With my YouTube and email list I could start a $750/mo home service agency that serves small guys and probably have 100 clients in the first week
It would be a D-day for those predatory little slugs in all of the facebook groups
I won’t (because I have a conscience) but I could
99% of the home service agency market is propped up by owners having no idea what their numbers are.
You’re doing $30,000 a month in sales, you can’t afford a $1500 a month agency
They think more sales will solve the problem but more sales doesn’t fix horrendous pricing/margins
Stop pricing for the NO’s and start pricing for the YESSES.
Guys try to raise prices so they’re not making Uber Eats driver money and get one person saying “you’re ridiculously expensive” and then turtleshell back to being below the poverty line again.
Many such cases.
Guy running a $500k/yr home service biz at 10% net margins is making $50k
Raise prices 10% and now he's making $100k
His customers see a 10% price increase. He sees his take home income double.
Most of you could raise prices by 10% and not even have a noticeable dip in close
@Alex_li There is nothing fundamentally false about guys waking up and realizing they don’t know their numbers enough and are priced too cheap to make a profit.
@Alex_li Are you wanting to die on the hill that if you sell a commoditized service you are only allowed to sell according to low price and nothing else? 👀
@ToddLlewellyn @Alex_li And now your margins are shockingly better and now you’re being way more efficient and agile in your business because you have more profit.
And you took that profit and invested in a new skill for your business (FB ads) and went out and dialed in your SEO with the extra profit.
@Alex_li Lots of assumptions there.
Same price, same exact service, same material, same sales process, and same sales person with the same skill?
That doesn’t sound like a competitive business if that’s how you view yourself in the market
I'll never forget the gutter cleaner doing $50 Groupon cleans
6-7 roofs a day. $300 revenue. Netting maybe $15-$20 a job after Groupon's cut
Worst margins + highest danger setup I’ve ever seen
Refused to shut it off-said I don’t know what I’m talking about
Saaaaad stuff
For those asking:
Cost per lead means absolutely nothing if you make contact with 1/50 and get a quote in hand with 1/100
Close rate means nothing if you’re going in at cost. HSA sold and (and then kicked out and refunded) a dude who was convinced that doing $50 gutter cleans h…
Things I did in year 1 of home service ownership that I don’t do anymore in year 6:
1 Hire friends/family
2 kill marketing spend when busy
3 Live out of the business bank account
4 Give 15% discounts
5 care about rev $ more than net $
6 Think US politics impacts my biz growth
Movers will be here in 30 minutes
House painter took 5 days longer than he quoted and still isn’t done
My entire house is covered in paint prep materials and has wet paint on every wall.
I preach about being the premium provider and then I hired the cheap guy and it F’ed me 😂
Little nugget from tonight’s group call:
Next time someone asks you for a discount after you quote them. Subtract it from what you think you’ll NET on the job
Most of the time people knock $100-1000 off a quote and actually decrease their NET by 30-50% and don’t even realize it
A realtor who gets multiple points on a transaction for sending some automated MLS links and telling people “it’s a great time to buy” and “it’s a great time to sell” for an entire career saying that HOME SERVICES are priced out of range relative to the value they provide 🥱 https://t.co/nEzGoxUNSg
One of my buddies thinks he got a steal today.
1 24 liter ficus tree + installation
23 plants planted
2 25 foot palms trimmed
1 long hedge shaped and cut
And irrigation installed
For $1000 all in.
Steal? Seems extremely low… He’s very happy with himself😂 https://t.co/DyPDGTIRRv
Home service accelerator started at $2900
Then was $3800
And now is $4800-$6000
Anyone want to guess what happened to the quality of convos on group calls and among members in the discord chat as we continued to add more content to the program and raised prices simultaneously?
@irentdumpsters I have a cleaning lady. Her name is Clarissa. She speaks very little English. She charges me $140 a week.
Your little lead farm would charge me $298 for one bathroom and send me an 18 text automation to leave you a review
@Hokieheye Great question I could see how that looks confusing. No this is the total job revenue, not 50% deposits.
So average tickets are $3700 on these ones
@Hokieheye They get 15% if they let us install in September for training (VERY few take us up on this but the ones that do, it’s very worth it for us)
5% if it’s an October install
Invest is one way of putting it. The mental gymnastics I do is I pay a huge chunk of my previous year tax
Yeah my first business was a junk removal business and I was really bad at marketing and really good at underbidding hoarder cleanouts https://t.co/I1fUkHXVJO
@rampulla_andrew @dylthorn I’ve heard rumors about a guy in the northeast somewhere, I forget where. Who targets these certain neighborhoods with cookie cutter low rooflines that he can do with a 2 foot step ladder.
Prints money. Couple hundred grand a season, like 70% net
Most home service fellas are a 30% price increase away from getting their life back but they simply do not understand middle school math to understand why.
@jamesonhaslam @paulswaney3 I am also one of these people.
I am confident that certain products we install are probably 2-3x the net profit when it’s all said and done as others. Just extremely hard to calculate and track on one job.
Every EOY I evaluate pricing for my businesses
We try to make better products and do more thus fulfillment costs can increase
Christmas lights cost per foot has raised every year for past 3 years
Home Service Accelerator is raising by $1000 on Jan 1st
Stressful but necessary
@blake_bachelor $3800 paid in full as of today.
Google maps stuff, automation stuff, SnipeyLead, community aspect are all something commercial stuff can use.
Facebook ad strategy is def driven to residential tho
This app is full of nonsense sometimes.
This account is not one of those cases.
This is what actual margins should look like as an owner-op. You should take the vast majority of your revenue to the bank.
Trust me, I learned the hard way when I hired after my margins were 💩 h…
Took this 19 pound financial liability to the vet last night at 3am after some chocolate consumption.
Vet was a 24 hour clinic so of course it’s one of those private equity backed ones.
Essentially pitched me a good, better, best pricing package to keep my dog alive 🤣 https://t.co/7H5uRBdzuh
We opted for the “good” option. Which was: induce vomit, give her fluids, anti-nausea meds and then I take her home.
$440.13 for about 20 mins. Honestly not terrible pricing considering timing/urgency.
She’s alive and well https://t.co/NRMypJ1vXc
@SMB_path I messily tried to give her between 2-3 tsp knowing about half was being spit out
Honestly they showed me photos of what she threw up at the vet and they def got the job done lol
@dylthorn 🤣🤣🤣 and there’s actually very little perceived value between him and the fully insured, branded, and uniformed junk companies that would have to charge 4x-6x that to keep the lights on
What do you think is a healthy NET margin for your trade? Let’s use $1mil/year rev as benchmark
For me: holiday lighting seems to be 15%-20% net from guys I’ve talked to. That % significantly increases at sub $500k sales.
Would love to hear from other trades 👇
The average person see this photo and goes “over $1000?!? What a great business”
Until they’re on a 30 foot ladder trying to do that peak with another ledge below it.
$1200 for that roofline is cheap 😂 https://t.co/KiDCe9aNGo
