Ep 3 - 1 Simple Change You Can Make Now to Get More Leads, More Sales, and More Profit

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 sell over a million dollars from a single service van.

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Now it's time for sales, it's time for scale, it's time to become a million dollar electrician.

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Hey Joseph, how was your vacation, brother?

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Man.

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It was probably one of the best experiences I've had in a long time.

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It was the longest vacation I've taken since actually going on my honeymoon.

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But unlike me being a younger individual that I was back then, getting up early and going and watching the sunrise, I did the exact opposite.

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I slept more on this vacation than I have slept on any others.

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So I'm coming back to this with a full sleep tank and no bags under the eyes, Like I'm feeling great, there you go, man Rested, ready to go.

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I did see a couple of photos of you laying on the beach, kids in tow, sleeping on your chest, in fact, uh, probably enough of those photos to fill a full photo album.

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Yeah, it looked like you were getting it was great, honestly, um, the reason I like taking vacation isn't really for myself, it's I recognize and I say this a lot the only people who know you work late are your kids.

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So I wanted to give them the extra time so that we can build those memories of them saying dad was present.

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Dad was here and these are the things we did, and anything they wanted to do we did.

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They want to go somewhere, you want to do something?

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You want to buy something?

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No problem, we got you, we can do it.

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But what they wanted was closeness.

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They just wanted me nearby and they felt comfortable with me.

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So just saying, hey, when it's nap time, I'm going to nap on dad.

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And I was fine with it.

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It was really.

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I know there's going to come a time when the kids aren't going to want to do that and I have to appreciate these moments because one day the pitter-patter feet won't be there.

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I'll be looking at a bunch of teenagers.

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Take notes.

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Ladies and gentlemen, I believe you're very right, sir.

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Thank you for sharing that.

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Today we are here because this one simple change in your business that you likely have thought about, mr Electrician Mrs Electrician, you've likely thought about this and this one simple change could get you more clients, more from current clients, identify your best clients, get you more sales and get you more profit.

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This is why electricians need to have a membership and how to not mess it up.

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You're going to want to hear all of this, so stick with us here, joe.

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I basically have summed this up into a bit of a simple membership formula.

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We've got four components, one price.

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What are these four components, brother?

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Awesome.

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So the first component is something known as a front of the line pass or priority service.

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What that means is that these customers are electing to be chosen to be ahead of every other non-member.

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So as a benefit is it's equivalent of a first class flight?

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I know that I'm boarding number 1A, I'm going to get called first, I'm going to get up first and they're going to hand me a drink as soon as I sit down.

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That's the benefit of that priority service.

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The second thing is the after-hour service.

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Now, a lot of times when people say that they have an emergency, it's very rare that it's 9 to 5, right, it's.

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Either I lost power when I was trying to get the kids to sleep, or I woke up and there's no power in the home, or the fridge is beeping or the sub pump alarm is going off.

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Something's happening.

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It's never during those times.

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So we're giving them the availability of saying for you, our first class members, we are going to get up earlier and we are going to stay later when you call us, and that's a service that's only applicable for you.

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Every other non-member is going to have to sit in that nine to five window.

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The next thing is waiving all diagnostics and service charges.

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Now, that doesn't mean you're doing free work, but what it does mean is that if there's ever a problem, you are the first pick to call.

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Because if there is an issue, in most circumstances Clay, isn't it something where they're gonna say, well, okay, I can pay this company $95 to come out, or I could pay Service Electrical $0 to come out because I'm a member?

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Absolutely.

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At the very least, you're gonna be the first person right, yeah, yeah, lock them in.

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Yeah, so the call is yours to lose at that point.

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And the last but most important thing and I would say like this is really the foundation of where all the value comes from is the annual electrical service inspection.

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What this means is that once a year, I'm going to go into your home with a fine tooth comb and I'm going to look at anything that I feel could go wrong within the next 10 years and I'm going to create a range of options and awarenesses based on my observations and I'm going to prevent those problems before they happen.

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Now, the reason why this is so beneficial for so many people is because most people don't suspect something's going to go wrong.

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Everything works perfectly in the day it suddenly doesn't.

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But when you wait until it suddenly doesn't, it's a costly repair.

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Let's say you have an argument.

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Right now, you lost power in your home.

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Right now, the podcast goes off.

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You have no power right, that's happened.

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That's happened.

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Yeah, it has right.

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And I know you've ripped out the portable generator and gotten it to work.

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You got it, but let's say you didn't have that generator, yep.

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So what do you do Right now?

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There's a day of work that you're not really able to do.

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You have to call a service provider to come out and hope that not only can they come out but that they're going to be able to serve you same day.

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We haven't even mentioned price, because if you have same day prompt professional service, you are paying for it.

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Additionally, what if this was a preventable thing?

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Let's say that it was.

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You had a loose neutral in your main panel and over time it's been fraying because you recognize there's too much ampacity going through it and eventually it starts to get worn down and burnt.

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You could have easily fixed that months, if not years, prior by simply doing an annual inspection and tightening the connections, applying the no locks, cleaning off all the corrosion that builds.

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So a simple 150 diagnostic call or maybe even a $500 panel reconditioning would have been way more impactful to this long-term, preventing their time delay and their loss of service experience.

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Now, I don't mean to monologue here, but there's more that goes into it.

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Do you mind if I just keep ripping it?

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Yeah, keep ripping, man.

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I got a few questions for you when you're done.

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All right.

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The thing about that annual inspection that I feel is really, really helpful is because what it's doing for your customer, it's establishing that you know their home better than anyone else, which impacts all those other features.

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Because if they did have a diagnostic and it was a free diagnostic wouldn't they rather have the person who already knows their home and can be mentally envisioning it as they're driving to the call 100% man?

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So, as a result, by doing each of these individual things in tandem, the end result is you're someone they like, trust and respect, but it also means that you're the first person in and the last person out, because you have the ability of working with them on a different and more emotional level, because you've took the time to build that credibility.

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Awesome man, great share.

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So it's like if you have rapport with the person and you've got the report on the entire electrical system and you know the repairs and the installations that have been done by you and your company, that's a huge edge.

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So let me ask it to you in this way, let's give this perspective.

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We made a promise this would get you more leads, joe, how does it get you more leads?

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Oh, I love that.

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Okay, so the way it gets you more leads is this, in two different aspects.

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On the most simple level, you called me for the original call that I went on in order to sell you this membership.

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So that's one lead.

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So one lead to one, no issue.

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But even if I didn't do the inspection, I know that I'd be doing the good neighbor policy, meaning I'm talking to the neighbor to the left, the neighbor to the right and the neighbor across the street.

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So at a very bare minimum, I have the potential of getting four calls from one Yep.

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Now the second thing is on.

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I recommend doing this at least six months after the first visit, you would come back for an annual electrical safety inspection.

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What you would do in that aspect is now you have another opportunity to meet with someone who's's already purchased from you, whose home you are already familiar with, and they're giving you an open bill to say, hey, go into my home and see what's wrong.

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When is there any other opportunity, when we have permission to do that?

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Just when you're there, man.

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Yeah.

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So the thing is is that you're getting a second call from this one lead.

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So technically you've paid for one lead and you got two visits and you're more likely to be the one who closes that deal because of the additional report.

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But now that you've done the good neighbor policy the first time, you do it again.

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So let's count this through.

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The first visit was one lead to one call, but that one call produced three other opportunities going to the neighbors.

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You were then, from that same lead, going again and now getting a second opportunity, thus doing the good neighbor policy again, meaning that you've gotten one, two, three, four, five, six, seven additional leads from one lead.

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Yeah, and lots of people might argue that, hey, door knocking doesn't produce all that much.

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But you guys have to recognize marketing is not a single moment, it's a series of moments and we're not looking to create buyers.

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That's not what we're trying to do.

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What we're trying to do is expedite people on their journey and have them choose us, and the more they see us and come to learn like and trust us, the more likely that they are to buy from us as well.

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I would take it a step further, even, joe, and at the highest level.

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I'm going to make an additional recommendation here.

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Take the findings of that main repair that you did and or the findings of the annual inspection, and why not do every door direct mailer campaign for that local block or two saying, hey, we've got this level of member in your neighborhood and here's what we found at their annual inspection?

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Where does that tell the neighbors?

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well, it depends on what it's found.

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But, believe it or not, what I would learn immediately is this person's familiar with my area, familiar with my demographic and familiar with my home, especially if you're in a cookie cutter development where, or, like you're, in a large condo development of some sort.

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If you have an issue in property A and there are 65 other units that are the exact same and they were built at the exact same with the exact same materials, what are the odds that that fault is truly isolated to just that location?

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The odds are is that everyone else has either experienced it or has heard about it through someone else, so it's still close and in their immediate situation.

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I agree, man Huge.

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Okay, next question.

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So a bit of repetitiveness here, maybe, but how does this?

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Maybe we're obvious now, but how does this get more from every lead, then?

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By offering a membership.

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So the first thing is we can go through the initial inspection right Just from the first call.

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If all they purchased was a membership, you're adding an extra billable hour Great.

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So it's you getting your little drop in the bucket of what's more.

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But really the big win is during the annual safety inspection.

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Right, because what you're doing is you're literally going through the customer's home and you are looking for things that could go wrong, not to find work for yourself, but to prevent work for them.

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Because if you can catch a larger issue, instead of constantly treating the symptom of a larger problem, you can stop the root cause in its tracks.

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So what that might look like is hey, I'm getting consistent device burnout.

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Okay, well, you might slap in a surge protector and think that's going to solve it.

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But the more root cause analysis is okay, well, let's physically check out the main utility.

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Let's see what those connections look like.

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Are you overloaded?

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What are your connections at your outlets?

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Are we having any of these connections?

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Do we not have a strong neutral path back?

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That would consistently lead to this burnout as well.

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So not only could we offer the electronics protection, but it could also be a main system restoration.

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It could be a redevice of the home, and it would be entirely justified from a logical standpoint.

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You said I found this, and it's a direct result of this.

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We can only treat the symptom, or I've also created a range of choices, from the most permanent possible fix we could do which guarantees this for life, all the way down to once I drive away.

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That's when the warranty leaves too, and you tell me what you feel is the best fit.

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Love it, man, love it.

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Obviously, anyone that buys this has identified themselves as someone who values convenience and proactivity with their electrical system.

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They're someone that values safety and just knowing that the lights are going to stay on.

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Just the identification of those people tells us where to focus time, and so I'm going to go ahead and continue on and say that this increases profitability as well, because your marketing spend for that person with a greater lifetime value is actually less.

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Your cost of goods sold when you return to the same place and do more work there is actually less, so your profitability increases, not to mention if you land more leads in that same area and are able to spend more time as that hyper-local hero instead of traveling all over the place trying to find your next customer.

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So what do you think is stopping people from implementing a membership today in their electrical business?

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Well, I can tell you what stopped me originally.

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Sure.

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Electricians weren't doing this or aren't doing this as a mainstream tactic.

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Where I learned this was studying under HVAC and plumbing technicians, because those industries are very big in maintenance and contiguous memberships because they often have products that require ongoing physical service, so having a membership made sense there ongoing physical service, so having a membership made sense there.

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As an electrician, we often associate membership with maintenance and the logical thought is well, what do we do really needs maintaining if you don't have a generator or a Tesla or a solar system?

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So the main obstacle I see for electricians is believing that this is something they should or can offer If no one else is doing it and you feel like the only one that can feel almost like an island out in the middle of the water.

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But I can tell you from experience that when I started doing it in my electrical business, there was no one else in our tri-state area that was doing it no one, at least, that I was aware of, and I asked around a lot because I wanted to try and mirror different policies.

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So if you feel like you can't ask yourself why and once you find that why, it's usually going to be a superficial answer push past the superficial and instead say why shouldn't I do this?

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Love it, man.

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What do you think is the number one mistake people make when they do implement a membership system?

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Oh, there's so many, but the biggest one, I think, would be trying to go monthly for MRR instead of going annually for a one-time payment.

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Can I explain why?

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Yeah, please.

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So, realistically, if we have a one-time payment, then all the transaction at that point has been delivered.

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It's, you've paid me.

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I now deliver a level of service, right?

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That means I'm collecting before I even dispatch out, because I'm offering this over the phone.

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You want a first class option?

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Great, swipe the card, no problem there.

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But let's say, sake of argument, you're like you know what People aren't going to want to pay a $500 bill.

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They're going to want to pay a $15 a month balance.

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Or they're going to pay a $500 bill.

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They're going to want to pay a $15 a month balance, or they're going to pay a $50 a month balance.

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Well, that's well and good.

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So you sign them up, you get the credit card on file, you take the first month payment, right, $50.

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You go out to their home, you provide the annual inspection, you waive the service, you do the whole home and then three months later, you're $150 in and they decide to cancel because they are cutting their expenses and they see you as one they don't need.

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You've massively lost on that if you didn't sell anything.

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But additionally, what happens when the person's credit card changes?

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What happens when there is an issue that requires follow-up?

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You're paying your CSR and office staff to ongoingly maintain that agreement.

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You're maintaining this constant flow of needing to be engaged with these people to receive a $15 to $50 a month payment.

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And the biggest problem behind that is when it becomes too accessible.

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Everyone becomes first class, because for $15 a month, why wouldn't you take those benefits?

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But when everyone's first class, no one's first class.

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So not only do you end up losing money trying to go monthly MRR, but you end up reducing the experience by making it too open.

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So the people who are wanting to be first class end up getting a lower grade of service and are less likely to renew.

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Does that make sense?

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It does man Really good advice.

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Can I give you a scenario then?

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I'm just going to pick one random scenario and let's see if you could kind of coach me through how you'd begin to fix this situation.

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Sure go for it.

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We have a club membership.

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My field staff aren't offering it.

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Customers kind of surprised by seeing it in the options.

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Don't know what to do with it.

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They're not selling.

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Okay, the first question I would have here is I would sit down with my tech or at the very least I'd say why are they doing what they're doing?

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Am I inspecting what I'm expecting and what that means is?

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Have I role-play trained with them on how it should be offered?

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Do they understand the benefits and can clearly communicate in a way that a lay person would understand?

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Do they personally seem convinced and offer it without seeming pushy?

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Really, I would say, am I training them in any regard to how they should be communicating it?

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If the answer is no, then it's not their fault.

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They're not selling.

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It's your fault.

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They're not selling Because this is a communication of an experience and if they can't be emotionally bought into that experience, they have no benefit from a logical standpoint of why they'd want to be a member.

00:18:31.142 --> 00:18:35.598
So the very first thing I would get into is understand the text.

00:18:35.598 --> 00:18:38.305
Why Do they understand why it's being done?

00:18:38.305 --> 00:18:43.726
Do they understand how it's being done and do they have the repetitions to do it smoothly and authentically?

00:18:44.856 --> 00:18:45.499
I love that man.

00:18:45.499 --> 00:18:46.462
Really good advice.

00:18:46.462 --> 00:18:50.265
I would add one more piece if I could, by all means.

00:18:50.265 --> 00:18:51.259
I think you nailed that.

00:18:51.259 --> 00:18:56.247
By the way, I threw in one more late curveball and I'm going to answer to that specific piece.

00:18:56.247 --> 00:19:12.905
If customers are feeling surprised by it and they don't understand it and that's leading to any amount of confusion, then I would actually lead towards inspecting your calls, listening to some of the calls that are incoming and checking your script on the phone for your CSR.

00:19:12.905 --> 00:19:15.344
Are they introducing it up front in the first place?

00:19:15.344 --> 00:19:23.838
Not that we expect to sell it on the phone, but if it's not the first time customers are hearing about it in the field, that's one less thing to think about.

00:19:23.838 --> 00:19:32.494
That could actually be fatiguing them from being able to make any choice at all in that day, especially your top choice that includes that membership, joe.

00:19:32.515 --> 00:19:35.721
This has been an absolute value bomb of an episode.

00:19:35.721 --> 00:19:36.603
I want to thank you, brother.

00:19:36.603 --> 00:19:37.785
We'll see you again soon.

00:19:37.785 --> 00:19:39.248
I can't wait for it.

00:19:39.248 --> 00:19:39.828
Y'all be well.

00:19:39.828 --> 00:19:44.507
And that's a wrap for today's episode of the Million Dollar Electrician Podcast.

00:19:44.654 --> 00:19:48.987
We hope you're buzzing with new ideas that charge up to take your business to the next level.

00:19:49.174 --> 00:19:53.028
So don't forget to subscribe, leave a review and share the show with fellow electricians.

00:19:53.028 --> 00:19:55.335
Together, we'll keep the current flowing.

Ep 3 - 1 Simple Change You Can Make Now to Get More Leads, More Sales, and More Profit

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