Transcript
WEBVTT
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Really, man, just let's go.
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Just nerd out.
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It would be a pretty good instrument to take my point of view on electricians that choose not to do it versus.
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You know, there are days when we market our business against whole home service companies HVAC, plumbing, electric and I'll tell you, the differentiating factor, I believe, when selling generators is the maintenance, the service and the rapid level of response, because you do not know what you're made of as a generator company until you hit a widespread, elongated outage.
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I'll turn my calendar right here.
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That whiteboard was from our session this morning with my leadership team Because if you pay attention to the HVAC industry, their membership model is fading really fast because it was a lead magnet.
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It was a lead magnet to get a sales technician into the home to upsell a coil, a thermostat, a cleaning.
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What I saw in the generator place is I'm not going to devalue my maintenance contract, I'm going to make this the center point of my business.
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Agreed, I'm going to do that by.
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There's this I'm going to say because we're on a podcast, this appendage measuring contest in the generator space of how many installs did you do this year and how many maintenance contracts do you have?
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Well, I'm looking at my board and check this out.
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So I know a lot of generator companies that have between 1,000 and 5,000 service contracts that they charge three to 350 bucks for.
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Well, that's 350K of ARR.
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I have one third of the amount of contracts, but I charge $1,000 a year.
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What I do is I provide a tremendous amount of value in my membership, which I'll be glad to share with anybody value in my membership which I'll be glad to share with anybody and when a widespread outage hits, I have a few hundred customers in an area to worry about, versus 6,000.
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And, honestly, what that allows me to do is pick up the failed service agreements from every one of my competitors when a widespread outage hits.
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So I have capacity to grow, whereas a lot of other people trying to grow in volume, they don't have capacity to succeed in providing emergent response and they don't have capacity to grow.
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I know service companies out there right now that have 5,000 service contracts.
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They have five technicians.
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There's no possible way Explain that Even at a 2% failure rate which is across the board for every electromechanical equipment or device in the world, 2% is going to fail.
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2% of 5,000 generators is way too much for you to tackle with five service techs with no electricity and everybody's out of power.
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I want to be able to take my install teams, our processes, they're cross-trained and we immediately pause installs.
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We deploy those assets into our triage unit and we go start vulturing up maintenance contracts from everybody charging a cheap price.
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So can I just say I fucking love this guy Like right off the bat.
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First F-bomb of the podcast.
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Here we go.
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I'm sorry, my bad Travis.
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the thing is, is what you're saying almost feels like a breath of fresh air.
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Because, the reason why I feel like it's such a fresh breath there is.
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I actually started an HVAC as well and I started with those multi-trade companies where the only reason they did generators was to support the HVAC in the plumbing, where it was like, well, we have a slow season, let's do generators during those things, and hey, we can have our plumbers do the gas line and we'll even have the HVAC guys do the sizing.
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But then the concern comes down to.
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It's like if you're not a specialist, there's no justification.
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The customer has to choose and invest more with you than it is for a big box operation Like I agree you should charge a premium for your service because it needs multiple visits.
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There are so many specialty components to check, but even your ability of preventing their downtime any specialty components to check, but even your ability of preventing their downtime, like I know I could be a parts changer and it'll take me three days and $3,000 in material to fix this generator.
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Or I could be a specialist, know what I'm looking for be able to identify the exact critical component, have it stocked and be able to properly get this done and then be able to transmit to my next customer and sell a maintenance agreement.
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At the same time, tell me where you lose yeah.
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I'm going to hopefully share some things in here from that perspective that will change the game.
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I hope to give some secrets to somebody out there trying to build value in a maintenance plan without increasing man hours or operating costs.
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I'll give you an example, Part of one of the things we're rolling out and training right now.
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Two things I'm sure you guys heard of CompanyCam by now.
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If you're not using CompanyCam, get with the program because I'm going to give you some key features on how to add value.
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So we do maintenance trips okay, and we'll beat around the bush and get trickle-down effect on install maintenance.
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But this is my heart.
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I started this business.
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I'm a diesel mechanic by trade.
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I'm not a licensed electrician I worked on 2,000 KW generators before I ever touched to 20 KW.
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So the idea is I had to learn to become a home service professional.
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I was already a generator professional, but I was not a home service.
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So as we built up our maintenance contract, maintenance program, membership ours is set up in three ways.
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We do it like the hurricanes.
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Our category one plan is our one time a year visit.
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You have an option to pay up front or pay by the month.
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I like the monthly payment because it amortizes your reoccurring revenue.
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I don't need to be rich in January and poor in December.
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I would rather have a consistent amount of turn my ARR into MRR because monthly reoccurring revenue allows my business to be more even keel than we operate off of two, three, 400K of cash coming in the door at the beginning of the year or maybe more, and then having to make a business.
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Absolutely what our generator business.
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Honestly, we should all be striving to a point where our recurring revenue covers our operating expenses throughout the year and all of your new sales and installations.
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So I like to look at it as an 80-20.
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80% of my revenue is going to come from new sales, upsells, repairs and installations.
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20% is going to come from maintenance and I use that 80-20 rule everywhere.
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I'm going to spend 80% of my effort selling new product and selling the maintenance contract.
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I'm going to spend 20% of my effort on selling the maintenance contract because it sells itself.
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So the one plan is 45 bucks a month, our entry level.
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We do not touch you for less than 500 bucks a year.
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I'm not even interested in it.
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I've done the time study.
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I won't roll a truck for less than 320 bucks.
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Our technicians in our L10 meetings they have a KPI to meet.
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They have an average ticket KPI.
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Our maintenance guys even though a customer would pay their maintenance membership in January, they choose to pay one price.
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Well, even if they're on a three-visit plan, then they have an average ticket of about $330 every time they roll that truck.
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And when we get their KPI numbers, their average ticket has to be above $350, because that means somewhere somehow you upsold something.
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So then we rolled a Category 2, $65 a month, sold something.
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Then we roll to category two 65 a month, $729 a year, two visits we go to category three.
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we go major, minor winterization slash, cosmetic Interesting.
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What do you include in your winterization system?
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Is that the cold weather protection system?
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Or you're also doing the oil?
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What exactly are you doing?
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to enhance it.
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Winter kills batteries right.
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So, we're going to test the charger.
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We're going to test the battery, even though it was functional on the last test.
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We're going to test these things and typically for us, you have to know when your outage season is.
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Our outage season runs from July to November 1.
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So when I go into a winterization it's actually a post-outage follow-up visit.
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So I will share the document with you guys.
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But here's where I was going in the beginning.
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This is the coolest thing.
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How do I add value to the service contract without adding man hours?
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My guy is already there.
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Well, we're now doing FLIR camera inspections.
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You can buy a $300 forward-facing infrared camera adapter.
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Go on Amazon.
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It's 300 bucks.
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Assign one to every technician.
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Then we will not give them to the technician until we've built a video SOP, a written transcribed SOP, and we conduct our foundational Friday training.
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Every Friday morning at 7 am we do training.
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It's either I'm doing the training, one of my leaders are doing the training, or we bring in an outside company to train on something.
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We had a 8-1-1 dig.
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Come out and do a class with our guys last Friday, but we did the flare camera.
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Do a class with our guys last Friday, but we did the FLIR camera.
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What my guys needed and what electricians need from their CEO and leader is I did a survey with my technicians Does everybody know what a FLIR camera is?
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Everybody answered unequivocally yes, I understand.
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Do you understand how it could add value to the homeowner?
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About 50%.
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Do you understand the language on how to sell a FLIR camera service as added value?
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90% said no.
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The language is it is a predictive heat sensing tool to prevent downtime due to failures, not what it is, what it does, bingo.
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What it does and how to sell it.
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So you plug it into their tablet, the in-home consultants using it on the sales guide.
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How beneficial would it be to me to film their existing panel?
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If there is a loose lug on THHN it's going to show up hot.
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I can follow the entire gas line.
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I can follow the entire conduit.
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I can go to the generator in a stopped position.
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I can film.
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It is going to get all the connections for me and I'm going to have that logged into company cam.
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It's going to save into their profile and when I test run the generator I'm going to flare the generator, the lines and the transfer switch in a running methodology Physically open the control board.
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Check it out.
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Check your t3s absolutely impressive.
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All right, not only it's also going to catch a differentiation in v-twin cylinder temperature.
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How valuable is that?
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Okay, now we're in the diesel mechanic mode here guys, I have to.
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I have to call a time out because I need to properly introduce our guest here.
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He clearly is right here with us here to provide value.
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Travis, you're on the right podcast.
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That's all we do here.
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So, to our guests, our listeners, our viewers, please welcome Travis Terabond.
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Did I say that?
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Right, travis?
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I want to make sure.
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I got your name right.
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Thank you very much.
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Travis has been doing big things with generators specifically.
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If you're watching, you can see behind him Kohler generators.
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I have a feeling we're going to get into that, but is it just?
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You've been at it two years now, travis.
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Is that right with GenGators?
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I've been in the blue collar space 20 years.
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I'm a first diesel shop in 2004.
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But I was recently asked for a trailing 12 financials and I just graduated to the point where GenGators Power Systems LLC can provide 12 months trailing financials.
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So we at the end of this year will make our first full year where we exited completely the diesel engine industry and are 80 percent resi, 20 percent light commercial standby and prime power only.
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Congratulations, and there's some big reasons, as you guys could tell.
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I mean, travis doesn't speak like someone with just a year of experience in service, in generators or even in electrical, and you're going to see more of these insights for someone who's quickly grown to what?
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5 million in sales Is that?
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right Almost the past 5 million.
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If December goes like I think it's going to, be Amazing, amazing stuff.
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I know.
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The first time Travis and I connected, it turned into a two-hour phone call.
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I thought we were going to become pen pals in the whole night.
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It was too much so we had to stop.
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We knew we had to do a podcast and that brings you guys up to speed with what it is we're doing here today, which is pulling the curtain back on some of the industry's leading principles, foundations for your generator service and stuff that you guys could take action on.
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And, of course, at the end of this you're going to be a far better electrician, a better generator and install and maintenance technician.
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But as well, I have a feeling Travis will also share some key insights and even contact info to be able to connect with him in the various ways.
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So thank you guys for letting me do my segue.
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Travis, welcome.
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And this is just getting fired up.
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Yeah.
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I love it.
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I don't know how you guys want to do it, but I'll kind of start with our brand story and how we got here, love it and so the name of the company our generator company is Gen Gators Power Systems.
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I come from oil and gas business to business sales where for 20 plus years if you noticed in the industry having a professional stigma around your company name, like infinity Power Products or Legacy Power Systems or Industrial Power Systems, that was what really substantiated your brand.
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We were professionals.
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But what I noticed when I started dabbling into Resi is people want a brand story that sticks and resonates, that is fun and energetic and exciting.
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And so I laid in bed one night, maybe 20 nights, trying to think of my branding, how I was going to go to market, and I saw a lot of people in their generator business title have like something standby power or backup power or it's technically called a home standby generator or alternative energy.
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No one's typing any of that stuff into Google.
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They're typing in generator.
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I don't care where you're at In 50 states, you know what provides power.
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When the utility does, you know it's a generator.
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It definitely had to be GEN involved and I love Alligator really speaks to not only Louisiana but the Gulf Coast, which was my footprint, speaks to not only Louisiana but the Gulf Coast, which was my footprint.
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I really want to grow the business to follow what I call the SEC states, sec football states Texas, louisiana, mississippi, alabama because those states' power outages mirror the same reason why I'm out of power.
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I have a close friend that runs a generator company in Maine.
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He's about to enter his best season.
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We're about to enter our slower season.
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So Jen Gators was about tangible asset in branding, and so I jumped in.
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The brand built the core values of the brand.
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Our core values are grip, growth, responsibility, impact and professionalism.
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I challenge everybody who thinks core values are stupid.
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I think you're stupid if you think that the word stupid's in the Bible, so don't call me some kind of narcissist, but I believe you have to use core values that really embody your brand and who you are as a business.
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We got started on the heels or aftermath of Hurricane Ida.
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Hurricane Ida swept through the Gulf Coast in 2021.
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We had a 48-day power outage in that area.
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Well, let me tell you what a 48-day power outage does from adverse perspective that you wouldn't normally think.
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It brings people back to simple form of life.
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However, what I did notice is that people who had standby generators were able to get out and help the community rebuild immediately.
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Their food was cold, their frozen food was frozen.
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Their house had running water, had hot water, had electricity.
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Home base was good.
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Let's go out and help the community.
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When home base is off you can't help.
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You got to get your house done.
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You got to get your home, your family, taken care of.
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So my family, because I had a standby generator, was not servicing them at the time.
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We got out and helped the community rebuild.
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All of my kids, my wife, my extended family, I had 17 family members living in my house.
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I had my 48 KW old liquid cool Generac 3600 RPM screaming demon even broke the fan pulley and I ran it for two days with a sprinkler and a box fan on the radiator.
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So like it made it.
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However, I was awoken to an entirely new way of life.
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We got out 48 hours.
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We're helping our community rebuild.
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We're handing out food from the Salvation Army, literally cutting trees out of people's homes.
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You couldn't even get a car on the road.
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There was no cell service and about three days in we get cell service and my brother and I are on a Polaris Ranger trying to make it to our shop because the road was impassable by car.
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We made it to our facility and it was demolished.
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My inventory was out in the parking lot.
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I mean, I have a picture that I'll never get rid of.
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I was standing behind my brother and his hands are on his head and his words were my God, what are we going to do?
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And my brother's been my right hand man since day one.
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My younger brother, I don't know, but God's got a plan.
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I don't know what it is going to be yet, but we'll figure it out.
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We head back home.
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We get about 300 foot up in the air on top of this overpass and you know how, when you get off a plane, your phone starts going ping, ping, ping, ping, ping, ping.
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All the notifications start coming in at one time.
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Well, we had just got cell service and my phone started going absolutely nuts.
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Well, because I was five mile famous in the diesel power business, my DMs on social media to help with broken generics and home generators, and the police station and the fire station.
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People were texting me, messaging me.
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We know you got mechanics.
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Can you please help?
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Yes, sure, so my technicians are evacuated.
00:18:45.854 --> 00:18:47.663
They called me boss man.
00:18:47.663 --> 00:18:48.905
I saw my house.
00:18:48.905 --> 00:18:49.607
It's demolished.
00:18:49.607 --> 00:18:51.192
Do I have a job to come back to?
00:18:51.192 --> 00:18:55.367
Yes, but we're going to be working on generators for a long time.
00:18:55.367 --> 00:18:56.551
Come on back.
00:18:58.141 --> 00:19:01.811
I remember the first day that I condemned a 20 KW Generac.
00:19:01.811 --> 00:19:03.316
It was trash.
00:19:03.316 --> 00:19:06.769
I bought the unit from the homeowner who was in a bind for money.
00:19:06.769 --> 00:19:08.363
I gave them 500 bucks cash.
00:19:08.363 --> 00:19:11.990
They had no money, no bank, 48 days, no power, no internet.
00:19:11.990 --> 00:19:14.626
I gave the elderly couple 500 bucks.
00:19:14.626 --> 00:19:16.796
I said I'm going to buy this generator from them.
00:19:16.796 --> 00:19:18.280
Use the 500 bucks wisely.
00:19:18.280 --> 00:19:20.144
I'm going to rig up your portable.
00:19:20.144 --> 00:19:20.885
You'll be fine.
00:19:21.906 --> 00:19:29.108
I took the broken Generac, brought it to my house, put it in my garage and that's how we trained our technicians on that one unit.
00:19:29.108 --> 00:19:39.231
So that generator is a $5 million broken Generac essentially, and I at that point immediately went to work.
00:19:39.231 --> 00:19:43.445
Now I need to become the best home service professional in the business.
00:19:43.445 --> 00:19:56.750
I went to the HVAC industry, I went to YouTube, I started watching Ken Goodrich, tommy Mello, all of the people in the business who have built Fortune 500 or 100 type companies in the home service space.