Video Transcript:

Welcome back to la Callahan’s corner here where you ask the questions I answer live on Facebook. What we’re gonna do in here is diving into some questions that were just asked about data: how do we track it and how do we actually go out and raise our prices to our new clients each and every year. One of the biggest mistakes that I feel is happening in the service industry, whether it’s lawn care, home cleaning or pest control is we’ve all got in the bad habit (myself included back in the day) where we would literally go out and say at the end of the year we’re going to raise our prices by three percent or we’re gonna change it by five dollars a mowing whatever that is but it’s a fixed amount that you would spread as an increase across all your clients where this is really really dangerous is you are potentially jeopardizing your most profitable clients and getting them to shop your services. Over the next eight to ten minute I’m gonna answer your questions; how database hygiene good data in your system in tracking things on a daily basis can drive good envy your results with a non-emotional price increase. Comments and questions drop them live here, if you’re watching live and if you can hear me just to check the audio, give me a thumbs up theat the audio is good here. As we’re diving into the first thing we want to look out here is on my screen I’m gonna dial it down but basically we’ve got some fictitious accounts here and normally there is the client’s name here in the column but I’ve shrunk this down just you can see everything on the same screen but all these different stops here are in this example lawn mowing fertilizing. The idea is I just want to give you an idea of what the data looks like and what we’re looking for so no matter your CRM ( I want to say what’s up- Matthew brother watch out this weekend we got some snow coming for you here so looks like a doozy) so anyways we’ve got everything here in Service Autopilot but no matter your CRM your customer relationship management software even if you’re using pen and paper or Excel this is what we did and you’ve built into Service Autopilot. The ideais we’ve got the guys and girls out in the field and they’re gonna be clocking in and out so team clocked in between 8:07 to 8:26 this one here with 7:44 to 8:06 but the idea is this is called your close-out-day-screen, so before you dispatch your jobs at a bare minimum you want to price and a budgeted time for accountability for your team members with the quality and strength, now once you have that now they’re in the field plugging this in so if you’re using the mobiles and Service Autopilot the start and stop time to automatically show up times vary here when I click into it is actually going to show you the multiple team members here as well and if the time various if somebody clocked in earlier or later than the other ones it would be shown here but that’s okay we want to just click in there and make sure those start and stop times make sense. The ideology is it’s a sanity check the start and stop time makes sense they’re not in like a minute so the is the biggest problem we see when most companies use Mobile’s no matter the CRM the team will get to the job they’ll do the job look it done like oh we forgot to clock in so the clock in and clock out immediately and that gives you bad data it looks like you made $1,000 an hour.So the first workflow training that we recommend that we use with Callahan’s someone in the office at the end of the day or the beginning of the next day before the crews get in need to go in it just a quick visual representation start and stop times make sense there is infact a start and stop time we have budgeted hours for each job and the number of men or ladies on the crew now in Service Autopilot if you go into columns and you go into variants and total or actual hours I’m sorry it’s gonna add some additional columns so now we can go in and see ok the variance if it’s a negative is under budget and if it’s a positive or over budget and if it’s two people it multiplies the actual total time spent on property so these are the main things you need to be looking at in my opinion on there and the reason why it’s important to do at the end of the day or right at the beginning day is if something was screwed up we can go to the crew and adjust it while it’s still fresh in the memory and dialback to GPS while it’s fresh in the system. Start and end times it makes sense budgeted time a price and we want to pull out the actual and variance column you would not believe in this test account here we’ve got one that’s at zero dollars an hour for zero price so that obviously is concerning and if you’re using a installment billing in Service Autopilot or any other CRM under the usually you can tie that service underneath the contract and if the system is set up right it will not double billed but if you don’t have a budget at time it cost that particular service that falls underneath say $8,000 and monthly installment program you don’t have any good data or really have no data at all going in to be taken care of so what we recommend is in this process now that we have the closeout day screen here in good shape we’ve got good data what we’re doing is we’re going down and taking the budgeted hours of five point nine six hours and this fictitious add up would be there I’m gonna take that number and drive that into this sheet that we call our daily KPI plus accountability and then we have job costing. I’m going to show you how you handle this on a daily weekly basis then I’m gonna hop open the next tab show you how you actually raise your prices with no motion to the penny. Fictitiously if this number down here total budget hours in the normal day instead of five point nine six was actually twenty hours we plug the twenty hours in here and what happens here we go in and scroll across and we put the start and stop time and include the total hours the launch and the crew members names and the number of people what the sheep does is it grabs the total gross hour subtracts your lunch and gives you the total work hours for payroll hours and then it says okay we work 19 hours of payroll and we gave them 20 we’re one hour under budget now that gives you complete transparency and accountability to what’s going on as you scroll to the right each one of our crews are in here so the idea is it’s forcing some in the office to manually check this four to three minutes a day per crew this can be automated but when it’s automated we forget about it and obviously if you’ve ever watched them atvideos I’m a big performative automations this is one process I do notrecommend automating this is very important because what’s gonna happen is that closeout day screen here in service autopilot is a lie point that someone can physically touch it even you touch it in your system because when we hit midnight at 12:01 whether you bill daily weekly or monthly this information automatically creates your invoices and it goes into your report center for payroll production rates and job costing which you would raise your prices are low your crisis on so this is important extremely important good data in good get out spend two or three minutes of crew per day and I’m going to show you how you can create count ability in your business really quick with this to drive big big bottom drive line profits. As you can see this 105 here is you can see my cursor is if we are under budget the number is higher than a hundred percentnot that our field staff is stupid atleast my team was extremely intelligentbut a lot of times it was hard for themto conceptualize the actual vs budget so what we did is we built the formulas if it was higher than hundred percent and we could use the analogy of if you gave a hundred and five percent you kicked button did more than you had toyou’re an hour on your budget if I Manipulated the budget in time to 19hours and it took them 19 hours to do it this percent of budget now when it updates the sheet is gonna be at a hundred percent so if you do your job and you give on percent you hit your budget in line with equality constraint perfect you did a hundred percent if I gave you 18 hours and it took the 19 hours to do it your one hour over budget it 94 percent so I can easily have a conversation you only gave 94% today you didn’t give 100% you needed to do your job with the quality that straight behind it, What we do is take this percentage hopefully hundred percent higher and put it as public accountability on the dry erase board the chalkboard or the TV and the shop and we have public accountability foreach crew as a percentage of budget so whether a budgeted five hours a week or 100 hours a week it’s an apples to apples comparison. Now where we’ve made the mistake is we went out and did not have a quality constraint the beginning so we additionally went out and had our one of our managers go up and do an internal audit of several of the lawns or properties for QC with a plus or minus that would be put behind us and we would have the customer feedback plus or minus so we had production rates that were tied for public accountability with equality constraints this was big and eventually as you scroll to the right you have multiple crews that she adds up the overall budget vs actual for all your crew so you can see I’m a high level if you were budgeted above or below for your work for the week in it’s going to fourth person doing this to feel the pain of the one or two crews that are bleeding you dry and trust me in my experience you’ll have a the majority or team and crews are making you money and doing what they should do but one or two crews are gonna literally just bleed you dry and suck your bottom-line profits the thought that this is not automated it’s gonna force you to feel that pain and have somebody get on the truck to fix the issue so that is the methodology here why we want to make a manual process so we’ve got each crew broken out with a percentage of public accountability the shop quality constraints. To answer the final part of the question is how much do you raise your prices this year or next year across the board the answer is you don’t what you do if you take a job cost and report that takes the data from your dispatch board and if it’s good clean data you export it into an excel sheet or Google sheet like we’ve made and in this example we only have two but you would have all thirty or forty cuts in there you know I recommend doing this job cost report in July and then November we’ve got a good statistical need and in July people aren’t shopping lawn care company so if you end up having to raise their prices most lawn care companies aren’t returning calls and then November December we tackle before renewing for the season but the idea is we’ve got a mowing here for fifty four bucks a cut and we made fifty four dollars and twenty eight cents here per man-hour and sixty dollars and thirty one cents per man-hour on average we made fifty seven dollars and thirty cents per man-hour that number came directly off the data from this screen start and stop times that’s where it’s really important to have this good statistical data coming out and now once we’ve done this here if we tracked our start and stop times with the mobile we have a drive time cost effect from non billable time so we’re tracking that as well and the idea is if our goal is sixty dollars per man-hour and were averaging 57 we are about three dollars or two dollars and 70 cents lower than our actual revenue go so we’re not hitting your goal so if this sheet does without any emotion says you need to raise the price right here two dollars and 56 cents a cut on average to hit your hourly goal of 60 but conversely let’s say our goal for this upcoming season is 55 bucks and we’re already generating 57.30 the sheet says you don’t need to raise your price so very similar to JackWelch and GE we’re only raising say the bottom 10% and actually in this instance we’re only raising the losers that aren’t hitting our financial thresholds we aren’t jeopardizing a mass exodus of your of our client based shopping us we are simply raising the prices to the ones that aren’t hitting the financial threshold or the hour the goal we needin raising them up and if we lose them we can replace them so this is a nonemotional way to raise the prices and only the specific counts that you need to lose raise and it’s a very good wayin my opinion to go in and continue to have profitable accounts because in my opinion that I’ve seen at least in my company I’ve got accounts I’m making 80,90 even $100 an hour if my goal is 50 there’s no reason to ever change that price unless I need to get $100 an hour so I’m double the profit goal there leave them alone only raise the prices on the ones that aren’t hitting your threshold and then the final part here before I finish up here ants any live questions is the lot size so if you’re using something like Service Autopilot or even an excel sheet we should be tracking thelat size the turf square footage or the gross square footage and now we’re gonna have times to mow blow and add your stick edge depending on your part in the country of how long it takes your guys and girls with your equipment and your production to go in and manage a property of 5,000 10,000 whatever that is we have now enough data to average out and figure out what it takes you to produce lawn mowing at those different increments of size with your team and your crew so no longer you have to go on Facebook or read a magazine and see where the industry averages or ask somebody that probably hasn’t no clue how long that should take or what you should turn because every market is different every piece of equipment is going to be different depending on the market and everybody’s overhead is different so I recommend don’t get sucked into the temptation of billing on Facebook and asking what you should charge or how much you should raise your prices do the homework set a foundation and create daily accountability through something like your closeout day screen once you have it drop it into a daily KPI and accountability sheet like this here take the percentage of a hundred explain your team with the hundred means you hit your goal above 100 you beat it and below 100 you give a hundred percent so you didn’t eat your budget goal you’re over it with a with a quality constraint and twice a year you take that data export it out you put your our legal and with no motion you know what you need to raise the price one of the tips that Idid at callaghan’s was I would take this here where the name was and actually black it out so I couldn’t see it and I would just make sure the math and the data was good and I fire that over to Christine or Tammy and not emotionally they’ve raised the prices they had to so if I had only be Mrs Smith that I’m in cotton since high school and she had 20 trees in her back hair that took twice as long we all know watching this videoI probably wouldn’t raise the price if I knew it was old lady Mrs. Smith I’ve taken the I’m taking the emotion out of it and created a standardized business for predictable property their profits with transparency with daily accountability for the crews with quality standard. Comments or Questions drop them below hopefully this was helpful and it answered the questions. Once again Callahan’s corner and coming at you daily you ask questions myself and the Simple Growth team answer them live on Facebook live