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Give Me 42 Minutes, I'll Show You How To Sell Like The Top 1% | Scale or Fail Episode 1 — Transcript

by Alex Hormozi · 9,893 words · 1,589 segments · language en · Watch on YouTube

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0:00These eight business owners are
0:01competing for $100,000 and this golden
0:04ticket, which gives them access to an
0:05entire year of guidance from myself and
0:08the team behind my $250 million per year
0:10portfolio. They each have 60 minutes
0:12with me to explain their business and by
0:13the end, I'll decide if they scale or
0:16fail. For those who are chosen to scale,
0:18I'll give them a personalized 90-day
0:19blueprint on how to grow their business
0:21and 90 days later, whoever grows the
0:23most wins and walks away with the grand
0:25prize.
0:26My name is Alex Hormozi and I've been in
0:27business for 15 [music] years and I
0:29recently broke the Guinness World Record
0:30for the fastest-selling nonfiction book
0:32of all time, making over $106 million in
0:34a weekend. And this is Scale or Fail.
0:50>> My name is [music] Nass. I'm the founder
0:52of Flex 100 Moving and Delivery.
0:55We're based out of San Diego,
0:56California. The journey to this business
0:58was very accidental. I was a broke
1:00college student athlete. My friend from
1:02Austin came up one time and he just said
1:05you should be making some extra money
1:06and all it takes is just posting an ad
1:08online.
1:08>> [music]
1:08>> Took me about 11 months out of fear to
1:10post my first ad.
1:12From there, I just realized how much you
1:14can grow this business and what's
1:15actually possible to do.
1:17I found out about the Scale and Workshop
1:19here in Acquisition.com and I came in
1:202025 [music]
1:22and since then the journey to this has
1:23been growing. Growing this business is
1:25really important [music] to me. I just
1:26want to show myself that I could
1:28actually do this.
1:31Good morning, Alex.
1:32>> Good morning, man.
1:32>> How are you doing?
1:33>> Good.
1:34>> Great to see you.
1:35>> Good to see you, too, man. So, tell me
1:37about the business.
1:37>> My name is Nass. I'm 29.
1:40Um I'm the founder of Flex 100 Moving
1:41and Delivery. We did about $300,000 over
1:44the last 12 months, profit being 62%.
1:47Our goal is really to expand to um
1:49multiple locations with um 2 to 4
1:52million dollars per location in the next
1:542 to 3 years.
1:56We'd love to paint the map pink with our
1:57pink trucks.
1:58>> Walk me through the the business model.
1:59>> Most of our business come through local
2:01residential moves that represents about
2:0390% of the revenue. We charge based on
2:05an hourly rate. It's $165 for two
2:08professional movers plus $150 for the
2:11truck and equipment.
2:12>> Are you the cheapest?
2:13>> No, absolutely not.
2:14>> You're the most expensive?
2:15>> Up there.
2:16>> Okay. And how do you get customers?
2:19>> So, being the second highest and best
2:21rated moving company in San Diego, as
2:22you can see, like most of the revenue
2:24would be from Google Maps and SEO. It's
2:26kind of like organic. Um cost about
2:28$1,000 to $1,200 a month for SEO.
2:31And the main winner right now that we've
2:33been testing with would be the realtor
2:34outreach.
2:35>> Tell me about this realtor thing.
2:36>> So, we'd reach out to them and then we'd
2:38tell them, "Hey, if you have anybody
2:39like moving out, we'll give them that
2:41little offer of like anybody over
2:43$2,000, then we will, you know, give
2:45them $250 off them." So, for the
2:47realtors, the job is like they pay so
2:50much. For example, this month out of out
2:53of 17 jobs on Google, we made $16,000.
2:58>> Mhm.
2:58>> Okay. And out of
3:00six jobs with realtors, we made $15,000.
3:04>> Yeah.
3:04>> So, it's over $3,000 per job with
3:07realtors compared to any other channel.
3:08>> Okay. Anything else that's stopping you
3:10from scaling?
3:11>> Just not enough leads. Uh we could
3:13easily double up the business, but as of
3:14right now, it's just not enough leads.
3:16>> Okay. Why do you even want to grow the
3:18business to begin with? Like, you're
3:19already making money, right?
3:20>> There's different reasons. Number one is
3:21that my wife just quit her six-figure
3:22job about five days ago to bet on me.
3:25>> [laughter]
3:26>> I know you heard that a lot, but this
3:27one is real.
3:29So, she quit her job. She's betting on
3:30me. She trusts me on doing this. I'm not
3:32going to let her down.
3:33>> Okay.
3:33>> And then two, I've had guys that have
3:34been working with me for the last few
3:35years.
3:36And these guys, all they're asking for
3:37is just stable work so they can feed
3:39their families. Three would be my mom,
3:41who worked extremely hard for us to be
3:42here coming from Morocco. Her only dream
3:44in life is to own a house. And I would
3:46be the reason make that, you know, dream
3:47a reality.
3:49My mom has worked extremely hard [music]
3:50her entire life, uh
3:52you know, for me and my sister to be
3:54where we are today.
3:55My mom's [music] only dream is to just
3:57own her own house.
4:00Which does not even require much. It's
4:02quarter of a million dollars, 250,000.
4:04I could possibly regret that forever
4:07if I don't work harder enough [music] to
4:10just
4:11get her that little thing that she has
4:12dreamed about. I I really [music] don't
4:14care.
4:15I don't care for a house. I don't care
4:16for a car. I just care for that cuz I
4:20it's in me for me to pay back uh
4:23people that have stuck with me when I
4:25needed it the most. And if anything,
4:27she's the only person.
4:28Last but not least, it's kind of like a
4:30little bit personal. People that have
4:32been against us, it's not really to show
4:33them that they're wrong, but just to
4:34prove myself that I could go a lot
4:36further.
4:36>> you're right.
4:37>> Yeah, sure. [laughter]
4:39>> No, I dig it. Okay, cool. This seems
4:41pretty straightforward. I've got a I've
4:42got a handful of things that I think we
4:43can do.
4:48So, let me just walk you through how I
4:50how I kind of think of this large-scale.
4:51So, I think we'll we'll start with the
4:53offer, all right?
4:55And then I want to work on the
4:57sales process a little.
5:00And then
5:01we'll talk about this realtor's thing.
5:05And then we'll go
5:07traffic.
5:09So, if you think about fixing a
5:10business, I always fix things from back
5:12to front. So, it's like the thing you
5:13sell, how we sell it, who we're going to
5:15sell it to, and how we get them to find
5:16out about it, right? Okay, if we're
5:18talking like big picture basically, you
5:20will become a commodity if you're using
5:22the exact same measured unit, right?
5:25You're like cuz they're they're just
5:26asking, "What's the hourly?" I'm
5:27guessing a lot of people you get on the
5:29phone, right?
5:29>> What's the price? Yes.
5:30>> Right. And so, I think if I were you, I
5:33would break that frame and just say, "We
5:35don't do it by hourly. We just do it by
5:37job."
5:39And I can give you an estimate because
5:41at the end of the day, cuz how someone
5:42might respond back, "Well, I just need
5:43to know what the hourly." It's like, "I
5:45could have the guy drag ass and take all
5:46day." You'd rather get done quickly
5:48rather than take a long time, right? And
5:50you want it done well. Well, that's what
5:51we'll do.
5:52>> Yeah.
5:53>> Cuz that'll get you out of this kind of
5:54like it's 120 here and they're at 125.
5:57It's just like it doesn't matter cuz
5:58they could take 8 hours and I could take
5:59four.
6:00>> Yes.
6:00>> You know what I'm saying?
6:01>> The only issues with that is that a lot
6:03of these people would like to tell you
6:04what they have and you can't really
6:05estimate that if you do a flat rate.
6:07>> Think about like this, like
6:09in order to scale the business
6:10long-term, it's like we want to have
6:12something unique
6:14that's that's somewhat right if we can.
6:17Now, if we're also selling a
6:19commoditized product, which is just
6:21sheer labor right now plus a truck,
6:23there's not a lot of differentiators
6:24there besides maybe like pink. I'm
6:26trying to think of a way to get you out
6:28of the hourly race if possible. Look,
6:30cuz right now you're servicing kind of
6:31the lower end of the market, right? If
6:33you're if you're servicing renters and
6:35kind of smaller homes. Because like I'll
6:37tell you, when I moved
6:39I honestly have no idea what I paid, but
6:40I'm guessing it's probably in the
6:41neighborhood of like $25,000. I have no
6:44clue. But the idea was I'm going to
6:46leave my house and then I'm going to
6:48show up at the other house and it's
6:50done.
6:51That was what happened.
6:52>> Yeah, that's for the rich.
6:53>> Yeah. No, exactly. Well, have you heard
6:56my stuff?
6:56>> Yeah, yeah, yeah, yeah, of course.
6:58>> You know where the money is?
6:58>> Yeah, yeah, exactly. Sell to the rich.
7:00>> Right. And so my point is not like I'm
7:02not saying you all of a sudden overnight
7:03become ultra diamond, you know,
7:05whatever. But if you what you realized
7:07was the realtors
7:09it's not that the realtors are special,
7:10it's that they're get you got a taste of
7:12selling to people who have more money.
7:13>> Of course.
7:14>> Right. And so you made way more profit
7:16on those deals than you did on the on
7:17the kind of generic. And so that's why I
7:19asked about the offer because to me
7:22there should be a white glove
7:24offer. To me, that's what's missing.
7:26>> Mhm.
7:26>> So I thought about that. I did it. Um it
7:29worked.
7:30>> Mhm.
7:30>> It worked a couple times, but then I
7:32kind of just turned it off.
7:33>> Okay.
7:34>> Why?
7:37Cuz it wasn't selling well.
7:38>> Okay, that's fine. Then the offer wasn't
7:39good. So
7:42I'm not I'm not thrilled right now.
7:44Um
7:45>> [laughter]
7:46>> cuz you're just like I'm a little bit
7:47more expensive and people get a little
7:49bit more value than they would with
7:51other people and it's very hard to
7:53claim anything that's different besides
7:55the trucks being pink and the guys being
7:58better.
7:59>> And no hidden fees.
8:00>> Sure.
8:01>> Cuz material is included like shrink
8:02wrap and moving buckets and all that
8:04stuff is included compared to other
8:05companies they would just throw an extra
8:07$600 at the end of the bill and you have
8:09to pay for it cuz you have absolutely no
8:10option. But they don't tell you that.
8:12>> Mhm.
8:12>> Until it's done. But people still see
8:14the hourly rate to be cheaper somewhere
8:16else it's what's going to save the day.
8:17>> No, I know. I know. I know.
8:21Don't love it. I'm going to shift gears.
8:23Let's talk about this realtor thing.
8:25So, why don't we say let's just for for
8:27fun for shits and giggles, right?
8:29>> Yeah.
8:30>> You can have a VIP moving level, right?
8:33And then you have your standard moving
8:34level. I think that the realtors would
8:36be better served. They probably don't
8:38care about the $250 cuz if they sold
8:39that house then they made way more than
8:41that it's irrelevant. They want the
8:42referral and they want the people to
8:44know that it was a great experience.
8:45And so I think you probably get way more
8:47referrals if you said I'll give
8:49everybody who you send a VIP service for
8:52the price of standard. That will
8:55probably mean more to them than getting
8:57$250.
8:58>> Oh.
8:58>> And then for them they'll be able to be
9:00like, "Hey, if you go through me he'll
9:01give you the the VIP level service at
9:03the at the standard rate."
9:04>> Got it.
9:05>> To me I think that's a lot more
9:06compelling.
9:07>> But what would the VIP be? Just what we
9:08create?
9:09>> Yes, let's make it up.
9:10>> Okay. Okay. Okay. Yeah, that makes
9:11sense.
9:12>> [laughter]
9:13>> In the cloud.
9:13>> Yeah, well I mean you could have offered
9:15unpacking and if everybody says no then
9:16that's that, right? Like it's like we'll
9:18even unpack it and then people might
9:19just opt out. If you know most people do
9:21then it's great. It's almost like a
9:22false offer.
9:23>> Okay.
9:23>> Because you know more about the the
9:24customer than they do which is the whole
9:26point.
9:26>> Or the VIP could be I can give you like
9:28movers with 10 plus years of moving
9:29experience that would take care of this
9:31entirely.
9:32>> Only reason I don't like that is from a
9:33model perspective that'll be more
9:35difficult to scale. And I don't know how
9:36much that will matter.
9:38So, I'll tell you a different version of
9:39this, which is like instead of doing 10
9:41years, it'd be like every mover has over
9:4350 moves.
9:44>> Okay.
9:44>> And so, I'll give you an example. So,
9:45like when I had my trainers at my gyms,
9:48anyone can be a trainer. Literally
9:50anyone can be. Like you, I have
9:51low-skilled labor.
9:52And then you can have a certified
9:54trainer, which they go through
9:55accreditations versus not. And you can
9:56also internally certify.
9:58>> Mhm.
9:58>> And so, what I did is I created three
9:59levels of internal certification. I'd be
10:00like, you're going to have a level three
10:01master trainer.
10:02>> Mhm.
10:03>> Most people are like, oh wow, that's
10:04awesome. But it's just like they just
10:05had to do some stuff. And for me, a
10:06level three was like they'd done a
10:07thousand sessions.
10:08>> Fair enough.
10:08>> Or whatever. And so, for you, you can be
10:09like you have a level three mover. So,
10:10we have different moving movers
10:12different for different skill levels.
10:14And so, you'll have all level three
10:15movers. Cuz what you're trying to do,
10:17when you're selling a commodity, you're
10:19basically sowing seeds of doubt against
10:20the competition. So, part of what you
10:22said was, well, they're charging 120 an
10:23hour, but that's because they're going
10:25to nickel and dime me over here. I'm not
10:26going to do that. That's basically
10:27sowing some seed of doubt saying, I'm
10:28actually different. Right? That's
10:29basically what you're doing. You're
10:30saying, we're not the same.
10:31>> Yeah.
10:32>> Basically, how many other things can we
10:33do there?
10:34So, we have speed, risk, and ease. Like
10:36so, speed, since you're charging hourly,
10:38is probably not going to be the thing.
10:39Now, you could do speed in terms of like
10:40we can come tomorrow.
10:42But they probably have a moving day that
10:43they like are planned out doing.
10:44>> A lot of times you do a last minute
10:45moves, and we charge a couple of little
10:47bit. Yeah. Oh, yeah, people call like
10:48today for today. It's like my movers
10:50bailed on me, and that's the reason why
10:52a lot of people would go with cheaper
10:53movers, and then
10:55>> Do you have a same-day premium?
10:57>> Um not premium. We kind of like to avoid
10:59this.
10:59>> no, no.
11:00>> Yeah, cuz like cuz sometimes they're so
11:02desperate for a job, so I'm like, yeah,
11:03whatever. I'll I'll just take it, you
11:04know.
11:05I know. I
11:06>> [laughter]
11:07>> Got it. Okay.
11:07>> Um
11:08>> Um okay, so you have the fee that that
11:10that other people are nickel and diming.
11:12And then so, then another a kind of seed
11:14of doubt, right? So, there's risk,
11:15speed, and ease. Right? And so, what
11:18we're hitting on with this kind of like
11:20master mover, if you will. Actually
11:21sounds kind of nice, master mover. Is
11:23the risk component. Which is, listen,
11:25believe it or not, a lot of my
11:25competitors, they can win on price cuz
11:27they're just literally going to take
11:28someone off the street. When I say
11:29literally, I mean literally. And then
11:30you don't know if they have a record,
11:31you don't know like what's going on,
11:33right? None of my guys are, you know,
11:35ex-cons and on Your Move for VIP, you
11:37get all level three master movers who've
11:38done at least 50 moves or 100 moves.
11:40Whatever, make make whatever you want,
11:41right? So, how does that sound in terms
11:43of the VIP? It's going to be around
11:45risk. So, it's like we're going to have
11:47this higher tier of mover
11:49and uh no there's no extra thing besides
11:52the labor and we're going to include all
11:53the materials.
11:54>> If you do full-service moves, that's
11:55like packing and unpacking. I love that
11:58a lot.
11:58>> Okay. So, that to me is what you give
12:00these guys, the realtors,
12:03and you already use master movers as is,
12:06right?
12:06>> Yeah.
12:07>> So, there's really no change between
12:09that and standard. It's just that if you
12:10have standard, you have the option of
12:11using cheaper movers. If all your guys
12:13are already equipped master movers, then
12:14great. So, I'll just go here, but
12:16basically our VIP,
12:18right, is going to be pack
12:20plus master, you know, master movers
12:24plus material.
12:26And then standard,
12:29I would say it's still pack,
12:31but it's just not master movers plus
12:33anyone.
12:34So, that's probably not too big of a
12:36cost for you.
12:37>> For me, no.
12:38>> Okay, perfect. Well, then that's about
12:40the $250, but this feels significantly
12:42more premium
12:44than just doing a 250 bucks off or 250
12:46back to the realtor.
12:47>> Okay.
12:48>> Do you like that better?
12:49>> I love that a lot.
12:50>> Okay. So, also when you're when you're
12:52getting on the phone, I think you can
12:53just basically have these
12:55these tiers. Now, I would start with
12:56VIP.
12:57>> That's how you would sell it.
12:58>> Yeah.
12:58>> To anybody or just
13:00>> No, I would do it to everybody. I always
13:01start high.
13:02>> Okay.
13:02>> Cuz the thing is is when you get on the
13:04phone with somebody who has money, they
13:06don't care.
13:07They just want it done.
13:08>> Yes, I agree.
13:09>> And so, you have to give that up that
13:11person the opportunity to buy. Now, as
13:12soon as someone says, "No, I'm on a
13:13budget." You're like, "No worries, then
13:14just do standard."
13:15>> Perfect.
13:16>> So, most people use this, but if you're
13:17on a budget, we have this. And then if
13:18someone still objects, then you
13:19basically have to walk down the seeds of
13:21doubt. So, I
13:22this feels like it's worth diving into a
13:23little bit. The issue that you brought
13:25up is that Yelp you didn't like and Ads
13:27you didn't like, right?
13:28>> Right. So, to me that's not a leads
13:30issue, it's a sales process issue.
13:31>> Okay.
13:32>> So, we have to make you different in
13:33some way compared to everybody else.
13:35Okay. So, we have our factors. So, we
13:38have Master Movers, we have that, we
13:40have materials, we have that. Do you
13:42have insurance or anything like that?
13:44>> Yeah.
13:44>> Okay. Do you talk about it?
13:46>> insured.
13:47Yeah. I mean, as an operator moving
13:49company, you're supposed to have license
13:50and insurance.
13:51>> Great.
13:52Great. These are These are These are
13:53elements, right? We We need We need
13:55components to the offer, right? Cuz they
13:57Again, think risk. So, this is risk,
13:58this is ease, this is risk. What else do
14:01we have? We have speed.
14:03So, I do think that if someone does same
14:06day,
14:07you can just say we have a same day
14:09surcharge of 10%.
14:10>> Okay.
14:10>> Just cuz I want you to get used to
14:12charging it, because speed is one of the
14:14biggest things people pay for. If
14:15someone had someone back out,
14:17and they need something to be moved
14:18today,
14:19that's when you can charge.
14:20>> Yeah.
14:20>> Right? And this might not sound like
14:22much, but again, when you hit 20
14:23locations, this will add up. Because
14:25your margins aren't going to be 70%. You
14:27might be at 30, and all of a sudden a
14:2810% lift, or 20% lift, all of a sudden
14:31you're like, "Oh, shit." And it's all
14:31margin.
14:32>> Yeah.
14:32>> Right?
14:34So, I'll say a date premium, start at
14:3610%, but I want you to go to 20% over
14:38time.
14:39And you can basically keep moving up
14:40until they say no. So, these are
14:41different components. We have our A, we
14:43have B, we have C. See, we're getting
14:45We're getting little pieces that we can
14:46talk on the phone, right?
14:48>> I have not tapped into every single
14:50piece of this business. I'm not even
14:51capped out yet. I haven't even done the
14:53obvious stuff that other businesses are
14:55doing.
14:56Um that's why I think I really have a
14:58huge advantage that we could grow the
14:59most. And that's really the only
15:01advantage that we have is that we're
15:02small enough to scale the most.
15:12>> Okay. What about a cap?
15:14>> Meaning?
15:15>> It's not going to cost more than this.
15:17Let's say they do an estimate.
15:19>> Yeah.
15:19>> How likely is it that they're off by 2x?
15:22>> Not by 2x, no.
15:23>> Okay.
15:24>> But at least a 30%.
15:26>> Okay. So, I mean, what if we say 50%?
15:29So, I'm saying I want to give you a
15:29buffer. I'll tell you why I'm saying
15:31this. If you get on the phone and say,
15:32"Hey, did the other guys give you a
15:34cap?" And they'll be like, "No."
15:37And you're like, "Oh." Well, yeah,
15:39that's how they're going to get you. And
15:40then they're like, "Wait, what?" And
15:41you're like, "Oh, yeah. I mean, like, I
15:43can just take 20 hours to to move one
15:44thing from here to there. There's not
15:46much you can do when somebody's on
15:47site."
15:48And they're like, "Oh, I didn't really
15:49think about that." It's like, right. So,
15:50we'll be this, and we won't exceed this.
15:53>> Got it. Okay.
15:53>> Unless there's a huge issue when we
15:55arrive on site, but that's basically I
15:57agree the type person who's going to be
15:58lying about this. No, okay, great. Then
16:00it's fine. So, it will not be more than
16:02this.
16:03>> Got it. Okay.
16:03>> And then that way, cuz again, we're
16:05trying to sow seeds of doubt. Like, if
16:06they have two things and they're both
16:07100 hour 90 an hour, they're going to
16:09pick the 90.
16:10>> Of course, yeah.
16:10>> So, we have to be like, "Oh, okay, got
16:12it. So, what insurance do the other guys
16:14Oh, they didn't mention. Oh, yeah. Well,
16:16for sure, if you're uninsured, then
16:17yeah, I mean, that's that's a cost, but
16:19I'm assuming is nothing you have
16:20valuable?"
16:21>> Uh, you know, like,
16:21>> "No, I have I have some valuable things
16:22that matter to me." It's like, great.
16:23Well, we have insurance um that we can
16:25include. Do you know what I'm saying
16:26with with this sale here?
16:27>> Yeah, it's going to come It's going to
16:28come down.
16:29>> Yeah, and we're going to We had to get
16:30this part here so that when we move to
16:32the sales process,
16:32>> brain is going like all over.
16:34>> Yeah, yeah. I hear you.
16:35Okay. But fundamentally, cuz this is
16:37going to ladder into this, but we have
16:39our VIP, and we have our standard. We're
16:40going to start everyone here.
16:42>> Yeah.
16:42>> And then we're going to If they say,
16:43"I'm on a budget," we'll say, "No
16:45worries. We can do this for you."
16:46>> Yeah.
16:46>> Okay.
16:48You all right?
16:48>> Yeah, yeah, it's opening up my mind.
16:54>> All right. So, sales process. So,
16:57you were able to talk to all the people
16:58who came in on the on the Google leads,
17:00right?
17:00>> Yes, everybody.
17:02Immediately.
17:03>> The main objection we have is always
17:05price.
17:05>> It's always price if they don't know
17:07what else to talk about. Customers will
17:08always go to price if you don't give
17:10them any other variables to consider.
17:12>> Okay.
17:13>> And this is what we're trying to do.
17:14Like, that's the point of the offers
17:15book. It's like, how do I How do I break
17:17these two things of price and value?
17:19>> Yeah.
17:19>> Right? If if there's apples and apples,
17:22you want apples and oranges. And even
17:24though you build the same way, we it
17:25like fine, I get that. Can we still make
17:27it different enough on all these other
17:29things that they're like, [ __ ] I didn't
17:30even think about that.
17:31>> Yeah.
17:32>> So, when someone when someone calls in,
17:36what's the first question you ask them?
17:38>> The day of the move. When are they
17:40moving? Just to make sure we have
17:41availability.
17:41>> Okay. So, you ask for the day, and then
17:43let's say that you're empty. Now what?
17:45>> Now, I do ask how much stuff they're
17:47looking to move. Like, what's the size
17:48of the move?
17:49>> Okay. And you say the size of your
17:50what's the square footage of your stuff
17:52or what?
17:52>> No, how many rooms? We go by the rooms.
17:54Like, is it a one-bedroom, two-bedroom?
17:55And then the time is For example, it's a
17:57two-bedroom. I'm like, great. Like, what
17:58are we looking to move?
17:59>> Yeah.
17:59>> And then I ask stairs or no stairs just
18:01to have an idea like like how long the
18:03job will take, and then where the truck
18:05is going to be parked.
18:06>> We still want to walk through these
18:07other pieces, which is okay, got it. Do
18:09you care about the the qualifications of
18:11the movers that you have?
18:13They're like, I never thought about
18:14that. You're like, oh, okay, cuz a lot
18:15of the guys uh they have like ex-cons.
18:17Some people are like very uncomfortable
18:18with that. Believe it or not, it's
18:19actually 20% of the industry. I put some
18:21stats, right?
18:22>> Yeah.
18:22>> Um all right, so yeah.
18:23>> No, no, for sure. Right? So, it's like,
18:25do you care about the Well, I don't want
18:26ex-cons in my house. And you're like,
18:27great. So, and you're you're in your
18:29mind you're like, okay, they want master
18:30movers. You're like, okay, so um do you
18:33already have all the materials?
18:35To get all this stuff packed up and all
18:36that? Oh, no, you don't? Okay.
18:38>> Packing.
18:38>> Got it, right? And you're like, okay.
18:40You're like, got it. So, do you have
18:41anything that's valued over $500?
18:44>> Obviously, yes.
18:45>> And they say yeah, and you're like,
18:46okay.
18:46>> Insurance.
18:47>> You're just listening, right? Yeah, and
18:48you're like, okay. Now, is this isn't
18:50today. So, if it was if if it was today,
18:52then we'd include the day premium. If
18:53it's not, then we're like, okay, got it.
18:55So, this is what we can do. We're 165 an
18:57hour, and if you go with us today, I'll
19:00include the master movers, I'll include
19:02materials, and I'll include the
19:03insurance.
19:05>> If they do full if they do a full full
19:06service like packing. If we get packed
19:08with them, then we can include the
19:09materials for free. So, that is the
19:10offer you were talking about earlier.
19:12>> Okay.
19:13>> And if they're like, "Oh, I can't do
19:14that." Then it's like, "Okay, we can
19:15still do it, but we're going to be at
19:17standard. What's your I don't If this is
19:19going to be the new VIP, make this one
19:2095, make this one 65. Whatever." Okay.
19:23Uh so this is VIP, and this is going to
19:25be standard, right?
19:27You like that?
19:27>> Yeah, I love it.
19:29That's fantastic. It's awesome.
19:30>> Cuz that way that way again, we're
19:32already having a conversation with more
19:34detail.
19:34>> Mhm.
19:35>> I just want to give you bullets so that
19:37again, we want to get on the phones cuz
19:39how many
19:40How many are you losing to price?
19:42>> A lot. Like 40%.
19:44>> Yeah. Okay. So So this is important.
19:46Right. So we want to make sure that they
19:49don't think that they're getting the
19:51same thing for less. We want them to
19:53know they're getting way less for less.
19:55>> So the way we've been selling is that if
19:56they kind of hit us with the price
19:57issue, I'm like, "Hey, if you find
19:59anybody in this industry in San Diego
20:01right now that would match our reviews,
20:03we'll beat their price." And cuz they
20:04don't exist. But I can't That's not
20:06>> but that's not They're like, "Yeah, but
20:07whatever. Yeah, yeah, yeah."
20:09If you can find somebody else that does
20:10insurance, has has level three movers,
20:12uh includes materials, you know, it has
20:13a cap, by all means uh I'll I'll price
20:16match it. But like, I've never been in
20:17the price matching game my whole life.
20:19I'd rather just be in the value
20:20surpassing game.
20:21Which is if these things matter to you,
20:23we're the only shop in town that does
20:24it. If you don't care about having
20:26ex-cons in your house, and again, I have
20:27no beef with ex-cons, but people have
20:28perceptions, right? Uh if you have no
20:30issues with ex-cons and you plan on
20:32doing the packing yourself and you're
20:34okay with them potentially breaking it
20:35because they're not they're not insuring
20:36anything, which honestly, it happens in
20:3825% of moves.
20:40>> Yeah.
20:40>> And if you're the three out of four,
20:41it's great. If you're the one out of
20:42four, it's pretty tough.
20:43>> Yeah.
20:44>> Right? And if you have no cap and you
20:45don't care that cuz I can come in at $10
20:47now if you want, I'll just take a week.
20:50>> [laughter]
20:51>> That's fair.
20:51>> Again, it's like we have to We have We
20:52have to explain the whole the whole
20:54system, right? And so what this is
20:55called is I call it shifting from local
20:56to global. Right? So like you're
20:58thinking about this.
20:59>> I am.
21:00>> I'm thinking about this. Not me, but the
21:02the consumer, right? And so all of a
21:03sudden you give them way more variables
21:04than they thought about because you know
21:05more about it than they do. And that's
21:07point of a good sales process. As
21:09they're like, I didn't even think about
21:10these things. And I was like, right.
21:11That's okay. That's what education is
21:12for. I'm educating you right now, right?
21:14And so, this is what it sounds like you
21:16really want, and that's what I can
21:17deliver for you. Cuz at the end of the
21:18day, if you get everything on time,
21:20nothing breaks, you have a great
21:21experience, I was like, is that worth
21:23the extra 50 bucks?
21:24>> My god, yes.
21:25>> Right.
21:26>> It's like
21:27>> Oh, good. Good, man. So, this is what I
21:29Once you walk through it, it's like,
21:30this will get you the the deals you're
21:32losing. You're losing to price because
21:33they have nothing else to say.
21:36They're doing apples to apples. You're
21:37like, no, it's apples and oranges.
21:38But it's totally fair that they're
21:40they're charging less because they're
21:41not doing all this stuff. Which, by all
21:42means, if you want us to not do that
21:43stuff, I can't because I have to have a
21:45level of service and you see our
21:46reviews. I'm not willing to I'm not
21:47willing to sacrifice my reputation for
21:49that. Some people are, though. Cuz
21:50they're they're in and out of the
21:51industry.
21:52>> Yeah.
21:52>> They they come in, they just they just
21:54start moving, you know, for short
21:55periods of time, and then they get out.
21:56>> Yeah. I'm here for the long run.
21:57>> Right.
21:58>> Yeah.
22:06>> Now that we have a better idea of what
22:07our offers are, what we need to say is,
22:10I would include we'll give them a free
22:11VIP upgrade or free white glove, if you
22:14want to use that term,
22:15for anyone who you refer just so they
22:16like think good things about you.
22:18>> Okay.
22:18>> They need to gain from referring you.
22:20Their customer has to see them better
22:22because they have the hookup, right?
22:24People go to realtors because they're
22:25you're supposed to know the area better,
22:26and they've done this more times than
22:27they have, right? If you knew
22:28everything, you wouldn't need a realtor
22:29cuz you already know the houses, you
22:30already know how to do the deal,
22:31>> [clears throat]
22:31>> right?
22:32So, saying, oh, my my guy I've got an
22:34amazing moving moving company, they give
22:36all my customers free upgrades. That
22:38makes them look great,
22:39right?
22:40>> Got it. Okay. I love the offer. So, we
22:42we did try um SMS, we also tried emails.
22:45Emails did not get us absolutely zero
22:47conversion.
22:48>> That makes sense.
22:48>> Yeah. So, SMS is what would give us some
22:50traction, and then what we've been
22:51trying lately is that we would just go
22:53follow them on Instagram.
22:54>> I think following and DMing would
22:55probably have a higher conversion than
22:57anything else.
22:57>> we tried is that SMS, if absolutely any
23:00response in a positive way, even like
23:02liking the text, I would find that
23:04person on Instagram, like go look them
23:05up, and then follow them like, "Hey, I
23:07saw you liked the message. Would love to
23:09tell you more about what we have going
23:10on."
23:10>> I mean, I think start there, but I would
23:12take that list,
23:14feed it into AI,
23:16and have an agent search online, find
23:18the Instagram, and then follow them from
23:19my account.
23:20>> Okay.
23:21>> And so, every day I would DM 10 or 20 of
23:23them, because you can't you can only,
23:24you know, DM so many. Now, if they
23:26follow you back,
23:28then you can DM as many times as you
23:29want, right? So, we could do There's two
23:31two two considerations. So, one is we
23:32could say follow everyone, and then
23:34anyone who follows you back, then you
23:36DM. That's one option. Or, you just
23:39automatically DM 10 or 20 cold
23:41independent of whether they follow back.
23:42>> Okay. So, you would actually do massive
23:44outreach instead of just like picking up
23:45the top 100 producers in San Diego?
23:47>> I mean, we should do that. Should mean,
23:49start there.
23:49>> Yeah.
23:50>> That's when my Okay. My wife could have
23:51just up to actually take care of this
23:52realtor.
23:53>> So, you're going to do your SMS. This is
23:55what you're currently doing. I don't
23:56think you necessarily change any of
23:57that. That's fine. The second is the
23:59follow
24:02to DM.
24:04And I would say like, "Do you know
24:06anyone? Uh we have a realtor
24:09special,
24:11which is VIP upgrade."
24:14>> I like that word upgrade.
24:16>> Yeah.
24:17Or white glove, whatever you want to
24:18Yeah.
24:18>> Yeah. Yeah.
24:18>> And so, that would be my auto DM back.
24:20Now, the third thing that I would do,
24:22because this is like
24:24a lot of the realtor offices, the
24:26brokerages, right? They have 5, 10, 20
24:28agents, right? I would want to go to the
24:30head of the brokerage and say, "Hey,
24:31I'll do a brokerage level deal for you.
24:33We'll give everyone who's an agent of
24:34yours VIP, like for free, if we can just
24:37be the first people people first people
24:38you call when you have a move."
24:40And ideally, it's like, "Can you
24:41integrate us into your packet?" Because
24:43that's the thing is like, they give
24:44people packets for Right, exactly. So,
24:45it's like, "I want to be the only one in
24:48the list, and I'll give all of your
24:50customers VIP upgrade. You can look at
24:51our reviews, really good."
24:53That's where, because you want
24:54integration.
24:55Because as soon as you get integrated in
24:56their sales process, as long as you
24:57could do a good job, they'll just
24:58they're not going to look anywhere else.
24:59>> Yeah. I have two that I can like
25:01literally call up today and set up an
25:02appointment for this upcoming like
25:04tomorrow.
25:04>> Yeah, cuz like one brokerage might sell
25:07>> 20 agents.
25:08>> Right. Well, yeah, 20 agents. And then
25:09each agent might sell, you know, let's
25:11say a house a quarter on average. I'm
25:12just making it up, right? So, it's like
25:14every brokerage is five houses a month.
25:16>> Okay. That's $15,000.
25:18>> Right.
25:18>> On an average of 30 grand.
25:20>> Per. Right? [laughter]
25:21And so, it's like, okay, well, how many
25:23brokerages are there? Plenty.
25:24>> A lot.
25:25>> Right. And so, I'd rather you sell one
25:27to sell 60 a year.
25:29>> Mhm.
25:29>> Like that's what's worth your time. Like
25:31let Jacob take the individual calls, but
25:33you should be going out and getting the
25:35brokerage who's going to get you 60
25:36houses a year each. And then like every
25:38week you bring another brokerage on, and
25:39that means like every week you're
25:40bringing another five deals a month on.
25:43And it stacks.
25:44>> Right.
25:45>> And then what's going to the next bottom
25:46neck is going to be you're not going to
25:47be able to manage the relationships.
25:49It's not there yet, but that's what's
25:50going to happen. And so, you're going to
25:51need to hire one person to full-time
25:52manage the realtors.
25:54>> Developer.
25:54>> Yeah. Exactly. It's just a farmer.
25:56>> My wife is going to be doing that for
25:57now.
25:57>> Great.
25:58So, I think we target brokerages.
26:03Because this is the long-term play. Like
26:04you like it's good to have the reviews
26:06you do, and that's going to continue to
26:07compound and all that stuff.
26:08>> [clears throat]
26:08>> But, where I'd like you to get is in the
26:10future at some point you start turning
26:11deals down that are too small.
26:13>> Like one bedrooms and small deliveries.
26:14>> like, it's just not
26:16>> And
26:16>> We're not there.
26:17>> Yeah.
26:17>> I'd like you to get there. Because there
26:19will be a day where you don't do deals
26:20under 3K or under 5K.
26:23Yeah.
26:23>> They exist. I know. I I like trust me. I
26:25I have to believe that they exist.
26:26>> They do exist. I promise you.
26:28Okay. So, we have our offer. We have our
26:30VIP and our standard. Now, what's the
26:31key thing to differentiate us? We
26:33itemize all the elements inside of the
26:35sales process. So, again, we can further
26:37differentiate from the hourly. If we're
26:38going to stick with hourly, then we
26:39still have to have as many different
26:40colors as we can here. All right?
26:42>> Okay.
26:43>> Then, um and also, I'm very flexible on
26:45this. This might be able to be 225. Like
26:48like continue to keep pushing this VIP
26:49envelope until people stay say no, cuz
26:51you always have your backup. You can
26:52always fall back on a standard.
26:53>> Standard, yeah.
26:54>> But the people who have money will just
26:56they'll spend more. It's just it's a
26:57different monster.
26:58Uh realtors we keep doing this, but I
27:00think these two will give you more
27:02leverage. This one is the biggest one.
27:03>> Okay. Can I ask one question?
27:05>> You want to show up in person here.
27:07>> How many times?
27:08>> Here's how I do it. This is the process.
27:11Once you get any realtor thing, you need
27:14to show up in person to their office to
27:16meet all the other realtors in their
27:17brokerage. Come come with donuts, come
27:19with whatever. Meet the head guy and say
27:21like, I had you know, I set up Kelly was
27:24was that a good experience, Kelly?
27:25Great. I can give every single one of
27:27your agents VIP upgrades for all of our
27:30moves for free. That's on me. Just cuz
27:33she was so great to work with and it
27:34gives you something that you can kind of
27:36have as a as a nice experience.
27:38>> Yeah.
27:39Okay.
27:39>> What was the question?
27:40>> The question is about the SMS like cuz
27:42now I have a list about 12,000 agents.
27:43What do you think the first SMS should
27:45be like? Is it should it keep it the
27:46same or it doesn't really matter?
27:48>> you're going to you're going to see what
27:49the response rate is.
27:50>> I wouldn't send the same thing to all of
27:51them.
27:51>> The smart cookie move
27:53would be look up the agent.
27:56AI can do all of this.
27:57>> Yeah, yeah.
27:57>> Do all of this AI can do.
27:58>> I mean it's cloud, yeah.
27:59>> Yeah. So, hook up
28:02AI to the list, create an Excel sheet
28:05that has personalized information.
28:06>> Okay.
28:07>> And then have a template for it to then
28:09out output what you think or what it
28:12thinks the personalized first text
28:13should be and it'll give you the whole
28:14list of all 100. You read them real
28:16quick to make sure that they sound like
28:17they make sense and click go.
28:20>> Got it.
28:20>> Cuz then they could all be personalized.
28:21That's what I would test against just
28:22the generic opener.
28:24>> Got it.
28:25>> And if you want to be wild, you could
28:26probably Are you doing it from a you're
28:27doing it from a true SMS, right?
28:29>> No, I was using Mailchimp.
28:31>> Is that does it have like a
28:32an iPhone like a blue thing?
28:34>> bubble, no.
28:35>> Okay.
28:35>> Would you recommend the blue bubble?
28:36>> I would give it a shot. So, I would say
28:39for
28:40blue
28:42bubble.
28:43And I would say just test it cuz it's
28:44going to be more,
28:45but if you have a higher response rate,
28:46then it's worth it.
28:48>> With an With an area code that's local.
28:50>> Yeah. And then five for this SMS here.
28:52Oh, I got to put it up over here. Is AI
28:54personalization
28:56for that first message. It'll also make
28:58it less likely that you get put into
28:59spam.
29:01>> Perfect.
29:01>> Because if the carrier see you send that
29:02same thing to 100 people,
29:04they they spam the number. Yeah.
29:13So, traffic. So, there's a couple couple
29:14smaller things that I I think are worth
29:16doing. So, right now, how are you
29:17getting the reviews? What's the review
29:19process?
29:19>> So, as soon as we finish the move, the
29:21guys just ask for a review immediately.
29:22It would be doing me a huge favor. Takes
29:2330 seconds. Helps us tremendously.
29:25>> So, what's the script for the guys to
29:27ask?
29:27>> If you guys think we did a great job,
29:29then would you mind leaving us a
29:29five-star review? We'd highly appreciate
29:31it. Takes 30 seconds.
29:32>> So, I would just add one little piece
29:34in,
29:35which is um
29:37there's probably a leader on each job
29:39site, right?
29:40>> So, the foreman goes over and says,
29:42"Hey, um
29:43you know, was this a good experience?"
29:45If yes, "Okay, well, um
29:47the guys get a little spiff from
29:48ownership for five-star reviews. So, if
29:50it if it means anything to you, it'd
29:52mean a ton to those guys."
29:54And then you can just take who got the
29:55most reviews at the end of the month and
29:56give 100 bucks. It doesn't matter. But
29:57like, the likely that they'll just leave
29:59a review, six out of 10. If it's like
30:01these guys it actually makes a
30:02difference for them, the likely that
30:04they'll leave it way higher. And it's
30:06better when it's not you cuz you can't
30:07be like ownership. I mean, you can, but
30:09like
30:09>> Yeah. This is
30:10>> Yeah, yeah. [laughter] Right.
30:11>> That's true.
30:12>> But it's easier for the foreman to just
30:13be like,
30:14uh the owner gives um an extra spiff to
30:17the guys um if if they get a five-star.
30:20>> Okay.
30:21>> So, one is foreman review.
30:26Foreman owner.
30:28I'll say spiff. How about that?
30:30>> Perfect.
30:31>> And then two, do you do any social
30:32media?
30:34>> Barely.
30:35>> Okay. So, I'll bet you you're losing
30:38to people who have better socials than
30:40you are because obviously search is one
30:41thing, but the next thing you look at is
30:43well, let me see if I can find these
30:44people on social and that'll make a big
30:45swing. And so,
30:47can you maybe have the foreman do like a
30:50before and after?
30:51>> Um like house full and house empty?
30:53>> Yeah. And then also, empty to full.
30:56So, basically it's four it's it's before
30:58after at site one, before after at site
31:01two, clipped into one.
31:02>> Okay.
31:03>> Cuz you can just post those. Just before
31:04and afters. And if you get the review,
31:07put the five-star review at the end.
31:08>> Got it. Okay.
31:09>> So, it's like you're posting before and
31:10after review. Before and after review.
31:11Before and after review.
31:12>> Got it. Okay.
31:13>> So, the organic is before, right? After.
31:18At site one, and then again,
31:21before after at site two,
31:24and then review.
31:26So, it literally shows the full
31:28Right. End to end. Like this is what it
31:30was. This is what we did. This is where
31:31we went. This is what happened. And they
31:33said it was awesome.
31:35>> Over and over and over and over again.
31:36Okay.
31:37>> Yeah. And then if you can,
31:39I would get the realtor reviews cuz
31:40that's going to matter more again for
31:43um
31:44And when I say reviews, I mean really
31:45testimonials.
31:46>> Like on a video.
31:47>> Yeah.
31:48>> Okay. Yeah, I can I can definitely do
31:50that. Yeah.
31:51>> Yeah, and also, because the thing is is
31:53the bigger the bigger your organic
31:55following gets, right? When you go to
31:56that brokerage and you say, "Hey, we're
31:58good movers. We've been in the area for
31:59a while. We just made a partnership with
32:01XYZ Realty.
32:03Um if you're looking to sell a house,
32:03check it out." Like they love that. It's
32:05free promotion for them and you just
32:06throw it in if they do the deal with
32:07you.
32:08>> Beautiful.
32:08>> Now, when you have 100,000 followers
32:10that are local, makes a bigger
32:11difference than when you have one. So,
32:13cuz big picture,
32:14if if we need the the business to grow,
32:16right?
32:17One is we're having a more premium
32:19offer. So, for the people who want to
32:20spend money, we allow them to do it.
32:23Right?
32:24>> And we're including things that other
32:25people are not mentioning. Which are
32:27these elements.
32:28Which then when we get into the sales
32:29process, we ask them no more questions,
32:30but then we ask their preferences,
32:32which they didn't think about, to
32:34differentiate our our versus everyone
32:35else's.
32:36>> Mhm.
32:36>> And then we can step down from VIP to
32:39oh, you don't actually care about these
32:40preferences. Oh, you're more on a budget
32:41and you don't care about that stuff,
32:42fine.
32:43Cuz I promise you're not going to find
32:44these things at a different price.
32:46Got it.
32:48Then with our realtors, we're adding in
32:50the personalization for the AI. This is
32:52going to be more lead gen.
32:54This is going to be big, especially when
32:55it's paired with these, right?
32:58Brokerages is what I think you should
32:59do.
33:01This is the highest leverage thing that
33:02you can do. Is you go and get 20 agents
33:04at a time. As soon as you get one
33:05realtor who responds back, I would go in
33:08person.
33:09Got it.
33:10Because then it's like you don't just
33:11get them, cuz they're already a unit
33:12that can send you business every month.
33:14But they have five other people or 20
33:15other people in their brokerage that
33:17would be what I would go. That's this is
33:18my my big 20X lever. This is just to
33:21enhance that. This is the this is the
33:23smallest piece of this. I wouldn't even
33:24obsess about it, but these are the
33:25bigger ones. Got it.
33:27So we can just boost the guys reviews,
33:29just run the Spitfire.
33:31And then from a long-term perspective,
33:33we can build up our organic doing before
33:35and afters
33:36um in every single site with a review at
33:38the end.
33:39I think we do all this stuff.
33:41This is going to be your
33:44your biggest one.
33:45That's the biggest lift for you. This is
33:47probably going to be like this these
33:48guys are going to be your second biggest
33:49lift.
33:51And then this whole sales process that I
33:52outlined here is going to help you win
33:54those other 40% of deals.
33:56Long-term that'll compound too.
33:58>> Thank you so much. Appreciate you.
34:00>> Yeah, congrats.
34:06All right, see here. So if we're looking
34:07at where you're at on the scaling road
34:08map, you're between three and four,
34:09mostly on the four side cuz you got six
34:11employees. You're acting as a manager,
34:13right? It's your first full team.
34:14And so from a product perspective, you
34:16were saying yes to everyone who would
34:17pay.
34:18>> Yes. I mean, this spread, you know.
34:20>> Right. No, you're good. This is the
34:21transition. You were getting feedback
34:23from different customers, so you were
34:24like, oh, do I do the cheap thing or do
34:25the expensive thing? I've got these very
34:26different. So to graduate, we have to
34:28specialize the product which creates our
34:29V2 which is the VIP, and we price to
34:31serve that richer customer.
34:32>> Mhm. Score.
34:34>> And just for for the magic of the
34:35audience here, it's not like I I had
34:37this and I wrote this after we talked.
34:39>> No, I it put me here when I did the
34:41whole thing with line. It put me here.
34:42Yeah,
34:43>> But now you're here, right?
34:44>> Yeah.
34:44>> From a marketing perspective, you're
34:45talking to many unqualified leads, which
34:46is what we're dealing with, and so we
34:48have to make more content, which is what
34:49we're doing on the before and after
34:51side, right? And we're adding more
34:52qualifications and friction, right?
34:54Which goes into
34:56these elements
34:57of what we can do to kind of
34:58differentiate what we're selling.
35:00Which from a sales process, speed to
35:01contact. Now, you haven't had a drop yet
35:03cuz you still need to get more lead
35:05volume in, right? And so we have to
35:07start tracking a little bit more on this
35:09side
35:09>> Yeah, yeah.
35:10>> than you probably are. Now, from a
35:11customer success perspective, um you've
35:13been doing fine, but as we scale,
35:15quality is going to be that's going to
35:16drop. And so to move from here to here,
35:19we're going to have to have a quality
35:20assurance loop that's going to happen.
35:21That's not a problem yet, it's going to
35:22be.
35:22>> Okay.
35:24Thank you so much.
35:25>> Appreciate it. Thank you.
35:25>> This is great. Thank you.
35:27Just looking at back at all these other
35:28business owners, looking at them, I'm
35:30like, they're bigger, they're very
35:31mature. I can't tell that they have
35:33tapped into some pieces of life that I
35:35haven't gotten to.
35:36>> And do you for sure [music]
35:37think that Naz has youth on his side, so
35:42full of energy, and so full of [music]
35:44optimism and excitement, and definitely
35:46strikes me as an action taker.
35:47>> He was very positive, [music] very
35:49enthusiastic, and very young. That was
35:51my first impression.
35:52>> His his niche is super accessible,
35:54especially where he's at, so I think he
35:56can he can really have a lot of success
35:58in what he's doing.
35:59>> I think the biggest advantage that I
36:00have out of everybody is that I'm small
36:02enough that I could grow the fastest.
36:06>> [applause]
36:11>> THE IDEA BEHIND THIS is who do we want
36:15to scale with over the next year versus
36:18necessarily where someone could
36:20potentially kind of fall off. The
36:22business is very straightforward.
36:25I think the
36:27biggest thing that I don't like about
36:28the business is I hate selling hourly
36:31with a vicious passion.
36:33And so I would do everything in my power
36:36to
36:38transition to only these realtors and
36:41only selling by job so that we can get
36:44out of this kind of like rat race and
36:46dealing with these high volume kind of
36:48BS. Also the competitors that are going
36:50to compete at the bottom aren't going to
36:51be legit and the customers you're
36:52selling to aren't going to appreciate
36:54the difference because they are truly
36:55bargain shopping and they might not have
36:57things of value. So they might not care
36:58if they break and things like that.
37:01I
37:10Dude, my heart can't do it.
37:12I honestly can't do it.
37:14I'm supposed to scale or fail
37:16and the fail has nothing to do with
37:18whether or not the business will fail.
37:20This plan will succeed. The reason that
37:22I particularly wouldn't want to do it
37:23yet is because I think you're too far
37:25away from getting to multiple locations,
37:26which is where I would gain more
37:27interest. Does that make sense?
37:30And so for only the purpose of our big
37:32big term discussion
37:36I will fail.
37:39But from a short term angle
37:41you're going to do great, dude.
37:42>> Thank you.
37:43>> All right, this this will work. Once you
37:45get this dialed and you can move up the
37:47avatar, this is one step towards not
37:49selling for hourly and we can start
37:51selling packages, we can start selling
37:52turn key moves. That's where this
37:54becomes more interesting and you can
37:55start getting into new markets with a
37:57clear differentiated product, which then
37:59will allow you to really scale.
38:02Cool?
38:02>> Sounds great.
38:03>> appreciate you so much. Appreciate you.
38:04Thank you.
38:07>> The one moment where I really felt like
38:08we were going to scale is when we
38:10mentioned the realtors and how much
38:12value we could get out of it in the next
38:14few months.
38:16Um but the moment when I knew it could
38:18be a fail is when I said in the very
38:19beginning the goal is to grow to
38:20multiple locations. That was really
38:22stupid of me. I probably shouldn't have
38:23said that at at all, but it is what it
38:25is and we're just going to take the plan
38:26and work through it. The way I feel
38:28right now is I feel
38:29I feel amazing. At the end of the day,
38:30it's his opinion. Uh I'm very tenacious,
38:33so I'm just going to go back, take that
38:34plan that he just put on that beautiful
38:36white piece of paper, and we're going to
38:37go ahead and execute it for the next 90
38:39days.
38:40And let's see how we do.
38:41And we'll we'll we'll scale the
38:43business. We will absolutely scale the
38:44business.
38:44>> Physically, it's like
38:46I want to be able to apply what we're
38:48good at to the business that can get the
38:49most out of it. And all of these things
38:52have to happen in the model for it to
38:54kind of get nailed before it can scale.
38:56And so right now I think he's in the
38:58nail-it phase more than the scale-it
39:00phase. And so that's why all of these
39:02changes are really nailing the model
39:03before we scale it.
39:05>> To be fully transparent, I really did
39:06not have any expectations. Was I really
39:08surprised? Just a little bit. So, in the
39:11next 90 days, I have already put a plan.
39:13I have already talked to somebody to get
39:14a second truck since we've been getting
39:16more of the bigger jobs with the
39:18realtors. My wife is that's that's what
39:20she does all day now. It's just realtors
39:21implementing with AI.
39:23So,
39:24>> [music]
39:24>> yeah, as soon as I go back, uh I'm
39:27I'm going to have to tell my wife
39:29the truth. Can't lie to her. Um
39:32I'm sorry.
39:40I did not
39:42I did not think this would be like this.
39:53Honestly,
39:55had they not come here,
39:57the business would have grown a little
39:58bit, but not at the level it's about to
40:01be
40:02to be launched. And the reason why it's
40:05because I always keep this thing in my
40:06[music] heart every single time somebody
40:08says, "You can't do this thing."
40:11Sorry, I'm getting a little bit
40:11emotional there.
40:13Every single time, every single time
40:16somebody said I [music] couldn't do
40:18certain things, I would just go and do
40:20it faster and better and stronger every
40:23single time. But I really think that
40:25Roadmap is absolutely priceless.
40:27Priceless. Cuz we'll make that in again
40:29$100,000 that we didn't get, we'll make
40:31it in 2 months even before this guy
40:32comes back to the show. Maybe he'll
40:34change his mind.
40:35>> [laughter]
40:41>> So, two things. One, I I reference the
40:42Scaling Roadmap. Wherever you're at, you
40:44should check out where on there like
40:45it's pretty spot on and it's because
40:47businesses are not as unique as we think
40:49they are.
40:49Patterns exist across all of them. So,
40:51that thing's free, you can go grab it.
40:53But inside my Offers book,
40:55um I talk about I think the first
40:56chapter is that you're selling a
40:58commodity, the commodity problem. And if
41:00a customer can look at two things and
41:01say these are the same, they will always
41:02take the cheaper item. And so, our goal
41:04as business owners, unless your entire
41:06strategy is to be the cheapest, which is
41:08you want to compete in the commodities
41:09game and you built your whole business
41:10to be cheaper than everyone else, unless
41:12that's your goal, which it rarely is and
41:14it probably shouldn't be for service,
41:16then you want to be on the other side of
41:17the spectrum, which is you want to be
41:18the value leader. And value leader is
41:20thinking about all the different
41:21components that a customer and all the
41:22problems that you could potentially
41:24solve for a customer, break them down
41:25kind of like I just did, and say, "Okay,
41:27these are all the elements that a
41:28customer is not thinking about, but once
41:29I present them, they realize that these
41:31are actually two very different things,
41:32which then allows us to price for the
41:34right customer at a much more premium
41:36price." Thanks for watching and we'll
41:37see you in the next Scalar Fail.
41:40Next time on Scalar Fail.
41:43>> I'm M Jenkynson and I teach crafters how
41:46to make stickers.
41:49>> If you double the amount of customers
41:50you have, does it break anything?
41:52>> No.
41:52>> Okay. So, this is a pure demand issue.
41:54>> Right. Yeah.
41:54>> This would be a higher risk test, but
41:57one that I would strongly consider.
41:58>> I'm not risk averse.
42:00>> Okay.
42:00>> We won't be talking hundreds.
42:02>> We have to. How many stickers do people
42:03make?
42:04>> Oh, thousands.
42:05>> Question is, do I want to spend a year
42:06working with you to scale this, or do I
42:10think there's something that's going to
42:11get in the way?
42:12So, the verdict is

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