Transcript:
0:00 Make a quick video. I had a
0:02
question submitted right now
0:04
with the crazy gas prices and
0:07
needing to cover drive time.
0:08
How do we actually go out for
0:09
best practice and institute
0:11
this into a software program to
0:13
make sure that each and every
0:15
job moving forward that is
0:17
estimated includes travel time
0:19
and approximate cost to cover
0:22
the labor, overhead, and the
0:24
gas. As well as if you’re doing
0:27
design, build, or landscape
0:28
maintenance far as like mulch
0:29
installation shrub pruning,
0:31
things like that. How do we
0:33
account for the travel time and
0:34
the gas cost that’s passed on
0:37
to the client but it’s not
0:38
shown upfront as an extra line
0:40
item itself. So, what I’m
0:42
going to do is open up a
0:43
software that we work with,
0:44
Service Autopilot and show you
0:45
how this is done. Uh the final
0:47
product that I’m going to
0:48
reverse engineer it over the
0:49
next 10 to 15 minutes but this
0:50
is going to be applicable to
0:52
any software that you’re using.
0:53
If you’re not using a software,
0:54
this is a great option to go
0:57
out and build this into your
0:57
system. This is something we’ve
0:58
done in my company since about
1:00
two thousand8 when gas prices
1:04
skyrocketed and we hit a
1:05
recession. So, this is tried
1:06
and tested and we’ve done this
1:08
for hundreds and hundreds of
1:09
companies over the years. I’m
1:10
going to show you actually how
1:11
to build this out yourself
1:12
here. So, comment your
1:13
questions, drop em below but
1:15
that’s how we’re going to do
1:16
it. So, right now, I’m going to
1:17
go in and this is the workflow
1:18
of how it’s going to happen in
1:19
your office and I’ll actually
1:20
show you how to set this up.
1:22
So, first thing I want to do is
1:23
go in. Uh this product here
1:25
service autopilot. This can be
1:26
done. Um even with an excel
1:28
sheet but if you’re not doing
1:29
you should be doing this in a
1:31
software. If not, at least a
1:32
Google sheeter sells sheet. So,
1:34
what I’m going to do is put in
1:34
the first blame and last name
1:37
of our lead. So, they’re
1:38
calling your office imagine and
1:40
we’re going in now and just
1:41
having a conversation asking
1:44
them where their property is.
1:46
Now, this could be commercial
1:47
or residential, really doesn’t
1:49
matter. and we put in the
1:54
postal code and then the system
1:55
if it’s in question is going to
1:56
ask us what city and state that
1:58
is. Now, we’ve got information.
2:00
You notice the service address
2:01
is automatically going into the
2:02
billing address and we’re
2:03
going to want to put in an
2:04
Email address so we can
2:06
actually send them out a
2:08
estimate with the gas prices
2:11
and overhead included in it and
2:13
we would put their cellphone
2:14
number in there so we could
2:15
follow up with an automated
2:16
system to text them and make
2:17
sure they got this estimate.
2:19
Final couple things I recommend
2:21
that you’re doing before we get
2:21
to this. Uh things you should
2:23
be tracking is the account type
2:24
commercial and residential and
2:26
finally the sales. Uh how’d you
2:28
how’d you hear about it? So, I
2:28
heard about you from your nine
2:29
around direct mailing. Or the
2:32
every direct door. EDM, every
2:34
direct door mailing with the
2:35
long copy of the picture. So
2:37
we’ve got them into the
2:37
software. We’re going to pull
2:40
him up. Now, we’re working this
2:41
lead over the phone and this is
2:42
where we actually kind of are
2:43
tackling the question at hand.
2:45
How do we go out and build for
2:46
these things and not raise a
2:49
red flag with the future
2:50
client? So, what we’re going to
2:51
do is go into the more tab and
2:53
I’m going to go into property
2:54
measurement and actually
2:55
measure out this property. Now,
2:56
I’m going to show you here
2:57
shortly how we actually have
2:58
the math going in here but I
2:59
want to draw some context to
3:01
this. So, right inside the
3:02
software, we’re going to go in
3:04
and measure that area. and got
3:09
a little busy with the clicking
3:10
here but let me go in and
3:11
measure this out. So, I’m just
3:13
grabbing the turf area. So,
3:14
this could be for lawn mowing,
3:16
could be fertilization, could
3:18
be any service. Right now, I’m
3:19
going to do a lawn mowing
3:20
example just for real basic
3:23
travel time and gas
3:24
recuperation. So, we’ve got the
3:26
area here. I’m going to
3:27
recommend if especially if
3:28
you’re using service autopilot,
3:29
you want to go in and color
3:31
code these. and name it. So,
3:33
every time we come up to the
3:35
client record, we know the
3:36
areas we’re servicing, what
3:36
we’re on the hook for. This is
3:38
a test account. It’s got a ton
3:40
of these custom fields but what
3:41
I’ve done is embedded a couple
3:43
emojis here. So, that will make
3:45
your sorting a little bit
3:47
easier. So, that’s a little pro
3:48
tip here if you are using
3:49
service autopilot. So, we’re
3:50
going to hit save and we’ve
3:51
gone in and adjusted this. So,
3:55
once we save that custom field,
3:57
we’re going to go in and add an
3:59
estimate. So, I’m going to do a
4:00
lawn mowing estimate. I’m also
4:01
going to do one for mulch
4:03
installation as well. So, we
4:04
actually can see how to add
4:07
material pickup as well as the
4:09
drive time based on location.
4:11
So, like I said, we’re going to
4:13
open this up and show you how
4:14
to actually build this but this
4:15
is the actual idea. So, I’m
4:16
going to go and grab my
4:17
template and all my services
4:20
are going to load here in a
4:21
second and what we’ve done is
4:23
at 8400 square feet is now that
4:25
I measured on the map
4:26
automatically comes in. On all
4:28
this is fictitious, you need to
4:29
make your own pricing but based
4:31
on the model that we set up
4:32
here, it’s charging $30 for the
4:34
on-site only mowing, weed wa
4:37
blowing, and edging. Uh we said
4:39
that’s going to take point four
4:40
man hours and based on the
4:41
hourly cost in his test
4:43
account. It’s costing us $14
4:44
and 76 cents before we make a
4:47
profit. So that comes out to be
4:48
about a 50% net profit bottom
4:50
line in your bank account. Now
4:52
you ask how do we account for
4:53
the drive times? Like I said,
4:55
this is actually from my
4:56
company, Callahan’s Lawn Care.
4:58
We’ve recreated this in this
4:59
test account. Uh but we’ve got
5:00
several areas. So if you’re in
5:02
Upstate New York, over in
5:04
Rochester, New York, these are
5:04
going to actually look
5:06
familiar. These are postal
5:08
codes. So, one, four, five,
5:08
three, four, one, four, four,
5:10
five, oh, some members on our
5:12
development team actually live
5:12
out there in Fairport. One,
5:14
four, five, two, six. In Greece
5:16
and Irondequoit, we’re right
5:17
near our shop. So, what we
5:18
would do is the admin in the
5:20
office would simply go by the
5:20
zip code and go in and
5:23
literally click in here. So, if
5:25
you’re going to this first zip
5:26
code, we just type the one in
5:27
there because we’re going there
5:28
once and it calculates its. 16
5:31
man hour. So, it multiplies it
5:32
by your hourly rate and
5:33
calculated $8 and nine cents.
5:35
Now, conversely, if we were
5:37
right by our shop and we did it
5:38
here in this Greece area, it’s
5:39
only $three dollarsand twenty3
5:41
cents and point oh six. So, it
5:43
allows you to basically be more
5:47
competitive, price wise, closer
5:50
to your shop but what we’ve
5:51
done is taking the map and the
5:54
routes of all our jobs and all
5:57
the jobs that are in the one,
5:59
four, five, three, four, postal
6:01
code. We’ve averaged them in.
6:03
So, if there’s five different
6:04
days we’re out there, we took
6:05
those five days on average
6:07
through the mapping program and
6:09
from the shop all the way
6:10
through those jobs and back was
6:11
the total time. Um not
6:15
basically drive-time
6:15
allocation. So, if there was 1
6:18
hour of drive time in those 30
6:19
stops, that would be 2 minutes
6:21
of average drive time per
6:23
visit. So, that’s how the math
6:25
has worked in here. Now, based
6:27
on this in a break it out here
6:30
in an Excel sheet a little bit
6:31
in a minute. How did we figure
6:32
out the drive time caustic
6:33
fence and actually add that
6:34
into that charge? I’m going to
6:36
get to that but this is what it
6:36
looks like in the software and
6:39
now, all the clients going to
6:39
see is lawn mowing here for
6:41
thirty-eight oh 9. 56 man hours
6:45
and a cost of twenty-six
6:47
seventy-four. So, we’ve got
6:48
about a 45% net profit margin
6:51
long as the guys and girls on
6:52
the crew hit their budgeted
6:54
time with equality. So, we’re
6:55
going to go to drafted quote.
6:57
Now, this is a live estimate we
6:58
built in the on-site time
7:00
specific to the machines we’re
7:01
using so you could break it out
7:03
to a sixty, a fifty-two, a
7:04
forty-eight, a push mower. Um
7:06
all those different things.
7:07
Backyard and front yard with or
7:09
without a gate, a smaller
7:10
mower. All these variables can
7:11
be built in here with that
7:13
drive time and overhead cost
7:14
effect. Now, in addition, if we
7:15
scroll down here I didn’t fill
7:19
out the on-site estimate form
7:19
but what would happen is you’ve
7:21
got one, two, or three inches
7:23
depths of bed. So, I’m going to
7:25
say we’re going out to this
7:25
residential property and it’s a
7:27
little more the top dress but
7:28
it’s two-inch addition, two
7:29
inches of additional depth. So,
7:31
we would plug in say 600 square
7:32
feet and what that’s going to
7:34
do is calculate $330 for the
7:38
three yards of mulch, three
7:39
hours to get it done, and 198
7:42
labor materials. That’s a 40%
7:43
profit margin. So, now, what we
7:45
can do is we figure on average
7:47
is how long is this going to
7:49
take to actually either fill up
7:51
the dump truck or the dump
7:55
trailer on site or drive to a
7:57
nursing unit filled and get to
7:58
that property on average in our
8:00
service area. So, based on
8:02
this, let’s say
8:06
this is 1, 200 square feet and
8:08
that’s six yards of malt. So,
8:10
maybe our dump trailer or dump
8:11
truck can only handle four,
8:13
five yards of mulch. That’s
8:13
actually going to make us go to
8:14
the shop twice and actually
8:17
wore the nursery and fill up
8:18
twice for the wholesaler. So,
8:19
what I could do is put in two
8:21
units here and it would be an
8:23
extra $42 dollars and 90 cents
8:24
and point 66 man hour. So,
8:26
we’ve covered the drive time
8:28
and the drive time gas effect
8:31
for that individual to go and
8:32
refill that dump truck twice.
8:34
So, these are the keys to
8:36
success that I usually see when
8:37
we set these up. We’ve done
8:39
this for my company. Uh
8:40
multi-seven-figure business as
8:42
well as hundreds of other
8:43
businesses anywhere from a half
8:44
a million to all all the way up
8:46
to 19 to 20 million in annual
8:48
revenue and it works on scale
8:49
but we need to do is build this
8:51
in here and be able to hit save
8:52
and have a system that a very
8:56
can measure this or enter data
8:58
in or someone in the field
8:59
through their mobile device and
9:00
be able to create these
9:02
estimates in a systematic way
9:03
that covers that drive time,
9:04
gas effect, and budgeted time.
9:06
It projects profit. So, once we
9:09
have this, we can go in
9:10
literally and hit Email and
9:13
what it’s going to do is pull
9:15
up a an Email here and here it
9:18
is right here and we’ve got a
9:20
pretemplated Email button. You
9:22
can click if you’re on your
9:23
mobile in the five major
9:24
reasons why our business is
9:26
different than other
9:26
businesses. So, this right here
9:28
is basically incorporation of a
9:30
lead letter and it
9:31
differentiates yourself and
9:32
you’ve built it enough value
9:33
into this before they get the
9:34
estimates. So, price is not the
9:36
issue. So, what I’m going to do
9:37
is hit send real quick and on
9:38
my other screen, I’m going to
9:40
pull up my Email real quick so
9:40
you can see what the consumer
9:42
is getting and how we built
9:43
that in and then in the next
9:44
five to 8 minutes, I’m going to
9:46
actually go in and show you how
9:47
to build this out inside your
9:50
software system here. So, this
9:54
is going to be, in my opinion,
9:56
instrumental right now with
9:58
everything that’s going on in
10:01
the industry right now. So,
10:02
what we’ve got here is inside
10:03
my Email inbox. The ability to
10:04
go and see the Email that was
10:06
already pretemplated. Nobody’s
10:08
writing an Email. It’s said it
10:09
and forget it. We’ve got some
10:10
testimonials in here. Um and
10:12
what we’re going to do is the
10:13
customer now is going to click
10:14
view my proposal and as this
10:16
opens up, we’ve got it right
10:18
here. Step one, select the
10:20
services. Step 2, accept and
10:21
sign. Now, what I’m going to
10:23
recommend for best practice,
10:24
don’t have all this verbiage in
10:25
here but in this test account,
10:27
we’ve got all the verbiage to
10:28
say, hey, you can put as much
10:29
details you want in here or you
10:31
have a couple things spilling
10:33
the exact service and
10:34
underneath in in the contract
10:36
or the estimate terms you have,
10:37
the finer details but once
10:38
again, it’s got that
10:39
thirty-nine oh nine in there
10:40
per cut includes the drive time
10:42
and budgeted time. Consumer can
10:44
click it and another key to
10:45
success is we can go in and
10:48
have a video embedded live
10:50
inside the estimate that
10:52
actually talks about what’s
10:53
included, not included in the
10:54
service, and we can create more
10:56
perceived value. So, this video
10:57
myself in here was our our
10:59
automated salesperson,
11:00
literally twenty-four seven.
11:02
Now, the mulch insulation
11:03
obviously, we could’ve updated
11:05
the details but we built this
11:07
out as a test account but you
11:08
got $702 and 90 cents. That
11:10
actually include the mulch
11:13
installed, I believe it was six
11:14
yards and it includes the drive
11:16
time for two different visits
11:17
with the dump trucker dump
11:19
trailer. So, that’s the idea
11:20
here. Now, obviously, we can go
11:21
in and update that and another
11:24
pro tip here. So, if we went
11:25
in, you can go in on the fly
11:29
and update this one off.
11:31
Traditionally, you want that
11:32
all loaded in but what you
11:33
could do is includes mulch,
11:43
flavor or mulch, installation
11:47
of double round,
11:56
and you can put that in there.
11:58
So, you can obviously put some
11:59
more details and everything.
12:00
You could customize it on the
12:01
fly, hit save. Cool thing here
12:03
is when I go to view my
12:05
proposal and I actually refresh
12:07
this. Uh system hasn’t caught
12:11
up but that would actually
12:12
update this system here. So, we
12:14
go and see if I can get this to
12:15
actually update for us just so
12:16
I can show you the live update.
12:18
This is a cool trick. You can
12:20
also do this for change
12:22
requests as well. And actually
12:24
get that to come out.
12:28
and
12:29
we’ll give it one more try.
12:31
Alright, so right there, it
12:32
automatically updates that. So,
12:34
that’s another pro tip. You can
12:35
update those until some excepts
12:36
or doesn’t accept it which
12:37
means you can also update the
12:38
price. So, that’s what it’s
12:40
going to look like finish.
12:41
You’re going to measure it
12:42
through the mapping program.
12:43
Probably have an on-site
12:44
estimate form to plug in the
12:46
square footage of the mulch
12:46
better measured online. We’ve
12:48
included the additional drive
12:50
time in there for the mulch and
12:53
we’ve included it for the lawn
12:54
mowing based on postal code.
12:56
here. So, As we’re going in,
12:58
this is how we actually fill
13:00
this out. So, if our dollar per
13:03
hour goal is say, let’s say $65
13:05
and we’ve gone through a
13:07
financial overhead recovery
13:09
model. So, we know it’s costing
13:11
us $42 per man hour break even.
13:13
That’s including your average
13:15
fuel cost. Now, at the higher
13:17
rate, that’s going to be built
13:18
in. So, what we do is say,
13:19
okay, what’s our base price?
13:20
The lowest we would charge to
13:21
go in. So, I’m going to say at
13:22
4-5 bucks and based on that
13:25
equals 4-five divided by 6five
13:27
bucks an hour. The longest
13:29
amount of time I can take is
13:30
point six nine man hours right
13:32
here. Now, a lot of people are
13:33
going to be like, what is point
13:34
69 man hour mean? Well, that
13:36
means if one person was mow
13:38
blowing stick edging that
13:38
property, they’d have 41. 4
13:40
minutes to get that done.
13:41
That’s the most amount of time.
13:42
So, we’ve got that in there and
13:44
I’m going to say between one
13:45
and 5000 square feet is my base
13:48
price of forty-five and if I go
13:50
in and add some simple math
13:51
here, that budgeted time, time
13:53
is a break, even a 42 hour.
13:55
Coverage drive and gas here. Uh
13:58
that’s twenty-nine oh eight.
13:59
So, you’re charging 4five. It’s
14:01
cost you twenty-nine oh eight.
14:03
You got about a thirty-five
14:04
percent profit margin of
14:05
fifteen ninety-two. In this
14:07
example, now, what I’m going to
14:08
say is a very basic model.
14:09
Every thousand square feet over
14:10
the first 5000 is let’s say our
14:13
production rate is 6 minutes
14:16
per thousand. That’s
14:17
significantly higher than it
14:19
probably would be but we’ll go
14:20
with it just for this example.
14:21
So, it’s point 10 or. 1 man
14:24
hour. So, if I would go in and
14:26
that multiply by my hour rate
14:28
of sixty-five, I would need to
14:30
charge $6 and 50 cents per
14:31
thousand and it would be
14:32
costing me $4 and 20 cents. So,
14:35
that’s the on-site labor and
14:37
how we create a system where
14:38
you measure it and that’s what
14:39
the math does in the back end
14:40
of the software. Now, for drive
14:43
time, I’m going to just put DT
14:45
one four six one two. That’s
14:47
the the postal code, okay? And
14:49
I would say from one to one
14:52
trips to that area, let’s just
14:53
say, on average, each stop the
14:54
drive from the shop, to the
14:57
first stop, all the way through
14:58
25 stops and back to the shop
14:59
again. Let’s say that takes
15:01
about 8 minutes drive time. So,
15:03
eight divided by 60 is point
15:06
one three. So, my price would
15:09
be the. point13 man hours times
15:11
6-5 bucks. It would make that
15:12
would ensure that I would have
15:14
to charge $8 and 67 cents per
15:18
stop to cover that non-billable
15:19
drive time and the additional
15:20
gas expenses built in to now
15:23
the forty-two an hour from the
15:25
38 and every one visit over the
15:28
first visit is an additional
15:29
eight seventy-six point one
15:30
three man hours and its cost is
15:32
560. So, that’s how we build in
15:34
the onsite versus the drive
15:35
time and that’s exactly what we
15:37
had inside service autopilot.
15:39
That’s what was going on behind
15:41
the scenes. Now, same idea as
15:43
the drive time here, pickup,
15:46
and delivery of materials, 65.
15:49
I’m going to move that 30 up to
15:50
$42 an hour break even based on
15:51
new gas prices and inflation
15:53
and once again, it’s a
15:54
one-to-one ratio. So, each
15:56
visit, if it took me forty
15:58
minutes to do at. 75 man hours,
16:01
I would have to charge at 65
16:05
bucks an hour, forty-eight, 75
16:07
per pickup of materials. So,
16:10
each pickup, it’s an additional
16:12
4eight seventy-five. Each
16:13
additional one is another
16:14
forty-eight seventy-five. What
16:15
we’re going to do then is go
16:17
into service autopilot under
16:20
the gear icon and this is where
16:21
it actually all comes together.
16:22
So, you’re going to build out
16:24
some things called custom
16:25
fields first. These are those
16:26
job variables. So, you’re
16:27
going to go and create
16:34
per square footage and it would
16:38
be built to a number and then
16:40
save a new and then you would
16:42
put in the one four six, one,
16:44
two, that’s the postal code,
16:47
that I had in the example.
16:49
Primetime, number of trips. Hit
16:51
say, next step is we’re
16:53
going to go into
16:57
services and build this out.
16:58
Now, we’re going to use a
16:59
simple growth blueprint here.
17:00
This blueprint, we blueprint it
17:02
before we build it just like we
17:03
build a house off of blueprint.
17:04
Do you not want to go in and do
17:06
this without a blueprint? So,
17:07
we’re going to do is add a
17:08
service and quickly, I’m
17:10
going to show you how to build
17:11
this out. So, you would have
17:12
your lawn mowing.
17:17
and
17:18
you would need to go in the
17:19
per unit, invoice description,
17:21
income account is going to be
17:23
maintenance services and
17:25
estimates what the subscription
17:27
is on the, on the estimate, and
17:29
then rate matrix, we go to
17:30
quantity rate times visits, we
17:32
would go in and pull up your
17:35
turf square footage, and the
17:37
one to 5000 square feet that
17:40
was on the blueprint here,
17:42
taking the top five lines and
17:44
bottom five lines and literally
17:45
put him in there and that’s as
17:47
easy it is. Now, you’ve built
17:48
in your overhead recovery and
17:49
job costing for your service
17:52
business. Now, this could be
17:53
lawn care, home cleaning, pest
17:54
control, pool services, holiday
17:56
lights. List goes on and on.
17:58
We’ve done this in multiple
17:59
industries. Uh asphalt
18:01
maintenance, you name it. So,
18:02
what we’re doing is just
18:04
literally taking these top five
18:05
lines and I’m driving it right
18:07
here. So, one to 5000 square
18:08
feet is forty-five bucks. And
18:12
We’ve got point 69 man hours.
18:18
and it is costing us 2908
18:22
before profit. So, you kind of
18:24
get the idea. We’re just
18:25
rebuilding that blueprint now.
18:26
The top five lines and the
18:27
bottom five lines. Each one of
18:29
these services and now they’re
18:31
connected in the back end of
18:32
the template. You measure it,
18:33
it pulls the math in. We know
18:35
the math is right because we
18:36
tested it in the blueprint and
18:37
now we have a way to create
18:39
systematic, repeatable
18:40
estimates can be delegated to
18:41
anybody in your business.
18:43
Callahan’s Corners, you ask the
18:44
question, we answer them live
18:45
right here on Facebook. Leave
18:46
your comments, questions below
18:47
but that’s how I recommend
18:49
tackling the drive time per
18:51
postal code or zone in your
18:52
business and up and delivery or
18:55
disposal of debris for your
18:57
landscape maintenance services
18:58
or your hardscaping services
19:00
and how you’d update that based
19:02
on the higher gas prices and
19:03
have that job-costing and
19:05
additional prices hidden in the
19:08
back end of the software that
19:08
you’re using. So, comment your
19:09
questions, drop below.
19:11
Callahan’s Corner US