Transcript
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Hello, hello, hello and welcome to the Million Dollar Electrician Podcast, where we help home service pros like you supercharge your business and spark up those sales.
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I'm Joseph Lucani and, together with my co-host, Clay Neumeier, we're here to share the secrets that have helped electricians to become a million dollar electrician.
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Tell me something, though, because we were just in the middle of having a laugh about this.
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So you choose to wear black because of law enforcement during your ride alongs?
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Is that the truth?
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so I mean not necessarily I.
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Actually there's another company that I saw them I saw like a group picture of them and they were all wearing black and it just looks so sharp because we used to wear the white shirt, khaki pants and one thing is, our cleaning of the uniform bill went through the roof, but now, with all black, it hides things a lot better too.
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So yeah, cause I'm actually.
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I'm on your website and I'm seeing almost like an off-white little bit of a khaki shirt and I'm in the about us and this is a picture of you and your wife, is it?
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Yes.
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Yeah, beautiful family you have.
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Men, I love your website.
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You know what else I love about this.
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Can I just say this quick yeah, please.
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Code of ethics right there and about us.
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Yeah, this is like corporate social responsibility right here.
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Earnings, we will agree with our customers independently and in advance on the basis for our fees.
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I love that you just put it out there.
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Code of ethics strong.
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I always knew that about you.
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The website only confirms it.
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Thank you for your service.
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Yeah, absolutely.
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I mean that's part of what we have to do as business owners.
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We have to be profitable for us to be able to provide that service to our customers.
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If we're not profitable, we can't hire right, we can't have good, nice vans, we can't buy high quality material and parts to put in people's homes.
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We have to be profitable.
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You know, one of the best ways that I found describing it is even using, as an objection, handle skill.
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So some of the things that we like to offer is we offer a lifetime craftsmanship guarantee, meaning that, like if I've made a connection, like from one electrician to another, if you make a splice, three number 12s, you strip it and you have a full helix and you have the nut on it and you've got your tape around it and it's counterclockwise and you lock that down.
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Is that not coming apart Absolutely?
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No like, unless someone actively comes in and goes in there and just pull yeah.
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Then you know it's for life.
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So offering a lifetime guarantee is good.
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Offering a lifetime guarantee is good, but I've used that as a justification for the profit margin, which is.
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Hey, I understand that you can consider this more of an investment than what you originally expected it to be.
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Can I explain why?
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What we do is we provide a lifetime crash guarantee to ensure that you're getting the best product before, during and after.
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But at the same time, if we're not making a fair profit, how could we realistically stay in business enough to provide?
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you that lifetime guarantee, absolutely, absolutely.
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And just watching it click, it's amazing.
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Yeah, yeah, and it I mean, and I'm not, and we shouldn't be afraid to put it out there.
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Why should we be afraid to put it out there?
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So?
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well, I think a lot of times it's because people are in a scarcity mindset where, like and I remember it as well, I'm sure you've gone to calls I remember there was one call where, like, a little old lady could have been like 85 years old, was really upset that we weren't $50 an hour like was like visibly upset.
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And as a result, people have gotten this stigma where they're like oh well, if you're not in the customer's expected range, you're taking advantage of them without realizing.
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Well, who would know the pricing in the industry better?
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The person who has to do it every single day and actually make a living off of it, or the person who hires one every seven years?
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Yeah, that you're a hundred percent right.
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And it's those guys that it's our, our fellow, uh, sparky brothers that, um, like you said, have that scarcity mindset.
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I used to be like that.
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I still remember the first time I presented my first flat rate price option and my dad was telling me Guillermo, there's no way anybody's ever, ever, ever going to pay.
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That You're out of your mind.
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I'm like, dad, I'm trying it, I'm going to do it, I'm going to see what happens.
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I was.
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I remember I built my options out, I slid it over to her and I'm in internally.
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I'm like, and then she goes.
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You know what?
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I think I'm going to do.
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Option one I was just it's like a fireworks went off inside me.
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I'm like I knew this would work.
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You know, I love that, I love that.
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Can I share something that's similar?
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Okay, so you know how you're talking about your mother and you're doing like the same thing, like here.
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I remember like a lot of my family is white collar, right.
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You know pharmacists, nurses, engineers, doctors, and they're all used to making a certain kind of income.
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Obviously, you work as a lawyer, as an engineer, you should make a certain income right, yeah, I'm a blue collar.
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I'm the only blue collar person in my entire family.
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That's really the whole line.
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So when I created the service business and started using service rate, it had to be over the one 65.
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Like we eventually were at like three, 89.
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And I remember one of my cousins asking me to come over and give him a quote for a pool and I was like hey, before I do, just for the sake of transparency, we focus on services.
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As a result, this is what we're going to be charging.
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And he was like you guys are going to go out of business about the case.
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You know, if you're not doing it for this little and literally just reversing and being like well, what about you, man?
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You're an engineer.
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So when you do time material, do you charge by the minutes in AutoCAD, or do you charge for the experience that you have in order to design this?
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And?
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But people don't say it's a hundred percent.
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It's a hundred percent true, a hundred percent true.
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I mean, the most valuable thing that we have as electricians is our, is our knowledge and our skills.
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That is the most valuable thing that we carry with us every single day, not the wire, not the devices, not the.
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That is the most valuable thing that we have I agree with you 100 100 comes with you.
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Yeah, begs a big question, and it's how do we expand our impact?
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it depends on what you want to make the impact in like for all, focused in service, focused on this.
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If your set of skills are to be able to serve at that highest level, but you've only got 24 hours in a day, then the big question I mean this is why we get on this show really every week that we're trying to answer is how do we expand that impact then?
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well, if you only have the 12 hours and you only have the 24 coins and you know you got to put it into health, family business first.
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The remaining coins can only be put into service.
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You have to expand your team.
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Like if I want to serve at a high level, I need to grow.
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And in order to grow I need to expand the people who can serve adequately and ethically.
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I think it begins.
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I agree with what you just said, joseph, but you got to look at it almost like a micro and macro level.
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So, number one, I think you, as the individual, you have to be able to go out there and make it work.
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Make this thing work because it does work, find success in it.
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And once you find success in it, start bringing and assembling a team around you in it.
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Start bringing and assembling a team around you.
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Once you start assembling a team around you, then you can.
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Then other people will definitely start to look look at you a little bit and want to be like hey, why is that guy always have a nice van?
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Why is his guys always uniformed up?
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And another thing too is you start getting involved in or connected in groups like the, like the resident, like the, the, the, a revs group or yep, or you know the circuit connected with, like service loop and all that sort of stuff, and you start to make those connections and those lead to people coming to your shop.
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You start to lead to little subgroups being created.
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We have something here in our Maryland area is called the Maryland mastermind and we do individual shop.
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We meet at each other's shop on a monthly or maybe on a quarterly basis, and I see what another guy's doing and I take that and I apply it to my business and vice versa.
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We just we should have that open door to each other's organizations.
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But it begins, I think, by being successful at a micro level and then being able to show everyone else how you're doing and they can apply that to their business.
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We just had a warehouse mastermind a couple of weeks, a couple like a month ago, and guess what?
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I got it down because of because of another member in that group to to restock our vans.
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We got it down to about an hour and 30 minutes.
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I'm trying to get it down to an hour and we're trying to get it to have 11 vans restocked, counted once a month from here on out.
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And I wouldn't have been able to do that if I wasn't opening my doors.
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It helped me.
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I thought I was helping others, but it helped me.
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You know, I guess that comes down First off.
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So proud of you, man, for having the ability of acting fearlessly, because I think the fear of of that is really going to keep a lot of people from being willing to open-handed, where it's like oh, if I educate someone else, they will take from me, instead of well, if you're charging a premium rate and everyone is not, wouldn't it make your life easier if they all became better and started raising their rates too?
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Yeah, and they're not going to be able to they don't have the infrastructure to do so.
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So you're actually reducing your own competition and bringing them onto a better service game, making your life any job.
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You make.
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Your whole market is getting better in your area.
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The whole market Exactly.
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And that's the segue here.
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A mentor once told me Clay, there is no competition, there is only creation.
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Yes.
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And today we're here to create again.
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This is actually a two year anniversary episode, oh yeah.
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And this is actually a two-year anniversary episode with Guillermo Castillo from Electrical Connections.
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You guys, electrical Connections started back in 2003 with your dad, bill, is that right?
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Yeah, yep.
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I'm on your website.
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Like I said, 985 Google reviews, 4.9 over 21 years.
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You're almost at a thousand brother.
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I'm going to get it, we're going to get it, our team's going to get it.
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So two years ago, Guillermo reached out to me from the reps group you mentioned.
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He said, Clay, I want to do an interview with you.
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And hey, why don't you do a podcast?
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Like you ever thought about that?
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And I was like, yes, I've been thinking about this.
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Actually, you're my first interview, let's do this.
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And so we named this thing kind of a nerdy technical term.
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but I went rise to rise thinking of sine waves and electrical technical talk that lasted for a little bit, but you were the first interview man and it's always been true that our chats have gone deep and they've been valuable and they're from the heart, and our first episode was really focused around where we're taking off from right here, which is growth, community faith, how to, at that micro level, develop a company that works and then how to expand that to the macro level and spread that impact, and so I just couldn't think of a better way to officially kick this one off, and I I just couldn't think of a better way to officially kick this one off, and I want to thank you for joining us almost two years later on the dot.
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So thank you.
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Guillermo, it's an honor to be here and I just want to say thank you both to you guys of what you're doing in our industry.
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You guys have got a huge megaphone and you guys are helping so many shops, so many owners, so many team members in their shops and families across this country and your country too, clay.
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So kudos to you guys, thank you for what you're doing, doing our best.
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Doing our best.
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And that country he mentioned is Canada.
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North of the border, we're getting a shout out today, canada.
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North of the border.
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We're getting a shout out today.
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Speaking of shout outs, our last two interview guests have been bald.
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So, guillermo, I've got a.
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I've got a haired brother here with me on this one.
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I'm pumped to have some good.
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Technically, technically, mine's growing out ever so slightly.
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Joseph, I am going to be joining you soon in that baldness, so it's it's coming, it's happening.
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You know what, though?
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I literally was having a conversation with my wife this morning and the best thing is, I find there's two kinds of people.
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There's those who accept aging and love it and there's those who are part of the the comor club, and the thing is that I love being my age and I love looking it, and you know what?
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I don't care if the wrinkles come.
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I'm gonna be happy in the skin that I have I'm just trying to hold silver first I just don't want to do this before I go full.
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Gray man, you won't be able to tell I'm silver, it's gonna be nothing.
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Oh my gosh, 21 years, that's a long time, would you tell us.
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Just kind of, lay the land, guillermo, where are you guys at today?
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Shop size, average revenue for for the year, that kind of thing so shop size, we have, um, let's see, nine service techs.
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Uh, we have four, uh helpers, slash apprentices.
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This year right now, our budget was $3.1 million, but we're pacing $3.4 million this year.
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Yeah, so would you say budget like a projected revenue amount $3.1 million?
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Correct, so you're blowing yourself out of the water there.
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That's awesome.
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Congratulations, absolutely yeah, thank you very much.
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What's going better than you thought.
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I would say that's maybe contributing to that 0.3.
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Yeah, I would say our average ticket is higher.
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Our average ticket is higher Repeat business is through the roof right now.
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It's it's still strong for us, um, and I would say efficiency has also gotten better for us, um, and our warehouse, uh, has gotten much better.
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Where we've kept our material costs this year, um, it's it's gotten up a little bit higher than normal, but we're at around 11% this year.
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So we've been doing a good job about that and I'm really systemizing marketing a little bit more.
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I've been really laser beam focused on it more.
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I used to not be so laser beam focused, but I'm really putting some processes and systems in place right now and our separation of our call center and our dispatch department is huge.
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I feel like one of the most important positions in the company is to have just a kick-ass dispatcher that really knows how to do it right.
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And we do it through data.
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We do it on a weekly basis, so we follow our KPIs on a monthly basis.
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I break it down per week.
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I give it to her what we did last week.
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She does a formula based on conversion rate, average ticket and revenue brought in and that ranks the technicians for this week.
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Who's going to be the who's, the guy we're sending to the best jobs.
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Not, I don't.
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I don't want to say I tell my guys every job is the best job.
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But you know what I mean yeah, no, I understand completely.
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And you know what, if I can jump in on that, I love what you're trying to do, because having a good dispatcher is like having a good field general.
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They're the ones who are behind the lines looking and saying where are we moving the troops properly?
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Because obviously you want to have a CSR who can intake and get them on the calendar.
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But once they're on the calendar, how can I make sure that the maximum impact is going to happen?
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So if I know that Rory has a religious background and the church down the street wants to get a quote for something, wouldn't it make best to line the two people up that way they can connect organically?
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Yeah, absolutely, and we got to run our business data Like before.
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We used to be like Pete's, our best technician.
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Okay, maybe he is for the year, but how about last week?
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Who's the hot guy?
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Right now?
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It's like in a basketball game.
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You're going to feed the guy who's hitting the most shots at that very minute.
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Maybe the first quarter he was hot, but now the second quarter he cooled down a little bit.
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Let's feed it to the other guy and it's all data-driven.
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Timing of that answer is great.
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We had a guy ask this morning in our program hey, should I be tracking my KPI more periodically or really stay on it day to day?
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There's your answer.
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The more recent you are, the faster you can make decisions.
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Yeah, Speaking of decisions, can I ask you a personal question?
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Yes.
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You are the owner of electrical connections, right.
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That is correct.
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My wife and I.
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What's your position there?
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What would you say is your position?
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Do you call yourself a CEO?
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a manager?
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I don't know.
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No, I, I, I do, I do it all, but um, I see you got a book back there that I got here.
00:17:23.429 --> 00:17:23.808
Gino.
00:17:25.930 --> 00:17:29.692
So I would say I oh yeah.
00:17:29.712 --> 00:17:31.273
Trifecta over here.
00:17:31.273 --> 00:17:33.295
We've all got it so yeah.
00:17:33.335 --> 00:17:37.017
So I would say I'm the visionary, um, I, I.
00:17:37.017 --> 00:17:41.006
I'm the visionary, I bring the energy into the building.
00:17:41.006 --> 00:17:43.332
Um, I'm the cheerleader.
00:17:43.332 --> 00:17:45.056
Um, I am the.
00:17:45.056 --> 00:17:45.317
The.
00:17:45.317 --> 00:17:50.343
The I'm the brand ambassador is what I am to the organization.
00:17:51.284 --> 00:17:54.807
I love to train, even though I know that's not in my wheelhouse anymore.
00:17:54.807 --> 00:18:01.093
But when my service manager tells me hey, man, I got to go take my son to whatever, can you train Tuesday?
00:18:01.093 --> 00:18:03.055
I'm like absolutely I'm on it.
00:18:03.055 --> 00:18:04.115
You know, because I love.
00:18:04.115 --> 00:18:19.189
I love training and, to be honest with you, I love your business is like an electrical system, so I love electrical and to be able to go inside of different little departments and make some tweaks and adjustments.
00:18:19.189 --> 00:18:22.560
I love doing that and it's just fun, like right now.
00:18:22.560 --> 00:18:31.700
One of the things that I'm working on right now, on top of the other millions of things I'm working on, is how do I systemize my recruiting now, how do I make that into a process in a system?
00:18:31.700 --> 00:18:36.691
I'm working on like, like all some crazy stuff.
00:18:36.691 --> 00:18:46.190
I don't even want to talk about it yet because I don't have it put together yet, but maybe that'll be on the next podcast how to really recruit with a process in a system, and I'm working on that right now but I love you.
00:18:46.210 --> 00:18:52.270
You're like a mad scientist over the table like I'm not gonna tell you what's under the but let me just tell you, it's fire under there.
00:18:52.611 --> 00:18:55.943
You sound like talking to this guy, joe, yeah, are you kidding me?
00:18:56.003 --> 00:18:57.186
No, I'm really having a blast.