Transcript:
1
Corner where you ask the
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questions we answered live
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right here on Facebook. So, had
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a question submitted earlier
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this week. Company business
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owner wanted to know how do we
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communicate with the crews to
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get them to stop going to gas
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stations and fast food joints
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outside of their break time
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because it’s absolutely burning
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up their profits and with the
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price of gas right now, it’s
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eroding their bottom lines.
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Well, folks, this is nothing
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new if you’ve owned a service
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business. After 25 years,
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owning a lawn care and snow
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removal business. This is
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Something that every business
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owner including myself has
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dealt with but we really need
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to be able to go out a
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conceptualize what the cost of
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that extra drive time is and if
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you eventually move to a
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pay-per-performance or peace
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rate system, how you educate
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your crew around making good
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decisions and not bad decisions
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and finally, even if you’re not
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using a P3 to pay for
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performance system, how do we
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have a conversation? So, the
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crew actually understands what
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they’re doing for their budget
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verse actual time and how this
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craziness of stopping at
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Wendy’s halfway across the city
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for a frosty on a 90-degree day
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is absolutely killing Ada
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cruise efficiency. Their profit
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in their pocket if they’re not
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paid for performance and
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killing the company at the same
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time. The madness has gotta
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end. Um just saw five or six
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trucks in a Wendy’s parking lot
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on the way to the office this
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morning. All eating breakfast
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with their feet up on the
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dashboard. That company was
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getting blood dry and if that
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company had paid for
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performance at peace rate,
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those employees were doing
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themselves some injustice. So,
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I’m going to pop the screen
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over in here. And really show
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How we broke it down in my
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company, Callahans Lawn Care
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and explained to the crew
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members how they actually were
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hurting themselves because
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they’re on a peace rate or pay
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performance system and how we
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can actually talk to crew
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members even if they’re not on
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that kind of system about the
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impact and how we can educate
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managers and business owners
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what the net effect of that gas
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station or Wendy’s stop is. So,
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I’m going to pop the screen
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open and talk about this here.
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So, what we’ve got here is just
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a blank sheet of paper. I’m
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going to recommend you put this
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on a dry erase board. A big in
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the shop. I’m going to kind of
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go free hand here. Uh but what
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we’re looking at and this is
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how you should be looking at
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your jobs too. And if you don’t
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have budgeted time, you really
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need it because this is what
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what’s going to happen if if
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you don’t. So, I have got job A
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right here. And I have got job
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B. Over here And what we’ve got
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going here is I’m going to bump
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this up here a little bit so
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everybody can kind of see it.
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Alright, so I’ve got Jab A.
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I’ve got job B. Imagine we’re
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cutting job A and and we’re
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going to we’re going to put as
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food over here as a another
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option. So, what we should be
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doing as we have job A, job B,
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job C, all the way through the
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day is we should be talking to
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the crew leaders that when they
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leave job A here, the budgeted
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time for job B start. Makes
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sense, right? On average, we
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need over the 25 or 30 stops a
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day. The average drive time
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should be built in the budgeted
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times of those jobs. You need
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to recover that overhead. As
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well as From the shop, to the
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first job, and from the last
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job, back to the shop. So,
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let’s say on average, it’s it’s
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three to 5 minutes drive time
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for this cruise. So, we’re
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going to say it’s a two-man
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crew for this this service
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business, lawn care, home
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cleaning, whatever, whatever
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that may be in my home or lawn
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care company. This is how we
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had it. So, we’re not going to
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have any budgeted time here but
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we’re going to say this is a
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thirty-minute the hours. So 30
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minutes of budgeted hours. So,
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theoretically, this crew here
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after they finish this job that
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30 minutes starts. So, they’re
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driving over to there. So, I’ve
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got 30 minutes to drive there,
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mow blown edge, and click out
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of my mobile device and then
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I’m going to go on to job C.
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So, this is the issue that
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happens when our employees make
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the fast food stop at the gas
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station stop but imagine this,
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we’re going to be really
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conservative here. This is
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probably the best-case
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scenario. We’ve got 5 minutes
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here. So, from job A, they’re
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driving five minutes to fast
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food joint. We know the gas
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station, the cigarette stop,
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whatever they’re doing here,
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probably going to be way more
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than 5 minutes. Um but let’s
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put that in as another 5
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minutes here. And just take a
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look at this. So you’ve got
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your five minutes at the gas
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station. You got five minutes
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driving there. And I’m going to
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say in the best case scenario
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you got another 5 minutes. So,
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real simple math here, if we’re
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driving from job A, five
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minutes to the fast food joint,
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there are another 5 minutes
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there, getting the frosty, and
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another five minutes back to
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job. B, that is with my math,
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here is five times free. That’s
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15 minutes for one person but
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once again, we’ve got a two-man
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crew there. So, we need to
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multiply that by two. So, what
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you kind of see here is
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happened is we have created a
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situation where by going five
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minutes out of the way, another
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five minutes at the gas station
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or fast food, another 5 minutes
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of job B. Technically, when we
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leave job A, job B’s budgeted
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time starts and I’ve got 30
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minutes for job B and I’ve
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already wasted 15 minutes times
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two guys. So, I’ve eaten my 15
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minutes times two. So, when I
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get to job B, I’m already over
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budget. So, if we’re paying
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them pay for performance,
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they’re getting paid for the
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budgeted hours. So, if they do
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this two to three times a day,
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that’s going to affect their
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pain in a negative way. Now,
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you, the business owner, this
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is, this is pretty detrimental
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as well. So, let’s say right
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now with gas prices and
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inflation, it’s costing you
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let’s say 38 to $40 per man
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hour break even before we make
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a profit. So, let’s round that
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around in the middle of
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thirty-nine dollars point 5.
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So, what that has cost you in
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expenses, not projected revenue
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but just in expenses is you
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have lost now an additional $19
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and 50 cents. So, if this was
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say a $40 cut, what you’ve done
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is you’ve added additional
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expense here. So, we won’t even
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play with the forty but really
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what this fast food joint stop
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has caused you is is $19 and 50
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cents. So, let’s say that these
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guys do this two or three times
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a day. You’re you’re looking at
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40 to $60 of extra expense a
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day and that’s not uncommon
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that we’re seeing. So, let’s
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just round it up to twenty
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bucks. You’ve got 40 bucks a
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day an additional expense,
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times five days a week, times,
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let’s just say a thirty-week
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season. Actually, we’ll do it
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thirty-six because even in the
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northeast with fall cleanup,
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spring cleanup, that’s about
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what you’re running at. Believe
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it or not, if they do that
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three times a day over your
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thirty-six-week season, they
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have incorporated an extra
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$7two hundred dollars of
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expense Um so, we’ve gotta be
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able to take a look at that and
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have some accountability and
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transparency. We’ll talk about
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some KPIs, Jake Roberts
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actually is in the Masterminds
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Group at Simple Growth. We’re
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going to be diving into KPIs
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and how to make sure all of
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this stuff is being accounted
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for and how to track it on a
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daily, weekly basis, and how to
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actually talk to your crews to
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do that so this is really
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really important here, and what
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I’m going to do is go into a
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test account here that I have,
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and I’m going to go in and pull
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up a account, for Maps Pro, so
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Google Maps. It doesn’t matter
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what software you’re using
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here, but I’m going to go in
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and just pull up this test
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account. So the second part of
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this is, if they’re being
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efficient, but you don’t have
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standard standardized operating
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procedures, you’re also hurting
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yourself. So, a lot of the
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companies that we’ve seen,
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including myself in the early
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days, they don’t have a a
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standard way of handling how
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they tackle where to park,
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where to stop, where to do
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these jobs. So, if you’re
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looking at this house here in a
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residential situation, let’s
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not, let’s not accommodate
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stick edging. There is a way to
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do this but I’m just going to
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sit a very simplistic way. If
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you’re pulling up to this
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house, where are you parking?
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Are you parking over here with
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these two cars are at? Are you
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parking over here? So, before
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you answer that, in my opinion,
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you want to ask, which way is
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the weed wacker carrying the
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weed wacker? Is it off to the
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right or is it off to the left?
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In whatever way the head of the
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weed wacker is on, the left or
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the right where I’m parking.
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So, if the guy’s holding it
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like this and the weed wacker
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heads right here, I’m parking
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down here and what the reason
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we’re doing is we’re
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streamlining and creating
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standardization. So, this will
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save four to 6 minutes alone
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every time consistently and
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create better quality but what
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we would do is he hops off the
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trailer and he’s coming down
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here and going around the
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sidewalk on a 90 up the
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driveway around the house and
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the landscape badge here. Down
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around the sidewalk, back over
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here, and then right here and
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when he’s here, the Carlos and
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the team who trained these guys
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said, don’t break the snake.
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It’s a streamline thing. So, if
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there’s even something right
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next to it, you don’t weed
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whack around it but if there’s
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something in the front yard,
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you grab it and we’re walking
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around the house going down the
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fence line. Maybe you’re
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grabbing a shed. If there’s a
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tree, we grab it and then we’re
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walking all the way down back
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to this truck and trailer. Now,
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we’ve streamlined the process.
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Ideally, this guy should be
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done before the guy mowing. If
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it’s two-man crew. He’s picking
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up the blower very same
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fashion. Blowing everything off
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here. If the guy’s in the
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backyard, he’s going to tackle
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the rest of this year and then,
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he’s going to go around the
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house but hopefully, he’s going
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up and back around the house.
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And blowing that off. All in
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one streamline fashion and if
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we go in and use that same
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system of going up and down and
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around the house, blowing off
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the mulch, coming back in here
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and then going out round, load
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off any swing sets or anything.
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He’s back at the trailer or
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truck with trailer and lifts
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the gate for the guy there. But
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the positive thing is now,
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everything’s blown off in a
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systematic fashion. Now, the
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mower, in my opinion, should be
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mowing the side yard up to the
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back of the house, the whole
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front and the side
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before he goes into the backs,
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everything’s done. He’s facing
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an obviously away from the beds
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in the house and then, most dry
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or mowers are going to be
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discharging from the right. So,
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he’s going to go starting here
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and coming back. Now,
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obviously, we need to change
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the directions but as he’s done
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now, he’s coming back out
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landing right at the truck and
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trailer. So, you want to create
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a standardized system or
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procedure and then, the guy in
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the mower is probably running
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the crew can see way before a
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guy misses something where he’s
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going to miss it because he’s
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doing it the same way. Now, if
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this is a bigger House and the
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guy weed whacking’s done and
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he’s going to jump on another
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sixty. He knows where the guy
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is always starting and stopping
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so he can start in an area and
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work systematically towards
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him. But creating a
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standardized procedure like
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this to where to park based on
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the way the guys weed whacking
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and basically a systematized
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streamline way around the house
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for weed whacking and blowing
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and where they’re going to be
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mowing first and mowing last
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can save big big time and money
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and create a better quality
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product. So we tackled drive
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time, how to talk about it, how
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to those gas station or frosty
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stops at Wendy’s and where we
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park in the truck for
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systemized predictability and
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that’s going to improve the
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quality and the ability for the
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guy managing that crew to
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double check that standard
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process. So, questions or
11:34
comments, drop them below.
11:35
Callahans Corner. You ask the
11:36
questions. We answer them live
11:39
right here on Facebook