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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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Hello you guys, and welcome back to another podcast powered by Duramax.
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I love that ring.
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It's got a little ring to it.
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Powered by Duramax.
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If you guys weren't at the workshops we did just a couple of weeks ago, you big time missed out, and Duramax has become a major sponsor, really helped some people out, including Sean, the winner of that generator, who then they learned that he was in California, that the generator they intended on giving away didn't meet the actual what was it?
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the emissions go.
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Yeah, the main thing is California is super strict with their emissions, so only certain kinds of I think non-carbureted generators are allowed to come in.
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So they upgraded them to a non-carbureted generator of a larger KW size.
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I'm like oh surprise, here's an even better one.
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Like you can't ask for a better sponsor than that.
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It's perfect, right.
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It's just a perfect example of the level of service that we aim to provide, that we aim to teach, that we aim for you to provide your customers, and today we've got to keep going into that.
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I've got a very special topic for us.
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It's something we talked about earlier in the week and I think this is a huge miss on the part of service providers show.
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I'd love to dive right into this if I can.
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By all means man, let's fire away.
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There's a little known secret to repeat customers that very few people actually take advantage of, and it's that you have additional information.
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You, as the provider, you know what I mean.
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So someone worked with you in the past.
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Maybe they left you a five-star review.
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They at least gave you some feedback.
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You know extra additional information about these people and too too often, providers treated as business as usual and they overlook without going back and doing a quick study on what worked so well last time and what didn't, so that you could improve.
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Have you ever experienced anything like this in your life?
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It's like I'm literally being clubbed on the head on this one, but yeah, so one thing that I'd like to tease is that we are we actually we have created an entire generator and inspection call process where we literally have a video where I'm actually doing the play and running it.
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I had a videographer running with us and literally went through the whole thing.
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I loved it.
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It came out phenomenal.
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But we hired the same videographer he did for the original videos because he did an amazing job and the way that he did, I mean I think shit, the bed is lightly saying it, I think it's lightly saying it that way.
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Pretty much the product we were delivered on this one was abysmal and the craziest thing was we loved his previous work.
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All he would have had to do is hey, watch the video you already made for us.
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Make it like that and I'll just keep buying it from you.
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Yep, that's the problem, though.
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When you don't review, you just you're going blind again.
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You're treating it like a new road and if you think about that, with every new customer, you guys, this is a major disadvantage that you have, in that you have not quite built or established adequate rapport or experience with that person, adequate relationship value to understand how they want to be served.
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Here's a off the wall, opposite end of the spectrum example.
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Let's say it's someone you bought a platinum from or that bought a platinum from you.
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That's just the easiest common signal and most of us remember those customers.
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But those shouldn't be the only customers that we remember.
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What if, by some nature of dispatch and everything that happens?
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Hey, we landed ourselves a basic customer and the basic customer shops again.
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We landed ourselves a basic customer and the basic customer shops again.
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Wouldn't it be practical and insightful and useful to know the reasons why they chose basic last time and how we might be able to improve on that process this time Even more?
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so, because we already found the study that the second purchase is three times the value.
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So even if it was a basic, the next one's likely triple in value.
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Why not at least look at what they did?
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One thing that I've always done whenever I would go on calls was I would write down their name, their spouse's name, the kid's name, the dog's name and one special interest that we shared together.
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That way, when I come back, the relationship's right there and I also review the invoice to see what was it that they wanted, as well as the options above and beyond, so that we can reintroduce them to that same customer.
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Yeah, and I feel like this is leading right back to the work order, which I love, love, love, love what we teach there.
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Before you do, you mentioned something really important this 3x value on a repeat customer, and I think what you're referencing is back.
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We did a podcast with Guillermo Castillo and he had mentioned that they did a deep dive in their data and they realized that, hey, return customers tend to have a three X value over that first transaction, and that was mind blowing.
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And then, just because we were focused on it, like the next week, someone in our program we noticed they had sold a platinum package over christmas break that included club membership.
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They went back and performed the annual inspection already in january, just weeks later, and they came out with a transaction that was literally three times the first.
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And we went oh my gosh, how can anyone overlook this beautiful and simple fact Repeat transactions have more value, just financially, but also like if you ask techs any day of the week, joe, in the classes where you're training guys, what call do they prefer?
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Do they prefer going back for a second, third call?
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Do they prefer repeat transactions or do techs actually love the first call the most?
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Oh, no way.
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People don't love the first call, I mean, unless you're a bit of a psychopath.
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But the second or third call is amazing because you think about it and it's like this is home field advantage.
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I know them, they know me, I know what options they liked, I know what options they didn't like, I know why they chose not to use the previous provider, why they chose me.
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We have a great connection.
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We can laugh about it.
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You know we're kind of joking as we write up options like oh, you're going to offer me options this time too.
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Yep, you already know it.
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Like those are the most fun calls that you run and they're the most enjoyable not only sorry, the most enjoyable and the most profitable.
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So the fact is is that if you're going to have more fun and you're going to make someone happier and you're going to make more in the as a result, why wouldn't you just want to live in a circle of existing clients?
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Yeah, yeah, I'm reminded of Dorian and maybe this is our win of the week.
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Just to plug it in here.
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Dorian recently, not too long ago, within a couple of weeks ago, finished serving a client that ended up being worth $63,000 from inception, which came from an Angie's lead, essentially, but he recognized them as one of his key primary targets from Angie's uh, retired or more aged prospect that didn't even realize they were on Angie's or doing anything through a lead aggregation service.
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They didn't even know.
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They recognized them as a prime customer, served them at the highest level, like they do with everyone, and ultimately, throughout the couple months they kept spending signing up for the next thing, the next thing, the next thing 63 000 that's just a little dent in your grand year of revenue, but it's not.
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It's not that small and I believe for where dorian's at these days that's probably a seven or eight percent revenue customer, which is is massive.
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Huge.
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Yeah, I mean like if you think about it it's actually even better, if you think about the grand scheme of things, because I'm glad it's not too big of a part of his pie, because the moment you start going for whales that's when the blocks start falling apart.
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Like I don't want one client who's worth more than 10.
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I mean, seven or eight is already the maximum that Ed wanted to be, Because then if you lose one client you're down a big percent.
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But if you can find a way to retain that client, they just keep producing a dividend every single year.
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Totally and honestly.
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I don't know if we've ever really covered this on the podcast before, but that's one of the huge reasons why private equity is so interested in home service groups and now even electrician home service groups is because of the diversity of the clientele.
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What that means is service companies are a real business.
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They're a real service and product business.
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Whereas a construction company on average might have three to eight customers a year, some would only have one or two Like that's a ton of risk.
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Very seldom will someone want to invest in a company like that.
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But if you show me, hey, we have 500 plus clients a year and we have these processes which are generating us new clients and, as far as we can tell in our first three years with the systems we've set up, we're able to now add vans four and five next year without any problem.
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We're just going to scale this and optimize this and then eventually we'll add this marketing routine.
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Our sales process works and we address people as they should be addressed, especially return customers, which have a value of 3x.
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That company is worth multiples of a beta, as they say, which is just your earnings before interest, tax, depreciation etc.
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And that's getting into accountant land.
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But the point is, the multiples are what you're chasing.
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So a company with just some, you know, a couple of great customers and a lot of revenue, it's not worth nearly as much as that built ironclad company with the processes that keep on proving their growth.
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Go ahead, brother.
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You know, there's also additional factors we may not even be considering, because, sure, you have that consistent approach and you've got a wide range of customers and that's why the business is so attractive.
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But imagine if each customer also referred you to other like-minded customers, like if you once again, hunting Whale is like a construction company.
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They don't want anyone else to know about you because then you might go work with someone else, but someone who's been served at the highest level and is like wow, I really like this company.
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They're treating me the right way Next time they're at the family dinner and someone wants to do something like well, I had an electrician come on my home and he gave me a great experience.
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I'll give you his number.
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So even if, like, 10% referred you, that would be massive because you'd constantly be generating your own clients from your own clients that you've already paid to acquire 100%.
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Yeah, people don't leverage this enough.
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I find far too many electricians don't have a marketing strategy.
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They just have a marketing investment.
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They just put all their eggs in one basket.
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They just put all their eggs in one basket.
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They're either fully reliant on Google, with a very, very basic Facebook business account that does no traction, no reviews, none of that, and they're just waiting and it's just a ticking time bomb.
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It's so, so, so important to get yourself, get your brand out there and have great conversations and leverage things and leverage every single thing that you can organically.
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I personally am a believer in that.
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You know what?
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Speaking of leverage, I'm going to bring in another win of the week that just struck me, someone who's done this really well in their first five months of business.
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You guys would know him if you listened to the Nathan Miles podcast, where his first month he hit $75,005, if you remember that.
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And then I asked the famous question, how long you been in business?
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And he's like, uh, we started March 2nd or March 1st and it's April 2nd, so 31 days.
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I was like holy crap.
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Um, he just did it again.
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He's been growing and growing.
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As you know, we've been speaking his praise.
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Just hired his first electrician yesterday but through July managed $110,000 in revenue solo.
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I've never even seen this before, actually for an electrician, have you?
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No, no, and even further, like on top of that one, that's a crazy anomaly in the average electrical world.
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But even further that he's doing it himself and that he's scaling so soon.
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Like 30 days in, I'm at $75,000.
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Some people will be like, okay, good Hoard that, build the nest egg, make sure you're investing in property.
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He's like no, I'm just going to keep growing with it.
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And then added like another $35,000 on top, like that's amazing.
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Not only that, joe, but it was just discussed in our internal meeting.
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We do bi-weekly, as you know, with the whole team there, and Reina, who's been working with him, our accountability success coach, was saying that he's had to install all of his own work too.
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He just got his journeyman yesterday, so he actually sold, from what we understand, 110k in two weeks and then hads fully to achieve that, which is just incredible.
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I mean, that suggests something like maybe even a quarter million run rate with enough installers behind them to keep them in the sales position.
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You know the even crazier on top of that is.
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It's a hard psychological move too, because I believe you need to be in sales mode or install mode.
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It's very hard to run them in parallel because one is always looking for future opportunities and communication and bonding and the other is focused on efficiency and aesthetics and code compliance.
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So be able to constantly shift is not only incredibly impressive, but it's I keep using the word anomaly.
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But it's incredibly rare to find someone who has that ability, who can switch it like a light switch there.
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Yeah, I'd have to agree with you there, and if there's anything we could chalk this up to and then circle it full back to the point of this episode in the first place and the initial question, I think when we, when we really look at Nathan's case and why he's been able to do this, like this brink of impossibility for an electrician to do anymore, I've never seen such a great run from someone so early in their business.
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And if we look back at the podcast episode and all the times that you've worked with them, that I've worked with them, we've gotten, you know, deep into the weeds with Nathan.
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One thing stands out in particular about him he cares so much he's terrified of doing the wrong thing for someone and he believes in this system, the loop method that we teach so much as being the right thing for people, that it is legitimately the conviction, I think, of Nathan in this.
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This process, and his delivery of the process is bar none.
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I don't know that anyone's really done it better.
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I think he's 100% right there.
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Yeah, I would totally agree with that and you know, speaking of that, speaking of conviction, it also is one of the reasons why installers are so credible.
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It also is one of the reasons why installers are so credible because when they come in and they're able to be like, oh, I'm the least threatening person in the home, but they also believe in what they're doing the most.
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You'll never find an installer going, yep, we're doing the wrong thing and I'm cool with it.
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It's like, no, I'm going to do the right way, even if the sales guy doesn't know what he's talking about, I'm doing it the right way.
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When he comes with conviction, that only builds the credibility and which allows him to have some customer probably have a pause and be like this guy really believes it.
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I just told him he was double the price and he didn't blink Like, okay, let's at least hear him out.
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That conviction and ability of just being completely stone-faced in the face of adversity is a huge advantage as well in the sales game.
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Yeah, yeah.
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It's insane how important that really is.
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Honestly, that's a big part of if anyone struggles.
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They're new to sales.
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They haven't experienced this before.
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I mean belief, and that belief shift is one of the primary focuses that we have.
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You got to know you're doing the right thing.
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If you're someone trying to sell someone a Mercedes, you got to be driving the Mercedes too.
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You have to understand joe's like you're.
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You're the epitome of this, because you buy platinum, everything, um, which is also credibility to you.
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I mean, you sold the shit ton of platinums, obviously with your record why is it so?
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important to you to do that so I feel almost like a hypocrite if I don't, and the reason being is that I truly believe that people should know what the best looks like.
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Even if they don't want to hear it, I feel it's my obligation as an electrician to show them to them.
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Now, the problem is is that I feel like when you teach service, you often find the lack thereof, and when I find someone that I genuinely like, I'm like okay, I think you have a good business, I think you're a good person.
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I'll literally coach them how to make an option at the table.
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Be like this is what I want to see.
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I want to be served in this way.
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If you can do X, y and Z, we have a deal.
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And it's not even about price and I'm not trying to flaunt it, but it's like it's not about the number, it's about is this person doing right by my family enough where I feel like I've done a good job as a provider, a husband and a father?
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If my family has what I think they deserve and you can provide that to me as a provider, I'm going to keep buying from you, because my why is my family.
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That's huge, that's massive, and thank you for sharing.
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So somehow I'm going to bridge this back to our initial point and we're going to finish this one up with some sound tactical advice, as I want you to just imagine going back to this, reflecting on the past journeys to improve the current journey with someone you know.
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It's like you had a really important one hour conversation with your partner and then, two weeks later, you were going to have a follow up.
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It would be a good idea to take notes on that important conversation and then to review the notes to respect their time and their energy as well before the next call.
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That's all we're asking of you.
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So imagine a service provider that, on one hand, does not do that at all they're winging it, trusting that their instincts will serve them again in the same way or better, versus the service provider that just says well, hey, I did review your file today, joseph, and from the option that you chose last time in the review that we did, I first and foremost want to make sure that you don't have any questions or anything that's changed since the last time we served you, and I wanted to take the opportunity again to thank you for your great review.
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That's the level of service we're going to aim for again today.
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So did you have any questions or changes to discuss, joe, other than?
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where to swipe because that guy's already sold me.
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I'm like you know what it feels so rare too.
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It's such a rare thing when you try to buy a service and the person not only cares but is competent and charismatic.
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Those three c's are so impossible to find and yet that you occasionally find the person who rises to the occasion and you stick with that person barring all choice, even like get away from the logical decision making and just base psychology.
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What that difference is?
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Is this person spent time to ensure that I would be happy again, that investment.
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Like you can't go through your day without noticing those people that put the time in to best respect your time and energy, to best respect how you want to be served.
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And I really believe if those listening to this, watching us on youtube, if that's something that you're into, setting that higher standard, that expectation, that's a good reason and reason you'd be listening to us.
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Then, if you do this extra thing, if you make sure your work orders are in place, if you make sure you're offering that suite of options, not not for today but for the entire relationship to follow up on, and you make sure you're bringing these conversations up, what's going to happen then, joe?
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I mean it just seems like almost an exponential increase, because, the way I see it is, not only will you sell a higher ticket, but you're going to have a more loyal customer who is more going to have a higher repeat business, who then is also more likely to continue giving you reviews, which gains more customers, more likely to give you referrals, which gains more customers.
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So the word you used was investment, and I think that's the best possible term, because we'll invest in things that produce dividends, but for some reason we can't see how caring for the customer produces the biggest dividend for our business.
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You guys, if you got great value from today, please hit the subscribe button.
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I don't just say that.
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Like every other YouTube provider, podcast provider, whatever, Leave us a review.
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Hit the subscribe button because it lets us know that we've got more people invested in this and that means, just like the keyword Joe brought up, we're going to invest more in you guys.
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That means more value, greater guests and just greater duration here of these podcasts.
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We're so pumped to serve you every single week and we can't wait to see you again next week.
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Cheers to your success.
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Be blessed, my friends.
00:21:17.406 --> 00:21:22.707
And that's a wrap for today's episode of the Million Dollar Electrician Podcast.
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We hope you're buzzing with new ideas and charged up to take your business to the next level.
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So don't forget to subscribe, leave a review and share the show with fellow electricians.
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