WEBVTT
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You've got to bill for the growth of where you want to be, not where you are today.
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We don't need to borrow money and we don't need investors to grow an electrical business.
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You don't need it for financial reasons.
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That's not the case.
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You need to bill for your growth in advance, and that money will show up in your account so that you can invest in marketing.
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Invest in the next van, invest in the wraps on the next van, invest in CSR, invest in the office of the shop, the storage, anything you need, your tools, so that you can show up a premium provider.
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What do you think is the single biggest thing that electricians should be focused on first and foremost in their marketing?
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The fastest way to double your business, call your leads.
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Call them within 10 minutes and call them up to 10 times after you told me to do them the first time.
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If you do that, I can guarantee you're going to at least have a 50% increase, probably double your business.
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If you just do that, it's simple and easy.
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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 New Meyer, we're here to share the secrets that have helped electricians sell over a million dollars from a single service band.
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Now it's time for sales.
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It's time for scale.
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It's time to become a million-dollar electrician.
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Hello, hello, hello, and welcome back to another great episode of Million Dollar Electrician.
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And today's another fantastic day in the season three with another great guest.
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We have with us Forrest Schwartz of Top Line Growth.
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Forrest is doing some excellent marketing stuff, but more noteworthy, as you guys know, we tend to have just electricians on this show.
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There's been like one or two exceptions.
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Uh, Forrest, you might be number three, except, guys, I'll give it this preface.
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Uh, Forrest is part owner of Kyle Electric, a former client of ours.
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And Kyle Electric grew from not only our processes and service last year from I think you said under 10K months to over 165 at the peak, which is remarkable.
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So that's in part uh to credit with what we were able to work with you guys on, but also just in part in testament to uh Forrest's marketing ability.
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And so we wanted to bring Forrest on for the unique potential of this interview to share some deeper marketing insights that also come from an electrical background.
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And I think that's so valuable, man.
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So welcome to the show.
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Thanks for joining us here today.
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Thanks for having me, man.
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Really looking forward to it.
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Hey, why did you decide, if you don't mind me asking, to get into the electrical game?
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I'll pre-warn you here, too.
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Like you've got uh a chance here to earn some favor of our listeners or completely burn us and have this uh go the wrong way.
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No pressure, right?
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Yeah.
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Um, yeah, so I've been in the agency space for almost 10 years, having uh digital marketing agency.
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And I was in a niche before actually bowling, of all things, believe it or not.
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And um, I was working with them.
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They didn't turn out to be quite the niche that I was hoping for.
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I was in it because a friend of mine had one and we helped him double his bowling center revenue.
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And so I thought, hey, there's not a lot of competition here, so I'll you know be the best in this space, but there's a reason there wasn't a lot of competition there.
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So that's where I wanted to go more into the home services space.
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So I created a uh a matrix of like 25 different industries and then came up with criteria across the board and then came up with a point system.
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And the top ones were um electrician, landscaping, plumbing, and HVAC.
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And so we started buying some businesses in those areas, and I quickly learned that landscaping wasn't as good as what I initially thought.
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Um, and electric, uh, after working with Andy, was definitely the the best of the mix and the one that I could drive the most results with.
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And so that's where I decided let's double down on this one, and then that's uh, you know, shortly after I reached out to you, and uh here we are.
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I love someone who's doubling down in the electric field.
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Always a pleasure, always a pleasure working with Sparkies.
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There's two things, and and I don't want to get too distracted, but I was at a bowling alley not long ago, and I think I shared this with you before, and I just like some of the lanes didn't work, really not managed well.
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The staff were crummy, the cooler was empty, the chips were still.
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I was just like, man, what you could do with this bowling alley.
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I mean, bowling's still enjoyed by so many people.
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What do you think is the problem with that industry?
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If we can just click.
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Biggest thing is there used to be 12,000 of them.
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They really peaked in the 70s.
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There was a lot of bowling.
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It was very much like a factory, like people in factory towns, that's what they would do.
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Um, there used to be 12,000, now there's 3,000.
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And the ones who are in business, they got all the business from the other ones that are gone.
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And the biggest reason that they go out of business is because they sell the building.
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The buildings are worth more than the business.
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That's what I was thinking too.
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I was sitting in there and I we even looked into it.
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It's like, what would this building be worth?
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And I in the area I live in and many cities, it's like historic downtown real estate, and there's this big bowling alley that's just completely outdated.
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No one can afford to update it.
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So, anyway, interesting you brought that up.
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Um, thanks for for humoring me, guys.
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I'm also curious about this matrix.
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You built a matrix and a point system.
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Like, what were some of the things that we scored so highly on?
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Why would that be?
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Yeah, so uh one of the big things was how much it can be impacted by marketing.
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Um, before I was in the agency space, I was a financial advisor and I looked at that one because I wanted to buy businesses and grow with marketing.
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And that's a very much like a face-to-face, person-to-person networking kind of business.
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So that would rank low in the can I grow it with marketing?
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Um, how it will be impacted by AI is another one.
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So certain ones like roofing got a bad score in that because a robot can do or will soon be able to do some roofs.
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I think there's some out there that are now doing it.
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Um, same with landscaping, you got a rotto robot, mowers, and things that are coming, whereas electrical is pretty safe.
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I think it's gonna be, you know, maybe one day they'll they'll be able to do it, but it's gonna be a long time before they can figure that out, before people would trust them.
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Um, so so those are the things.
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Profitability was one, um, ability to find an operator was another one, um, ability to find deals.
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So, like there's tons of landscaping companies available.
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We looked at other businesses, like we looked at med spas, and there's not that many of them available.
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So it was like, I want to say about 10 different things that I ranked, and I came up with a definition for one being bad and a definition for five being good, and then just subjectively ranked them.
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And, you know, that's something I used for getting into this industry, but it actually works for almost any major decision that you're looking at.
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You can kind of use that uh to just break it down because it's kind of overwhelming.
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But when you put numbers to it, it kind of makes you it makes it easier and helps make the decision for you.
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Yep.
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And that's one of the reasons we wanted to have you on the show.
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Really appreciate that uh your mindset on data-driven decision making or something we call the law of separation, just meaning we have to like everyone has a gut instinct, everyone has that feel.
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Sometimes it's butterflies, sometimes it's oh crap, I can't sleep over this.
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But acting purely from that emotional state's a bad idea, guys.
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Having data-driven decisions is really the way to go forward.
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Although I need to argue with one thing you said.
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Uh, we've had many people call Joseph a sales bot.
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He's an electrician.
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Maybe it's already been infiltrated.
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Maybe we find out that Joe's not actually human and that uh he's you're actually a robot, Joe.
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What are your thoughts on this?
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Uh I mean, technically, Skynet hasn't updated me yet, so I can't really give you a proper response, but you know, I will get there.
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I will get there, man.
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If there was a way that I could do uh oil changes instead of physical tune-ups, I'd be fine with that.
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Yeah, that's interesting.
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I had never heard of roofing uh having robots, but I guess that kind of makes sense.
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It's repetitive.
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Why do you think it is that electrical, from your experience at this point, is further from that?
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Complete automation.
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Just, I mean, it's not like think about roofing, it's very repetitive.
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It's doing the same motion, same with mowing, it's just going back and forth.
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It's basically a roomba is the mower for that.
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Like and same with roofing, it's basically like a roomba that you just put metal or the uh nails into the shingles.
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So it's very repetitive.
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Whereas being an electrician, a lot more um variety of situations, a lot more creativity.
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You've got to identify all the different wires, getting access.
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Um, there's just a lot more that goes into it.
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Even just the physical of being able to put the wire and run it through into the panel, like there's a lot of stuff for a robot to be able to do that would take a lot with even the um actuators to be able to do that fine motor movement.
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And even with that, like you can imagine, like, let's go even further into the future.
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I can see almost even new construction being something that someone might want to get a robot into, but I will be damned if I find any robot who can do service work, crawl into the crawl space, troubleshoot the situation, recognize unusual scenarios.
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That's I think where the real safety lies, in that we can use our intelligence and our experiences to solve problems in ways that others just physically and mentally cannot.
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Not to mention the personal aspect too, just building the rapport and the relationship is a lot of the piece of the service work.
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I agree with you.
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That makes sense, absolutely.
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And I'm almost now that you say that, I think I've realized, I've had an epiphany in that moment of just okay, here's why pricing is such a sore spot for electricians over and over and over again.
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And there's such variety, such customization, and we're all drooling over some form of price book, something to just try to template this for us, but that solution is rarely 100%, right?
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There's always some customization, there's always some amount of you, as a specialized subject matter expert, have to think about this and apply certain factors to make it right.
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How big was pricing for you guys and Kyle Electric getting going for us?
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I know that was a big piece of what you worked on here with us.
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Uh how big of a solution do you think that was for you guys?
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That was huge.
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Um, because Andy, the guy who's the operator, he came a lot more from the commercial side and doing the bigger projects.
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So service was something he'd liked.
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It's something he could do.
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He's great with people, but something that we were getting on, getting into early.
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And so the the being able to calculate what price we should charge was was huge and knowing what goes into it and why it's justifiable, because we came up, our service rate was like 456.
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And at first, when we when we said that, we're thinking, oh, that's that's a lot of money.
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But then when you figure out what is going into it, you feel very confident to charge that because you know how many things it has to cover.
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And it's not just so like, oh, I don't know if I can get away with that.
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It's like, no, I literally have to charge this in order to make money.
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And it kind of takes that fear out of it.
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It's just like, no, this is what it is, and I did the math to prove it.
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Yeah, I absolutely love that.
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I think it's phenomenal because you're right, at the end of the day, you're completely right.
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You know, one of the biggest problems that we intend on finding is that people don't believe in their number, and as a result, they'll start cheating the hours.
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Like, yeah, I doubled my rate, but I also am trying to underestimate things because I'm uncomfortable with the number.
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But if you recognize you've actually done the math and you're like, no, this is exactly what I need to charge, otherwise, money's coming out of my pocket, out of my family's investments to cover the things because I'm too chicken to charge the rate I have to charge, that's where the really solidarity comes into.
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And you're like, I'm digging, I'm dialed in, let's do it.
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Yeah.
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One thing that we we I always like to repeat to them and the partners is like, you can break even sitting on the couch.
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So if you're gonna do all this work to break even, you can get the same result just sitting on the couch doing nothing.
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So if I'm gonna be out there away from my family or not doing the things I want to do, we better be making some money.
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100%.
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Do you recall what your rate or or what uh Kyle Electric's rate might have been before that increase to around the 450 mark?
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I want to say it was maybe like 150, 200, or something like that.
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It wasn't very much.
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So the crazy thing I always find at service, and so many people get that you know, uh primary price shock from this, is there's this 50% efficiency factor.
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And when you really do the math, you find that, okay, well, sure, I got to do a bathroom fan, but who's gonna pick that up?
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You literally have to drive and go and get it from a supply house.
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You're lucky if your customer's next door to the supply house.
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In fact, that never happens, right?
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So there's always all this additional time that goes unaccounted for.
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Or in the old hourly model, time and material model, we'd put that on our customer's back and they'd say, Well, why'd this take so long?
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Well, I had to drive to the supply house, I had to pick up the fan, I had to choose the fan.
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The fan wasn't readily available, they had to pick it from the top shelf.
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All these factors, your customer doesn't want to pay for that.
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So, one of the big things just from this price differentiation that it's pointed out to me again is like, okay, well, a 50%.
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So we're only charging for time on site now, which is amazing through flat rate, by the way, guys, right?
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So it has to be double what it would have otherwise been.
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But from what you're saying, if you were already just under 200 an hour and you landed at 459, then even half of the 459 is still a little over where you were.
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So, either way, by just doing the math, you guys found that there were more expenses.
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And one of the biggest places we pull this from that electricians are messing up.
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You guys, no offense, but if you're messing this up, we got to get it fixed.
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You got to bill for the growth of where you want to be, not where you are today.
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I keep saying this, I'll say it again, we'll end the rant and get right into the marketing stuff with Forrest stuff, uh, with Forrest here today, but we don't need to borrow money and we don't need investors to grow an electrical business.
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You don't need it for financial reasons.
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That's not the case.
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You need to bill for your growth in advance, and that money will show up in your account so that you can invest in marketing.
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Invest in the next van, invest in the wraps on the next van, invest in CSR, invest in the office of the shop, the storage, anything you need, your tools, so that you can show up a premium provider, uh, the the um outfits, excuse me, right?
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What uniform are you wearing when you show up to the house?
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All right, I'm I'm done my pricing rant, guys.
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Uh forgive me, forgive me.
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Forrest, uh back to you.
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What do you think is the single biggest thing that electricians should be focused on first and foremost in their marketing?
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So believe it or not, this is something that people probably won't expect, but in my experience, it's the fastest way to double your business call your leads.
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Call them within 10 minutes and call them up to 10 times after you don't get in touch with them the first time.
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If you do that, I can guarantee you're going to at least have a 50% increase, probably double your business if you just do that.
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It's it's simple, not easy.
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It's funny you said that.
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We have um a value piece that we give away.
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We give this away for free to the market.
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It's called the unsold FU, which is just funny.
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Follow-up process, the script for it to just call.
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And it actually has one of the best testimonies we've ever received from a client or prospect before.
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It was Alan who's been on the show before.
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If you guys are long-term followers, he'll be uh on here again in season three, guys.
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Excited for that one.
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But when Alan first met us, he grabbed that value piece and he started making calls.
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And I don't have this in front of me, so I may be misquoting slightly, but I do believe Alan said this script is gangster.
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That's correct.
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Now you remember.
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I just did a bunch of outreach and made some sales on calls.
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We just had no idea where they were or what happened.
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Boris, it's no coincidence, and I'm not surprised to hear you say that.
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What stops people from actually following up with their leads and actually making calls, actually doing this uh with some speed and urgency?
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I mean, like the the first go-to answer is like laziness, but I mean, let's be real, like the electricians aren't lazy.
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It's just they're focused on other things.
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They're out doing the jobs, they're talking to the customers, sending invoices.
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It just falls to the wayside.
00:16:21.360 --> 00:16:25.360
Um, so I would say that's probably one of the first, if not the first, hire.
00:16:25.759 --> 00:16:28.159
Even if it's part-time, is get some kind of appointment setter.
00:16:28.320 --> 00:16:33.279
It can be an office admin, or if you just want to get someone, you can hire people on a per appointment basis.
00:16:33.440 --> 00:16:36.639
Um, but just you shouldn't be the one making the calls.
00:16:36.720 --> 00:16:38.559
Um, number one, because you're not gonna be able to.
00:16:38.799 --> 00:16:50.799
Number two, you lose out on the um posturing that you get from someone else setting appointments for you, and they can edify you and say, oh, you're lucky that Joe's coming in today because he's got this many years of experience, he's gonna crush it.
00:16:50.879 --> 00:16:52.879
I'm I'm glad that he was available to do that for you.
00:16:52.960 --> 00:16:57.279
And they can really push you up in the prospect's eyes, and they're they're just gonna do it.
00:16:57.360 --> 00:16:59.279
If that's their job, they'll actually get it done.
00:16:59.440 --> 00:17:06.480
Whereas you're doing 10 other things and the call comes in and you're you know climbing through an attic, good luck getting that call.
00:17:06.960 --> 00:17:09.119
Yeah, it comes down to overwhelm as well, too.
00:17:09.200 --> 00:17:21.839
I mean, I can imagine you're on an install and you're like, I've got to get the materials for the next job, I've got to call this person back, I've got to finish this job, I've got to get home to my family, and you're like, all these other undone things are like, oh, I'll do them tomorrow.
00:17:22.160 --> 00:17:29.440
But you just keep rolling them into the next day and next day, and what doesn't get managed doesn't get measured, and vice versa.
00:17:30.720 --> 00:17:32.319
Yeah, that thing never happens.
00:17:34.000 --> 00:17:35.839
Yeah, time management problem.
00:17:36.079 --> 00:17:42.960
So you've helped multiple companies uh reach seven figures and beyond and scale their businesses in home service.
00:17:43.279 --> 00:17:46.400
How have you helped people solve this big problem?
00:17:47.440 --> 00:17:49.359
We all we always hire someone to do it.
00:17:49.599 --> 00:17:51.039
That's their their dedicated job.
00:17:51.119 --> 00:17:57.839
Uh like a dispatcher, if they need to coordinate between multiple texts or just appointment setter, you got to have someone who's answering the phone.
00:17:58.000 --> 00:18:09.359
Um, because they're they've done studies, and if you don't answer or get to them within 10 minutes, you have to call like three to five times more than you would if you would have gotten to them right away or just answered the phone.
00:18:09.599 --> 00:18:14.160
So now, even just doing that, you're lighting the workload just by having someone there dedicated.
00:18:14.319 --> 00:18:15.599
That's that's all they do.
00:18:16.880 --> 00:18:17.279
Wow.
00:18:17.440 --> 00:18:22.880
So you mentioned call within 10 minutes, and that has a huge impact on how many times you'd have to call.
00:18:22.960 --> 00:18:24.880
But then you also said 10 times.
00:18:25.200 --> 00:18:26.160
Isn't that excessive?