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Hey everyone, it's Mike Andes, and today I'm gonna be talking to a mobile car detailer that is trying to convince his customers to go from one-time jobs and convert them into reoccurring work, recurring revenue.
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This is gonna be a must listen.
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It'll give you some ideas as to how you can take these one-time jobs that are great, and they're big tickets up front, but how can I convert them where they keep coming back every week, every month, every quarter, or at least annually.
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That's gonna be the key subject here, as well as a host of other topics in this coaching call.
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How are you doing, Mike?
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Good.
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How are you doing?
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Thanks for being the first.
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Hey, thank you.
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And I think you're going to get that cold swinge, man.
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I just left my Amazon review.
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Let's go.
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99 left.
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Okay, go ahead.
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All right.
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So I'll try to keep it short real quick.
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I recently just started what I'm calling a side hustle, basically, until I can get my, you know, all my paperwork in order for the business and LLC and all that.
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Detailing cars.
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And I know that's a little bit away from your wheelhouse.
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It's still the service industry.
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Yeah.
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I'm currently doing about 1500 a month with about 10 cars.
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That's 150 a car.
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I have three to two, uh, it's basically four budget hours scheduled by always completed within two.
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Um, and I'm trying to figure it out whether or not I should set up myself for, you know, when you call the recurring revenue for a maintenance plan going into the winter.
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Okay, just so I'm clear, what service are you doing?
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I just could not hear you correctly.
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My bad.
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Oh, sorry.
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Mobile car detailing.
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Got it.
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That's what I thought you said, but I wasn't sure.
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And you're charging $150 per car on average.
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Is that correct?
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On average, I have smaller packages and bigger packages, but this is my main seller.
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Got it.
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Okay, cool.
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And so you're telling, hey, you still have some level of off-season during the winter, and is that because it freezes and it's hard to clean the exterior, or is it just simply a function of that's like the lead just kind of stopped during the off-season, like the winter?
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The leads, certain types of leads, in the sense of washing the car on the outside and doing the car on the inside seem to stop.
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I think people...
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don't want to present themselves to the best of their ability car wise in the winter.
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I think they're more focused on shiny in the summer.
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And I think they want more wax products during the winter.
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Got it.
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And do you do interior as well?
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Yes.
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Got it.
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So what I would probably do is I'd probably be trying to set up a couple different packages, and I would make the packages where it's almost stupid to say no to the package.
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So for example, you might do the first cleaning.
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It's $150.
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And like, hey, you actually can get your – you could advertise as your first one free, and then it goes towards your package.
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And the package could, for example, be, hey, we have a monthly cleaning option, a quarterly cleaning option,
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And then we also have where just annually you get a cleaning in the exterior for one time.
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And then during the off season, you interior only.
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So like you would just make three different tiers of packages.
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And I just made that up on the fly.
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You could do a better job.
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Like what are those packages?
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But then you make the offer where you really promote it during the off season that your first one is free.
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And how is free is it gets applied to the package.
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And so no one comes in and just buys a one-time visit, like one-time job.
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If they want to, they can.
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Like, hey, that's full price.
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And if they're like, well, you said it was free.
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It's like, yeah, that apply.
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We're taking the cost, the $150, and we're moving it towards the $600 quarterly package.
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And that is over the next four quarters that we'd be doing service.
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And so it'd just really be a function of like, hey, a la carte is essentially the equivalent of just jumping into a package and saving a ton of money.
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So let me try to make sure I'm hearing you right.
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I'm basically, if they're not getting the a la carte service and they would like to opt in to the maintenance plan, I am charging them 150 and then just spreading that over the maintenance period.
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But I'm taking that money up front, the 150?
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Yeah.
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Correct, so you say, hey look, the first service is $150.
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I can do that for you next Thursday, okay great, all right, fantastic.
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Now we do have a maintenance package where we actually will come on a monthly basis.
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And what we actually do is if you sign up for that today, the 150, you don't have to pay me anything.
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You just are signing up for the monthly package and that is going to cost X, Y, and Z dollars, which is a 40% discount compared to our usual service because you're on that maintenance plan.
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And you could have some sort of thing like, hey, if you cancel before the end of the year, then they owe you for the $150.
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That makes perfect sense because they've already agreed to that price.
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But what I'm really trying to do, even if you don't do like the promotion of join for free or get your first one free, like $150 off, even if you don't use it as your promo, which by the way, free will work way better when it comes to your offer.
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Even if you don't do that, I would just really encourage the upsell process of – and we'll talk about this later today.
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And it's like how do I go from a one-time visit or a one-time job to a reoccurring visit, ideally recurring visit, which is every single month I'm showing up.
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And I would just make those offers ridiculous because you know, like if you clean someone's car every month, the second, third, fourth one is significantly faster than the first one.
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And so I would use the free offer.
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So we did this at the gym too.
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It's like, hey, you get a six-week challenge for free.
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You come, we do all of your diet stuff.
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We do all your workouts, etc.
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It's completely free.
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And how we are able to do that is you give us a deposit, you give us money, and if you lose 20 pounds in the next six weeks, you get your money back for free.
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And if you don't lose the 20 pounds, it's still free because we're gonna apply it to the rest of your training.
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You can stay with us until you do lose the 20 pounds.
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And so it was just a function of being able to help people that the initial thing is free massively increases the amount of leads that you'll get.
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And at first I was like, oh, it's kind of this slimy.
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I don't feel like they're really getting it for free.
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They're just getting a refund if they hit a certain target.
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But honestly, we had like 5X the amount of leads when we had a promotional offer that said free.
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And so I would encourage two things.
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Number one would be trying to work in that free first visit, first offer.
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And then how I make sense of that is I roll them into a monthly package and that $150 is applied to the next 12 services.
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So now all of a sudden it's $130 or whatever it might be per service.
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And the second thing I would be doing is doing upselling.
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So when they have confirmed, yes, I want this service next Thursday.
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Great.
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Let me tell you about our packages that will actually allow this one to be free or massively discounted.
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And we're setting off $150.
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It's actually only $99 as long as you commit to the next 12 months.
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And so I would just really, really work on those two things, your initial offer and then your upsell offer.
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Because the game you're in is simply how do I convert people from one-time jobs to reoccurring and ideally recurring jobs.
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So does that help a little bit?
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Yeah, that helps tremendously.
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I've been thinking a lot about the maintenance package, but I think the three will really get them in.
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How I got a lot of the customers that I currently have was by doing their tires for free.
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If I thought their car was clean and their tires was a little shoddy, I'd go ahead and do that, give them my car and drop a dime, you know.
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How much...
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Since I'm just starting out, how much time should I currently invest in like SEO and designing the funnel for my website?
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Should that be like the majority of my time that I'm trying to spend on or 50% of advertising time or...
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Like when it comes to time and money and spending on advertising, I do recommend the website be the first thing you spend time and money on.
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And the reason for that is because if you go out and do a Facebook ad campaign or a Google ad campaign or even the referrals that come in from people that you've done work for and they're telling their family and friends, if they come to a website that looks horrible, it's not a good look.
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And a huge conversion – so for example, if one out of 100 people show up to your website and actually convert from –
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a viewer of the page to an actual paid lead.
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We can double the business by simply making that one out of 50.
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And so instead of you spending money on Facebook or Google or doing a campaign and trying to get people to talk about you, let's first fix the actual converting mechanism that takes them into a lead.
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So I would focus that online a lot.
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And here's the thing.
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If you're building it yourself, spend three days, spend an entire weekend, and just go through the thing like crazy.
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Yeah, I sent the entire backslide.
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I designed a website.
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I designed it.
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I just I kind of did what you said you know like the quote at the very top the next barely scrollable down is the contact form and then I just have services underneath it.
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Yeah like I'm a big fan of your promotional offer being your first service is $150 free and you'll call for details or fill out this form.
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They fill out the form you're getting a lot of leads way more leads if you do that your conversion will go through the roof.
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And then what you're going to do is when you call them or you talk to them, hey, that is considering if you do a monthly care package and you come up with some fancy name for it.
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And that is, you know, you're able to give the $150 for free because you're selling them a $1,500 per year subscription.
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And so you're willing to take that hit and say free, and it just is going to convert way better.
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Okay.
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Awesome.
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Okay, yeah.
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Yeah.
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I think that's pretty much it, man.
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And I'm going to listen to the rest of your book and your podcast.
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And I appreciate all the work you do and I appreciate your faith, man.
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You got it.
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Take care, brother.
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All right.
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Next caller is coming in.
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By the way, when it comes to website stuff, I'm extremely biased.
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We have built hundreds of websites.
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It's not thousands by now.
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HomeServiceWebDesign.com.
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So I am biased, but I do believe that the first dollar you spend being spent on your website and
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let's take money off the site table.
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The first hours, the time you spend, instead of doing door hangers, spend that time on your website.
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Because then going forward, every single person that comes to your website, the chance of them becoming a lead is so much higher.
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All right, next caller is coming in from, I believe, Armarillo, Texas.
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Welcome to the show, thank you for coming on.
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Hey Mike, how's it going, sir?
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Good, how are you doing?
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I'm doing pretty good.
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Hey, my name is Frank Garcia.
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I called you about two years ago
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I'm starting up my business and at that time I was doing about Big C because it was still like a side gig.
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Um, and over the past two years, we doubled that.
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So two years ago we did one 20 and then last year we did, or sorry, not doubled, but last year we did about one eight.
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Let's go.
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Um, my issue on yes.
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And I, it was funny advice that I was given from you on just head down, move forward, work as hard as you can.
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I took all your tips and it's been a blessing.
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Um, the issue that I'm running into now is like mentally trying to accept help in and be a little bit more patient with hiring an employee and understanding that like teaching and coaching them to like help me in my business is going to make this whole thing flourish.
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So someone who is really like independent like me, what advice would you give somebody to like, Hey, accept the help.
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You have to be this way to accept this and understand that if you move this step forward with somebody, your business will flourish.
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Is it a function of you getting frustrated with them, Frank?
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Or is it a function of them making mistakes?
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Is it a function of you feeling like they're lazy?
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Why do you get so frustrated in feeling this way when it comes to employees?
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I've had the new ones come in and I feel like it's kind of maybe like common sense.
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in one instance where it's like hey if we're not cutting any grass sorry we cut grass if we're not cutting any grass drop the mower down and or it's like um you know something that should take me you know 15 20 minutes on a yard solo is now taking 30 45 minutes so it's a little mixture of the two of the first options a and b so not necessarily the the third option but mainly the first two
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Yeah, so like I would first ask yourself, like if you're going to take ownership of this, Aaron, I think you have given the fact that you're asking like, what do I do here?
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And so if you're going to take ownership, it's like let's assume for a moment that they don't change.
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How can we make sure that the output and the result changes, which is the jobs get done more efficiently.
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And when the crew doesn't have something very specific they need to be doing, they actually think with their head and they start cleaning the trucks or doing something efficient and profitable.
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And so I do believe you're getting to the stage now when you have one, two, three employees where there's unmanaged labor, and that is employees doing work without you being around.
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And at first, when you first had your first employee a couple years ago, it wasn't as bad because you're able to manage them with your eyes.
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essentially all day long they're with you and you're able to make sure they stay on task.
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And if they have questions, you're right there.
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You make sure they do a good job.
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They stay efficient.
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They're not stopping at gas stations, etc.
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And so now it becomes a matter of we've got to actually align the incentives of the employee with that of the business.
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And so have you looked at pay for performance at all yet, Frank?
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Yes, I have.
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I just, I didn't really keep a employee around long enough.
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And I think it was at the fault of my own, I'll be truthfully honest, to like
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incorporate that system into my everyday business.
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And so right now I had a kid who was more than willing, he just graduated high school and is wanting to come back.
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And I can kind of tell like the pay for performance would be a better alternative for him than just an hourly rate.
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And so I'm looking, I bought the book and I bought the book, the off season just now before waiting for the phone call.
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And as soon as I was writing the review, I got a Dean's sale.
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I'll finish that up after, but
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Like his right now, I feel like he's in that stage of life where it's like money is the motivator.
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And if he's making more for the P4P, like he'd be a little bit more motivated than just like stacking an hourly amount on top, if that makes sense.
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Yeah, totally.
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And so I think right now it's challenging when you're kind of like you have kind of a couple of part-timers and it's that switch to being full-timer where they actually can care about P4P.
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Because if they are kind of hit and miss, they work some days, they some don't, or they're all very short-term.
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And you're kind of in that…
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that weird spot between solo operator and needing a couple full-time employees that is tough to have p4p it is very difficult and so there's certain like cultural things we could talk about in terms of how to keep people motivated but i do believe as you continue to grow the business the long-term fix is going to be p4p and what's nice is this
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especially given that there's one, the one person working for you now is money motivated.
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I would just have the conversation really honestly with them as you start rolling P4P out, which is, hey, I don't know everything about this.
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I just wanna be able to make you, to be able to pay you more.
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And even if, cause I'm assuming this person is a pretty good worker and you like them.
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And so it's like, hey, look,
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I want it to be that as we grow, people like you make more money here.
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And so I'm going to be figuring out the system, and I don't know everything.
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I'm going to make sure you have a base pay that's equivalent to what you're making now.
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There will be no downside, but I am trying to figure out a way to be able to pay a percentage.
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And so that as we hire, and you say we, the team, as we hire people, if they're not as good as you, they're going to make less.
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And furthermore, it doesn't cap you for making more money because you are great and you are efficient and you do hustle, and I really appreciate it.
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And so if you had that conversation with them, you will kind of put some band-aids on some of the inevitable mistakes you will make as you roll P4P out or even start to introduce it or test it.
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And in the book as well as on P4Psoftware.com and the free course about it, I talk about like run the numbers in the background, whether it be a month or two.
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and start running some numbers and seeing what P4P looks like in their business once they manually put in the numbers.
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And so I would recommend that I would move in that direction.
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And I'd have that conversation with that team member.
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Awesome.
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Best of luck to you.
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Great, great work on the growth.
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Take care.
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I believe text messages are extremely important when it comes to home services.
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I believe it's been this way for several years.
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I think it will only continue to be more important though as time goes on.
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Last year, early 2024, there's a huge amount of restrictions passed by the email providers of things like Outlook, Gmail, Yahoo, etc.
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And they massively increased the filters on mass emails.
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Now, the emails that come from your CRM, from your software, are going to appear like they are mass messages.
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They have links to invoices.
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They mention merge tags.
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Merge tags, I think, pulling data from your CRM, like the number of your estimate, the number of your invoice.
236
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It's pulling in the address or the name of the customer.
237
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These are merge tags.
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This screams to email providers that this is an automated message.
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And so...
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It is like a year and a half ago, a lot of people had a lot of problems with getting emails just through to customers.
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And I believe this will continue more and more and more.
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The reason is because when you're sending an email from your CRM, it is coming from a domain and a service that is sending out millions of emails.
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And because of that, to many email providers, it looks spammy, especially your first one or two emails.
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And unfortunately, your first one or two emails
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are usually your estimate.
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And so here's the thing.
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There's a poll, 78% of consumers say they wish they could text with the business that they are doing business with.
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The reason is, is because it's immediate, it's fast, it's quick, I don't have to open up my desktop, I'm not having to check my email, it just comes into me as a text message and reduces the phone tag and delays from email response time.
249
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You say, well, what's the industry standard?
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Well, I talked to ChatGBT the other day, and here's the math.
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The open rate, just the open rate, on a text message is 98%.
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That is compared to a 20 to 25% email open rate.
253
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Now, I see that being a little bit higher from the data I have at Copilot, usually at 30 to 40%.
254
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I use 30 to 40%, but according to ChatGPT, open rate on an email is 20 to 25%.
255
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Now, the time it takes to open, like, okay, here's the thing.
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If we just switched from email to text message and just use that one stat, which is the open rate, what percentage of people open up your emails?
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Let's just say they're saying it's 20%.
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Let's just say, let's go higher.
259
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Let's go 30 to 40% of people actually get and open up your emails.
260
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If we just sent that same exact estimate in text format, we would double or triple the open rate.
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And you know what people can't do if they don't open up your estimate?
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They can't accept it.
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And so if they don't open up the email and they never see my estimate, I will never get them as a customer.
264
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And furthermore, if they never open it up because it goes to their spam filter, then we are gonna get customers.
265
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And so if you're not sending out text messages for estimates, which we'll talk about later, huge, huge, huge opportunity to be able to go from email to text messages, just because of the open rate.
266
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Now let's talk about time.
267
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The time to open the average text message
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is less than three minutes.
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The average time to open an email is over 30 minutes.
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Depends on the day that you send an email, it depends on the time, if you're doing business hours, et cetera, but the average open time on emails over 30 minutes.
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Whereas if you send the same exact message via text, it's opened up in three minutes.
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So it's faster and more reliable in terms of delivery.
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The average reply time, because we all know how our email inboxes work.
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We see it, it stacks up, and at some point we get back to it.
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The average reply time, so the amount of time it takes for a customer to respond back to us, is less than 90 seconds on text.
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In part because small words and small amounts of characters is extremely accepted inside of text messages.
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So the average reply time for text messages is 90 seconds.
278
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Whereas for email, the average reply for an email is 1.7 hours.
279
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As long as you send the email during business hours, the reply time is 1.7 hours.
280
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Okay, let's talk about response rate.
281
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How often do people actually respond to text messages?
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Okay, now this stat I got from ChatDBT, it is not this high if you're sending transactional text messages.
283
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It is a...
284
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Not this high.
285
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It is higher if you send a personalized message.
286
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I just want to make that very clear.
287
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If you're sending a blast text message, you are not going to get what their response rate is, which is 45%.
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Wowzers trousers.
289
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Because compared to email, the response rate is six to 10%.
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So if someone's responding back to an estimate, if they're responding back to a follow-up message, if they're responding to an Elp cell, a text message is not only going to
291
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uh uh opened up faster speed not only is it going to get a higher average reply time or lower average time so faster response as well as the response rate the amount of people that will respond is like 10 times the amount more on text messages versus email and i have seen this consistent maybe not these exact numbers that chattypd gave me in terms of response rate but i have seen about a 10x
292
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higher response rate on text versus email when you send it out from co-pilot.
293
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So here's the thing.
294
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I want to ask a couple of questions.
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If you don't send out your messages right now, your estimates, all of your messaging, communication, upsells, if you don't send it out with
296
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Text message right now you just use email how many more estimates would get accepted I can do the math very quickly on does one stat and as the open rate and just know because customers don't open up your estimate They will not accept and so just by increasing your open rate You are going to increase the likelihood of them accepting the estimate from zero to at least 1% and I
297
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So I don't really care who you use, by the way.
298
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There are lots of different services you can use to tech.
299
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Okay.
300
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There is, for example, uh, if you use jobber, you can connect it with Mailchimp.
301
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It gets a little bit expensive because you're paying both of them, but you can integrate Mailchimp and jobber.
302
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We can do this because it was going to cost me over $500 a month just for my one location's MailChimp to be connected to Jobber.
303
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And Jobber was on top of that.
304
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So it was going to cost like over $1,000 for what I needed.
305
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And then there is like Service Autoply has text messages.
306
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You can't do bulk messages though.
307
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And then you got do mass texting.
308
00:21:57.447 --> 00:21:59.569
So Copilot does do mass text messages.
309
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And I know it sounds like a pitch for Copilot.
310
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It's not.
311
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I really don't care.
312
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At least send your text, your estimates, and your invoices via text messages.
313
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Even your transactional emails, turn those into text messages.
314
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Your response rate will be higher.
315
00:22:13.022 --> 00:22:18.988
The amount of people who open up your estimates will be higher if you just send the same exact thing from an email to a text message.
316
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And I know this for a fact.
317
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Because when we switched CRMs for Augusta Lawn Care, all of our locations, I was able to make sure, hey, going forward, everyone's sending via text.
318
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And we sent every single, like the exact, we have an automation that is, when an estimate is sent via email, it also sends via text automatically.
319
00:22:34.913 --> 00:22:40.615
And so we see a massive jump in open rate, response time was way faster,
320
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And accepted estimates.
321
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The number of accepted estimates jumped dramatically.
322
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And so we're talking about thousands of new jobs every single year simply because of moving from email to text.
323
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And so I don't really care what software you use.
324
00:22:52.360 --> 00:22:53.821
There's also – what's it?
325
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Blanking on the name.
326
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I'm the texting one.
327
00:22:57.922 --> 00:22:59.023
I'm blanking on the texting name.
328
00:22:59.183 --> 00:23:07.066
I apologize, it's a plugin that works with a couple different softwares, including Copilot, but also Service Autopilot and a couple that allow you to text message out.
329
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Very good.
330
00:23:07.927 --> 00:23:09.527
The bulk messaging is the key.
331
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It is the money, it is the money maker.
332
00:23:12.208 --> 00:23:21.232
And if you can text people in mass and do upsells, which we will talk about later today, if you can do upsells using text messages, the response rate is so good, so good.
333
00:23:21.812 --> 00:23:25.934
And so like at my location, we will send out 15,000 text messages.
334
00:23:26.035 --> 00:23:28.016
And I'm going to get 50 to 100 estimates.
335
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Do you need more leads?
336
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That's another question.
337
00:23:30.017 --> 00:23:31.618
Like, okay, well, I'm doing email right now.
338
00:23:32.178 --> 00:23:33.519
And maybe I do some follow up calls.
339
00:23:33.559 --> 00:23:37.041
Like if you need more leads, I need more leads.
340
00:23:37.501 --> 00:23:54.172
Everyone thinks they need more leads when in reality if we just took the lead that were are already coming in The people are already submitting as request forms and just close the higher percentage of them We would do just as good if you have a close ratio of 30 percent right now And you're like I need to double my business I need to like spend more money on Facebook ads and do a website.
341
00:23:54.352 --> 00:23:54.992
I need to Google Ads.
342
00:23:55.112 --> 00:24:05.259
Okay great Yes, you could do that or you could simply move your close ratio from 30 percent to 60 percent and a great way to do that Is send your estimates via text instead of via email?
343
00:24:05.749 --> 00:24:11.691
You're going to have a higher response rate, have a higher open rate, and ultimately that leads to more jobs getting close.
344
00:24:11.731 --> 00:24:13.051
And you don't spend as much money.
345
00:24:13.311 --> 00:24:15.852
You're like, oh, man, I got to go buy a MailChimp thing.
346
00:24:15.872 --> 00:24:19.973
I have to upgrade my software package so I can do text message.
347
00:24:19.993 --> 00:24:23.634
That $50, $100, $200, maybe if you're big like my location, yes, you're going to pay $500.
348
00:24:24.034 --> 00:24:27.635
If you're doing something like MailChimp or this other software that does text, it can get expensive.
349
00:24:27.975 --> 00:24:28.235
I can't.
350
00:24:28.396 --> 00:24:30.117
I agree because they charge per text.
351
00:24:30.317 --> 00:24:31.478
At Augusta – or sorry, at Augusta.
352
00:24:31.678 --> 00:24:34.361
At Copa, we don't charge right now for text messages.
353
00:24:34.701 --> 00:24:43.769
Down the road, we will have to pass that cost along because there is a legit $0.04 per Twilio text because Twilio is the integration that texts the text message and does all the technology side.
354
00:24:44.330 --> 00:24:47.693
There's $0.04 cost for us, and we are not passing that along right now.
355
00:24:47.893 --> 00:24:52.517
And so if you're using Copa especially, use text messages because we're not even charging for it.
356
00:24:52.857 --> 00:24:53.018
And –
357
00:24:53.618 --> 00:25:19.678
um down the road we will have to because there are people that are spending 500 to a thousand dollars worth of tax credits and they're paying 279 dollars from enterprise subscription at Copilot Sierra and this is why I believe it's so important this is why I have not we've not charged for tech yet I want everyone to use it because once you see the power on your clothes ratio and more importantly your upsells the ability to be able to get more jobs from the existing customers that already know like and trust you like why in the world
358
00:25:20.318 --> 00:25:24.382
Why in the world would I run a Facebook ad to people that have never done business with me?
359
00:25:24.682 --> 00:25:26.704
They've never opened up their pocket.
360
00:25:26.904 --> 00:25:29.426
They've never asked for estimates.
361
00:25:29.546 --> 00:25:30.587
They never came to my website.
362
00:25:30.907 --> 00:25:38.354
And why would I advertise and spend money to cold traffic when there are people in my database that I have their phone number, their address.
363
00:25:38.554 --> 00:25:39.855
I've done work for them in the past.
364
00:25:39.915 --> 00:25:40.656
Maybe it was a couple years ago.
365
00:25:40.856 --> 00:25:41.817
Maybe I didn't do it.
366
00:25:41.857 --> 00:25:42.978
They declined my estimate.
367
00:25:43.098 --> 00:25:43.498
It doesn't matter.
368
00:25:43.719 --> 00:25:47.403
They've already raised their hand and qualified themselves as someone that needs your service.
369
00:25:47.844 --> 00:25:49.806
And so why would I not keep them warm?
370
00:25:50.267 --> 00:25:56.454
Why would I not put them on a monthly basis where I'm going to pitch a specific service to them via text and email?
371
00:25:56.835 --> 00:26:00.559
And via text we'll get a massive, much, much higher return
372
00:26:01.180 --> 00:26:03.743
a number of leads from that message and that campaign.
373
00:26:04.084 --> 00:26:14.277
And even if it costs, so even if you're not in code, and you're like, man, it's going to cost me a couple hundred dollars to send out this mass message to thousands of, why, why do we get tripped up over spending $200?
374
00:26:14.537 --> 00:26:16.420
And then we go spend a hundred dollars a day to Google.
375
00:26:16.620 --> 00:26:18.321
We spend $100 a day on Facebook.
376
00:26:18.501 --> 00:26:21.803
We spend tens of thousands of door hangers and flyers in every door direct mail.
377
00:26:22.063 --> 00:26:25.725
Like the USPS loses money out to Wazoo and is super inefficient.
378
00:26:25.745 --> 00:26:31.488
And yet we're giving them a whole bunch of money to deliver a bunch of flyers and postcards that we hope they deliver to the post box.
379
00:26:31.968 --> 00:26:33.829
And we're willing to give thousands of dollars.
380
00:26:34.189 --> 00:26:35.430
And somehow that's accepted.
381
00:26:35.770 --> 00:26:42.674
And yet spending a little bit of money to text all of your customers and immediately get qualified customers that you already have their information.
382
00:26:42.874 --> 00:26:43.994
You've already been to their property.
383
00:26:44.174 --> 00:26:44.795
You already have...
384
00:26:45.315 --> 00:26:47.437
All the built up trust of the customer is with you.
385
00:26:47.577 --> 00:26:51.780
And why in the world, why in the world do we spend so much money on cold traffic?
386
00:26:52.240 --> 00:26:56.063
We are addicted in this industry to cold traffic.
387
00:26:56.443 --> 00:27:00.066
And we are addicted to paying for every single lead.
388
00:27:00.146 --> 00:27:02.648
And it's because we stink at upselling.
389
00:27:02.868 --> 00:27:03.608
We stink at it.
390
00:27:03.989 --> 00:27:06.591
I talk about, I say this across the entire home service industry.
391
00:27:06.911 --> 00:27:13.716
And I write this book with a lot of passion because I am sick and tired of seeing people not being able to pay their bills and not having any.
392
00:27:13.976 --> 00:27:20.539
And the reason for that is because we are spending, at the exact same time, last week I was with a couple of home service business owners during the turnaround show.
393
00:27:20.619 --> 00:27:22.560
We had four turnarounds and another video.
394
00:27:23.180 --> 00:27:32.025
And I was like, every single one of these people is spending thousands, thousands of dollars every single month on Facebook ads and Google ads and SEO.
395
00:27:32.445 --> 00:27:36.907
One of them is paying $3,000 just for the campaign to be managed at a plumbing business.
396
00:27:37.348 --> 00:27:38.849
That doesn't include the ads.
397
00:27:39.609 --> 00:27:47.034
And yet we have never sent an email or a text message to our customers asking if they would like more services.
398
00:27:47.595 --> 00:27:52.398
Why would you not create a text template and an email template for every single month of the year
399
00:27:53.098 --> 00:27:58.902
based upon the demand of your climate, based upon the demand of your local area to upsell the people inside your database.
400
00:27:59.102 --> 00:28:01.163
To me, this is crazy.
401
00:28:01.723 --> 00:28:02.584
Absolutely crazy.
402
00:28:02.984 --> 00:28:05.285
The fact that we spend money, I'm gonna say it again.
403
00:28:05.686 --> 00:28:09.928
We spend money on cold people that we have never done service for.
404
00:28:10.228 --> 00:28:19.174
And we're paying to show up in their feed or show up in their mailbox or show up when they're searching when there are people in our database that have raised their hand and said, I want services from you.
405
00:28:19.474 --> 00:28:22.016
And even if they decline, they're fully qualified.
406
00:28:22.336 --> 00:28:31.962
And furthermore, the people that have done service for you, you have a credit card on file, they have paid you in the past and demonstrated not only their need for the service, but their ability to pay.
407
00:28:32.462 --> 00:28:33.183
That is crazy.
408
00:28:33.663 --> 00:28:41.468
And using text messages will allow you to be able to capitalize on that audience and on a monthly basis, have work when you need it, on demand.
409
00:28:41.708 --> 00:28:42.949
Like, I want leads when I need them.
410
00:28:43.429 --> 00:28:44.089
This is how you do it.
411
00:28:44.269 --> 00:28:48.292
You generate text messages that go at your customers based upon, oh, I don't, you know,
412
00:28:48.452 --> 00:28:49.633
My backlog is only a week long.
413
00:28:49.933 --> 00:28:56.278
Great, send out text messages and get 40, 50, 60 estimates coming in and being able to fill up your schedule when you need that.
414
00:28:56.378 --> 00:28:59.800
Instead of, the other way to do on-demand estimate generation, by the way, is what?
415
00:29:00.201 --> 00:29:01.281
Spend more money on Facebook.
416
00:29:01.622 --> 00:29:02.562
Spend more money on Google.
417
00:29:02.822 --> 00:29:04.804
Pump the more money into the marketing machine.
418
00:29:05.144 --> 00:29:11.152
And I do believe that the vast majority of home service business owners that are wanting to grow underspend on advertising.
419
00:29:11.292 --> 00:29:11.973
I do believe that.
420
00:29:12.393 --> 00:29:21.004
But I also, also believe that 99% of us do not send enough messages to our customers to upsell them.
421
00:29:21.511 --> 00:29:26.736
to remind them that we even exist because there's nothing more frustrating than you doing a job.
422
00:29:27.197 --> 00:29:31.100
Let's just say you're mowing grass and then they hired someone else to do the tree pruning.
423
00:29:31.160 --> 00:29:32.722
And you're like, what in the world?
424
00:29:33.162 --> 00:29:33.923
Why would you do that?
425
00:29:34.284 --> 00:29:35.104
And it's your fault.
426
00:29:35.625 --> 00:29:40.149
It's my fault because we never told the customer that we can solve that problem for them also.
427
00:29:40.410 --> 00:29:42.211
And you can use text messages to get through.
428
00:29:43.613 --> 00:29:44.974
I believe in value-based pricing.
429
00:29:45.555 --> 00:29:52.161
I think that reason home services is so low price and everyone in their industry is like, my industry is so horrible.
430
00:29:52.502 --> 00:29:53.423
My area is so horrible.
431
00:29:53.543 --> 00:29:56.626
I just talked to a plumbing company the other day and they feel the exact same way.
432
00:29:56.886 --> 00:30:02.812
They have private equity moving in that are willing to operate on one to 3% margin and undercut them on every single job.
433
00:30:03.112 --> 00:30:06.075
They're willing to do stuff for free that they can't even do for less than $300.
434
00:30:06.435 --> 00:30:07.116
That's difficult.
435
00:30:07.496 --> 00:30:12.299
And yet there are people in other industries looking at plumbing or HVAC like, oh man, if I could just get those other services.
436
00:30:12.639 --> 00:30:13.919
It is the shiny service syndrome.
437
00:30:13.939 --> 00:30:15.260
It is always another service.
438
00:30:15.500 --> 00:30:17.221
It is always another industry that is easy.
439
00:30:17.341 --> 00:30:19.142
But I am a big fan of value-based pricing.
440
00:30:19.442 --> 00:30:24.345
And that is, instead of thinking about how do I get this customer and lower price, I'm going to think how can I raise value?
441
00:30:24.565 --> 00:30:27.186
Because ultimately, the value equation is simply this.
442
00:30:27.547 --> 00:30:28.867
The transaction will take place.
443
00:30:30.508 --> 00:30:32.109
The transaction is consummated.
444
00:30:32.289 --> 00:30:33.950
Value is higher than price.
445
00:30:34.390 --> 00:30:36.931
So if I think that this water bottle – very good, by the way.
446
00:30:36.951 --> 00:30:38.492
One of the owners of Augusta Nation gave it to me.
447
00:30:38.512 --> 00:30:39.173
Thank you very much.
448
00:30:39.513 --> 00:30:48.217
If I think that this water bottle is worth to me $50 because I'm out in the middle of the Sahara Desert and I'm super, super thirsty and it's full of water, I'm like, my gosh, I'll pay $50 for that.
449
00:30:48.237 --> 00:30:49.217
I'll pay $100.
450
00:30:49.618 --> 00:30:55.521
If the price – so if my value is $50 and the price is $20, I will buy said water bottle.
451
00:30:55.841 --> 00:30:55.981
Now.
452
00:30:56.441 --> 00:30:59.883
If the water bottle is $1,000, price is way higher than value.
453
00:30:59.963 --> 00:31:02.224
I will not, the transaction will not be consummated.
454
00:31:02.404 --> 00:31:04.646
So the same thing is true when it comes to your jobs.
455
00:31:05.106 --> 00:31:08.108
You're saying, hey, the price is $500 in the mind of the customer.
456
00:31:08.348 --> 00:31:09.729
Like, well, it's only worth $400.
457
00:31:09.869 --> 00:31:10.169
Guess what?
458
00:31:10.189 --> 00:31:14.391
They're not accepting the estimate because value is not higher than price.
459
00:31:14.791 --> 00:31:18.974
And so as soon as value exceeds price, then the transaction goes through.
460
00:31:19.374 --> 00:31:20.094
And here's the thing.
461
00:31:20.515 --> 00:31:24.617
That's why it's a race to the bottom, because you would always cut prices and eventually get them to accept.
462
00:31:25.113 --> 00:31:28.975
And so this is why we have a race to the bottom versus we all focus on value.
463
00:31:29.436 --> 00:31:30.176
And what is value?
464
00:31:30.636 --> 00:31:34.238
Value, everyone's starting to me to think, like my uniform and my trucks.
465
00:31:34.699 --> 00:31:37.560
There are people that aren't even at the property when you service it.
466
00:31:37.960 --> 00:31:40.242
They don't see your uniforms, they do not see your trucks.
467
00:31:40.682 --> 00:31:45.185
What you can do without fail for every single customer is save them time.
468
00:31:45.825 --> 00:31:56.697
If you value your customers and you're wanting to improve the value proposition that you're offering in your service and create unique differentiation between you and your competition, you save your customer time.
469
00:31:57.177 --> 00:31:57.978
You know you save them time?
470
00:31:58.539 --> 00:32:00.040
Stop emailing them five times.
471
00:32:00.280 --> 00:32:01.061
It's going to spam.
472
00:32:01.101 --> 00:32:04.485
Stop calling them to follow up when they haven't even got the estimate.
473
00:32:04.745 --> 00:32:05.727
Send them a text message.
474
00:32:06.007 --> 00:32:07.309
They can see it in three seconds.
475
00:32:07.750 --> 00:32:15.000
Assuming that your software is mobile-friendly, they can be able to view it on their mobile device, accept, ask for work change orders, or decline it immediately.
476
00:32:15.361 --> 00:32:16.202
Save them time.
477
00:32:16.222 --> 00:32:19.226
I'm going to talk about, inside the book, I talk about instant pricing.
478
00:32:19.627 --> 00:32:29.799
The reason instant pricing works is because it attracts the type of customer that values their time, not the person that wants to spend an hour talking about every little thing on the estimate, every little part of the job.
479
00:32:30.019 --> 00:32:36.027
It's gonna be nitpicking you, it's gonna be calling you back the week after because some crazy, tiny little thing on the project went wrong.
480
00:32:36.367 --> 00:32:38.770
The person that values their time is your highest value customer.
481
00:32:38.890 --> 00:32:41.152
And in order to win them over, you respect their time.
482
00:32:41.873 --> 00:32:46.498
Uber is not cheaper in many times than a cab.
483
00:32:46.999 --> 00:32:51.404
If you go to a place and you look at a yellow cab, and then you look at Uber, many times the yellow cab is cheaper.
484
00:32:51.864 --> 00:33:11.826
However, the perception and the value of saving time, because I can see that three minutes away is my Uber, I can track it on a map when it's getting to me, that perception of me saving time is why Uber has become a multi-billion dollar business and taken over more than 70% of the cab driving industry.
485
00:33:12.186 --> 00:33:13.448
By the way, only 15 years ago,
486
00:33:13.788 --> 00:33:18.311
They had none and it was completely fragmented and no one owned more than 2% of the market.
487
00:33:18.351 --> 00:33:19.952
So what's gonna happen with home services?
488
00:33:20.412 --> 00:33:25.675
Home services right now, for example, I'm gonna take lawn care for example, 600,000 landscapers in the United States.
489
00:33:26.216 --> 00:33:29.598
No one, no one owns more than 1% of the residential market.
490
00:33:29.918 --> 00:33:32.179
And even of the commercial market, no one owns more than 2%.
491
00:33:33.160 --> 00:33:33.741
That's crazy.
492
00:33:34.221 --> 00:33:35.923
That's what we call a fragmented market.
493
00:33:36.143 --> 00:33:37.004
What's going to change that?
494
00:33:37.024 --> 00:33:41.749
It's going to be people that adopt the technology of things like text messages that save time for the customer.
495
00:33:42.109 --> 00:33:49.157
And so to all the naysayers that always say that I'm always against people and Augustination is going to put them out of business and all this other stuff, that's crazy.
496
00:33:49.657 --> 00:33:56.040
Simply this, I am giving you the roadmap to do exactly what I believe in is going to completely consolidate this injury.
497
00:33:56.080 --> 00:34:01.502
And I do believe there's going to be players that own 5, 10, 15% of the market in many home services.
498
00:34:01.982 --> 00:34:08.364
And it's going to be, it's going to be the businesses that adopt technology and use that technology to save the customer time.
499
00:34:08.625 --> 00:34:12.066
And then they're able to charge a premium price because they save the customer time.
500
00:34:12.306 --> 00:34:22.369
And so when you do things like instant pricing, when you use text messages, instead of sending archaic emails or printing off the estimate, putting it underneath their mat, you are decreasing value when you do those things.
501
00:34:22.589 --> 00:34:28.210
When you text the customer from iMessage, yeah, it'll be $400 for the Moltenstall.
502
00:34:28.570 --> 00:34:39.093
You're reducing value versus having a link that they can see in writing everything that's included, what type of materials, when the job's gonna be completed, that you're charging tax, this is value addition.
503
00:34:39.573 --> 00:34:42.904
And instead of reducing our prices, we need to focus on increasing value.
504
00:34:43.084 --> 00:34:47.337
And the number one way to increase value 100% of time, no one wants to waste time.
505
00:34:47.578 --> 00:34:50.426
And so save them time by sending them text messages.
1
00:00:00.091 --> 00:00:11.177
Hey everyone, it's Mike Andes, and today I'm gonna be talking to a mobile car detailer that is trying to convince his customers to go from one-time jobs and convert them into reoccurring work, recurring revenue.
2
00:00:11.237 --> 00:00:12.318
This is gonna be a must listen.
3
00:00:12.338 --> 00:00:21.583
It'll give you some ideas as to how you can take these one-time jobs that are great, and they're big tickets up front, but how can I convert them where they keep coming back every week, every month, every quarter, or at least annually.
4
00:00:21.763 --> 00:00:25.385
That's gonna be the key subject here, as well as a host of other topics in this coaching call.
5
00:00:25.445 --> 00:00:26.346
How are you doing, Mike?
6
00:00:26.366 --> 00:00:26.766
Good.
7
00:00:26.826 --> 00:00:27.326
How are you doing?
8
00:00:27.346 --> 00:00:28.167
Thanks for being the first.
9
00:00:28.527 --> 00:00:29.208
Hey, thank you.
10
00:00:29.228 --> 00:00:30.849
And I think you're going to get that cold swinge, man.
11
00:00:30.869 --> 00:00:32.190
I just left my Amazon review.
12
00:00:32.210 --> 00:00:33.871
Let's go.
13
00:00:33.931 --> 00:00:35.212
99 left.
14
00:00:35.672 --> 00:00:36.312
Okay, go ahead.
15
00:00:36.813 --> 00:00:37.153
All right.
16
00:00:37.293 --> 00:00:39.615
So I'll try to keep it short real quick.
17
00:00:40.335 --> 00:00:49.461
I recently just started what I'm calling a side hustle, basically, until I can get my, you know, all my paperwork in order for the business and LLC and all that.
18
00:00:49.581 --> 00:00:50.462
Detailing cars.
19
00:00:50.722 --> 00:00:53.164
And I know that's a little bit away from your wheelhouse.
20
00:00:53.264 --> 00:00:54.665
It's still the service industry.
21
00:00:54.685 --> 00:00:54.805
Yeah.
22
00:00:55.548 --> 00:00:59.550
I'm currently doing about 1500 a month with about 10 cars.
23
00:00:59.570 --> 00:01:00.870
That's 150 a car.
24
00:01:01.010 --> 00:01:08.473
I have three to two, uh, it's basically four budget hours scheduled by always completed within two.
25
00:01:09.473 --> 00:01:19.357
Um, and I'm trying to figure it out whether or not I should set up myself for, you know, when you call the recurring revenue for a maintenance plan going into the winter.
26
00:01:19.870 --> 00:01:21.813
Okay, just so I'm clear, what service are you doing?
27
00:01:21.933 --> 00:01:23.134
I just could not hear you correctly.
28
00:01:23.154 --> 00:01:23.495
My bad.
29
00:01:23.975 --> 00:01:24.416
Oh, sorry.
30
00:01:24.456 --> 00:01:25.858
Mobile car detailing.
31
00:01:26.038 --> 00:01:26.239
Got it.
32
00:01:26.259 --> 00:01:27.620
That's what I thought you said, but I wasn't sure.
33
00:01:27.700 --> 00:01:30.284
And you're charging $150 per car on average.
34
00:01:30.304 --> 00:01:30.865
Is that correct?
35
00:01:31.488 --> 00:01:36.551
On average, I have smaller packages and bigger packages, but this is my main seller.
36
00:01:37.112 --> 00:01:37.412
Got it.
37
00:01:37.672 --> 00:01:38.052
Okay, cool.
38
00:01:38.253 --> 00:01:51.201
And so you're telling, hey, you still have some level of off-season during the winter, and is that because it freezes and it's hard to clean the exterior, or is it just simply a function of that's like the lead just kind of stopped during the off-season, like the winter?
39
00:01:52.062 --> 00:01:58.826
The leads, certain types of leads, in the sense of washing the car on the outside and doing the car on the inside seem to stop.
40
00:01:58.926 --> 00:01:59.787
I think people...
41
00:02:00.674 --> 00:02:05.441
don't want to present themselves to the best of their ability car wise in the winter.
42
00:02:05.641 --> 00:02:07.764
I think they're more focused on shiny in the summer.
43
00:02:09.106 --> 00:02:12.792
And I think they want more wax products during the winter.
44
00:02:13.192 --> 00:02:13.473
Got it.
45
00:02:13.513 --> 00:02:15.295
And do you do interior as well?
46
00:02:15.916 --> 00:02:16.156
Yes.
47
00:02:16.840 --> 00:02:17.080
Got it.
48
00:02:17.381 --> 00:02:25.928
So what I would probably do is I'd probably be trying to set up a couple different packages, and I would make the packages where it's almost stupid to say no to the package.
49
00:02:26.489 --> 00:02:28.411
So for example, you might do the first cleaning.
50
00:02:28.431 --> 00:02:28.631
It's $150.
51
00:02:28.651 --> 00:02:36.518
And like, hey, you actually can get your – you could advertise as your first one free, and then it goes towards your package.
52
00:02:36.898 --> 00:02:41.983
And the package could, for example, be, hey, we have a monthly cleaning option, a quarterly cleaning option,
53
00:02:42.243 --> 00:02:47.506
And then we also have where just annually you get a cleaning in the exterior for one time.
54
00:02:47.586 --> 00:02:49.688
And then during the off season, you interior only.
55
00:02:50.188 --> 00:02:52.809
So like you would just make three different tiers of packages.
56
00:02:52.869 --> 00:02:54.110
And I just made that up on the fly.
57
00:02:54.130 --> 00:02:55.091
You could do a better job.
58
00:02:55.111 --> 00:02:56.492
Like what are those packages?
59
00:02:56.852 --> 00:03:02.235
But then you make the offer where you really promote it during the off season that your first one is free.
60
00:03:02.655 --> 00:03:05.177
And how is free is it gets applied to the package.
61
00:03:05.577 --> 00:03:08.599
And so no one comes in and just buys a one-time visit, like one-time job.
62
00:03:09.340 --> 00:03:10.080
If they want to, they can.
63
00:03:10.100 --> 00:03:11.121
Like, hey, that's full price.
64
00:03:11.381 --> 00:03:12.622
And if they're like, well, you said it was free.
65
00:03:12.642 --> 00:03:13.963
It's like, yeah, that apply.
66
00:03:14.563 --> 00:03:19.487
We're taking the cost, the $150, and we're moving it towards the $600 quarterly package.
67
00:03:19.987 --> 00:03:23.429
And that is over the next four quarters that we'd be doing service.
68
00:03:23.950 --> 00:03:31.195
And so it'd just really be a function of like, hey, a la carte is essentially the equivalent of just jumping into a package and saving a ton of money.
69
00:03:31.683 --> 00:03:33.465
So let me try to make sure I'm hearing you right.
70
00:03:33.805 --> 00:03:46.279
I'm basically, if they're not getting the a la carte service and they would like to opt in to the maintenance plan, I am charging them 150 and then just spreading that over the maintenance period.
71
00:03:46.359 --> 00:03:48.121
But I'm taking that money up front, the 150?
72
00:03:48.141 --> 00:03:48.341
Yeah.
73
00:03:48.930 --> 00:03:51.851
Correct, so you say, hey look, the first service is $150.
74
00:03:51.911 --> 00:03:55.972
I can do that for you next Thursday, okay great, all right, fantastic.
75
00:03:56.232 --> 00:04:00.634
Now we do have a maintenance package where we actually will come on a monthly basis.
76
00:04:01.114 --> 00:04:04.955
And what we actually do is if you sign up for that today, the 150, you don't have to pay me anything.
77
00:04:05.255 --> 00:04:13.998
You just are signing up for the monthly package and that is going to cost X, Y, and Z dollars, which is a 40% discount compared to our usual service because you're on that maintenance plan.
78
00:04:14.698 --> 00:04:20.641
And you could have some sort of thing like, hey, if you cancel before the end of the year, then they owe you for the $150.
79
00:04:20.861 --> 00:04:23.222
That makes perfect sense because they've already agreed to that price.
80
00:04:24.182 --> 00:04:35.647
But what I'm really trying to do, even if you don't do like the promotion of join for free or get your first one free, like $150 off, even if you don't use it as your promo, which by the way, free will work way better when it comes to your offer.
81
00:04:37.048 --> 00:04:42.529
Even if you don't do that, I would just really encourage the upsell process of – and we'll talk about this later today.
82
00:04:42.849 --> 00:04:52.772
And it's like how do I go from a one-time visit or a one-time job to a reoccurring visit, ideally recurring visit, which is every single month I'm showing up.
83
00:04:53.192 --> 00:05:02.814
And I would just make those offers ridiculous because you know, like if you clean someone's car every month, the second, third, fourth one is significantly faster than the first one.
84
00:05:03.234 --> 00:05:06.856
And so I would use the free offer.
85
00:05:06.896 --> 00:05:08.537
So we did this at the gym too.
86
00:05:08.557 --> 00:05:10.618
It's like, hey, you get a six-week challenge for free.
87
00:05:10.838 --> 00:05:12.759
You come, we do all of your diet stuff.
88
00:05:13.020 --> 00:05:14.640
We do all your workouts, etc.
89
00:05:14.680 --> 00:05:15.521
It's completely free.
90
00:05:15.961 --> 00:05:22.785
And how we are able to do that is you give us a deposit, you give us money, and if you lose 20 pounds in the next six weeks, you get your money back for free.
91
00:05:23.045 --> 00:05:27.046
And if you don't lose the 20 pounds, it's still free because we're gonna apply it to the rest of your training.
92
00:05:27.086 --> 00:05:29.226
You can stay with us until you do lose the 20 pounds.
93
00:05:29.726 --> 00:05:37.688
And so it was just a function of being able to help people that the initial thing is free massively increases the amount of leads that you'll get.
94
00:05:38.028 --> 00:05:40.208
And at first I was like, oh, it's kind of this slimy.
95
00:05:40.448 --> 00:05:42.048
I don't feel like they're really getting it for free.
96
00:05:42.068 --> 00:05:44.029
They're just getting a refund if they hit a certain target.
97
00:05:45.129 --> 00:05:50.410
But honestly, we had like 5X the amount of leads when we had a promotional offer that said free.
98
00:05:51.050 --> 00:05:53.031
And so I would encourage two things.
99
00:05:53.071 --> 00:05:57.992
Number one would be trying to work in that free first visit, first offer.
100
00:05:58.392 --> 00:06:04.994
And then how I make sense of that is I roll them into a monthly package and that $150 is applied to the next 12 services.
101
00:06:05.194 --> 00:06:08.575
So now all of a sudden it's $130 or whatever it might be per service.
102
00:06:08.975 --> 00:06:11.796
And the second thing I would be doing is doing upselling.
103
00:06:11.856 --> 00:06:15.157
So when they have confirmed, yes, I want this service next Thursday.
104
00:06:15.357 --> 00:06:15.597
Great.
105
00:06:16.157 --> 00:06:19.759
Let me tell you about our packages that will actually allow this one to be free or massively discounted.
106
00:06:19.819 --> 00:06:20.680
And we're setting off $150.
107
00:06:20.920 --> 00:06:25.182
It's actually only $99 as long as you commit to the next 12 months.
108
00:06:25.703 --> 00:06:30.346
And so I would just really, really work on those two things, your initial offer and then your upsell offer.
109
00:06:30.686 --> 00:06:39.111
Because the game you're in is simply how do I convert people from one-time jobs to reoccurring and ideally recurring jobs.
110
00:06:39.571 --> 00:06:40.672
So does that help a little bit?
111
00:06:41.351 --> 00:06:43.554
Yeah, that helps tremendously.
112
00:06:44.295 --> 00:06:49.201
I've been thinking a lot about the maintenance package, but I think the three will really get them in.
113
00:06:49.241 --> 00:06:52.945
How I got a lot of the customers that I currently have was by doing their tires for free.
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If I thought their car was clean and their tires was a little shoddy, I'd go ahead and do that, give them my car and drop a dime, you know.
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How much...
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Since I'm just starting out, how much time should I currently invest in like SEO and designing the funnel for my website?
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Should that be like the majority of my time that I'm trying to spend on or 50% of advertising time or...
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Like when it comes to time and money and spending on advertising, I do recommend the website be the first thing you spend time and money on.
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And the reason for that is because if you go out and do a Facebook ad campaign or a Google ad campaign or even the referrals that come in from people that you've done work for and they're telling their family and friends, if they come to a website that looks horrible, it's not a good look.
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And a huge conversion – so for example, if one out of 100 people show up to your website and actually convert from –
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a viewer of the page to an actual paid lead.
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We can double the business by simply making that one out of 50.
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And so instead of you spending money on Facebook or Google or doing a campaign and trying to get people to talk about you, let's first fix the actual converting mechanism that takes them into a lead.
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So I would focus that online a lot.
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And here's the thing.
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If you're building it yourself, spend three days, spend an entire weekend, and just go through the thing like crazy.
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Yeah, I sent the entire backslide.
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I designed a website.
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I designed it.
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I just I kind of did what you said you know like the quote at the very top the next barely scrollable down is the contact form and then I just have services underneath it.
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Yeah like I'm a big fan of your promotional offer being your first service is $150 free and you'll call for details or fill out this form.
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They fill out the form you're getting a lot of leads way more leads if you do that your conversion will go through the roof.
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And then what you're going to do is when you call them or you talk to them, hey, that is considering if you do a monthly care package and you come up with some fancy name for it.
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And that is, you know, you're able to give the $150 for free because you're selling them a $1,500 per year subscription.
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And so you're willing to take that hit and say free, and it just is going to convert way better.
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Okay.
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Awesome.
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Okay, yeah.
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Yeah.
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I think that's pretty much it, man.
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And I'm going to listen to the rest of your book and your podcast.
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And I appreciate all the work you do and I appreciate your faith, man.
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You got it.
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Take care, brother.
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All right.
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Next caller is coming in.
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By the way, when it comes to website stuff, I'm extremely biased.
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We have built hundreds of websites.
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It's not thousands by now.
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HomeServiceWebDesign.com.
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So I am biased, but I do believe that the first dollar you spend being spent on your website and
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let's take money off the site table.
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The first hours, the time you spend, instead of doing door hangers, spend that time on your website.
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Because then going forward, every single person that comes to your website, the chance of them becoming a lead is so much higher.
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All right, next caller is coming in from, I believe, Armarillo, Texas.
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Welcome to the show, thank you for coming on.
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Hey Mike, how's it going, sir?
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Good, how are you doing?
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I'm doing pretty good.
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Hey, my name is Frank Garcia.
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I called you about two years ago
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I'm starting up my business and at that time I was doing about Big C because it was still like a side gig.
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Um, and over the past two years, we doubled that.
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So two years ago we did one 20 and then last year we did, or sorry, not doubled, but last year we did about one eight.
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Let's go.
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Um, my issue on yes.
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And I, it was funny advice that I was given from you on just head down, move forward, work as hard as you can.
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I took all your tips and it's been a blessing.
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Um, the issue that I'm running into now is like mentally trying to accept help in and be a little bit more patient with hiring an employee and understanding that like teaching and coaching them to like help me in my business is going to make this whole thing flourish.
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So someone who is really like independent like me, what advice would you give somebody to like, Hey, accept the help.
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You have to be this way to accept this and understand that if you move this step forward with somebody, your business will flourish.
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Is it a function of you getting frustrated with them, Frank?
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Or is it a function of them making mistakes?
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Is it a function of you feeling like they're lazy?
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Why do you get so frustrated in feeling this way when it comes to employees?
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I've had the new ones come in and I feel like it's kind of maybe like common sense.
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in one instance where it's like hey if we're not cutting any grass sorry we cut grass if we're not cutting any grass drop the mower down and or it's like um you know something that should take me you know 15 20 minutes on a yard solo is now taking 30 45 minutes so it's a little mixture of the two of the first options a and b so not necessarily the the third option but mainly the first two
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Yeah, so like I would first ask yourself, like if you're going to take ownership of this, Aaron, I think you have given the fact that you're asking like, what do I do here?
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And so if you're going to take ownership, it's like let's assume for a moment that they don't change.
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How can we make sure that the output and the result changes, which is the jobs get done more efficiently.
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And when the crew doesn't have something very specific they need to be doing, they actually think with their head and they start cleaning the trucks or doing something efficient and profitable.
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And so I do believe you're getting to the stage now when you have one, two, three employees where there's unmanaged labor, and that is employees doing work without you being around.
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And at first, when you first had your first employee a couple years ago, it wasn't as bad because you're able to manage them with your eyes.
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essentially all day long they're with you and you're able to make sure they stay on task.
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And if they have questions, you're right there.
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You make sure they do a good job.
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They stay efficient.
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They're not stopping at gas stations, etc.
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And so now it becomes a matter of we've got to actually align the incentives of the employee with that of the business.
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And so have you looked at pay for performance at all yet, Frank?
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Yes, I have.
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I just, I didn't really keep a employee around long enough.
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And I think it was at the fault of my own, I'll be truthfully honest, to like
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incorporate that system into my everyday business.
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And so right now I had a kid who was more than willing, he just graduated high school and is wanting to come back.
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And I can kind of tell like the pay for performance would be a better alternative for him than just an hourly rate.
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And so I'm looking, I bought the book and I bought the book, the off season just now before waiting for the phone call.
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And as soon as I was writing the review, I got a Dean's sale.
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I'll finish that up after, but
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Like his right now, I feel like he's in that stage of life where it's like money is the motivator.
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And if he's making more for the P4P, like he'd be a little bit more motivated than just like stacking an hourly amount on top, if that makes sense.
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Yeah, totally.
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And so I think right now it's challenging when you're kind of like you have kind of a couple of part-timers and it's that switch to being full-timer where they actually can care about P4P.
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Because if they are kind of hit and miss, they work some days, they some don't, or they're all very short-term.
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And you're kind of in that…
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that weird spot between solo operator and needing a couple full-time employees that is tough to have p4p it is very difficult and so there's certain like cultural things we could talk about in terms of how to keep people motivated but i do believe as you continue to grow the business the long-term fix is going to be p4p and what's nice is this
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especially given that there's one, the one person working for you now is money motivated.
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I would just have the conversation really honestly with them as you start rolling P4P out, which is, hey, I don't know everything about this.
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I just wanna be able to make you, to be able to pay you more.
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And even if, cause I'm assuming this person is a pretty good worker and you like them.
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And so it's like, hey, look,
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I want it to be that as we grow, people like you make more money here.
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And so I'm going to be figuring out the system, and I don't know everything.
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I'm going to make sure you have a base pay that's equivalent to what you're making now.
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There will be no downside, but I am trying to figure out a way to be able to pay a percentage.
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And so that as we hire, and you say we, the team, as we hire people, if they're not as good as you, they're going to make less.
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And furthermore, it doesn't cap you for making more money because you are great and you are efficient and you do hustle, and I really appreciate it.
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And so if you had that conversation with them, you will kind of put some band-aids on some of the inevitable mistakes you will make as you roll P4P out or even start to introduce it or test it.
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And in the book as well as on P4Psoftware.com and the free course about it, I talk about like run the numbers in the background, whether it be a month or two.
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and start running some numbers and seeing what P4P looks like in their business once they manually put in the numbers.
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And so I would recommend that I would move in that direction.
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And I'd have that conversation with that team member.
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Awesome.
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Best of luck to you.
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Great, great work on the growth.
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Take care.
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I believe text messages are extremely important when it comes to home services.
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I believe it's been this way for several years.
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I think it will only continue to be more important though as time goes on.
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Last year, early 2024, there's a huge amount of restrictions passed by the email providers of things like Outlook, Gmail, Yahoo, etc.
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And they massively increased the filters on mass emails.
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Now, the emails that come from your CRM, from your software, are going to appear like they are mass messages.
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They have links to invoices.
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They mention merge tags.
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Merge tags, I think, pulling data from your CRM, like the number of your estimate, the number of your invoice.
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It's pulling in the address or the name of the customer.
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These are merge tags.
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This screams to email providers that this is an automated message.
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And so...
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It is like a year and a half ago, a lot of people had a lot of problems with getting emails just through to customers.
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And I believe this will continue more and more and more.
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The reason is because when you're sending an email from your CRM, it is coming from a domain and a service that is sending out millions of emails.
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And because of that, to many email providers, it looks spammy, especially your first one or two emails.
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And unfortunately, your first one or two emails
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are usually your estimate.
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And so here's the thing.
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There's a poll, 78% of consumers say they wish they could text with the business that they are doing business with.
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The reason is, is because it's immediate, it's fast, it's quick, I don't have to open up my desktop, I'm not having to check my email, it just comes into me as a text message and reduces the phone tag and delays from email response time.
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You say, well, what's the industry standard?
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Well, I talked to ChatGBT the other day, and here's the math.
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The open rate, just the open rate, on a text message is 98%.
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That is compared to a 20 to 25% email open rate.
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Now, I see that being a little bit higher from the data I have at Copilot, usually at 30 to 40%.
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I use 30 to 40%, but according to ChatGPT, open rate on an email is 20 to 25%.
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Now, the time it takes to open, like, okay, here's the thing.
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If we just switched from email to text message and just use that one stat, which is the open rate, what percentage of people open up your emails?
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Let's just say they're saying it's 20%.
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Let's just say, let's go higher.
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Let's go 30 to 40% of people actually get and open up your emails.
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If we just sent that same exact estimate in text format, we would double or triple the open rate.
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And you know what people can't do if they don't open up your estimate?
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They can't accept it.
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And so if they don't open up the email and they never see my estimate, I will never get them as a customer.
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And furthermore, if they never open it up because it goes to their spam filter, then we are gonna get customers.
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And so if you're not sending out text messages for estimates, which we'll talk about later, huge, huge, huge opportunity to be able to go from email to text messages, just because of the open rate.
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Now let's talk about time.
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The time to open the average text message
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is less than three minutes.
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The average time to open an email is over 30 minutes.
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Depends on the day that you send an email, it depends on the time, if you're doing business hours, et cetera, but the average open time on emails over 30 minutes.
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Whereas if you send the same exact message via text, it's opened up in three minutes.
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So it's faster and more reliable in terms of delivery.
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The average reply time, because we all know how our email inboxes work.
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We see it, it stacks up, and at some point we get back to it.
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The average reply time, so the amount of time it takes for a customer to respond back to us, is less than 90 seconds on text.
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In part because small words and small amounts of characters is extremely accepted inside of text messages.
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So the average reply time for text messages is 90 seconds.
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Whereas for email, the average reply for an email is 1.7 hours.
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As long as you send the email during business hours, the reply time is 1.7 hours.
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Okay, let's talk about response rate.
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How often do people actually respond to text messages?
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Okay, now this stat I got from ChatDBT, it is not this high if you're sending transactional text messages.
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It is a...
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Not this high.
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It is higher if you send a personalized message.
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I just want to make that very clear.
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If you're sending a blast text message, you are not going to get what their response rate is, which is 45%.
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Wowzers trousers.
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Because compared to email, the response rate is six to 10%.
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So if someone's responding back to an estimate, if they're responding back to a follow-up message, if they're responding to an Elp cell, a text message is not only going to
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uh uh opened up faster speed not only is it going to get a higher average reply time or lower average time so faster response as well as the response rate the amount of people that will respond is like 10 times the amount more on text messages versus email and i have seen this consistent maybe not these exact numbers that chattypd gave me in terms of response rate but i have seen about a 10x
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higher response rate on text versus email when you send it out from co-pilot.
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So here's the thing.
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I want to ask a couple of questions.
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If you don't send out your messages right now, your estimates, all of your messaging, communication, upsells, if you don't send it out with
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Text message right now you just use email how many more estimates would get accepted I can do the math very quickly on does one stat and as the open rate and just know because customers don't open up your estimate They will not accept and so just by increasing your open rate You are going to increase the likelihood of them accepting the estimate from zero to at least 1% and I
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So I don't really care who you use, by the way.
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There are lots of different services you can use to tech.
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Okay.
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There is, for example, uh, if you use jobber, you can connect it with Mailchimp.
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It gets a little bit expensive because you're paying both of them, but you can integrate Mailchimp and jobber.
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We can do this because it was going to cost me over $500 a month just for my one location's MailChimp to be connected to Jobber.
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And Jobber was on top of that.
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So it was going to cost like over $1,000 for what I needed.
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And then there is like Service Autoply has text messages.
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You can't do bulk messages though.
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And then you got do mass texting.
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So Copilot does do mass text messages.
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And I know it sounds like a pitch for Copilot.
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It's not.
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I really don't care.
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At least send your text, your estimates, and your invoices via text messages.
313
00:22:07.537 --> 00:22:10.399
Even your transactional emails, turn those into text messages.
314
00:22:10.780 --> 00:22:12.241
Your response rate will be higher.
315
00:22:13.022 --> 00:22:18.988
The amount of people who open up your estimates will be higher if you just send the same exact thing from an email to a text message.
316
00:22:19.048 --> 00:22:20.169
And I know this for a fact.
317
00:22:20.549 --> 00:22:28.171
Because when we switched CRMs for Augusta Lawn Care, all of our locations, I was able to make sure, hey, going forward, everyone's sending via text.
318
00:22:28.211 --> 00:22:34.573
And we sent every single, like the exact, we have an automation that is, when an estimate is sent via email, it also sends via text automatically.
319
00:22:34.913 --> 00:22:40.615
And so we see a massive jump in open rate, response time was way faster,
320
00:22:41.175 --> 00:22:42.296
And accepted estimates.
321
00:22:42.316 --> 00:22:44.477
The number of accepted estimates jumped dramatically.
322
00:22:44.997 --> 00:22:49.919
And so we're talking about thousands of new jobs every single year simply because of moving from email to text.
323
00:22:50.219 --> 00:22:52.160
And so I don't really care what software you use.
324
00:22:52.360 --> 00:22:53.821
There's also – what's it?
325
00:22:53.921 --> 00:22:54.941
Blanking on the name.
326
00:22:55.501 --> 00:22:56.802
I'm the texting one.
327
00:22:57.922 --> 00:22:59.023
I'm blanking on the texting name.
328
00:22:59.183 --> 00:23:07.066
I apologize, it's a plugin that works with a couple different softwares, including Copilot, but also Service Autopilot and a couple that allow you to text message out.
329
00:23:07.206 --> 00:23:07.626
Very good.
330
00:23:07.927 --> 00:23:09.527
The bulk messaging is the key.
331
00:23:10.107 --> 00:23:11.928
It is the money, it is the money maker.
332
00:23:12.208 --> 00:23:21.232
And if you can text people in mass and do upsells, which we will talk about later today, if you can do upsells using text messages, the response rate is so good, so good.
333
00:23:21.812 --> 00:23:25.934
And so like at my location, we will send out 15,000 text messages.
334
00:23:26.035 --> 00:23:28.016
And I'm going to get 50 to 100 estimates.
335
00:23:28.316 --> 00:23:29.056
Do you need more leads?
336
00:23:29.376 --> 00:23:29.997
That's another question.
337
00:23:30.017 --> 00:23:31.618
Like, okay, well, I'm doing email right now.
338
00:23:32.178 --> 00:23:33.519
And maybe I do some follow up calls.
339
00:23:33.559 --> 00:23:37.041
Like if you need more leads, I need more leads.
340
00:23:37.501 --> 00:23:54.172
Everyone thinks they need more leads when in reality if we just took the lead that were are already coming in The people are already submitting as request forms and just close the higher percentage of them We would do just as good if you have a close ratio of 30 percent right now And you're like I need to double my business I need to like spend more money on Facebook ads and do a website.
341
00:23:54.352 --> 00:23:54.992
I need to Google Ads.
342
00:23:55.112 --> 00:24:05.259
Okay great Yes, you could do that or you could simply move your close ratio from 30 percent to 60 percent and a great way to do that Is send your estimates via text instead of via email?
343
00:24:05.749 --> 00:24:11.691
You're going to have a higher response rate, have a higher open rate, and ultimately that leads to more jobs getting close.
344
00:24:11.731 --> 00:24:13.051
And you don't spend as much money.
345
00:24:13.311 --> 00:24:15.852
You're like, oh, man, I got to go buy a MailChimp thing.
346
00:24:15.872 --> 00:24:19.973
I have to upgrade my software package so I can do text message.
347
00:24:19.993 --> 00:24:23.634
That $50, $100, $200, maybe if you're big like my location, yes, you're going to pay $500.
348
00:24:24.034 --> 00:24:27.635
If you're doing something like MailChimp or this other software that does text, it can get expensive.
349
00:24:27.975 --> 00:24:28.235
I can't.
350
00:24:28.396 --> 00:24:30.117
I agree because they charge per text.
351
00:24:30.317 --> 00:24:31.478
At Augusta – or sorry, at Augusta.
352
00:24:31.678 --> 00:24:34.361
At Copa, we don't charge right now for text messages.
353
00:24:34.701 --> 00:24:43.769
Down the road, we will have to pass that cost along because there is a legit $0.04 per Twilio text because Twilio is the integration that texts the text message and does all the technology side.
354
00:24:44.330 --> 00:24:47.693
There's $0.04 cost for us, and we are not passing that along right now.
355
00:24:47.893 --> 00:24:52.517
And so if you're using Copa especially, use text messages because we're not even charging for it.
356
00:24:52.857 --> 00:24:53.018
And –
357
00:24:53.618 --> 00:25:19.678
um down the road we will have to because there are people that are spending 500 to a thousand dollars worth of tax credits and they're paying 279 dollars from enterprise subscription at Copilot Sierra and this is why I believe it's so important this is why I have not we've not charged for tech yet I want everyone to use it because once you see the power on your clothes ratio and more importantly your upsells the ability to be able to get more jobs from the existing customers that already know like and trust you like why in the world
358
00:25:20.318 --> 00:25:24.382
Why in the world would I run a Facebook ad to people that have never done business with me?
359
00:25:24.682 --> 00:25:26.704
They've never opened up their pocket.
360
00:25:26.904 --> 00:25:29.426
They've never asked for estimates.
361
00:25:29.546 --> 00:25:30.587
They never came to my website.
362
00:25:30.907 --> 00:25:38.354
And why would I advertise and spend money to cold traffic when there are people in my database that I have their phone number, their address.
363
00:25:38.554 --> 00:25:39.855
I've done work for them in the past.
364
00:25:39.915 --> 00:25:40.656
Maybe it was a couple years ago.
365
00:25:40.856 --> 00:25:41.817
Maybe I didn't do it.
366
00:25:41.857 --> 00:25:42.978
They declined my estimate.
367
00:25:43.098 --> 00:25:43.498
It doesn't matter.
368
00:25:43.719 --> 00:25:47.403
They've already raised their hand and qualified themselves as someone that needs your service.
369
00:25:47.844 --> 00:25:49.806
And so why would I not keep them warm?
370
00:25:50.267 --> 00:25:56.454
Why would I not put them on a monthly basis where I'm going to pitch a specific service to them via text and email?
371
00:25:56.835 --> 00:26:00.559
And via text we'll get a massive, much, much higher return
372
00:26:01.180 --> 00:26:03.743
a number of leads from that message and that campaign.
373
00:26:04.084 --> 00:26:14.277
And even if it costs, so even if you're not in code, and you're like, man, it's going to cost me a couple hundred dollars to send out this mass message to thousands of, why, why do we get tripped up over spending $200?
374
00:26:14.537 --> 00:26:16.420
And then we go spend a hundred dollars a day to Google.
375
00:26:16.620 --> 00:26:18.321
We spend $100 a day on Facebook.
376
00:26:18.501 --> 00:26:21.803
We spend tens of thousands of door hangers and flyers in every door direct mail.
377
00:26:22.063 --> 00:26:25.725
Like the USPS loses money out to Wazoo and is super inefficient.
378
00:26:25.745 --> 00:26:31.488
And yet we're giving them a whole bunch of money to deliver a bunch of flyers and postcards that we hope they deliver to the post box.
379
00:26:31.968 --> 00:26:33.829
And we're willing to give thousands of dollars.
380
00:26:34.189 --> 00:26:35.430
And somehow that's accepted.
381
00:26:35.770 --> 00:26:42.674
And yet spending a little bit of money to text all of your customers and immediately get qualified customers that you already have their information.
382
00:26:42.874 --> 00:26:43.994
You've already been to their property.
383
00:26:44.174 --> 00:26:44.795
You already have...
384
00:26:45.315 --> 00:26:47.437
All the built up trust of the customer is with you.
385
00:26:47.577 --> 00:26:51.780
And why in the world, why in the world do we spend so much money on cold traffic?
386
00:26:52.240 --> 00:26:56.063
We are addicted in this industry to cold traffic.
387
00:26:56.443 --> 00:27:00.066
And we are addicted to paying for every single lead.
388
00:27:00.146 --> 00:27:02.648
And it's because we stink at upselling.
389
00:27:02.868 --> 00:27:03.608
We stink at it.
390
00:27:03.989 --> 00:27:06.591
I talk about, I say this across the entire home service industry.
391
00:27:06.911 --> 00:27:13.716
And I write this book with a lot of passion because I am sick and tired of seeing people not being able to pay their bills and not having any.
392
00:27:13.976 --> 00:27:20.539
And the reason for that is because we are spending, at the exact same time, last week I was with a couple of home service business owners during the turnaround show.
393
00:27:20.619 --> 00:27:22.560
We had four turnarounds and another video.
394
00:27:23.180 --> 00:27:32.025
And I was like, every single one of these people is spending thousands, thousands of dollars every single month on Facebook ads and Google ads and SEO.
395
00:27:32.445 --> 00:27:36.907
One of them is paying $3,000 just for the campaign to be managed at a plumbing business.
396
00:27:37.348 --> 00:27:38.849
That doesn't include the ads.
397
00:27:39.609 --> 00:27:47.034
And yet we have never sent an email or a text message to our customers asking if they would like more services.
398
00:27:47.595 --> 00:27:52.398
Why would you not create a text template and an email template for every single month of the year
399
00:27:53.098 --> 00:27:58.902
based upon the demand of your climate, based upon the demand of your local area to upsell the people inside your database.
400
00:27:59.102 --> 00:28:01.163
To me, this is crazy.
401
00:28:01.723 --> 00:28:02.584
Absolutely crazy.
402
00:28:02.984 --> 00:28:05.285
The fact that we spend money, I'm gonna say it again.
403
00:28:05.686 --> 00:28:09.928
We spend money on cold people that we have never done service for.
404
00:28:10.228 --> 00:28:19.174
And we're paying to show up in their feed or show up in their mailbox or show up when they're searching when there are people in our database that have raised their hand and said, I want services from you.
405
00:28:19.474 --> 00:28:22.016
And even if they decline, they're fully qualified.
406
00:28:22.336 --> 00:28:31.962
And furthermore, the people that have done service for you, you have a credit card on file, they have paid you in the past and demonstrated not only their need for the service, but their ability to pay.
407
00:28:32.462 --> 00:28:33.183
That is crazy.
408
00:28:33.663 --> 00:28:41.468
And using text messages will allow you to be able to capitalize on that audience and on a monthly basis, have work when you need it, on demand.
409
00:28:41.708 --> 00:28:42.949
Like, I want leads when I need them.
410
00:28:43.429 --> 00:28:44.089
This is how you do it.
411
00:28:44.269 --> 00:28:48.292
You generate text messages that go at your customers based upon, oh, I don't, you know,
412
00:28:48.452 --> 00:28:49.633
My backlog is only a week long.
413
00:28:49.933 --> 00:28:56.278
Great, send out text messages and get 40, 50, 60 estimates coming in and being able to fill up your schedule when you need that.
414
00:28:56.378 --> 00:28:59.800
Instead of, the other way to do on-demand estimate generation, by the way, is what?
415
00:29:00.201 --> 00:29:01.281
Spend more money on Facebook.
416
00:29:01.622 --> 00:29:02.562
Spend more money on Google.
417
00:29:02.822 --> 00:29:04.804
Pump the more money into the marketing machine.
418
00:29:05.144 --> 00:29:11.152
And I do believe that the vast majority of home service business owners that are wanting to grow underspend on advertising.
419
00:29:11.292 --> 00:29:11.973
I do believe that.
420
00:29:12.393 --> 00:29:21.004
But I also, also believe that 99% of us do not send enough messages to our customers to upsell them.
421
00:29:21.511 --> 00:29:26.736
to remind them that we even exist because there's nothing more frustrating than you doing a job.
422
00:29:27.197 --> 00:29:31.100
Let's just say you're mowing grass and then they hired someone else to do the tree pruning.
423
00:29:31.160 --> 00:29:32.722
And you're like, what in the world?
424
00:29:33.162 --> 00:29:33.923
Why would you do that?
425
00:29:34.284 --> 00:29:35.104
And it's your fault.
426
00:29:35.625 --> 00:29:40.149
It's my fault because we never told the customer that we can solve that problem for them also.
427
00:29:40.410 --> 00:29:42.211
And you can use text messages to get through.
428
00:29:43.613 --> 00:29:44.974
I believe in value-based pricing.
429
00:29:45.555 --> 00:29:52.161
I think that reason home services is so low price and everyone in their industry is like, my industry is so horrible.
430
00:29:52.502 --> 00:29:53.423
My area is so horrible.
431
00:29:53.543 --> 00:29:56.626
I just talked to a plumbing company the other day and they feel the exact same way.
432
00:29:56.886 --> 00:30:02.812
They have private equity moving in that are willing to operate on one to 3% margin and undercut them on every single job.
433
00:30:03.112 --> 00:30:06.075
They're willing to do stuff for free that they can't even do for less than $300.
434
00:30:06.435 --> 00:30:07.116
That's difficult.
435
00:30:07.496 --> 00:30:12.299
And yet there are people in other industries looking at plumbing or HVAC like, oh man, if I could just get those other services.
436
00:30:12.639 --> 00:30:13.919
It is the shiny service syndrome.
437
00:30:13.939 --> 00:30:15.260
It is always another service.
438
00:30:15.500 --> 00:30:17.221
It is always another industry that is easy.
439
00:30:17.341 --> 00:30:19.142
But I am a big fan of value-based pricing.
440
00:30:19.442 --> 00:30:24.345
And that is, instead of thinking about how do I get this customer and lower price, I'm going to think how can I raise value?
441
00:30:24.565 --> 00:30:27.186
Because ultimately, the value equation is simply this.
442
00:30:27.547 --> 00:30:28.867
The transaction will take place.
443
00:30:30.508 --> 00:30:32.109
The transaction is consummated.
444
00:30:32.289 --> 00:30:33.950
Value is higher than price.
445
00:30:34.390 --> 00:30:36.931
So if I think that this water bottle – very good, by the way.
446
00:30:36.951 --> 00:30:38.492
One of the owners of Augusta Nation gave it to me.
447
00:30:38.512 --> 00:30:39.173
Thank you very much.
448
00:30:39.513 --> 00:30:48.217
If I think that this water bottle is worth to me $50 because I'm out in the middle of the Sahara Desert and I'm super, super thirsty and it's full of water, I'm like, my gosh, I'll pay $50 for that.
449
00:30:48.237 --> 00:30:49.217
I'll pay $100.
450
00:30:49.618 --> 00:30:55.521
If the price – so if my value is $50 and the price is $20, I will buy said water bottle.
451
00:30:55.841 --> 00:30:55.981
Now.
452
00:30:56.441 --> 00:30:59.883
If the water bottle is $1,000, price is way higher than value.
453
00:30:59.963 --> 00:31:02.224
I will not, the transaction will not be consummated.
454
00:31:02.404 --> 00:31:04.646
So the same thing is true when it comes to your jobs.
455
00:31:05.106 --> 00:31:08.108
You're saying, hey, the price is $500 in the mind of the customer.
456
00:31:08.348 --> 00:31:09.729
Like, well, it's only worth $400.
457
00:31:09.869 --> 00:31:10.169
Guess what?
458
00:31:10.189 --> 00:31:14.391
They're not accepting the estimate because value is not higher than price.
459
00:31:14.791 --> 00:31:18.974
And so as soon as value exceeds price, then the transaction goes through.
460
00:31:19.374 --> 00:31:20.094
And here's the thing.
461
00:31:20.515 --> 00:31:24.617
That's why it's a race to the bottom, because you would always cut prices and eventually get them to accept.
462
00:31:25.113 --> 00:31:28.975
And so this is why we have a race to the bottom versus we all focus on value.
463
00:31:29.436 --> 00:31:30.176
And what is value?
464
00:31:30.636 --> 00:31:34.238
Value, everyone's starting to me to think, like my uniform and my trucks.
465
00:31:34.699 --> 00:31:37.560
There are people that aren't even at the property when you service it.
466
00:31:37.960 --> 00:31:40.242
They don't see your uniforms, they do not see your trucks.
467
00:31:40.682 --> 00:31:45.185
What you can do without fail for every single customer is save them time.
468
00:31:45.825 --> 00:31:56.697
If you value your customers and you're wanting to improve the value proposition that you're offering in your service and create unique differentiation between you and your competition, you save your customer time.
469
00:31:57.177 --> 00:31:57.978
You know you save them time?
470
00:31:58.539 --> 00:32:00.040
Stop emailing them five times.
471
00:32:00.280 --> 00:32:01.061
It's going to spam.
472
00:32:01.101 --> 00:32:04.485
Stop calling them to follow up when they haven't even got the estimate.
473
00:32:04.745 --> 00:32:05.727
Send them a text message.
474
00:32:06.007 --> 00:32:07.309
They can see it in three seconds.
475
00:32:07.750 --> 00:32:15.000
Assuming that your software is mobile-friendly, they can be able to view it on their mobile device, accept, ask for work change orders, or decline it immediately.
476
00:32:15.361 --> 00:32:16.202
Save them time.
477
00:32:16.222 --> 00:32:19.226
I'm going to talk about, inside the book, I talk about instant pricing.
478
00:32:19.627 --> 00:32:29.799
The reason instant pricing works is because it attracts the type of customer that values their time, not the person that wants to spend an hour talking about every little thing on the estimate, every little part of the job.
479
00:32:30.019 --> 00:32:36.027
It's gonna be nitpicking you, it's gonna be calling you back the week after because some crazy, tiny little thing on the project went wrong.
480
00:32:36.367 --> 00:32:38.770
The person that values their time is your highest value customer.
481
00:32:38.890 --> 00:32:41.152
And in order to win them over, you respect their time.
482
00:32:41.873 --> 00:32:46.498
Uber is not cheaper in many times than a cab.
483
00:32:46.999 --> 00:32:51.404
If you go to a place and you look at a yellow cab, and then you look at Uber, many times the yellow cab is cheaper.
484
00:32:51.864 --> 00:33:11.826
However, the perception and the value of saving time, because I can see that three minutes away is my Uber, I can track it on a map when it's getting to me, that perception of me saving time is why Uber has become a multi-billion dollar business and taken over more than 70% of the cab driving industry.
485
00:33:12.186 --> 00:33:13.448
By the way, only 15 years ago,
486
00:33:13.788 --> 00:33:18.311
They had none and it was completely fragmented and no one owned more than 2% of the market.
487
00:33:18.351 --> 00:33:19.952
So what's gonna happen with home services?
488
00:33:20.412 --> 00:33:25.675
Home services right now, for example, I'm gonna take lawn care for example, 600,000 landscapers in the United States.
489
00:33:26.216 --> 00:33:29.598
No one, no one owns more than 1% of the residential market.
490
00:33:29.918 --> 00:33:32.179
And even of the commercial market, no one owns more than 2%.
491
00:33:33.160 --> 00:33:33.741
That's crazy.
492
00:33:34.221 --> 00:33:35.923
That's what we call a fragmented market.
493
00:33:36.143 --> 00:33:37.004
What's going to change that?
494
00:33:37.024 --> 00:33:41.749
It's going to be people that adopt the technology of things like text messages that save time for the customer.
495
00:33:42.109 --> 00:33:49.157
And so to all the naysayers that always say that I'm always against people and Augustination is going to put them out of business and all this other stuff, that's crazy.
496
00:33:49.657 --> 00:33:56.040
Simply this, I am giving you the roadmap to do exactly what I believe in is going to completely consolidate this injury.
497
00:33:56.080 --> 00:34:01.502
And I do believe there's going to be players that own 5, 10, 15% of the market in many home services.
498
00:34:01.982 --> 00:34:08.364
And it's going to be, it's going to be the businesses that adopt technology and use that technology to save the customer time.
499
00:34:08.625 --> 00:34:12.066
And then they're able to charge a premium price because they save the customer time.
500
00:34:12.306 --> 00:34:22.369
And so when you do things like instant pricing, when you use text messages, instead of sending archaic emails or printing off the estimate, putting it underneath their mat, you are decreasing value when you do those things.
501
00:34:22.589 --> 00:34:28.210
When you text the customer from iMessage, yeah, it'll be $400 for the Moltenstall.
502
00:34:28.570 --> 00:34:39.093
You're reducing value versus having a link that they can see in writing everything that's included, what type of materials, when the job's gonna be completed, that you're charging tax, this is value addition.
503
00:34:39.573 --> 00:34:42.904
And instead of reducing our prices, we need to focus on increasing value.
504
00:34:43.084 --> 00:34:47.337
And the number one way to increase value 100% of time, no one wants to waste time.
505
00:34:47.578 --> 00:34:50.426
And so save them time by sending them text messages.
