Why This $1.2M Business Can’t Afford to Grow

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Hey everyone, it's Mike Andes and today is going to be a one-on-one coaching call that I had with a business that has over 1.2 million dollars selling garage doors, doors, and windows out from Canada.
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But this is a great call because I actually had a call with him last year and he was in a very commoditized business where he was selling wholesale to manufacturers and dealers and other contractors.
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He's been able to move now into much more of a retail direct to consumer model, where he's able to charge a much higher price and was able to raise prices by 25%.
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This is a great coaching call.
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I think it'll be a lot of good takeaways for you.
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I looked at your site, made some really good changes.
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Maybe just kind of fill me in since we talked last.
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So I guess at the time the question was about hiring the technicians and stuff for the garage tours, right?
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So originally I was going to go ahead and order both tech or hire both technicians, sorry,
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and bring him on board and execute the way we had talked and stuff.
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But then I guess something fell through and one of the guys that was working for his dad, I guess his dad and his brother, they were working on trying to get the business back on track and were able to iron some things out.
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So he ended up just staying with the family business.
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So I ended up just getting one of the technicians, which was actually good because we didn't grow as fast as I thought we would and we didn't have the proper team in the office.
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So things have been good, but since then we grew, we've done a pretty good year and I just recently brought in a very experienced office manager that's going to run the show, tell us what to do and runs part of our marketing and all that stuff.
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So that kind of
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clears up my hands for sales and operations and all that stuff.
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And that's kind of where we're at right now, you know, just working on growing and stuff.
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And, you know, with the big overhead that we have, I noticed that overhead is quite big.
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And since we do manufacturing and installs and service work,
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I'm having a hard time figuring out how do we split up the overhead, like how do we split the overhead into each division to make sense because what I've noticed is in the garage door service side of it, we've got like all the local companies, their overhead is nothing compared to ours.
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They've got a little office, a little shop and their overhead, like the building is paid for.
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Their only overhead they have is their guys, their payroll and their trucks maintenance and stuff, right?
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So at the end of the day, I'm not terribly concerned.
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I know we can brand and we can, you know, present ourselves more professional than they can, but just, you know, at the end of the day, basically I've been really struggling, kind of going back and forth.
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How do I split up the overhead for the manufacturing?
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Cause most of the overhead that we have is in the manufacturing side of it, right?
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Or like we use most of the space that we have for the manufacturing and then also, you know, for the install team.
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And then we also do quite a bit of wholesale and windows, you know, how do we split that up?
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And then also, yeah, kind of go from there.
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Cause obviously,
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the profits that I would like to make right now seems like it's not really working just because our overhead is so big we have to grow bring in a bigger team so the overhead gets split up in between more people right yeah like is most overhead wages or is it like a fixed expense of the shop and no at this point it is
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The shop is a big one and then the overhead team.
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So we've got three people in the office right now.
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So that's kind of the big one, but we kind of have to have the team in the office that we have to grow to the next level.
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But when it really comes down to like, even if I get rid of one of the guys in the office,
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you know, we're still we're still in trouble, right?
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We need the team that we have in the office right now to grow to the next level.
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Yeah.
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So like the two part question, I think the part we'll focus on is like basically we need to grow, right?
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So from a lead gen perspective, but then in terms of accounting for the overhead, what can you do?
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You could just do a time analysis and figure out what percentage of their day is actually spent on the service versus the manufacturing and then just do like a journal entry.
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Do you have different QuickBooks accounts or like accounts for manufacturing versus service or is it all blended?
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It's all blended.
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And I've got a team for like my shop team stays in the shop and my field team stays in the field.
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Right.
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So I mean, we're doing.
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You're trying to determine like, OK, these three overhead people, their wages, are they considered overhead for manufacturing or for service?
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Is that your main problem?
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Yeah, yeah, kind of.
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Yeah, just trying to figure out where the overhead goes and how to kind of split that up because I kind of know my big number on what their overhead is a month and it's ridiculous.
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I just kind of need some insight on how to kind of split that up and kind of, I guess, help create a structure for growth to where it makes sense.
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Is most of the growth going to come on the service side?
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No, I don't think so.
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No, because since I guess since November, we just launched the website and we were talking about going straight to the public with our product.
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At the time, it was kind of between kind of back and forth.
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We've launched we're 100% to the public.
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Now we got rid of most of our dealers.
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We've we've been very successful with it.
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It's just now, you know, we get quite a bit of leads on the window and door side of it, quite quite a bit of leads on the windows and doors.
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And then
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the garage doors and stuff.
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The majority of the sales, the majority of the stuff that we get, like the quote we sell, but there's quite a bit of quotes that we do, like the price are just too high, and it turns out the competitor down the road is less.
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And just trying to, I guess, find a way to justify, you know, lowering the prices and see how that would make sense.
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Okay.
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Yeah.
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So like if the growth was on the service side, you know, and you're going straight to the manufacturing, because you're not installing the doors, are you?
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We are now.
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Yes.
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We're selling and installing, like we're selling to the homeowners and installing and everything.
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We don't really have any.
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From a revenue perspective, what percentage of the sales, what are like installation and service versus the manufacturing?
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Okay.
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Hmm.
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From a revenue perspective, hmm.
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You just think here manufacturing versus in versus like the installs.
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Well, for every door that we make, we basically install too.
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Right.
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So it kind of goes a hand in hand.
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Got it.
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Okay, cool.
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Um, then I would not worry too much about splitting up your overhead between manufacturing and service.
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If you're basically making it and then you're going and installing it.
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I think that if you're not, if you're not also just selling the manufactured door by itself without installation, I would consider that all the same process.
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Mm-hmm.
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Yeah, I guess, okay, I guess kind of thinking back now, I guess.
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Yeah, so I guess there's some wholesaling stuff like for new construction projects where we do supply only.
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And I guess that's where we just do, you know, make the doors and the delivery where they would pick them up.
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And that's all we have to do with it.
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And that's kind of where it gets sticky because there's companies that are going to do higher volume than we do so we can afford to sell for less.
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Got it.
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So lower margins when you don't install, but you're just producing the door.
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Yeah.
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And do you think that's like 20% of revenue that you're just doing that?
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I would say 20 to 30, yeah.
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Okay.
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I wouldn't be too concerned about splitting up the overhead, like in terms of like, okay, this is like overhead for manufacturing, this is overhead for service, because 70% of your revenue is coming from something where that's going to be very, very murky.
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Like the handoff from like, when is this manufacturing versus when is this installation?
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Yeah.
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until you got to the point where you had, like the departments are so split, you'd have different teams for admin, right?
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You have different teams for, okay, you guys get the door made, you guys get the door installed.
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But I think it's probably you double or triple the size of the business before you actually have different teams for those two different admin functions.
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So I wouldn't be too concerned with that.
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I think the big question is how do we grow the business to the point where the three people in the office makes sense, right?
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Yeah.
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Okay, cool.
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And so what's the growth been like in terms of revenue?
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What's the margin?
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Like, give me a little bit of numbers so we can then focus on, Hey, what's the, what's the growth strategy?
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So in terms of numbers, growth and stuff, like I said, we basically restructured the business at the end of last year, all of the customers that we used to have that brought us up to the million dollars in revenue.
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We don't really have much left of those customers just because of the unique economy, they all went.
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for a lower quality product.
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So in terms of numbers, we're still like last year, I think we did 1.1 and right now we already did 1.1 so far this year.
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So we're on track to do about 1.4, 1.5.
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Got it.
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And then as far as like the bottom end,
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Honestly, you know, we keep, you know, hiring people and stuff so that overhead keeps growing.
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So far at the overhead rate that we're right now, a lot of the projects I've been selling, we've been we've been able to sell them at like a 30, 30 to 40 net, depending on the client.
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Sometimes you've got to trim it up a little bit or whatever, but that's kind of where we're what we've been able to do.
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Yeah.
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And it's the over that's killing you because at the end of the day, like the bottom line, okay, got it.
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Okay.
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And what's the goal for the business ape?
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Are you trying to like take this to 5 million?
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Are you trying to just make this more profitable at 2 million?
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What's, what's kind of the goal?
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Um, I haven't really looked at, I guess at the end of the day,
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They goal, it is basically what I've realized is because we basically have two business, right?
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We do the manufacturing and the installs.
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There's not many companies around here that do that.
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They do either one or the other.
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We're doing both.
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So with a team that is required to run this business properly, I think we're going to have to be right around the three mil mark to be, you know, like good and profitable.
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That's kind of the goal to get to that.
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And with the team that we have right now, we've got eight players in every division with everything that we do.
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From there, we can just hire helping hands and stuff.
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I'm fairly confident that that's reachable in about, I would say about two years, we should be able to hit that.
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Okay, cool.
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All right.
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Well, I got enough context.
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So feel free if there's specific questions, we can dive in, whether it be, you know, marketing channels or whatever.
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But yeah, that's great.
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I have full context now.
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So from your opinion, is it mostly just lead gen?
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Like, how do we get more leads in the door?
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Yeah, so we're working on that.
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We haven't really done much in advertising Google Ads.
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We've been getting quite a bit of leads.
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Real quick, before we continue with the episode, I want to introduce you to home service web design.
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If you are a home service business owner and trying to get more leads and drive more traffic to your website with great search and optimization, you'll definitely want to check it out.
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It's flat monthly fee will allow you to grow your business and most of our clients within 12 months, double the amount of lead they get.
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from their website.
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We started the Google ads just because I hired another person and she's very experienced so it's quite costly to bring her in but it's a good investment and I'm confident we'll get to the next step.
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So yeah, leads isn't one thing and it's just, I've seen companies, they blow up and grow with like fairly quick, right?
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And I know their numbers are, you know, they'll blow everybody at the park when it comes to pricing and stuff.
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And for me, I have a hard time justifying that because, you know, at the end of the day, what we do is we offer lifetime warranty in the product and workmanship.
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So I just have a hard time, you know, trimming my prices down so far.
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And the other thing is, so the other thing that I've been looking at is once we get more efficient, we have a bigger team.
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Most of the overhead that we have right now gets split up between another two or three people.
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And now we can afford to sell less and still have a healthy profit margin.
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You see what I mean?
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That's just because I see you guys are probably doing something very similar in the lawn care business, right?
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And that's just kind of, I guess I need some insight on how to justify that side of it.
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Because I know if I drop my prices, we can do a lot more, but it seemed like, you know, we're not really going to profit much until we get a bigger team and we get busier.
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Like, does it make sense?
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Like, is that justifiable?
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Yeah.
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Like, what's the close ratio right now?
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And what percentage of your jobs that you give a bid are accepted?
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I would say we're probably 60, high 60s.
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I'm inclined to raise your prices.
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I know you don't want to hear that.
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Yeah, so raise prices, but...
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If you're trying to become profitable, if you raise prices by 10%, you would probably double your net profit on the bottom line.
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And I think if you raise your prices, you'd probably go from high 60s to high 50s.
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Mm hmm.
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Yeah.
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But I guess the extra, the extra margin also give you the money to like really focus on marketing.
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Yeah.
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And the other thing is we're not a capacity.
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I don't know if that makes it, if that changes it.
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Well, it just depends.
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That's why I actually like the goal of the goal of the business is cash constrained.
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Then I would push in the direction of raise prices and cut one person to get to capacity.
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If you're like, Hey, we're, we got plenty of cash and I just need to grow this thing.
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And I want to keep everything.
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No, I do not hire one if I lay anyone off.
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Great.
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Then we're going to market like crazy, fill the lead hopper full and not be very profitable for this year.
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And then do exactly what we talked about raising prices next year.
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It just comes down to like the cash position of the business.
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If the cash position is healthy and like, hey, I got a month worth of revenue in the bank.
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No problem.
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We're good to go.
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Then I would be, okay, great.
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Like, let's just go focus on marketing and drive more leads in and figure out like, what can we do there?
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And, you know, close 70% of jobs.
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Great.
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But at 70%, I just know if you raise prices by 10 to 15%, you would hardly see an impact in your close ratio, maybe 5%.
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And doing that would double your profit margin.
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Mm hmm.
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Okay, all right.
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So it really comes down to like risk tolerance and then cash position.
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Because you have high risk talent.
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Go ahead.
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As far as like the cash situation, we're not in greatest shape just because we spent a lot of money to like the showroom and all that stuff, you know, upgrading our website.
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And we've done a lot of SEO work and all that stuff.
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So we are in a bit of a tough spot and we have to grow and get to the next level with the overhead that we have right now with the admin.
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Because for me, the admin side of it and the office side, bookkeeping, all that stuff, it's my weakness and it's a big mess.
209
00:13:00.189 --> 00:13:01.430
We're getting that all sorted out right now.
210
00:13:01.890 --> 00:13:05.953
And with the person that I have in here, like Lynn, she's going to get this all sorted out.
211
00:13:06.033 --> 00:13:11.317
And we just have to make sure that we all stay busy as a full team so we don't all of a sudden sit around and do not a whole lot.
212
00:13:11.417 --> 00:13:12.217
I think we can do both.
213
00:13:12.258 --> 00:13:12.438
Right.
214
00:13:12.478 --> 00:13:18.861
So I, I personally believe if you raise your prices by a minimum of 15%, you would lose some customers in terms of your close rate.
215
00:13:19.121 --> 00:13:21.283
Like, first off, I don't know if we know our close rate.
216
00:13:21.383 --> 00:13:23.064
Like, I think we need to actually dig into that.
217
00:13:23.084 --> 00:13:25.305
And what is that number before we move forward?
218
00:13:25.465 --> 00:13:26.966
So we can actually track them in the future.
219
00:13:27.286 --> 00:13:33.069
I would also look at what your close rate rate is like last August and September, because like it's seasonal to some degree too.
220
00:13:33.529 --> 00:13:35.250
So I would really know that number.
221
00:13:35.430 --> 00:13:39.453
Then I would raise my prices and I would say, okay, where's the close ratio land after that?
222
00:13:39.633 --> 00:13:40.173
I, I,
223
00:13:40.313 --> 00:13:44.637
I can almost guarantee you it will not drop more than 10%, but you will double your profits.
224
00:13:44.657 --> 00:13:46.718
You're like, well, then, well, how, like, we're not at capacity.
225
00:13:47.019 --> 00:13:51.623
We're going to take half of that extra revenue that we're generating, our extra profit, and put it into marketing.
226
00:13:51.843 --> 00:13:57.628
So we generate so many more leads, and our close ratio is going to drop marginally, but we're going to be able to double how much we spend on marketing.
227
00:13:57.848 --> 00:13:58.028
Mm-hmm.
228
00:13:58.188 --> 00:14:02.793
And so now your strength, like sales, going out and marketing, you focus on that.
229
00:14:03.053 --> 00:14:06.276
You then have the margin to cover Lynn on the admin side.
230
00:14:06.497 --> 00:14:07.598
So things get dialed in.
231
00:14:07.938 --> 00:14:12.563
And then because you focus on the sales, you will drive enough leads to be able to keep your crew busy.
232
00:14:13.444 --> 00:14:18.529
But at 70%, like assuming it's 70% in terms of a close rate, I don't care what anyone says.
233
00:14:18.649 --> 00:14:18.989
I don't care.
234
00:14:19.009 --> 00:14:21.091
Your competition is you are not high priced.
235
00:14:21.812 --> 00:14:22.032
Yeah.
236
00:14:22.192 --> 00:14:22.432
Yeah.
237
00:14:22.712 --> 00:14:22.932
Yeah.
238
00:14:22.992 --> 00:14:24.413
Based on the value that we bring to them.
239
00:14:24.433 --> 00:14:24.553
Right.
240
00:14:24.573 --> 00:14:28.313
Because we've got a lot of guys in the area that, you know, that are less than half the price than we are.
241
00:14:28.353 --> 00:14:30.314
It's just, but we, I know the value that we've.
242
00:14:30.434 --> 00:14:34.035
Every single time, every time you give them an estimate, it's a ballot and they're just like, yes, we are willing.
243
00:14:34.155 --> 00:14:36.655
And if 70% of people are willing, like you are not overpriced.
244
00:14:36.875 --> 00:14:44.037
It's like, I think the fastest lever in this business to make it profitable and then have margin to go grow is going to be raised price of 15%.
245
00:14:44.057 --> 00:14:44.197
Mm-hmm.
246
00:14:45.417 --> 00:14:50.964
And then you just dedicate in your mind, okay, maybe I need two months of that to help my cash flow a little bit, bring margins up.
247
00:14:51.184 --> 00:14:55.009
But then I'm going to take a big chunk of this and I'm going to go start marketing and drive in way more leads.
248
00:14:55.189 --> 00:15:02.598
Because if you're able to double the lead flow because of better marketing, but your close ratio drops by 10% because of higher prices, that's a really good thing.
249
00:15:02.938 --> 00:15:04.100
Mm hmm.
250
00:15:04.180 --> 00:15:04.821
I see that.
251
00:15:05.142 --> 00:15:05.943
Mm hmm.
252
00:15:05.963 --> 00:15:15.297
And by doing all of that, it's also going to get busy and bring in more people in the fixed overhead is going to get divided because we're going to have more generating revenue guys in the shop.
253
00:15:16.478 --> 00:15:16.779
Mm hmm.
254
00:15:17.219 --> 00:15:17.360
Yeah.
255
00:15:17.400 --> 00:15:18.141
Now, as far as.
256
00:15:19.418 --> 00:15:22.941
Yeah, I guess as far as like the marketing and stuff like that, what would you suggest doing there?
257
00:15:23.082 --> 00:15:31.209
Well, this kind of leans into like why last year we talked about moving into this market is because they are going to be less price sensitive than those, the dealers and like all that stuff.
258
00:15:31.229 --> 00:15:37.595
So I think this is why we did this, this hard transition is that you, like the whole goal here is to be able to raise our prices.
259
00:15:37.835 --> 00:15:41.676
And you deliver enough value where 70% of people say, yes, we should be raising prices.
260
00:15:42.736 --> 00:15:43.857
And so we do that.
261
00:15:44.037 --> 00:15:47.017
We get enough margin now to be able to then spend money on marketing.
262
00:15:47.517 --> 00:15:50.518
And then it just comes down to, okay, right now, where are the leads coming from?
263
00:15:50.658 --> 00:15:53.199
Where are they coming from now?
264
00:15:53.219 --> 00:15:54.419
Is it like all Google?
265
00:15:54.559 --> 00:15:56.140
Is it people walking the door?
266
00:15:56.640 --> 00:15:57.720
Where are the leads coming from now?
267
00:15:58.409 --> 00:16:00.691
Um, there's Google, there's walk-ins.
268
00:16:01.152 --> 00:16:07.618
Um, some come through our social media that we have, like we do, we have a team that does, like, creates contents and posts and everything.
269
00:16:07.638 --> 00:16:09.319
They shoot the videos and all that stuff.
270
00:16:09.780 --> 00:16:11.941
Um, and there's yard signs, door hangers.
271
00:16:11.982 --> 00:16:14.304
Like, whenever we go and sell a job, we set up a yard sign.
272
00:16:14.324 --> 00:16:16.125
We do 10 to 15 houses in the neighborhood.
273
00:16:16.486 --> 00:16:20.209
Um, literally with our trucks driving around, just, just a mixture of everything right now.
274
00:16:20.289 --> 00:16:28.497
Yeah, so the first thing I think Lynn will probably bring up as she moves in admin is probably we need to know the referral source for every single – because we don't know where they're coming from.
275
00:16:28.517 --> 00:16:31.700
We don't even know where to spend the money once we have it to deploy.
276
00:16:31.841 --> 00:16:39.728
If everyone's saying they saw your yard signs, all of a sudden, once you get an extra $10,000 a month in profit because of the price increase, you're going to spend half of it on more yard signs.
277
00:16:39.849 --> 00:16:40.009
Yeah.
278
00:16:40.389 --> 00:16:40.649
Right.
279
00:16:40.949 --> 00:16:42.530
But we don't know what that mix is right now.
280
00:16:42.550 --> 00:16:49.791
We don't know how many are actually coming from Google, how many are actually coming from Walk-In, how many are actually coming from Facebook, how many are actually coming from the yard signs.
281
00:16:50.051 --> 00:16:56.013
And without that, we are flying blind, especially because you have the physical component of Walk-Ins.
282
00:16:56.933 --> 00:17:04.935
That is very difficult to then know, to be able to know where that's coming from because they might have seen you on Facebook, but then they walk on the door.
283
00:17:05.315 --> 00:17:08.716
I need to know that it can't – I'm still going to attribute that to Facebook.
284
00:17:08.836 --> 00:17:10.156
So I know that's where I need to spend more money.
285
00:17:10.356 --> 00:17:12.398
Yeah, 100%.
286
00:17:12.799 --> 00:17:13.039
Okay.
287
00:17:13.379 --> 00:17:16.202
So as far as like running Google ads and stuff, what's your experience?
288
00:17:16.222 --> 00:17:19.686
How long does it usually take till you actually see Google ads doing something?
289
00:17:19.866 --> 00:17:23.190
It should be pretty much instant because you're searching intent-based marketing.
290
00:17:23.310 --> 00:17:29.036
So if someone searches in this area, garage doors, windows, or doors, like I should be popping up.
291
00:17:29.156 --> 00:17:30.677
So that should be relatively instant.
292
00:17:30.697 --> 00:17:34.440
And what's nice about Google is you can track how many people actually do submit a form.
293
00:17:34.520 --> 00:17:36.862
So that's like the easiest form of like tracking.
294
00:17:37.422 --> 00:17:39.504
That's why online is so much easier than in person.
295
00:17:39.524 --> 00:17:44.748
As soon as you move in in person, people walk in the door, everyone needs to, we all need to know where that person come from.
296
00:17:44.868 --> 00:17:46.849
Like, I will not say, oh, we just saw you.
297
00:17:46.889 --> 00:17:47.590
Like, no, you didn't.
298
00:17:47.870 --> 00:17:48.790
Like, do you see my truck?
299
00:17:48.970 --> 00:17:49.751
Do you see my yard sign?
300
00:17:49.771 --> 00:17:50.831
Did someone tell you about us?
301
00:17:51.091 --> 00:17:52.812
Like, did your contractor tell us?
302
00:17:52.832 --> 00:17:54.852
Like, you gotta know.
303
00:17:55.333 --> 00:17:58.634
And I think once we have that data, we can move forward.
304
00:17:58.654 --> 00:18:04.356
But like from Google's perspective, I should be able, like if I run an ad within a week, it should zero in pretty quickly on my keywords.
305
00:18:04.416 --> 00:18:07.057
I should be able to give it negative keywords that aren't useful for me.
306
00:18:08.297 --> 00:18:10.198
I should be able to track that very, very quickly.
307
00:18:11.018 --> 00:18:11.178
Yeah.
308
00:18:11.418 --> 00:18:13.339
Do you have someone doing your ads now for Google?
309
00:18:13.807 --> 00:18:14.828
Yeah, Lynn is doing that.
310
00:18:14.988 --> 00:18:18.771
Does she know how to put like a Google tracking code behind your lead form and stuff?
311
00:18:18.951 --> 00:18:19.111
Yeah.
312
00:18:19.151 --> 00:18:25.016
So what she did is she used to run Google Ads for a dealership, which is probably about 10 years ago or so.
313
00:18:25.416 --> 00:18:26.517
So everything has changed.
314
00:18:26.537 --> 00:18:31.421
So what she did is she was on the phone with a rep from Google Ad.
315
00:18:31.761 --> 00:18:32.762
They walked her through everything.
316
00:18:32.782 --> 00:18:33.563
They tracked everything.
317
00:18:33.703 --> 00:18:34.884
You know, they fine-tuned everything.
318
00:18:34.904 --> 00:18:37.205
And in front of it, she just copied and pasted the rest of it.
319
00:18:37.225 --> 00:18:39.067
So yeah, the track and everything, it's all dialed in.
320
00:18:39.147 --> 00:18:42.531
Do you know what your customer acquisition cost is right now from Google?
321
00:18:42.731 --> 00:18:45.735
Well, this is, we're literally on week one.
322
00:18:45.875 --> 00:18:48.078
Like, we just launched ads about a week ago.
323
00:18:48.098 --> 00:18:48.579
Oh, cool.
324
00:18:48.639 --> 00:18:48.879
Okay.
325
00:18:48.959 --> 00:18:55.988
So, like, the good thing is within a matter of hopefully a week or two, we should be able to see, okay, how many people clicked, how many people converted, how many people clicked.
326
00:18:56.088 --> 00:18:57.669
And then what was the value of those conversions?
327
00:18:57.930 --> 00:18:58.130
Right.
328
00:18:58.450 --> 00:19:01.172
So we should be able to have that those numbers here pretty soon.
329
00:19:01.913 --> 00:19:05.156
And then if it's a really good customer accruciation cause, like we just put more money on it.
330
00:19:05.396 --> 00:19:09.299
The thing with Google is there's only so many people searching in your area for those keywords.
331
00:19:09.580 --> 00:19:11.501
And so you might you might hit a threshold there.
332
00:19:11.541 --> 00:19:15.625
Like I can't spend more than $50 a day or $100 a day before it's like we're tapped out.
333
00:19:16.045 --> 00:19:17.767
And then we have to figure out, OK, do we go Facebook?
334
00:19:17.787 --> 00:19:18.768
Do we go yard signs?
335
00:19:18.788 --> 00:19:23.292
Do we just start disruptive marketing instead of intent based marketing, which is great from Google?
336
00:19:23.432 --> 00:19:23.712
Mm hmm.
337
00:19:23.972 --> 00:19:24.192
Yeah.
338
00:19:24.392 --> 00:19:25.974
Like what are you spending per day on that?
339
00:19:26.594 --> 00:19:30.017
So we have the Google ads are specifically for every town.
340
00:19:30.057 --> 00:19:33.640
So we got probably six ads because we got a pretty good area around us.
341
00:19:33.800 --> 00:19:36.142
We're doing about 15 to 20 bucks a town per day.
342
00:19:36.242 --> 00:19:36.422
Okay.
343
00:19:36.442 --> 00:19:36.862
That's pretty good.
344
00:19:37.002 --> 00:19:38.423
It's around 1500 bucks a month.
345
00:19:38.804 --> 00:19:39.604
Yeah, that's pretty good.
346
00:19:40.125 --> 00:19:47.350
And I think it's a function of, you know, if, if you run this for three weeks and now you have a customer acquisition cost and it's 20 bucks, we're like, okay, great.
347
00:19:47.370 --> 00:19:48.471
Let's put more money on this.
348
00:19:48.491 --> 00:19:51.714
Five more, $5 more per day per city.
349
00:19:51.854 --> 00:19:51.974
So.
350
00:19:52.514 --> 00:19:56.855
You should know within a week or two, like getting some good data, assuming that tracking code is set up correctly.
351
00:19:57.595 --> 00:19:59.376
You should start having some pretty good data on that.
352
00:19:59.516 --> 00:20:00.216
Mm hmm.
353
00:20:00.236 --> 00:20:00.396
Okay.
354
00:20:00.756 --> 00:20:01.036
All right.
355
00:20:01.256 --> 00:20:02.597
And the same thing is true with Facebook.
356
00:20:02.857 --> 00:20:06.217
Facebook is disruptive marketing, which means I can throw more money at it.
357
00:20:06.378 --> 00:20:15.420
But the same thing is true, like you can put a Facebook pixel behind that track, that that lead form and know exactly how many people are actually submitting estimates and then see how many of them convert and what the value of that is.
358
00:20:15.460 --> 00:20:19.501
So that's the nice thing about doing it online is you will get a very clean track.
359
00:20:19.641 --> 00:20:19.961
Mm hmm.
360
00:20:20.341 --> 00:20:20.601
Yeah.
361
00:20:20.741 --> 00:20:20.841
Yeah.
362
00:20:20.861 --> 00:20:29.783
And the other thing is like speaking of Facebook and Facebook marketing and stuff, there is a couple of big players in the area that are higher priced than we are.
363
00:20:29.803 --> 00:20:31.504
Actually, one of the companies I used to work for.
364
00:20:32.664 --> 00:20:37.865
How do we stand out from the crowd and how do we stand out and attract people to us?
365
00:20:37.905 --> 00:20:46.627
Because if we start running ads, if the crazy thing is they offer 50% off on their product or a thousand bucks off the door and stuff like that, we are not that high priced that we can afford to do that.
366
00:20:46.687 --> 00:20:48.528
How do we kind of stay up with the big boys?
367
00:20:50.328 --> 00:20:54.293
Well, this is why they're the big boys is because they figured out, okay, we go premium.
368
00:20:54.593 --> 00:20:57.317
And then when we need to get people in the door, we always have room to move down.
369
00:20:58.738 --> 00:20:58.999
Right?
370
00:20:59.299 --> 00:21:03.444
So this becomes a very much a game of, okay, well, maybe we don't raise prices by 15%.
371
00:21:03.464 --> 00:21:04.265
Maybe we're raising by 25%.
372
00:21:05.827 --> 00:21:08.689
Knowing that we have margin to move down in terms of making offers.
373
00:21:08.869 --> 00:21:09.749
We can use scarcity.
374
00:21:09.790 --> 00:21:10.550
We can use urgency.
375
00:21:10.610 --> 00:21:16.374
We can use the date, a holiday to say, Hey, everything's 10% off or a hundred dollars off this door.
376
00:21:16.394 --> 00:21:18.755
So, you know, there's a reason why they're big.
377
00:21:18.815 --> 00:21:26.460
And that is like, when you go, when you go premium, you now have the margin when needed to be able to move down and make an offer and get people to move.
378
00:21:26.520 --> 00:21:26.720
Yeah.
379
00:21:26.960 --> 00:21:33.407
Well, I mean, for me, I personally thought that we were already at a premium with a 40% net because, I mean, these are not low ticket items.
380
00:21:33.427 --> 00:21:36.730
Like, you know, there's three doors and we're about $10,000, right?
381
00:21:36.770 --> 00:21:39.473
So and I know these other companies, they're worse.
382
00:21:39.493 --> 00:21:45.600
But the biggest problem with them is when they go and quote a project, they would probably be right around $20,000 for those three doors.
383
00:21:46.080 --> 00:21:52.466
The moment they see a customer freak out or not trust me, whatever, they would almost instantly drop the price by 50% in their face right there.
384
00:21:52.646 --> 00:21:57.050
That's, you know, that's the kind of conversation that everybody's having in the area about those companies.
385
00:21:57.430 --> 00:22:05.076
And that's why I kind of like what they do to a point, but I also don't like it because, you know, they like us because we're like a family business and those guys are monsters, right?
386
00:22:05.096 --> 00:22:06.858
They're just, you know, doing crazy stuff.
387
00:22:06.938 --> 00:22:08.159
So here's what I would do.
388
00:22:08.179 --> 00:22:11.002
I would make it where – let's just call it the $20,000.
389
00:22:11.343 --> 00:22:13.285
It includes crazy offer.
390
00:22:13.325 --> 00:22:14.466
It's crazy good stuff.
391
00:22:14.486 --> 00:22:19.171
So, for example, we come back at month six and month 12, we do a tune-up.
392
00:22:19.231 --> 00:22:20.372
For example, I'm just making stuff up.
393
00:22:20.892 --> 00:22:29.041
You build tons of value that they don't even offer right now, like return service, maintenance, repairs, guarantees, warranties, whatever.
394
00:22:29.341 --> 00:22:37.945
And then you always have the ability to take stuff down in terms of scope of work and those guarantees, warranties, et cetera, to get within the price range of the customer.
395
00:22:38.025 --> 00:22:40.366
And so, for example, like right now you have workmanship guarantees, right?
396
00:22:40.566 --> 00:22:42.046
And what is that exactly?
397
00:22:42.066 --> 00:22:44.287
Like if you install a door, it's like, hey, if it ever breaks, we'll come fix it.
398
00:22:44.307 --> 00:22:45.348
Like, what does that, what does that look like?
399
00:22:45.368 --> 00:22:45.948
Yeah.
400
00:22:46.348 --> 00:22:52.070
I mean, literally if, if in this case here, I mean, there's hinges and there's seals and stuff that go, that go eventually.
401
00:22:52.090 --> 00:22:52.271
Right.
402
00:22:52.551 --> 00:22:54.832
When that day comes, we come out, we come and replace them.
403
00:22:54.852 --> 00:22:54.992
Right.
404
00:22:55.192 --> 00:22:55.452
You know,
405
00:22:56.072 --> 00:22:57.993
that's, that's kind of what we had to do.
406
00:22:58.013 --> 00:22:59.914
And that's why it got to the closing ratio where we're at.
407
00:22:59.954 --> 00:23:07.698
And also we're able to raise our price because we're selling more now than we did before was charging 25% less because just because of value we brought to them, right.
408
00:23:07.718 --> 00:23:08.438
And the way we speak.
409
00:23:08.478 --> 00:23:12.060
So, um, you know, the same thing again, you do the same thing.
410
00:23:12.080 --> 00:23:13.441
And we raised prices by 25%.
411
00:23:13.501 --> 00:23:15.101
We figure out more ways of adding value.
412
00:23:15.201 --> 00:23:15.441
Right.
413
00:23:15.802 --> 00:23:22.665
And so I think like if, what else could you do if, if like taken to the extreme, like if someone charged paid you three times as much for a door,
414
00:23:22.865 --> 00:23:28.249
What more could you do in terms of ongoing service, warranties, guarantees, if there's staining?
415
00:23:28.489 --> 00:23:30.270
What other things could you mix into that?
416
00:23:30.430 --> 00:23:35.974
Last year at Augusta Lawn Care, the average location grew revenue by more than 27%.
417
00:23:36.354 --> 00:23:38.515
And we're on track to beat that this year.
418
00:23:38.815 --> 00:23:50.123
If you want to see why, go to AugustaLawnCareServices.com slash franchise and watch over 50 videos and case studies of different owners that took their independent lawn care business and turned it into Augusta Lawn Care.
419
00:23:50.503 --> 00:23:52.265
Like garage doors, do you install those?
420
00:23:52.505 --> 00:23:52.726
Yes.
421
00:23:53.186 --> 00:23:56.930
And so, yeah, I guess until now, I've may have just been focusing on demand doors and windows.
422
00:23:57.251 --> 00:23:58.732
Garage doors is one of the other things.
423
00:23:58.792 --> 00:24:02.597
And that's, so the garage door pricing itself, there's just good margins.
424
00:24:02.617 --> 00:24:04.879
When it comes to servers work, it's not as good.
425
00:24:04.919 --> 00:24:07.082
But what I was thinking on the garage door side of it is because...
426
00:24:07.582 --> 00:24:10.345
Nobody offers the lifetime workmanship on garage roads around here.
427
00:24:10.565 --> 00:24:11.866
They all offer one year and that's it.
428
00:24:12.386 --> 00:24:15.789
Nobody offers lifetime parts replacement like springs and cables and weatherstripping.
429
00:24:15.869 --> 00:24:21.474
We have a product, we have a supplier that offers 25 years warranty on the panels and certain parts.
430
00:24:22.495 --> 00:24:24.156
So we can make that door bulletproof.
431
00:24:24.176 --> 00:24:31.963
The only thing that we'd have to do is if something goes haywire, if it spring breaks or something, we go out and replace it, which costs us 50 bucks, but some of them can sell for 400, right?
432
00:24:31.983 --> 00:24:34.585
So that's kind of what I'm thinking of doing on the garage road side of it.
433
00:24:34.945 --> 00:24:36.767
But I want to wait until I have a little bit more time.
434
00:24:36.787 --> 00:24:41.391
I want to keep putting gas on the windows and doors because that's where leads are coming in right now.
435
00:24:41.651 --> 00:24:44.473
Focus and then eventually go and sell the garages back to your customer.
436
00:24:44.493 --> 00:24:54.602
Because I realized that if I want to change the way we sell our garages or what we offer in the garage doors, I got to have a unique package and be ready to throw this out on the market and just go heavy on it.
437
00:24:55.042 --> 00:25:00.965
And I'm just not ready and I don't really have my team ready because I don't want to be the bottleneck to this.
438
00:25:01.005 --> 00:25:06.328
Like if a customer calls in and I don't have somebody in the office that can answer all these questions, then it doesn't make sense for me to do that.
439
00:25:06.348 --> 00:25:10.330
So we're planning on sending the guys out for some training and stuff in January.
440
00:25:10.831 --> 00:25:12.352
After that, we'll be able to launch for next spring.
441
00:25:12.372 --> 00:25:17.674
And that's kind of the goal is to offer lifetime warranty on the product and labor on the garage door side of it.
442
00:25:17.694 --> 00:25:20.116
And we're going to stay on the garage door side of it.
443
00:25:20.716 --> 00:25:24.060
The garage shop market and the window door market is two different markets in our area.
444
00:25:24.100 --> 00:25:25.822
Garage stores is a very low margin.
445
00:25:26.163 --> 00:25:30.508
Window and door, it's a very high margin, but it's also because of the value that they bring.
446
00:25:30.708 --> 00:25:39.659
I think both of those, you can always create an offer that's very high, very expensive, and has a ton of value that is easy to downsell into your regular offer.
447
00:25:40.099 --> 00:25:40.319
Right.
448
00:25:40.539 --> 00:25:50.302
So for example, with the garage door, like, yes, it's quote lower margin, but I can make if all of a sudden they pay me 50% more because I showed the value of what a lifetime warranty looks like.
449
00:25:50.322 --> 00:25:52.043
And it's like, look, this is like maintenance.
450
00:25:52.083 --> 00:25:52.883
This repairs.
451
00:25:53.143 --> 00:25:55.864
If anything happens, we're coming out here and we're going to fix it.
452
00:25:56.124 --> 00:25:58.364
That all of a sudden become a 50% margin business.
453
00:25:58.825 --> 00:26:03.226
If I'm able to sell the, the ongoing maintenance and the warranty into the, into the
454
00:26:03.566 --> 00:26:07.809
And in my own, honestly, to be like, hey, maybe you don't sell at the higher price.
455
00:26:07.849 --> 00:26:10.952
Maybe you sell at the regular price, but you sell a recurring package.
456
00:26:11.212 --> 00:26:14.855
So it's like, hey, on an annual basis, we come out, we change the, we tighten this up.
457
00:26:14.995 --> 00:26:15.615
We change this.
458
00:26:15.655 --> 00:26:16.436
We look at the tracks.
459
00:26:16.516 --> 00:26:17.457
We do the guide.
460
00:26:17.897 --> 00:26:18.898
You could create that list.
461
00:26:19.018 --> 00:26:21.820
And basically now you have a recurring stream of revenue from that same customer.
462
00:26:22.140 --> 00:26:24.842
And that recurring revenue is 40, 50, 60% profit margin.
463
00:26:25.042 --> 00:26:31.007
And so I think there's definitely ways that either A, you make a grand slam offer that's super, super valuable.
464
00:26:31.147 --> 00:26:32.468
And we get, some people are going to say yes.
465
00:26:32.568 --> 00:26:41.874
Like some people are going to say yes to a 50% more expensive door, window, or garage door if you say, here's all the extra stuff I'm going to give you that no one else is going to give you.
466
00:26:42.194 --> 00:26:45.356
And just you saying, hey, everyone in our market gives a one-year warranty.
467
00:26:45.516 --> 00:26:49.099
We give lifetime or we give 10 years, and that's this, and that's why it costs more.
468
00:26:49.299 --> 00:26:52.661
And the reason is because on average, every five years, you're going to need to do a repair.
469
00:26:52.681 --> 00:26:53.942
It's going to cost you a couple thousand dollars.
470
00:26:54.362 --> 00:26:56.703
Right now, this is going to allow you to be able to like forget about that.
471
00:26:56.743 --> 00:26:59.225
We come every year, make sure everything's on track, everything's correct.
472
00:26:59.385 --> 00:27:00.526
you know, doing good, whatever.
473
00:27:00.726 --> 00:27:02.987
But I think the same thing is true with doors and windows.
474
00:27:03.047 --> 00:27:13.793
It's a matter of just getting creative with like, what are the problems that they hit around year three, five, 10, trying to solve those upfront and giving them a really, really good offer that it warrants a 50% price increase.
475
00:27:13.974 --> 00:27:17.936
Like I think tomorrow we raise prices by 15% and nothing but good things happen.
476
00:27:18.016 --> 00:27:22.619
But what is the 50% increase and what value would we have to provide for that?
477
00:27:22.659 --> 00:27:23.479
That's the real quicker.
478
00:27:24.360 --> 00:27:24.960
Yeah, for sure.
479
00:27:25.140 --> 00:27:26.821
Yeah, no, that's a good thought.
480
00:27:26.861 --> 00:27:29.862
And I, you know, and I think it just goes back to what we just did this spring.
481
00:27:29.902 --> 00:27:30.062
Right.
482
00:27:30.082 --> 00:27:33.944
Because I mean, like I was giving like I was selling doors basically at cost just to keep my guys busy.
483
00:27:33.964 --> 00:27:35.065
And all of a sudden, like, you know what?
484
00:27:35.085 --> 00:27:37.186
Heck, I'm tired of playing this game for free.
485
00:27:37.526 --> 00:27:38.486
We're going to raise the prices.
486
00:27:38.526 --> 00:27:40.707
We're going to change the value that we bring to them.
487
00:27:41.108 --> 00:27:41.648
And it just.
488
00:27:42.388 --> 00:27:44.709
at this point they can't compare us to the small guys, right?
489
00:27:44.749 --> 00:27:48.692
All the customers that come to us right now, or most of them, they appreciate what we bring to the table.
490
00:27:48.712 --> 00:27:56.596
So, and I guess to a point, I think in one way, you know, like you mentioned selling, like when you sell garage doors, you sell them like a care package or something where we come in every year.
491
00:27:56.656 --> 00:28:03.100
I think one way is better to do that than to offer a lifetime because there's nobody maintaining the store, right?
492
00:28:03.180 --> 00:28:07.022
If we come in every year or so in, like in January, we're always dead slow.
493
00:28:07.042 --> 00:28:10.844
So if we have the team out in January coming out to inspect there to make sure everything's good,
494
00:28:11.609 --> 00:28:15.691
then we're in better shape and the smaller chance of something going wrong there.
495
00:28:15.851 --> 00:28:16.031
Yeah.
496
00:28:16.071 --> 00:28:20.133
And the warranty, a lot of times people are just like used to lifetime warranties doesn't mean anything.
497
00:28:20.373 --> 00:28:23.434
But if you say, hey, we guarantee this is always going to work.
498
00:28:23.574 --> 00:28:26.016
And to do that, we come on every six or 12 month basis.
499
00:28:26.296 --> 00:28:27.896
Now there's real value you're offering.
500
00:28:28.176 --> 00:28:29.937
You know, that's a 10 minute visit to them.
501
00:28:30.237 --> 00:28:33.799
That's like a lot of value that you could raise prices by 20 to 50 percent on them.
502
00:28:34.460 --> 00:28:39.225
So to sell them at a premium price, would you charge them a fee to go?
503
00:28:39.485 --> 00:28:47.313
Or would you have all the fees factored into the price where the inspection is free and whenever they need parts replaced and stuff, that would be extra?
504
00:28:47.434 --> 00:28:48.415
So you could do it two ways.
505
00:28:48.455 --> 00:28:50.257
You could say, hey, look, here's the price of the door.
506
00:28:50.997 --> 00:28:55.280
Um, and if you visit the package, I'm just gonna make up numbers, $10,000.
507
00:28:55.440 --> 00:28:57.041
That's our full package, our gold package.
508
00:28:57.061 --> 00:28:59.562
Our gold package is we're going to come here every single year.
509
00:29:00.022 --> 00:29:01.904
As long as you own this house, we will come here.
510
00:29:01.944 --> 00:29:02.924
We will inspect this thing.
511
00:29:02.944 --> 00:29:05.105
We will fix anything lifetime, whatever.
512
00:29:05.125 --> 00:29:05.866
It's too expensive.
513
00:29:05.966 --> 00:29:06.326
Okay, great.
514
00:29:06.486 --> 00:29:07.707
We can, we have two other options.
515
00:29:08.147 --> 00:29:11.752
One, we can sell you the $5,000 package, which is we install this and that's it.
516
00:29:11.933 --> 00:29:19.383
We also, by the way, the add-on to the $5,000 package is you can have us where every year we come back, it's $299 per visit.
517
00:29:19.543 --> 00:29:21.085
And we come out and we do all of these things.
518
00:29:21.386 --> 00:29:24.290
And if you don't want to pay the $10,000, you can pay the $5,000 with this add-on.
519
00:29:24.710 --> 00:29:27.951
So you have the premium offer, the downsell, and then the add-on.
520
00:29:28.111 --> 00:29:38.035
The add-on being, hey, if you want to be cheap about it, but you also want to be on this $2.99 a month subscription or $2.99 per year subscription, we'll come back and do all of these things.
521
00:29:38.095 --> 00:29:40.176
And those numbers are just made up.
522
00:29:40.416 --> 00:29:45.438
You would figure out what the numbers are for your industry, but then it builds value in the big offer too.
523
00:29:45.558 --> 00:29:50.040
It's like, hey, do you really want us to be coming every single and doing inspection that does not include repairs?
524
00:29:50.500 --> 00:29:52.281
Then just buy this other big package.
525
00:29:52.301 --> 00:29:55.902
It includes repairs and the actual visits coming to your house.
526
00:29:56.743 --> 00:29:56.943
Yeah.
527
00:29:57.703 --> 00:29:59.504
And yeah, I'm not sure if you answered.
528
00:29:59.524 --> 00:29:59.964
I'm not sure.
529
00:29:59.984 --> 00:30:01.005
Maybe I didn't catch it.
530
00:30:01.025 --> 00:30:05.006
So would that be just like the labor side of it or would it be the parts as well?
531
00:30:05.206 --> 00:30:08.868
I would probably do it where it's like, hey, it's an inspection, like the annual inspection.
532
00:30:09.409 --> 00:30:12.152
And then your grand time offers, like everything gets fixed.
533
00:30:12.493 --> 00:30:13.194
That includes everything.
534
00:30:13.214 --> 00:30:15.076
You will never have to pay anything else, right?
535
00:30:15.437 --> 00:30:18.962
And so you also know that people move every five to seven years typically.
536
00:30:19.202 --> 00:30:21.225
So you're really only warranting it for that long.
537
00:30:21.245 --> 00:30:25.892
But I would tie in little stuff, like what gets annoying about like say a garage door is like my batteries die.
538
00:30:26.192 --> 00:30:29.274
Or my kid plays with the little thing and it stops working the remote.
539
00:30:29.734 --> 00:30:31.856
Or someone pulls the lever and it gets off the tracks.
540
00:30:31.876 --> 00:30:33.337
Like all the little things.
541
00:30:33.677 --> 00:30:35.738
And then I would tie it back to warranties.
542
00:30:35.758 --> 00:30:39.321
For example, like within 24 hours, if this door doesn't open, we will be here.
543
00:30:39.941 --> 00:30:42.503
Those are the type of things that in their brain make sense to you.
544
00:30:42.523 --> 00:30:43.343
It's like, well, I got to grease.
545
00:30:43.363 --> 00:30:44.364
I got to tighten the chain.
546
00:30:44.684 --> 00:30:45.064
They don't care.
547
00:30:45.084 --> 00:30:49.868
It's like, look, if you have a problem with this door, if you click this button and it doesn't open, I'll be here within 24 hours.
548
00:30:49.888 --> 00:30:50.028
Yeah.
549
00:30:50.728 --> 00:30:56.969
If you either buy this Grand Slam one or the subscription, so I think it's just a matter of like, what's that value to them?
550
00:30:57.750 --> 00:31:01.370
And then realizing that let's just sell only 10 or 15% of people go after the big package.
551
00:31:01.750 --> 00:31:02.010
Great.
552
00:31:02.351 --> 00:31:05.751
You now have something to downsell into, which is your current pricing, right?
553
00:31:06.151 --> 00:31:06.652
Mm-hmm.
554
00:31:06.992 --> 00:31:07.712
Yeah, that makes sense.
555
00:31:07.832 --> 00:31:10.692
Just gonna take some notes real quick.
556
00:31:11.112 --> 00:31:12.853
Let's see, what else are we here?
557
00:31:13.813 --> 00:31:23.055
And I guess in that would also include, let's say, I mean, if something goes haywire on the door, let's say the door goes off track and gets destroyed, the panels and everything, everything would have to get redone.
558
00:31:23.376 --> 00:31:26.396
Then that would all kind of be included in the grandstand package there.
559
00:31:26.636 --> 00:31:32.918
And you can just run the math from like, hey, if this ever falls off this track and this all crumples up, that could be a $3,000 fix.
560
00:31:33.118 --> 00:31:37.759
Like that one thing just paid for most of what I'm giving you for the rest of your life, right?
561
00:31:37.779 --> 00:31:39.520
So you just have to run some quick math for them.
562
00:31:39.540 --> 00:31:40.080
Yeah.
563
00:31:40.460 --> 00:31:40.700
Mm-hmm.
564
00:31:40.880 --> 00:31:41.461
Yeah, that's cool.
565
00:31:41.741 --> 00:31:47.306
Now, in terms of incentivizing, like setting up a pay structure for this, I have a night.
566
00:31:47.526 --> 00:31:53.171
So I, the company used to work for we got paid piecework, which was something that's it's a pay for performance, right?
567
00:31:53.857 --> 00:31:59.420
Now in our company, I guess I've got, I've got one crew that's doing the garage or installing garage doors right now in the windows and doors.
568
00:31:59.580 --> 00:32:02.441
How, how do we, how do we set them up to incentivize them?
569
00:32:02.481 --> 00:32:09.664
Like, since there's different things and you know, we're not quite, I guess that would also break it up to more being more efficient too.
570
00:32:09.704 --> 00:32:09.865
Right.
571
00:32:10.045 --> 00:32:13.006
If we like in some incentivize them to work and find them to be efficient.
572
00:32:13.346 --> 00:32:14.507
Do you already do piece work?
573
00:32:14.727 --> 00:32:15.407
No, not right now.
574
00:32:15.647 --> 00:32:15.967
Oh, you don't.
575
00:32:15.987 --> 00:32:17.608
You used to work for, they paid us.
576
00:32:17.628 --> 00:32:21.470
I have an idea what it works, but it's just, we're not consistent enough and it just,
577
00:32:21.803 --> 00:32:22.543
It makes it a little hard.
578
00:32:22.724 --> 00:32:28.467
Yeah, like the end goal is like trying to tie in this product equals this number of budgeted hours.
579
00:32:28.908 --> 00:32:30.889
Like you're basically doing it already probably with pricing.
580
00:32:30.909 --> 00:32:34.511
It's like, hey, here's our product cost, and then here's how many hours it takes to install.
581
00:32:34.871 --> 00:32:38.174
And then they get a percentage of the labor revenue ultimately.
582
00:32:39.334 --> 00:32:46.479
So I think like Lynn coming in, like organizing things will be that they unlocked down the road being able to do something around piecework.
583
00:32:46.639 --> 00:32:54.167
And then what I would do, because the technicians have the ability to upsell, is I would be tying incentives to, okay, did they get the premium package?
584
00:32:54.347 --> 00:32:55.468
Did they get the add-on?
585
00:32:56.269 --> 00:32:57.670
I'd just be incentivizing them.
586
00:32:57.690 --> 00:32:58.151
It's like, great.
587
00:32:58.451 --> 00:33:02.635
If I have an extra 50% margin, I'm definitely happy to give 20% of that away to the team.
588
00:33:03.356 --> 00:33:08.661
And then all of a sudden, they have huge bonuses that they can get if they're making these upsells for you.
589
00:33:09.542 --> 00:33:10.302
Yeah, that's the next thing.
590
00:33:10.482 --> 00:33:16.085
A team currently, they're friendly, they're nice, but they're not the people kind of person.
591
00:33:16.525 --> 00:33:17.566
They're not salespeople, right?
592
00:33:17.586 --> 00:33:20.767
Like the more the customers leave them alone, the happier they are, right?
593
00:33:21.508 --> 00:33:28.811
So there's no, but it's, like I said, we've got a solid team now and the next hire that I'm going to do, it's going to be someone that's able to do the upsells and stuff like that.
594
00:33:28.831 --> 00:33:29.871
So that's solid.
595
00:33:31.786 --> 00:33:39.231
Now, I hear a lot across a lot of different industries, they're all talking, you know, if you can do 20 to 30 percent net, that's golden.
596
00:33:39.251 --> 00:33:41.612
Like, you know, everybody's living a high life at that point.
597
00:33:41.792 --> 00:33:50.638
You know, what's at the end of the day, do you just see what the market bears or do you have like a certain target on what you what you're happy with and just, you know, just just kill it?
598
00:33:50.758 --> 00:33:53.239
Well, it's a function of like what you said before.
599
00:33:53.259 --> 00:33:54.059
You're like, hey, it's 40%.
600
00:33:54.099 --> 00:33:56.900
We're making 40% net on this job, for example.
601
00:33:57.660 --> 00:34:02.061
There's nothing to say that you can't charge more just because you have 40% net on a job.
602
00:34:02.482 --> 00:34:04.482
Microsoft makes 95% margin on their stuff.
603
00:34:04.502 --> 00:34:06.303
They're not asking for forgiveness.
604
00:34:06.423 --> 00:34:07.843
They are still raising prices.
605
00:34:08.423 --> 00:34:10.584
So there's nothing wrong with making more money.
606
00:34:10.704 --> 00:34:16.606
And so I think the biggest thing is you could get there tomorrow just by raising your prices.
607
00:34:16.986 --> 00:34:20.087
I genuinely believe you could raise prices by 15%, and you'd probably be that 20%.
608
00:34:20.827 --> 00:34:44.669
camp pretty quickly so it's just a function of when you slow down growth and you're willing to take profits and actually maximize those by raising your prices to the point where you stop growing like you're still going to grow like a big chunk this year and so um i i believe that you raise price by 15 you hardly see a dip and close ratio and your profits do get to around that 20 margin spot um it just like easily you could do 20 tomorrow you just gotta raise prices
609
00:34:45.870 --> 00:34:46.150
Okay.
610
00:34:46.451 --> 00:34:46.771
All right.
611
00:34:47.832 --> 00:34:54.577
If you can get to that 25% marker, that's usually where you now have enough margin to be able to hire a general manager or like someone else to take a lot of the stuff off your plate.
612
00:34:54.597 --> 00:34:57.719
And that becomes, then you become, you can make it more passive, right?
613
00:34:57.979 --> 00:35:02.142
In terms of like, hey, now I got someone that's like actually incentivized on the bottom line.
614
00:35:02.383 --> 00:35:03.123
They're expensive.
615
00:35:03.463 --> 00:35:12.490
So maybe I only take 10% as distributions in the business, but it's running at 20, 25% net, but I'm giving a big chunk of that away to a general manager so they can run it while I'm gone.
616
00:35:12.510 --> 00:35:13.191
Yeah.
617
00:35:13.211 --> 00:35:13.371
Yeah.
618
00:35:13.731 --> 00:35:19.498
And that's kind of the goal to do that in the long run, not in the near future, but yeah, I guess we'll see what the future holds.
619
00:35:19.518 --> 00:35:30.112
But I mean, I think overall, I think we've come a long ways in the last couple of years, especially considering we redid everything last year, because we have, like, I hear of companies closing almost every month, you know,
620
00:35:30.612 --> 00:35:32.953
Companies are in a similar industry than us.
621
00:35:33.013 --> 00:35:34.174
They're closing their doors.
622
00:35:34.254 --> 00:35:38.716
And right now is actually perfect timing for us to hire because a lot of companies laid off their A players.
623
00:35:38.756 --> 00:35:41.878
And that's when we go in Indeed and we bring them in and stuff.
624
00:35:41.898 --> 00:35:43.919
So that's been working out really well.
625
00:35:44.679 --> 00:35:44.879
Okay.
626
00:35:44.919 --> 00:35:46.540
Well, that's all the questions I have.
627
00:35:46.560 --> 00:35:48.721
I guess at the end of the day, you've seen the website.
628
00:35:48.801 --> 00:35:50.622
Is there any other recommendations, anything you have for me?
629
00:35:50.722 --> 00:35:56.386
No, I think you're moving in the right direction since we last talked moving away from the dealers towards something that's much less price sensitive.
630
00:35:56.827 --> 00:36:02.291
And we don't have the blurry lines of like their dealers and they're kind of like our partners slash our competitors.
631
00:36:03.352 --> 00:36:04.713
So big fan of the website.
632
00:36:05.413 --> 00:36:08.636
I would probably cut down a lot on text on your homepage.
633
00:36:08.936 --> 00:36:10.077
And so if I look here –
634
00:36:11.818 --> 00:36:26.690
there like I would probably cut a lot of this text out um all I need to know is uh we do windows doors garage doors and on in Leamington Ontario that's like all I need to know so I would really reduce this amount of text um
635
00:36:26.950 --> 00:36:30.635
unless I see this up top here, which is your storefront, I don't know what your service area is.
636
00:36:30.735 --> 00:36:32.878
So I would really reduce the amount of text here.
637
00:36:33.399 --> 00:36:34.981
All we want them to do is click this button.
638
00:36:35.041 --> 00:36:36.984
So like, let's just like reduce the amount of text.
639
00:36:37.084 --> 00:36:39.648
All we need to know is doors, windows, garage doors.
640
00:36:40.168 --> 00:36:42.612
In this area, service area, click this link.
641
00:36:42.932 --> 00:36:43.333
Like that's it.
642
00:36:43.733 --> 00:37:03.747
um this is great this is really clean but if they want to get all this text they can get it down here but at the very top there i'm just trying to say okay these are the three things i do like this is it precision door i don't want to use it i just say doors windows and garage doors serving i'm guessing leanings in ontario like that's up here the button then gets clicked more so
643
00:37:04.067 --> 00:37:10.889
That'd be my only thing in terms of online, because if you're driving traffic to this site from, say, Google, we already know they need a door.
644
00:37:11.009 --> 00:37:12.350
We already know they need a window.
645
00:37:12.490 --> 00:37:13.830
We just need them to click this button.
646
00:37:14.070 --> 00:37:17.671
And so the likelihood of them to click that button is much higher with less text.
647
00:37:17.851 --> 00:37:19.992
I would also say, let's just walk this through.
648
00:37:20.292 --> 00:37:21.833
So, for example, they get to your page.
649
00:37:21.853 --> 00:37:24.453
They're kind of like, okay, all right, I'm in the right spot because I see this.
650
00:37:24.713 --> 00:37:24.994
Great.
651
00:37:25.254 --> 00:37:25.794
Oh, quote.
652
00:37:26.054 --> 00:37:26.334
Boom.
653
00:37:26.674 --> 00:37:27.215
Okay, great.
654
00:37:27.235 --> 00:37:28.455
Let's start with a great one.
655
00:37:28.515 --> 00:37:31.317
Have a project in mind to fill out the form below three.
656
00:37:31.557 --> 00:37:35.060
Okay, I think that is like a given I get a quote and I get the job done.
657
00:37:35.400 --> 00:37:37.341
And also I got to scroll all the way down here.
658
00:37:37.802 --> 00:37:41.264
I would love it to see I would love to see that this text all goes away.
659
00:37:41.684 --> 00:37:45.367
I say it says elevate your door with with doors windows and garage doors.
660
00:37:45.947 --> 00:37:49.828
Serving Langdon, Ontario since 2015, whatever it is.
661
00:37:50.169 --> 00:37:57.551
And then off the right-hand side here, I have the form condensed down to one-third of the screen that has all the information they need to put in.
662
00:37:57.931 --> 00:37:58.752
So they don't need to scroll.
663
00:37:58.772 --> 00:37:59.492
They don't need to click.
664
00:37:59.512 --> 00:38:00.932
They don't have to switch to a different URL.
665
00:38:01.312 --> 00:38:02.933
They just can submit their information right here.
666
00:38:03.213 --> 00:38:06.894
Because especially if you're driving from Google, they already have intent to buy.
667
00:38:06.914 --> 00:38:08.015
They already know what they want.
668
00:38:08.295 --> 00:38:09.255
They're just looking for a quote.
669
00:38:09.395 --> 00:38:14.657
And so if I can get it right here, you will double your leads versus them having to click.
670
00:38:14.777 --> 00:38:17.118
See all of this text, scroll, go down here.
671
00:38:17.158 --> 00:38:20.319
And then now there's like an entire page worth of a form.
672
00:38:20.419 --> 00:38:23.941
Shrink this down by 80% and make it where it's a third of the page.
673
00:38:24.561 --> 00:38:26.261
Okay, that's fair.
674
00:38:28.483 --> 00:38:37.389
And what we've also done is for every page, let's say for Windsor, for an example, we have a separate landing page for Windsor with all the information and stuff on there.
675
00:38:37.730 --> 00:38:38.250
So, yeah.
676
00:38:38.670 --> 00:38:43.134
Which is great because now when you're targeting that area, they'll get to the page and say serving Windsor.
677
00:38:43.314 --> 00:38:44.475
It's like, okay, this is for me.
678
00:38:44.635 --> 00:38:49.499
The only thing that you need them to know once they click on a Google ad is do they do my service and do they serve my area?
679
00:38:49.659 --> 00:38:50.459
That's all I need.
680
00:38:50.600 --> 00:38:53.822
And if I can't quickly check those box, there is a drop off happening.
681
00:38:54.002 --> 00:38:54.142
Mm-hmm.
682
00:38:54.162 --> 00:38:54.262
Yeah.
683
00:38:54.623 --> 00:38:54.823
Yeah.
684
00:38:55.363 --> 00:39:05.516
Now, when you run Google, like Facebook ads and stuff, let's say with a promotion offering 20, 30% off Windows and Doors, do you think that it's important to have that same promotion on your website?
685
00:39:05.897 --> 00:39:12.826
Or is it good enough if we just run the ads on Facebook and Instagram and they just see it right there and they can just go and request a code from there?
686
00:39:13.706 --> 00:39:15.787
It just depends on what the offer is.
687
00:39:16.867 --> 00:39:19.708
I would prefer that it cross the whole system.
688
00:39:19.928 --> 00:39:22.108
Like your whole business has a certain offer at this time of year.
689
00:39:22.608 --> 00:39:27.650
Any traffic that's coming through regardless of walking in the door, Facebook, and no matter what, they're getting this offer.
690
00:39:28.410 --> 00:39:29.950
That's the easiest to track.
691
00:39:30.030 --> 00:39:36.332
And I don't think you're of size yet where it's like, okay, we are going to make an offer for Facebook, we're gonna make an offer for Google, we're gonna make an offer for people who walk in the door.
692
00:39:36.612 --> 00:39:37.912
Like that's just gonna get confusing.
693
00:39:38.112 --> 00:39:40.073
So I would probably just be like, make it much more time.
694
00:39:40.433 --> 00:39:41.513
Like, hey, for this weekend,
695
00:39:41.953 --> 00:39:46.066
the Memorial Day weekend or whatever, you know, Canada Day, boom, this is the offer.
696
00:39:46.327 --> 00:39:46.548
Mm-hmm.
697
00:39:47.347 --> 00:39:47.587
Okay.
698
00:39:48.028 --> 00:39:48.228
All right.
699
00:39:48.448 --> 00:39:48.928
That's cool.
700
00:39:49.368 --> 00:39:50.769
Yeah, that's good.
701
00:39:50.930 --> 00:40:01.837
So I think some of the takeaways I'd say right off the rip is definitely some changes to the website could massively improve your conversion rate in terms of reducing the text, getting the form on the first page, making it very simple.
702
00:40:01.897 --> 00:40:03.358
These are what we install.
703
00:40:03.538 --> 00:40:04.459
This is the area we serve.
704
00:40:04.839 --> 00:40:09.002
And then another takeaway I think is raise your prices immediately.
705
00:40:09.022 --> 00:40:09.803
15% easily.
706
00:40:10.683 --> 00:40:14.326
First, the only thing I would ask you to do is check with Lynn and get an actual close rate number.
707
00:40:14.586 --> 00:40:16.047
and then track that over the next few months.
708
00:40:16.348 --> 00:40:22.614
So like, okay, our close ratio last month, our close ratio year to date, if it's 65%, 70%, raise prices immediately.
709
00:40:22.794 --> 00:40:25.456
Indiscriminately raise prices, you'll not affect the business.
710
00:40:26.678 --> 00:40:33.824
And then if it's like 40%, because we don't know, then maybe we pause the brakes a little bit, because we don't want to cut that down to 20%.
711
00:40:34.425 --> 00:40:39.231
But if you're pretty competent in high 60s, I'd be raising your prices.
712
00:40:39.892 --> 00:40:43.736
And you would never get concerned that by raising prices too much, it was going to go down the drain.
713
00:40:44.017 --> 00:40:47.741
I guess that's probably kind of, that's why it's nice to keep track of leads and stuff.
714
00:40:47.781 --> 00:40:47.981
Right.
715
00:40:48.021 --> 00:40:51.045
And just, I guess your closing ratio and know where it's at and adjust accordingly.
716
00:40:51.205 --> 00:40:54.326
Yeah, I just don't see you in the commodity business anymore because you're not selling to dealers.
717
00:40:54.346 --> 00:40:55.246
You're selling to customers.
718
00:40:55.306 --> 00:40:58.386
And so the goal is to sell on value and not price.
719
00:40:58.907 --> 00:41:04.388
And so when 70% of people are accepting the bid, they're saying that value is far above price.
720
00:41:04.688 --> 00:41:08.929
And so by raising your price is 15%, you might see a 5 to 10% drop in close rate.
721
00:41:09.229 --> 00:41:12.709
And if it dropped 20%, which I don't think it will because you're not a commodity business anymore.
722
00:41:13.109 --> 00:41:15.230
But if it did, you always just change it back.
723
00:41:15.290 --> 00:41:15.950
Yeah, well, that's cool.
724
00:41:16.824 --> 00:41:17.686
Okay, that's awesome.
725
00:41:17.786 --> 00:41:18.828
No, that's good.
726
00:41:18.848 --> 00:41:22.255
We'll definitely get this all implemented and we will see what happens and we will go from there.
727
00:41:22.395 --> 00:41:22.816
You're the man.
728
00:41:22.896 --> 00:41:23.898
I'll be watching from afar.
729
00:41:24.019 --> 00:41:24.520
Take care, brother.
730
00:41:24.540 --> 00:41:24.920
Sounds good.
731
00:41:24.940 --> 00:41:25.542
All right, thank you.