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Hello, hello, hello and welcome to the Million Dollar Electrician podcast where we help home service pros like you supercharge your business and spark up those sales.
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I'm Joseph Lucani and, together with my co-host, Clay Neumeier, we're here to share the secrets that have helped electricians sell over a million dollars from a single service van.
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Now it's time for sales, it's time for scale, it's time to become a million dollar electrician.
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If you're listening now and you should be, welcome Rusty Page to the show of Page Electric, you heard it just about five years in business Last couple of years I think you're around 4 million gross revenue does in staff.
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Is that right?
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Yes, sir, that's roundabout where we're at Absolutely Awesome Out of Kentucky.
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Here's what you're going to get from this show Besides just how to treat people right, how to attract the kind of people you want to treat right, how to retain that level of staff, how to set this roadmap for them to want to stay.
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But Rusty didn't always have it easy either.
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He's going to walk us through how he started, why he got started A big myth.
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In that first year, the first six months, I believe he had a major challenge here he had to overcome.
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But not only that.
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You've built a strategic alliance with a major company that some of us know a lot about and others don't know anything about.
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So I'm so interested to get into that, and not only how to develop an alliance like that, but how to dominate and absolutely dominate.
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I mean, you guys are going to hear all about this and how Rusty did it.
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On top of that, rusty has been teaching second year apprenticeships in the electrical trade for the last seven years.
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Is that right, rusty?
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Did I get that?
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all yes sir, that's correct.
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Awesome, you're doing great things.
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You're a perfect candidate for this show.
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We couldn't be more excited.
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So welcome to the show and thank you for starting us out with the all-important matter of human resources and what to do with them.
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Will you take us back to the beginning and walk us through why you got started with Page Electrical and how this kind of fell flat right away for you?
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Absolutely so.
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It started just after COVID, so roughly 2020, mid to late 2020, early into 2021.
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I was the master electrician at the University of Kentucky Hospital.
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I was one of the masters.
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There were 12 total at the time master electricians.
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I mean it's 600,000 square feet of hospital space, so we had quite a bit of you know, we needed 12 electricians to do our jobs every day, not including all outside contractors.
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So I was one of the 12, loved my job.
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It was my retirement job.
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Like I didn't work real hard, I was always in good conditions.
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You know I didn't have a port ofa-john that I had to.
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You know to go to like things like that and every electrician out there knows exactly what I'm talking about Like to not have to have air conditioned bathroom every day and have a regular, you know, seven to three thirty, never overtime, unless you know they asked me was just that that was the retirement job.
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Like I was in it and I had a friend of mine, chris, who was an executive.
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Uh, he was pretty high up the level with uh, big ass fans which, uh, some people know about, some people don't.
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It is a large 24 foot tip to tip um industrial fan.
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It's called an hvls.
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It's high volume, low speed.
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It spins really slow.
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It puts out a ton of air, just period they're phenomenal products that's their product, absolutely.
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So me and him have been friends for a very long time.
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Our kids actually went through daycare together, like when when my son was six weeks old and when he went into daycare Chris's son was like nine weeks old.
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They went, they literally daycare all the way up.
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So we kind of just we were dads that you know, kind of occasionally talked and we bonded and you know, I did some electrical work for him and things like that.
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And he came to me one day I'm a master electrician at the time at the University of Kentucky and he came to me and he says hey, I really need you to start your own company.
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And I said dude, I'm in my retirement job.
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I, you know, I don't want to like they didn't get.
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I mean, I'm getting paid really well to do basically nothing which you know, at a certain level in your career, you're like this is it?
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This is where I want to be.
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It's, you know, I could do more, this is where I wanted to be, and I was very happy with that.
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And he says, well, we have this other installer that they're our only installer, so they're setting their prices.
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They're not, you know, hitting their deadlines because they don't have to.
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You know they're doing a lot of things that big ass fans as a company didn't want but they couldn't control because they were the only person there was.
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No, they had the monopoly in the area.
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And so we went back and forth and you know me being me and who I am, and outgoing as I am I just decided you know what I'm a master electrician.
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If I don't like it, I can always find a job and I can always go back.
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You know, within reason, obviously, you leave on good terms, you know.
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So that situation was always there.
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So I said you know what I'll do it, let's, let's start it.
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So I quit in January 15th of 21.
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And was it 20?
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Jill, was it 20 or 21?
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My wife's in her office around the corner.
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So anyway, I quit january 15th.
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February, 4th page electric exists just straight up.
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That was us, um, we.
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We set our you know our secretary of state.
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We opened the llc february 9th.
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I took on my first customer, now joe.
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I know you don't know our background and what's went on, but Chris did say hey, you start your own company and you come in, we'll give you.
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There's a ton of work.
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We have this many thousands and millions.
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Oh yeah, we know that story right.
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We've all heard that one.
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So, it's just fine.
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It's not like I didn't trust him or anything, but I went through the process and for the first six months of owning my own company I got zero big-ass fan jobs zero.
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So from february 9th, which is the first day, I went out and just did side you know I used to call it side work.
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It was just work at that point.
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But you know, you know a couple service calls here and there in the neighborhood, you know things like that and um, you have, for six months august of that year I got my first big ass fan job.
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And so between February and August I had to learn to run a company.
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I had to learn to market.
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I had to learn to pay bills.
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I had to learn to pay myself.
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I had to still have the same lifestyle that I had when I worked at UK and the check just showed up in my bank account.
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I showed up, I go to work, run a little pipe, pull a little wire, whatever it is, boom, paycheck.
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Now I had to do all that, just straight grassroots, and that was challenging.
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The only positive that I had going into it that.
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You know everybody's a lot of people that want to start a business.
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They can't get over the fear.
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I never had the fear, just because that's just not who I am Like.
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I mean, the fear was never really there.
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My wife asked me you know, hey, how are we going to do the pay?
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I said I'll pay myself, exactly what I made at UK.
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If it doesn't work, I'll figure it out.
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You know well, I'll go get another job whatever it is, but like I never took another penny more than I made before I started the company, so that was pretty important on how I'm going to reinvest into the company.
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But when it came through, when I worked at UK, I had a bunch of neighbors and side jobs.
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I never did them.
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But what I would do is I'd call my other electrician friends that were all single or had a new family or needed that extra money and I'd say, hey, you know, ronnie or Travis or Jason or whoever, hey, I got this customer that needs this done.
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Do you want?
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You want to do the work?
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And they were all like absolutely send me all the work.
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And I had a little deal with those guys that I would send them jobs, big or small, it didn't really matter, it was a side job.
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They would give me $75 as like a referral fee and they would just charge the customer whatever they saw fit, whatever they saw fair.
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From that $75 on was all theirs.
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So it didn't affect me.
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It's a solid deal.
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But the customers were calling me because I was the contact.
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So when I started the company now these customers are still calling me.
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The only difference is I'm not giving it to Travis and Ronnie and those guys.
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It was just that was my work orders at those times.
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So it wasn't horrible getting started.
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But you know those neighborhood, those I don't know.
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Do you have next door, the next door?
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Yeah, that's not something I want to pursue.
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So yeah, exactly.
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But when you're starting, put your name next door, put your name on a Facebook page.
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That's all it takes.
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And you know, everybody's got that GFI on the front porch.
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That doesn't work.
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Everybody's got the ceiling fan needs changed.
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Everybody's got the laundry room light that needs changed.
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That's how I started straight up and I was very simple and I was very honest with every single customer.
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It was here's what I charge, here's how long it should take me.
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If it takes me more, it'll cost you this period, like there's no reason to blow smoke up anybody's butt.
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And oh well, I don't really know what it's going to take.
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I'll have to get my hands dirty.
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No, should be this much.
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Shouldn't be more than this much.
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I'll be somewhere in the middle.
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Are you happy with that?
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And that's how it starts.
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And you've really got to starting off.
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You've got to drill that into your customers and be consistent.
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If I'm going to lose money, it's on me, because I told them $200 and now it's costing me $220 in labor and material to do it.
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Guess what?
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I'm not charging them the extra $20 because my word is my bond.
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If I say I'm going to do it for this, I'm going to do it for that.
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I love that about you.
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A lot of long nights doing that.
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But Cone Boss.
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So a lot of long nights doing that.
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So, but big-ass fan job and here's where it takes a twist.
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And clay knows what I'm talking about.
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So I got a job, we killed it.
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Um, they internally have big-ass fans, have a, have a company meeting within the you know the directors and the project managers, coordinators, things like that about every six months and they go over the pluses and minuses and the goods and bads of all of their installers in every region and things like that.
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And my buddy, chris, was in that meeting but he was kind of in the back and he had to kind of keep it zip, but he was texting me while it was going on.
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He was like hey, we're in a meeting right now.
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We're talking about installers.
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And one of the other guys just happened to look at the numbers and he literally said hey, why is Page Electric only had one job?
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And one of the coordinators, like I, gave him a job, and and then Chris spoke up and said no, you didn't give him a job, I gave him the only job on this list.
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And so what happened was is all the coordinators were, they all had their installer, which was the previous guy.
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So they were all like just giving it to that installer.
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There's multiple coordinators were.
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They all had their installer, which was the previous guy.
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So they were all like just giving it to that installer.
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There's multiple coordinators.
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They were giving their jobs to that installer because they're like, oh, the other coordinator will give Paige a job.
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So they all thought someone else was giving me a job and no one was giving me a job.
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Well, luckily this meeting happened and the guy that was in charge that found the numbers.
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He's the numbers guy.
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His name's Brian.
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I don't know if he's still there or not, but Brian said hey.
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He said in six months we're going to have this meeting again.
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He said Paige, better have 50% of all the jobs in their area.
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Let them hang themselves if they're no good and let them strive if they're great.
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He said let them fail, let them succeed.
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You don't make that decision for them.
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And literally from August of that first year to the next six months.
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So there's platinum installer and then there's just gold installer.
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Platinum gets every job that they have in your district, your region, your state, whatever.
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They have it set up as the installer right below them, the gold installer.
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They get anything that the platinum installer says no to or anything that the scheduling just doesn't permit, and just go ahead and give it to the next guy that we don't have to worry about.
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So in six months we took over platinum status from the other installers and in one year we never once said no to a job from them, never once.
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Like we didn't turn down any job If they said hey, we got a job for you.
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Yes, sir, no problem, let me get it scheduled.
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Period that literally has to be like the ultimate valve.
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Can you imagine being the other guy for a second where you're like I have a complete monopoly, I can charge whatever I want, I don't have to do it on time, and then suddenly this new company comes in, not only takes 50% of the leads but does such a good job in their customer service that now, within one year, they only take your spot and refuse to pass any jobs down.
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So the valve is completely shut.
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It's insane how people literally hang themselves, trying to just skirt by doing the minimum, when they would have thrived just choosing a little extra further.
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This is a huge point I got to jump into, and first, I think it's only right that we thank Brian.
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So, brian, if you're listening, page Electric loves you.
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Thanks, brother, for doing the right thing and sharing the workload.
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That said, though, how many people are listening that had a door open?
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Maybe it's just a crack and maybe didn't have this clarity at the upper level.
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Who is your Brian in that strategic alliance that you're trying to break wide open and have the shot to prove?
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But also, the other side of this is the fact that, like Joe touched on and I'm going to hit it again you did not act in complacency on that either.
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You took full advantage by showing up, and there's a deeper truth here.
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That is just understanding what your counterpart in this arrangement requires.
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What is their weakness?
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How do you improve so that it's a mutual benefit?
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And I think we'll continue going down this path and understanding just how big of a benefit that's become to you guys.
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Yeah, we've been named their platinum installer for the past four years.
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So how much revenue per year, would you say on average, comes from this one arrangement?
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Last year alone was three quarter of a million dollars.
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See, that's not small.
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No, not at all.
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Last year alone was $750,000.
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Now do you want to know what our margin is on jobs like that?
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Absolutely, because that's a big factor of it 73%.
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Gross profit margin.
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Gross profit margin Nicely done and we provide some material, like angle iron.
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There's some hardware, some certain things we have to provide.
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Most of our work is traveling angle.
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You know a little bit of material at labor, traveling labor and being there when they need it done.
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So, like right now, my big ass fan crew.
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It's usually a two-man crew and we can separate them.
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They both have a vehicle so we can hit smaller.
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You know, one day, two-day jobs individually.
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I put four guys on it Right now.
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I got my one van with a helper, another van with a helper, so they're all four guys.
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They're doing 28 fans.
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They have to be done by the end of the month.
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They actually just called in a minute ago, while we're on the phone, I went in and buzzed them over it because they know what I've got going on.
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But they have a 28-fan job.
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They started on the 13th See today's, the 18th.
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Today's my father's birthday.
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Happy birthday Dad.
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Happy birthday Dad.
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They've been working on it for five days straight.
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They will be done on the 23rd.
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They do not have to go all the way to the 31st.
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They've been killing it.
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How many fans again, Sari 28 fans in seven different buildings, seven different locations, which means I have to coordinate seven different scissor lifts, seven different moves, seven different fan openings and closings, but 28 fan total, and they all have to be done by the end of the month because they're all inside of an amazon so these are all amazon jobs would you mind if I ask you a question on that, because I think that's actually something that a lot of people would want to know.
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As far as the technical aspect.
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I actually really enjoyed installing big ass fans, because they are a phenomenally built product and, though they have a ton of control boards inside of them, they truly are like it.
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It's.
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Casablanca used to be the best and now this is absolutely blown out of the water.
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But one of the biggest concerns that people run into is how to physically do the lift.
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Obviously, people can use scaffolding, you can use your laddering, but they are heavy and substantial when you have your long down rods.
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So have you invested in interior scissor lifts that can be mobilized in the home?
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Not in a home.
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We have a 21 foot.
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It's a little giant skyscraper that we use for any big ass fans that are essence or below.
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We typically don't do their third larger industrial that way, but anything Essence or below.
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I got a 20-foot 1-foot ladder and a strong back that says I can get it up to the top of that ladder Okay fair enough.
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So their smaller industrial fans are about 260 pounds.
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They're not lightweight.
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We actually have scissor lifts.