The Perfect Offer for a Home Service Business — Transcript

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1. 0:00Any kind of home service, the big issue
2. 0:02is commoditization, right? Like there's
3. 0:04huge demand for it, there's a lot of
4. 0:05supply, and so people are going to make
5. 0:06money without really a lot of skill.
6. 0:08Um
7. 0:09and so then you have bad players who
8. 0:10underprice
9. 0:12because and then basically it's a race
10. 0:13to the bottom, which sucks, right? And
11. 0:15so with on time on budget, the big
12. 0:18concern that every every consumer or
13. 0:20every homeowner has is is this going to
14. 0:22be is this going to be on time is it
15. 0:23going to be on budget, right?
16. 0:25Um and so with an on on time on budget
17. 0:26guarantee,
18. 0:28what we do is we say
19. 0:31So you already raised your prices, but I
20. 0:33would say like you could probably get
21. 0:34away with raising them even more. But
22. 0:36this is my process of doing this is like
23. 0:37we're going to bump price by 20%.
24. 0:43And then this gives you all the leverage
25. 0:45you need in the conversation. And so
26. 0:47if I'm talking to a homeowner, I'd say,
27. 0:49"Listen." They're like, "Well, I've got,
28. 0:50you know, two other quotes for less."
29. 0:52And it's like, "Oh yeah,
30. 0:54um did they guarantee time and budget?"
31. 0:55No. Well,
32. 0:57uh and it's like, "Oh yeah, well then I
33. 0:58can do it for a dollar."
34. 1:00As long as I don't have to guarantee
35. 1:01time and budget.
36. 1:02And then they're like, "Oh." And I'm
37. 1:04like, "Right, it's complete
38. 1:05make-believe. With me, when you pay
39. 1:07this, you know that it will be done by
40. 1:08this time and it will be done under this
41. 1:10number, period. And if it's not, I'll
42. 1:12give you my profit, which I run 20%
43. 1:14margins, I'll give you 20% back."
44. 1:18Right, and we just bumped the price 20%
45. 1:20and you captured on everyone else and
46. 1:21you're probably not going to do it. Now,
47. 1:22what makes this Now, here's what makes
48. 1:23it a little even sexier is that this
49. 1:25guarantee is contingent on one very
50. 1:27important thing, which is that they
51. 1:28don't change their mind.
52. 1:30Which of course they're going to [ __ ]
53. 1:31change their mind. Of course.
54. 1:33>> [laughter]
55. 1:34>> And so
56. 1:34So this allows you to win every bid,
57. 1:37but then you say, "Hey, to be clear, I
58. 1:39can guarantee this as long as you're
59. 1:40good that this is what we're doing." But
60. 1:42then they're like, "Actually, I kind of
61. 1:43want the other turf. I want to do the
62. 1:45edge. Can you cover that area over
63. 1:46there?" You're like, "Absolutely can. I
64. 1:48can't stick with this anymore, but like
65. 1:50I'm still going to try and hit that
66. 1:51goal, but I just want to make sure that
67. 1:52you're clear like I can't like you just
68. 1:54changed the terms." Yeah. And everyone's
69. 1:55like, "Yeah, I I bump the actual the
70. 1:57rate." So, that's the
71. 2:00kind of like no change contingency,
72. 2:02which protects you.
73. 2:05And then in the in the rare circumstance
74. 2:07where you some they don't change their
75. 2:09mind and you somehow go over,
76. 2:11you just give back
77. 2:13the price raise that we just did.
78. 2:15Right? And so, you keep you were going
79. 2:16to make anyways. And so, this covers you
80. 2:17on both sides. How does that feel?
81. 2:20>> I love that. I didn't even think that
82. 2:21was possible with that.
83. 2:23>> Probably. And you don't need to be
84. 2:24limited by this. You can you can make
85. 2:26your own number. Yeah.
86. 2:28Well, okay. The second thing
87. 2:31is that show maintenance plan. So, kind
88. 2:33of like I was saying with Wild earlier,
89. 2:34on the horse side it works the same way.
90. 2:35I I try to do this on with every service
91. 2:37business I can.
92. 2:38Is okay.
93. 2:40Um
94. 2:41their like turf is going to have get
95. 2:43damaged, it'll get the edges will fray,
96. 2:45you would you know the [ __ ] better than
97. 2:46I do.
98. 2:47You need something, right? That's going
99. 2:48to happen. So, I I like having as as
100. 2:52little of as like the lowest price
101. 2:54possible
102. 2:55if I want them to say yes, because what
103. 2:57I want them to do is just buy a sales
104. 2:59consult.
105. 3:00>> Mhm.
106. 3:00>> Right? So, I'm going to come back a year
107. 3:01from now and we'll cover repairs up to
108. 3:04twice this number.
109. 3:05Um and that's what most people do. We
110. 3:07just do that.
111. 3:08>> What do you mean by twice this number?
112. 3:09>> So, let's say it's 200 bucks a year,
113. 3:11we'll cover up to $500 a year in
114. 3:13repairs.
115. 3:13>> Okay.
116. 3:14>> We make up the prices on repairs anyway,
117. 3:15so whatever.
118. 3:17Right? So, it's like I'll give you twice
119. 3:18the number on the repair cost. Anything
120. 3:20under 500 bucks we'll just handle.
121. 3:22Um and we'll come out and just keep it
122. 3:24as like it'll double the
123. 3:26I'm sure you have some stats, but it's
124. 3:27like you know, if you're buying the turf
125. 3:29it'll it'll double the duration of it.
126. 3:30And if you plan on selling the house in
127. 3:31the future, the last thing you want to
128. 3:33do is have to redo the turf for somebody
129. 3:34else to enjoy.
130. 3:35>> Perfect.
131. 3:36>> That's what I would say. That's how I
132. 3:37pitch it. It's like, well [ __ ] It's
133. 3:38like, yeah, so once you do it, what
134. 3:40people don't realize is if you're going
135. 3:41to sell the house thing's going to look
136. 3:42like [ __ ] This is just wear and tear.
137. 3:43If we do this, it'll add to your home
138. 3:45value rather than needing something else
139. 3:47to replace later.
140. 3:48>> Got you.
141. 3:49>> And you get dinged for it. Um so, the
142. 3:51maintenance plan.
143. 3:53And so here's the here's my favorite way
144. 3:55of doing it.
145. 3:57Which while if if if it makes sense for
146. 3:59you, you can try and adopt this, but I
147. 4:00like the way you wrote it out in yours,
148. 4:01but the way I would do it is like um
149. 4:05you could have it be $500 a year,
150. 4:08right?
151. 4:09>> Mhm.
152. 4:10>> And then you say or
153. 4:14you can just leave me a five-star
154. 4:15review.
155. 4:18And I'll throw it in.
156. 4:21>> I have to say I have to talk to my
157. 4:22partner first.
158. 4:23>> So it's like it's 500 bucks a year that
159. 4:24most people do
160. 4:25um and we're running a deal right now
161. 4:27where if you give me this five-star
162. 4:28um
163. 4:29we'll comp it.
164. 4:30>> Good picture.
165. 4:31>> Yeah.
166. 4:33>> I'm about that.
167. 4:38>> Now does does the um does the same
168. 4:41person who does the work do the kind of
169. 4:43like the the walk-through, you know what
170. 4:44I mean, like the it's all done, let's
171. 4:46wrap up?
172. 4:47>> Mhm.
173. 4:48No. The person who makes the sale
174. 4:50>> Yeah.
175. 4:50>> is So currently how it's set up uh is
176. 4:54the salesperson is the project manager.
177. 4:56Basically shows facing.
178. 4:58Um so he'll be with you with through
179. 4:59this process and does the walk-through
180. 5:01with the client.
181. 5:02>> Okay. So that's good. They're not the
182. 5:04laborers per se, right? Okay. So here's
183. 5:07here's what's magic.
184. 5:08So when you have that conver- when that
185. 5:09guy has that conversation, says, "Hey,
186. 5:12um
187. 5:13you know, we have a maintenance plan for
188. 5:13$500 a year, all the stuff I just said.
189. 5:15Um
190. 5:16and or you know
191. 5:19and right now ownership is running a
192. 5:21special where if you just leave us a
193. 5:23review um
194. 5:25it'll be free. And if you do leave a
195. 5:27review, the guys get a little spiff and
196. 5:29it you know, it'd mean a lot to them.
197. 5:30>> Mhm.
198. 5:30>> If if he says it about the guys and he's
199. 5:33not the owner,
200. 5:34>> Mhm.
201. 5:34>> it crushes. Because it's like as long as
202. 5:36you if you get Javier or Jose did an
203. 5:38awesome job, like they get a little
204. 5:40spiff, it means a lot to them and their
205. 5:41families and like you'll get 500 bucks
206. 5:43for free.
207. 5:44>> Okay.
208. 5:44>> And everybody does it.
209. 5:45>> Got you. That makes
210. 5:47>> If you liked this video and you're a
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212. 5:49current revenue ceiling, I distilled
213. 5:51every lesson from scaling 10 businesses
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