Why This Pest-Control Offer Already Works — Transcript

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1. 0:00What's going on? My name is Josh. I own
2. 0:02a brick-and-mortar pest control company
3. 0:04that focuses mainly on recurring service
4. 0:06plans for residential clients.
5. 0:07>> Yep.
6. 0:08So, currently my constraint is optimize
7. 0:11my offer. I feel like there's room for
8. 0:12improvement.
9. 0:13>> [clears throat]
10. 0:14>> Optimize your what?
11. 0:14>> So,
12. 0:17um my constraint is optimizing my offer.
13. 0:19>> Offer.
14. 0:20>> Okay.
15. 0:20>> for improvement.
16. 0:21>> Okay.
17. 0:22>> Yep. So,
18. 0:23um I've been bundling basically all the
19. 0:25services into like a mother of all
20. 0:26bundles type of deal.
21. 0:27>> Yep.
22. 0:27>> Yep.
23. 0:28Um
24. 0:30I basically can't upsell without since
25. 0:32I'm bundling everything and margins get
26. 0:33tighter, but my close rate does
27. 0:35increase. Um
28. 0:37but when we don't bundle the opposite
29. 0:39happens, close rates margins do increase
30. 0:42along with upsell potential. Uh so, my
31. 0:44question is which of the two would you
32. 0:46deploy to scale the quickest? Um
33. 0:48currently at a million dollars, started
34. 0:50the business a year ago. Looking to get
35. 0:52to five next year.
36. 0:54>> My question is you said close rate
37. 0:55decreases when you take away the
38. 0:57bundles, right?
39. 1:00>> Uh yeah, so they basically yeah, with
40. 1:03the that bundle
41. 1:05um I basically just can't upsell.
42. 1:07Yeah.
43. 1:08Pretty much the close rate
44. 1:09>> do the customers do you sell less of a
45. 1:12specific type of customer? Like in terms
46. 1:15of like income range or type of house or
47. 1:17something like that?
48. 1:20>> It's all upscale. Like uh yeah,
49. 1:22basically upper
50. 1:25upper middle to higher class.
51. 1:26Is that Is that what you were asking me?
52. 1:28>> Yeah, I was just trying to understand if
53. 1:29like there's a specific type of customer
54. 1:31that's more attractive that you're not
55. 1:32getting when you switch
56. 1:34that you lose with the switch, but that
57. 1:35the ones that you're getting are going
58. 1:37to have a uh greater LTV. So, it's like
59. 1:40kind of worth the trade-off, but I was
60. 1:41just trying to understand if there's a
61. 1:42difference in customer.
62. 1:46>> Yeah, it's uh so, the the customer
63. 1:49um
64. 1:51basically
65. 1:54Yeah, I
66. 1:55it's like so so, the customers are
67. 1:56pretty much the same. It's really not
68. 1:58going to change.
69. 1:59>> Okay.
70. 1:59>> So
71. 2:00I'm pretty much I'm focused on like
72. 2:03a higher
73. 2:04customer here that's willing to
74. 2:06>> Yeah, let me push back real quick. So,
75. 2:08you said your constraint is your offer.
76. 2:10I would say, how do you know that?
77. 2:14>> Well, so
78. 2:17Well, so because of the I'm so really
79. 2:19honestly it's like that close rate. It
80. 2:21it drops when we
81. 2:23when we don't bundle and when we do
82. 2:25bundle it goes up. I mean the business
83. 2:27is rocking and rolling. It's doing
84. 2:28great. Honestly, I don't I'm just
85. 2:29wondering if that is the constraint.
86. 2:32>> It doesn't sound like the constraint.
87. 2:35>> Hm.
88. 2:36>> Like what's stop like
89. 2:37>> Why is the business not doubling
90. 2:38revenue?
91. 2:39>> Like yeah, what's stopping you right
92. 2:40now? I mean, you said your close rate's
93. 2:42fine when you have the bundle, so sell
94. 2:44the bundle. Okay, unless there's some
95. 2:45other major problem.
96. 2:49>> So, the only thing is that the upsell
97. 2:50potential drops, so the LTV does drop.
98. 2:52>> Well, then why don't you raise the price
99. 2:54on the bundle?
100. 2:58>> Yeah, I guess I could just raise the
101. 3:01price on the bundle. I mean, it's like
102. 3:03>> Love this for us.
103. 3:06>> [laughter]
104. 3:08>> I will raise the price on the bundle.
105. 3:11>> [laughter]
106. 3:12>> This is great. I'm glad we glad we had
107. 3:13this chat.
108. 3:16Okay, you're We have this thing that
109. 3:18everyone wants to buy, but it has lower
110. 3:19margins. It's like, well, I'll bet you
111. 3:20if you're especially going to upscale,
112. 3:21they don't know the difference. So, you
113. 3:23know, tack on 20 and then it'll probably
114. 3:25like double your margins.
115. 3:28>> They won't even know. Yeah, you're
116. 3:30right.
117. 3:30>> I love it.
118. 3:31>> Yeah.
119. 3:32>> This was fun.
120. 3:34>> I'm going to be seeing you guys in
121. 3:35September.
122. 3:36>> Oh, fun. Well, rock and roll, man. We'll
123. 3:39we'll see you out here.
124. 3:39>> Tell us how much more money you're
125. 3:40making in the meantime.
126. 3:41>> Yeah, that'd be lovely.
127. 3:44>> A whole lot of money. Thank you, guys.
128. 3:45>> You bet.
129. 3:46>> Have a good one.
130. 3:47>> If you like this video and you're a
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139. 4:02can click here and you can check it out.
140. 4:03Again, absolutely free. And since you're
141. 4:05a business owner, I appreciate you and
142. 4:06uh enjoy.