00:02
Welcome back to work it
00:03
Wednesday. Mike Allen here with
00:04
Dylan from the Simple Grow
00:06
Team. Going to be talking about
00:07
things you should be working on
00:08
in your business um and well,
00:11
actually the things you should
00:12
be working on in on your
00:12
business and not in your
00:13
business is Michael Gerber says
00:14
but Dylan and I are going to be
00:15
breaking down production rate
00:17
based estimating for
00:18
fertilization and weed control
00:19
based on a standard push
00:22
spreader hose and reel in a
00:24
stand on unit. Some of those uh
00:26
prima green or maybe a Toro X
00:27
mark Um but Dylan, I know
00:29
you’ve got some insight working
00:29
with of businesses already this
00:32
year. Um so, we’re going to be
00:34
going over a basic matrix of a
00:35
uh standard based price. The
00:37
minimum to show up in a set
00:39
amount. There are over a
00:40
thousand square feet and then
00:41
we’re going to go into breaking
00:43
down um price breaks based on
00:46
larger properties up to an acre
00:47
and actually over. So um I know
00:49
you’ve been dealing with a lot
00:50
of people here with simple
00:50
growth facing uh selling a
00:52
product based estimating
00:54
system. We’ve budgeted time and
00:55
actual budgeted cost including
00:57
overhead recovery and the
00:58
actual materials per round So,
01:00
I’ll give you the floor here
01:02
before you open up the screen
01:02
and actually show people how to
01:04
do this. Yeah. Uh speaking with
01:06
so many people recently, uh
01:09
obviously everybody here knows
01:10
that the matrix is like a
01:11
really really important tool, a
01:14
really neat tool rather than
01:15
taking so much time to build
01:16
out an estimate every time you
01:18
do it, you put in the work up
01:19
front and then estimates become
01:21
very very easy. The one thing
01:22
that I’m excited to break down
01:24
here is the number one issue I
01:26
see with Matrix is people say,
01:28
oh it might is actually built
01:30
up pretty well but over 20
01:33
thousand square feet, I always
01:36
find myself having to adjust
01:37
the price that it actually
01:38
produces because I know for
01:39
sure that’s not going to get
01:41
accepted and then it it just
01:43
kind of compounds as you get
01:45
into bigger, larger, and larger
01:46
properties like two, three
01:48
acres and above. A lot of
01:49
people just throw the matrix
01:51
kind of out the window. Um so
01:53
with certain price breaks
01:55
actually built into it, you can
01:57
still ensure that you’re
01:58
profitable um but also sure
02:00
that you’re your price isn’t uh
02:02
you know, too outlandish.
02:03
You’re actually going to be
02:04
winning these bids because if
02:06
you’re having to manually
02:06
adjust the price that the
02:07
system produces for you, your
02:10
your matrix is broken to some
02:11
degree So that that’s kind of
02:13
what kind of what I wanted to
02:14
say before we hop in here.
02:15
Yeah, I could agree with the
02:17
bar too and like it face value
02:18
where he thinks it’s it’s set
02:19
up correctly and it may be but
02:21
once it gets past a fifteen to
02:23
20 thousand square feet the the
02:24
prices get really wonky and
02:26
then the other thing that we
02:26
see is a lot of times is like,
02:28
hey, we’ve got a production
02:29
based system but it doesn’t
02:31
actually show us what the
02:32
projected profit profit
02:33
percentages with materials and
02:34
a lot of times we don’ a
02:37
budgeted time um and we
02:38
obviously really want to base
02:39
in that square footage because
02:40
no matter the software we’re
02:41
going out when we go out to
02:42
dispatch it on a dispatch board
02:44
or whatever that is in your
02:46
software, We really want to be
02:46
able to dial that custom field
02:48
of that job Variables such as
02:50
church square footage because
02:51
that’s going to give us the
02:51
ability to go out then and
02:54
actually project how many bags
02:56
or gallons or ounces of
02:58
material we need per round per
02:59
day and actually set a goal for
03:01
the technician with a quality
03:02
standards. So, um couldn’t
03:03
agree with you more on that
03:04
one, Dylan. So, what to do is
03:06
break open here in the stream
03:08
and uh show the simple growth
03:11
uh blueprint here. So, I love
03:13
the fact that you came in after
03:14
me. So, you’re actually on top
03:15
now and I’m not on top of the
03:16
video here. So this is perfect.
03:17
Thank you. So, what we’ve got
03:20
here is uh you Dylan is raising
03:21
the roof. Um so, over here,
03:23
we’ve got the simple growth
03:25
blueprint and I’m going to go
03:26
into a very basic uh two line
03:28
production based estimating
03:30
system. Dylan, feel free to hop
03:31
in and and you know give some
03:33
some feedback on this year but
03:34
I’m going to scroll on here
03:35
just to service number one and
03:37
I’m going to call this uh we’re
03:38
not going to build out all five
03:40
rounds but I’m going to show
03:41
you some examples of the basic
03:42
matrix and then with price
03:43
breaks but this could be round
03:45
one. Uh pre emergent
03:51
is our service. Um with her.
03:57
abbreviated here just for
03:58
today. A formality but we have,
03:59
that’s the service name or it
04:00
could be round one but round
04:02
one is that service. So, the
04:05
custom field of the job
04:06
variable is going to be curved
04:08
square footage that is going to
04:12
be a core service. So, if
04:13
you’re using a product like
04:14
service autopilot, this is
04:15
actually going to be one
04:16
service that’s actually
04:17
buttoned up into a package. So,
04:19
we have time. We’ll actually go
04:20
into there. So, the question I
04:21
always ask Dylan is um what is
04:24
your base price to show up if
04:25
you have one for your
04:28
fertilization service. So,
04:29
Dylan, you may say, hey, Mike,
04:30
my base price to show up for
04:33
fertilization is $45 um $45
04:36
here to show up and then the
04:38
next question really is Dylan,
04:39
how many, how many square feet
04:41
does that cover um of just turf
04:43
area? We’re not looking at lot
04:45
size like full area. We’re
04:45
talking about treatable and
04:47
that’s what we’re going to
04:48
recommend. It may take an extra
04:49
minute or two to measure that
04:51
area but we really want to be
04:52
competitive and make sure we
04:53
know our production rates once
04:55
we get these numbers in to run
04:57
in the report center. So, uh
04:58
Dylan, you may be coming at me
04:59
and say, hey, Mike. uh that
05:01
covers up to 5000 square feet
05:04
That’s great. So, Dylan, uh if
05:05
you are on a call with Simple
05:07
Growth here building it out
05:08
yourself, what would be your
05:09
charge per manner? What would
05:10
be looking to get per man hour?
05:13
usually on fertilization, weed
05:14
control services like this.
05:15
it’s a little bit more than
05:16
like the lawn mowing rate. So,
05:18
a pretty common one that I see
05:20
and uh people strive for is
05:21
about Seventy-five bucks uh uh
05:22
a an hour and in the northeast
05:25
here, we may be breaking even
05:26
it’s a little higher uh
05:28
overhead recovery and the
05:30
technicians especially with
05:31
kind of post COVID or or of
05:34
covid’s higher. So, I’m I’m
05:36
going to say that this is
05:36
probably going to be close to
05:37
about 46 bucks per hour break
05:39
unit So total overhead with
05:40
labor and labor and recovery.
05:43
So, what we’ve got here is our
05:44
base price is one to 5000 bucks
05:46
are based price. Um we’re going
05:48
to adjust a budgeted time. now
05:52
looking at this. So, an
05:55
industry average is maybe like
05:56
.05 or .047. If you’re using a
05:58
push spreader Now, uh Uh I’ll
06:00
put in there. So, maybe it’s uh
06:02
let’s round it up to 105 Times.
06:04
We’ve got five parts and
06:05
thousands. So, it’s basically
06:08
15 minutes .25 Man hours. Well,
06:10
Dylan, I don’t know about you
06:11
but if I’m I’m including my
06:12
base price, our technicians
06:14
probably going to have to get
06:15
out and unload the machine,
06:16
fill the hopper and maybe in
06:18
certain areas actually put up
06:20
some pesticide warning signs.
06:21
So maybe we’re going to bump
06:21
this up to uh .35 Man hours to
06:25
cover that extra uh set up time
06:28
to actually be covered in
06:29
there. Now, a lot of companies
06:30
will also cover your non
06:31
billable um mobilization on
06:34
average. So, maybe your first
06:36
5000 square feet really is
06:37
going to be close to the .45
06:39
because we’re going to include
06:40
some mobilization in there. So
06:42
So, that’s normally the to
06:43
three different things we’re
06:44
talking about are looking at is
06:45
we’re building out the basic
06:47
methodology before we go to a
06:48
price break methodology. So, as
06:50
you’re looking at the top
06:51
numbers here, Dylan looks like
06:52
your company. I was really
06:53
doing really good. We’re we’re
06:54
we’re making uh $24 profited a
06:58
54% margin. Well, the one thing
07:00
that most companies always
07:02
forget about is product cost
07:05
and I know for a lot of
07:06
companies, this can be really
07:08
tough. So, if we’re looking at
07:10
a product for pre emergent, um
07:12
traditionally, that is a
07:13
granular product with the
07:15
fertilizer baked into it. So,
07:16
let’s just say we’ve got a bag
07:17
of fertilizer that is running
07:19
us um $16 a bag now across the
07:22
US and Canada, it’s going to
07:23
vary but that’s probably
07:24
somewhere in the middle sixteen
07:25
to twenty. bucks depending on
07:28
where you’re at. So, the math
07:29
behind this is really, we want
07:31
to say what we have. $16
07:33
divided by five parts of a 1005
07:36
times a thousand is 500. So, if
07:38
I divide that by five, my cost
07:41
per thousand is $3.20. So now,
07:46
this has this equation has
07:48
changed quite a bit here. So
07:50
and and and Mike, sorry that
07:52
that would be if the bag covers
07:55
5000 square feet, right?
07:57
correct? Yes. My bad. So,
07:59
you’re correct 100%. So, that’s
08:01
Facebook Live is kind of
08:03
crazier. So, actually, your
08:03
cost per unit is, let’s say
08:05
this bag covers. What do you
08:07
want to say? Uh 10 thousand
08:07
square feet. Uh hey, well, we
08:09
don’t even have pre emergence
08:11
up here in Canada. so, you
08:12
probably have a clearer idea
08:14
than I do on that one. Yeah,
08:15
it’s a sixteen divided by uh
08:18
yeah, let’s call it 15 thousand
08:20
square feet. So, that is uh
08:23
that’s correct me if I’m wrong
08:24
then so this is uh It’s
08:27
probably going to be closer to
08:30
ten. So, it’ll be a dollar
08:34
sixty per thousand. It’s the
08:37
math that way there. So, that
08:39
would be
08:43
I’d chime in and help but it’s
08:44
like it’s a little tiny on my
08:46
screen but III trust your math.
08:48
don’t worry Facebook Live,
08:52
brother. Yeah. So, it’ll be a
08:53
bit about a dollar fourteen per
08:54
thousand. So, it’s five parts
08:55
of a thousand. So, five times.
08:57
1.4 1.414. Make sense. It’s
08:59
about $5.71 per thousand. So, I
09:00
appreciate you. Obviously, the
09:02
Facebook Live. You don’t think
09:02
about that occasionally but now
09:04
we’ve got an interesting
09:06
scenario here. So, this is the
09:07
issue that sometimes goes in
09:08
with a lot of companies when
09:09
they’re building out of
09:11
mattresses. So, based on that
09:14
uh .45 if that is the actual
09:16
time we’re going to be
09:17
budgeting, we’re actually
09:18
losing between product and
09:20
material this cost here. Now,
09:22
let me just double check the
09:24
math here because this is
09:26
prebuilt. So, we’re what we’re
09:27
going to do if you’re building
09:28
a math yourself, this actually
09:29
is kind of cool. We’re doing
09:29
this. We’re taking our budget
09:31
hours and tying it by our 46
09:32
bucks per man hour and we’re
09:35
adding our $5.71 So, math now
09:40
is actually correct. So, if
09:42
you’re looking at the math, you
09:43
are taking a break, even times
09:44
your budget or your cost per
09:46
hour. So, it’s going to give
09:47
your labor with overhead
09:48
recovery costs and then you’re
09:49
adding your cost
09:54
5000 square feet here.
09:57
and our cost per thousand is a
09:59
dollar for. So, we’ve got got
10:00
about a 41% net profit margin
10:01
and not have to labor overhead
10:03
of material. Um so, anywhere
10:06
between about forty to 45% that
10:08
what we’re seeing nationally is
10:09
probably about right right now
10:10
so that that that is falling in
10:12
the ballpark. Um any questions
10:13
or comments on that Dylan
10:14
before we kind of dive into the
10:16
overage Uh the only thing that
10:18
that kind of came to my mind
10:19
was I hear some people say
10:20
like, oh I know a competitor’s
10:23
charging $45 as their minimum
10:24
fee so that’s what I want to do
10:26
as well. Uh it’s just so
10:30
important to run this like when
10:31
you’re when you’re entering
10:32
your services, run it with your
10:34
actual numbers. You know, maybe
10:35
that competitor that you think
10:38
is low balling has no office,
10:39
has no overhead to to actually
10:40
recover. Um so they might be
10:42
able to actually price
10:43
themselves considerably lower
10:46
and still hit that that really
10:47
really uh profit margin but you
10:50
know, a lot of the companies
10:51
that we deal with they have
10:53
office staff and you know,
10:55
offices and stuff like that
10:56
that they actually need to
10:58
recoup in a lot of these costs.
10:59
So, it’s just so important to
11:00
use your actual real numbers.
11:02
Yeah and the other thing that A
11:03
lot of people do we talk about
11:05
is a is a benchmark is the cost
11:07
or the charge. Basically, the
11:08
charge per thousand. So, if you
11:11
took the Forty-five and divided
11:12
by five parts um and you did
11:14
the math, you’re charged per
11:15
thousand is actually $9. This
11:17
is going to get interesting as
11:18
we get into a larger acreage
11:20
break point of um cost break
11:23
but I think this is something a
11:24
lot of people don’t necessarily
11:25
look at it. You nailed it on
11:26
the head, Dylan. Hey, well, my
11:28
competitors charging 45 bucks
11:29
in the first 5000 so I gotta do
11:31
the same thing but we’re really
11:32
kind of want to look at it is
11:33
we at and it’s an internal
11:34
benchmark are cost per thousand
11:35
and as we go to our price
11:37
breaks, what can we afford and
11:39
how does that as it gets more
11:41
productive? Um how do we, where
11:43
does that come out as a price
11:44
per thousand? So, in a basic
11:46
scenario, I’m going to say
11:47
using a push spreader here, we
11:48
will keep the production the
11:49
same at about .047 .05 around
11:53
man hours per per thousand
11:55
every thousand over 5000. My
11:57
base price is let’s say we’re
11:59
going $6.50 per thousand I go
12:02
in and round that up to .00.
12:05
.05. My cost now is going in.
12:07
Same kind of equation. I’ll do
12:08
this live here. Here’s your .05
12:10
man hours time, your $46 break,
12:13
even what it cost you before
12:14
you make a profit. Plus, the
12:16
cost of that bag uh per
12:20
thousand square feet was $1.14.
12:23
So, you’re charging 650 and you
12:26
are costing you overhead and
12:28
materials $3.44. So, if you
12:31
want in and said, hey, I’ve got
12:34
minus my 344 and I divide that
12:37
out here at about a 47% net
12:41
margin. So, it’s actually based
12:42
on that math right now. It’s
12:44
actually a little bit more
12:45
profitable. So, if you’re
12:46
trying to become down and be a
12:48
little more um competitive, you
12:51
can actually drop that down but
12:52
the one thing you’re going to
12:53
find here is you probably get
12:55
on the $5.75. So, you’re pretty
12:58
close to the rounding up. So,
12:59
you’re at 41% Margin on top,
13:01
your base price but you
13:02
remember we added some extra
13:03
time for drive time. We added
13:05
some time for the the filling
13:06
and kind of getting the
13:07
equipment ready Now if we want
13:08
for every over the five at 575
13:12
per thousand. That’s still
13:14
going to get us about a 40%
13:16
margin. So, that’s still really
13:17
in the ballpark. maybe a little
13:18
bit on the lower end but those
13:19
are the numbers you want to
13:20
start looking at because if you
13:21
just go into a product like
13:22
service, autopilot here and go
13:24
into a rate mattresses, it
13:25
doesn’t show you um your profit
13:28
profit percentage. So, if you
13:29
were to take that uh equation
13:32
here, these top five lines,
13:33
I’ll do it a little bit later
13:34
after you go to the price break
13:35
in the bottom five cells now
13:39
load into these five cells up
13:43
top and the bottom and we would
13:44
go in and grab turf. Square
13:46
footage is our variable and
13:48
we’d go in and create our
13:50
calculations, quantity reaps
13:51
visits. So, does that make
13:53
sense though before I actually
13:54
dive in and show a production
13:55
rate based estimating system
13:56
and I’m going to try to show an
13:58
example between the push
13:58
spreader hose and reel and um
14:01
through a Facebook post,
14:01
somebody wanted to actually
14:03
have like a ride on the X mark
14:04
Toro or production. Yeah, that
14:06
looks good. The one thing about
14:07
the the profit and actually
14:09
showing that by taking a couple
14:11
extra seconds and doing the
14:12
blueprint before just sticking
14:14
it into a CRM like service
14:16
autopilot is typically on these
14:17
larger price mattresses that
14:18
I’ve seen built out when we
14:20
actually transfer it out of
14:22
service out about into this
14:23
blueprint. You see that profit
14:25
margin percentage just shrink
14:27
as you get into these larger
14:28
properties. Absolutely dwindles
14:30
are sometimes are actually
14:31
losing money We can be an eye
14:34
opener and they’re like, well,
14:35
I can’t be right, Mike and and
14:36
Dylan. I’m like, well, it is
14:36
actually, the numbers don’t
14:37
lie. Obviously, we go through
14:39
and we update the formulas
14:40
based on what we’re doing um
14:42
because you saw it was a little
14:44
misinformed that I actually
14:45
updated it based on our product
14:46
the way we put it together. Um
14:48
the other I think for a pro tip
14:50
would be as well, it’s like,
14:50
let’s just say you’re doing, I
14:52
PM integrated pest management.
14:53
I’m not sure if you have that a
14:54
can of Dillon but uh I PM is a
14:56
big thing in the states and uh
14:58
with I PM uh you’re only spot
15:00
spraying post emergent
15:02
pesticides on the the areas
15:03
that need to be treated. So, if
15:05
you’re looking at your cost for
15:06
the emergent chemical. I
15:09
suggest kind of looking at it
15:10
and say, okay, based on a
15:11
thousand square feet, what
15:13
percentage on average in my
15:15
spring, is it 20%? Is it 50%?
15:16
And then we can kind of back
15:17
that math in there. So, I think
15:19
that’s the other big thing when
15:20
you go to put this into a
15:21
software program, most software
15:23
programs don’t have the
15:25
ability. Um almost none that
15:27
I’m aware of. They do have
15:27
chemical tracking but they
15:29
don’t really have um the actual
15:31
job costing materials per
15:32
round. So that’s how we want to
15:33
look at it before we get it
15:34
into the system. Um so now that
15:37
you’re looking at is going
15:39
well. if I’m in in something
15:39
like service, autopilot,
15:40
there’s no room for price
15:42
breaks. So, we’re going to show
15:43
you how to add these lines in
15:44
here if I hit this button but
15:45
how do we actually create this
15:47
and this is applicable to any
15:48
software Um in my opinion or no
15:51
software. If you’re running a
15:52
pen and paper Excel sheets, uh
15:53
the early days of accounting,
15:54
this is how we did it. So,
15:56
yeah, I’m not just guessing
15:57
about it either, right? Just
15:59
saying. Oh, I think maybe we
16:00
should drop it by a buck after
16:01
10 thousand square feet. Well,
16:02
where did that number actually
16:03
come from? Like it’s a fine
16:04
line between you want to win as
16:06
many as you possibly can but
16:08
you also need to be profitable.
16:10
It’s all warm and fuzzy inside
16:12
to have that big property on
16:13
like the cornerstone in in your
16:15
market but if you’re losing
16:17
money every time you go and do
16:18
do that property, even with the
16:20
visibility, it’s it’s just not
16:21
worth it, right? So, what I did
16:23
is I took the $75 charge per
16:24
hour and I spent per hour and
16:26
our cost per 5000 was it was
16:28
the base price and we had our
16:29
cost per unit a dollar fourteen
16:30
and we’re going to do this for
16:31
every round. Probably not live
16:33
but the idea is we want a job
16:34
costs and build this offer
16:35
right around because what
16:36
you’re going to find is certain
16:37
rounds are going to be more
16:39
profitable than other rounds.
16:40
So, maybe before you actually
16:42
break it down per round, you
16:43
may average all your chemical
16:44
cost across five or six rounds
16:46
together and use that up here
16:49
to say on average, what is my
16:51
average profit margin across
16:53
all the rounds. Now,
16:54
traditionally last round at
16:55
least in the northeast is
16:56
probably the most profitable
16:58
for sure. So, that’s another
16:59
thing we want to look at. Uh so
17:00
we’ve got our uh pre with fruit
17:05
is program. Same thing. Custom
17:07
field is going to be our church
17:09
square footage um and let’s
17:10
take a look at it. So, your
17:12
full transparency, you push
17:13
spreader hose and reel are
17:15
going to be the same. You’re
17:16
looking at about .5 to .047 Ish
17:19
Man hours as an industry
17:20
average per thousand. Now,
17:22
you’re right on machines. most
17:24
right on machines are going to
17:25
produce. I would say ballpark
17:26
uh if if it’s a veteran rider,
17:29
you’re you’re in about a minute
17:30
per thousand um and you can be
17:32
doing granule and liquid at the
17:33
same time. Now, the first three
17:34
to four square feet are
17:37
probably not going to be as
17:38
productive because you’re
17:39
slowing it down. You’re hitting
17:40
the edges. You’re not trying to
17:41
drift into flowerbeds and kill
17:43
the plants, things like that.
17:44
So, let’s just say the
17:46
production for the first 5000
17:48
is consistent then, uh we may
17:49
dial it back. So, same exact
17:52
thing. One to 5000 square feet
17:56
is our base price of Forty-five
17:57
bucks that Dylan gave us uh we
18:00
go back, let’s just say that
18:01
first that first group is .45
18:05
I’m going to probably say it’s
18:08
going to be closer to . .05 is
18:10
my guess. Um times 5000 square
18:13
feet. It’s .25 and then maybe
18:16
another. I had another .01 Man
18:18
hours to bring that up to .35
18:20
for loading and unloading the
18:21
machine. If we gotta gas it up,
18:23
we’ve gotta put some liquid or
18:24
or product in there. Um so that
18:27
would probably be my assumption
18:29
here then I would I’m going to
18:30
update this formula. so equals
18:32
are budgeted
18:39
times our break-even for an
18:41
hour. So, as you can see, our
18:42
labor and overhead cost a 1610.
18:44
Then, I want to go in and add
18:47
five times. So, it’s five parts
18:49
of a thousand times. Um our pre
18:52
unit cost or if you’ve already
18:54
built it out in your matrix as
18:55
you take that 571 and just plug
18:58
that in there. So, we’ve got
19:02
our number here of our break in
19:18
So, we’ve got our profit here
19:19
of 2319 and a profit percentage
19:21
of 51.5 51.52. So, obviously,
19:24
it becomes a little more
19:25
profitable when when we’re
19:26
starting to use right on
19:27
machine and we’re being ultra
19:29
conservative here. If you’re
19:29
doing this yourself, you may
19:30
want to lower that budget of
19:32
time but I want to use that as
19:33
an example. Um so, does that
19:34
make sense at that point doing
19:35
any thoughts before we do that?
19:37
Yeah, no that that all looks
19:39
good and the industry averages
19:41
that we’re using here are just
19:42
like averages, right Of course.
19:43
So, um the most concrete way to
19:45
do this is is pulse my actual
19:49
examples from like an average
19:50
applicator that you have maybe
19:51
not yourself as the owner going
19:52
out there and doing stuff and
19:54
zooming through the route but
19:55
just uh someone that’s easily
19:58
applicable. Yes, a good point
20:00
to you probably don’t want to
20:01
base on the owner because we’re
20:02
we’re probably going to go a
20:03
little bit bit faster. Um so,
20:04
what I’m doing here is I’m just
20:05
adding some math uh F five here
20:07
is the one to 5000. So, I’m
20:09
always going to go up one. So,
20:11
we’ve got some gaps and
20:12
differentiation and I’m adding
20:13
an extra thousand. So, if we
20:15
grab these formulas and drag
20:16
them down Um not really doing a
20:19
class on Excel or Google sheets
20:20
here but uh I’m going to get
20:21
you kind of close here. So,
20:22
we’re going to go all the out
20:23
to about 42 to 43 thousand
20:24
basically an acre pretty close,
20:26
Okay. And we’re measuring this
20:28
online and we’re going up to
20:29
the nearest thousand square
20:30
feet. So, when we’re measuring
20:31
this online, don’t worry that
20:33
you’ve gotta put so many dots
20:34
in it. It’s going to come out
20:35
in the wash if if you’re within
20:37
five to 600 square feet, you’re
20:38
going to be in that range
20:39
anyway. So that’s going to be
20:40
kind of a tip when we go to
20:41
measure this. So now we’ve got
20:43
maybe a charge per thousand
20:45
here. So, uh if you remember We
20:48
were at our charge per thousand
20:51
was the 45 divided by five
20:54
parts of a thousand. We’re at
20:56
$9 per thousand. So, we
20:59
potentially could be drawn to
20:59
that formula but maybe we’re
21:01
going to get down here and now
21:03
based on the first example,
21:05
we’re at 575 per thousand
21:08
that’s still around 40% profit
21:10
margin. So maybe the next one
21:12
will go in. We’re going to go
21:13
drop that down to 575 to be a
21:15
little more competitive and
21:16
what we’re going to do make
21:18
this Forty-five plus at 575. Um
21:22
if you are taking an Excel
21:24
class here or Google sheets
21:26
especially Google sheets, the
21:27
dollar sign between the end
21:29
here, The letter is going hold
21:31
that equation. So, uh I’m going
21:33
to drive that down to what do
21:36
you what do you think Dylan uh
21:38
about about 10 thousand? Yeah,
21:39
I think after 10 thousand,
21:40
you’re probably going to need
21:41
to lower it a little bit.
21:43
Alright so and and you
21:44
definitely want to base on your
21:46
numbers. We’re just kind of
21:47
doing this off the cuff and
21:49
each market is different for
21:50
sure. Uh but the one thing We
21:52
didn’t. we didn’t look at Dylan
21:53
is what is the production rate?
21:54
So, we said, you know, the
21:55
first 5000 is going to be
21:57
around .05. I’m I’m guessing
21:59
that we’re going to go down to
22:01
about a minute per thousand for
22:02
using a ride on machine. So,
22:05
our production now is going to
22:06
be a little bit different. So,
22:07
I’m going to take that bass
22:08
production and I’m just going
22:09
to go in for every thousand.
22:10
I’m adding .00 .02 but
22:13
basically 1 Minute divided by
22:14
sixty is .02 Man hours so
22:16
that’s kind of what we’re
22:18
driving. Once again, we’re
22:18
going to want to go in and do a
22:20
little uh sheet math or magic
22:23
and we’re going to drag that
22:25
down. okay? So, we’ve got that
22:28
in there. So, now, you can see
22:29
our production is it is going
22:30
up 1 minute. uh per thousand.
22:32
Now, our break-even is going to
22:33
be a little bit different. So,
22:34
I’m going to say, hey, and
22:38
actually we may
22:43
So, we’re going to take our .37
22:45
which is our H and we’re going
22:48
to take that by our K. Right
22:49
here is our expense per hour.
22:52
That’s K three and I’m going to
22:56
take our F six which is our
22:58
square footage. I’m going to
22:59
want to divide that by a
23:01
thousand there because I want
23:02
to know how many parts of a
23:02
thousand are in there and then,
23:04
I’m going to multiply it by my
23:07
MR 114 thousand. So, that’s
23:11
going to be Mthree
23:25
and uh
23:30
Alright, so let’s double check
23:31
our math here. Eight, six,
23:37
times are Forty-six. This is
23:41
our labor and overhead recovery
23:43
and remember, it’s like sixteen
23:44
oh one. So, that would be
23:45
correct. there and I should
23:47
learn by now using the prebuilt
23:48
templates here. So, we’re going
23:49
to go in and divide this by a
23:52
thousand
23:58
times. cost per unit is 114 per
24:01
thousand.
24:07
Here we go. So, there we go.
24:09
We’ve got the the product. So,
24:09
our product market actually
24:11
goes up a little bit because
24:13
we’re we’re catching that gap
24:14
and that was about the same
24:15
percentage as we saw on the
24:16
original one here. So, that
24:19
doesn’t surprise me. So, we’re
24:20
going to go in and grab that
24:21
profit and profit percentage
24:22
and our Break-even drive that
24:25
down the sheet. So, what’s the
24:27
what’s the price coming out to
24:29
now like they were charging the
24:29
customer at around 10 thousand
24:31
square feet. Uh we’re about
24:34
7375. Okay, I think that seems
24:36
pretty reasonable still. okay
24:41
Maybe we’re going to go in here
24:42
um in this cell here and and
24:43
the cool thing is once it’s
24:44
built, we can actually play the
24:45
math game and say, hey, how how
24:46
lower or how high we can get.
24:47
So, once we build this out,
24:48
then we can actually play with
24:50
these great cells um but let’s
24:51
just say we went down and we
24:53
went down a dollar per thousand
24:54
probably aren’t going to go
24:55
that low but let’s just let’s
24:57
play the game here to see What
25:00
happens here?
25:06
So, we’ll take that up to 20
25:09
thousand. 20 thousand. Are you
25:10
saying we’re charging an
25:12
additional dollar per thousand
25:13
square feet to the customer? Uh
25:15
we’re charging a dollar less
25:17
per thousand. Okay. So, instead
25:19
of the five something. Yeah. So
25:21
we’re going 575 per thousand
25:22
now, we’re charging 475 per
25:24
thousand. Okay. Make sense.
25:31
and we’ve got our profit. We’ve
25:34
got our profit percentage. So,
25:36
maybe here fictitious. Let’s
25:39
make it a pretty heavy drop.
25:40
drop on let’s say $3 per
25:42
thousand
26:05
We’ll double check the math and
26:06
the formulas. Uh once we’re
26:07
done here too just because it
26:09
is easy to mistresses. Yeah,
26:14
it’s interesting because I got
26:15
a certain point. you’re not
26:16
going to get any quicker. Uh I
26:18
don’t know if you’ve reached
26:19
that point yet but at a certain
26:22
like that and maybe we’ve
26:25
already passed him but like
26:26
that minute per thousand square
26:27
feet it doesn’t it doesn’t
26:31
matter if you’re in an open
26:32
field or or whatever it is you
26:35
just you literally can’t go any
26:36
faster than that. Nope. Yeah.
26:37
So It literally just stays
26:38
where it’s at. I’m going to try
26:40
to make these price breaks come
26:42
across here. as we go. So you
26:46
can kind of see it comes up a
26:48
little bit. Uh this may not be
26:50
actual market pricing but as
26:51
you go down now, your profit
26:53
margins are starting to kind of
26:54
dwindle. So, traditionally,
26:56
when we get most folks on a
26:57
call um as we get into that
26:59
3035 thousand, their profits
27:01
are just like absolutely
27:02
shrinking. So, we came in
27:03
pretty heavy Um here up top but
27:07
if we just change this to five
27:10
bucks and 450 see what starts
27:14
to happen here. Things just
27:16
start shifting a little bit.
27:21
And where do you want to go
27:22
here, Dylan? On price per
27:25
thousand. Uh so, so what square
27:29
footage amount are we at right
27:30
now And what is the I’m at 3000
27:33
or 30 thousand square feet.
27:35
Okay. So, I’m going to be going
27:39
and do you want to go to keep
27:41
it at three? Do you want to go
27:42
lower? Just to kind of see what
27:43
happens. I mean, I don’t
27:43
suggest going any lower than
27:45
where we’re at. Probably not a
27:46
lower like $5 per thousand but
27:48
these are obviously very
27:50
fictitious numbers but I want
27:50
to show people how to actually
27:52
build this out. Yeah. Well,
27:54
what’s so what’s the uh break
27:57
even uh or sorry, what what was
28:00
the chemical cost and the uh uh
28:03
a dollar a dollar fourteen. I
28:04
mean, I’m I’m usually seen in
28:05
between 225 and 250 on average
28:08
so that’s probably why the
28:08
numbers are looking a little
28:09
funky. Okay. Um but we can we
28:11
can manipulate that up here in
28:12
a minute just so we can
28:13
actually show people what that
28:14
looks like. Yeah, I would think
28:16
the price breaks are going to
28:17
get less and less. Um you know
28:20
what once we you know, even
28:22
though we’re talking about a
28:22
larger property here like at a
28:24
certain point you don’t want to
28:25
completely erode your margin.
28:26
Yeah, you’re going to go
28:27
negative basically. So, let me
28:31
pull this down here.
28:45
is going to go in and we still
28:47
got still got some decent
28:49
margins here. So, I mean, I
28:50
don’t know. Let’s just double
28:52
check to make sure all these
28:53
formulas rolled down and what
28:55
is the percentage that you’re
28:56
seeing even on like the the
28:58
larger property Uh 73%. Oh wow.
29:03
Okay. Yeah. a traditional.
29:04
we’ll see it around thirty to
29:07
35% ballpark but obviously
29:09
these are these are very
29:10
fictitious numbers So that’s
29:11
kind of the issue because we’re
29:13
not dealing with actual numbers
29:16
that someone would give us.
29:18
Yeah. the out the methodology
29:20
is exactly how you would do it.
29:22
Yeah. Even if like you had no
29:24
idea what you should be
29:25
charging. Um you know, it is
29:26
good to go on the higher end as
29:28
well and hey, if you start
29:30
sending out quotes at this rate
29:31
and 75% of your quotes are
29:33
getting accepted. Well, maybe
29:34
you don’t need to adjust them
29:36
down but I do hear from some
29:38
people like my my my quotes are
29:41
getting accepted at like a ten
29:42
to 20% rate. Well, I would
29:45
recommend really making sure
29:46
you know what your break even
29:47
is and relook at some of your
29:50
services and say, am I too
29:51
highly as well. Yes. So, I
29:54
bumped that up to $50 just to
29:56
kind of see what happens here
29:57
um but that it’s going to be a
30:00
pretty realistic um production
30:02
right now. You may be up to 78
30:03
thousand before you really
30:04
catch the efficiency but like
30:05
you said, you’re not really
30:06
going to get any faster. I
30:07
suggest you put some breaks in
30:08
probably around ten 1520 uh
30:13
thirty and then somewhere
30:14
around an acre. So, if we’re at
30:16
$3 per thousand fictitious here
30:20
every thousand over the 43
30:22
thousand we may be charging
30:26
$2.75. But I mean, we’re really
30:26
in a real world scenario. We’re
30:28
probably not going to go any
30:29
less than $5 per thousand. um
30:31
with actual real cost and
30:33
overhead of materials is what
30:36
I’m seeing traditionally. So,
30:38
you’re and then you’d be going
30:39
in and the line will be your
30:41
budget hours times. your break
30:45
even plus your cost per
30:48
thousand
30:52
And this this can be
30:55
extrapolate as well. if you
30:56
only do twenty acre complexes,
30:58
well, maybe you do have an
31:00
extra price break in there like
31:02
five or ten acres uh but you
31:05
know, obviously that’s a little
31:06
bit outside of the norm. So,
31:07
we’re not going to build that
31:08
out here today but if you do
31:10
those massive complexes uh
31:12
whether it’s weed control or
31:13
lawn mowing or whatever it is,
31:15
right? Just know that this this
31:16
can be extrapolate to however
31:19
many acres you’d like. Yeah and
31:21
it’s interesting, Dylan. So
31:22
once we got to the overage here
31:24
um with that formula. We’re
31:26
actually at $3.33 cost
31:31
per
31:31
thousand. and we’d only be
31:35
fictitious. charging 275. So,
31:36
you’re actually losing money
31:38
but we’re catching some of the
31:40
extra higher profits up here.
31:42
Is it kind of scroll down? So,
31:43
the main things you want to
31:45
look at is the price, the
31:46
budgeted time, and the break
31:48
even cost and that’s going to
31:49
be your time. Time to break
31:51
even. So, the scenario here,
31:53
your budgeted time, you got
31:56
that 1750 now based to fifteen
31:58
an hour and then we want to add
32:00
the 1250 for the first 5000
32:02
square feet that was this
32:04
Mthree. The 250 per thousand is
32:07
our cost. So, it’s 1250 for the
32:08
first thousand and then our
32:12
break-even here moving forward
32:14
is going to be just so it kind
32:16
of reiterate what this is is
32:17
you’ve got your your budgeted
32:20
time, time to break even. So
32:22
once again, that’s seventeen
32:24
went up to eighteen. So that’s
32:25
our labor and overhead and
32:26
labor burden recovery and then
32:28
we would go in and just hit
32:30
plus and you’d want to take the
32:35
total square footage here.
32:37
6000. 6000 divided by a
32:40
thousand because we’re always
32:41
dealing with how many parts of
32:42
thousand time our cost per
32:44
thousand there and Mike, did I
32:47
hear you say that you
32:48
fictitious increased the the
32:51
break even on like the the very
32:52
top cell to to fifty or did I
32:55
miss that correct? I did. Yeah
32:56
and I just want to make sure
32:58
there’s our cell is not covered
33:01
out. so that is
33:06
and three. So, that is I might
33:07
have forgot one of our things
33:08
being on live. So, let me
33:09
update this because that that
33:09
makes you the numbers that to
33:11
Thirty-three to nineteen looks
33:12
a little suspicious that looks.
33:14
There we go. So, full
33:17
transparency. we’ve done
33:17
hundreds of these now that
33:19
looks like it should. Okay. I
33:21
thought it looked a little
33:22
funny. So now it’s a really
33:24
realistic numbers that’s that
33:26
break even So your percentage
33:28
now is going from about 33% all
33:30
the way down to 12% based on
33:32
these numbers. So, and I don’t
33:35
think it’s worth glossing over
33:37
this point. I mean, we could
33:38
probably talk for hours just on
33:39
that point alone but these like
33:42
that that Forty-three uh as a
33:45
break, even an all-in break
33:46
even including your overhead
33:47
recovery jumping to fifty like
33:49
it’s it’s not unheard of with
33:51
all the labor shortages and and
33:53
stuff that’s been going on with
33:54
COVID lately Um these types of
33:57
break even numbers are going to
33:59
have. I’m at least predicting
34:00
once we see some year end
34:01
numbers. Um some pretty
34:04
increases like that. So, this
34:05
is like the the major benefit
34:07
that some people don’t realize
34:09
about taking the extra time and
34:10
building it out in a template
34:11
like this rather than just
34:12
sticking it right into your CRM
34:14
and kind of forgetting about it
34:15
is when you do have those major
34:18
um you know, company expense
34:21
changes such as labor. Uh the
34:23
cost of labor has gone up
34:23
dramatically or if you’re a
34:25
design build company with the
34:26
cost of wood has absolutely
34:28
ballooned Well, you need to be
34:31
able to to enter in those cost
34:34
increases and say, well, how
34:34
does this affect my origins.
34:38
Maybe we’re not okay with it
34:38
dropping from a 35 or 50%
34:41
margin down to twelve. You’re
34:42
most likely not. So, you gotta
34:43
raise your prices. Yeah, good
34:45
point to it too. So, I mean, we
34:46
do hundreds of these So you
34:48
gotta double check your
34:48
formulas as well as you put
34:50
this in. So like it it just
34:51
didn’t look right here. So,
34:53
what we did is when you’re
34:54
pulling that number here,
34:55
you’ve gotta make sure those
34:56
dollar signs are holding the
34:58
cell here for the material cost
35:00
and the expense cost.
35:01
Otherwise, when you pull it
35:02
pulls the mat down so it’s off
35:03
a number that wasn’t there uh
35:04
but now We’ve kind of firm this
35:06
up. We’re making $9. We’re
35:08
charging $9 per thousand on the
35:09
base price which we were in the
35:12
earlier service here but now,
35:15
what we’ve done and I just
35:17
obviously made this on the fly
35:18
um but we’ve recharged it If
35:20
we’re charging 575 per thousand
35:23
um here it goes up and our
35:27
budgeted time is going up a
35:28
minute per thousand with the
35:29
machine So we kept the
35:31
production basically the same
35:32
as Dylan said but as I drop my
35:34
price of 575 per thousand to
35:36
550 to 535 to 520, and then
35:41
everything over an acre.
35:42
Approximately $5 per thousand.
35:44
You can see that margin really
35:45
starts. It’ll weigh a little
35:47
bit in and out but really it’s
35:48
going all the way from that
35:52
like 3536 area all the way down
35:54
to uh averages out again around
35:57
Thirty-five and then the
35:58
overdue beyond 33%. So, as you
36:01
start to manipulate these
36:03
prices and the production rate
36:05
based on historical numbers,
36:06
you can really see where you’re
36:07
at. Um so, I think this is
36:09
really a great way of looking
36:10
at it and my assumption really
36:13
is based on this if I was to go
36:15
in and do an analysis that 33%
36:17
is really probably too low for
36:18
a base price. So you really
36:21
probably need to be closer to
36:22
let’s see what it looks like.
36:23
Fifty Yeah, I mean, this is
36:25
going to be Fifty-five to
36:26
Fifty-seven. In my opinion.
36:27
that’s going to get you in that
36:29
proper percentage and get you
36:32
really where you need to be. Um
36:33
I mean that five bucks per
36:35
thousand may actually need to
36:36
come up to more closer to that
36:38
that 5.25 and if you got
36:39
multiple acres that was
36:40
probably right but once this is
36:42
built out, I think this is
36:43
really in my opinion, it’s
36:46
invaluable. You can go in and
36:46
say, hey, I’m at Forty-five
36:48
here
36:54
Wait a minute. We’re we’re
36:55
we’re well below that industry
36:56
average but if I bring this up
36:59
to 55, now we’re we’re driving
37:02
pretty good here. Mm hmm. That
37:04
looks to where I would want to
37:05
be. So, I would actually say if
37:06
this is my company, I would say
37:08
that base price is going to be
37:10
probably close to 57 maybe even
37:10
six, maybe even sixty. Yeah.
37:12
And I see a lot of people steer
37:15
away from like small to
37:17
medium-sized commercial because
37:18
they’re like we we want to
37:18
focus just on residential. The
37:20
margins aren’t there and
37:21
commercial in my area. No one,
37:22
no one charges enough. Well,
37:23
you don’t need to replicate
37:25
that. That model that you think
37:26
is’t charging enough, Right.
37:27
You can still do this small to
37:30
medium-sized commercial
37:31
properties that don’t require
37:32
if you don’t have a ride on it,
37:33
you don’t need to go buy a ride
37:35
on. You just need to be making
37:36
sure that you’re charging
37:37
appropriately for it and
37:39
Wouldn’t you take a commercial
37:41
that’s right next to a
37:42
residential property, right? If
37:43
you’re making the same margin,
37:44
right? And I think this is
37:46
where a lot of our clients are
37:47
seeing and this is where we saw
37:49
saw the sweet spot is, you
37:50
know, somewhere between 5000
37:52
5000, maybe 10 thousand max,
37:54
that ceiling, that’s, I mean,
37:55
that really is a sweet spot.
37:57
Yes. Um and you’re catching a
37:58
lot of extra budgeted time here
38:00
at that .35. So, if you got
38:02
route density that actually
38:03
could probably be closer to
38:06
that .25 that we had in there
38:07
and now you’re really some
38:09
serious margins. So, uh the
38:11
money is really if you can
38:13
build your density isn’t a
38:14
smaller, tight-knit residential
38:15
but if you’re going into larger
38:17
properties, price breaks, this
38:18
is how we’re going to break it
38:19
out. Um this is obviously an
38:20
example of a ride on machine
38:21
but we can go in and literally
38:24
if that productions at .05 the
38:26
whole time and you’re you’re
38:27
playing the math game. it’s
38:28
saying, hey, is it is it time
38:31
to actually go out and buy uh a
38:33
ride on machine and in full
38:35
transparency, I’m going to
38:36
guess that this production
38:37
actually is going to go down
38:38
the bigger the property gets to
38:39
you by the .06 because the
38:41
guy’s back um but if you had it
38:45
like this, wait a minute, we
38:47
can’t really afford to use a
38:48
push spreader now. we’re losing
38:50
money with that price break.
38:52
So, this is a great tool before
38:53
you build it in your software
38:55
to really play the game and
38:56
say, okay, if I’m riding a
38:58
machine or if I’m pushing or
39:00
using hose reel, where am I
39:02
really at? And then just
39:03
updating this as we go is
39:05
literally just showing you not
39:07
emotionally where you’re at.
39:09
So, but the example it was that
39:10
is the ride on machine and this
39:13
number is probably a little
39:14
heavy for the first 5002 so
39:15
that probably could come down
39:16
but if you’re putting in a
39:17
little drive time and a little
39:20
operator loading machine. I
39:21
think that’s a safe bet and
39:23
then to test this, you may want
39:25
to go in and you may not be at
39:28
uh per unit as an average if
39:31
you want to cross five or six
39:33
rounds, maybe you’re really
39:34
averaging out at $2.70 or maybe
39:38
even cheaper. Now, we can see
39:40
what it looks like as an
39:41
average across all around and
39:43
the only way to build out each
39:44
round separately but what you
39:45
would do is take this whole
39:46
entire matrix is once you’ve
39:48
tested out, you know, you like
39:49
it and you go into a product
39:50
like autopilot and literally
39:52
just go in and copy and paste
39:56
the cells all the way across
39:59
here. Open it up and then the
40:01
bottom line, every Os there.
40:03
So, yeah, I don’t know if that
40:05
was helpful. Kind of confusing.
40:06
I apologize. I had that
40:07
formula. I didn’t drag it all
40:08
the way down but that I mean
40:09
that’s that’s a normal error
40:10
that anybody can do Um and
40:12
obviously that’s why we put a
40:13
second set of eyes on it and
40:14
look at it to make sure all
40:15
those formulas are driving
40:16
before we ever get into the
40:17
software because we put it in
40:18
the software. You don’t know
40:19
that you may not have dragged
40:20
that formula all the way down.
40:21
Um so you got a you got a
40:22
blooper before you implement, I
40:24
would, in my opinion, at least.
40:26
Yeah. And I think that mistake
40:27
uh and you catching it is
40:29
probably pretty helpful because
40:30
I know a lot of people watch
40:31
these videos and you know,
40:33
maybe they’ve tried to
40:34
replicate this spreadsheet in
40:35
some way, shape or form and
40:36
Yeah, if you’re putting in bad
40:37
data, um you’re you’re going to
40:39
be making some bad decisions
40:40
off of that. The other thing I
40:42
just wanted to mention quickly
40:43
is it might seem like a lot of
40:45
work to do this but in my
40:46
opinion, totally worthwhile.
40:47
You know, you you need to to
40:49
build out a proper matrix
40:50
that’s going to work on small,
40:52
medium, and large properties
40:53
but important thing and maybe
40:56
we can talk about this next
40:57
Wednesday. um is the reporting,
40:59
right? These are time based
41:02
estimates, right? We’re hoping
41:04
that this 10 thousand square
41:05
foot property takes this amount
41:06
of time. Now, in in practice or
41:10
not in theory in practice. Um
41:13
if your employees are actually
41:14
taking Twenty-five 25% more
41:16
time than what what we’re
41:17
estimating here. Well, that’s a
41:19
big problem that 3040 percent
41:22
margin that you had is all of a
41:23
sudden completely eroded Yes.
41:25
Right. So, actually need to be
41:26
comparing this uh and you know,
41:28
if you’ve already built up some
41:29
some data in your system,
41:30
that’s even better because
41:31
you’ll have some legitimate
41:32
comparisons to say, okay, based
41:34
on my price matrix, are these
41:38
margins actually going to be
41:38
real at the end of the year.
41:39
So, you don’t want to be
41:40
surprised at the end of the
41:41
year and say, wow, we only made
41:42
or we lost 500 bucks instead of
41:45
um you know projecting uh a 30%
41:47
margin. Yeah, I could agree
41:49
with you more and it looks like
41:50
a lot of work but I mean I
41:51
think literally once a year you
41:52
you gotta do it and your
41:54
product cost are going to
41:56
change. um especially the crazy
41:59
times we’re in now. They’re
41:59
going to change. You may have
42:01
to do this twice a year. if
42:02
you’re distributor. Uh Uh if
42:04
you’re not prey, your materials
42:05
like if it’s a drastic change
42:07
uh job costing going into the
42:10
production based estimating
42:11
thing is it’s just it’s an
42:13
essential thing that we’ve
42:13
gotta do. Um so, we’re really
42:15
breaking out how to do that
42:17
yourself here if you need some
42:18
help, obviously reach out to us
42:19
but the whole idea is just the
42:21
mindset of abundance. We wanted
42:22
to show everybody how to do
42:23
this because in the early
42:23
years, if I had on this. You
42:25
know, there’ll be a lot more
42:26
money in the bank for the first
42:27
year or two in business until
42:28
you figure it out but um it’s
42:30
tough when you go into a
42:31
software and it doesn’t tell
42:32
you what your projected profit
42:33
is and then Dylan, you know
42:35
that the estimating and the
42:36
production is only as good as
42:38
it is. if it’s not being
42:40
actually replicated in the
42:41
field. So, we actually need to
42:42
go out and track a budget of
42:44
time and hold those folks
42:45
accountable with accountability
42:46
and the other thing we didn’t
42:47
really talk about is what about
42:50
callbacks. Those can be a bear
42:52
because if our product mix is
42:55
not correct or the applicator
42:56
is not a standardized
42:58
procedure. Um the cost of going
43:02
back could be astronomical and
43:03
it could completely erode this
43:05
to begin with. So, we gotta
43:06
make sure that we’re actually
43:08
treating with the right
43:08
chemicals or organics. We’re
43:10
have a process and if we do
43:12
have a callback, we use
43:14
something that I like to call
43:14
the waiting list. So, we go in
43:16
and put all the callbacks on a
43:18
waiting list. We geographically
43:20
be responsive like it’s maybe
43:22
not the next day but the next 2
43:24
days or 3 days but we’re we’re
43:26
systematically routing the
43:27
callbacks when the technicians
43:28
are already in that area. So,
43:29
we’re not driving all the way
43:31
across the city for one call
43:32
back. So, we need to be
43:33
responsive but we need to be
43:35
responsive enough to understand
43:37
that it’s going to erode our
43:37
profit margins just for a
43:39
callback as well. Yeah, yeah. I
43:41
had uh a person I was dealing
43:43
with as well where they had
43:44
some repeat offenders, not
43:45
really callbacks per say but
43:47
when they actually went to the
43:49
property, the gate was locked
43:50
and they didn’t want to just
43:52
spray the front lawn. Um so
43:54
they they just kind of tried to
43:56
call the customer weren’t able
43:57
to get a hold of them and then
43:58
they had to go back and and
43:59
reschedule an app that was you
44:01
know they were actually there
44:01
to go and do it and that’s
44:02
that’s where automations comes
44:04
into play. Uh automation we Be
44:05
there. Been there or pre and
44:07
post notification. dispatch but
44:09
that’s the client and I know a
44:10
lot of people that work watch
44:12
work on it. Wednesdays are lawn
44:13
care folks but we work with
44:14
some home cleaning individuals
44:16
as well um and even when Tina
44:17
comes to get my house, I get a
44:18
text message and uh she lets me
44:20
know when we’re coming but they
44:21
have AA lockout policy
44:23
basically. Um so if they can’t
44:25
get into the house to clean,
44:25
they actually charge me fifty
44:27
bucks. Probably not the same in
44:29
lawn care. can’t get away with
44:30
it but we can kind of take a
44:31
page out of a different
44:32
industry and say, hey, we can
44:33
set some precedents of it like
44:34
hey, if we’re like out. We may
44:35
be only applying to the yard
44:37
area we can get to and if you
44:38
want us to come back, maybe
44:40
this is just a break. even that
44:41
destination um but that pre and
44:43
post notification is absolutely
44:45
huge especially if you’re
44:45
dealing with chemicals and you
44:46
have kids or dogs and pets and
44:48
things like that. Yeah, totally
44:50
and even with that
44:51
notification, this person still
44:53
had some repeat offenders that
44:54
got the notifications still
44:55
wasn’t doing what they what
44:57
their duties were as a client.
44:58
So, we actually implemented a
45:00
really simple system but to be
45:02
able to track those repeat
45:03
offenders um you know, The
45:04
first offense. second offense
45:06
and third offense and at that
45:08
point, it kind of notified the
45:09
owner and said like, you gotta
45:10
make make a decision here. you
45:11
want to continue servicing this
45:12
person? It might look great.
45:13
$100, an application but if you
45:15
gotta go back three times and
45:16
you’re none the wiser that you
45:18
had to reschedule this three
45:19
times that’s going to erode
45:20
your profits to three strikes.
45:22
You pay or three strikes,
45:23
you’re out either way. So,
45:24
alright. Well, I appreciate it
45:25
buddy. Coming back at you next
45:27
week, work on it Wednesdays,
45:28
Mike and Dylan from the Simple
45:30
Grow Team. Uh happy to get some
45:32
more pres submitted questions.
45:33
We’ve got a couple good ones
45:34
coming up but uh if you have
45:36
some questions or things that
45:37
you would like to work on in
45:38
your business, uh we’re going
45:39
to break down step by up and
45:40
actually like we did today,
45:42
show you how to make the
45:43
formulas and how to actually
45:44
build that out uh outside of
45:45
the software and then
45:46
hopefully, how to implement it
45:47
in the software to buy those
45:48
time back and actually buy some
45:50
more freedom for you to
45:52
actually work on these
45:53
processes and systems in your
45:54
business instead of actually to
45:55
be a slave to your excel sheets
45:57
and pen and paper. So, we’ll
45:58
see you next Wednesday work on
46:00
it Wednesday with Mike and
46:00
Dillon from the Simple Grow
46:03
