Video Transcript

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You’re listening to the Simple Growth Podcast. The show that
00:03
helps business owners get their life back. Here’s your host,
00:07
Mike Callahan. Welcome back to Work On It Wednesday. Mike
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Callahan here with Dillan Rothenberg of the Simple Growth
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Team. Helping you work on your business and not in it just
00:16
like Michael Gerber. So, one of the things we’re diving into
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today on Work On It Wednesday is the key KPI is the key
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performance indicators that you should be looking at in your
00:25
business for success now and success in the future. So, uh
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Dillan, thanks for joining me again on Wednesday here and a
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lot of people have great reviews about Work On It
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Wednesday because the ERX Actually breaking down what
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we’ve done in both of our seven figure businesses and what is
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important to look at, what’s important to work on, and what
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is the end goal, and how to avoid those hurdles of growth
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all along the way. Well, all trying to find employees, train
00:50
employees, and do everything else in between. So, uh without
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any further delay, I’m gonna pop the screen open here and we
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will uh take a look at it here. Yeah, let’s do it. Alright, so
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I’ll let you lead brother and uh I’m sure I will chime in.
01:07
Probably, we’ll talk right over the top as usual. So, we’ll see
01:10
what happens. Yeah, that sounds good. That sounds good. Yeah, I
01:14
know it’s a hot topic um especially being mid season
01:16
with a lot of the lawn care guys um and girls. But it’s
01:20
easy to get pretty head down in the business and just like be
01:23
like, I think I’m doing good. I hope I’m doing good. I got some
01:25
money in the bank. Um it’s kinda nice when someone can
01:29
come in and just tell you the numbers that you should be
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reviewing um you know, on a weekly or at a a monthly basis
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and once you have the system set up to do so, it doesn’t
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take more than a couple of minutes to look at this number
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and you’re gonna know if you’re off base and then, it requires
01:45
some further attention or if that number looks pretty good
01:48
and the data source is accurate, then, really, you
01:51
know, you got a pretty sound business. Um now, I’m uh I
01:56
definitely love a lot of the sales staff uh stats. Sorry, I
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can nerd out on that all day but uh a lot of the um people
02:04
that we help with especially in the the service autopilot
02:06
community, they’re really unclear of a lot of their sales
02:09
numbers. So, if you’re having any type of sales issues, um
02:14
you know, the first thing you gotta be looking at is is what
02:17
percentage are you actually converting? And you know, if
02:20
you’re using a CRM, this is a very, very easy number to pull
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but even if you’re using like pen and paper, uh it’s not
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impossible to pull. It’s literally the number of quotes
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that you’ve sent out uh or or sorry, the number of quotes
02:32
that you’ve won divided by the total number of quotes that
02:35
you’ve sent out. Alright, so very very simple calculation
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and and the 50% number kinda gets thrown around quite a bit
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that you wanna be ideally converting 100% of your quotes
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but if you’re converting 100 percent, you know, you’re
02:48
you’re probably priced a little bit too low. So, there is kind
02:51
of a fine line between winning too many quotes and leaving a
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little bit of profit on the table. Interesting. So, Dillan,
02:58
what you’re talking about is the conversion from somebody
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who hits your website, calls your office, hits a bot, or
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something like that on social media or texts in and then that
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that converts into an actual client. Yup, exactly. So, if
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we’re going out across multiple marketing sources, why this
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would be important is if we’re going out and scaling the
03:17
business. Now, if we have historical numbers, it’s really
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becoming a math game. So, if I put X amount of flyers here, X
03:23
amount in Facebook, X amount here, on average, these
03:26
percentage should convert across each lead source and
03:28
become a client? Yeah, 100% and it’s funny that you say lead
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sources um Because that is that is is kind of the next topic.
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So the the conversion percentage great on a high
03:42
level. Right? You wanna know kinda high level. Okay we’re
03:44
we’re winning 50% of our quotes. That that that’s great
03:48
to know. You can kinda have a little bit more of a
03:50
predictable sales flow and and budget. Um knowing that you
03:53
close 50% of all estimates that you get and like Mike said you
03:56
can kinda work backwards and say well how many marketing
03:59
pieces or how much marketing do I need to do to you know if you
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want to get 100 new clients this year and your your closing
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percentage is fifty percent. Well then we need to generate
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200 opportunities. Right? And you know if you send out a
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thousand postcards let’s say and only 10% or or 1% of people
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get back to you. Well these are all just data figures that you
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can kinda work backwards and say well we’re gonna need to
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send out maybe it’s 25 thousand postcards to get enough people
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requesting a quote so that we can close 50% of those and
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reach our sales goal. But like you said uh not all marketing
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sources are 100% equal. So uh you need to be tracking what
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percentage of your leads are actually coming from each one
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of these marketing sources and then almost more importantly,
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what percentage of those leads from each marketing source are
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actually converting into clients cuz it’s it’s great to
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say, yeah, we got 10 thousand leads from Facebook but if 0%
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of them actually converted into a client, um you know, maybe
04:58
they’ll convert in the future but really we we kinda wanna
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live in the moment here and and get some concrete sales today,
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essentially. All those feel-good likes really don’t
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mean anything at the end of the day. It’s all about dollars in
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and dollars out. Um so, the funny thing is I haven’t See
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this, I’m gonna let you go ‘cuz I have a feeling, I know your
05:14
next slider too but I think this is really important. So, I
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think lead sources, you need to be tracking in my opinion, the
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paid sources but also, the quote unquote non-paid sources
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far as like client referrals and people referring as well as
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um people seeing your truck or your crews out in the field
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because technically, you’ve got that truck or car wrapped
05:35
probably or logoed up. Um there is a cost to that but there are
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lead sources that are come out and gonna come off of that will
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convert higher or lower based on the actual lead source
05:45
itself. So, yeah, great work. I’m kinda curious to see what
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your next slide is and not really prepared today myself.
05:49
So, yeah, I think I know where you’re going and I might have
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missed that one but there there’s gonna be a couple main
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KPI’s that I was gonna ask you at the end of just like, you
05:56
know, what what did you use in Callahan’s and and what are you
05:59
kinda thinking in the back of your mind, high level at Simple
06:01
Growth that that we can we can definitely chat about too but I
06:05
think before we go over to the sales here quick, let’s just
06:07
let’s just uh pause on on lead source for a second. I think I
06:11
know where you’re gonna go. Maybe I was going, maybe we’ll
06:13
wrap out it together. So, once we’ve got that, we’ve got those
06:16
dollar amounts in. Per campaign, how much we’re
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spending for each marketing campaign or each flyer and
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campaign. What is the cost per client uh on average? So,
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client acquisition cost. So, how much is it costing to get
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the client? So, you may be looking at like, wow, home
06:32
advisors like a really cheap lead. That cost me thirty bucks
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like we should just triple down at HomeAdvisor but the second
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part of that is that client lifetime value. So, is it a two
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uh twenty-five-dollar lead acquisition cost but the
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lifetime value is only worth 250 bucks where you may have
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$150 client acquisition cost on a flyer face book but you’ve
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got a ten or $11,000 client lifetime value. So, you kinda
06:57
gotta do the math back and forth to see which one of those
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you wanna double down on and you may wanna spread it across
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all of them and now, not emotionally, you may know what
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the client lifetime and revenue that’s generating in there.
07:08
Yup, exactly and another uh major one that I they missed
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out here which ties directly into the lifetime value is just
07:16
the overall customer churn, right? Uh a lot of people that
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we’re dealing with um you know, my my um previous company
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included, II know with yours as well. We’re growing really
07:26
quick and uh off Sometimes a lot of the focus can just be on
07:29
growing the sales and everything like that. Well,
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it’s of no value to you if you grow 100% and then you lose,
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you know, everything that you grew uh by clients churning out
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through the through the backdoor. Coming in the top of
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the funnel, those new ones and the old ones are popping out
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the bottom. So, we need to have that balance and keep an eye on
07:46
that. I couldn’t agree more. Exactly. So, just having a
07:49
pulse on those numbers, it doesn’t need to be this big,
07:51
complex system. You know, if you’re using a CRM, of course,
07:54
that can be tracked but even if you’re not, just, okay, if two
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customers cancelled this month, that’s not inherently good or
08:00
bad. That might be uh a 50% decrease from last June uh or
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you may have had no cancels in June. So, this is kind of a
08:08
number that you need to keep a pulse on and just say like, are
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my overall cancellations as a percentage? I’m going down or
08:15
going up and just having a really basic pulse on that. Um
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it’s gonna be huge, right? These are these are numbers
08:20
that are crucial to the success of your business. So, the next
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one here is just people can look at the sales number and
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they can say, hey, we’re growing quick but I think a
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really really important one to be looking at is just how are
08:36
we doing? Um so, let’s just look at May that just passed as
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an example. How did we do this May versus how did we do last
08:44
May? Um yes, looking at the aggregate of the sales numbers
08:47
is is obviously important um but you wanna be comparing
08:50
kinda apples to apples and obviously, your sales are gonna
08:54
be somewhat cyclical even if you have a 12 month uh out of
08:56
the year business, right? So, you don’t just wanna have 100
09:00
thousand per month sales goal. That’s probably not gonna be
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100% accurate. There’s gonna be dips in it where it might be
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150 thousand uh in sales in May but then it might be 50
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thousand in June or whatever that looks like. You would just
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wanna have accurate sales numbers that you’re forecasting
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um and comparing to. Yeah, I love the fact that you you
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mentioned seasonality cuz all of us even in home cleaning,
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your lawn care, pest control, there’s gonna be some
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seasonality. So, we need to put that in there especially like
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even around the holiday seasons that maybe good or bad
09:31
depending on the service industry you’re in but we need
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to be be going in that YOY as year over year compared So, we
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need to go year after year and compare them. So, if you’re in
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QuickBooks, uh we can do a previous year comparison in a
09:44
cure basis I recommend and then we wanna go the percent change
09:47
and the dollar change. So, you can actually look what you did
09:50
in 2020 versus 2021 and really get a benchmark. So, you’ll
09:54
start to see if you look year after year, there are some
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definite trends in most markets. Well, pretty much all
09:59
markets I kinda recommend. So, that that’s that’s good stuff
10:02
they’re doing. Yeah, yeah, for sure and if you’re kinda like
10:05
you mentioned QuickBooks, we mentioned, you know, CRM, we
10:08
mentioned maybe pen and paper. Yes, these coming from
10:11
different sources and if you’re thinking like I don’t really
10:13
have the time to do this, you know, this is something that
10:16
once explained to an admin staff or or someone else you
10:19
have help helping you at your company, you know, even a
10:21
virtual assistant, these are numbers that they could be
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pulling and compiling for you on a monthly basis and you meet
10:27
with them for five or 10 minutes and and review those
10:29
numbers but you know, they need to be useful numbers of course
10:33
and they need to be numbers that make sense. So, when you
10:35
see them, um you you can make decisions off of them. I know
10:40
Laurier from our team always says like, yes, I can get you
10:42
this data but what are you gonna do with it? Is it
10:45
actually gonna be something that’s useful to you and you
10:47
can actually make a decision and and it’s gonna change the
10:49
way you’re doing things now. Um so, that’s that’s something to
10:53
keep in mind as well. Now, this this ties in a little bit to uh
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the webinar we’re gonna be doing uh tomorrow and we’re
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gonna be going into to major depth with this but daily. Um
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you know, you gotta be finding the time to look at your
11:07
numbers on a daily basis. This is literally the lifeblood of
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your business. If these jobs are profitable or not. If if
11:15
you’re dealing with labor in any way, shape, or form, um you
11:18
know, that’s gonna be the the major um factor here. If these
11:22
jobs are getting done in a timely manner. So, basically,
11:25
the daily budgeted time over under is just a simple check
11:29
and or report if you’re using a CRM to see the times that I set
11:34
up for budgeted hours. So, if it if we’re estimating a job
11:37
that should take about one hour. Well, in reality, how
11:41
much time did that actually take? So, you know, if it took
11:44
fifty minutes, Great. You know, we’re we’re actually basically,
11:48
we still have time in the budget but if all of a sudden
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that job took two hours, well, your job probably just cost you
11:55
money. Yeah and I think as you’re diving into it, Dillan,
11:59
I don’t know if you kinda applied it a little bit already
12:01
but um kinda just specifically dialing into. It’s not just the
12:05
budgeted time on the specific jobs. We also wanna track the
12:09
uh non-billable mobilization. So, like literally your shop
12:12
time, your drive time. So, like with the way we did it at my
12:15
company um really what we did is I got a piece of paper. I
12:19
don’t know if you’ll be able to see it but basically, when we
12:22
started at job A and went to job B, the clock actually
12:27
started ticking. So, you’re gonna, you go, that clock is
12:30
starting to tick at job B. So, if you’ve got a thirty-minute
12:34
job budgeted at job B, you’re gonna take your 30 minutes
12:38
starts clicking when you leave job A. Now, where it gets
12:42
interesting is if you’ve got two people on that crew or
12:44
truck, that 30 minutes now becomes 15 minutes and you’ve
12:48
got a cover that drive time. So, what we’re finding in most
12:50
service business is this two-person crew is gonna be
12:52
optimal maximum size unless you’re at one or two properties
12:55
the whole time because if you have an eight-hour day and
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you’ve got just 1 hour of just mobilization, that’s a whole
13:01
extra um time say like thirty-six bucks an hour break
13:07
even. That’s an extra $36 a day of expense that’s basically
13:10
being eroded from the profit. Um so you really need to go in
13:14
and figure out what’s that non-billable mobilization and
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work with a financial expert and build that into your hourly
13:20
rates. You’re on average, you’re covering that throughout
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your whole business but yeah, the daily budgeted time over
13:25
and under is huge and that that builds transparency with your
13:28
team. So you got that dry erase board or TV in the shop and
13:32
you’re showing them uh hopefully what they’re doing
13:34
and building a friendly competition with quality
13:36
four-week accountability. Yeah so you’re you’re basically
13:40
saying obviously the more guys on a crew the more windshield
13:44
time you’re gonna have and um yeah you you definitely gotta
13:48
be tracking that drive time cuz that you know 3036 uh dollars
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per day let’s say that you’re wasting windshield time
13:54
actually might be fairly low. Oh yeah. It’s significantly
13:57
low. I mean it’s it’s we see two two and a half hours of
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non-dillable mobilization usually an average of most
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companies we work with. The other interesting thing is like
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so let’s just say we’re doing a mulch installation job uh where
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we’re going to pick up a materials of the nursery design
14:10
build like a lot of companies aren’t paying taking in account
14:13
for the extra two to three guys on the truck when they’re going
14:16
to the nursery and sitting in line for half hour and then
14:18
driving from their shop to the nursery to the job. So, after
14:22
that first load or have it preloaded maybe the night
14:24
before, when you go to do that job, if you need another five
14:27
or six yards of mulch, you got a two or three-man crew, those
14:29
other two guys should literally be spreading and cleaning up
14:31
that job site while the one guy goes and picks it up and brings
14:34
it back. So, you’re you’re taking two thirds of that
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non-billable drive time and minimizing it. So, those are
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like the silent killers that when we’re so busy, we don’t
14:42
track ’em but then, we see people come back to us and
14:45
like, you know, September, October, like, Mike, like,
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we’re really crushing. We’re hitting these budgeted times on
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a daily basis on these jobs. What’s going on? With the
14:55
financial number but when you dive into like a service
14:58
autopilot, you have a drive time, costing effect or
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non-available costing effect based on the particular guys
15:03
with labor and labor burden and it clearly defines like, yes,
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you are winning on the job. Everything else is literally
15:09
destroying your profitability. Um so, that That’s important to
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track that daily and weekly for sure. Yeah. II see a lot of
15:17
people doing that too where you know they’re they’re charging a
15:19
delivery fee cuz they gotta go and get the materials but the
15:22
delivery fee definitely does not take into account. You know
15:25
anything going wrong. You know they had they have to stop
15:27
somewhere get gas whatever that is. And it’s sometimes like
15:30
2020 bucks. I just wanna maybe tack on twenty bucks for for a
15:35
delivery charge. Well like you said if if it takes 30 minutes
15:38
and all of a sudden you got three guys on that crew. 30
15:40
minutes there. 30 minutes back. Maybe you know fifteen extra
15:44
minutes of of just doing who knows what. Uh all of a sudden
15:47
that adds up very, very quickly. Yeah, so it’s gonna be
15:51
almost three additional hours that you didn’t put in that
15:53
job. Exactly. So, if you’re looking at like three yards of
15:56
mulch installation, well, on average, it takes about an hour
15:59
per yard to install it. So, you got a three-hour budget. You
16:02
didn’t account for the other 3 hours of screwing around
16:03
everything else during the day. So, that that seems to be the
16:06
the silent profit killer that we see. If you don’t track it
16:08
and realize it. If you realize it in the moment, you can make
16:12
some course uh corrections but if you’re looking this
16:14
November, December, it’s too late like you’re done. Yeah and
16:19
and volume obviously you want profitable volume but volume
16:22
does cure AA lot of things in that regard right? If you have
16:26
a massive dump trailer where you can load up a bunch of
16:29
yards of mulch and that drive time. Essentially in effect
16:33
could be spread out between you know that that load up time and
16:36
and all that can be spread out between four or five mulch
16:39
jobs. Well all of a sudden that that effect is way less and
16:43
then the same thing with lawn mowing too, right? If you’re
16:45
driving fifty minutes to every job, half your day is gonna be
16:49
driving versus you you park in a neighborhood and you can bang
16:52
out, you know, twenty, twenty jobs or whatever that might be.
16:55
Yeah and it’s interesting. So, like as you’re talking about
16:57
that, just kind of a pro tip. So, like, getting back to the
16:59
mulch example cuz a lot of the stuff can actually be
17:02
eliminated. So, when you’re tracking this daily, it causes
17:05
you to actually look at it in creative ways cuz it’s it’s a
17:08
it’s a pain point that you may have a hard time overcoming
17:11
with your pricing in your market. So, what we did is we
17:13
went to Lowe’s and Home Depot, pitted them against the each
17:16
other and in the spring, in late spring, they always run
17:18
the uh like dollar ninety-seven a bag of mulch if you buy like
17:21
six bags. So, what we did is we went to the pro desk and uh
17:25
went to the pro desk manager and said, listen, uh we’re
17:27
we’ll commit to buying a tractor trailer full worth of
17:30
bagged mulch. Um they don’t make you sign anything. They’ll
17:33
hold you to it but um we were able to get our bagged premium
17:36
mulch. I think in a dollar ninety-seven a bag and then uh
17:40
we went to him and said, well, listen, uh can you guys handle
17:42
delivery? So, we actually dialed it into a leave it that
17:46
few years ago was $10 per delivery. It didn’t matter if
17:49
it was two bags or whole tractor trailer full. We did
17:52
one HOA that was 187 yards I think or 185 yards of mulch
17:55
with bag mulch. They staged all the pallets in front of all the
17:59
units. We cut 2 days of labor off with a seven or eight-man
18:01
crew and the cleanup was like non-existent and and the client
18:05
saw it as a higher perceived value cuz it was bagged mulch
18:08
like was it wasn’t probably not but perception was was wow.
18:12
We’re getting premium mulch for a really good price but where
18:16
I’m going with this is now you may not need that dump truck or
18:18
the dump trailer. You could have a Ford Ranger, a real
18:21
small Chevy pickup or Ford pickup, uh two-wheel drive,
18:24
southern model, and has some wheelbarrows and some blowers
18:27
and some rakes in there. And not have to have a sixty or
18:31
$70,000 vehicle. So now you can have four or five crews doing
18:34
the same amount of work and have it drop shipped and staged
18:37
the day before. Um so that there’s just some creative ways
18:40
once we look at the daily times when you’re not hitting them or
18:43
you’re hitting them like you can say, okay, how can we
18:45
creatively resolve the issue? Cuz we’re making great money on
18:48
site but the overhead of this machine, this big gum truck and
18:52
kinda want a couple of guys and it was killing us. So, if
18:56
you’re not looking at it, you don’t start thinking outside of
18:57
the box how to creatively overcome that. So, just kind of
19:00
a pro tip that we did and uh I know quite a few companies
19:02
still doing it. So, Lowe’s at Home Depot, you wanna talk to
19:05
the pro desk, not the garden center, pro desk from what I
19:08
understand, gets paid on a uh uh volume, not a profit
19:11
percentage. So, they’re willing to take a loss on the product
19:13
uh just to get their bonuses. So, pretty cool. Wow. Yeah,
19:18
that’s like the definition of uh work smarter not harder.
19:21
That’s and potentially cutting out some trailer and and truck
19:25
cost. That’s that’s huge. Yeah, it’s kinda something cool that
19:28
I actually learned from Garrett Matthews. I gotta give credit
19:30
where credits do. Uh the Southern Boys are pretty smart
19:33
when it comes in to make it work. Yeah, for sure. Uh next
19:37
one here, we don’t need to spend much time on it but. Yes,
19:40
you can, you can look very granularly at the daily numbers
19:43
uh and you don’t wanna, you know, dismiss a day that’s
19:46
unprofitable. Obviously, you wanna look at that a little bit
19:48
further but hey, they could just be having an off day too.
19:51
Um you know, our our market was huge. Some sometimes it would
19:55
literally be pouring rain in one section of it and snowing
19:58
in the winter and other times there would be no
20:00
precipitation, right? So, these things obviously affect the the
20:05
efficiency uh on some of these days. So, it is nice to look at
20:09
things in an aggregate and say, how do they actually perform in
20:12
the week, right? If you don’t wanna necessarily be bickering
20:15
uh over your guys about being a little bit less efficient on 1
20:18
day if they absolutely crushed it on the week, right? Um so,
20:22
so looking at things as a whole, II think is probably
20:25
actually um almost more valuable in the long run but
20:28
you do need to have a pulse on the daily numbers for sure.
20:31
Love it. Um yeah, so that one uh obviously pretty selfish
20:35
planatory there. We don’t need to spend much time here. We’ll
20:38
be hitting more of that on the webinar tomorrow night. I
20:40
believe at 8 PM Eastern but the the idea is like when you look
20:43
at that weekly thing, we’re gonna dive into that tomorrow
20:44
night and really lift the hood and dial into it but you’re
20:46
gonna find you got crews that are crushing it for you and you
20:49
got other ones that are bleeding you dry. They’re just
20:51
hiding behind the scenes. Keep that pulse to forty hours. So,
20:54
we’re gonna show you on that webinar how to really um dial
20:57
in and understand that and um be able to actually use that
21:02
data and work with your teams for a productive but efficient
21:06
conversation to get get them back on track. Yeah. Either way
21:09
to coach him up or we just might have to coach him out.
21:11
You never know. Yeah. Yeah and there’s a fine line between you
21:15
know uh obviously you want peak performance and and efficiency
21:19
but people can get pretty uh pretty I don’t know what the
21:23
word is but a little bit antsy when you’re you’re riding them
21:26
a little bit too hard on on just like peak performance
21:28
twenty-four seven. There are gonna be. Oh they’ll get sloppy
21:31
brother. They will get sloppy. That’s Sibo. And we’ll talk
21:34
about that tomorrow night too for sure. No, for sure. So,
21:38
this isn’t necessarily um maybe something that’s ingrained in
21:41
the CRM. Uh whatever CRM you might be using. Uh if your
21:46
payroll is in there, of course, uh you know, it would be but
21:49
something that people don’t necessarily have a huge pulse
21:52
on. Uh yes, we’re we’re calculating the drive time and
21:55
all that but what’s the percentage of actual time that
21:59
you’re paying people for? Uh or or sorry that they’re actually
22:02
working like kind of billable hours to to some degree uh
22:05
versus the actual payroll hours that you’re paying them. Uh
22:09
basically at the end of the week, right? Cuz yes, you know,
22:12
you could be trafficking, tracking drive time uh in
22:15
service autopilot. You can be trying to track everything uh
22:18
but sometimes little things will get missed and really what
22:20
you’re actually paying them for um that that gross payroll
22:23
amount, however many hours are actually getting paid for. Uh
22:26
it is a very valuable number that you need to be tying back
22:29
into some of their performance data here to make sure that a
22:33
is 20% of our week. Uh you know, just kinda fudged and and
22:37
that’s loading time and shop time and gas time. Um and once
22:41
you have a baseline for that. Maybe maybe 20% is the number.
22:44
Then you can start looking at ways like Mike said um with the
22:48
the mulch example. But maybe it’s a something II know you’ve
22:52
spoken about this before many times where the guys are near
22:56
one job. They’re going to a gas station and all of a sudden
22:59
that that quick little fill up or bathroom bake is is a 30
23:03
minute break that that really wasn’t scheduled. So all these
23:06
little things can uh be looked at once you know how much
23:09
efficiency are we losing in a week. So things like that you
23:13
can look at for for that specific scenario would be
23:15
maybe if they’re using the gas station as an excuse maybe we
23:19
actually get some fuel tanks on site and the second stop of the
23:22
day isn’t the gas station and you know Tim Hortons and you
23:26
know 30 minutes of of unbillable time. I don’t know
23:29
about them Timbits brother. I wanna cut up the Timmy Host
23:31
stop but those can be expensive. We had a guy who was
23:34
costing him uh about $1,500 in additional pay per performance
23:38
pay just stopping Dunkin’ Donuts each day. So we’ll we’ll
23:41
dive into a little more of the math around tomorrow night but
23:43
that was that was an eye opener to the individual cuz at that
23:46
point he was getting paid by the budgeted time not the
23:49
actual time and I wanted to make more money and he just
23:51
couldn’t understand why he wasn’t hitting his numbers like
23:53
everybody else. So, we used the GPS in the truck to kinda
23:56
figure out what was going on and lo and behold, it was at
23:58
the Dunkin’ Donuts stop that was crushing him. Put him right
24:01
into traffic. Yup. No, that’s that’s huge. So, these are just
24:05
kind of AA variety of KPI’s that you need to be thinking
24:08
about but really what you wanna do is kinda bundle these into
24:11
some type of document. If it’s all in your CRM, great. These
24:15
are just gonna be reports that you’re kinda looking at but the
24:18
more important thing is not having the report um that you
24:21
know, you can go and access is do you actually have a pulse to
24:24
be looking at these numbers? Is it weekly? Is it monthly? Do
24:27
you actually have something blocked out in your calendar
24:29
that says, no matter what else is going on, I’m gonna take
24:32
minutes and look at these numbers and make sure that my
24:35
business is on track and this probably isn’t the totality of
24:38
all the ratios and you know, KPI’s that you need to be
24:42
looking at but this is definitely a good start and if
24:46
there’s any other other key ones that people want us to
24:48
dive into a little bit deeper, you know, you can put it in the
24:50
in the comments or any major ones that you think we missed
24:53
but this is I think is a great starting point um and
24:56
obviously, we’re gonna dive into things uh quite a bit
24:58
deeper tomorrow. Yeah, no, great, great work on this
25:00
Dillan. I think that uh I mean to be transparent just for
25:02
simple growth. I was on QuickBooks Online uh before a
25:05
team called eleven and I was running the step stats mid mid
25:08
month how much we had to hit for the next 15 days and uh I
25:12
was also looking at the um budget first actual so setting
25:16
up a budget in QuickBooks desk topper online so maybe that one
25:19
of these working on Wednesdays we can actually go in into uh
25:23
one of my QuickBooks account and actually show you how to
25:25
build out a budget but that’s huge cuz now when we go in in
25:29
QuickBooks we actually have a budget um and based on the
25:33
actual numbers that are happen we can run those comparisons
25:35
and there actually is some good uh great data in there so um
25:38
that that’s a key but I think if uh you are gonna go down
25:42
that road with the budgeting and QuickBooks, have a have a
25:44
talk with your accountant to make sure they’re talking
25:46
contractor accounting, not accountant accounting, talk
25:49
because the way they’re gonna approach certain things and
25:53
track it is gonna be for a tax purpose and not necessarily how
25:57
you’re gonna look at it as a daily or weekly or monthly or
25:59
quarterly um cadence for profit and loss. Um so, those are the
26:04
major things you wanna look at cuz your accountant could be
26:07
accelerating the depreciation. So, it looks like either made
26:09
more or less than you actually did. It could be looking at a
26:12
cash basis when you actually got paid not when the the
26:15
actual revenue was won and sold. So, those are some things
26:18
we wanna look at and then probably the last one is um
26:22
going in and um figure out what’s going with this one but
26:28
basically, going in and tracking um any of the the
26:33
reoccurring subscriptions or like services far as like lawn
26:36
mower and fertilizing. What is the reoccurring revenue that
26:39
goes pretty much forever til they cancel and then what’s the
26:42
one-time revenue? Obviously, the value of your business, the
26:45
longevity of the business is gonna be based greater upon the
26:49
reoccurring than the one time and then the third step, there
26:53
is the expansion of the upsell. So, going in and raising that
26:56
client lifetime value systematically through an
26:58
upsell process the way we do in the automation. So, uh Dillan,
27:02
any clues and thoughts here before we wrap it up. I know I
27:03
gotta get on a training call with another client here in a
27:07
few minutes but um things have been rocking and rolling and I
27:10
think it’s important that uh we take the time to work on it and
27:13
help other people work on it on Wednesdays here. So, I can’t
27:15
wait til next week and uh tomorrow night, I gotta get
27:18
some rest. We got a big night ahead of us for the uh KPI um
27:21
webinar and job costing that we’re gonna be doing uh at 8 PM
27:24
Eastern. Yeah and if anybody is uh did not receive an Email
27:28
from me regarding that and they’d like access to a
27:31
webinar, you can definitely reach out to me uh Dillan DILL
27:35
AN at Simple Growth Systems.com but otherwise yeah just just
27:39
make sure you’re spending whether you started out at 2
27:43
minutes a month whatever that might be. Lock out 2 minutes
27:45
and and put together uh even some of these KPI’s that we’re
27:49
talking about in a Google sheet and start tracking them on a
27:52
monthly basis and that’s that’s really where you gotta start
27:55
and it’ll evolve from there. Love it. Well, I’ll see you
27:57
tomorrow night. Work on it Wednesdays. We’ll see everybody
27:59
else that doesn’t attend tomorrow on you’re gonna miss
28:01
out if you don’t. Uh next Wednesday, I’m working on
28:04
Wednesdays and uh we’ll be posting on Facebook uh about
28:06
what we’re gonna be diving into. If you have any comments
28:08
or questions on the library recorded version, pop em in or
28:11
topic you’d like us to cover on work it, work on it Wednesdays.
28:14
It’s a mouthful for Wednesday, brother. Alright, I will see
28:16
you tomorrow night. Alright, take care. Alright, bye. If you
28:21
like this show, you might wanna check out our resources at WWW
28:25
dot Start Simple Growth dot com. While you’re there, enter
28:29
to win an estimator chatbot. Mike Callahan, is available for
28:33
private coaching.