March 18, 2024
Ep 285 - Replay - Million $$$ Electrical Biz Launch '24 - Pricing & Prospecting
Ever wondered how to strike the perfect balance between profitability and professionalism in your electrical business? This episode with me, Clay, and my co-host Joseph, presents the blueprint for setting up your electric entrepreneurial journey with a bang! We're peeling back the layers on pricing strategies that honor your worth and expertise, ensuring you're not just another number in the industry. Our firsthand stories will guide you through the maze of establishing a pricing structure that speaks volumes about your value proposition. And because we know cash flow is king, we don't just preach - we equip you with a free tool to kickstart your finances and keep the engine running smoothly.
But it's not just about the dollars and cents; it's the connections that count. Step into our world of effective prospecting and networking, where relationships are the currency of choice. We'll show you how to navigate the homeowner market with finesse, planting seeds with every handshake and conversation that blossom into a thriving referral network. It's more than just work; it's about crafting a legacy of quality services that keeps clients coming back for more. Join us as we lay out the foundations for a business that's not just successful but significant, where every interaction is an investment in your future success. With practical advice and tried-and-true methods, we're turning the spotlight on what it really takes to power up your electrical business.
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.servicebyelectricians.com
00:01 - Starting a New Electrical Biz
14:04 - Prospecting for Homeowners and Building Relationships
WEBVTT
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Hello, hello, hello and welcome back to another episode of Electricpreneur Secrets, the Electricians podcast.
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And we're back with another episode in this series of how we would start a new electrical biz in 2024.
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But today's episode around well, pricing and prospecting.
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I'm your host, clay Neumeyer.
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With me, as always, my esteemed co-host, joseph Lucchani.
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We're the Electricpreneurs and a couple of master electricians with business addictions.
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Welcome to your freemium daily coach.
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Call the admission cost for you.
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Sit back, you know, loan us your time, loan us your attention and promise to take everything here and take action.
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Report those wins back to us, as we are so pleased to keep showing up to help you launch this business with this new launch series.
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Joseph, how are you doing today, brother?
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Dude, I'm feeling amazing and you know something you said I just wanted to touch on before going into anything else, because I feel like you started right out of the gate with something which was loan us your attention.
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What loan could you get anywhere else?
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That's going to give you a 10x plus result.
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That's nice.
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The words just came out.
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Man, I don't know there's a calling to say what I say every time it's not recorded.
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The only fancy shit is this banner down here, which sometimes has important messages like new launch series or otherwise, no, I compliment you on picking that one out.
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That is nice, I like that.
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Nice, how are you holding up today?
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I'm doing fantastic man.
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That might be partially due to my number one coach cup full of fresh caffeine over here warming me up today.
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And you, how are you doing?
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What's going on?
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Honestly, I'm feeling blessed, you know, every single day that goes by.
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It's not that these are easy Like life isn't easy but I'm choosing to approach it from a place of saying there is a plan and I'm doing everything that I can to line up with that and I'm doing everything I can to serve the best of my ability.
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And if I can just do that, everything else will fall into place.
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Serve and thrive.
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Serve and thrive.
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Nice touch, man.
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Nice touch, speaking of which, assuming you're an electricpreneur following this series, the new launch series, and you heard all the episodes before.
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Then you heard us talking about that consistent activity and maybe some of the grace you just shared might be important.
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I don't know, it's too early to say you didn't get the 75E heart.
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You can grab that.
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But we're going to have another value piece giveaway today that's also going to be attached to this super assembly this micro course.
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Really, it's a mini course for how we would and how you should, in our opinion, start an electrical biz in 2024.
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I think this thing's going to be a huge value piece for everyone listening.
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So, if you got anything from the price tool that we'll discuss today, go ahead and throw a comment up.
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If you're engaging with us, live in the Facebook group and or you're listening to it at your favorite podcast channel we're everywhere, man.
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Just reach out and let us know so we can send this tool to you.
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Sounds good, ready to go?
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That said, that said, man, we talked about last episode really getting to this place, this structure.
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That was hard to pull apart, but we stayed true to our cause here, our mission, which is to get you, the electricpreneur, or us in this business.
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We're defining and developing here a sale.
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Mm-hmm.
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Like two cash.
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Let's get it to cash and let's get it sustainable.
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Of course, we just had a laugh back beyond this episode and in the backstage, if you will, because in 2024, there's an incredible asset available that we just didn't have prior to this.
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Yes.
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It's this, it's service superelectical and it's this pricing guide that we're literally going to give you for free and that's going to help you out today.
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Here's why pricing is so important now, so important I have personally found when starting a new business remember my first business when I was 18 was like literally, oh, I'm going to sell concrete door to door Intel.
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Someone wants what a price.
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And you're like, oh yeah, somehow I completely forgot that I've got to make an estimate for what this work will cost so that they can even buy it.
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And as surprising as that is, I think a lot of people actually still encounter this in the infancy of a business.
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It's like, oh yeah, how much is that?
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Well, I could do it for $45 an hour.
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It breaks my heart.
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It really really does, because when you think about it, what that communicates to the client is either A you're not experienced, because you don't know what this thing should cost.
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B you're not established because you don't have a set rate for what things are going to cost.
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And three, it shows that you didn't intend on actually serving them today.
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Because if you couldn't even come up with a number, what were you planning on doing today?
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Valuable insights.
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So the next question is well like, if I'm new, how do I know how much stuff costs?
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You already have spoken to an accountant, mind you.
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You've already spoken to a lawyer.
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All these people have their little expenses attached.
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You're already running a tally bootstrap or not?
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We might be in the hole about five grand at this point.
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Very likely Might need to get some cash coming in Tute sweet as we say up here in Canada right, a little French for you, meaning right now, do not delay.
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We need to make some sales and that's why this is where we're at.
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So we need to be able to project some of the costs, and I actually have to revisit something we already began to unpack.
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Joe, if that's all right, please by all means go for it.
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Do you remember the other day when we talked about how, like I, really want to encourage people, even if you're a sole proprietor, to pay yourself first?
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Oh my God, yeah.
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Have you ever heard of financial advice or read a money book that didn't say these magic words pay yourself first.
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Personally, I haven't experienced that from any credible source.
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Just because the thing is, people seem to forget that they're in business to pay themselves.
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Like, yes, you're here to serve a cause, but if you don't even account for taking money at the end to pay for your expenses or your business or your family's needs, why are you getting up in the morning and doing this?
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Is this a charitable donation?
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Every day?
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Valid, it's valid man.
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So I want you, I want to challenge you, to look into, and as per our pricing tool, first and foremost your personal salary requirements.
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How much do I need to earn and not just a burden of like here's all my expenses, month to month, because we want to go beyond that.
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I don't want you to have just a life where there's more month at the end of the money, the money at the end of the month.
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I want you to have.
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The life Begs a question what's the life?
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What's the life that you want?
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And that life has a minimum budget and we want to pay you that budget so that you can have that life.
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Or what's the point of this business?
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Even?
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Am I wrong here?
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No, I don't think you're wrong.
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I think that unfortunately and this happens in a lot of ways in our upbringing those of us that were coming up in a scenario where we didn't have a lot of money money becomes an uncomfortable conversation topic, and then something that's uncomfortable is often worked around, when people will say well, I can't really discuss my finances with others, and without that there's no one giving outside input, which means the box always stares with a narrow view.
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So the first thing we have to overcome is our ability of being willing to talk about money.
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If that doesn't get addressed, nothing else can follow after that 100%, man, 100%.
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And we're getting so close to the planning aspect of this, but still with the sale in mind.
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Really, a lot of this really needs to be brought back to reality, even with a bit of like a three to five year plan, and the reason I say that is, if you're feeling compelled right now to pay yourself $250,000 out of the gate, well, I challenge that as well.
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Expenses plus savings, plus nest egg, and then highlight the areas of my life that are inadequate to where I feel I should be today.
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That might lead you to 80 to 100 to 120 K to start, and that's okay In some cases, and maybe in the future, when you're listening to this, with inflation and given your circumstances, maybe that number is 150 K.
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What I really want to urge you to do here is define the difference between needs and wants.
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Right, where are we?
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Okay, what do we need as a family?
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Where is that line?
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And then make a plan out from need to want.
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Think of it like a sliding scale, right, because you don't want to suffocate your business either.
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But either way, whatever that need is today, with the investments and the savings, nest egg, right, you need to charge that, you need to factor that into your price, because if you don't get paid that, how is this business going to survive?
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It's just not.
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That's the only problem.
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You run into these situations where you don't invest the right things or you overdraw from what you don't have and you can't take what you don't have because that just leans to the loaning 100%.
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So, just as a quick guide again, you guys can get our value piece.
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It's going to walk you through all this, but establishing that personal salary amount, then we're going to go into the cost of business.
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There's already some suggestions here, like some of the little basics that you've already uncovered and some of the things you still need to cover, like if you don't have your general liability insurance, you're bonding.
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Yet these all have little expenses that we need to accommodate and accomplish in your pricing, because if your customers don't pay for it, who is, unfortunately, you?
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That's the problem.
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Again.
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Instead of breaking this down entirely, what I'm going to suggest is you grab this value piece, because we've got a ton of suggested numbers in here.
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Now I will say everyone in our program is somewhere between 300 and $600 an hour roughly in and as a simple service rate which this exercise will help you get to.
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Have we said enough about pricing or do we need to keep going into any aspect of that?
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I would say the only thing that we need to touch further from this is that we need to make sure that people aren't afraid to charge what they need to charge, because that comes into it where.
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I'm sure when you said that we're between $300 to $600 an hour, people are probably shaking their boots like there's no way that will be justifiable in our area, and I just want to take a step back from that situation and say clarity.
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Actually, even better, seek clarity, not confidence, because you can be confident that no one is paying that in your area, but the clarity would reveal that the expenses that you need as a startup offset it enough to where the $100 to $150 an hour isn't sustainable even at your level, then what are the odds that anyone else is doing it at that level as well?
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It just cannot be done, because numbers won't lie to you.
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People may lie, numbers won't lie.
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So if your numbers are saying this is what you need to charge and you're not driving a Lamborghini or living outside your means, the odds are that the majority of the people in your area are either struggling and making no profit or they are charging that amount.
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You're just not exposed to it yet.
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I love that man.
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It's so important too and ultimately you're right, that had to be in this episode.
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If you have that price shock and granted we throw an arbitrary number, Take the price exercise challenge and find out what you need to charge based on the numbers you see for growth, for your burdens, for your business, for your future.
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Most people stick to the competitive 80 to $115 an hour time of material in their marketplace simply because they fear a price objection.
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They fear multiple price objections.
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That would amount to no work on the schedule.
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But let me ask you, worse of two evils a price objection or realizing at the end of the month you don't have enough money to pay your bills.
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You know there's nothing worse than winning a job that sinks you.
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Oh man.
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I know that you got a personal story with that, but it just comes down to the thought of saying I would rather have no money and no work than no money and a ton of work, Because the line is that if you're not making money on it, you're literally just moving things sideways.
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And I would rather get one call that actually pays than 10 calls that just move money sideways 100%.
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And the beautiful thing that's built right into this pricing exercise that we're giving away for free again, reach out, ask for the pricing tool is that we're giving this simple service rate, which is a whole other topic that we've got to break out in this next episode, I think, joe, to talk about the price book, the deficiency there, how that leaves people, you know, again looking for money at the end of the month, running out of time, with empty holes in the schedule, and that ties perfectly into the other part of this episode which we're going to rapid fire, this thing, prospecting 101.
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And, as a bootstrap mentality, quickest path to cash.
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I know you've got some ideas.
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I've got a huge teed up home run ready to smash out of the park that most people completely overlook, and how that could feed you for years into your business.
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You want first crack or second crack.
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I was going to say you've got my interest at this point.
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So I was going to say, if you've got a home run already lined up, who am I to say no to that?
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Okay, man, prospecting is the fundamental asset to a sale.
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You've got to have someone who's interested in your service.
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The great news is remember earlier on, when we decided that we were going to dedicate our electrical company to serving homeowners as a service provider.
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How many of us?
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know homeowners.
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I'm a homeowner.
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You're a homeowner.
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Our parents were home owners, our uncles a homeowner.
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Our brothers, sisters, our friends, the people we go to school with the people we went to school Everyone in your darn Rolodex is a homeowner, and if they're in your immediate area, then they deserve to know about your new endeavor, don't they?
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So this is kind of twofold, but what I'm going to do is for this parallel.
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We're going to abandon all talks of even social media.
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Right now.
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We're going to talk about boots on the ground, getting a sale with no fancy tricks.
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You don't need to know anything except the people you already know.
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That sound fair?
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Yeah, I'm with this Simple formula.
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I literally want you to go through the people you know.
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If you're using Facebook as an address book these days, that's fine.
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Use your phone and start touching base like five to 10 minute calls with every single person who owns a home I don't even care what age the home is with the simple intent to do just a few things.
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You ready for this?
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I'm ready.
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Lay it on me, brother.
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Hey, how's it going?
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It's been a while.
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How are things going for you?
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Hey, it's 2024 now.
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How was New Year's?
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And we could go back and forth.
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But very simple, small talk right.
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All leading to just a couple of things.
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Wow, that sounds great.
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It's great to hear you're doing great things.
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Any other big changes planned for you in 2024?
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What happens after they answer that question?
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I love that because you're setting up a.
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I'd be happy to help for that.
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Did you know that currently we're able to do this with it?
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It's like it literally puts it on the tee for you.
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I'm happy to help.
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Did you know?
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And or the other way it goes is reciprocation anyway.
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So it's a no threat way to spread your message, because they might say yeah, no, that's us.
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What about you?
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Big changes, what's going on for 2024?
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The best way to get asked the question you want is to ask it.
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And when they reciprocate that, what are you going to say?
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I believe it or not, I'd love to tell you I have an amazing thing that's going on in my life.
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I feel utterly blessed.
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Can I tell you about it?
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Awesome.
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Tell me about it, man.
00:16:35.604 --> 00:16:37.288
Tell me about service loop electrical.
00:16:37.288 --> 00:16:38.945
What do you guys do, oh?
00:16:38.985 --> 00:16:39.246
man.
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I almost feel like a role.
00:16:40.732 --> 00:16:53.763
I almost feel like a role plays coming, because the fact is that, even though I know you and I are having a script not a scripted, but like a fake conversation I'm so compelled, just by the dynamic of the conversation, to be like oh well, how are things going?
00:16:53.763 --> 00:16:57.441
You could almost feel this pull to be like you want to ask.
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I'd love to tell you.
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Now there's other pieces to this that are rooted in the why of what you're doing, in that vision, and, believe us, we're getting into this piece by piece, breaking it down and again there's parallels to this.
00:17:10.863 --> 00:17:14.093
But go back again to like Dorian's interview.
00:17:14.093 --> 00:17:26.275
We received a ton, a ton of positive feedback from Dorian's, rooting in the why and how he was able to just create interest in his community and someone that's actually just committed to service.
00:17:27.358 --> 00:17:28.784
And when you say that to people?
00:17:28.784 --> 00:17:29.665
Yeah, no.
00:17:29.665 --> 00:17:35.001
As an electrician, I just really saw the deficit in home resident residential service.
00:17:35.001 --> 00:17:41.977
Like serving homeowners, it just seems like everyone's rushing in, rushing out and they're not even offering to do the right things ever.
00:17:41.977 --> 00:17:53.260
They're not even leaving you a choice and just in saying that you begin to gain traction, even if those people don't hire you on the spot.
00:17:53.260 --> 00:17:57.401
Are they going to think of you the next time they hear about someone who needs an electrician at home?
00:17:58.053 --> 00:18:03.217
They will and the fact that you're already someone they like, trust and respect because, remember, they're already in your circle.
00:18:03.217 --> 00:18:08.020
Success isn't in your direct record, it's in your second to third degrees of network.
00:18:08.020 --> 00:18:16.388
So they may tell someone who will tell someone, as long as your values are there and you're someone that sticks out.
00:18:16.388 --> 00:18:22.650
As you know what I believe in what this guy is trying to do, and you know I may not need him right now, but hey, you know what I hear.
00:18:22.650 --> 00:18:23.532
You're looking for a generator.
00:18:23.532 --> 00:18:24.315
I know a guy for you.
00:18:26.810 --> 00:18:27.573
Bearing in mind.
00:18:27.573 --> 00:18:33.714
These are the people that already know, like and trust you, so the question is will they buy from you?
00:18:36.000 --> 00:18:36.101
May.
00:18:36.529 --> 00:18:37.071
It's quite simple.
00:18:37.071 --> 00:18:38.016
They will.
00:18:38.016 --> 00:18:45.529
Now, prospecting is going to have a ton more that we're not going to be able to fit in this episode, but again, we also have a tool for that too.
00:18:45.529 --> 00:18:50.449
It's called service leads now, and I think we do have to unpack it again a little bit here.
00:18:50.449 --> 00:18:51.455
Joe, what do you say?
00:18:51.455 --> 00:18:54.519
We actually add an episode to prospecting, maybe?
00:18:54.539 --> 00:18:54.983
next week off too.
00:18:54.983 --> 00:19:03.529
I think that's worth it, just because you can't talk about going into the gold in the river without even explaining how the pan works.
00:19:04.898 --> 00:19:05.644
Nice analogy.
00:19:05.644 --> 00:19:06.470
I like that.
00:19:06.470 --> 00:19:14.196
Anything you want to add to this episode for the prospecting and the point that we're currently at, because I kind of just took it, I stole it away from you.
00:19:14.650 --> 00:19:15.733
No, it's okay Once again.
00:19:15.733 --> 00:19:17.378
There's a reason why I love working with you, man.
00:19:17.378 --> 00:19:19.529
Well, several reasons, but one of them is I think you're brilliant.
00:19:19.529 --> 00:19:22.529
So when you take the mic and you're working, I don't feel like you're just spitting bullshit.
00:19:22.529 --> 00:19:27.529
You're doing the right thing and you're helping people with actionable stuff, so I'm never opposed to it.
00:19:28.733 --> 00:19:39.462
What I'd want to add to this whole pile really comes back to the authenticity and the belief, because the conviction creates conversations and conversations lead to relationships.
00:19:39.462 --> 00:19:47.980
So the conviction in which you originally bring this conversation into place with is going to determine how much traction it grabs.
00:19:47.980 --> 00:19:56.795
If you seem truly moved about something like there's a difference between yeah, no, I noticed there was a deficit in homeowners and homeowner service and the people just getting in and get out.
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