:08:06.912
I have seen some people by the way do lawns with the tractor thing can get really expensive from a maintenance perspective because just so much more cost per mile especially if you're doing $5,000 trucks I'd stick with that but like I think that you adding 3 million of revenue between snow shoveling and lawn is the highest leverage thing the lowest hanging fruit I'm going to do it by far I'm going to do that I'm going to do it because you will figure out all these other things that I haven't talked about like the incentive plan for the people on the phone needs to be nailed down
1280
01:08:07.692 --> 01:08:14.414
It's like your manager gets incentivized based on the aggregate number that's committed to next snow season by April 1st.
1281
01:08:14.914 --> 01:08:18.696
They get an incentive on it, like a big sliding scale, the person at the top.
1282
01:08:18.936 --> 01:08:27.819
Then the people that they're managing, they get based upon their conversion rate of selling that, as well as how many people they get to upsell into mowing for the rest of the season.
1283
01:08:28.159 --> 01:08:32.540
And will there be 5% to 10% of the customers who their lawn is way bigger than what their price?
1284
01:08:32.580 --> 01:08:32.840
Yes.
1285
01:08:33.121 --> 01:08:37.182
And at the end of the season, you're going to note that in their account, and next season, you'll tell them.
1286
01:08:37.442 --> 01:08:41.626
So spring and fall cleanup, do I still take that on or get rid of it?
1287
01:08:41.846 --> 01:08:42.626
I would just get rid of it.
1288
01:08:42.706 --> 01:08:43.247
For real, yeah?
1289
01:08:43.407 --> 01:08:45.108
Mostly because you want prices to be the same.
1290
01:08:45.128 --> 01:08:45.969
I have 5,000 customers.
1291
01:08:45.989 --> 01:08:48.231
We only do 100 leafs and 100 springs.
1292
01:08:48.691 --> 01:08:49.052
That's it.
1293
01:08:49.092 --> 01:08:49.292
Yeah.
1294
01:08:49.492 --> 01:08:50.553
Out of 5,000.
1295
01:08:50.593 --> 01:08:50.793
Yeah.
1296
01:08:51.173 --> 01:08:51.474
Junk.
1297
01:08:51.594 --> 01:08:53.135
You just want to convert the same pricing.
1298
01:08:53.195 --> 01:08:58.399
I just know when you say same price as mowing or same price as snow is going to be mowing, you'll immediately double your conversion.
1299
01:08:58.439 --> 01:09:00.301
Our only upsell then is shoveling.
1300
01:09:01.655 --> 01:09:02.115
In the fall.
1301
01:09:02.576 --> 01:09:02.876
That's it.
1302
01:09:03.056 --> 01:09:03.216
Yep.
1303
01:09:03.416 --> 01:09:04.657
In summer, it's just we cut grass.
1304
01:09:04.757 --> 01:09:04.898
Yep.
1305
01:09:05.258 --> 01:09:10.562
Now, what if we get to a point where there's some people are like, oh, cool, you'll match my price for snow.
1306
01:09:11.022 --> 01:09:13.244
I want the I want the premium.
1307
01:09:14.898 --> 01:09:15.319
The weekly.
1308
01:09:15.339 --> 01:09:16.240
I want weekly all year.
1309
01:09:16.260 --> 01:09:17.561
I don't want your standard package.
1310
01:09:17.842 --> 01:09:25.130
Because our standard package would essentially be the 18 cuts that would then match their price they paid for snow.
1311
01:09:25.371 --> 01:09:26.532
Oh, I see what you're saying.
1312
01:09:26.552 --> 01:09:27.854
Do we use it as an upsell?
1313
01:09:27.954 --> 01:09:34.302
So I would use in the fall, I would upsell premium to people who have not already purchased it and snow traveling.
1314
01:09:35.168 --> 01:09:35.428
Okay.
1315
01:09:35.508 --> 01:09:38.270
It's like, hey, you already paid for your mowing.
1316
01:09:38.290 --> 01:09:40.131
You've paid for this whole year of standard.
1317
01:09:40.691 --> 01:09:45.314
If you want to upgrade to premium or if you want to add snow shoveling, here's your two options.
1318
01:09:45.894 --> 01:09:46.074
Okay.
1319
01:09:47.175 --> 01:09:49.717
Yeah, no, because all I'm thinking through my head is we have –
1320
01:09:50.697 --> 01:09:56.039
We have some customers right now from the snow side who have paid standard prices, and we have customers who have paid premium.
1321
01:09:56.559 --> 01:10:02.921
The customers who have paid premium, we could just match that and say, hey, we're going to give you our standard service for lawns by matching that.
1322
01:10:03.281 --> 01:10:05.762
But that standard service for lawns is not premium.
1323
01:10:06.102 --> 01:10:14.225
And then for the customers that are on their winter side who paid a standard price, I can't give them mowing, standard mowing at that price.
1324
01:10:14.645 --> 01:10:15.406
Here's the asterisk.
1325
01:10:15.566 --> 01:10:20.533
I think that if you did the first, what we've talked about so far, down the road you do have a standard and a premium for mowing too.
1326
01:10:20.913 --> 01:10:22.215
The premium would include the cleanups.
1327
01:10:24.603 --> 01:10:35.847
So the same way that someone's willing to pay twice as much for the premium, they would say, hey, you also – the same price you pay for premium because if they're a premium customer for snow, they're going to become a premium customer for mowing.
1328
01:10:36.468 --> 01:10:38.728
And they're going to want their property cleanups done.
1329
01:10:39.009 --> 01:10:40.689
That's how you 4X revenue on someone now.
1330
01:10:41.409 --> 01:10:48.372
You go from standard to premium and you go from premium snow only to premium lawn that includes the cleanups.
1331
01:10:49.797 --> 01:10:50.077
Okay.
1332
01:10:50.557 --> 01:10:56.139
So right at the end of that cycle, we ask them if they want to pay in full or they could just continue with the monthly payments.
1333
01:10:56.159 --> 01:10:56.319
Yep.
1334
01:10:56.599 --> 01:10:59.400
And then we could add to those monthly payments by adding on.
1335
01:10:59.600 --> 01:10:59.820
Okay.
1336
01:11:00.280 --> 01:11:09.282
Yeah, just the only thing where it gets cloudy for me is any of the standard snow customers we have right now, I would then go, hey, are you interested in getting grass cutting?
1337
01:11:09.802 --> 01:11:11.683
It would be higher than what they're currently paying.
1338
01:11:12.600 --> 01:11:14.921
If they are going to premium lawn care, is that what you're saying?
1339
01:11:14.981 --> 01:11:15.661
No, standard.
1340
01:11:16.341 --> 01:11:16.981
Why would it be higher?
1341
01:11:17.181 --> 01:11:19.122
So, okay, so this is what I'm trying to think through, right?
1342
01:11:19.322 --> 01:11:24.323
The average number I gave you of 850 per driveway is an average between standard and premium.
1343
01:11:24.843 --> 01:11:24.983
Oh.
1344
01:11:25.184 --> 01:11:28.204
Okay, so here's something to know.
1345
01:11:28.264 --> 01:11:31.465
30% of our customer base is standard.
1346
01:11:31.505 --> 01:11:33.366
70% is premium for lawn.
1347
01:11:33.406 --> 01:11:34.926
First, no, first, no, first, no, first, no.
1348
01:11:35.426 --> 01:11:35.766
So...
1349
01:11:38.087 --> 01:11:44.472
Out of the 30% of the standard, they pay on average about 15% less than a premium.
1350
01:11:44.672 --> 01:11:45.332
Oh, that's not bad.
1351
01:11:45.472 --> 01:11:46.013
That's not bad.
1352
01:11:46.053 --> 01:11:46.593
That's not a lot.
1353
01:11:46.813 --> 01:11:47.494
No, it's not a lot.
1354
01:11:47.534 --> 01:11:51.036
But when I go and do the upsell to keep them there for lawns.
1355
01:11:51.457 --> 01:11:53.158
I would just do the standard package for mowing.
1356
01:11:53.238 --> 01:11:54.719
Don't even get involved with spring cleanups.
1357
01:11:55.703 --> 01:11:57.743
I was thinking that premium was like double.
1358
01:11:58.263 --> 01:11:59.064
No, no, no, no.
1359
01:11:59.124 --> 01:12:04.465
But the difference between standard and premium for mowing is premium mowing is an extra six cuts.
1360
01:12:05.185 --> 01:12:07.265
Standard mowing is six less cuts.
1361
01:12:07.305 --> 01:12:08.585
It's 18 versus 24.
1362
01:12:08.845 --> 01:12:13.826
So for my premium snow customers, do I just say, hey, I'm going to match your price and give you premium mowing?
1363
01:12:14.066 --> 01:12:15.566
They might not need weekly mowing.
1364
01:12:15.686 --> 01:12:16.467
A lot of them don't.
1365
01:12:16.507 --> 01:12:16.747
Sault Ste.
1366
01:12:16.767 --> 01:12:18.247
Marie doesn't need weekly mowing.
1367
01:12:18.267 --> 01:12:24.048
There's only one sprinkler in each residential lawn per like 500 homes.
1368
01:12:24.188 --> 01:12:24.388
Yeah.
1369
01:12:24.988 --> 01:12:36.714
So the problem for me becomes is that if I have a customer who paid standard and they paid a cheap standard price and I say, hey, I'm going to give you standard mowing with that, I might really shoot myself in the foot.
1370
01:12:36.994 --> 01:12:37.234
Yeah.
1371
01:12:37.274 --> 01:12:39.716
So then, again, your biggest complaint will become your upsell.
1372
01:12:40.196 --> 01:12:42.797
Like, oh, you want your lawn cut more often?
1373
01:12:42.917 --> 01:12:43.978
It's growing really fast?
1374
01:12:43.998 --> 01:12:44.258
Okay.
1375
01:12:44.318 --> 01:12:45.679
There's a premium version of mowing.
1376
01:12:45.839 --> 01:12:46.579
That's when we do that.
1377
01:12:46.619 --> 01:12:46.839
Yes.
1378
01:12:47.180 --> 01:12:49.861
So you have your snow mowing.
1379
01:12:49.941 --> 01:12:51.102
So that is the upsell then.
1380
01:12:51.122 --> 01:12:51.522
Yep.
1381
01:12:52.228 --> 01:12:53.268
Okay, so we lock them in.
1382
01:12:53.429 --> 01:12:55.229
Hey, the first three months, we're going to come weekly.
1383
01:12:55.369 --> 01:12:59.591
After the first three months, when vegetation goes down a little bit, we're going to move to biweekly.
1384
01:12:59.811 --> 01:13:00.011
Exactly.
1385
01:13:00.031 --> 01:13:04.593
At that point in time, if you wish to upgrade, you could call in and we'll upgrade the rest of the three months for you.
1386
01:13:04.773 --> 01:13:04.933
Yep.
1387
01:13:05.353 --> 01:13:05.914
They're right here.
1388
01:13:05.934 --> 01:13:07.014
They're on standard snow.
1389
01:13:07.694 --> 01:13:08.915
And they moved over to here.
1390
01:13:08.935 --> 01:13:09.815
And like, I don't like that.
1391
01:13:09.835 --> 01:13:10.396
It's like, hey, great.
1392
01:13:10.416 --> 01:13:14.057
We can upgrade you and we'll do you more often and we'll move you down here.
1393
01:13:14.077 --> 01:13:15.498
Now, standard snow customers.
1394
01:13:16.378 --> 01:13:20.944
Like, I have to charge a little bit more than what they're paying for snow.
1395
01:13:20.984 --> 01:13:22.906
I can't match it because we'd be losing hard.
1396
01:13:23.147 --> 01:13:24.629
You mean if they could make that?
1397
01:13:24.649 --> 01:13:25.389
Convert to lawns.
1398
01:13:26.606 --> 01:13:27.747
Yeah, if they convert to lawns.
1399
01:13:27.767 --> 01:13:33.590
So, for example, just for some basic numbers, I have a premium customer, okay, for lawns.
1400
01:13:33.770 --> 01:13:34.431
I mean for snow.
1401
01:13:34.611 --> 01:13:35.691
I have a premium snow customer.
1402
01:13:35.711 --> 01:13:38.253
They're $8.50 for the whole season for six months.
1403
01:13:38.813 --> 01:13:47.638
I want to times that by two, and I'm going to give them their 18 cuts for the summer when I upgrade them, or not upgrade them, when I sell them after the winter is over.
1404
01:13:47.658 --> 01:13:47.918
Yep.
1405
01:13:48.159 --> 01:13:49.900
So that's pretty much what we'll collect from a customer.
1406
01:13:49.940 --> 01:13:50.600
Yep, $40.
1407
01:13:51.466 --> 01:13:51.766
Okay.
1408
01:13:52.166 --> 01:13:58.508
Now, when I think about the standard customers, the standard customers for Snow Ray now pay around $700.
1409
01:13:58.829 --> 01:13:59.949
So they're $150 less.
1410
01:13:59.989 --> 01:14:00.209
Yep.
1411
01:14:00.789 --> 01:14:01.289
Let's just say.
1412
01:14:01.529 --> 01:14:02.710
I'm just making simple numbers.
1413
01:14:03.330 --> 01:14:11.093
When I go and I go and times that same homeowner by two, I'm missing out on a lot of extra revenue, $300 of revenue per house.
1414
01:14:11.593 --> 01:14:17.735
If I have enough standard customers say, hey, I would like to get the mowing too, they're ultimately paying a cheaper price.
1415
01:14:18.885 --> 01:14:23.567
They are, but what you could do is just have the two different, like the 18 versus the 24 cuts.
1416
01:14:23.967 --> 01:14:26.589
So the standard mowing would just get the 18 cuts.
1417
01:14:27.069 --> 01:14:28.489
You could do the 24 cuts for premium.
1418
01:14:29.050 --> 01:14:29.290
Okay.
1419
01:14:29.830 --> 01:14:30.070
Okay.
1420
01:14:30.410 --> 01:14:30.851
I could do that.
1421
01:14:30.871 --> 01:14:31.411
That's what I'm saying.
1422
01:14:31.451 --> 01:14:32.911
You'd have like a premium standard mowing.
1423
01:14:32.931 --> 01:14:39.054
What I wanted to do, where it got confusing probably for you, I wanted to do it the other way around where... Everyone goes to 18 and then they give a lower even.
1424
01:14:39.494 --> 01:14:46.718
No, everybody who is a premium customer would get the option to have their price matched for standard mowing, only 18 cuts.
1425
01:14:49.395 --> 01:14:57.269
You could do that, but then the trouble is you're penalizing your premium snow customers for the same number of cuts as if they were a standard snow customer.
1426
01:14:57.552 --> 01:14:58.232
That's what I'm saying.
1427
01:14:59.052 --> 01:14:59.712
You see what I'm saying?
1428
01:14:59.792 --> 01:15:00.373
Yeah, yeah, yeah.
1429
01:15:00.413 --> 01:15:01.873
But I already know it's kind of cheap.
1430
01:15:01.893 --> 01:15:02.593
That's the problem.
1431
01:15:02.633 --> 01:15:12.355
Because right now, on average, just to be simple, my driveway is like, my driveway right now, we'd pay, you know, it'd be like $900 for my company a year.
1432
01:15:12.575 --> 01:15:12.755
Yep.
1433
01:15:13.335 --> 01:15:20.156
If we went with premium mowing, I think right now, like, I'm just going to do it per cut.
1434
01:15:20.176 --> 01:15:21.016
This is standard mowing.
1435
01:15:21.036 --> 01:15:21.336
Sorry.
1436
01:15:21.776 --> 01:15:24.537
Let's just say we're, I think we're 55 at my house.
1437
01:15:24.857 --> 01:15:24.997
Right.
1438
01:15:25.460 --> 01:15:28.469
So we're $100 more revenue for just a standard mullet.
1439
01:15:28.549 --> 01:15:28.730
Yeah.
1440
01:15:29.191 --> 01:15:31.297
Now when I go to 24 times the 55...
1441
01:15:34.498 --> 01:15:47.162
That's a lot of extra revenue I'm missing out on if I end up doing, if I match my premium driveway prices for all my premium snow customers for lawns and I give them premium service, I'm losing out on a lot of revenue.
1442
01:15:47.302 --> 01:15:53.424
Now, if I do, okay, I'm a premium customer, I pay $900, and I decided to go with the standard mowing.
1443
01:15:53.584 --> 01:15:56.865
That's my upsell in the spring is I say, hey, we'll match your price.
1444
01:15:56.885 --> 01:16:00.286
If I go 18 times 55, I'm only missing on the 92.
1445
01:16:04.487 --> 01:16:06.528
but I doubled the revenue for that customer.
1446
01:16:06.548 --> 01:16:07.769
You see where I was getting Terry?
1447
01:16:08.049 --> 01:16:11.611
If I do premium, that's an extra six cuts I got to go out for.
1448
01:16:11.691 --> 01:16:12.931
Right.
1449
01:16:13.031 --> 01:16:13.792
I'm losing money.
1450
01:16:15.137 --> 01:16:16.919
I don't know losing, but it's going to cost.
1451
01:16:16.939 --> 01:16:18.120
You know it's going to cost, right?
1452
01:16:18.921 --> 01:16:20.382
Yeah, but they're a premium customer.
1453
01:16:20.482 --> 01:16:22.284
I agree with you.
1454
01:16:22.304 --> 01:16:25.667
I think you could probably just say we just do 18 cuts per mowing.
1455
01:16:26.048 --> 01:16:26.248
Okay.
1456
01:16:26.268 --> 01:16:27.169
We divide it by whatever.
1457
01:16:27.429 --> 01:16:31.093
Regardless, if you're going to do that, basically what you're doing is wiping out this.
1458
01:16:31.373 --> 01:16:37.860
It's like everyone just converts to this standard 18 mowing cuts, regardless of where you're at.
1459
01:16:38.953 --> 01:16:45.856
Okay, and then what about for the customers who are like, well, I can't do biweekly for the back half of the season for three months.
1460
01:16:46.056 --> 01:16:48.317
I just upsell them then to premium?
1461
01:16:48.878 --> 01:16:49.578
Or I don't offer it?
1462
01:16:50.118 --> 01:16:53.119
I don't think there's any premium in what you're saying.
1463
01:16:53.139 --> 01:16:57.922
You're saying if I offer a 24, I want to keep it the same prices.
1464
01:16:58.162 --> 01:16:59.302
I know, I know, I know.
1465
01:16:59.322 --> 01:17:00.903
That's where it gets confusing, eh?
1466
01:17:01.443 --> 01:17:02.524
I know, I hear you.
1467
01:17:03.824 --> 01:17:07.306
I think I would just have a per cut rate if they wanted to add stuff on.
1468
01:17:08.192 --> 01:17:10.174
Okay, so if they wanted an additional cut?
1469
01:17:10.494 --> 01:17:11.575
Yeah, you have a certain dollar amount.
1470
01:17:11.895 --> 01:17:13.576
$50, $60, whatever, you make it up.
1471
01:17:14.177 --> 01:17:17.859
Like, it just would be a function of, I am trying to go get 1,000 new customers.
1472
01:17:18.020 --> 01:17:22.423
I'm not concerned about the 20 or 30 that are giving me a $50 cut.
1473
01:17:22.923 --> 01:17:23.684
That's $1,000.
1474
01:17:23.784 --> 01:17:24.064
Okay.
1475
01:17:24.825 --> 01:17:25.605
Right?
1476
01:17:25.645 --> 01:17:29.748
I think numbers, too, was like, I think we were the other way around.
1477
01:17:29.788 --> 01:17:33.752
I think, like, 60% of our customers were standard lawn, and then 40% were premium.
1478
01:17:33.772 --> 01:17:33.932
Right?
1479
01:17:35.126 --> 01:17:35.727
Like the 18 and the 24?
1480
01:17:35.747 --> 01:17:37.108
Is that what you're saying?
1481
01:17:37.168 --> 01:17:37.348
Yes.
1482
01:17:37.789 --> 01:17:38.710
Yeah.
1483
01:17:38.810 --> 01:17:40.572
18 standard, just so you know premium is 24.
1484
01:17:40.612 --> 01:17:46.798
Like just to... Because you could also just keep the premium like version of this and then give the option.
1485
01:17:46.818 --> 01:17:50.401
Like you could just say like, hey, you accepted standard snow.
1486
01:17:51.162 --> 01:17:54.743
Here's premium snow, and here's standard mowing and premium mowing.
1487
01:17:54.783 --> 01:18:01.424
Yeah, so when we call them, I could just say, yeah, when we call them, I can make it easy for the premium customers.
1488
01:18:01.804 --> 01:18:04.664
We can match your price currently that you're paying right now.
1489
01:18:04.684 --> 01:18:05.385
24 cuts.
1490
01:18:05.745 --> 01:18:09.805
No, no, for 18 cuts, and then the upsell would be the next one.
1491
01:18:10.085 --> 01:18:12.786
Not the upsell, but the other package would be the premium.
1492
01:18:13.086 --> 01:18:15.226
If you want to spend a couple hundred bucks more, we can do the premium.
1493
01:18:15.306 --> 01:18:15.566
Got it.
1494
01:18:15.666 --> 01:18:16.807
Yeah, yeah.
1495
01:18:17.227 --> 01:18:17.907
I think that's like...
1496
01:18:18.668 --> 01:18:22.430
It's splitting hairs because we're talking about probably a delta of like 50 grand.
1497
01:18:23.030 --> 01:18:29.212
I just don't think that's going to change whether or not we just focus on doing the upsell and make an extra million or two.
1498
01:18:30.713 --> 01:18:31.013
Smart.
1499
01:18:31.033 --> 01:18:31.913
Right?
1500
01:18:31.933 --> 01:18:33.194
It's like, I agree with you.
1501
01:18:33.214 --> 01:18:37.176
There's some blocking and tackling of like, do I offer premium person a premium?
1502
01:18:37.416 --> 01:18:40.177
Do I offer them just 18 and there's another additional upsell?
1503
01:18:40.517 --> 01:18:45.399
Just know that if you can say it's the same price, you will double your conversion.
1504
01:18:46.359 --> 01:18:48.100
Because you know they already have that in their budget.
1505
01:18:50.522 --> 01:18:52.504
And people don't think in terms of like annual.
1506
01:18:52.604 --> 01:18:54.046
They think in terms of monthly costs.
1507
01:18:54.326 --> 01:18:58.431
That's why everything is like your monthly lease and your monthly rent and your utilities all per month.
1508
01:18:59.212 --> 01:19:02.636
And so if you just keep that same all year round, you don't have to resell them every fall.
1509
01:19:02.656 --> 01:19:05.259
They're used to spending that money during the summer anyways.
1510
01:19:06.384 --> 01:19:07.505
Yeah, that's why I want to keep it.
1511
01:19:07.685 --> 01:19:09.567
And that's why the subscription model made sense to me.
1512
01:19:10.088 --> 01:19:13.071
And you brought me down a different perspective here that makes more sense.
1513
01:19:13.751 --> 01:19:17.795
Yeah, because as soon as you increase the number of billing cycles, you increase churn.
1514
01:19:18.516 --> 01:19:27.165
And the main thing I think that you can cut a huge amount of operational drag on is this whole idea that you got to do contract renewals throughout the summer.
1515
01:19:28.126 --> 01:19:29.307
All of that needs to be done in April.
1516
01:19:30.448 --> 01:19:34.311
You also have this huge, like when you're selling emergency services, you have scarcity you can bake into this.
1517
01:19:34.731 --> 01:19:37.574
Hey, Mr. Jones, we only have a certain amount of spots available.
1518
01:19:37.954 --> 01:19:39.835
We've got to get you locked in by this date.
1519
01:19:40.536 --> 01:19:41.697
Otherwise, the prices go up.
1520
01:19:42.958 --> 01:19:43.438
Very simple.
1521
01:19:43.818 --> 01:19:46.260
I think you can convert 80% to 90% of your current customers.
1522
01:19:46.400 --> 01:19:48.142
They're happy you just finished their snow season.
1523
01:19:48.402 --> 01:19:48.902
Let's go.
1524
01:19:49.223 --> 01:19:53.286
Locking next rate, next year's, the rates are going up unless you pay by May 1st.
1525
01:19:56.060 --> 01:19:57.660
You got so much for me to think about.
1526
01:19:58.141 --> 01:19:58.801
Not think about it.
1527
01:19:58.881 --> 01:20:00.061
It's now action.
1528
01:20:00.181 --> 01:20:01.161
It's action for sure.
1529
01:20:01.201 --> 01:20:02.121
It's a little blocking talking.
1530
01:20:02.141 --> 01:20:02.882
You'll fill in the gaps.
1531
01:20:03.122 --> 01:20:05.442
Like the compensation model for the people calling.
1532
01:20:06.182 --> 01:20:13.984
All the projections become so much easier when you know next season you already have 5,000 customers signed up in April for next snow season.
1533
01:20:15.024 --> 01:20:15.224
Okay.
1534
01:20:15.684 --> 01:20:16.084
That's good.
1535
01:20:16.645 --> 01:20:17.025
That's good.
1536
01:20:17.185 --> 01:20:18.125
I could definitely run with that.
1537
01:20:19.328 --> 01:20:23.430
And like right now, for example, your customers super happy with your service.
1538
01:20:23.730 --> 01:20:24.250
Very happy.
1539
01:20:24.390 --> 01:20:25.371
Sell them something else.
1540
01:20:25.671 --> 01:20:25.951
I know.
1541
01:20:26.191 --> 01:20:26.431
I know.
1542
01:20:26.691 --> 01:20:27.152
Absolutely.
1543
01:20:27.172 --> 01:20:27.652
Sell them the money.
1544
01:20:27.672 --> 01:20:28.572
That's where I came with the lawns.
1545
01:20:28.612 --> 01:20:29.533
You know what I used to do, right?
1546
01:20:29.553 --> 01:20:30.513
I used to roof in the summer.
1547
01:20:30.553 --> 01:20:30.853
Really?
1548
01:20:30.993 --> 01:20:31.934
I was a roofing company.
1549
01:20:31.974 --> 01:20:32.994
Dude, that's good.
1550
01:20:33.194 --> 01:20:35.015
We did 3 million three years in a row.
1551
01:20:35.955 --> 01:20:38.177
not 3 million, 1 million per year for three years.
1552
01:20:38.557 --> 01:20:39.518
We were quite successful.
1553
01:20:39.538 --> 01:20:43.680
We did an all right job, but it just didn't make sense.
1554
01:20:43.801 --> 01:20:44.761
It just didn't make sense.
1555
01:20:44.801 --> 01:20:45.682
It just didn't fit the model.
1556
01:20:45.742 --> 01:20:48.063
And I used to do landscaping project work, hardscaping.
1557
01:20:48.484 --> 01:20:56.549
So I just came up with this lawns model because I figured this was a simple, easy way to grab that snow customer base and sell them something very easy in the summer.
1558
01:20:56.989 --> 01:21:04.154
I just haven't done a really good enough job maybe on the sales end of really calling them and gunning after them.
1559
01:21:04.683 --> 01:21:08.864
I would make a really cool like 60 seconds or less video that explains all of this to them.
1560
01:21:09.364 --> 01:21:11.445
That way you can send that via text and email.
1561
01:21:11.705 --> 01:21:13.326
Get half the customers to like.
1562
01:21:13.426 --> 01:21:14.646
And I should start working on it now.
1563
01:21:14.826 --> 01:21:15.046
Yeah.
1564
01:21:15.086 --> 01:21:16.126
Oh, yeah.
1565
01:21:16.146 --> 01:21:16.306
Yeah.
1566
01:21:16.386 --> 01:21:17.167
I should start working on it now.
1567
01:21:17.187 --> 01:21:18.727
I should start right when the new year hits.
1568
01:21:19.387 --> 01:21:21.568
When we're not doing snow, get them on the phone and.
1569
01:21:21.688 --> 01:21:25.391
And if you have your salespeople dead now, this is the perfect time.
1570
01:21:25.411 --> 01:21:28.413
Like, hey, Mr. Jones, just making sure that everything was great on the last snow.
1571
01:21:28.433 --> 01:21:29.013
But awesome.
1572
01:21:29.033 --> 01:21:29.234
Good.
1573
01:21:29.574 --> 01:21:34.217
By the way, we're only offering this to our existing customers that have been really loyal with here at Northern Snow.
1574
01:21:34.618 --> 01:21:35.879
And that is for mowing service.
1575
01:21:35.899 --> 01:21:37.240
And it costs the exact same.
1576
01:21:37.520 --> 01:21:40.722
Those are a 40% discount because usually it's around 80 bucks per cut.
1577
01:21:41.042 --> 01:21:44.065
We're going to be doing it for 50 bucks a cut because you've been a loyal customer.
1578
01:21:44.105 --> 01:21:45.706
Do you want to just go ahead and pay that now?
1579
01:21:46.086 --> 01:21:48.508
And that will cover you the whole off season, like during the summer?
1580
01:21:48.528 --> 01:21:48.628
Yeah.
1581
01:21:49.950 --> 01:21:50.190
Okay.
1582
01:21:50.991 --> 01:21:51.631
Yeah, that's simple.
1583
01:21:52.031 --> 01:21:59.676
And then I could do the incentive for... What could the incentive be for the people who want to pay in full right then and there?
1584
01:21:59.816 --> 01:22:01.677
They lock in this next year's price.
1585
01:22:02.158 --> 01:22:02.778
Even for lawns?
1586
01:22:05.700 --> 01:22:06.460
What do you mean?
1587
01:22:06.480 --> 01:22:07.761
Oh, to get them this lawn?
1588
01:22:07.941 --> 01:22:09.262
I would do this two tiers, right?
1589
01:22:09.282 --> 01:22:10.783
So I was like, hey, I'm calling you.
1590
01:22:10.843 --> 01:22:12.984
First, I'm trying to lock you in for next year's snow.
1591
01:22:13.665 --> 01:22:14.425
Great, I gotcha.
1592
01:22:14.665 --> 01:22:15.246
Cool.
1593
01:22:15.286 --> 01:22:18.908
By the way, there's this other thing that for everyone that signed up, we're offering this to.
1594
01:22:20.129 --> 01:22:21.350
And it's going to be 40% off.
1595
01:22:21.450 --> 01:22:22.491
It's only our existing customers.
1596
01:22:22.751 --> 01:22:26.453
And you actually stick to that, which is like you don't take customers outside of your snow route.
1597
01:22:28.755 --> 01:22:33.217
Because you don't have to have this whole process like selling jobs over the phone for mowing and all this stuff.
1598
01:22:33.378 --> 01:22:33.918
Don't get into that.
1599
01:22:34.318 --> 01:22:38.781
Just use your pricing from snow and just a conversion game instead of a sales game.
1600
01:22:40.542 --> 01:22:47.887
Like you turn a customer service call into I'm going to sell you next year's snow and I'm going to sell you also the grass for this coming season.
1601
01:22:49.119 --> 01:22:50.621
And just match that price.
1602
01:22:50.942 --> 01:22:51.122
Yep.
1603
01:22:51.863 --> 01:22:53.566
The match of the price will literally double the conversion.
1604
01:22:53.586 --> 01:22:56.371
As soon as you start, I have to do like, oh yeah, that's great, Johnny.
1605
01:22:56.651 --> 01:22:57.433
Can you give me a price?
1606
01:22:57.453 --> 01:22:58.575
Yeah, we'll get a price to you tomorrow.
1607
01:22:58.635 --> 01:22:58.915
Boom.
1608
01:22:59.116 --> 01:22:59.677
Conversion half.
1609
01:22:59.957 --> 01:23:00.197
Done.
1610
01:23:01.059 --> 01:23:01.359
Killed.
1611
01:23:01.580 --> 01:23:01.800
Yep.
1612
01:23:02.550 --> 01:23:03.211
Killed, killed, killed.
1613
01:23:03.231 --> 01:23:04.412
Now I'm going to compare quotes.
1614
01:23:04.592 --> 01:23:06.054
No, like, it's the same cost.
1615
01:23:06.234 --> 01:23:07.415
Usually it's $80 a cut.
1616
01:23:07.675 --> 01:23:09.597
We're honoring it to $50 because you're a loyal customer.
1617
01:23:09.617 --> 01:23:09.777
Oh, man.
1618
01:23:09.797 --> 01:23:15.903
This is so, like... Because the thing is, too, is, like, we would have to go on our software and 5,000 homes.
1619
01:23:16.003 --> 01:23:21.669
We would have to go and geocode and measure all the lawns where we could just be like, it's the same price you pay for snow.
1620
01:23:21.689 --> 01:23:21.809
Yep.
1621
01:23:22.089 --> 01:23:23.090
And you're going to have 10...
1622
01:23:23.831 --> 01:23:26.593
So I call 10% that are way over and you'll adjust them next year.
1623
01:23:26.853 --> 01:23:31.817
I call and I say, Hey, we're going to lock in the same price you're paying right now currently for your snow.
1624
01:23:32.017 --> 01:23:39.262
If you sign up with us for next year, if you pay in full today, I'm also going to offer you, if you're interested, we could do your lawn for the same price.
1625
01:23:39.282 --> 01:23:40.482
You got your snow for the whole season.
1626
01:23:40.502 --> 01:23:40.983
Get the money.
1627
01:23:41.123 --> 01:23:42.063
So like be like, great.
1628
01:23:42.083 --> 01:23:42.944
You want to be awesome.
1629
01:23:43.084 --> 01:23:43.985
Almost everyone's going to say yes.
1630
01:23:44.005 --> 01:23:46.847
Cause they literally are happy right now out of the 5,000.
1631
01:23:46.867 --> 01:23:47.407
I bet 4,000.
1632
01:23:47.467 --> 01:23:49.228
We'll be like, yeah, let's convert for next year.
1633
01:23:49.308 --> 01:23:49.529
Great.
1634
01:23:49.829 --> 01:23:50.229
Yeah.
1635
01:23:50.369 --> 01:23:53.352
And then right after that, after they say yes, because you want to lock that in first.
1636
01:23:53.952 --> 01:24:00.338
Also, because you did that, we're offering this for this huge discount to those customers that did what you just did.
1637
01:24:00.678 --> 01:24:01.639
Congratulations.
1638
01:24:04.182 --> 01:24:07.865
You are now eligible to be able to have this service for 40% off.
1639
01:24:08.706 --> 01:24:10.948
Same cost of what you're currently paying for the other six months.
1640
01:24:11.288 --> 01:24:12.489
The other six months will take care of your lawn.
1641
01:24:13.350 --> 01:24:13.810
I say you get 30%.
1642
01:24:16.324 --> 01:24:17.366
Dude, that would smash.
1643
01:24:17.867 --> 01:24:18.368
That's going to suck.
1644
01:24:18.388 --> 01:24:20.412
How much cash do you have going into spring, too?
1645
01:24:20.733 --> 01:24:21.013
Oof.
1646
01:24:21.294 --> 01:24:23.418
That is a dynamite chess move right there.
1647
01:24:24.177 --> 01:24:24.918
I'm going to go for it.
1648
01:24:24.998 --> 01:24:25.718
I'm going to try it.
1649
01:24:26.219 --> 01:24:33.384
So then right now the agenda for Stefano is to just really focus on having a stronger business all year round.
1650
01:24:33.844 --> 01:24:35.225
Maybe introduce some shoveling.
1651
01:24:35.406 --> 01:24:39.389
Take a max of 500 to 1,000 customers in the fall time.
1652
01:24:39.789 --> 01:24:42.391
Probably try and get to that like 7.5 million mark.
1653
01:24:42.431 --> 01:24:44.432
Maybe grow by 50% from 5 to 7.5.
1654
01:24:44.472 --> 01:24:47.915
And really nail down a model that makes sense.
1655
01:24:48.055 --> 01:24:52.979
Do you want me working in the background on having a strong business at 300 or is that for next year?
1656
01:24:53.279 --> 01:25:00.325
I would be kind of in the back and think about building the systems and the model for a person that has $100,000.
1657
01:25:00.785 --> 01:25:04.148
Okay, so focus very, very strong and very hard on building systems.
1658
01:25:04.408 --> 01:25:04.628
Yeah.
1659
01:25:04.829 --> 01:25:09.973
Like when you have minutes downtime or like visionary time and you're like, I just want to like think about the future of the business.
1660
01:25:10.333 --> 01:25:15.358
Think about how do I do this with someone that has three to four tractors, wants to get started from my content.
1661
01:25:15.638 --> 01:25:17.160
And just nail all the things they need to do.
1662
01:25:17.180 --> 01:25:21.605
The checklist of setting their business up, setting up, getting the tractor thing, getting the insurance.
1663
01:25:21.625 --> 01:25:26.790
Like all these little – you just keep nailing that system because then once you have the business now that's doing seven and a half –
1664
01:25:30.000 --> 01:25:32.582
For software-related things, screen recording is great.
1665
01:25:33.102 --> 01:25:35.444
For everything else, checklists are great.
1666
01:25:36.745 --> 01:25:40.168
For example, when they leave our training, they have four pages of do all these things.
1667
01:25:40.868 --> 01:25:46.012
Insurance, bank account, EIN number, Department of Revenue, one thing after the other.
1668
01:25:46.512 --> 01:25:47.693
And they're like, oh, I don't know how to do that.
1669
01:25:47.753 --> 01:25:47.993
Great.
1670
01:25:48.053 --> 01:25:48.794
Scan this QR code.
1671
01:25:48.814 --> 01:25:50.235
Show the video of screen recording how to do it.
1672
01:25:51.214 --> 01:25:55.276
That's the level of you have to just figure out what all those little holes are going to be.
1673
01:25:55.396 --> 01:26:03.239
Okay, so this next year is to do what we just discussed, but then also to build procedures for what would a business look like that wants to do.
1674
01:26:03.259 --> 01:26:05.619
I don't know, say what's a good revenue mark.
1675
01:26:05.639 --> 01:26:06.160
A million.
1676
01:26:06.180 --> 01:26:06.520
A million?
1677
01:26:06.720 --> 01:26:07.060
A million.
1678
01:26:07.560 --> 01:26:09.382
They want to get to a million in two to three years.
1679
01:26:09.922 --> 01:26:10.042
Right?
1680
01:26:10.062 --> 01:26:10.723
They're going to start with...
1681
01:26:10.743 --> 01:26:13.245
The quicker you get them there, the harder they're going to stick around to go.
1682
01:26:13.505 --> 01:26:14.165
Even crazier.
1683
01:26:14.966 --> 01:26:15.466
Yep.
1684
01:26:15.666 --> 01:26:18.549
And the moat that you build for them should become better the bigger they get.
1685
01:26:18.909 --> 01:26:24.453
So, like, if you get discounts, for example, from Kubota that they can't get anywhere else, it's because they're part of your brand.
1686
01:26:24.513 --> 01:26:24.713
Yep.
1687
01:26:25.054 --> 01:26:26.615
That gets better the more tractors they get.
1688
01:26:28.341 --> 01:26:34.287
When you now have nailed the whole model of converting people from snow into mowing, you now say, okay, great.
1689
01:26:34.527 --> 01:26:34.988
I'm going to do it.
1690
01:26:35.128 --> 01:26:36.029
I got the compensation model.
1691
01:26:36.049 --> 01:26:37.150
I got the scripts that I tell you.
1692
01:26:37.730 --> 01:26:39.332
We will do all your conversion for you.
1693
01:26:39.712 --> 01:26:41.294
And if you want to do it yourself, go for it.
1694
01:26:41.614 --> 01:26:45.778
Or just pay us to do it, and we will double the conversion compared to what you're getting.
1695
01:26:46.359 --> 01:26:49.302
Now, do you think that I might end up in a place where...
1696
01:26:53.130 --> 01:26:56.752
I'm kind of thinking that I don't know how the numbers situation look.
1697
01:26:56.772 --> 01:27:00.894
I'm just a little bit concerned because our mowing has always been more than our snow blowing.
1698
01:27:01.414 --> 01:27:06.857
I'm just a little bit concerned that we might do a bunch of more revenue, but like maybe not a lot of profit.
1699
01:27:07.377 --> 01:27:07.717
That's all.
1700
01:27:07.797 --> 01:27:08.697
That's all I'm concerned about.
1701
01:27:08.718 --> 01:27:10.178
But I don't know how the numbers look, right?
1702
01:27:10.198 --> 01:27:16.681
Because if I'm just matching everybody's snow price, you know, I don't like it's kind of like a little bit of a shot in the dark.
1703
01:27:16.781 --> 01:27:17.522
But well.
1704
01:27:18.412 --> 01:27:27.574
The thing is, if you have a bunch of lawns where it's a bunch of weeds, I know at $50 a cut, you might spend 25 to 30 minutes for an operator to mow the lawn.
1705
01:27:27.594 --> 01:27:29.474
Our guys do 20 lawns in an eight-hour day.
1706
01:27:29.715 --> 01:27:30.095
One person.
1707
01:27:30.715 --> 01:27:31.495
No, two guys.
1708
01:27:31.515 --> 01:27:31.915
Two guys.
1709
01:27:32.415 --> 01:27:35.356
So, eight, 20, 20 by 50, that's $1,000 a day.
1710
01:27:35.376 --> 01:27:37.916
We have one guy in the trimmer, one guy in the zero-turner.
1711
01:27:38.096 --> 01:27:39.097
Yeah, so $1,000 a day.
1712
01:27:39.117 --> 01:27:40.477
We have bigger lawns than you guys do.
1713
01:27:40.757 --> 01:27:45.466
Right, but the 20 lawns though, even let's call it 50 bucks a pop, is $1,000.
1714
01:27:46.167 --> 01:27:47.370
If you pay them $450 or $500 in labor,
1715
01:27:50.367 --> 01:27:53.468
Just like a little bit of gas and that's pretty much it.
1716
01:27:53.668 --> 01:27:55.309
You don't have any extra fixed cost.
1717
01:27:55.329 --> 01:27:55.769
That's the thing.
1718
01:27:55.989 --> 01:27:56.749
You have the shop space.
1719
01:27:57.049 --> 01:27:58.010
You have your management team.
1720
01:27:58.290 --> 01:27:59.550
They're all getting paid no matter what.
1721
01:27:59.710 --> 01:28:01.511
Yeah, and they're doing shit all over the summer.
1722
01:28:01.811 --> 01:28:02.051
Right.
1723
01:28:02.211 --> 01:28:04.612
Like they're straight overhead during your off season.
1724
01:28:04.872 --> 01:28:05.232
Tons.
1725
01:28:05.652 --> 01:28:15.675
So like at least if you can just be zero there, that allows you to sell franchises because negative cash flow for any month of the year for a franchisee will kill them because they don't know how to do projections.
1726
01:28:16.416 --> 01:28:17.116
They don't know how to budget.
1727
01:28:17.136 --> 01:28:18.356
They don't know how to set money aside.
1728
01:28:18.536 --> 01:28:20.117
They go buy stuff when they have a bunch of money.
1729
01:28:22.038 --> 01:28:23.140
So fix that problem.
1730
01:28:23.200 --> 01:28:29.013
And then you can go to them and be like, hey, I have a model that you'll at least break even for six months, and the other months, I'll make you six figures.
1731
01:28:29.774 --> 01:28:29.914
Okay.
1732
01:28:29.935 --> 01:28:30.055
Okay.
1733
01:28:31.288 --> 01:28:33.049
Wow, lots, lots, lots.
1734
01:28:33.069 --> 01:28:33.729
You taught me there.
1735
01:28:33.889 --> 01:28:35.930
I'm excited because I just got clarity.
1736
01:28:35.950 --> 01:28:36.790
That's why I'm excited.
1737
01:28:37.190 --> 01:28:38.371
So it makes a lot of sense.
1738
01:28:38.431 --> 01:28:43.273
I know exactly what to do when I get home and what I need to work on for this 2026.
1739
01:28:43.833 --> 01:28:54.938
And in the background of working on that, when I do have that, you know, visionary time, when I have that little bit of outside the box thinking, I'm going to work really strong on how to successfully build a $1 million business the same way I did in 12 months.
1740
01:28:55.098 --> 01:28:55.258
Yep.
1741
01:28:55.378 --> 01:28:56.438
Just try to think through that frame.
1742
01:28:56.538 --> 01:28:56.698
Yep.
1743
01:28:56.778 --> 01:29:00.839
And then towards the end of the year when you're like, okay, I think I got like the business is purring.
1744
01:29:01.119 --> 01:29:02.159
It's way more profitable.
1745
01:29:02.179 --> 01:29:03.420
I have quite a bit of cash at the bank.
1746
01:29:03.440 --> 01:29:05.600
I actually need to deploy some of it from a tax perspective.
1747
01:29:06.080 --> 01:29:09.821
That's when you say, okay, I'm going to put a survey out on my channel.
1748
01:29:09.881 --> 01:29:11.241
I've been growing the channel the whole time.
1749
01:29:11.261 --> 01:29:12.461
It'll be doing great.
1750
01:29:13.061 --> 01:29:18.122
And you simply say, hey, if I was to start a northern snow in your market, would you want to own it with me?
1751
01:29:19.003 --> 01:29:20.603
If you're interested, sign up for this webinar.
1752
01:29:21.163 --> 01:29:21.383
Cool.
1753
01:29:21.543 --> 01:29:23.745
On the webinar, you just start talking numbers, what you're doing.
1754
01:29:23.765 --> 01:29:24.585
You show your P&L.
1755
01:29:24.625 --> 01:29:28.108
You do some more in-depth stuff that you're not going to ever do on the main channel.
1756
01:29:29.048 --> 01:29:32.150
And then from that interest, you'll know, okay, do I franchise?
1757
01:29:32.330 --> 01:29:34.432
But you've got to know you're going to have 10 locations right after it.
1758
01:29:35.272 --> 01:29:37.534
If you don't, it's just like you're stalemating.
1759
01:29:37.914 --> 01:29:38.114
Yeah.
1760
01:29:38.615 --> 01:29:39.615
You want to triangle for 10.
1761
01:29:40.015 --> 01:29:41.977
And you would do this in the new year, 2027?
1762
01:29:42.477 --> 01:29:43.638
Like that's when you'd start this?
1763
01:29:45.410 --> 01:29:46.771
If I work on this for the next year.
1764
01:29:46.791 --> 01:29:47.151
Yep.
1765
01:29:47.551 --> 01:29:47.711
Yep.
1766
01:29:47.911 --> 01:29:49.212
And then you train them in the spring.
1767
01:29:49.232 --> 01:29:58.516
Pretty much the last quarter of the year, which is October, November, December, I would have enough time to probably get prepped for hitting the ground running in the new year.
1768
01:29:58.876 --> 01:30:01.877
And I also have the most traction on media during the winter.
1769
01:30:02.057 --> 01:30:03.798
I've proven myself three years in a row.
1770
01:30:03.938 --> 01:30:04.058
Yep.
1771
01:30:04.238 --> 01:30:07.660
So that's when the runway would be, like, great for a big ass to say...
1772
01:30:08.360 --> 01:30:09.341
Who wants to do this with me?
1773
01:30:09.361 --> 01:30:11.662
This time next year, if you're like, we crushed it.
1774
01:30:11.682 --> 01:30:15.525
We did $7 million to $8 million in revenue, way more profitable, same amount of assets.
1775
01:30:15.585 --> 01:30:16.005
Let's go.
1776
01:30:16.025 --> 01:30:21.589
And you say, okay, I now have the model for a million that I think I can get people to with high level of confidence.
1777
01:30:22.070 --> 01:30:24.091
That's when this time next year you do a survey.
1778
01:30:25.792 --> 01:30:26.693
Put them into a webinar.
1779
01:30:27.854 --> 01:30:29.035
I'm thinking about franchising.
1780
01:30:29.075 --> 01:30:33.558
This is not a solicitation by no means, but if you're thinking about joining Northern, hop in here.
1781
01:30:34.642 --> 01:30:35.443
Give them the information.
1782
01:30:35.763 --> 01:30:39.546
If you think this is something that might be for you and you have $100,000, let me know.
1783
01:30:40.567 --> 01:30:40.807
Cool.
1784
01:30:41.167 --> 01:30:42.928
And then you'll get your franchise disclosure document.
1785
01:30:42.968 --> 01:30:44.370
All that stuff will cost you $100,000.
1786
01:30:44.630 --> 01:30:45.691
Take you three to four months.
1787
01:30:45.771 --> 01:30:48.213
I can give you all the lawyers in Canada and the U.S. to get it done for you.
1788
01:30:48.653 --> 01:30:49.133
Awesome.
1789
01:30:49.614 --> 01:30:50.554
And that's not a big problem.
1790
01:30:51.255 --> 01:30:53.296
That's if you're telling me to take the franchise, bro.
1791
01:30:53.316 --> 01:30:54.337
You didn't expect that, eh?
1792
01:30:55.118 --> 01:30:56.359
I kind of actually anticipate it.
1793
01:30:56.599 --> 01:30:59.381
Not with me, but just like saying it to somebody.
1794
01:30:59.441 --> 01:30:59.761
Oh, yeah.
1795
01:30:59.781 --> 01:31:02.303
I think you're the first person I've ever told that they should franchise.
1796
01:31:03.845 --> 01:31:04.245
I think so.
1797
01:31:04.705 --> 01:31:05.866
Now, Brandon, I want to talk about brand.
1798
01:31:05.926 --> 01:31:07.506
I'm Northern Snow and Northern Lawns.
1799
01:31:07.947 --> 01:31:12.669
I want to consolidate down to maybe just Northern and then Snow and Lawn underneath as one brand.
1800
01:31:12.689 --> 01:31:17.611
Because right now I've diversified them as two different medias, two different everything.
1801
01:31:19.117 --> 01:31:23.821
It's like you do an Augusta Snow one color and Augusta Lawn another color, and they're two different brands.
1802
01:31:24.221 --> 01:31:31.087
The Yeti compares them, I mean, amalgamates them together, compensates them together, but one has its own icon, one has the other.
1803
01:31:31.728 --> 01:31:36.532
I want to consolidate down to just Northern, and then as a sub name, just Snow and Lawn underneath.
1804
01:31:37.092 --> 01:31:40.775
I want to go down to one brand, because right now I have them as two different brands, bro.
1805
01:31:41.115 --> 01:31:42.977
Two different businesses I have on paper.
1806
01:31:42.997 --> 01:31:44.298
I'm just consolidating right now.
1807
01:31:44.598 --> 01:31:45.980
I made a lot of mistakes in my journey.
1808
01:31:46.000 --> 01:31:47.080
I don't know if that's a big deal.
1809
01:31:47.881 --> 01:31:50.482
Because all of your media is coming from northern snow.
1810
01:31:50.662 --> 01:31:52.082
Like the snow is your driver.
1811
01:31:52.542 --> 01:31:52.802
It is.
1812
01:31:53.022 --> 01:31:53.543
And so like.
1813
01:31:54.383 --> 01:31:55.643
If I just named it northern.
1814
01:31:55.923 --> 01:31:57.904
We don't have like Augusta winter services.
1815
01:31:58.224 --> 01:31:58.384
No.
1816
01:31:58.684 --> 01:32:02.525
We do winter services to make sure we don't lose our shirt on the lawn care side.
1817
01:32:02.645 --> 01:32:05.366
But if I called it northern snow and we did grass, it kind of wouldn't make sense.
1818
01:32:06.526 --> 01:32:09.707
Unless your whole model is you get snow customers and then you upsell them.
1819
01:32:09.787 --> 01:32:13.348
Like the only reason they're a mowing customer is because they're a snow customer.
1820
01:32:13.867 --> 01:32:14.487
Yeah, that would work.
1821
01:32:14.827 --> 01:32:15.027
Right?
1822
01:32:15.047 --> 01:32:17.248
It's like we don't have Augusta Wind Services.
1823
01:32:17.749 --> 01:32:18.889
We don't have Augusta Snow Removal.
1824
01:32:19.109 --> 01:32:24.051
We upsell our lawn care customers into those services to protect our bacon during the off-season.
1825
01:32:27.613 --> 01:32:27.813
Wow.
1826
01:32:28.493 --> 01:32:37.057
Also because then when you franchise, it makes a lot of sense because everyone in Canada immediately knows what you're talking about, northern snow, and everyone in the north side of the U.S. is the people you're going after.
1827
01:32:37.357 --> 01:32:39.658
Like your model isn't lawns.
1828
01:32:40.938 --> 01:32:42.239
It is built for the person with snow.
1829
01:32:43.177 --> 01:32:49.541
I just target them and say the whole reason I'm different than everyone else is because I've figured out the lawn thing too and how to convert people over.
1830
01:32:50.502 --> 01:32:51.763
So just run with northern snow.
1831
01:32:51.803 --> 01:32:52.083
I would.
1832
01:32:52.804 --> 01:32:54.485
But then what's the trucks look like?
1833
01:32:54.545 --> 01:32:55.125
It's all snow.
1834
01:32:55.926 --> 01:32:56.206
Yeah.
1835
01:32:56.326 --> 01:32:57.027
Lean into snow.
1836
01:32:57.207 --> 01:32:59.308
Because that's the thing that differentiates you from like Augusta.
1837
01:33:00.529 --> 01:33:03.811
Like we go hard on lawn care and then we figure out snow to make it work.
1838
01:33:04.192 --> 01:33:11.317
You go hard on snow, you'll capture way better penetration in Canada and the northern states of the U.S. that have that problem for four to six months of the year.
1839
01:33:12.119 --> 01:33:13.721
Because they'll identify as you as a solution.
1840
01:33:15.963 --> 01:33:16.263
Damn.
1841
01:33:16.684 --> 01:33:18.365
I never even thought about that.
1842
01:33:18.405 --> 01:33:20.468
Right now I got my marketing girl and artwork.
1843
01:33:20.508 --> 01:33:22.790
Not marketing, but my artwork girl who does.
1844
01:33:23.110 --> 01:33:24.311
Have you seen our Yeti and stuff?
1845
01:33:24.351 --> 01:33:25.352
Yeah, on the website.
1846
01:33:25.372 --> 01:33:28.556
Yeah, and I took inspiration from you doing Augusta with the dog.
1847
01:33:28.576 --> 01:33:29.296
Isn't that your dog?
1848
01:33:29.617 --> 01:33:29.697
No.
1849
01:33:29.717 --> 01:33:30.658
Your dog when you were growing up?
1850
01:33:30.718 --> 01:33:30.958
No.
1851
01:33:31.138 --> 01:33:32.239
I thought that was the story.
1852
01:33:32.460 --> 01:33:32.660
No.
1853
01:33:32.840 --> 01:33:34.783
No, anyways, Mascot's great for home service.
1854
01:33:35.003 --> 01:33:37.266
It makes a homeowner feel very invited.
1855
01:33:37.586 --> 01:33:41.852
So we made a Yeti, and the Yeti's done exceptionally well, and it's done great, and our customers love it.
1856
01:33:42.152 --> 01:33:43.654
And we've used it for both businesses.
1857
01:33:43.714 --> 01:33:47.219
In the summer, we dress them up in shorts with sunglasses, tanning in a beach chair.
1858
01:33:47.559 --> 01:33:51.124
And in the winter, we get them all dressed up behind the snowblower, et cetera, or with a shovel.
1859
01:33:51.764 --> 01:33:53.606
And this Yeti has gone very far for us.
1860
01:33:53.686 --> 01:33:57.429
But when we look at both businesses, Northern Snow has its own tractor icon.
1861
01:33:57.729 --> 01:33:59.711
Northern Lawns has its own mower icon.
1862
01:33:59.891 --> 01:34:03.374
They have two different icons and one's a green pallet tone.
1863
01:34:03.394 --> 01:34:04.775
The other one's a blue pallet tone.
1864
01:34:05.155 --> 01:34:08.058
I've made two different businesses for the same customer.
1865
01:34:08.218 --> 01:34:10.360
Yeah, I would lean into Snow.
1866
01:34:11.143 --> 01:34:12.184
Just all northern snow.
1867
01:34:12.284 --> 01:34:19.008
Yeah, because you think about, okay, when you franchise, there is no other snow service that's franchised.
1868
01:34:19.348 --> 01:34:20.348
That's really popular.
1869
01:34:20.869 --> 01:34:21.909
No, you want to be known for that.
1870
01:34:21.929 --> 01:34:29.894
Why do you, like, otherwise grounds guys, as big up in Canada, is like, well, they do snow, but they go after lawn care and snow is supplementary.
1871
01:34:30.254 --> 01:34:35.057
You say, snow is my thing, and I figured out how to make sure you don't lose money during the summer.
1872
01:34:35.657 --> 01:34:36.538
So what about northern?
1873
01:34:37.378 --> 01:34:37.959
Just northern?
1874
01:34:38.039 --> 01:34:38.159
No.
1875
01:34:38.179 --> 01:34:38.259
No.
1876
01:34:39.110 --> 01:34:39.370
I don't know.
1877
01:34:39.450 --> 01:34:40.151
I like Lauren and Sarah.
1878
01:34:40.191 --> 01:34:45.193
I think it puts you in a blue ocean, which is no one else is going after it, and that is snow service.
1879
01:34:45.373 --> 01:34:48.835
Like, I want people to look at you and be like, they're the snow removal brand.
1880
01:34:50.476 --> 01:34:57.000
And then you figure out how to make sure the metrics and the unit economics work for your franchisees around the summer.
1881
01:34:58.040 --> 01:34:59.061
Cool.
1882
01:34:59.081 --> 01:35:04.264
Then you could become the, you could say this, you're the biggest residential snow company in the world.
1883
01:35:04.564 --> 01:35:08.406
You can get that much faster than saying, we're the biggest lawn and snow, like,
1884
01:35:09.690 --> 01:35:10.231
Don't even bother.
1885
01:35:12.194 --> 01:35:12.695
It's your niche.
1886
01:35:12.755 --> 01:35:14.057
Again, your media.
1887
01:35:14.097 --> 01:35:15.679
It's like everyone's looking at you for the snow.
1888
01:35:15.799 --> 01:35:17.882
Go after the snow and they'll come for that.
1889
01:35:18.163 --> 01:35:22.649
And then you say, by the way, the reason everyone else in this industry stinks is because they can't figure out the summer.
1890
01:35:22.870 --> 01:35:23.731
I figured that out for you.
1891
01:35:23.831 --> 01:35:24.612
Join my franchise.
1892
01:35:25.424 --> 01:35:28.287
Don, you're cleaning up my inventory, bro.
1893
01:35:28.868 --> 01:35:31.831
You're cleaning up my inventory of questions and problems.
1894
01:35:32.352 --> 01:35:37.657
It feels good always speaking to somebody that's just, like, you know, gone through a lot of it and has the answers.
1895
01:35:37.677 --> 01:35:42.362
Like, I told you before when I first seen you this morning, like, I just sometimes feel so lost and so alone.
1896
01:35:42.382 --> 01:35:46.507
It doesn't matter that you got 800,000 subscribers between all your platforms.
1897
01:35:46.567 --> 01:35:47.007
It's like...
1898
01:35:47.708 --> 01:35:53.129
sometimes you need somebody, you know, these people are looking not only for entertainment, but sometimes they're looking for, I don't know.
1899
01:35:53.149 --> 01:35:53.989
They're just inspired.
1900
01:35:54.289 --> 01:35:54.570
Right.
1901
01:35:54.690 --> 01:35:58.250
Like I'm inspiring a lot of people right now, yourself, you're doing the same thing.
1902
01:35:58.290 --> 01:36:03.451
And I hate feeling lost because I want to be able to give the best I can to those people.
1903
01:36:03.511 --> 01:36:08.112
And I want to make sure that they're seeing me grow too, because then I just kind of become boring.
1904
01:36:08.292 --> 01:36:08.453
Yeah.
1905
01:36:08.493 --> 01:36:10.133
And your, your audience will grow with you.
1906
01:36:10.253 --> 01:36:10.493
Right.
1907
01:36:10.833 --> 01:36:15.274
So like, especially right now, like you will eventually, you know,
1908
01:36:15.772 --> 01:36:17.813
love business more than the entertainment and the views.
1909
01:36:18.273 --> 01:36:19.534
So you saw this with Alex, right?
1910
01:36:19.894 --> 01:36:23.155
Heavy views, very, and he's like, forget that.
1911
01:36:23.396 --> 01:36:24.776
I just want to talk about business.
1912
01:36:25.176 --> 01:36:26.077
And I'm not saying that you're gonna do that.
1913
01:36:26.097 --> 01:36:27.197
You should do that, I'm not saying that.
1914
01:36:27.518 --> 01:36:28.058
I'm saying,
1915
01:36:29.242 --> 01:36:29.763
That's okay.
1916
01:36:29.783 --> 01:36:33.327
Like, that evolution can happen as a creator, and that's fine.
1917
01:36:33.747 --> 01:36:40.815
Yeah, for me, like, even right now with our, like, we are booming the hardest we've ever boomed ever.
1918
01:36:40.855 --> 01:36:44.940
Like, right now, currently, me sitting in this chair, this is all-time high.
1919
01:36:44.960 --> 01:36:46.622
I've never seen the channels go this hard.
1920
01:36:46.642 --> 01:36:46.742
Yeah.
1921
01:36:47.443 --> 01:36:49.885
And I'm here talking to you, but I don't give a **** about both.
1922
01:36:50.045 --> 01:36:51.186
Like, I came as quick as possible.
1923
01:36:51.206 --> 01:36:52.407
We're doing a Vlogmas right now.
1924
01:36:52.467 --> 01:36:54.008
I should be home, still filming every day.
1925
01:36:54.729 --> 01:36:56.690
We just had the biggest snowstorm of the year yesterday.
1926
01:36:57.111 --> 01:37:01.154
You know, there's a lot of operational juiciness happening at home.
1927
01:37:01.934 --> 01:37:05.197
Like, I should be home, but this matters way more to me.
1928
01:37:05.217 --> 01:37:08.360
And that's why as soon as you said December 22nd, like, I took your first date, right?
1929
01:37:08.460 --> 01:37:08.620
Yeah.
1930
01:37:09.120 --> 01:37:12.143
I took it because this is important to me and this is actually what I care about more.
1931
01:37:12.203 --> 01:37:13.405
It's not really about the views.
1932
01:37:13.465 --> 01:37:15.347
It's just cool to celebrate what's going on.
1933
01:37:16.027 --> 01:37:18.110
I do really care about the business more than anything.
1934
01:37:18.290 --> 01:37:21.233
It's just I am – I like operations a lot.
1935
01:37:21.413 --> 01:37:22.714
Like I like it a lot.
1936
01:37:22.734 --> 01:37:23.655
I love the human aspect.
1937
01:37:23.675 --> 01:37:28.400
Like I could go out all summer and just hang out with the boys and go cut grass and do shit with them and just vlog, you know?
1938
01:37:28.440 --> 01:37:28.661
Yeah, yeah.
1939
01:37:29.922 --> 01:37:39.973
It's been so easy and second nature to just have a guy with a camera film me doing what I love, which is business and being around the camaraderie and the guys and the culture.
1940
01:37:40.533 --> 01:37:42.856
So for me, it really hasn't been about that.
1941
01:37:43.296 --> 01:37:46.460
What I feel really stuck on is what happens next.
1942
01:37:46.560 --> 01:37:48.081
You know, I'm like getting overwhelmed.
1943
01:37:48.121 --> 01:37:49.563
And your audience will feel the same way.
1944
01:37:49.823 --> 01:37:50.183
Yeah.
1945
01:37:50.203 --> 01:37:52.205
So there's people that watch me from way back when.
1946
01:37:52.405 --> 01:37:53.206
Now it's six, seven, eight years.
1947
01:37:53.286 --> 01:37:57.630
They have their own business and they're running into problems of like general managers, multiple locations.
1948
01:37:57.650 --> 01:38:01.993
It's like the books, if you actually look at them, it's like I was just solving the problems for my audience.
1949
01:38:02.013 --> 01:38:03.555
I was like two to three years behind me.
1950
01:38:04.115 --> 01:38:04.275
Right.
1951
01:38:04.295 --> 01:38:06.697
And so like people will have watched your videos for a year, two years.
1952
01:38:07.098 --> 01:38:08.319
In a year, they've started their own.
1953
01:38:08.339 --> 01:38:09.240
They have two or three tractors.
1954
01:38:09.260 --> 01:38:10.581
Like, OK, how do you do hiring?
1955
01:38:10.741 --> 01:38:11.482
Because I'm really...
1956
01:38:12.102 --> 01:38:17.664
thrilled with your 40 tractors and 50 tractors out there doing snow, but I need to learn how to hire someone.
1957
01:38:18.505 --> 01:38:24.667
And it's like your products, even when we're going from merch down the road to a franchise, is like you're just solving the problem of your audience.
1958
01:38:24.687 --> 01:38:25.787
Right now, they're looking for community.
1959
01:38:25.807 --> 01:38:27.368
They're looking like, I want to rep the merch.
1960
01:38:28.008 --> 01:38:28.649
I'm inspired.
1961
01:38:29.149 --> 01:38:31.870
In three years, in two years, they'll have their own business.
1962
01:38:32.720 --> 01:38:34.522
And so you'll merge your content with them.
1963
01:38:35.342 --> 01:38:38.385
And sales team, or not sales team, sorry.
1964
01:38:38.666 --> 01:38:39.987
That was well said, actually.
1965
01:38:40.007 --> 01:38:41.108
I never even thought about that.
1966
01:38:41.248 --> 01:38:41.949
Yeah, that is true.
1967
01:38:42.309 --> 01:38:43.990
You grow with them, really, ultimately.
1968
01:38:44.111 --> 01:38:47.053
And if you look at your average age of your viewership, it'll follow you, too.
1969
01:38:47.454 --> 01:38:48.274
Yeah, yeah, yeah.
1970
01:38:48.294 --> 01:38:49.175
It's like literally.
1971
01:38:49.195 --> 01:38:50.236
We have a lot of kids right now.
1972
01:38:50.296 --> 01:38:50.837
Yeah, yeah.
1973
01:38:50.917 --> 01:38:52.438
But watch in five years.
1974
01:38:52.578 --> 01:38:53.479
They'll be five years older.
1975
01:38:54.040 --> 01:38:55.361
Your average age will just stay there.
1976
01:38:55.461 --> 01:38:56.802
Yeah, we got a lot of kids right now.
1977
01:38:56.822 --> 01:38:59.324
If you look at my average age, because I've been doing it for like eight years.
1978
01:39:00.304 --> 01:39:02.586
If you look at the average age, it just followed my age.
1979
01:39:03.327 --> 01:39:05.148
So now my average age is like 25 to 35.
1980
01:39:05.288 --> 01:39:06.169
I'm 30.
1981
01:39:07.069 --> 01:39:09.011
But if you go back five years, it was 20 to 30.
1982
01:39:09.251 --> 01:39:11.192
Yeah, it absolutely was.
1983
01:39:12.433 --> 01:39:14.455
I had a thought there for something else.
1984
01:39:15.195 --> 01:39:16.176
You helped me with brand.
1985
01:39:16.376 --> 01:39:17.376
I should just go Northern Snow.
1986
01:39:17.397 --> 01:39:18.497
I should be known as Northern Snow.
1987
01:39:18.517 --> 01:39:19.298
That's what everybody knows me for.
1988
01:39:19.318 --> 01:39:19.958
That's what everybody loves.
1989
01:39:19.978 --> 01:39:20.819
You're going to be the snow guy.
1990
01:39:20.859 --> 01:39:21.799
That's where other continents are.
1991
01:39:21.839 --> 01:39:22.580
That's where all my hookups are.
1992
01:39:22.600 --> 01:39:23.560
I'm the king of the north.
1993
01:39:23.880 --> 01:39:24.741
I'm the snow guy.
1994
01:39:24.941 --> 01:39:26.302
When you think snow, you think you.
1995
01:39:27.262 --> 01:39:28.883
The same way people think lawns, they think Mike.
1996
01:39:29.724 --> 01:39:31.045
You want them to think snow when they think you.
1997
01:39:31.345 --> 01:39:31.905
Thank you, man.
1998
01:39:32.185 --> 01:39:35.007
Yeah, when I think lawns, I think of Mike Andes.
1999
01:39:35.167 --> 01:39:35.588
Yeah, yeah.
2000
01:39:35.668 --> 01:39:36.988
It's like you just want to be the snow guy.
2001
01:39:37.669 --> 01:39:38.469
Don't try to dilute it.
2002
01:39:38.729 --> 01:39:41.531
If I was tomorrow, I'm going to do an HVAC, Augusta HVAC.
2003
01:39:41.551 --> 01:39:42.232
You're like, whoa, what?
2004
01:39:42.312 --> 01:39:42.552
What?
2005
01:39:43.389 --> 01:39:43.589
Right?
2006
01:39:43.609 --> 01:39:45.370
Like, don't care what the logo is.
2007
01:39:45.390 --> 01:39:46.651
Like, I saw you as the lawn guy.
2008
01:39:46.671 --> 01:39:48.311
So should I re-wrap my trucks right now?
2009
01:39:48.972 --> 01:39:50.893
They're going to be used for snow half the year anyways.
2010
01:39:51.033 --> 01:39:52.053
So wrap them blue.
2011
01:39:52.073 --> 01:39:53.154
I would just wrap them blue, dude.
2012
01:39:53.354 --> 01:39:54.294
You want to be northern snow.
2013
01:39:54.514 --> 01:39:56.055
Like, think about even northern lawns.
2014
01:39:56.295 --> 01:39:59.196
Where all is northern, where there's snow.
2015
01:39:59.336 --> 01:40:00.317
Yeah, you want it to be blue.
2016
01:40:01.105 --> 01:40:01.305
Yeah.
2017
01:40:01.745 --> 01:40:02.565
Okay, done.
2018
01:40:02.745 --> 01:40:03.106
Solved.
2019
01:40:03.426 --> 01:40:04.886
You answered a lot of questions for me.
2020
01:40:05.026 --> 01:40:05.466
Awesome, man.
2021
01:40:05.486 --> 01:40:06.146
You're going to crush it.
2022
01:40:06.386 --> 01:40:06.767
Thank you.
2023
01:40:07.567 --> 01:40:07.787
Thank you.
2024
01:40:07.827 --> 01:40:22.671
I think the biggest thing is your level of care comes across in your content, and that's what makes a good franchisor is someone who actually cares about the people, and I know you do, whether it be your team and even the people that would eventually become franchisees, and most people don't.
2025
01:40:22.891 --> 01:40:23.911
I just know that.
2026
01:40:24.151 --> 01:40:30.053
I can tell when someone has sales breath and they're trying to sell a franchise, and they just see that as the fastest way to make money.
2027
01:40:30.113 --> 01:40:30.633
It's not.
2028
01:40:31.033 --> 01:40:35.979
The fastest way to make money is licensing, where you say, we will do it for you and you'll pay us and you're off to the races.
2029
01:40:36.620 --> 01:40:44.288
The amount of time it takes to build a franchise is so much harder and more legally intensive and it will drain your energy so much.
2030
01:40:45.009 --> 01:40:48.994
But that community becomes 10 times stronger because you're wearing the same brand.
2031
01:40:50.075 --> 01:40:52.097
Like Tractor Boys becomes a real deal.
2032
01:40:52.558 --> 01:40:52.778
Yeah.
2033
01:40:53.139 --> 01:40:53.859
Oh, yeah, big time.
2034
01:40:54.060 --> 01:40:55.761
The merchandise would go a long way with it.
2035
01:40:55.962 --> 01:41:01.928
Like you get people in the door with like free content, then merch, and then you join a franchise.
2036
01:41:01.968 --> 01:41:02.549
There's your funnel.
2037
01:41:02.829 --> 01:41:06.734
I think that's like the thing that we have to figure out the most when it comes like how do we build this funnel out?
2038
01:41:06.754 --> 01:41:08.255
So, for example, it was like you watch –
2039
01:41:09.182 --> 01:41:10.283
Content on YouTube for free.
2040
01:41:10.443 --> 01:41:10.703
Great.
2041
01:41:11.063 --> 01:41:12.604
Okay, watch my courses for free.
2042
01:41:13.024 --> 01:41:13.925
But now I have your email.
2043
01:41:14.505 --> 01:41:19.128
Then it's like, okay, I can give you a template for a door hanger or flyer.
2044
01:41:19.148 --> 01:41:19.428
$49.
2045
01:41:19.728 --> 01:41:19.948
Great.
2046
01:41:20.569 --> 01:41:21.690
Or even before that, a book.
2047
01:41:22.050 --> 01:41:22.690
$10, whatever.
2048
01:41:22.890 --> 01:41:25.972
Like, there's all these layers before finally it's like, okay, joining software.
2049
01:41:25.992 --> 01:41:28.294
Then it's longer web design.
2050
01:41:28.334 --> 01:41:29.234
Then it's franchise.
2051
01:41:29.754 --> 01:41:33.537
Which that franchise lifetime value is almost half a million dollars.
2052
01:41:34.177 --> 01:41:36.558
But that's after layers of getting them through the funnel.
2053
01:41:36.978 --> 01:41:39.338
So you're building out your funnel, right?
2054
01:41:39.719 --> 01:41:42.059
And so there'll be other things you do potentially.
2055
01:41:42.079 --> 01:41:44.040
And you have the software in there, for example.
2056
01:41:44.300 --> 01:41:49.221
But you're just building out a funnel to get – the people who want to get closest to me are going to be at the bottom of this funnel.
2057
01:41:49.241 --> 01:41:50.361
Oh, I got so much clarity.
2058
01:41:50.401 --> 01:41:51.022
I feel great.
2059
01:41:52.917 --> 01:41:59.482
Is there any way this might be too much to ask, but just like kind of like how you went with Anytime Fitness and you paid to be a franchisor.
2060
01:41:59.522 --> 01:42:05.065
Like, is there any way I could like pay for some of your resources to help help me with my scaling process?
2061
01:42:05.085 --> 01:42:07.667
Just text me if you ever have a question or anything.
2062
01:42:07.707 --> 01:42:08.688
I don't want to bug you, man.
2063
01:42:08.828 --> 01:42:10.149
Well, I have, I do coaching.
2064
01:42:10.329 --> 01:42:13.311
It's, but don't have to like text me if you have a quick question.
2065
01:42:13.331 --> 01:42:14.732
If you need a lawyer, dude, I'll hook you up.
2066
01:42:14.772 --> 01:42:16.413
I know all the bad ones and all the good ones.
2067
01:42:16.573 --> 01:42:17.473
Okay, good, good, good.
2068
01:42:17.493 --> 01:42:18.314
So if you need an accountant.
2069
01:42:18.334 --> 01:42:23.817
I'm just like looking for kind of a base to start off of like being like, okay, oh, this is how Augusta does it.
2070
01:42:23.837 --> 01:42:29.240
Okay, this is how I could implement my own way of doing it on the snow side and kind of seeing how you go about your processes.
2071
01:42:29.280 --> 01:42:29.801
Yeah, like when you.
2072
01:42:29.821 --> 01:42:34.203
Because I want to build that package for that company that wants to go from zero to one million and franchise with me.
2073
01:42:34.223 --> 01:42:38.146
I'm going to work on that in the background while making these big changes for the company.
2074
01:42:38.166 --> 01:42:38.266
Yeah.
2075
01:42:38.426 --> 01:42:40.909
This time next year, just come back.
2076
01:42:41.149 --> 01:42:49.057
And we'll just be like, hey, now we actually, the business is another year of in-profit mode, more cash, it's super refined, higher lifetime value.
2077
01:42:49.478 --> 01:42:50.278
You now have the bandwidth.
2078
01:42:50.299 --> 01:42:51.640
You've figured out the $1 million model.
2079
01:42:51.820 --> 01:42:53.622
How to actually just go do the blocking and tackling?
2080
01:42:53.642 --> 01:42:55.684
Dude, give me a day and we'll walk through it.
2081
01:42:56.045 --> 01:43:00.749
Like franchise disclosure document, operations manual, franchise agreement, US, Canada, like...
2082
01:43:01.488 --> 01:43:01.868
It's not hard.
2083
01:43:01.968 --> 01:43:02.829
Clockwork for you.
2084
01:43:03.669 --> 01:43:04.510
Paying the employees.
2085
01:43:04.930 --> 01:43:09.713
You recommend me getting on the same P4P model or stick to my contract base that I do right now?
2086
01:43:09.773 --> 01:43:21.781
Because now if I'm gunning towards this big operational conglomerate of having a very intense summer side too, I need guys full-time all year round, which means no more six-month contract.
2087
01:43:21.941 --> 01:43:23.282
They go to a full-time position.
2088
01:43:23.302 --> 01:43:27.145
So are they employees up there or are they contractors?
2089
01:43:27.165 --> 01:43:27.265
Yeah.
2090
01:43:27.735 --> 01:43:28.817
No, they're all employees.
2091
01:43:28.837 --> 01:43:30.880
They're just on a flat rate contract.
2092
01:43:30.900 --> 01:43:31.120
Cool.
2093
01:43:31.180 --> 01:43:32.683
Just flip them over during the summer.
2094
01:43:32.903 --> 01:43:33.364
Okay.
2095
01:43:33.384 --> 01:43:34.185
Same cost, right?
2096
01:43:34.205 --> 01:43:35.647
So that's nice about the pricing.
2097
01:43:36.028 --> 01:43:39.033
You also bake in the fact that, hey, guys, you made X amount during the winter.
2098
01:43:39.293 --> 01:43:40.675
You're going to make X amount during the summer.
2099
01:43:41.356 --> 01:43:42.218
So pretty much a salary.
2100
01:43:42.957 --> 01:43:45.600
Well, you're basically going to match whatever they're making in the winter.
2101
01:43:45.640 --> 01:43:45.840
Yeah.
2102
01:43:46.100 --> 01:43:46.340
Right?
2103
01:43:46.380 --> 01:43:50.104
And so, and I also think there are going to be some operators that want to have six months off.
2104
01:43:50.604 --> 01:43:54.869
I was always amazed when guys were like, you know, I don't need anything during the winter.
2105
01:43:54.889 --> 01:43:56.650
I'm like, okay, come back during the spring.
2106
01:43:57.071 --> 01:44:00.074
That's so weird because I'm the complete opposite.
2107
01:44:00.094 --> 01:44:02.216
We're always thinking like how do we give people full-time work?
2108
01:44:02.276 --> 01:44:04.458
And some of them are like, no, I want to work crazy amounts of hours.
2109
01:44:04.698 --> 01:44:06.279
That's like us for the winter in Sault Ste.
2110
01:44:06.299 --> 01:44:06.699
Marie.
2111
01:44:06.739 --> 01:44:07.720
There's so many guys.
2112
01:44:08.080 --> 01:44:12.383
Like, I will say that about half of our guys will just be like, nah, dude, I'm good.
2113
01:44:12.403 --> 01:44:13.624
I got my own thing going on in the summer.
2114
01:44:13.804 --> 01:44:15.285
And some of them won't like to do mowing.
2115
01:44:15.866 --> 01:44:16.586
So they'll bail too.
2116
01:44:16.986 --> 01:44:17.207
Yeah.
2117
01:44:17.987 --> 01:44:20.369
So you literally just, like, we just, now it's, like, very easy.
2118
01:44:20.389 --> 01:44:22.210
We almost never have to lay people off.
2119
01:44:22.250 --> 01:44:23.871
We just say, hey, do you want to leave during this time?
2120
01:44:23.891 --> 01:44:25.772
And we guaranteed position to come back during this time.
2121
01:44:25.792 --> 01:44:27.534
And half of them are like, yep, we just have that.
2122
01:44:28.494 --> 01:44:30.315
Oh, Mike, man, you're going to change my life.
2123
01:44:30.335 --> 01:44:30.676
Good.
2124
01:44:30.716 --> 01:44:31.436
I appreciate you.
2125
01:44:31.456 --> 01:44:31.836
Good, man.
2126
01:44:31.856 --> 01:44:32.597
Change my business.