The YouTube player loads only after you click. Alternative: open the original directly on YouTube.
Key takeaways
- >> What kind of business do you have?
- >> It's an accounting business.
- And as a result of undercharging, you're not able to pay above market so that you can attract the talent that you need.
- >> What are your close rates for customers right now?
Chapters
Full transcript
Locally archived YouTube transcript with timecodes. Speakers are assigned heuristically and may be corrected editorially.
0:00That's a clear, prescriptive, no question in my sleep. Double, triple in price. >> Hey, Alex. How's it going? >> What's up, Alex? >> How do you kind of acquire mid-level staff? I'm having a really hard time with it. >> What kind of business do you have? >> It's an accounting business. >> What is your gross profit per accountant per year right now? >> I'd say about 120,000. >> And what's gross revenue for an accountant? >> 200,000ish. >> I'm actually going to bet that right now you have a two-pronged issue. Thing one is you're probably undercharging. And as a result of undercharging, you're not able to pay above market so that you can attract the talent that you need.
0:35>> That sounds pretty accurate. >> What are your close rates for customers right now? >> My close rates are around 80%. >> Yeah, dude. 80% means you've got a you've got a for sure double, maybe a triple in pricing that's sitting right there. Right now, you're running on 60% gross margins. For me, my rule of thumb with services is 80% or higher, right? And so if 80 is the base, then we need to make $400,000 a year per accountant. So you're supply constrained. And in a supply constrained setup and with high close rates, that's a a clear, prescriptive, no question in my sleep double, triple in price. And then that unlocks an extra $200,000 a year. And all of a sudden, you can go to those accountants and offer them 150. And then you will get them.