WEBVTT
1
00:00:00.031 --> 00:00:02.792
Regardless of what home service business you're in, you can use these.
2
00:00:03.092 --> 00:00:04.033
So let's open it up.
3
00:00:04.593 --> 00:00:05.233
So cure.
4
00:00:05.253 --> 00:00:08.455
So there's five cures of the off season that we go through in the book.
5
00:00:09.035 --> 00:00:11.796
And cure number two is selling more and better.
6
00:00:12.137 --> 00:00:15.638
More being getting advertising and better, better jobs.
7
00:00:15.878 --> 00:00:19.040
We're going to increase the amount of money we get from the customer.
8
00:00:19.993 --> 00:00:23.055
So what I want to go over there are, all right, here we go.
9
00:00:23.375 --> 00:00:26.797
There are 11 options or upgrades to increase customer lifetime value.
10
00:00:27.458 --> 00:00:27.798
All right.
11
00:00:27.898 --> 00:00:32.241
The first way to boost customer lifetime value is to give discounts for increasing frequency.
12
00:00:32.841 --> 00:00:33.221
All right.
13
00:00:33.862 --> 00:00:34.482
I'm just skipping.
14
00:00:34.802 --> 00:00:36.323
You can see here how I built this.
15
00:00:36.543 --> 00:00:39.825
You can skip from the highlighted portions and just read the main parts.
16
00:00:40.305 --> 00:00:45.449
So the first way is to boost customer lifetime value is to give discounts for increasing frequency.
17
00:00:46.149 --> 00:00:54.536
All right, the next one, the second way, we went over this earlier in today's live stream, the second way is to increase lifetime value through upgrades is to sell supplements, okay?
18
00:00:55.197 --> 00:00:57.919
You might say, I don't sell health supplements, I sell home services.
19
00:00:58.760 --> 00:01:02.843
In this context, supplements are products that customers must use on a regular basis.
20
00:01:03.003 --> 00:01:04.425
They get used up or dissolve.
21
00:01:05.025 --> 00:01:08.828
For example, treatments for lawns, odor enhancers for carpets, or chemicals for pools.
22
00:01:09.449 --> 00:01:13.873
These small add-ons upgrade the service, experience, and increase customer value.
23
00:01:14.513 --> 00:01:18.995
The third approach is to increase the quality of the products that you use.
24
00:01:19.015 --> 00:01:19.695
All right.
25
00:01:19.715 --> 00:01:22.976
So this could be like the type of mulch could be more nicer.
26
00:01:22.996 --> 00:01:26.678
The type of paint that you use, the type of chemicals that you use.
27
00:01:26.738 --> 00:01:28.859
These are all things that can be better, higher quality.
28
00:01:29.439 --> 00:01:31.600
Someone put put it on podcast app, please.
29
00:01:31.680 --> 00:01:33.020
Yes, it is on the podcast.
30
00:01:33.720 --> 00:01:36.161
The book is completely free on the podcast.
31
00:01:36.181 --> 00:01:40.523
If you want to listen to the audio version, I'm going to turn off comments on the main page because I get distracted.
32
00:01:41.529 --> 00:01:44.932
The fourth strategy is to sell tiered packages.
33
00:01:44.952 --> 00:01:46.213
So good, better, best model.
34
00:01:46.233 --> 00:01:48.256
The fifth strategy is to bundle services.
35
00:01:48.656 --> 00:01:51.879
Each of these I go over in depth in the book.
36
00:01:52.833 --> 00:01:55.934
The sixth approach is to sell optional service on every existing quote.
37
00:01:56.294 --> 00:01:59.455
The seventh strategy is to set up a bonus program for your technicians.
38
00:01:59.475 --> 00:02:01.595
So they are actually incentivized to upsell.
39
00:02:02.295 --> 00:02:04.596
Also consider selling follow-up services.
40
00:02:04.656 --> 00:02:10.337
A lot of us think that follow, like going back to a customer or callback is a negative thing because something bad happened.
41
00:02:10.697 --> 00:02:15.898
Why not package a follow-up visit into the initial estimate for the customer?
42
00:02:16.699 --> 00:02:18.159
So that way it leads to less callbacks.
43
00:02:18.199 --> 00:02:20.800
And when customers are unhappy about something, they don't know you're coming back.
44
00:02:20.900 --> 00:02:22.400
So it's less high risk for them.
45
00:02:23.100 --> 00:02:23.561
What else we got?
46
00:02:24.261 --> 00:02:28.083
A selling limited time or lifetime warranties is another powerful approach.
47
00:02:28.123 --> 00:02:31.145
The 10th strategy is to sell personalized recommendations.
48
00:02:31.806 --> 00:02:35.128
This could be like a property inspection, a 21 point property inspection.
49
00:02:35.908 --> 00:02:38.210
Finally, you can sell premium access to support.
50
00:02:38.610 --> 00:02:46.075
Things like get 24 seven emergency, text concierge service or a fee, receive services from specific technicians.
51
00:02:46.415 --> 00:02:47.836
That's premium access to support.
52
00:02:47.856 --> 00:02:50.738
These are all ways to be able to upsell your customer.
53
00:02:50.758 --> 00:02:50.958
Okay.
54
00:02:51.231 --> 00:02:51.511
All right.
55
00:02:52.212 --> 00:02:56.574
Now I have a couple notes on things I want to discuss when it comes to upsells.
56
00:02:57.335 --> 00:03:03.938
So inside the book on page 62, there are three different ways to grow your business.
57
00:03:04.459 --> 00:03:04.719
All right.
58
00:03:04.739 --> 00:03:07.440
Let's go to page 62 inside of the book.
59
00:03:07.961 --> 00:03:10.302
And this is what I call aura.
60
00:03:10.662 --> 00:03:11.823
See a little graphic here.
61
00:03:13.284 --> 00:03:13.464
Boom.
62
00:03:14.264 --> 00:03:19.785
Aura is O-R-A, stands for onboard, retain, or ascend.
63
00:03:20.625 --> 00:03:23.686
So onboarding is getting new customers.
64
00:03:23.706 --> 00:03:25.947
And this is the one most of us kind of know about.
65
00:03:26.527 --> 00:03:31.068
In order to be able to grow the business, I will get more customers.
66
00:03:31.128 --> 00:03:34.048
I will onboard more customers in order to grow the business.
67
00:03:34.068 --> 00:03:35.309
Yes, you can absolutely do that.
68
00:03:35.689 --> 00:03:37.889
That's the first step of growing your business.
69
00:03:37.949 --> 00:03:41.730
The first way to be able to scale is onboard more customers.
70
00:03:42.270 --> 00:03:44.632
The second way is to retain more customers.
71
00:03:44.852 --> 00:03:47.634
You're like, well, how does retention actually help me grow the business?
72
00:03:47.874 --> 00:03:51.656
Well, by retaining more customers, it means I can sell them more services in the future.
73
00:03:52.037 --> 00:03:56.600
And it also means I don't have to take new customers to replace customers that are churning.
74
00:03:57.240 --> 00:03:57.880
That's retention.
75
00:03:58.481 --> 00:04:01.383
The third way to grow your business is ascension or ascend.
76
00:04:01.503 --> 00:04:07.607
So again, back to our onboard, retain and ascend little graph situation inside the book.
77
00:04:08.928 --> 00:04:10.089
I truly believe that,
78
00:04:10.849 --> 00:04:15.791
The vast majority of our time in growing our business is spent on onboarding, getting more new customers.
79
00:04:16.611 --> 00:04:18.632
And that's why I named this chapter More and Better.
80
00:04:19.212 --> 00:04:26.314
Because instead of focusing on getting more new customers and onboarding more, we spend so much time on that.
81
00:04:26.554 --> 00:04:27.955
And it's good to the extent that.
82
00:04:28.615 --> 00:04:30.597
But we spend very little time on retention.
83
00:04:31.158 --> 00:04:32.479
How do we actually reduce churn?
84
00:04:32.539 --> 00:04:34.121
How do we improve the quality of our service?
85
00:04:34.501 --> 00:04:39.547
How do we have checklists and trainings that our crew is efficient and does a great job every single time?
86
00:04:40.328 --> 00:04:41.048
We answer the phone.
87
00:04:41.289 --> 00:04:42.470
We have great customer service.
88
00:04:42.730 --> 00:04:43.391
That's retention.
89
00:04:43.972 --> 00:04:50.398
But then Ascension, I think that the vast majority of home service business owners spend almost no time thinking about Ascension
90
00:04:51.059 --> 00:04:54.261
How do I take a customer and get them to pay me more?
91
00:04:54.881 --> 00:05:01.766
Ultimately, what an upsell is doing is saying, hey, if you're buying this, if you're buying this, like, why don't we go ahead and get you more?
92
00:05:02.266 --> 00:05:03.847
Why don't we get you more of what you're already getting?
93
00:05:04.547 --> 00:05:12.312
And so an upsell in a different retail sense would be like, hey, if you're buying a 24-inch TV, why not buy a 42-inch TV?
94
00:05:13.533 --> 00:05:14.635
Like it's so much bigger and better.
95
00:05:14.655 --> 00:05:16.277
And here's all the reasons why that's an upsell.
96
00:05:16.297 --> 00:05:19.421
I'm taking something you're already buying or you already have.
97
00:05:19.781 --> 00:05:23.506
And I'm selling you more of that thing, a better quality version of it.
98
00:05:24.087 --> 00:05:24.687
That's upsell.
99
00:05:25.088 --> 00:05:30.555
We'll talk about cross sells down the road, which cross sells is I'm selling something that goes along with your purchase.
100
00:05:30.575 --> 00:05:32.097
So for example, I'm selling something that goes along with your purchase.
101
00:05:32.217 --> 00:05:48.110
If I am doing, if I'm selling that flat screen and I'm also bundling it with something like a PS station, a PlayStation or a controller or video games, those would be cross sells and different things with the TV.
102
00:05:48.130 --> 00:05:48.331
Okay.
103
00:05:48.931 --> 00:05:58.957
But if I'm trying to upsell, I'm taking the person from a 24-inch TV to a 42-inch TV, and I might even be selling a warranty or some sort of warranty around the screen itself.
104
00:05:59.177 --> 00:06:01.739
That would be a better version of the product that they're buying.
105
00:06:02.399 --> 00:06:05.281
And I truly believe we as home service business owners are going to be a better version of the product
106
00:06:05.421 --> 00:06:16.530
gets so wrapped up in the next shiny customer and getting more customers that we spend very little time on retention and almost no time whatsoever on Ascension.
107
00:06:16.970 --> 00:06:19.232
We are in love with onboarding new customers.
108
00:06:19.921 --> 00:06:23.805
And so again, upselling is a better version of what you are already buying.
109
00:06:24.185 --> 00:06:27.168
Cross-selling is, hey, you might also like this.
110
00:06:27.629 --> 00:06:29.170
Hey, I know you're buying that 24-inch TV.
111
00:06:29.351 --> 00:06:32.794
You might also like this PlayStation and these video games.
112
00:06:33.355 --> 00:06:35.697
So upsells, cross-sells.
113
00:06:36.940 --> 00:06:40.443
When it comes to like trucks, we get upsold all the time.
114
00:06:40.503 --> 00:06:45.727
When you go to Ford, they have the XL version, the XLT version, the King Ranch, the Lariat, the Raptor.
115
00:06:46.027 --> 00:06:48.008
These are all ways to get you to spend more money.
116
00:06:48.689 --> 00:06:57.455
And immediately a lot of us think that, oh, that's super salesy and it's going to lead to customers turning me away because they are being upsold and people don't like that.
117
00:06:58.116 --> 00:07:00.558
Look, the biggest fans of Ford.
118
00:07:01.298 --> 00:07:03.059
do not own the Excel version.
119
00:07:03.759 --> 00:07:06.961
They spend more money with the business and get a better product.
120
00:07:07.501 --> 00:07:18.946
And so if you want to reduce churn, if you want to have better customers, if you want to have people that are your biggest fans, you solve more of their problems and you upsell them into more of your services and you get them to pay you more money.
121
00:07:19.586 --> 00:07:20.727
Your best paying customers
122
00:07:21.587 --> 00:07:22.527
are your best customers.
123
00:07:23.168 --> 00:07:26.489
Your lowest paying customers are the ones that cause you all the pressure and pain.
124
00:07:27.329 --> 00:07:36.912
And so the same way that Ford is gonna try to get people to upsell into higher versions of the truck, you want to upsell your existing customers and do better versions of the services that you're selling them.
125
00:07:37.832 --> 00:07:39.253
And this can be done in so many different ways.
126
00:07:39.273 --> 00:07:42.936
We just mentioned 11 different ways that you can do upsells inside your business.
127
00:07:43.077 --> 00:07:43.957
Highly recommend this.
128
00:07:44.077 --> 00:07:46.940
Do not make your upsell messages super salesy.
129
00:07:47.220 --> 00:07:50.783
Like, dear customer, oh, we have noticed on your property, blah, blah, blah.
130
00:07:50.803 --> 00:07:54.986
And I'm like, hey, hey, hey, Bob, the crew's at your property, noticed the bushes were overgrown.
131
00:07:55.006 --> 00:07:55.907
Do you want an estimate?
132
00:07:55.947 --> 00:07:56.628
I can get it to you tomorrow.
133
00:07:57.080 --> 00:07:58.300
Make it really, really simple.
134
00:07:58.901 --> 00:08:00.561
We don't include pictures in our emails.
135
00:08:00.841 --> 00:08:02.122
We don't include links in those.
136
00:08:02.362 --> 00:08:04.762
We don't say, signed off the Augusta Lawn Care team.
137
00:08:04.782 --> 00:08:05.763
We just leave it.
138
00:08:06.163 --> 00:08:07.243
They know where it's coming from.
139
00:08:07.263 --> 00:08:10.264
Make it really, really personalized, and they will respond at a higher rate.
140
00:08:10.584 --> 00:08:13.005
The stance on upselling is what I'm looking for.
141
00:08:13.885 --> 00:08:18.107
Is every aspect of the business geared in a way to be able to sell the customer more stuff?
142
00:08:18.247 --> 00:08:22.108
If not, we are constantly going to spend money on onboarding new customers,
143
00:08:22.808 --> 00:08:28.955
We're going to constantly spend more and more money on onboarding more customers, and we're never going to be able to turn off the marketing funnel.
144
00:08:29.416 --> 00:08:32.239
We're never going to be able to start spending money on every single lead.
145
00:08:32.580 --> 00:08:37.485
You start making money in home services when leads start coming to you without even spending money on every single one.
146
00:08:38.126 --> 00:08:42.811
And so the number one way for me to do this is upsell and cross sell services to my existing customers.
147
00:08:43.411 --> 00:08:53.682
And my job, my, my, my ultimate goal is that I want to also turn every one-time job into a recurring revenue job, downsell big one-time jobs and do reoccurring services.
148
00:08:53.882 --> 00:08:58.126
If someone can't pay for a $30,000 roof replacement, suggest that.
149
00:08:58.747 --> 00:09:01.409
regular repair visits for leaks instead.
150
00:09:01.849 --> 00:09:06.092
This is re reoccurring service is cheaper than the one-time job.
151
00:09:06.772 --> 00:09:08.013
You could downsell further.
152
00:09:08.033 --> 00:09:09.914
So like, like, man, people are price sensitive.
153
00:09:09.954 --> 00:09:10.134
Great.
154
00:09:10.154 --> 00:09:13.837
This isn't the time to downsell instead of having a $30,000 roof replacement.
155
00:09:13.857 --> 00:09:14.637
I'm just like, okay, great.
156
00:09:14.877 --> 00:09:17.739
We're going to be coming and we'll do roof roof repairs.
157
00:09:18.219 --> 00:09:19.020
That's reoccurring.
158
00:09:19.240 --> 00:09:21.822
There's no schedule for it, but when there's a leak, you're going to come fix it.
159
00:09:22.382 --> 00:09:25.405
you could downsell further by offering a cheaper roof checkup.
160
00:09:25.945 --> 00:09:29.188
This recurring maintenance would prevent leaks before they cause damage.
161
00:09:29.788 --> 00:09:33.692
These monthly or quarterly inspections can help keep their roof in good shape.
162
00:09:34.713 --> 00:09:45.997
So there are just so much opportunity to be able to take a one-time job and downsell it into a reoccurring job, like a repair usually.
163
00:09:46.438 --> 00:09:53.220
So usually I think about installs as one-time jobs, repairs as reoccurring because when there's something broken, I have to fix it.
164
00:09:53.680 --> 00:10:00.683
And then maintenance as recurring, which means it happens on a weekly, monthly, biweekly, et cetera basis.
165
00:10:01.333 --> 00:10:06.936
And the reason this is so important, I keep pulling up the book, but this is what we talk about in the book.
166
00:10:07.697 --> 00:10:17.663
The reason it's so important, especially during times of economic recession, is recurring revenue is much more stable during economic turmoil.
167
00:10:18.744 --> 00:10:25.368
And people really noticed this back in 2022 when all of a sudden interest rates spiked up because all of a sudden massive projects just...
168
00:10:26.008 --> 00:10:26.728
was stalled out.
169
00:10:27.048 --> 00:10:34.630
The amount of people that were actually going forward with 50, 60, $70,000 jobs really slowed down when interest rates spiked up.
170
00:10:34.990 --> 00:10:38.810
But from a recurring perspective, in terms of maintenance, everything just stayed the same.
171
00:10:39.290 --> 00:10:43.091
Now, when it came back to, here it is, 877.
172
00:10:43.531 --> 00:10:49.072
During the 2007, 2009 financial crisis, new vehicle sales dropped by 42%.
173
00:10:49.792 --> 00:10:51.472
I think of that as a one-time big purchase.
174
00:10:51.492 --> 00:10:53.813
Like it's a one-time big install kind of thing.
175
00:10:54.593 --> 00:11:00.896
Meanwhile, the aftermarket sector repairs and maintenance experience only a 1% decline.
176
00:11:01.376 --> 00:11:08.159
Again, I think of repairs as reoccurring and maintenance as recurring revenue.
177
00:11:08.719 --> 00:11:13.501
During tough times, people delay buying new cars, but they still take care of their current vehicles.
178
00:11:13.921 --> 00:11:20.584
This requires recurring, sorry, this requires reoccurring repairs and recurring maintenance.
179
00:11:21.024 --> 00:11:22.224
Brake pads need to be swapped.
180
00:11:22.464 --> 00:11:23.725
Oil changes need to be done.
181
00:11:24.365 --> 00:11:32.017
Another reason to focus on recurring revenue, recurring revenue doesn't depend on having an exceptional salesperson present at all times.
182
00:11:32.297 --> 00:11:36.363
There are so many reasons to try to get someone into a recurring service.
183
00:11:36.644 --> 00:11:38.847
So the question is, how do I upsell them into that?
184
00:11:39.488 --> 00:11:41.511
And use the 11th strategy at the very beginning.
185
00:11:41.671 --> 00:11:43.153
You're going to create the packages.
186
00:11:43.173 --> 00:11:44.114
You're going to create warranties.
187
00:11:44.134 --> 00:11:44.975
You're going to create guarantees.
188
00:11:44.995 --> 00:11:46.538
You're going to create tiered levels of service.
189
00:11:46.558 --> 00:11:49.822
You're going to have a good, better, and best model and package that you sell people.
190
00:11:50.122 --> 00:11:55.329
And a great time to do that is once the job is done, especially if you do one-time big projects.
191
00:11:56.070 --> 00:11:58.833
My goal is to upsell them into a recurring maintenance package.
192
00:11:59.133 --> 00:12:04.858
My goal is to upsell them into a warranty that I will come back and fix anything in the future.
193
00:12:05.378 --> 00:12:09.602
I want to upsell them on the initial estimate that, Hey, they spent an extra $5,000.
194
00:12:09.902 --> 00:12:12.084
I will guarantee this project for the next 15 years.
195
00:12:12.845 --> 00:12:15.788
And I'm simply, yeah, you're like, well, what happens if it breaks?
196
00:12:15.808 --> 00:12:15.928
Yeah.
197
00:12:16.611 --> 00:12:17.612
That's what insurance is.
198
00:12:17.972 --> 00:12:23.075
And that's why insurance is such a great business model and has been around for many, many years, is because you're selling thin air.
199
00:12:23.095 --> 00:12:25.076
You're selling reassurance to customers.
200
00:12:25.416 --> 00:12:38.383
And when you can get away from being a commodity service in your home service industry, where you're just selling like everyone else is, and instead you're selling peace of mind, you're selling insurance, you're selling thin air, and that is the work that we do, we will stand behind.
201
00:12:38.423 --> 00:12:45.447
When you sell that, and you're able to mark up for that and upsell customers in that higher level of value, that's when you'll make money.
202
00:12:46.067 --> 00:12:47.288
That's when you'll be profitable.
203
00:12:47.768 --> 00:12:55.852
Instead of always thinking about price and we got a discount, how can you actually increase the price and upsell customers by taking away all the things they're afraid of?
204
00:12:55.932 --> 00:12:58.053
They're afraid of you doing a lousy job.
205
00:12:58.393 --> 00:12:58.874
Okay, great.
206
00:12:59.594 --> 00:13:03.196
I'm going to charge them more and give them a guarantee or a warranty.
207
00:13:03.216 --> 00:13:04.717
And I'm going to bake that into the price.
208
00:13:05.037 --> 00:13:08.999
And so for example, planting trees, a lot of times people don't water their plants.
209
00:13:09.439 --> 00:13:10.120
So what am I going to do?
210
00:13:10.420 --> 00:13:11.362
I'm going to upsell them.
211
00:13:11.482 --> 00:13:16.568
Hey, look, I will guarantee these plants as long as we install the irrigation for them.
212
00:13:16.969 --> 00:13:17.589
What did I just do?
213
00:13:17.950 --> 00:13:23.357
I just upsold them from a planting job into a irrigation job into a warranty.
214
00:13:23.937 --> 00:13:29.024
Oh, and by the way, we will replace them at no cost as long as we do maintenance on them on a monthly basis.
215
00:13:29.504 --> 00:13:35.071
This is how you upsell a one-time job and do recurring revenue over and over and over again.
1
00:00:00.031 --> 00:00:02.792
Regardless of what home service business you're in, you can use these.
2
00:00:03.092 --> 00:00:04.033
So let's open it up.
3
00:00:04.593 --> 00:00:05.233
So cure.
4
00:00:05.253 --> 00:00:08.455
So there's five cures of the off season that we go through in the book.
5
00:00:09.035 --> 00:00:11.796
And cure number two is selling more and better.
6
00:00:12.137 --> 00:00:15.638
More being getting advertising and better, better jobs.
7
00:00:15.878 --> 00:00:19.040
We're going to increase the amount of money we get from the customer.
8
00:00:19.993 --> 00:00:23.055
So what I want to go over there are, all right, here we go.
9
00:00:23.375 --> 00:00:26.797
There are 11 options or upgrades to increase customer lifetime value.
10
00:00:27.458 --> 00:00:27.798
All right.
11
00:00:27.898 --> 00:00:32.241
The first way to boost customer lifetime value is to give discounts for increasing frequency.
12
00:00:32.841 --> 00:00:33.221
All right.
13
00:00:33.862 --> 00:00:34.482
I'm just skipping.
14
00:00:34.802 --> 00:00:36.323
You can see here how I built this.
15
00:00:36.543 --> 00:00:39.825
You can skip from the highlighted portions and just read the main parts.
16
00:00:40.305 --> 00:00:45.449
So the first way is to boost customer lifetime value is to give discounts for increasing frequency.
17
00:00:46.149 --> 00:00:54.536
All right, the next one, the second way, we went over this earlier in today's live stream, the second way is to increase lifetime value through upgrades is to sell supplements, okay?
18
00:00:55.197 --> 00:00:57.919
You might say, I don't sell health supplements, I sell home services.
19
00:00:58.760 --> 00:01:02.843
In this context, supplements are products that customers must use on a regular basis.
20
00:01:03.003 --> 00:01:04.425
They get used up or dissolve.
21
00:01:05.025 --> 00:01:08.828
For example, treatments for lawns, odor enhancers for carpets, or chemicals for pools.
22
00:01:09.449 --> 00:01:13.873
These small add-ons upgrade the service, experience, and increase customer value.
23
00:01:14.513 --> 00:01:18.995
The third approach is to increase the quality of the products that you use.
24
00:01:19.015 --> 00:01:19.695
All right.
25
00:01:19.715 --> 00:01:22.976
So this could be like the type of mulch could be more nicer.
26
00:01:22.996 --> 00:01:26.678
The type of paint that you use, the type of chemicals that you use.
27
00:01:26.738 --> 00:01:28.859
These are all things that can be better, higher quality.
28
00:01:29.439 --> 00:01:31.600
Someone put put it on podcast app, please.
29
00:01:31.680 --> 00:01:33.020
Yes, it is on the podcast.
30
00:01:33.720 --> 00:01:36.161
The book is completely free on the podcast.
31
00:01:36.181 --> 00:01:40.523
If you want to listen to the audio version, I'm going to turn off comments on the main page because I get distracted.
32
00:01:41.529 --> 00:01:44.932
The fourth strategy is to sell tiered packages.
33
00:01:44.952 --> 00:01:46.213
So good, better, best model.
34
00:01:46.233 --> 00:01:48.256
The fifth strategy is to bundle services.
35
00:01:48.656 --> 00:01:51.879
Each of these I go over in depth in the book.
36
00:01:52.833 --> 00:01:55.934
The sixth approach is to sell optional service on every existing quote.
37
00:01:56.294 --> 00:01:59.455
The seventh strategy is to set up a bonus program for your technicians.
38
00:01:59.475 --> 00:02:01.595
So they are actually incentivized to upsell.
39
00:02:02.295 --> 00:02:04.596
Also consider selling follow-up services.
40
00:02:04.656 --> 00:02:10.337
A lot of us think that follow, like going back to a customer or callback is a negative thing because something bad happened.
41
00:02:10.697 --> 00:02:15.898
Why not package a follow-up visit into the initial estimate for the customer?
42
00:02:16.699 --> 00:02:18.159
So that way it leads to less callbacks.
43
00:02:18.199 --> 00:02:20.800
And when customers are unhappy about something, they don't know you're coming back.
44
00:02:20.900 --> 00:02:22.400
So it's less high risk for them.
45
00:02:23.100 --> 00:02:23.561
What else we got?
46
00:02:24.261 --> 00:02:28.083
A selling limited time or lifetime warranties is another powerful approach.
47
00:02:28.123 --> 00:02:31.145
The 10th strategy is to sell personalized recommendations.
48
00:02:31.806 --> 00:02:35.128
This could be like a property inspection, a 21 point property inspection.
49
00:02:35.908 --> 00:02:38.210
Finally, you can sell premium access to support.
50
00:02:38.610 --> 00:02:46.075
Things like get 24 seven emergency, text concierge service or a fee, receive services from specific technicians.
51
00:02:46.415 --> 00:02:47.836
That's premium access to support.
52
00:02:47.856 --> 00:02:50.738
These are all ways to be able to upsell your customer.
53
00:02:50.758 --> 00:02:50.958
Okay.
54
00:02:51.231 --> 00:02:51.511
All right.
55
00:02:52.212 --> 00:02:56.574
Now I have a couple notes on things I want to discuss when it comes to upsells.
56
00:02:57.335 --> 00:03:03.938
So inside the book on page 62, there are three different ways to grow your business.
57
00:03:04.459 --> 00:03:04.719
All right.
58
00:03:04.739 --> 00:03:07.440
Let's go to page 62 inside of the book.
59
00:03:07.961 --> 00:03:10.302
And this is what I call aura.
60
00:03:10.662 --> 00:03:11.823
See a little graphic here.
61
00:03:13.284 --> 00:03:13.464
Boom.
62
00:03:14.264 --> 00:03:19.785
Aura is O-R-A, stands for onboard, retain, or ascend.
63
00:03:20.625 --> 00:03:23.686
So onboarding is getting new customers.
64
00:03:23.706 --> 00:03:25.947
And this is the one most of us kind of know about.
65
00:03:26.527 --> 00:03:31.068
In order to be able to grow the business, I will get more customers.
66
00:03:31.128 --> 00:03:34.048
I will onboard more customers in order to grow the business.
67
00:03:34.068 --> 00:03:35.309
Yes, you can absolutely do that.
68
00:03:35.689 --> 00:03:37.889
That's the first step of growing your business.
69
00:03:37.949 --> 00:03:41.730
The first way to be able to scale is onboard more customers.
70
00:03:42.270 --> 00:03:44.632
The second way is to retain more customers.
71
00:03:44.852 --> 00:03:47.634
You're like, well, how does retention actually help me grow the business?
72
00:03:47.874 --> 00:03:51.656
Well, by retaining more customers, it means I can sell them more services in the future.
73
00:03:52.037 --> 00:03:56.600
And it also means I don't have to take new customers to replace customers that are churning.
74
00:03:57.240 --> 00:03:57.880
That's retention.
75
00:03:58.481 --> 00:04:01.383
The third way to grow your business is ascension or ascend.
76
00:04:01.503 --> 00:04:07.607
So again, back to our onboard, retain and ascend little graph situation inside the book.
77
00:04:08.928 --> 00:04:10.089
I truly believe that,
78
00:04:10.849 --> 00:04:15.791
The vast majority of our time in growing our business is spent on onboarding, getting more new customers.
79
00:04:16.611 --> 00:04:18.632
And that's why I named this chapter More and Better.
80
00:04:19.212 --> 00:04:26.314
Because instead of focusing on getting more new customers and onboarding more, we spend so much time on that.
81
00:04:26.554 --> 00:04:27.955
And it's good to the extent that.
82
00:04:28.615 --> 00:04:30.597
But we spend very little time on retention.
83
00:04:31.158 --> 00:04:32.479
How do we actually reduce churn?
84
00:04:32.539 --> 00:04:34.121
How do we improve the quality of our service?
85
00:04:34.501 --> 00:04:39.547
How do we have checklists and trainings that our crew is efficient and does a great job every single time?
86
00:04:40.328 --> 00:04:41.048
We answer the phone.
87
00:04:41.289 --> 00:04:42.470
We have great customer service.
88
00:04:42.730 --> 00:04:43.391
That's retention.
89
00:04:43.972 --> 00:04:50.398
But then Ascension, I think that the vast majority of home service business owners spend almost no time thinking about Ascension
90
00:04:51.059 --> 00:04:54.261
How do I take a customer and get them to pay me more?
91
00:04:54.881 --> 00:05:01.766
Ultimately, what an upsell is doing is saying, hey, if you're buying this, if you're buying this, like, why don't we go ahead and get you more?
92
00:05:02.266 --> 00:05:03.847
Why don't we get you more of what you're already getting?
93
00:05:04.547 --> 00:05:12.312
And so an upsell in a different retail sense would be like, hey, if you're buying a 24-inch TV, why not buy a 42-inch TV?
94
00:05:13.533 --> 00:05:14.635
Like it's so much bigger and better.
95
00:05:14.655 --> 00:05:16.277
And here's all the reasons why that's an upsell.
96
00:05:16.297 --> 00:05:19.421
I'm taking something you're already buying or you already have.
97
00:05:19.781 --> 00:05:23.506
And I'm selling you more of that thing, a better quality version of it.
98
00:05:24.087 --> 00:05:24.687
That's upsell.
99
00:05:25.088 --> 00:05:30.555
We'll talk about cross sells down the road, which cross sells is I'm selling something that goes along with your purchase.
100
00:05:30.575 --> 00:05:32.097
So for example, I'm selling something that goes along with your purchase.
101
00:05:32.217 --> 00:05:48.110
If I am doing, if I'm selling that flat screen and I'm also bundling it with something like a PS station, a PlayStation or a controller or video games, those would be cross sells and different things with the TV.
102
00:05:48.130 --> 00:05:48.331
Okay.
103
00:05:48.931 --> 00:05:58.957
But if I'm trying to upsell, I'm taking the person from a 24-inch TV to a 42-inch TV, and I might even be selling a warranty or some sort of warranty around the screen itself.
104
00:05:59.177 --> 00:06:01.739
That would be a better version of the product that they're buying.
105
00:06:02.399 --> 00:06:05.281
And I truly believe we as home service business owners are going to be a better version of the product
106
00:06:05.421 --> 00:06:16.530
gets so wrapped up in the next shiny customer and getting more customers that we spend very little time on retention and almost no time whatsoever on Ascension.
107
00:06:16.970 --> 00:06:19.232
We are in love with onboarding new customers.
108
00:06:19.921 --> 00:06:23.805
And so again, upselling is a better version of what you are already buying.
109
00:06:24.185 --> 00:06:27.168
Cross-selling is, hey, you might also like this.
110
00:06:27.629 --> 00:06:29.170
Hey, I know you're buying that 24-inch TV.
111
00:06:29.351 --> 00:06:32.794
You might also like this PlayStation and these video games.
112
00:06:33.355 --> 00:06:35.697
So upsells, cross-sells.
113
00:06:36.940 --> 00:06:40.443
When it comes to like trucks, we get upsold all the time.
114
00:06:40.503 --> 00:06:45.727
When you go to Ford, they have the XL version, the XLT version, the King Ranch, the Lariat, the Raptor.
115
00:06:46.027 --> 00:06:48.008
These are all ways to get you to spend more money.
116
00:06:48.689 --> 00:06:57.455
And immediately a lot of us think that, oh, that's super salesy and it's going to lead to customers turning me away because they are being upsold and people don't like that.
117
00:06:58.116 --> 00:07:00.558
Look, the biggest fans of Ford.
118
00:07:01.298 --> 00:07:03.059
do not own the Excel version.
119
00:07:03.759 --> 00:07:06.961
They spend more money with the business and get a better product.
120
00:07:07.501 --> 00:07:18.946
And so if you want to reduce churn, if you want to have better customers, if you want to have people that are your biggest fans, you solve more of their problems and you upsell them into more of your services and you get them to pay you more money.
121
00:07:19.586 --> 00:07:20.727
Your best paying customers
122
00:07:21.587 --> 00:07:22.527
are your best customers.
123
00:07:23.168 --> 00:07:26.489
Your lowest paying customers are the ones that cause you all the pressure and pain.
124
00:07:27.329 --> 00:07:36.912
And so the same way that Ford is gonna try to get people to upsell into higher versions of the truck, you want to upsell your existing customers and do better versions of the services that you're selling them.
125
00:07:37.832 --> 00:07:39.253
And this can be done in so many different ways.
126
00:07:39.273 --> 00:07:42.936
We just mentioned 11 different ways that you can do upsells inside your business.
127
00:07:43.077 --> 00:07:43.957
Highly recommend this.
128
00:07:44.077 --> 00:07:46.940
Do not make your upsell messages super salesy.
129
00:07:47.220 --> 00:07:50.783
Like, dear customer, oh, we have noticed on your property, blah, blah, blah.
130
00:07:50.803 --> 00:07:54.986
And I'm like, hey, hey, hey, Bob, the crew's at your property, noticed the bushes were overgrown.
131
00:07:55.006 --> 00:07:55.907
Do you want an estimate?
132
00:07:55.947 --> 00:07:56.628
I can get it to you tomorrow.
133
00:07:57.080 --> 00:07:58.300
Make it really, really simple.
134
00:07:58.901 --> 00:08:00.561
We don't include pictures in our emails.
135
00:08:00.841 --> 00:08:02.122
We don't include links in those.
136
00:08:02.362 --> 00:08:04.762
We don't say, signed off the Augusta Lawn Care team.
137
00:08:04.782 --> 00:08:05.763
We just leave it.
138
00:08:06.163 --> 00:08:07.243
They know where it's coming from.
139
00:08:07.263 --> 00:08:10.264
Make it really, really personalized, and they will respond at a higher rate.
140
00:08:10.584 --> 00:08:13.005
The stance on upselling is what I'm looking for.
141
00:08:13.885 --> 00:08:18.107
Is every aspect of the business geared in a way to be able to sell the customer more stuff?
142
00:08:18.247 --> 00:08:22.108
If not, we are constantly going to spend money on onboarding new customers,
143
00:08:22.808 --> 00:08:28.955
We're going to constantly spend more and more money on onboarding more customers, and we're never going to be able to turn off the marketing funnel.
144
00:08:29.416 --> 00:08:32.239
We're never going to be able to start spending money on every single lead.
145
00:08:32.580 --> 00:08:37.485
You start making money in home services when leads start coming to you without even spending money on every single one.
146
00:08:38.126 --> 00:08:42.811
And so the number one way for me to do this is upsell and cross sell services to my existing customers.
147
00:08:43.411 --> 00:08:53.682
And my job, my, my, my ultimate goal is that I want to also turn every one-time job into a recurring revenue job, downsell big one-time jobs and do reoccurring services.
148
00:08:53.882 --> 00:08:58.126
If someone can't pay for a $30,000 roof replacement, suggest that.
149
00:08:58.747 --> 00:09:01.409
regular repair visits for leaks instead.
150
00:09:01.849 --> 00:09:06.092
This is re reoccurring service is cheaper than the one-time job.
151
00:09:06.772 --> 00:09:08.013
You could downsell further.
152
00:09:08.033 --> 00:09:09.914
So like, like, man, people are price sensitive.
153
00:09:09.954 --> 00:09:10.134
Great.
154
00:09:10.154 --> 00:09:13.837
This isn't the time to downsell instead of having a $30,000 roof replacement.
155
00:09:13.857 --> 00:09:14.637
I'm just like, okay, great.
156
00:09:14.877 --> 00:09:17.739
We're going to be coming and we'll do roof roof repairs.
157
00:09:18.219 --> 00:09:19.020
That's reoccurring.
158
00:09:19.240 --> 00:09:21.822
There's no schedule for it, but when there's a leak, you're going to come fix it.
159
00:09:22.382 --> 00:09:25.405
you could downsell further by offering a cheaper roof checkup.
160
00:09:25.945 --> 00:09:29.188
This recurring maintenance would prevent leaks before they cause damage.
161
00:09:29.788 --> 00:09:33.692
These monthly or quarterly inspections can help keep their roof in good shape.
162
00:09:34.713 --> 00:09:45.997
So there are just so much opportunity to be able to take a one-time job and downsell it into a reoccurring job, like a repair usually.
163
00:09:46.438 --> 00:09:53.220
So usually I think about installs as one-time jobs, repairs as reoccurring because when there's something broken, I have to fix it.
164
00:09:53.680 --> 00:10:00.683
And then maintenance as recurring, which means it happens on a weekly, monthly, biweekly, et cetera basis.
165
00:10:01.333 --> 00:10:06.936
And the reason this is so important, I keep pulling up the book, but this is what we talk about in the book.
166
00:10:07.697 --> 00:10:17.663
The reason it's so important, especially during times of economic recession, is recurring revenue is much more stable during economic turmoil.
167
00:10:18.744 --> 00:10:25.368
And people really noticed this back in 2022 when all of a sudden interest rates spiked up because all of a sudden massive projects just...
168
00:10:26.008 --> 00:10:26.728
was stalled out.
169
00:10:27.048 --> 00:10:34.630
The amount of people that were actually going forward with 50, 60, $70,000 jobs really slowed down when interest rates spiked up.
170
00:10:34.990 --> 00:10:38.810
But from a recurring perspective, in terms of maintenance, everything just stayed the same.
171
00:10:39.290 --> 00:10:43.091
Now, when it came back to, here it is, 877.
172
00:10:43.531 --> 00:10:49.072
During the 2007, 2009 financial crisis, new vehicle sales dropped by 42%.
173
00:10:49.792 --> 00:10:51.472
I think of that as a one-time big purchase.
174
00:10:51.492 --> 00:10:53.813
Like it's a one-time big install kind of thing.
175
00:10:54.593 --> 00:11:00.896
Meanwhile, the aftermarket sector repairs and maintenance experience only a 1% decline.
176
00:11:01.376 --> 00:11:08.159
Again, I think of repairs as reoccurring and maintenance as recurring revenue.
177
00:11:08.719 --> 00:11:13.501
During tough times, people delay buying new cars, but they still take care of their current vehicles.
178
00:11:13.921 --> 00:11:20.584
This requires recurring, sorry, this requires reoccurring repairs and recurring maintenance.
179
00:11:21.024 --> 00:11:22.224
Brake pads need to be swapped.
180
00:11:22.464 --> 00:11:23.725
Oil changes need to be done.
181
00:11:24.365 --> 00:11:32.017
Another reason to focus on recurring revenue, recurring revenue doesn't depend on having an exceptional salesperson present at all times.
182
00:11:32.297 --> 00:11:36.363
There are so many reasons to try to get someone into a recurring service.
183
00:11:36.644 --> 00:11:38.847
So the question is, how do I upsell them into that?
184
00:11:39.488 --> 00:11:41.511
And use the 11th strategy at the very beginning.
185
00:11:41.671 --> 00:11:43.153
You're going to create the packages.
186
00:11:43.173 --> 00:11:44.114
You're going to create warranties.
187
00:11:44.134 --> 00:11:44.975
You're going to create guarantees.
188
00:11:44.995 --> 00:11:46.538
You're going to create tiered levels of service.
189
00:11:46.558 --> 00:11:49.822
You're going to have a good, better, and best model and package that you sell people.
190
00:11:50.122 --> 00:11:55.329
And a great time to do that is once the job is done, especially if you do one-time big projects.
191
00:11:56.070 --> 00:11:58.833
My goal is to upsell them into a recurring maintenance package.
192
00:11:59.133 --> 00:12:04.858
My goal is to upsell them into a warranty that I will come back and fix anything in the future.
193
00:12:05.378 --> 00:12:09.602
I want to upsell them on the initial estimate that, Hey, they spent an extra $5,000.
194
00:12:09.902 --> 00:12:12.084
I will guarantee this project for the next 15 years.
195
00:12:12.845 --> 00:12:15.788
And I'm simply, yeah, you're like, well, what happens if it breaks?
196
00:12:15.808 --> 00:12:15.928
Yeah.
197
00:12:16.611 --> 00:12:17.612
That's what insurance is.
198
00:12:17.972 --> 00:12:23.075
And that's why insurance is such a great business model and has been around for many, many years, is because you're selling thin air.
199
00:12:23.095 --> 00:12:25.076
You're selling reassurance to customers.
200
00:12:25.416 --> 00:12:38.383
And when you can get away from being a commodity service in your home service industry, where you're just selling like everyone else is, and instead you're selling peace of mind, you're selling insurance, you're selling thin air, and that is the work that we do, we will stand behind.
201
00:12:38.423 --> 00:12:45.447
When you sell that, and you're able to mark up for that and upsell customers in that higher level of value, that's when you'll make money.
202
00:12:46.067 --> 00:12:47.288
That's when you'll be profitable.
203
00:12:47.768 --> 00:12:55.852
Instead of always thinking about price and we got a discount, how can you actually increase the price and upsell customers by taking away all the things they're afraid of?
204
00:12:55.932 --> 00:12:58.053
They're afraid of you doing a lousy job.
205
00:12:58.393 --> 00:12:58.874
Okay, great.
206
00:12:59.594 --> 00:13:03.196
I'm going to charge them more and give them a guarantee or a warranty.
207
00:13:03.216 --> 00:13:04.717
And I'm going to bake that into the price.
208
00:13:05.037 --> 00:13:08.999
And so for example, planting trees, a lot of times people don't water their plants.
209
00:13:09.439 --> 00:13:10.120
So what am I going to do?
210
00:13:10.420 --> 00:13:11.362
I'm going to upsell them.
211
00:13:11.482 --> 00:13:16.568
Hey, look, I will guarantee these plants as long as we install the irrigation for them.
212
00:13:16.969 --> 00:13:17.589
What did I just do?
213
00:13:17.950 --> 00:13:23.357
I just upsold them from a planting job into a irrigation job into a warranty.
214
00:13:23.937 --> 00:13:29.024
Oh, and by the way, we will replace them at no cost as long as we do maintenance on them on a monthly basis.
215
00:13:29.504 --> 00:13:35.071
This is how you upsell a one-time job and do recurring revenue over and over and over again.
