Ep 296 - Why Generators Are The MOST Profitable Electrician Niche

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hello, hello, hello and welcome back to another episode, another fantastic monday, joe with us, me and joseph lucani, the sales boy, here with you for another episode of electricpreneur secrets, the electricians podcast.

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Joe, we're as late as we've ever been on this one a little over an hour, but present, not perfect.

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We're doing everything we can to give this free value away.

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Brother, how are you and how is your weekend?

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I am doing absolutely amazing today because one without giving too much away, this topic is so near and dear to everything I love, so I'm super pumped to be on it, Even if we're an hour late, worth it.

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As far as how the weekend was, honestly it was a great weekend.

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We had a situation where it was extremely humid and raining constantly, but I was able to spend a lot of time with the girls.

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We had a lot of time with the family.

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It was just really good for some R&R.

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What about you, brother?

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I love that man.

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Yeah, same thing.

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Family time did lots of chores.

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Got some gardening done Still a bit of sun here still enjoying.

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So yeah, got some gardening done, still a bit of sun here, still enjoying.

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So yeah, making the most of that.

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And we've been itching to have this topic.

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As you know, it's one of well, you know, of course, but as our listeners know too, joseph was a generator specialist in your business, former business patriot electric right, and you guys made a very strong go of that from the beginning.

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Now I want to unpack a bunch of that today, but really what our intent is today is to shift some beliefs around it and I think we got the attention of some people or maybe the hour late to benefit, because we got eight people live with us already.

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But we need to answer this question.

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It's counter to contrary belief why generators are the most profitable electrician niche? Because I've heard the opposite.

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Joe, I got to tell you this.

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I've heard other massive coaching firms even saying that you know what I would avoid these because there's a lack of profitability.

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And yet that was not your experience.

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So I'd love to jump into this and really explore, like, why are people holding this back? Why are people feeling held back by it? Why haven't they gone all in on generators yet?

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All right, awesome, you want me to just start firing off?

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Let's go, man, let's go.

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So the first thing of why people say that generators aren't profitable is because they're misunderstood as to what a generator's actual focus is Like.

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Why do we even want to offer them in the first place? Now, if you were to just do installation meaning that I don't do service, I don't do maintenance and I'm not offering enhancements customer calls for 11kW Generac and I'm going to show up competing with others on 11kW Generac you'll find that your margins often have to be much tighter because most electricians can install a generator.

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Most hacks can also install a generator, literally.

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Some of them come with easy to follow guides Like, hey, go ahead.

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I don't want to interrupt.

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No worries.

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We can have situations where, like the hack electrician says I'm going to call the provider, they're going to have the generator in your driveway, it'll sit there till I can show up.

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You do the permit, you do the inspection, you coordinate for all the maintenance, you contact the town and the utility.

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I'm just going to turn the wires and turn the tools.

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That itself is not profitable and that reminds me.

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Sorry to interrupt, but that reminds me of just like a standard opportunity call, where maybe someone wants an upgrade in their home but they are fielding other quotes and so what's likely to happen in that few quotes they grab, well, someone's going to give them a basement price, right, go ahead.

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I saw you winding up, I set you up for it and then stole it.

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I'm on the T right.

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You can tell.

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When it comes to generators, for all you guys who listen, I speak with a particular level of fervor because I truly feel that generators are one of the most misunderstood avenues of the electrician's trade.

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Where it actually becomes profitable is this.

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A generator isn't just meant as an installation tool.

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It is a relationship tool.

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What you'll find with generators is as you become more familiar and specialize in them.

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There is numerous enhancements you can offer.

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There's numerous installation designs that you can provide.

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But really where it comes to thrive is when you say I am setting an ongoing service relationship with my client.

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So I'm going to paint a picture for you.

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Let's say we installed a generator with no enhancements, but a five-year generator agreement or a four-year or a three-year how many a multi-year plan Provided? You don't mess up this relationship.

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If the client had any electrical issues in their home, who would they likely call to come take care of it?

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You.

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Yeah, provided you didn't drop the ball and fail to mention that you're an actual electrician, a master electrician, and you do more than just generators, and make that clear with your process.

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Correct.

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That has to be established that you're both a residential service specialist as well as a generator specialist, and that word specialist is very important as well, because when it comes to purchasing of generators and clients' opinions, they will go and often pay more for the safe bet of saying I know for a fact, even though if you're more than someone else, you're more than Acme Electric.

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I know that you're going to do the right thing.

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I know that when I lose power, I won't lose generator functionality as well, because I trust that you know what you're doing and I'm safe and comfortable with that.

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Does that make sense?

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It does Totally, and I know there's a bunch watching us right now.

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So if you guys are already installing generators, go ahead, go in the chat on our Facebook page and let us know.

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Yes, we are installing generators.

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Are they profitable for you, yes or no? Because we're unpacking a bunch of that today and this whole week, guys.

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So don't go anywhere.

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I can't even wait to tell you what we're going to give away on wednesday.

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It's huge, but you know what? I'm hearing? A couple different things, but one thing that rings in my head and I can't shake man, and we talked about it before motors equal maintenance that.

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Maintenance is good and motors equal maintenance.

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Where else are there motors in?

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your residential electrical system.

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See, that's a lot of hard times for a lot of other people, right? Because if you think about your electricians, what motors are we typically working with? Unless you're getting involved in appliances or in other trade facets, you're usually not having a lot of exposure to motors, at least as a residential specialist.

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So if you had that example and you're familiar with motors and engines and you're learning about them through generators, you now have the expertise to branch out into other avenues that you would not have had training on.

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To branch out into other avenues that you would not have had training on.

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Like, as an example, I am so confident in my ability of taking apart generators that I learned how to diagnose appliances because I started learning how relays worked.

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I learned okay, I understand how to figure out the difference between a rotor and a stator and how to figure out what's faulted in it, what's going on in magnetos? There are things that go on with your systems that you can apply to other avenues that you would not have had the knowledge to prior to that exposure.

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Which also enhances your ability, trust and authority as an electrician.

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Correct, you know know more, speak to more and can demonstrate more specialist knowledge than your other residential electricians, unless I misunderstood that.

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No, you're completely correct, and I can give a very practical example of what that would sound like.

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So, realistically, let's say you have two people, one who works with generators on a regular and one who just installs them.

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Customer has an issue where they're saying the generator works but doesn't quite sound right.

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The installer goes out, he presses it in manual mode.

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The generator runs rough, but they put it on.

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You're getting your 120, 240.

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It's working.

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It should be fine, right?

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Problem with that person is they found out that you turn power off and for some reason it fails and they can't figure out why it must be a problem.

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We'll get to you when the storm's over.

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As a service specialist, I would be listening to the engine.

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Is it starved, is it hunting, what's going on with it?

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And my first thought is, if I hear it running rough, I'm going to test it under load, not just during manual.

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So I would see that the stepper motor is having an issue and that there's a problem with the fuel actually physically getting to the unit or that the gas is undersized or there's too much load being put onto it.

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And now I don't have to wait for the customer to lose power in the store and to figure out it doesn't work.

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I found out now.

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So I've actually figured out an example where one person says, yeah, everything's working fine and ends up with a warranty call.

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We do a diagnosis, find out it's not working fine and end up with a repair that we can sell today and now having a customer be safer during an outage.

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So both parties win.

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I love that, and that's not the only enhancements.

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Like, really, there's a bunch of reasons for this right More revenue, more profit, more trust, more lifetime value, which is a hugely, hugely underappreciated aspect of your business.

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In fact, we know and listen to as mentors of ours people that spend most of their journey focusing on expanding the client experience instead of expanding on new clients does that make sense so, not to mention more exposure to other industries.

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And what do you think that means? Like this more rounded exposure to other industries, jo, joe, when you're in this generator niche.

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So there's another fun example that I can come up with was I primarily work with residential grade generators.

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Granted, you know there's of course diesels, there's liquid cools, like we always touched on those.

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But when you understand how certain systems work, you know how other systems work above and below it.

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If you know three-phase, you'll likely understand single-phase as well.

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Residential motors are similar to industrial or commercial-grade motors.

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So being able to say yes, I can attempt that, or yes, I can get involved in that, opens more doors.

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So there was examples where a customer we were doing a service change with and he wanted to get a panel.

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So his whole goal was relocate the panel.

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But we recognized that at his size home he needed a 30kW and he wanted a diesel.

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If we didn't know generators, we would have lost that bid or lost that job, because I would have had to say you know what I'm sorry, I'm not familiar enough with this to really quote it effectively and someone else would have gotten the total job Instead.

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Because we knew residential enough, we knew where the similarities were and it wasn't such a leap to break into those larger scale projects, and then we were able to win the whole job and then the lifetime value of that client.

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Totally.

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I want to deep dive a little further into another aspect of this Also, as we talked about how sure a base installation could leave you without a ton of margin in there.

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But that's always kind of the case, isn't it, when we sell our base option.

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And to those of us listening who are just on one option, maybe still, I would say it's progressive, right, we're going to get out of this.

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This is the danger, right? More options means more likelihood for a massive vip offer, which means more likelihood that you're going to be extremely profitable and have a longer relationship, or even just as we've talked about this concept of making a roadmap out of your options.

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So it's not even like I'm trying to sell you everything today.

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It's here's everything we could possibly do to you, and we're committed to serving you at the highest level.

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Knowing this now about your electrical system, and as we add these options for generators too, what's going to happen to that profitability man?

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It's continuing to grow up, and I just wanted to touch on one thing before we moved on, which was because you brought up a really great point, which was these are things we can continually talk about, but it's also an ethical way of bringing it up as well, because part of our process is we need a because reason for everything we've offered.

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Right, I'm doing this for you because Now, if you had a strong because reason for every line item, now, when you sold that multi-year maintenance agreement, you were ethically allowed and almost obligated to an extent, to say hey, I know that we talked about this last year.

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We offered it to you because we felt it would benefit you in this way.

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If you don't mind me asking, why did you feel like that wasn't important to have, or why did you choose to not have that? So, every single year, you have the opportunity to present them pre-made options that you already built.

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You have the opportunity to present them pre-made options that you already built.

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So just one option sheet can lead you to year after year after year of upgrades and enhancements.

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Definitely, yeah, massive.

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And ultimately, guys, what this leads to, ironically, is less marketing expense.

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So, again, improving the profitability of your business, and we're going to get into supporting that with Joe's personal experience and even some of what our clients are seeing on the inside track of this service loop electrical movement.

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We're helping electricians, master sales, simplify pricing and deliver premium level service and, at times, decide on a niche.

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Now, this is just one of the often unspoken advantages of working with us on the inside track is Joe literally built a business off of this gen specialist niche, so there's an added advantage of having that exposure to someone like yourself and when you do as we're, articulating your marketing will actually be less because you'll be in a higher demand for a more specific piece of the market.

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Does that make sense, Joe? It really, really does.

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And can I touch on that for a light moment?

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Please Okay.

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So one of the main benefits that I found from niching was you get to choose and allocate where your clients are found, as well as which clients you're going to be lined up with.

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So we're going to get into further down these episodes what kind of people are buying and why they want to buy but as a generator specialist, you'll have the position of saying, okay, I'm working with either homeowners who need what I have and genuinely want it, business owners who see a specific need for this, or people who are in emergency type situations that need the immediate lift.

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All three of those particular demographics produce wide ranging branches off of each one.

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So just by being that main focal point that says, for each one of those niches they'd want to be like yeah, you're the kind of guy I want to work with because of X, which we will get into, it'll be so much more effective because more hands will come up from one ad versus you needing to constantly hit ads for every one of those demographics, totally, totally man Sheer interest.

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It brings up sheer interest when you're driving down the block, people just come up and ask you oh, you're a dealer.

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I love something else you said kind of offline, but you were also a champion dealer, is that right?

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Yes, yes, I was.

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I said that was one of the last.

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Yes, but you, how many champion installations did you actually accomplish in your time as a dealer?

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Zero Zero installations.

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Why do it?

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then, Okay, it's actually kind of funny.

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Well, we got into Generac, Kohler and Champion to cover the three main aspects of generators.

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Kohler is the highest quality brand that I will swear by and was usually allocated to the most premium people.

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They knew I want Kohler.

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That was that Majority of people are going for Generac.

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It is a quantity over quality from my personal experience, and it was very great because a lot of people associated Generac with Generator.

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It was a series of Xerox to copier right, so we would get that demographic.

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But Champion was a very particular thing.

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Champion was this up and coming brand at the time where not a lot of people were very familiar with it.

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It was seen as an economy level entry point.

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But it allowed us to say that we specialized in multiple brands of generators, including off-brand generators.

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That way, if you had the option of working with someone, you would see multiple dealer signs on someone's van.

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What would that communicate if you saw someone who could work with multiple specialty types?

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That you are the specialist.

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Correct.

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You know more about generators and the various types of generators and even if I went and did a shitty installation with hack job joe not you, different joe, different joe um with a champion generator, that you could still be a point of contact to help us with the troubles we're having with that system correct and the main benefit is is, in addition to now being seen as a wide branching specialist, in addition to having a specific unit for each targeted demographic, we found that more people searched Champion for portable generators, which then got us into the portable generator niche.

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So you had ultra premium doing whole homes, automatics or collars, essential circuits being done with generacs, portables being done with champions and a cross mix of each based on what the particular option that best fit the client.

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And, my favorite, a process to address all of the needs of every client.

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Every time you came back for maintenance, inspection, warranty, technical upgrades any of it.

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Correct, that's got to be one of the biggest reasons that anyone would say this isn't profitable.

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Because by my math guys maybe I've got this wrong Maybe something changed where we price electrical work differently than we price generator work, but as far as I knew, using your service rate which was determined to be profitable for your business and offering options, that then the profitability increased as your level of service did, the generators were no different, and thus I would like to consider this debunked and ask you for some personal feedback from your personal experience and your story, including, if I can begin that reference by saying, is it true or would you say, would you agree with sort of the blend of the balance of your generator versus residential specialist work that we kind of talked about a bit before being about 60-40? And can you walk us through that a little bit, Joe?

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Sure, if you haven't helped me with that.

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So the numbers are correct, but they might not be in order that you originally suspect, because some people look at you and say you're a generator specialist.

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60% of what you should do is probably generators Incorrect.

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Primarily, what we did was residential specialty work, but the generators were about 40% of that.

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The benefit of doing generators is that they are a stepping stone to a long-time, lifetime relationship.

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So what that may look like is I know generators to such an extent that I can compete against most people and have enough of a value and enough of an authority on it that where it's worth paying a higher investment for that safer bet.

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Once you're involved with that customer and you're showing them the white glove experience and you're showing them that you can serve them at the highest level and that you do everything except for they have to write you the check every other aspect is handled.

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Now it becomes easier for them to want to invest for their projects electrically into you.

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In addition, we loved selling multi-year maintenance agreements.

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That was our shtick.

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We loved doing multi-year agreements with people.

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So every year we came back.

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It was another touch point and another vote of saying wow, this company gave me a great experience.

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Wow vote of saying wow, this company gave me a great experience.

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Wow, they gave me a great experience year after year after year.

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So when they had electrical issues or they had a project concern or they wanted things upgraded or installed new, they already had an electrician who had been wowing them for the past four or five years.

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So we became the people where generators were just the foot in the door to get these kind of jobs that we wouldn't have had the option of having otherwise.

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And it was a blue ocean, because if they already liked, trusted and respected us, there was no reason to keep shopping it out.

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Why would they? There's risk every time you do.

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And now that you've set the bar and differentiation and being a premium service provider, what would happen even if they did?

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The benefit is it's actually great feedback one way or the other.

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Ideally you run the play, you do it right.

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They would see the night and day comparison between having someone come by who doesn't have a process and isn't aimed at serving at the highest level get in, get out, kind of guys.

00:21:39,507 --> 00:21:46,114
Then you'll be like yeah, I'm never going back to them again, I am going with the provider, this is the person I want to work with.

00:21:46,114 --> 00:21:48,410
So you actually have clients.

00:21:48,410 --> 00:21:51,487
If they even tried going elsewhere, they'd be like no fuck that, I'm going with you guys.

00:21:52,769 --> 00:22:04,458
Or it's actually an amazing way to get good feedback in case you did something wrong, because a lot of times when people don't have something go well, the client just disappears.

00:22:04,458 --> 00:22:07,673
They don't call you back, they don't tell you what's wrong, they just stop calling you.

00:22:07,673 --> 00:22:17,415
But if you had a multi-year agreement with a customer and you gave them a bad experience, they're not going to just chalk up $1,200 and say, yeah, no, we're not going to work with you.

00:22:17,415 --> 00:22:23,587
They're going to tell you exactly why they were unhappy.

00:22:23,587 --> 00:22:33,498
And the benefit there is that now you have the means of improving your service for all of your clients, and the customer has a vested interest in wanting to see you improve so they don't lose their investment and faith in you.

00:22:33,498 --> 00:22:44,792
So, whether you did great, you're now in a position where they don't want to leave, or whether you did bad, you're at least now having the opportunity to correct it where you wouldn't have had that opportunity before.

00:22:45,986 --> 00:22:46,646
It's massive.

00:22:46,646 --> 00:22:48,491
This is a massive takeaway.

00:22:48,491 --> 00:22:50,017
Whoops, as I make a bunch of noise here.

00:22:50,017 --> 00:22:54,494
This is a massive takeaway and I just want to highlight the numbers for a second.

00:22:54,494 --> 00:22:58,236
So you did a consistent 1.3 million out of your van.

00:22:58,236 --> 00:23:04,996
40 of that, roughly year to year, was generator initiated contacts.

00:23:04,996 --> 00:23:21,211
So over 500 000 in sales roughly would have come from that initial generator offer and maintenance packages that sounds about right the other 60, the,000 to $800,000 a year roughly again dealing with averages here.

00:23:21,511 --> 00:23:32,576
Right, could have been also be, from your explanation, in large part driven residential service from the generator contacts that you generated on the front end.

00:23:32,576 --> 00:23:33,689
I see what you did there.

00:23:33,990 --> 00:23:34,772
Yeah, pun intended.

00:23:34,772 --> 00:23:38,935
I actually have a very specific example of how that applied in such a huge method.

00:23:39,566 --> 00:23:41,271
Let's hit it and then let's wrap this up.

00:23:41,733 --> 00:23:51,865
Okay, so I've made mention that there was a client that we sold over $300,000 to specifically as a residential client, and it wasn't like a hey, I've got a lot of money, I'm dropping it immediately.

00:23:52,346 --> 00:24:01,731
It was a constant ongoing relationship where we would do more and more and more constant ongoing relationship where we would do more and more and more and they just kept wanting more because of the service provided.

00:24:01,731 --> 00:24:05,685
The reason we got with that client wasn't because it was a premium person.

00:24:05,685 --> 00:24:24,457
It was a customer in the middle of God knows where, like an hour North in the boonies, in the middle of the woods, and he bought the generator himself and was getting bids to try to get the cheapest installation costs Because we won that job.

00:24:24,457 --> 00:24:37,616
He then sought enough faith in our workmanship to have us do more things and, as he realized we could do more things, all those other avenues continued to open up possibilities for us.

00:24:37,616 --> 00:24:41,825
All those other avenues continue to open up possibilities for us.

00:24:41,825 --> 00:24:53,705
So the benefit is is, if you think about generators itself, maybe only 50,000 of that 300,000 was generator related and the other 250 would have been electrical service specialty.

00:24:54,184 --> 00:24:54,445
That's a wild.

00:24:54,445 --> 00:24:55,209
I'll take those numbers any day.

00:24:55,549 --> 00:25:23,212
Yeah, of course, right, that's wild, and so many of us again are just not honoring the service process and establishing something, a cadence that we could follow, and that's got to be a big piece of why we aren't doing it yet if we're out there running our own electrical companies.

00:25:23,212 --> 00:25:31,528
Now, to wrap this up, joe, because we got four more days to talk about this, I just want to congratulate you again on your success in this venture.

00:25:31,528 --> 00:25:41,227
Thank you for sharing your knowledge as we deep dive into gen spec, brains, experience, knowledge, profit, all of this all week long.

00:25:41,227 --> 00:25:54,433
And, as I said, we've got a massive action piece this week because we've already done a three hour generator workshop a couple months back that we never released the replay or the Coles notes on that, and I'm thinking this week might be the week that we actually do that, joe.

00:25:54,433 --> 00:25:57,964
What do you think? Is that too much to give away? Be the week that we actually do that, joe.

00:25:57,964 --> 00:26:00,055
What do you think? Is that too much to give away?

00:26:00,738 --> 00:26:05,635
I think that's a lot to give away, but you know what? I think there'd be a lot of value in it as well.

00:26:06,525 --> 00:26:07,688
Absolutely so.

00:26:07,688 --> 00:26:14,470
If you guys know anyone else who's interested in generators told you they weren't profitable, go ahead and share this week with them.

00:26:14,470 --> 00:26:26,513
We're here to debunk that all week long and share with you why you really should take advantage of the sales bot Joseph, the sales bot Lucani over here, and with that, joe, let's hit the action items and get on out of here.

00:26:26,513 --> 00:26:29,692
Okay, base action or all-star today, my friend.

00:26:30,105 --> 00:26:45,114
I actually think that I could take either one, but I want to start with the base because I'm really worried that so many people are like I don't know how to get in, and if we can just start with the most simple basic steps, that would help a lot of people.

00:26:45,114 --> 00:26:49,695
Is that cool? You're the specialist, you're going to get both for the first time ever, ladies.

00:26:49,695 --> 00:26:51,530
I'm so fucking pumped, awesome.

00:26:51,530 --> 00:26:52,113
I can't wait.

00:26:52,605 --> 00:26:55,294
What would you recommend for just a regular action here, Joe?

00:26:55,884 --> 00:26:56,125
Okay.

00:26:56,125 --> 00:27:06,617
So it really depends on where you want to go with generators, but the most basic thing possible is a learn how to maintain it.

00:27:06,617 --> 00:27:15,250
It's not a terribly complicated piece of machinery to where a maintenance on a existing functional system would go crazy.

00:27:15,250 --> 00:27:32,337
But the reason why I say maintenance and not installation should be the thing that you first lead with it's because, as you find, more customers need maintenance than they do installation and most installers won't maintain.

00:27:32,337 --> 00:27:44,191
So you'll have a pile of existing generators, likely with installation errors because they were improperly installed, who aren't getting the maintenance they need and they've been abandoned by their providers.

00:27:44,191 --> 00:27:55,516
So who better to come and save the day and say, yes, you put $15,000 into a system and it's not being maintained? I would happily maintain that for you so that you don't have to stress about it.

00:27:55,516 --> 00:28:01,836
And oh, by the way, I'm an existing residential electrical specialist and I'd love to help you with other things in the home.

00:28:01,836 --> 00:28:04,548
That's the baseline action.

00:28:04,548 --> 00:28:05,490
Love it.

00:28:05,490 --> 00:28:06,612
Okay.

00:28:06,612 --> 00:28:14,575
The all-star action is a little bit more involved, but it puts you pretty much on the fast track of getting it done.

00:28:14,575 --> 00:28:16,067
All right, let's hear it Now.

00:28:16,489 --> 00:28:31,894
The all-star action isn't just learning how to maintain, it's learning how to service the systems, because the best kind of call you'll get is my generator doesn't work Now, granted, a maintenance is just spark.

00:28:31,894 --> 00:28:36,314
You're going to be checking things like spark plugs, air filters, oil filters, like the consumable stuff.

00:28:36,314 --> 00:28:48,130
When a system's not working, it's rare that those are the things that go wrong, like, most people know to check a spark plug, but they may not know how to gap a valve.

00:28:48,130 --> 00:28:54,770
So that's why I recommend for the all-star action invest in learning the service of them.

00:28:54,770 --> 00:29:01,210
That could be contacting Generac, contacting Kohler, onan Briggs, anyone, anyone you want to work with.

00:29:01,210 --> 00:29:08,332
Become a dealer with that company and they will offer you specific step-by-step service training.

00:29:08,332 --> 00:29:25,088
If you know how to serve as a system now, you're truly the safe bet because they can pay X dollars to have you restore a system that other people were like nah, that thing's dead, you got to buy a new one and with that you'll be more likely to get into the residential stuff.

00:29:25,730 --> 00:29:30,794
Huge, and there's some other benefits of that that we're going to get into on tomorrow's episode.

00:29:30,794 --> 00:29:36,111
I cannot wait for that, guys, I am Clay Neumeier, the Pleasant Peasant, with me, as always.

00:29:36,111 --> 00:29:47,535
My esteemed partner and co-host, joseph the sales bot Lucani, sharing all his GenSpec details to help you, guys, master generators, simplify pricing and deliver premium level service.

00:29:47,535 --> 00:29:49,346
I cannot wait to do it again tomorrow.

00:29:49,346 --> 00:29:51,190
Cheers to you, guys.

00:29:51,190 --> 00:29:52,393
We'll see you again soon.

00:29:52,973 --> 00:29:53,634
Looking forward to it.

00:29:53,634 --> 00:29:54,497
Guys, Y'all take care.

Ep 296 - Why Generators Are The MOST Profitable Electrician Niche

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