How This $1.3M Business Survived a 0% Close Rate

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Hello, home service millionaires.
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This is Mike Andes.
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And today I'm doing a one-on-one coaching call with a $1.3 million tree service.
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That is all subcontracted labor.
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And we're going to be talking a ton about upsells, creating a great offer for outbound sales, as well as making sure you have incentives in place for your general manager, your salespeople and getting more reviews.
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It's jam packed, a great operator.
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And I'm really looking forward to sharing with you this coaching call.
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Let's go ahead.
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and roll the tape.
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We're a tree service company.
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We do outbound email and SMS to sell packages.
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Our packages are 2.5K for a half day and 4.8K for a full day.
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On average, we're doing about 60 jobs a month and we make $1,500 gross on a half day and 3,000 on a full day.
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All work is done by 1099 subs and they're managed by one W2 field ops manager.
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We've tested a 20% price increase.
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It just destroyed our close rate, 1.5% close rate to pretty much zero.
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We've gotten callbacks down to pretty much one in the past two weeks.
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So one out of 28.
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And this week, we've started having him do upsells and he's closed two upsells out of 14 jobs.
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So it was a total of 2,250 an additional gross profit, about $1,100 gross profit each.
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The core aspect of what I'm wanting to accomplish this month and my quarter goal is to keep callbacks at essentially zero, get 50% of customers leaving a five-star review,
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and then add $500 gross profit per job on average.
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And so we're looking to have about $7,500 a week of extra gross profit coming in.
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But we probably need to sell around $10,000 because what I told him is, you know, we'll give you 28% of the gross profit that you're able to bring into the business while you're on-site and upsells.
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At the end of the month, you know, when we're looking at his scorecard, we want him to be saying, hey, you know, I closed $10,000.
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10K in gross, you know, our callbacks are zero, and I got eight reviews or seven reviews or nine reviews this week.
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And so how would you go about from where we are getting to where we want to be?
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Yeah, so a few things.
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I'll start on the offer side, then I'll switch to the operation side.
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So from the offer perspective, when you send out a text or an email, I'm guessing you're scraping, are you scraping data and then sending that out?
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We scrape homeowner's data and the motion looks like, hey, can we give you a quote?
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We saw your trees, saw your property, can we give you a quote for tree trimming?
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Yes, offer, bonus, bonus.
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Bonuses if they say no.
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Okay, so if they say, no, I'm not interested, then you have other stuff.
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We'll trim all your trees.
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It'd be $2,500.
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I'm not interested.
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Insert curb appeal bonus.
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We'll pressure wash this amount, clean your front windows, put two yards of mulch and a couple other things.
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And then if they still say, hey, no, what about if we add in a fertilization package?
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And then if they say yes to any of those, then we move them to the next step.
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We put them on the schedule.
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What is your response rate?
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So not like the amount of people that say yes, but what's your response rate?
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So our response rate is about 1.5% on text and 0.5% on email.
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However, depending on the freshness of the email domains, if they're super fresh, it's 0.5.
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If they drop, it's 0.1.
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And then close rate on text is 1.5%.
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And then close rate on email is 2.5%.
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Oh, wow.
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That's a low close rate.
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Wow.
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Okay.
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Okay.
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Interesting.
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This is a little weed.
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So if you don't know this, don't worry.
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How many people say no, you make that secondary offer and they're like, oh yeah, actually I will take it if you throw in a yard of mulch and some pressure washing?
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So depending on the copy we use, I would say anywhere from 50% to 60% close after we introduce the upsells.
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I'm sorry, the three bonuses.
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The bonuses.
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Okay.
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Yeah, because what's interesting to me is your real cost is the labor.
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And so I'm wondering, though, if 60% of people are saying yes after you introduce the offer,
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of extra bonuses.
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My question is, it's not a matter of how do we make the 1.5% close more often?
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It's how do we get the other 98.5% of people to initially even respond to you?
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And my question is, can we just make the offer better by offering those giveaways or those freebies with the original offer?
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Because now it's like, we will trim all your trees.
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We'll
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I've thought of that, and I think that's a great idea.
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The problem we have right now is we're already at pretty much capacity or close to it.
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We can do about 16 jobs a week, and we're doing 14.
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So what I'm really trying to do is just tweak the machine and get all the ounces of extra profit out to fund increased capacity.
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And so that's what I'm kind of doing now.
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But since you subcontract, what's the extra cost of growth?
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If you doubled the amount of responses and accepted jobs, is it a matter of hiring one more W-2 to manage the subs?
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What's the constraint basically?
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Yeah.
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I'm currently doing the sales now.
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And so what I was going to use the extra money, the money, the extra 500 is to pull me out of sales and pull my girlfriend out of the office, put someone in sales that can just focus solely on sales and put someone in office that can focus solely on office.
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And then they can go out and get, you know, 40 closes a week.
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And then the office they can handle, you know,
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scheduling, reaching out, getting invoices paid, stuff like that on 40.
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And then also we'd also need to hire another field operations manager.
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There's a drastic difference from when we don't have someone out from our company managing the subs compared to when we do.
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Okay.
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How much are you collecting when someone accepts a job?
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Are you 50%?
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Zero.
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Okay.
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Yeah.
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So this is a cashflow issue because when you have subs, you have very low like cost of the jobs getting done.
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You just have the overhead of a manager, admin, like someone to manage the job, et cetera, the salesperson.
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And so you can have a really lean organization.
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The problem that you're running into is you don't have the cash to fund the growth of your office person and salesperson because you're not collecting any money up front.
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So we actually do.
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So we pay our subs on a net basis.
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And so we're able to collect the cash before and then pay the subs from that.
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And then we also have we have enough operating capital that, you know, if, you know, there's a job that takes an extra couple of days to pay, it's not going to hurt us anyway.
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We've tried taking deposits.
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But since we're doing kind of a direct response sales motion instead of being out in the field, that drastically drops close rates.
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But if that's the case, if you're collecting all the money before you have to pay your subs, what's the extra cost associated with growth besides two payroll people?
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I guess where I'm at is I'd rather get this down really well because I feel that there's more juice to squeeze out of what we're currently doing rather than doing more on something that is not as good as it could be.
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And so I also don't want to, because right now we'll probably cash flow about $40,000 a month.
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I'd rather, you know, we hired an operations manager and
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get away that he pays for himself with you know whether he's on site closing more jobs getting upsells and then have him do that and then use the extra profit from that fund the next um employees rather than going from 40 to say 25 or 30 and then trying to build back up yeah but I I feel like you have a good model I feel like it's profitable too like what percentage are you giving to your subs on average
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So right now, our all-in cost per job is around $1,000, and that includes materials as well.
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And that's averaged out across the months.
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So some jobs might not have any materials, some might have $200.
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So 40%.
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So 40%.
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Okay.
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And when you say a thousand, I'm guessing that's on the $2,500 job.
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That's not on the full day.
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Got it.
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And so what percentage is for half day?
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Is that mostly what you sell?
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That's pretty common.
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Majority is half day.
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Got it.
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I'm going to go out on a limb and say it's usually the salesperson has to say, hey, this is a full day job and you have to go.
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Got it.
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Okay.
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So the way we find a lot of those is somebody will have a big property, they say, Hey, I don't see how it's this good of a price.
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I'm interested.
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We send someone out our field operations manager, and he says, Yeah, this is a full day.
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They say, That's what I thought.
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I'm cool with that price.
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Yeah, like, look, we get optimized to look how's come home.
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I think you have a good enough model, though, where you have 60% of gross margins.
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And then let's just say 20% you're going to give away for your manager for an estimator, etc.
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Like,
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A 40% margin business and home services, I don't know how much more juice we can squeeze from it.
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You might get to 50 or 60, but why not just go double or triple it?
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Because I see this as much more constrained by the fact that if you can just get it from 1.5% response rate to three or 4%, we double or triple the business.
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And the absolute return of 40,000 might go down for a couple months, down to 25 or 30.
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But if we can double or triple the output, that becomes 70 or 80,000 a month in free cashflow.
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The reason I did that, and I'm kind of already, I don't know how much I could change because I'm already in the motion of this is what we're doing.
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And I've already aligned the team.
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I'm like, this is the quarter goal.
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My thinking was, you know, if I can, right now we're doing 40.
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If we can just get the extra gross profit and get the reviews, we'll go to 73 a month.
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So we pretty much doubled.
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And then from there, then I was going to say like, okay, our model's really tight.
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I'll scale this to the middle.
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And that's kind of how I was thinking it.
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But either way, I've already started.
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I can't do that.
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I think you could do both too, right?
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Like I think you could, because you don't have a very heavy, you know, you don't have to go buy trucks and equipment.
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So like you could theoretically push on the offer side and increase your conversion dramatically.
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I generally believe that 60% of people after they respond saying no, if you're able to get 60% of your yeses to come from after that offer, you're going to get 60% of your yeses
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I'm not worried about optimizing that.
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I'm worried about the other 98% of people that don't even respond to you and trying to get that to 3% or 4% could double the business just by putting those offers up front.
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And we're talking about probably an extra $50 in materials because you're selling the same half day.
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It's just a matter of a little extra materials thrown in for like mulch, for example, or fertilizer.
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That's on the offer side.
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I think for the operations perspective, I think you're definitely directionally correct, getting a W2 to manage the subs.
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And how have you found, I know it's only been a couple of weeks, but like, how have you found it around giving him a percentage of gross profit versus the net profit?
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Has that been a problem or is there any friction with the operations person and the salesperson?
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I'm the salesperson right now.
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And so what I've done is I just said, hey, I want to make it so that while you're on site, the stuff that no one else was going to close, whatever you close, you get that.
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Because I don't want him to care that if we have super high OPEX or whatever, that's not his concern.
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So like he closed a tree removal while we were on site and then got the crew and he was like, hey, this is going to take 30 minutes.
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Let's just do it while we're here.
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So that was $1,000.
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So he made $280 from that.
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And then the company made 720.
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And then while he was at another job, he was like, hey, I think we're going to need another two hours.
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It's 1250.
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If you really wanted to do this other stuff, too.
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They said, that's fine.
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Then he didn't.
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He just told the crew, hey, we're going to have to be a little bit longer here, but I'm going to bring you guys lunch.
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So he made another 1250 for the company right there.
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So I found that works well.
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And so is it 28% just then on his upsells or is it also on the job as a whole?
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So this is where it would be.
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It would be on, there's like four tiers.
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So his base is 65 and then on upsells, anything he does on site, he gets 28% of that.
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Since ours is kind of direct response, if a customer's like, hey, I'm really interested, but I want someone to come out and walk through the property with me.
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If he goes out and turns like a half day to a full day, he gets an added bonus on that.
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If he is on site and say the neighbor's like, hey, I'd like this work done or this, and he closes another cell, we pay him 140, which is about what our CAC is, or 280 if it's a full day.
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And so he has four ways he can make more money.
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And then that way he's on target to make 150, which I figured if a guy like him can make 150, as long as I'm treating him for respect, he's going to want to stay with me forever.
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Got it.
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And in most of the direct response, do you not sell it like as a package they can just buy on your website?
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We usually do it like email back and forth, configure, send quote, they sign, propose, and like, we don't really do it to the website.
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How much of your traffic comes in, like, are your leads come from website, you think?
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Very small, like, mostly direct, really?
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Wow.
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I definitely, I'd definitely be trying to fix that.
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Just mostly just like, because like, whenever we're relying on direct response, like, especially for scraping, there's just a level of risk there when all my leads are coming from that.
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And I think that your website's good enough to convert.
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It's just a matter of, like, ranking, you getting the reviews that you're doing, et cetera.
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Because it would be nice if we could, like, 10, 20, 30% of leads start just coming organically from the website.
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Real quick, before we continue with the episode, I wanna introduce you to home service web design.
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If you are a home service business owner and you're trying to get more leads and drive more traffic to your website, with great search and optimization, you'll definitely wanna check it out.
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Its 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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That's going to be actually in month two.
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So I'm sorry, month two, we're going to hire a salesperson, office person.
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And then month three, we're going to add a kind of separate channel so that way we're not single risk.
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But really, I wanted to see, how would you go about the idea I had of 50% of customers leaving a five-star review and getting that onsite review
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and then also getting that extra gross profit, whether it's raising prices, which I tried, I couldn't hold the 20% price increase, or if it's upsells, or if it's upsells on site, if it's upsells after they signed the formal quote, how would you go about
208
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Yeah, I think so.
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First off, in terms of the reviews, people give reviews usually for the sake of the people doing the work, whether it be employees or in your case, subs.
210
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They don't really care about the business or your five stars.
211
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They care about the team that was there.
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So we've always found we can double the amount of people giving a review if we just say, hey, by you giving a review, the people, Billy, Bob and Susie on your site, they get 50 bucks.
213
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or they get some sort of incentive.
214
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And so whether that be your field manager or literally the subs, just be like, hey, can you scan this and give me a review?
215
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If you do, I get an extra X, Y, and Z.
216
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Whether you give that to your subs or your field manager takes that, but you'll get way more reviews on site if you just do that.
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You're saying like, if you had a card and said, hey, by the way, the owners of the company, they give me a bonus.
218
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Every review I get, I really would appreciate it.
219
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Is there any way you could leave me a review?
220
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And then they say, yeah, sure.
221
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And then they tap the card.
222
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Yep, and you can do the tap or you can even just do the either laminated or plastic cards that have the QR code.
223
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And that way you can track the QR codes and who is getting scanned.
224
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Got it, got it.
225
00:15:08.917 --> 00:15:10.678
Okay, I like the QR code idea.
226
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So right now we only have Yelp and Facebook.
227
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We had a GMB, but it got taken.
228
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Compromised, yeah, it's always crazy.
229
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Do you think that's fine enough now to just keep ramping up Yelp reviews?
230
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I would highly recommend Google, especially with AI.
231
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They're going to use more and more.
232
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I would definitely recommend that you have your phone and email, that you're not – whatever's on that Google business profile, don't use that when you're scraping leads.
233
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Sure, of course not.
234
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But highly, highly recommend that.
235
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I would drive all my reviews to that because it's going to start bringing in organic traffic from SEO.
236
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And AI is – Gemini, for example, is just scraping reviews, even more so than keywords on your website now.
237
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Okay.
238
00:15:52.481 --> 00:15:53.823
So I would make sure you get the reviews.
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And then I would also take the review, put it into AI like chat or Gemini and say, hey, give me a SEO friendly response for this customer.
240
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And it will then pump out like a nice paragraph for you to respond to the customer using tree service, your local area, San Antonio, like these sort of things, because that's what the AI is really looking for.
241
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Cool.
242
00:16:13.082 --> 00:16:14.663
So, okay, I got that.
243
00:16:14.823 --> 00:16:17.626
Now, Tom, what about adding the gross profit per job?
244
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Because that's kind of like, if I can do that this quarter, all the rest of the stuff I can pretty much win on.
245
00:16:22.970 --> 00:16:24.712
That's like a big meaty thing.
246
00:16:24.912 --> 00:16:27.875
Is the project manager the only one that can give a price, technically?
247
00:16:27.895 --> 00:16:30.237
Like your subs aren't ever talking to the customer, are they?
248
00:16:30.677 --> 00:16:31.478
No, no.
249
00:16:31.838 --> 00:16:32.058
Okay.
250
00:16:32.338 --> 00:16:36.199
And is this project manager going to pretty much every job site and just like kind of making sure things are going good?
251
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Yeah.
252
00:16:36.760 --> 00:16:43.041
So he'll do the initial walkthrough and the final walkthrough and then also make sure the subs are doing what they're supposed to do.
253
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Like, hey, can you trim this branch a little bit more, stuff like that.
254
00:16:45.522 --> 00:16:50.144
And when he's doing the upsell, is it mostly like, hey, do you want more done today?
255
00:16:50.624 --> 00:16:54.205
Or is he trying to sell something like on a recurring or annual basis?
256
00:16:54.225 --> 00:16:54.505
Yeah.
257
00:16:54.605 --> 00:16:58.508
So not annual basis, in the office we say, hey, would you like us to come back next year?
258
00:16:58.828 --> 00:17:07.034
What he said, and he has a history of doing this for his father's company, he goes, what I'm looking for is other things that I see that could be done.
259
00:17:07.374 --> 00:17:09.936
And then I ask him, hey, do you want this tree removed while we're here?
260
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It's cheaper.
261
00:17:11.117 --> 00:17:13.498
Hey, I know you wanted this done to this level.
262
00:17:13.558 --> 00:17:14.859
It's gonna take a little bit more time.
263
00:17:14.879 --> 00:17:15.640
Do you want me to do it?
264
00:17:15.660 --> 00:17:16.340
It's X amount.
265
00:17:16.560 --> 00:17:18.742
Just seeing what he could sell on.
266
00:17:19.682 --> 00:17:25.164
I think for one-time jobs, that would definitely be the move is like selling more of what, like taking out a tree.
267
00:17:25.184 --> 00:17:29.266
Like, so for example, for you, it's like tree removal, definitely selling more today.
268
00:17:29.646 --> 00:17:42.291
I think anytime you're trimming or you're doing hazardous, like branches over a house or power poles or anything that's pruning related, I would really incentivize getting them to confirm next year and just be like, Hey, you just paid us 2,500.
269
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Would you like a $1,200 option?
270
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As long as you schedule with it.
271
00:17:46.333 --> 00:18:09.844
me now i can get you on from a year for now and the reason is because in people's mind they always think annually when it comes to stuff even like tree service it's like oh i'll kind of have to do this every once in a while and you can just have this script of like hey on average this is going to be need done every 12 to 24 months if you go ahead and schedule now with same time next year we can give you a big discount on what you just paid us which is 2500 bucks if you just schedule it now
272
00:18:10.064 --> 00:18:11.705
So we can definitely do that.
273
00:18:11.725 --> 00:18:14.946
And that's kind of something my girlfriend's wanting to pull out of the office.
274
00:18:14.966 --> 00:18:18.527
That way she can focus on, you know, annual retention and just get that flywheel.
275
00:18:19.847 --> 00:18:22.588
Mostly because the customer is most satisfied when they're doing that walkthrough.
276
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Because he just solves a problem for them.
277
00:18:25.389 --> 00:18:28.390
And so even if it's a day or two later, if your girlfriend's reaching out,
278
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afterwards, that's when they've already seen, oh, that tree, I should have had them trim that more.
279
00:18:32.891 --> 00:18:34.672
Oh, man, there's some debris down on the ground.
280
00:18:34.992 --> 00:18:37.652
There's a little bit of buyer's remorse that comes in a couple days later.
281
00:18:38.073 --> 00:18:44.274
And so I would just try to make it as close to that peak of customer satisfaction, which is like, you just pay me $2,500.
282
00:18:44.294 --> 00:18:44.914
Thank you very much.
283
00:18:45.174 --> 00:18:47.235
Would you like this again for $1,200 next year?
284
00:18:47.675 --> 00:18:51.516
And that way, you can also say like, hey, you lock in priority and scheduling, so you're not waiting.
285
00:18:52.056 --> 00:18:54.317
And you get this discount if we just go ahead and schedule it now.
286
00:18:54.617 --> 00:18:54.917
Got it.
287
00:18:54.997 --> 00:18:55.278
Okay.
288
00:18:55.678 --> 00:19:02.923
So then what other ways do you think, so say we close them on a project and it's like tree trimming and then they got the first bonus.
289
00:19:03.284 --> 00:19:07.027
We want to get another 500 in profit, like on that job.
290
00:19:07.047 --> 00:19:11.750
Like, so instead of it being 2,500, they're paying us, it's 37 or 3,300, whatever.
291
00:19:12.671 --> 00:19:16.774
What other ways besides having the guy on site looking and seeing what they would need?
292
00:19:17.114 --> 00:19:18.175
How else would you do that?
293
00:19:18.235 --> 00:19:20.557
Or is it just like, Hey, really focus on getting that down?
294
00:19:20.855 --> 00:19:25.258
I think there's obviously 40% of people that are saying yes to your original offer.
295
00:19:26.219 --> 00:19:31.643
So I think that's where I'd be trying to go upsell because like the people who say no to 2,500, it's just too big of a number for them.
296
00:19:31.803 --> 00:19:33.525
As you add the add-ons, that's like, yes.
297
00:19:33.925 --> 00:19:39.349
I think there are people that are saying yes right now, 40% of people to the original offer that we could go up with.
298
00:19:39.569 --> 00:19:44.634
And that's where I'd just be saying, okay, mulch, for example, what are we going to do per yard, for example?
299
00:19:45.135 --> 00:19:48.738
And like, hey, are you interested in these other things right in that same sequence?
300
00:19:48.758 --> 00:19:51.201
Is that already happening when they get the $2,500 offer?
301
00:19:51.261 --> 00:19:52.722
It's like, hey, would you like mulch?
302
00:19:52.742 --> 00:19:53.743
Would you like pressure washing?
303
00:19:53.783 --> 00:19:56.046
Is it kind of go upsell for them then at that point?
304
00:19:56.426 --> 00:20:00.889
So what we would do upsell, because again, we don't know their property specifically.
305
00:20:00.909 --> 00:20:07.734
We just, you know, use satellite imagery and stuff like that for the most part, but it would be something like, Hey, got it.
306
00:20:07.794 --> 00:20:11.296
We, you know, they signed the quote that way they're down for that.
307
00:20:11.756 --> 00:20:14.138
And then, Hey, would you like to add on?
308
00:20:14.358 --> 00:20:17.020
Most of our customers want this and this, would you like to add it on?
309
00:20:17.060 --> 00:20:18.321
Since we're there, we can do it for this.
310
00:20:18.721 --> 00:20:20.062
That's kind of how I was thinking of,
311
00:20:20.462 --> 00:20:20.822
doing it.
312
00:20:21.122 --> 00:20:24.283
And then if they say yes, boom, we just made her right there.
313
00:20:24.743 --> 00:20:29.504
Or if not, you know, have our guy on site say, Hey, I saw this, this, and this, would you like us to do it?
314
00:20:29.744 --> 00:20:31.285
And use those two points.
315
00:20:31.485 --> 00:20:32.665
I didn't know if that's enough.
316
00:20:33.005 --> 00:20:35.546
If we just do that really, really well, that will get us to our goal.
317
00:20:36.426 --> 00:20:40.987
And then maybe, you know, if we could raise price by a hundred bucks, then we only got to take it off under the 400.
318
00:20:41.508 --> 00:20:42.928
Or if there's other ways to hit it,
319
00:20:43.168 --> 00:20:46.452
Yeah, like, are you calling them on the phone to confirm their quote?
320
00:20:46.832 --> 00:20:47.373
Yes and no.
321
00:20:47.433 --> 00:20:51.478
Some people, we send the quote over, and then like 10 minutes later, it's accepted.
322
00:20:51.838 --> 00:20:58.766
Some people will send it over, and then when we're following up, hey, I just wanted to make sure you guys are still wanting to get on the schedule.
323
00:20:58.786 --> 00:20:59.547
So it really depends.
324
00:20:59.827 --> 00:21:00.047
Okay.
325
00:21:00.467 --> 00:21:16.296
I think just nailing that process down, like if you could have someone within two minutes of them being interested in saying yes, hopping on a phone call, confirming the quote, but then also saying, hey, by the way, while we're there, as long as you do this while we're there, you get 50% off our other services.
326
00:21:16.736 --> 00:21:19.258
And then you're naming off, okay, pressure washing, mulch, et cetera.
327
00:21:19.638 --> 00:21:24.841
Even if that person, like I would, you could hire someone very cheap to be like when that phone rings or you pick it up.
328
00:21:25.501 --> 00:21:28.343
or within 60 seconds of a lead coming in, I need you to call them.
329
00:21:28.463 --> 00:21:29.523
I want you to confirm the quote.
330
00:21:29.823 --> 00:21:32.365
And then I want you to ask them if they're interested in these other services.
331
00:21:33.005 --> 00:21:36.747
And if they accept it while they do their tree service, they get 50% off.
332
00:21:37.207 --> 00:21:39.568
And then that way, they don't even have to quote them.
333
00:21:39.808 --> 00:21:41.469
They can just be like, hey, are you interested in this?
334
00:21:41.569 --> 00:21:42.890
If so, we'll send you another quote.
335
00:21:43.250 --> 00:21:48.953
Then that person would just hand it off to your girlfriend or whoever's actually in the office to actually give the quote and solidify it.
336
00:21:49.073 --> 00:21:51.694
Because the objective is that when you show up, you have a $4,000 job, not...
337
00:21:53.055 --> 00:21:56.279
Every single time I've got to send my manager there and try to upsell them live.
338
00:21:56.299 --> 00:22:00.144
Because now you're moving mulch in the middle of the afternoon trying to get the job done.
339
00:22:00.604 --> 00:22:06.291
It's less operationally easy to manage and schedule if you have a job going from $2,500 to $4,000 sometimes.
340
00:22:08.201 --> 00:22:11.963
Just to get this straight, so we have someone who's like, hey, we will trim.
341
00:22:12.343 --> 00:22:13.384
We insert copy.
342
00:22:13.424 --> 00:22:14.144
They say yes.
343
00:22:14.624 --> 00:22:15.125
Sounds great.
344
00:22:15.145 --> 00:22:16.906
I'll go ahead and send you a formal proposal.
345
00:22:16.926 --> 00:22:17.306
Send it.
346
00:22:17.566 --> 00:22:18.006
Call them.
347
00:22:18.406 --> 00:22:20.488
Hey, John, I just wanted to call you.
348
00:22:20.828 --> 00:22:21.448
Walk you through it.
349
00:22:21.868 --> 00:22:23.809
Okay, you can hit that little button that says accept.
350
00:22:23.889 --> 00:22:25.290
Okay, we're already good on the schedule.
351
00:22:25.570 --> 00:22:29.032
By the way, most of our customers get these two things as well.
352
00:22:29.512 --> 00:22:30.513
We're already going to be there.
353
00:22:30.733 --> 00:22:31.774
Usually it's X amount.
354
00:22:32.154 --> 00:22:33.174
Would you like me to add it on?
355
00:22:33.194 --> 00:22:34.355
It would only be one.
356
00:22:34.595 --> 00:22:38.839
In the perfect world, assuming that they know the pricing, they can confirm all of that, that would be excellent.
357
00:22:39.139 --> 00:22:51.411
But if you're like, hey, I can't have that level of service for 140 hours a week, I don't mind even if that initial call is just confirm the quote and say, hey, would you like for these other services you get 50% off?
358
00:22:51.751 --> 00:22:54.153
And then just handing it off to someone who can actually do the quote.
359
00:22:54.394 --> 00:22:56.956
But if they can actually do the quote, that would be excellent.
360
00:22:56.996 --> 00:22:57.857
That's like what we do here.
361
00:22:58.217 --> 00:23:04.720
So if we, if say I charged $1,600 for the two upsells, I could do that on pretty much every single property.
362
00:23:04.960 --> 00:23:10.222
And I would have no, because I would pay my contractors more, so they'd be happy and there'd be no issue.
363
00:23:10.462 --> 00:23:10.642
Yep.
364
00:23:10.963 --> 00:23:12.943
With subcontracted labor, that's the benefit of it, right?
365
00:23:13.184 --> 00:23:17.585
Like you could just really package these pricing in, hey, it's up to 10 yards of molt.
366
00:23:17.706 --> 00:23:21.767
It's up to X amount of square footage of pressure washing.
367
00:23:22.067 --> 00:23:27.550
Have someone just double check and make sure their property's not 10 acres and be able to offer it and sell it.
368
00:23:28.130 --> 00:23:28.591
I'm a fan.
369
00:23:28.871 --> 00:23:29.532
I like that a lot.
370
00:23:29.973 --> 00:23:35.622
So what percent of people, like, how would you say like, okay, that's part of the upsell is good.
371
00:23:36.023 --> 00:23:41.692
Like what percent of people taking that upsell at what price point, what gross profit should we be trying to get?
372
00:23:42.178 --> 00:23:43.679
Yeah, you have a bigger ticket item, right?
373
00:23:44.799 --> 00:23:49.762
And so for us, we need about 60% of people to accept something else, but we're also selling a much lower ticket.
374
00:23:50.022 --> 00:23:54.945
I think for you, if you were able to get 25% to 30% of people to get that upsell, that'd be a win.
375
00:23:55.385 --> 00:24:00.028
And how do we get to 500 is get one third of people to accept 1,500 additional.
376
00:24:00.188 --> 00:24:03.589
You're saying 25%, one out of four people.
377
00:24:03.669 --> 00:24:08.292
If we can hit that on a number that gets us that amount of gross profit, that's a win.
378
00:24:08.432 --> 00:24:11.493
Yeah, and I think too, like how you're scripting that call is very important.
379
00:24:11.513 --> 00:24:14.214
Because I would actually say, hey, let me go and pull up your address.
380
00:24:14.554 --> 00:24:20.776
And like, you could even just say like, hey, usually this other service is an additional let's just call it $19.99, $2,000.
381
00:24:21.296 --> 00:24:29.139
If you get it on the same day that you just accepted your $24.99 package, I can get that cut down to $1,000 or $1,500 or whatever it is.
382
00:24:29.659 --> 00:24:32.900
And so I would definitely work on the scripting of that follow up call.
383
00:24:33.260 --> 00:24:35.181
because you're dealing with a larger ticket item.
384
00:24:35.401 --> 00:24:41.182
But if someone just said yes to $2,500, saying yes to another $1,000 or $1,500 is usually a pretty easy sell.
385
00:24:41.442 --> 00:24:41.762
Got it.
386
00:24:42.142 --> 00:24:46.584
And you think it's important to do that over the phone instead of just sending another copy message?
387
00:24:46.904 --> 00:24:47.924
I would do both.
388
00:24:47.944 --> 00:24:53.706
So I'd immediately be trying to call them, because I need to confirm the quote anyways, because you're not collecting payment, right?
389
00:24:53.746 --> 00:24:56.166
So there's already some human interaction there.
390
00:24:56.486 --> 00:24:58.167
So you've got to confirm the quote,
391
00:24:58.607 --> 00:25:01.511
And I'm going to try to do it within 60 to 120 seconds.
392
00:25:01.892 --> 00:25:03.254
So that way they're like, oh, thank you.
393
00:25:03.274 --> 00:25:03.855
Yeah, awesome.
394
00:25:04.315 --> 00:25:06.999
I'm assuming too sometimes people submit the quote like, oh, no, forget about it.
395
00:25:07.019 --> 00:25:08.341
I was just like thinking around.
396
00:25:08.361 --> 00:25:13.449
So you can kind of get that off of your office manager's plate because that's like a nuclear bomb in their scheduling.
397
00:25:13.469 --> 00:25:13.629
Yeah.
398
00:25:14.613 --> 00:25:19.958
All right, so I'm watching the video back and I realized that I didn't really explain the importance of the text message.
399
00:25:21.179 --> 00:25:25.362
Right now, only about 30 to 40% of your emails are even getting opened up.
400
00:25:25.422 --> 00:25:28.305
98 to 99% of your text messages are getting opened up.
401
00:25:28.765 --> 00:25:36.412
That's why inside of HomeWorks, we really rely a lot on text messages and then creating automations around, for example, when a lead comes in, it just sends them a text.
402
00:25:36.852 --> 00:25:39.154
When an estimate is closed or accepted,
403
00:25:40.120 --> 00:25:46.385
It sends them a text using text is the fastest way to be able to get their card information on file, get them a customer portal link, get adjustments.
404
00:25:46.645 --> 00:25:52.670
Because if I'm on a phone with someone is what we do at Augusta, even all the time is we send them a text message to confirm things like an email address.
405
00:25:52.690 --> 00:25:54.011
It's like, I can't understand this person.
406
00:25:54.031 --> 00:26:06.140
Their accent's thick, send a text message, use homeworks, immediately send out the text, get the information and use automations as well as your office to make sure you actually get your message through to the customer and hear back from them using two way text.
407
00:26:06.800 --> 00:26:07.220
Yeah.
408
00:26:07.240 --> 00:26:11.942
So the way it works is it's funny enough, you said that we call them verbal accepts.
409
00:26:12.162 --> 00:26:13.862
60% of verbal accepts accept the quote.
410
00:26:14.122 --> 00:26:19.224
Some of the other 40% either just like phase out, end up being like a complete wrong data.
411
00:26:19.244 --> 00:26:21.945
And they're like, I was just messing with you guys.
412
00:26:21.965 --> 00:26:22.625
That's really high.
413
00:26:22.645 --> 00:26:23.766
40% is high.
414
00:26:24.246 --> 00:26:28.087
Like we require them to accept and stuff in like, maybe 10%.
415
00:26:28.127 --> 00:26:29.728
But it's also larger tickets.
416
00:26:29.748 --> 00:26:31.008
So like, very interesting.
417
00:26:31.328 --> 00:26:37.353
You're saying the people that get the verbal accepts, call those people or after they accept the quote?
418
00:26:37.633 --> 00:26:38.394
Verbal accepts.
419
00:26:38.554 --> 00:26:46.880
I'd be on top of verbal accepts as fast as possible because that person you can hire very remote, very cheap, and it keeps those 40% of people out of the funnel.
420
00:26:47.221 --> 00:26:52.385
I also think that you can convert slightly more of them if you're just right behind them with the phone call.
421
00:26:52.685 --> 00:26:59.010
And then I think the 60% who are accepting, out of that function, I'm trying to get 20% of those to be able to...
422
00:26:59.510 --> 00:27:00.050
upsell.
423
00:27:00.431 --> 00:27:09.376
And let me just clarify, the 40%, they don't ever go to the office, I handle everything until they close, those 40% just get stuck in the reactivation pipeline.
424
00:27:09.396 --> 00:27:16.741
Yeah, and it could just be like, if they don't pick up the phone call within, you know, as soon as they are booking it, that's when they could go in the audit, you know, the sequence of text messages.
425
00:27:17.221 --> 00:27:24.046
But I think the phone call would quickly screen them out if they're low quality, and also offer the highest chance of them
426
00:27:24.626 --> 00:27:26.728
doing an upsell because they're in buyer mode.
427
00:27:26.788 --> 00:27:27.549
Like they're ready to go.
428
00:27:27.649 --> 00:27:29.891
They just said yes to a $2,500 thing.
429
00:27:30.251 --> 00:27:31.372
They're ready to solve problems.
430
00:27:31.392 --> 00:27:35.475
And if you've got a really good offer, high likelihood they're going to close on those next ones.
431
00:27:35.495 --> 00:27:41.721
So it should be one offer that we're selling that's just our standardized upsell or cross sell.
432
00:27:42.039 --> 00:27:42.519
I think so.
433
00:27:42.699 --> 00:27:47.282
I think like, it's like, look, if someone said yes to 2,500, the first thing I'm doing is confirm new lead.
434
00:27:47.702 --> 00:27:48.302
Are they legit?
435
00:27:48.663 --> 00:27:52.105
Second thing I'm doing is like, Oh, by the way, I just noticed you're in our area.
436
00:27:52.125 --> 00:27:53.645
We're going to be the area doing a multi job.
437
00:27:53.665 --> 00:27:58.008
Like you'd have their scripting to ever who is a valid lead that crosses that threshold.
438
00:27:58.488 --> 00:27:59.909
And I'm trying to pitch them on that next thing.
439
00:28:00.209 --> 00:28:00.529
Got it.
440
00:28:00.669 --> 00:28:00.949
Okay.
441
00:28:01.430 --> 00:28:02.570
So they verbal accept.
442
00:28:02.810 --> 00:28:04.691
I send a quote, call them, Hey, I just sent it.
443
00:28:05.592 --> 00:28:08.894
Go through, get them accept, or if they're not real, get them out.
444
00:28:08.994 --> 00:28:15.997
Or I know I have to, they have to talk to their wife or have to do objection handling things, then hit them with the upsell, go through that.
445
00:28:16.097 --> 00:28:19.539
And then do you still like the idea of having that guy onsite?
446
00:28:19.559 --> 00:28:24.161
Because a lot of the things that he's doing are things that we can do with current capacity.
447
00:28:24.642 --> 00:28:27.063
And it doesn't, it's just pure, just profit.
448
00:28:27.203 --> 00:28:28.563
Yeah, and he's going to get the review.
449
00:28:28.583 --> 00:28:32.885
He's going to try to upsell after the job to try to get them to go to the annual thing.
450
00:28:33.325 --> 00:28:36.206
So I think it's definitely when still having him on the property.
451
00:28:36.566 --> 00:28:50.050
I just think that we can probably get 30% to 40% of what he's doing by just doing it on the upfront and preventing bad leads from getting in the funnel, which would double the capacity of your admin and sales team down the road if you just funnel out bad leads.
452
00:28:50.210 --> 00:28:53.155
So the bad leads never get through.
453
00:28:53.595 --> 00:28:57.241
They only go to the office once we have a signed contract.
454
00:28:57.641 --> 00:29:05.433
And so I usually weed them out, but I just know 40% of people that say, yes, I'm interested, never end up actually signing it.
455
00:29:05.553 --> 00:29:09.194
But there's still time deployed towards trying to follow up, like getting them, right?
456
00:29:09.414 --> 00:29:09.694
Yeah.
457
00:29:09.714 --> 00:29:14.015
They say, hey, you know, my wife just died or, you know, now is not the right time.
458
00:29:14.095 --> 00:29:16.036
And so then we put them in the reactivation.
459
00:29:16.056 --> 00:29:16.156
Yeah.
460
00:29:16.956 --> 00:29:18.237
I'm just trying to look for bandwidth, right?
461
00:29:18.257 --> 00:29:27.599
Like, for example, can we double the business with you without having to like hire another person because we're getting a very low level skilled employee to do that work for you?
462
00:29:28.059 --> 00:29:33.241
Even though it's small, it's 40% of people like that back and forth, even you can do higher leverage tasks in the business.
463
00:29:33.761 --> 00:29:41.186
I'd rather you focusing on scripting and offers and scraping leads than figure out which 40% of leads are good or bad, you know?
464
00:29:41.586 --> 00:29:49.492
So we're going to be able to hit it from 25% to take that upsell that if 25% hit it, that should get us that 500.
465
00:29:49.632 --> 00:29:51.753
And then on site, we should also hit it.
466
00:29:52.074 --> 00:29:55.776
Now, what he's done is the same thing he did when he worked at his father's company.
467
00:29:55.796 --> 00:30:00.820
And what his father taught him is he would just look around and see gutters, that tree needs to be removed.
468
00:30:01.080 --> 00:30:02.701
These could be really nicely prone.
469
00:30:02.721 --> 00:30:02.801
And
470
00:30:02.821 --> 00:30:04.403
then he would go to the customer and talk to them.
471
00:30:04.683 --> 00:30:09.988
Do you think that's fine for right now, just kind of having like a renegade approach until we can SOP it?
472
00:30:10.148 --> 00:30:12.010
Or do you think we should have like a standardized?
473
00:30:12.230 --> 00:30:14.592
Yeah, the challenging part with tree is like, no tree is the same.
474
00:30:14.692 --> 00:30:20.518
It's not like, okay, so you get X amount of like tree diameter, like it just gets really difficult to standardize.
475
00:30:20.998 --> 00:30:23.681
I think I'd standardize the offer and upsell.
476
00:30:24.021 --> 00:30:27.785
And then him going in person, he's fully incentivized to sell like the incentive.
477
00:30:28.105 --> 00:30:32.627
kind of cures the lack of systems because the goal is sell the customer more stuff.
478
00:30:32.967 --> 00:30:34.627
He has the skill to be able to do that.
479
00:30:34.927 --> 00:30:35.908
I think that's fine.
480
00:30:36.268 --> 00:30:44.190
I'd just be trying to set up your admin office and scheduling in a better manner by ideally having upsells known prior to you showing up to every single job.
481
00:30:44.350 --> 00:30:47.712
Because it's very hard to schedule that scale when it's like, yeah, we show up to jobs.
482
00:30:47.932 --> 00:30:49.092
Sometimes we sell a bunch of stuff.
483
00:30:49.112 --> 00:30:50.613
Sometimes we don't sell them anything extra.
484
00:30:50.633 --> 00:30:51.793
And it's exactly what we sold.
485
00:30:52.333 --> 00:30:57.835
And so from a scheduling perspective, that will become a bottleneck down the road for someone that's not as highly skilled as your girlfriend.
486
00:30:58.075 --> 00:30:58.395
Got it.
487
00:30:58.595 --> 00:30:58.856
Okay.
488
00:30:59.876 --> 00:31:00.176
Okay.
489
00:31:00.617 --> 00:31:03.559
So say something you sell, say it.
490
00:31:03.839 --> 00:31:07.921
Do you think we should have it where there's standards of like, Hey, don't sell anything.
491
00:31:07.941 --> 00:31:09.743
That's going to take more than two hours to do.
492
00:31:09.923 --> 00:31:12.785
And if so, put it into another jobs, most of what he's selling.
493
00:31:13.485 --> 00:31:17.848
For instance, like we, I was on site and there was a guy that had a bunch of like new growth on the ground.
494
00:31:17.868 --> 00:31:19.769
He was like, I'll pay y'all a thousand dollars to get it.
495
00:31:19.989 --> 00:31:21.550
But we, like, we could have done that.
496
00:31:21.790 --> 00:31:23.852
We did, he didn't know he was supposed to upsells.
497
00:31:24.252 --> 00:31:25.613
That would have taken 30 more minutes.
498
00:31:25.993 --> 00:31:26.655
Things like that.
499
00:31:26.715 --> 00:31:27.859
Is that all right to do?
500
00:31:28.200 --> 00:31:29.062
Is that kind of what you're saying?
501
00:31:29.423 --> 00:31:32.211
Yeah, I think like for your project manager, you're talking about, right?
502
00:31:32.552 --> 00:31:32.853
Correct.
503
00:31:33.108 --> 00:31:37.472
Yeah, like I think if he's on site and the subs are willing to go extra, that's the kicker, right?
504
00:31:37.512 --> 00:31:40.354
Like if the subs aren't willing to, he's kind of up a creek without a paddle.
505
00:31:40.394 --> 00:31:45.219
So I think it's a matter of as long as he's talked to his subs, okay, are you guys willing to work longer today?
506
00:31:45.379 --> 00:31:48.942
If so, now he knows his capacity to be able to sell to the customer.
507
00:31:49.422 --> 00:31:54.246
So if I was the project manager, I'd first be going to my subs like, hey, you guys are scheduled to be here till three.
508
00:31:54.347 --> 00:31:55.708
Are you willing to work till six?
509
00:31:56.148 --> 00:31:56.689
No, we're not.
510
00:31:56.809 --> 00:32:00.451
Okay, then he's kind of got to go talk to that customer like this is a new job.
511
00:32:01.052 --> 00:32:07.017
And then I would probably incentivize him somewhat differently if he has to schedule on a different day.
512
00:32:07.337 --> 00:32:14.242
Just because the extra drag that's going to create for you, the operation, like just scheduling, even getting that sub to come back, little stuff like that.
513
00:32:14.683 --> 00:32:17.385
But I'm assuming a lot of his upsells are same day, right?
514
00:32:17.725 --> 00:32:20.127
Yeah, the subs are very happy to do that.
515
00:32:20.287 --> 00:32:22.889
We haven't had any subs that are like, yeah, I'm not going to do that.
516
00:32:23.169 --> 00:32:24.471
Yeah, I think it's good then.
517
00:32:24.891 --> 00:32:26.353
Your incentive is well aligned.
518
00:32:26.393 --> 00:32:29.856
It's very hard to systematize and have package pricing around the upsells.
519
00:32:30.257 --> 00:32:33.100
And so I just focus on that because it's easy to package time, right?
520
00:32:33.140 --> 00:32:35.983
So that's what your half day and full day thing works on the upfront.
521
00:32:36.343 --> 00:32:40.648
And then if he's getting there and he's well incentivized to sell them five other things, I don't have any problem with that.
522
00:32:40.888 --> 00:32:45.790
So I told you about how when we went from price $2,500 to $3,000, we just plummeted.
523
00:32:46.091 --> 00:32:50.633
In the past, I've tried $2,750 and the unit economics of that weren't as good.
524
00:32:50.933 --> 00:32:56.736
Do you think I should try and do like $2,600 instead of $2,500 and see how that goes?
525
00:32:56.796 --> 00:33:01.038
Or is it, hey, I think your energy would be better worth spent just perfecting these two things?
526
00:33:01.238 --> 00:33:08.125
Testing is the nice thing about scraping leads and you're basically all outbound is you could test this pretty easily, right?
527
00:33:08.145 --> 00:33:15.993
You know, if you go to 2650, if you go to 2649, like I'd be very interested in playing with numbers around like it's 2026.
528
00:33:16.994 --> 00:33:18.736
So this is the 2026 offer.
529
00:33:18.756 --> 00:33:19.736
It's $2,026.
530
00:33:19.776 --> 00:33:21.218
And here's what it includes.
531
00:33:21.238 --> 00:33:24.401
July 4th, like doing something around 07, like whatever.
532
00:33:24.701 --> 00:33:28.604
So I think you could really play with the offer and test it.
533
00:33:28.884 --> 00:33:30.246
I'd be really interested in going down.
534
00:33:30.626 --> 00:33:40.615
Like, for example, if you really honed in the upsell, well, now we know, okay, if we can get in for $1,500, what happens if I can upsell 80% of them into a $4,000 package?
535
00:33:42.695 --> 00:33:43.776
Oh, I see.
536
00:33:43.996 --> 00:33:44.237
Right?
537
00:33:44.257 --> 00:33:47.099
Because right now you're technically doing this, but they have to respond.
538
00:33:47.319 --> 00:33:51.823
So technically you are already downselling, which is like, oh, you don't want to pay for $25.
539
00:33:51.923 --> 00:33:53.665
Okay, I'll offer mulch.
540
00:33:53.765 --> 00:33:54.926
You're just adding value.
541
00:33:55.226 --> 00:33:58.850
I'd be very interested to test what happens if you do $14.99.
542
00:33:59.170 --> 00:34:02.713
And now instead of 1.5% of people responding, it jumps to 4%.
543
00:34:03.013 --> 00:34:08.018
And then of that 4%, you know you're selling 60%, 70%, 80% of them into a half day or beyond.
544
00:34:08.038 --> 00:34:08.318
Right.
545
00:34:08.463 --> 00:34:16.509
And then you know that you're still making, if our costs are $1,000 and we're charging $4,000, we just brought our costs to 25% sweep.
546
00:34:16.549 --> 00:34:17.530
Correct.
547
00:34:17.810 --> 00:34:18.571
That'd be heaps.
548
00:34:18.611 --> 00:34:19.512
That's $3,000.
549
00:34:19.872 --> 00:34:23.635
So then we're really making $6,000 in gross profit per day instead of $3,000.
550
00:34:23.655 --> 00:34:28.439
So we double our gross profit per day, double the business without any extra operational.
551
00:34:28.679 --> 00:34:28.919
Correct.
552
00:34:29.059 --> 00:34:29.359
Wow.
553
00:34:29.580 --> 00:34:29.820
Okay.
554
00:34:29.840 --> 00:34:29.960
Okay.
555
00:34:30.140 --> 00:34:31.541
But all this comes down to testing, right?
556
00:34:31.561 --> 00:34:44.505
Because I would say to what you said before, like refining it before scaling it, I would definitely refine that upsell process right after the call, like that weeding out, because you're going to get even more slop in terms of leads when you go down market, right?
557
00:34:44.846 --> 00:34:48.907
So I'd really refine that process, trying to get the call within two minutes, et cetera.
558
00:34:49.487 --> 00:34:50.067
Iron that out.
559
00:34:50.348 --> 00:34:57.610
So that way, when you go down market and you dramatically increase the amount of leads that come in, you're not left with like, oh my word, this is a bunch of trash leads.
560
00:34:57.710 --> 00:34:58.791
No one accepts the upsell.
561
00:34:58.811 --> 00:34:59.371
Like, yeah.
562
00:34:59.671 --> 00:35:05.374
hone in all the upsell, hone in the scripting, figure out who's doing that, and then go back and test.
563
00:35:05.474 --> 00:35:05.694
Okay.
564
00:35:05.714 --> 00:35:07.415
What happens if I do a 1499 offer?
565
00:35:07.695 --> 00:35:12.937
Because if you went from 2499 to 3000, and all of a sudden dropped off a cliff, what happens when you go the other way?
566
00:35:13.138 --> 00:35:13.858
Does it triple?
567
00:35:14.198 --> 00:35:15.459
And then I see what you're saying.
568
00:35:15.599 --> 00:35:15.859
Okay.
569
00:35:16.259 --> 00:35:20.400
So based on that, I know we're kind of getting close on time.
570
00:35:20.420 --> 00:35:24.221
So this month, just getting more juice, go from 40 to 70.
571
00:35:24.581 --> 00:35:33.863
Next month, I would tweak the pricing with our mulch and stuff a little bit and then hire, get me out of sales, get my office manager out of that.
572
00:35:34.183 --> 00:35:38.484
And then month three is scale from there, scale to 20 sales, which would be kind of our...
573
00:35:38.684 --> 00:35:41.508
capacity of our field operations and then do a double next quarter.
574
00:35:42.610 --> 00:35:49.941
Do you, with that in mind, do you think it's worth testing like now, like, hey, let's try it at 2600 this upcoming campaign?
575
00:35:50.041 --> 00:35:53.587
Or is it like, hey, just do it what works and focus on the upsells?
576
00:35:53.939 --> 00:35:56.142
Well, we know that 3000 is a non-starter.
577
00:35:56.182 --> 00:35:59.586
We know 2500 works.
578
00:35:59.606 --> 00:36:01.008
2750 doesn't work either.
579
00:36:01.288 --> 00:36:02.350
It doesn't really well.
580
00:36:02.410 --> 00:36:04.593
I mean, it works, but... Too far low.
581
00:36:04.713 --> 00:36:05.774
Like, it drops off quite a bit.
582
00:36:06.255 --> 00:36:07.056
Yeah, you just...
583
00:36:07.076 --> 00:36:10.681
The number of total gross profit you generate is not as good as it's 2500.
584
00:36:10.701 --> 00:36:10.841
True.
585
00:36:11.862 --> 00:36:15.908
Yes, I think you've kind of done enough testing to know you've perfected.
586
00:36:16.168 --> 00:36:19.273
I've got a balanced closer rate and I've got a balanced time with money I make here.
587
00:36:19.633 --> 00:36:27.745
And so I think before I would play with pricing anymore, ironing out the upsell process allows me to go down knowing that I can get people back up.
588
00:36:28.045 --> 00:36:28.225
Right.
589
00:36:28.385 --> 00:36:31.986
Because I generally think like we're trying to optimize this 1% of people.
590
00:36:32.386 --> 00:36:37.787
I'm trying to get you, how do you get, instead of 99% of people not even responding to you, how do you get that to 98?
591
00:36:37.847 --> 00:36:38.788
That doubles the business.
592
00:36:39.128 --> 00:36:44.329
And if we can get them in the door, but then have a solid upsell process, we can get them above $3,000 average ticket.
593
00:36:44.569 --> 00:36:51.290
And so I would really hone that in before I play with price, because otherwise if you go up or if you go down, like if you say, let's try 2,600.
594
00:36:51.430 --> 00:36:56.032
Well, if it drops off a cliff, we really anchored the fact that we know 2,500 is the number.
595
00:36:56.392 --> 00:36:56.672
Great.
596
00:36:57.972 --> 00:36:58.412
we go down.
597
00:36:58.693 --> 00:37:04.138
And I'd only go down if we've greased the upsell wheel enough in those first, right on that initial encounter.
598
00:37:04.478 --> 00:37:08.302
So then what you would recommend is like, just run the 2,500.
599
00:37:08.342 --> 00:37:11.344
We know how many closes, we have the data to forecast on that.
600
00:37:11.605 --> 00:37:19.752
And then just focus on crew manager upselling post job, get an accepted upsell, have that get us to $500 gross per job.
601
00:37:20.853 --> 00:37:26.276
Nail that and the time that you get from having now delegated to someone else that initial upsell.
602
00:37:26.496 --> 00:37:29.257
Because that's not a sales phone because that's like follow the script.
603
00:37:29.517 --> 00:37:30.958
Hone the script in so much.
604
00:37:31.378 --> 00:37:36.380
Now you're going to have time to go play with making a different offer that's at the $1,499 level.
605
00:37:36.760 --> 00:37:38.461
And then what does that process look like?
606
00:37:38.781 --> 00:37:43.544
What would be like a good script to start with for that initial phone call?
607
00:37:43.804 --> 00:37:45.424
Hey, they accepted the quote.
608
00:37:45.645 --> 00:37:47.826
Now we want to sell them on $1,600 package.
609
00:37:48.878 --> 00:37:50.179
Yeah, so first thing is validation.
610
00:37:50.419 --> 00:37:53.582
You already know what you're doing when you're calling someone, making sure this is a valid lead.
611
00:37:53.802 --> 00:37:57.045
Do they actually wanna do this or is this a complete waste of your time?
612
00:37:57.545 --> 00:38:01.908
And that's why when I see your 40%, I'm like, I need that off your plate as fast as possible.
613
00:38:02.329 --> 00:38:03.370
It's just such a waste of your time.
614
00:38:03.830 --> 00:38:05.491
And so first off would be validate lead.
615
00:38:05.712 --> 00:38:07.013
Second would be upsell process.
616
00:38:07.053 --> 00:38:12.737
The scripting around that would be very much based upon, hey, we're in your area doing this other thing, by the way.
617
00:38:13.118 --> 00:38:17.101
If you do the same schedule, like on the same day, we also do that service,
618
00:38:17.541 --> 00:38:18.221
We'll fill in the blank.
619
00:38:18.241 --> 00:38:21.002
Whether it be pressure washing, molten stall, et cetera.
620
00:38:21.282 --> 00:38:29.184
Like if those are your two ones that you always do, I just always say, hey, by the way, that same day, just across town, we're doing a molten stall and a pressure washing.
621
00:38:29.204 --> 00:38:31.004
So we have our crew out there for that already.
622
00:38:31.424 --> 00:38:35.625
If we go ahead and just mix it on the same day, I need 50% off on those services.
623
00:38:35.785 --> 00:38:37.005
Does that sound interesting to you?
624
00:38:37.025 --> 00:38:38.226
Okay, well, what would it cost?
625
00:38:38.446 --> 00:38:39.166
Okay, let me see here.
626
00:38:39.186 --> 00:38:40.026
I'm looking at your property.
627
00:38:40.326 --> 00:38:43.527
Like you could script this and then be like, yeah, it's going to be an extra $14.99.
628
00:38:44.667 --> 00:38:49.250
And that's down from what we usually charge an additional $19.99, for example.
629
00:38:49.570 --> 00:38:52.912
So we use that one a lot where it's, hey, we're already in the area.
630
00:38:52.932 --> 00:38:54.493
That way, usually it's this price.
631
00:38:54.813 --> 00:39:02.638
But then you're saying, you add on that of, hey, the job we're doing nearby is also getting this upsell.
632
00:39:02.678 --> 00:39:04.640
That's why we already have our guys out there.
633
00:39:05.040 --> 00:39:07.982
If we can do your property while we're already near, we can do it cheaper.
634
00:39:08.002 --> 00:39:08.282
Cheaper.
635
00:39:08.662 --> 00:39:09.282
Yep.
636
00:39:09.522 --> 00:39:10.443
Is that interesting?
637
00:39:10.503 --> 00:39:11.423
How much does it cost?
638
00:39:11.744 --> 00:39:14.805
Okay, it would be this price and this is everything that includes.
639
00:39:14.905 --> 00:39:16.246
Usually it's $19.99.
640
00:39:16.366 --> 00:39:17.066
Want me to add that on.
641
00:39:17.286 --> 00:39:17.447
Yep.
642
00:39:17.847 --> 00:39:22.129
I'd validate first the lead, then I would lock in.
643
00:39:22.149 --> 00:39:24.250
So like validate lead, lock in.
644
00:39:24.290 --> 00:39:25.971
Hey, yeah, we got you for $24.99.
645
00:39:26.031 --> 00:39:28.832
Or I'm going to hand this off to the scheduler.
646
00:39:29.653 --> 00:39:31.974
Oh, hey, wait, like I'd very much make it like, oh, wait.
647
00:39:32.034 --> 00:39:33.735
By the way, I just noticed on our schedule,
648
00:39:34.195 --> 00:39:35.937
When I pull up the scheduler, I'm handing this off to them.
649
00:39:36.197 --> 00:39:42.162
I noticed that same day, like I'd very much make it like a, oh, by the way, instead of like, okay, thank you for accepting this.
650
00:39:42.382 --> 00:39:43.523
Now I'm going to get you this other thing.
651
00:39:43.723 --> 00:39:49.468
If you're very much like, hey, by the way, let me see if I can go ahead and get a discount for you and get that on the same day.
652
00:39:49.769 --> 00:39:55.654
And then make the quote salesperson be on the team of the customer, which is like, let me see if I can get this validated for you.
653
00:39:55.974 --> 00:39:56.394
One second.
654
00:39:56.414 --> 00:39:57.876
I'm just, I'm just checking with my manager.
655
00:39:58.236 --> 00:39:58.396
Okay.
656
00:39:58.416 --> 00:39:58.576
Yes.
657
00:39:58.616 --> 00:40:01.599
They said we can go ahead and give you $500 off if you get on that same day.
658
00:40:01.879 --> 00:40:02.260
Got it.
659
00:40:02.280 --> 00:40:07.408
So it's it's OK. And then if they're saying how much objection handling do you think we should do?
660
00:40:07.588 --> 00:40:09.130
Is it like they say, no, just move on?
661
00:40:09.638 --> 00:40:14.941
I think if it's an objection, it's like, hey, first, that's why I want to confirm the $24.99 first.
662
00:40:14.981 --> 00:40:19.624
I want that locked in before I start playing with upsells because then people can sometimes back out on both.
663
00:40:19.644 --> 00:40:20.204
And I don't want that.
664
00:40:20.444 --> 00:40:22.085
I'm like, great, we got you confirmed.
665
00:40:22.165 --> 00:40:23.566
I'm going to send this to the scheduler.
666
00:40:24.106 --> 00:40:29.909
Then I move into the upsell third step, which is, hey, I noticed, by the way, not too far away from you're doing these other services.
667
00:40:30.430 --> 00:40:35.953
I would just very much make sure the upsell is separate from confirming the job so that you don't risk losing that.
668
00:40:36.253 --> 00:40:36.553
Got it.
669
00:40:36.914 --> 00:40:39.896
But I guess what I'm asking is like, they're like, oh, let me think about it.
670
00:40:39.936 --> 00:40:42.138
Should we have our guys be like, hey, what's there to think about?
671
00:40:42.179 --> 00:40:43.199
Or is it like, hey, no problem.
672
00:40:43.219 --> 00:40:44.641
Like, just let me know if you're interested.
673
00:40:44.661 --> 00:40:45.842
So low pressure, ask.
674
00:40:45.882 --> 00:40:47.904
Yeah, I'll send you the quote over just in case.
675
00:40:48.685 --> 00:40:52.048
As long as you get accepted within the next seven days, they can go ahead and tack that on the job.
676
00:40:52.368 --> 00:40:56.011
And then you create an automation sequence that follows up on that.
677
00:40:56.272 --> 00:40:56.572
Got it.
678
00:40:57.052 --> 00:40:58.933
Because that could go to your office manager, right?
679
00:40:59.153 --> 00:41:01.513
The office manager, hey, I'm just going ahead and putting this on the schedule.
680
00:41:01.833 --> 00:41:05.214
I did notice Bobby said that you might be interested in the mulch.
681
00:41:05.234 --> 00:41:07.415
Would you like to go ahead and confirm that for the job?
682
00:41:07.695 --> 00:41:07.915
Cool.
683
00:41:08.235 --> 00:41:08.455
Okay.
684
00:41:08.755 --> 00:41:09.335
That's perfect.
685
00:41:09.576 --> 00:41:12.416
So crew manager, he gets that.
686
00:41:12.736 --> 00:41:13.817
We get that here.
687
00:41:13.857 --> 00:41:16.157
That should get us to the 500 gross.
688
00:41:16.717 --> 00:41:21.199
And then the main thing, the field operations manager needs to say is, hey, I get a little bonus.
689
00:41:21.219 --> 00:41:22.719
Because he does get a bonus for reviews.
690
00:41:23.119 --> 00:41:24.360
Is there any way you could leave me one?
691
00:41:24.380 --> 00:41:25.820
You know, me and my family really appreciate it.
692
00:41:25.940 --> 00:41:26.520
Yeah, 100%.
693
00:41:26.820 --> 00:41:30.661
You'll get way more versus like, give me a five-star review.
694
00:41:30.681 --> 00:41:31.541
No one cares about the business.
695
00:41:31.681 --> 00:41:34.502
And you think 50% is not an unrealistic number?
696
00:41:34.782 --> 00:41:35.122
For what?
697
00:41:35.602 --> 00:41:36.562
Of five-star reviews.
698
00:41:37.022 --> 00:41:37.742
Oh yeah, easy.
699
00:41:38.042 --> 00:41:45.523
If he's one-on-one talking to them and just did a walkthrough and he's saying he's getting money if they just leave him a review, yeah, he'll cash in.
700
00:41:45.824 --> 00:41:46.084
Okay.
701
00:41:46.104 --> 00:41:46.884
All right, Mike.
702
00:41:46.924 --> 00:41:47.664
Thank you so much.
703
00:41:47.684 --> 00:41:49.284
And congrats on Augusta.
704
00:41:49.364 --> 00:41:52.105
I saw y'all doubled this quarter of the last.
705
00:41:52.385 --> 00:41:52.765
It was great.
706
00:41:52.785 --> 00:41:53.725
Yeah, I appreciate it, man.
707
00:41:53.745 --> 00:41:53.905
Yeah.
708
00:41:54.186 --> 00:41:55.283
Well, have a great rest of your day.
709
00:41:55.364 --> 00:41:56.521
I appreciate you and best of luck to you.
710
00:41:56.541 --> 00:41:57.191
You're crushing it, man.