Warum deine Mitarbeiter ständig kündigen

0:00uh problem for us is we can't hire and retain and train really talented people. Um we we find that we can keep people for about a year and then they either >> want to go do something else or they want to go into a different trade that they view as like a higher higher opportunity like HVAC plumbing, electrical, >> um >> stuff like that. So we're trying to figure out a way to make it so that people want to stick around and see this as a career that it can be.

0:27>> Yeah. I'm gonna I'm gonna we're I'm gonna guess right what's your close rate right now when you meet with people >> our close rate when we meet with clients or with uh leads or >> well leads to you know to sell them. >> Yeah. Selling uh we're about 30%. >> 30%. Interesting. Okay. So this is me calling the shot. This is my guess here. Phil is that I'm gonna bet we have to fix the sales motion. Number one. Once we fix the sales motion we can increase prices. Step two, once we can increase the prices, which will dramatically increase profit, we can then pay the guys more so they stick.

1:07>> Yeah, that would be my and currently they're >> Go ahead. >> Yeah, currently they're paid 25% of labor revenue. Um, so yeah, definitely increasing prices definitely is a way to do that. Um, and that's that's the thing. We're just our close ratio I feel like isn't high enough to warrant the price increase that I know we need. >> Yeah. >> Right. So, it's like I I don't want it to go to 5% close ratio in order in order to >> I mean, dude, for you to get to 5%, you would have to like 10x the prices. It would it wouldn't even be close.

1:36>> Yeah. >> Um, so we have to fix the sales motion. So, that's my So, like this is why like you got to pull the thread, right? So, it's like it starts with like my guys aren't staying long enough, but the reality is that like we're not charging enough, but we can't charge more because their sales process is is screwed. So, let's fix the sales process. All right. So, walk me through the sales process. >> Sales process we have currently um they basically call our office. We we do a lot of inbounds. We don't do as much advertising as we need to. Um so, we we're pretty pretty well uh we show up pretty well on Google. Uh, but we're only spending like five, six hundred bucks a month on actual Google Outbound.

2:13Um, >> well, you mean Google ads? >> So, >> I mean Google ads, like Google local service. >> Got it. And so, you're And 500 bucks a month is what you're you're you're putting into PBC. Okay. >> Yep. >> All right. >> How many leads are coming? >> Call our office. >> Any idea? >> Leads. Leads a week. Leads a week are about two to three. >> Okay. From that from that 500 that you spent, right? >> Yep.

2:36>> Okay. So, I'm gonna say you're getting 12 12 a month. So, let's just say 10 for simple math. So, it cost you 50 bucks a lead right now. Right now, roughly. >> All right. >> Yep. >> And you convert what percentage of leads? >> Uh, convert about 30%. >> Okay. Converting 30% of leads. You can get that to 50 on inbound. Um, just FYI, but you're at 30%. That's fine for for the purposes of our conversation. Okay.

3:05Um, so it costs you $150, right? >> Yes. >> To get a customer is going to pay you $4,500 a year. >> Yep. >> Not bad. >> Not a bad day. [laughter] >> So, let me ask you this. What percentage of your costs are variable versus fixed? >> Uh, it's I don't have an exact figure.

3:32>> Let me ask you this. What are gross margins? I would gross margins are about 50%. >> Okay. So that >> cost of goods are about 25 >> and that includes labor. That includes labor, right? >> Yeah. >> Okay. Correct. >> So you're going to make So it cost you $150 one time to make $2,250 per year in gross profit. >> Yep.

3:55>> Banger. Banger. Amazing. Okay. >> This is killing it. >> You put more into advertising. Hell yeah, [laughter] >> bro. Hey, I've got this amazing investment opportunity. >> If you give me $150, I'll give you $2250 back >> just at the end of the year. All right. I'll give you I'll give you 2250 back. How much money you giving me? [snorts] >> I'm as many as many pennies as I can throw at you. Yeah.

4:21>> Okay. Well, how much cash you have on hand? >> Uh, not a lot. Not a lot on hand. Um, we basically are that's the thing. our our we have two owners in the business. So, we're taking out a good amount of our basically >> cause heard. So, what you need is a money model. So, what how much your money are you making the first 30 days on $150 customer?

4:44>> Uh generally, so we we just transitioned to doing a different different type of initial visit model. Uh that currently we're getting about 1,500 per client in the first 30 days. Uh but it really depends. That's That's our average, >> bro. So, you don't even need the money cuz you're getting 10 to one up front. >> I I know. But then, so our on that 1,500, there's a good amount of that, which is cost of goods sold. We're basically finding issues for repairing.

5:15>> Let's say you make 500 on on on 1500. Let's say you run 30% on the first one, right? Does that sound Does that sound reasonable? >> Y, >> dude, you're still making 500. >> Mhm. >> On your 150. Yeah. >> So, why not spend more >> the I don't know. I'm just scared, I guess. Scared to put the put my money where my mouth is. That's it.

5:39>> Yeah. I mean, I'll say this. I don't know if you were on for the beginning of this, but like this is a super classic issue. This actually happened a ton in gyms. So, gyms have fixed costs like rent and equipment leases and things like that, right? And so the guys would have a vehicle like this that they're getting 10 to one on something really strong. But what they would do is they would only spend enough money to cover all their fixed costs but never get into the black.

6:05>> They literally would just like spend enough to like they they play business on defense rather than offense. >> Yes. >> Yep. >> Right. Like you're playing right now to not be poor rather than to be rich. >> Yep. That sounds familiar. >> Yeah. And you're willing to make the money for your team. You're willing to make the money for the landlord. You're willing to make the money for the bank, but you're not willing to make the money for you. >> Yeah. >> Real, right? >> Yep. >> Okay. So, >> real. >> As much as I would like I'd love to like, you know, dive into a hundred other things, like this is I'll bet you right now this is the core issue is like I want you to go from $500 a month to $5,000 a month to spend because if you went from two to three leads a week to two, three leads a day,

6:44>> would that materially change the business from a casual perspective? >> Yeah, definitely. But that that's the thing. It's or we could we could do that, but then we run into fulfillment issues of it takes us six weeks to train a guy. So, it's like chicken of the egg. >> Six weeks is not that long. Big picture. FYI, right? And I'll bet you could do it in three if you really had to, >> right? >> Yeah. >> Okay. >> Yeah. >> So, >> so yeah, that that's the thing. >> When you're in equilibrium, this is a rule of thumb for me and for everybody who's listening.

7:11>> If you're in equilibrium where you're like, I can maybe take a little bit more demand, but then I'm going to be supply constrained. Get the demand, get the cash, then you'll get the resources to take the next move. And if you have to pay some guys one and a half or one and a quarter, you know, overtime to to to fill the slot, one, you're going to pay them more anyways, and that's good. Fine. And I'll bet you those guys would work more for more money. >> Yeah. >> So, you have flex. You have you have more capacity. You have capacity that's not stretched. So, if you could stretch it, most people like you'd be amazed at what people can do if you're like incentivized them.

7:46Yeah. Yes. Yeah, definitely. We could I mean our team our team's pretty pretty strapped right now. >> And are you are you closing? So, >> walk me through the sales process real quick. Lead comes in, you immediately call them within 60 seconds or what? >> No. Um it's basically we have um online pricing. All of our prices are online. So, they hit our website, they basically sign up, and then once they sign up on the website, >> y

8:11>> we're contacting them automatically within five minutes. Um and via text signing up. So >> uh we basically email um from the sign up. >> Um we don't do any any calls right now. Not not nothing automated. >> So you could probably double you could double your conversion if you just call the leads immediately. >> Yeah. >> Yeah.

8:36>> So let's say let's say let me let me ask you a question. If I paid you another $1.2 $2 million to do one thing, which is to just call your leads in 60 seconds. I give you one $100,000 a month. Would you do it? >> I I suppose I would. Yeah. >> Well, that's what's sitting on the table right now because you're not contacting your leads fast enough. >> Yes. >> You have a double. You can get to 60%. When it's PPC inbound, they already know the price. You could you could close 60%.

9:04>> And that's without changing anything about the pricing, the offer, anything just from contacting them fast. 10 four. Yep. >> Okay. So, we have two changes that are going to be the biggest material changes. Number one is you're going to spend way more on ads. Number two is you're actually going to call your leads really fast. When you do those two things, you have enough gross profit in the first 30 days to cash flow this acquisition anyways. You're then going to be willing to pay some of the guys you have time and change to do more jobs. Some of those guys are hungry, want to make more money. That's why they're leaving, right? Give them the opportunity to make more money. Yep.

9:34>> And then part of that is you can also pay them a little bit more money to to train the guys faster because they're working longer hours. They'll train them faster. >> Yeah. So incentivize the trainer to to get them get them on the road faster. >> Yeah. >> Yeah. So we can >> I mean I would say, hey, if you you can do it in six weeks. If you can do it in two, I'll give you a $500 bonus. >> Yeah. >> Right. >> Yeah. That's a great idea. >> Here we go. >> Rock and roll.

9:59>> Yeah. Great. And I put the incentive is that if you have to go back and fix one of the plot spots that the new trainee went to >> that that guy's got to do it for free if he takes the commission. >> Yeah. Yep. Yeah. We do we do call backs on then they're on >> but I would do it on the trainee. If I'm going to if you were to take from six to two and you're going to sign off that this guy's good enough, I'll give you the bonus but you got to basically certify that guy's work for the next month. >> Right. Okay. So the trainee makes a mistake if they're if they're rushing through it. The trainer goes and fixes.

10:28>> Yeah. Big Papa's got to come in. I see what you're saying. Yeah. Yeah. >> Rock and roll. >> Rock and roll, man. Phil, thank you so much. >> Appreciate you, dude. Yeah, you bet. >> Yeah. All right. >> Rock and roll. All right.