Jan. 11, 2024
Ep 238- Million $$$ Start-up Series 2024 - How to Choose Your Weapon (Vehicle)
Join Joseph and me as we unveil the secrets to launching a successful electrical business. From leveraging resources to navigating competition, our episode is packed with personal stories and practical advice for electricians at any career stage. Whether you're seasoned or just starting, our insights will illuminate the path to entrepreneurial success.
In the second half, we delve into the importance of choosing the right business vehicle. Explore the efficiency revolution with Sprinter vans, navigate the image projection of minivans, and tackle the complexities of diesel, gas, and electric options. We also guide you through the financial decision of leasing versus buying, providing insights into how each choice impacts your brand, budget, and long-term success. Stay tuned for future episodes with tips to supercharge your electric business to the million-dollar milestone. Your journey as an Electricpreneur begins now, and we're here to support every volt of the way.
Join us LIVE 5 days a week on the Facebook Community page:
https://www.facebook.com/groups/electricpreneursecrets
And see us and our stories and wins at:
https://www.serviceloopelectrical.com
00:00 - Choose the Right Business Vehicle
08:57 - Choosing Premium Service Business Vehicle
14:43 - Comparing Diesel, Gas, and Electric Vehicles
25:54 - Lease vs Buy a New Vehicle
33:55 - Million Dollar Startup and Printer Secrets
WEBVTT
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Hello, hello, hello and welcome back to yet another episode of Electric Prenu Secrets, episode 238,.
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We're seven or eight episodes into this million dollar launch series and today is a huge one.
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If you've been wondering why we haven't chosen our weapon yet, what vehicle we're running, we've been bootstrapping this thing and we've managed to make some sales at this point just using whatever vehicle we had.
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I'm your host, clay Neumeier.
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With me is always my esteemed co-host, joseph Lucani.
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We are the Electric Prenuers, just a couple of master electricians with business addictions here to provide you with another freemium daily coach call.
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We're on a mission to get behind you know what?
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25,000 windshields this year.
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So if you know someone who needs to hear this, please pass that message on.
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Leave a review where you found it first and you know what?
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Sit back, enjoy and take everything we give.
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Just promise that you'll take action and report your wins back to us.
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Joe, how are you doing today, my brother?
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Man, there are some days that are better than others, but today is going to be a good one.
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I've got a very, very strong cup of coffee next to me.
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We had a great class this morning.
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I feel inspired because of all the lessons that came up in our classes.
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I love working with you on the daily.
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All I can say is I'm blessed, man.
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I'm feeling blessed today.
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What about you?
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How are you holding that?
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I?
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love that.
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Yeah, feeling the same.
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In fact earlier when we were on a meeting, I was thinking to myself it'd be kind of cool to do an episode one day that just kind of is like a day in the life of Joe, like follow you through the actual what you're doing day to day, because so many people I think they get the mission, they get the vision that we're on trying to rise the tide for this industry and really defeat this rat race once and for all.
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And I mean this series helping new electric printers get established and begin in really what we believe are like the building blocks of a business.
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I mean when electrician, doesn't start a business and go do residential service for someone.
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I mean, we were actually talking about this earlier and it's funny because we're like how did you just start off in commercial?
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Like you know what?
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I'm going to leave my company assuming you don't have any ends or contacts what are you going to?
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Go knock on somewhere else's door?
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Hey, you're looking for a real lamp project that you're looking a little bit on your guy.
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It's like residential, I can knock on every door and get a long lifetime.
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Valued customer.
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Why not?
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start residential service.
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Yeah, I think I see a lot of people kind of start with the GCs, start in an honestly an unfavorable position and we'll be careful not to go down this rabbit hole entirely.
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Today.
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Unfavorable meaning like, at a rate they felt was fair, based on this low rat race price that it's already existing in the market from the moonlighters and the people running around charging $100 an hour or less time of material fighting for every penny, fighting to get paid.
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I mean, the problem is evident, man, and I'm just so glad to be here standing against it.
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So my thought that started all this again was like how do we do that?
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It would be cool to kind of show little background.
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I mean you were talking about earlier even how every day starts with our options, blitz, post, exactly.
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Most people don't actually know about this stuff and it would be cool to explore that with you.
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So maybe a future series or show or two.
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Yeah, it's a long one, I don't know, man, I don't know, but we digress this series.
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Rather, this episode had to give you the chicken skin a little bit.
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Did we not make you think of your first vehicle coming into your business?
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Yeah, it's funny because everyone has this story about their first death machine, but ours was actually a death machine where Nickname was Big Bertha.
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She was this 14 foot old FedEx truck that didn't have a working odometer, it didn't have seats, it didn't have seatbelts, it didn't have heat, it didn't have AC.
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It had nothing.
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It had nothing in it.
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We literally had to get Honda Civic seats from the dump, put them together with strut and 2x4s, bolt them to the floor and build a chassis frame, put the seats on top but get seatbelts from another vehicle, put those in.
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But we were broke and we wanted to serve and it was what we could afford.
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So for anyone who's going through and saying like I don't have money to make it work, coming from someone who had literally no money, you can always make something work if you're willing to either invest time or money into it.
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There's always something to invest.
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You just invest what you have available time.
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So that's what I put into it.
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I love that and a really powerful message there.
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It is kind of time or money right, and and I sort of learned that the other way, coming up through the trade to I remember a consultant saying to me Listen, clayton, you've got either money or you've got time.
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You never have both.
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So it's like you get time off but then you're out of money.
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Mm-hmm, you got a bunch of money but you got no time off.
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So I can relate to that specifically and I can remember the first vehicle that I was doing electrical work in and it was like a 93 Chevy extended cab that I put a body, lift in like rusted out rocker panels and exhaust on it, like, of course, as a young man, you prioritize lift tires and exhaust over safety of a vehicle.
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Of course that's kind of what I was driving around doing a couple jobs and yeah, so it's funny to reflect on that.
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But in this series now, with where we're headed, I mean we're starting to make sales and I understand you were in big Bertha for a while, but now going forward, if you had to do it again, remember we've solved some problems that you didn't quite have the the Understanding or the support to do back then, hence why we're here.
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So now our pricing's right, we're making network sales.
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We've got our organic marketing fired up.
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People are starting to call there's.
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We're building a demand here at this point.
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This is got to be one of the next upgrades.
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Would you agree with that?
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Yeah, and if I can put a pin in that, it's that you can get a cheap van but and it will run and it will work.
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But what you're trading is the reliability, because you know that it's not if it will break, it's when it will break and, depending on how old and how shady the van is, it's either going to go to the shop for a week or it's gonna go there and that's its final resting place.
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So the thought you have to keep in mind is yes, you can start with a very low income, very low cost van, but you have to also take the risk that if you have starting to get consistent jobs and you're realizing you're starting to sell yourself out five jobs a week, ten jobs a week If you, if your van breaks, those jobs either have to be refunded or rescheduled, and when you don't have a ton of time you could be rescheduling someone out a month and that's how jobs get lost just because your van wasn't working 100%, especially with something like engine or transmission troubles.
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Yeah, just because those fixes are not immediate Keep in mind I'm short-handed in mechanic trades too, quite often in your areas.
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So there could be a schedule, a delay right.
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So, valid point the maintenance factor, the dependability factor.
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I know I've got some great suggestions for this show, but you also kind of jumped right into the van and I'm wondering about that because I know a lot of people, including myself, really feel the pull for a truck and I can explain you might be thinking well, you know, I'm gonna do projects to, or I'm gonna do other things and trucks are more Utility, right for your personal life and for your family and for your recreation, but is that, is that a trap that you would fall in again, joe?
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I would.
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I'm gonna swear by the van.
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I'm gonna say I would go van every single time.
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And there's specific reasons why.
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Actually two distinct reasons, if you don't mind putting it in, of course.
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One is that I personally believe that the image in what you show up in Communicates what you'll be doing for the customer and, I can say, being guilty.
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I had shown up in my own person of vehicle at times, like there were times when I would show I had a blue Honda Civic and I would show up because big birthday would die and we'd have to go put her into the shop somewhere and I'd have my entire back cab loaded up with stuff and rolling up.
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It's a very different image, but the thing is is that if you want to understand that your first sale, the first sale that really happens, is when they see you pull into the driveway and they think to themselves Does this match the image of who I want in my home?
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So first is the image that you're gonna go with a van usually implies services being done today, whereas a lot of times with a truck, it's not that it can't be, but there's a lot of extra effort that usually goes into it.
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See, there, you have the cab that's completely loaded up, where you've got to do the outside build-outs, or even if you need to get tools, you're crawling in the back.
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You're not walking comfortably.
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So that's the first thing there.
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The second comes down to it.
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If you're genuinely trying to work out of a truck, it's a little harder to do than working out of a van.
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So we've worked in all different kinds.
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I've had transits, I've had sprinters, we've had different styles of vans, but I found I really liked working with sprinters because when it's snowing or it's raining, I could walk into it, the back, I could literally walk in, and you can build shelves from the floor to the ceiling and the amount of stuff that you could fit in.
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You become having a mobile workshop on wheels compared to having I've just got a cardboard box full of parts that I expected it to take.
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So you can come up far more prepared and you can work far more comfortably than if you could with a truck.
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Yep, I agree with that.
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And so just to be clear, a minivan wouldn't quite do it here, and I can explain why.
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Okay, so I actually knew or worked with multiple different electricians that show up in minivans and a lot of them would swear by it and they'd be like, well, this is great on gas and this is comfortable and I can drive it on my own time.
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Like there was one guy who we worked with who loved to fish and he had like this minivan and he gutted all the back seats and he was like well, I've got my fishing poles on the top and I've got my fishing gear on the right and on the left of my van, I've got all.
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And the problem was, is a minivan communicates exactly that A work vehicle should be used for work and should be solely dedicated to the most efficient and productive style of work, both an image, both an effectiveness, both a material storage.
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But when you show up in the truck, when you show up in the minivan, you're also communicating that this isn't your primary occupation with it.
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Because would you fully letter your minivan, would it still have the same image showing up in a Honda Odyssey?
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It really wouldn't.
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But if I show up in the truck, I 100% see the difference.
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The minivan just does not have the same working appeal.
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And granted, I'm biased as an electrician, but in any trade someone who comes over in a minivan or something that's kind of more casual than work just has that appeal.
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And keep in mind, this work is.
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This is another identity that we're staging up here.
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We're building up a whole other identity that gets to live through us.
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But that other identity needs to be work focused and service focused.
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And if it doesn't give a homeowner the impression of that service focus, then it's always going to fall short of your premium appeal 100%, and I would say that also, there are some that are gonna argue that you could use this for other things, like I'm gonna make a business investment, but I'm gonna do this with my family with it, or but I'm gonna tow my boat, but okay, that's well and good.
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Is this a lifestyle business?
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Or is this a premium service business?
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Because what you show up in is also gonna communicate to the client what you have.
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If it looks like this is something that you're using to tow the RV and you happen to use it for work, it's very different than this is primarily used for work, oh, and I have a lift onto it that I can use other things for 100%, and where we're going is a deeper well of even further niches, like generators, like you've mentioned, and further decals or decals, as some listeners might say right and further investment into that premium service.
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So, for me, what you said about lifestyle versus business, I'm trying to build a premium service business that actually improves my lifestyle, so much so that I'm going to afford another vehicle.
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So, for me, I feel like part of the challenge here is and it's an eight in humans really to try to do too much with one thing right, and this happens all over life.
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You ever go to shop for a boat.
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Well, you start to realize pretty quickly wow, there's different kinds of boats for different purposes and you've got to decide.
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There is no one boat suits all, just like there's no one van suits all.
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There's no one truck suits all.
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There's no one vehicle suits all.
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So why don't we focus on establishing a business that provides for us in a way that we can have the lifestyle we want without sacrificing in front of any customers?
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I would agree with you on sacrificing customers in general.
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I want to throw a disclaimer in.
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Can I do that?
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Do a hard show do what you want.
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If you're like me and in my past, for many jobs I was doing, we're kind of off-road or in the country.
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Maybe you have a remote cabin and you're servicing the people around a lake, right.
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There's different, very subnich areas where you might decide that four-wheel drive is really important.
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Now, I understand there's four-wheel drive vans, but in some cases, hey, maybe the truck is a good fit.
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Just know what you're sacrificing there and know that an in town, in an urban area, premium service provider, you're going to be following Joe's advice this van, full wrap, lots of color, no white right, no white van scam, as we've talked about before, making sure that that right message, that right brand is there for all to see.
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Now I recognize we're getting almost 15 minutes into this one already, but we've still got some important things to cover.
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Joe, what do you say you into going a little long here today?
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I'm down for it.
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I think this is one of those topics that people are really scratching their heads on, and it's such a big investment for a new company that it's worth making the right decision.
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So knock it off, man, I'm ready to go Before we get into the investments, and maybe what that looks like.
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You did mention maintenance before, and that makes me think about diesel.
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Yeah, I mean, I think how that could be more expensive too, and maybe a fuel type, or I know you've got some thoughts on that too.
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So why don't you share away my brother?
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Sure, okay.
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So I've purchased both diesel and gas vans and I can say that there's pro and cons for both and it really comes down to what your main priority is.
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So if your goal is strictly convenience, then gasoline is gonna be the way to go.
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The reason being is that gas like straight up just petrol gas mechanics are far more common than diesel mechanics.
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In addition to it, every gas station has a regular.
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Not every gas station has diesel.
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So there's two factors.
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One is that can I fuel up wherever I go, and maybe that's not a huge concern in some other areas.
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But if it breaks, who am I taking it to?
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I personally like diesel, but there was two things that were wrong with it.
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One was that it was very hard to maintain.
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And two, remember I told you, in our area, the lowest I've ever seen is negative 30.
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So it's cold in the Hudson Valley, but the fact is is that when you have diesel, you now need to ensure that either it's inside or that the glow rods inside the engine are physically maintained, Because otherwise I've had to put space heaters in the front engine and make sure that you have an extension cord off into a plug and try to start this thing and let it run the engine warm because it just doesn't want to start because the glow rods aren't physically kicking up, Whereas with a gas engine you wouldn't have that problem.
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So, realistically it comes down to, diesel is always going to be harder to maintain, it is going to be harder to access, but the trade-off to diesel is that it's a far more reliable engine.
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If you showed up with a 300,000 mile engine in diesel, you could look at that and be like, yeah, this thing still got life in it.
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If you showed up with a 300,000 mile gas truck or gas van, you're amazed this thing even survived at this point, right.
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Yeah, for sure.
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I'm going to comment on that a little bit and I'm going to add something.
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So, being that I live in the cold north, we have something installed called block heaters, yep, and it literally screws into your block and plugs in, and most new vehicles come with that.
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Pretty strong likelihood, if you live in a cold area and you're buying a diesel, that these days that would be included.
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Understand you're also reflecting on an older vehicle, but I myself have had to use different propane torches under vehicles, all sorts of shit, to try to warm one up so that, yeah, exactly the glow plugs and everything can work, and even just the viscosity of that oil allowing an engine to crank, or the batteries.
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There's a lot too, starting a cold vehicle.
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The other piece was that there is, I've found at least, a mileage difference.
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A lot of times, especially in new age diesels, you go a lot further.
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I bought a diesel truck, currently with a six cylinder Duramax in it, chevy, that I'm getting a thousand kilometers of tank, which roughly 800 miles of freaking tank over this thing, which is going to be exceptional compared to a gas for the same, you know, maybe 30 gallon tank kind of thing.
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Now, that said, your resale value.
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If you ever want to resell this thing, the resale value is going to be held a bit higher in a diesel, from my experience, than a gas.
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But again, it's going to last the test of time and still have a value, even with, you know, a couple hundred thousand miles on it.
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So really important stuff there.
00:18:34.288 --> 00:18:38.431
Now, quickly, what do you think about some of the newer electric fans, joe?
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I like them for concept purposes, and the reason being is this let's say you decide to niche into electric vehicles.
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Like you are an EV specialist, I think it would be an incredible marketing piece for you to show up in an electric vehicle.
00:18:55.759 --> 00:18:58.058
So that's first and foremost.
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Yeah, so if you that's your niche, it would be a great marketing investment to do so.
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Product market fit Exactly the next thing.
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With electric vehicles, it really comes down to what kind of area you're going to be in and what kind of commute time you're going to be working in.
00:19:12.519 --> 00:19:26.777
Because if you were to be fully lettered and wrapped and you go to the charging stations to now charge it, you're now advertising to everyone who's in that area that you also have this availability Now because it's a new technology.
00:19:26.777 --> 00:19:27.359
Obviously they cost more.
00:19:27.359 --> 00:19:33.259
It's not like you can go find a 10 year old EV truck when they only just came out a few years ago.
00:19:33.279 --> 00:19:41.180
Yeah, so from a price standpoint, you would either have to have the means of leasing it, buying it, renting it.
00:19:41.180 --> 00:19:43.440
Renting is not really enough when you run the business.
00:19:43.440 --> 00:19:50.530
So it's either can you lease a new one or lease it, or lease a used one, or can you purchase one that's aftermarket.
00:19:50.530 --> 00:19:58.619
So for a bootstrap operation you'd have to have the means of lines of credit in order to afford it or have a strong nest egg.
00:19:58.619 --> 00:20:03.464
So for a bootstrap operation you'd have to have the means of leasing it, unless you had deeper pockets.
00:20:03.464 --> 00:20:10.911
I wouldn't recommend it for the first start, but if for a long-term vision, for a targeted market approach, I think it could be very effective.
00:20:12.878 --> 00:20:15.808
Yep, and now that we're into that, I'm going to leave the EV where it sits.
00:20:15.808 --> 00:20:32.092
I mean, my personal opinion on EV is I'm not bought into the whole process, and the process I'm talking about is more the circular economy of it, just because I know some background and I just about said black ground because of the black mass that comes from the batteries.
00:20:32.092 --> 00:20:41.387
That actually takes an incredible process to then recirculate and reuse into batteries, like the recycling process is not where it needs to be.
00:20:41.387 --> 00:20:50.520
We're creating a massive problem still with EVs and, of course, when it gets cold you lose a lot of your mileage from heat requirements, et cetera.
00:20:50.520 --> 00:21:00.728
That said, you tied us perfectly into this buy versus rent versus lease conversation and I'm happy to kick this one off, if that's all right.
00:21:00.728 --> 00:21:02.023
I don't mean to go for it.
00:21:02.023 --> 00:21:16.086
I personally feel that if we're starting this company which we are alive, right this is a real debate you guys get to hear at first, joe and I will make a decision about what vehicle and how we're going to accomplish that.
00:21:18.500 --> 00:21:37.146
There is a company that I've used several times in Canada and they're called Driving Force, and because they exist here, I'm usually have a feeling that they exist or a similar service exists down south of the border because they have a powerful market differentiator and that is unlike the main three.
00:21:37.207 --> 00:21:47.471
Like Chev, ford, dodge, they don't lock you into a low mile lease with a bunch of restrictions that cause you to have big payouts in the end.
00:21:47.471 --> 00:21:54.821
What they do is uniquely they actually wrap all that stuff in and allow you, even encourage, they even help me.
00:21:54.821 --> 00:22:01.186
Every time I bought a truck with them or released a truck from them, they would take it to the mechanic shop and put a lift in it.
00:22:01.186 --> 00:22:03.704
If I wanted, they would get the shelves put in.
00:22:03.704 --> 00:22:14.948
They would do all of that for me, so that what I got to do is just arrive and actually use the vehicle, like take it to work that day.
00:22:14.948 --> 00:22:24.226
And so by taking all of that off of our plate, we were able to be most effective and get a brand new van, truck etc.
00:22:24.226 --> 00:22:26.191
For a locked in lease payment.
00:22:26.191 --> 00:22:30.724
But there's a couple other advantages here, if I may, I don't mean some interesting.
00:22:31.779 --> 00:22:32.462
Soft credit check.
00:22:32.462 --> 00:22:41.048
We didn't report monthly, and so what that means is it didn't affect my debt to income ratio.
00:22:41.048 --> 00:22:54.691
So it actually gave me an upper hand in a credit standing because I was making an eight to $1,200 payment for my new truck a month, but the bank couldn't see it.
00:22:54.691 --> 00:23:08.085
So when I'd go back to the bank they couldn't see that I was leasing this vehicle, meaning it wasn't impacting again that debt to income ratio, so you could leverage your credit harder.
00:23:08.145 --> 00:23:08.907
I like that a lot.
00:23:08.907 --> 00:23:11.887
That's actually a really big advantage, especially when you have almost no money.
00:23:13.442 --> 00:23:14.866
Furthermore, in Canada.
00:23:14.866 --> 00:23:21.027
What it means is versus financing a vehicle outright, where they would calculate all sales tax ahead of time.
00:23:21.027 --> 00:23:30.808
In a lease situation the sales tax was based on the amount of the payment every month and that was an entire write off anyway.
00:23:30.808 --> 00:23:46.549
So I was actually financing a smaller portion of the vehicle with a buyout option somewhere in three to five years that we already programmed based on the amount of mileage we assumed we would have on the vehicle and the value of that vehicle at that point.
00:23:46.549 --> 00:23:49.867
So all other things felt like ownership.
00:23:49.867 --> 00:23:53.410
They just wanted proof of insurance so they knew they were never in a bad spot.
00:23:53.410 --> 00:23:59.586
It didn't affect debt to income ratio and it was a better tax position for us.
00:23:59.586 --> 00:24:07.586
That plus the convenience they were premium service providers, having the wrap done, having my tools and everything loaded in it for me.
00:24:07.586 --> 00:24:10.727
To me it was like I don't need to go anywhere else.
00:24:12.460 --> 00:24:16.790
I'm pretty impressed because, in all honesty, my brain does two things here.
00:24:16.790 --> 00:24:22.846
It's like, okay, so you've got a convenience factor, we've leased it, so it's a lower monthly payment.
00:24:22.846 --> 00:24:25.507
We've had shelves that are built into it.
00:24:25.507 --> 00:24:32.573
We've had situations where now it's being depreciated and then purchasing at a depreciated price.
00:24:32.573 --> 00:24:35.440
So all these things sound good.
00:24:35.440 --> 00:24:42.664
The only thing that really throws me on it is that when I first started in my vans, we built shelves.
00:24:42.664 --> 00:24:44.085
We didn't buy shelves.
00:24:44.085 --> 00:24:47.068
We didn't have boxes like you know, like the little plastic tins.
00:24:47.068 --> 00:24:51.369
We had boxes from Home Depot, cardboard boxes for our stuff.
00:24:51.369 --> 00:24:55.568
So I guess it really comes down to how low is the budget.
00:24:55.568 --> 00:25:13.186
If you had the means of doing an $800 to $1,000 payment, what you're suggesting is 100%, I think, the way to go, provided that there's not like a huge damage clause, like if you were like, hey, I got hit, someone T-boned me from the side, now I'm out because it's not under their coverage.
00:25:13.186 --> 00:25:17.907
But provided there's no sticky fine print and we can afford it, I'd like your way.
00:25:20.400 --> 00:25:29.392
If that service provider agreed to increase the price based on the shelves and stuff that they would just install, and it would be an extra 75 bucks on our monthly payment.
00:25:29.392 --> 00:25:30.625
What would you say then, brother?
00:25:31.521 --> 00:25:33.247
Oh, you're using my own words, then I love it yeah.
00:25:34.902 --> 00:25:36.239
It's like what would happen then if we were to have that done.
00:25:36.239 --> 00:25:44.477
Joe, for $75 a month, you don't have to take the time working and building shelves in the cold, but maybe you do like building shelves in the show, you sure?
00:25:44.477 --> 00:25:45.059
But so yeah.
00:25:45.059 --> 00:25:53.651
So the fact is is, yes, if we could do it where everything's preassembled and we had the means of funding it, then I would say that the leasing of this van would be far better.
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