Master Sales. Simplify Pricing. Premium Service
July 4, 2024

Replay - How to Sell Electrical Services to Friends and Family

Replay - How to Sell Electrical Services to Friends and Family
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Million Dollar Electrician - Sale to Scale For Home Service Pros

What happens when your professional life intersects with family obligations? Discover the art of balancing business with personal relationships in our latest episode of Electropreneur Secrets. We kick off with a lively chat about how sprucing up your video aesthetics—especially lighting—can dramatically boost your online presence. Plus, we share some thrilling news about an upcoming public generator class designed to enhance your technical skills and sales strategies. Trust us; you don't want to miss it!

Selling to friends and family can be an emotional rollercoaster. How do you stay fair to both your loved ones and your business? We'll guide you through the tricky terrain of handling requests for "family discounts" and favors, emphasizing the importance of distinguishing between personal and professional services. We share insights on how to communicate the implications of quality, licensing, and warranties when mixing business with family. Ensuring your loved ones make informed decisions while respecting your professional integrity is key.

Finally, we delve into strengthening your client relationships, particularly when offering services like adding a generator. We discuss strategies to assure clients of the value and reliability of professional services, the importance of providing multiple options, and avoiding ultimatums. Learn how to account for charity work in your business without compromising professionalism. Get ready to master sales, simplify pricing, and deliver premium service in the electrical industry. Tune in to elevate your service delivery and maintain strong professional and personal boundaries. Cheers to your success!

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Chapters

00:00 - Navigating Sales With Friends and Family

11:08 - Setting Boundaries With Friends and Family

23:49 - Setting Boundaries and Valuing Relationships

32:10 - Family and Friends Sales Strategy

Transcript
WEBVTT

00:00:00.020 --> 00:00:03.310
Welcome to Electropreneur Secrets, the electrician podcast.

00:00:03.310 --> 00:00:10.570
We're here with you five days a week to help you master sales, simplify pricing and deliver premium level service.

00:00:10.570 --> 00:00:11.986
I'm your host, clay Neumeier.

00:00:11.986 --> 00:00:16.608
With me, as always, my esteemed partner and co-host, joseph Lucani.

00:00:16.608 --> 00:00:24.942
As you can see if you're watching this live in our Facebook group, my lighting is awful compared to Joseph Joseph.

00:00:24.942 --> 00:00:25.940
You look great today, brother.

00:00:25.940 --> 00:00:26.402
How are you doing?

00:00:27.207 --> 00:00:39.453
I'm doing great, man, and honestly, I got to give you the credit because I had an interesting setup before you came down and literally Clay's strategy brain looked at it and he was like we can make this better.

00:00:39.453 --> 00:00:43.966
And now you guys get to see the result of it, where actually I shine up like a new penny.

00:00:43.966 --> 00:00:45.128
I'm pretty happy how this looks.

00:00:45.630 --> 00:00:52.868
Yep, you shine up and we got to meet finally last week I think I even told you in person I was like you look better than you do on camera.

00:00:52.868 --> 00:00:54.345
We got to fix this.

00:00:55.000 --> 00:00:58.189
My first thought was like what do I look like on camera?

00:00:58.189 --> 00:01:03.584
Yeah, so I'm glad that we're able to get it dialed in and thank we're able to get it dialed in and thank you again for the aesthetic enhancements.

00:01:04.064 --> 00:01:04.706
Yeah, of course.

00:01:04.706 --> 00:01:05.807
Hey, happy hump day.

00:01:05.807 --> 00:01:10.212
It is Wednesday already, and I hope your week's going well.

00:01:11.013 --> 00:01:11.754
It's going great.

00:01:11.754 --> 00:01:13.575
I was going to say I've been getting a lot of stuff done.

00:01:13.575 --> 00:01:19.486
We've making a lot of track good updating classes.

00:01:19.486 --> 00:01:23.442
For that promotion generator class that we're doing it is going to be absolute fire the lessons we've been working on.

00:01:23.442 --> 00:01:26.828
Each week I've been making some top tier objection handling lessons.

00:01:27.269 --> 00:02:03.268
It's going to be a really great week going forward, of course, yeah, and we haven't actually mentioned that generator class live on the podcast yet, but since we're at that right here right now, there's some big takeaways, guys, we are offering a public class, honestly, where you can join us for a couple, maybe two to three hour class to learn about some of the technical side of generators about how to build and design options and present options around them so you can sell these things, why that niche is so important for you and your business and really how to make that profitable.

00:02:03.268 --> 00:02:04.631
Did I miss anything there?

00:02:09.639 --> 00:02:14.961
I mean we're also going to be going into the differences between, like, the automatics and the manuals, all the different products and enhancements that are there, as well as why everything is so key.

00:02:14.961 --> 00:02:19.192
But overall, I mean I'm just pumped because you know how much I love doing generators.

00:02:19.621 --> 00:02:20.582
Yeah, yeah, of course.

00:02:20.582 --> 00:02:25.574
So, as always, we're trying to promote this value volcano and really let it flow over everyone.

00:02:25.574 --> 00:02:28.759
Help rise the tides for all these electrical ships.

00:02:28.759 --> 00:02:38.835
So if you're an entrepreneur and you're not yet on the inside with us, you can get access to that workshop and be engaging with us live five days a week in our Facebook group.

00:02:38.835 --> 00:02:51.671
You can either search Electrician Podcast just like you do on any of the podcast platforms or on facebook, and our group will come up entrepreneur secrets the electrician podcast group.

00:02:51.671 --> 00:02:53.561
So that's the plug for today on that.

00:02:53.561 --> 00:02:58.331
Now we're getting into some great topic today and it comes inspired.

00:02:58.331 --> 00:03:13.926
I mean, it was already on our list, but inspired heavily this morning in our inside track the class that we have with our entrepreneurs, where we're teaching them our sales process front to back, and the class focus today was actually on level one objection handling.

00:03:13.926 --> 00:03:14.407
Is that right?

00:03:15.129 --> 00:03:15.469
Correct.

00:03:16.432 --> 00:03:17.824
All right Going to objection handling.

00:03:17.824 --> 00:03:22.763
Yeah, yeah, tell us a bit about that class and a bit about this topic and how they relate.

00:03:23.866 --> 00:03:35.353
So one of the things that came up was we had a particular student that was really getting hung up on the email at over objection and I kept trying to figure out, like, why, like, what is the real emotional reason?

00:03:35.353 --> 00:03:39.409
Because I understand that some people like to play devil's advocate.

00:03:39.409 --> 00:03:40.616
You know where they're like.

00:03:40.616 --> 00:03:42.161
Well, what if the customer says this?

00:03:42.161 --> 00:03:45.647
I got to make sure that I'm prepared for it and I completely respect that.

00:03:45.647 --> 00:03:52.268
But what was going on was, you can tell the customer had a very emotional reason why he was asking.

00:03:52.268 --> 00:03:55.603
It seemed like it was tied with more than just I'm playing devil's advocate.

00:03:56.183 --> 00:04:00.282
So we stopped the call and we asked we're like hey, where is this fervor coming from?

00:04:00.282 --> 00:04:05.187
Why are you so specific and intense on wanting to know how to handle the email over rejection?

00:04:05.187 --> 00:04:09.312
And what he told me was well, I made a mistake.

00:04:09.312 --> 00:04:19.482
My brother-in-law gave me a call and wants me to do this large and in-depth project with him, and he wants me to do it at this super steep discount.

00:04:19.482 --> 00:04:26.353
And now he's changing the product and he's telling me he wants me to email over all my designs and just get bail, just get back to him.

00:04:26.353 --> 00:04:28.608
And he's like honestly, I feel like I'm wasting my time.

00:04:28.608 --> 00:04:35.353
So the majority of the class I was like we're going to hard pivot, because no one should ever feel like that.

00:04:35.353 --> 00:04:41.973
So now we're going to discuss what needs to happen when it comes to selling to family and to selling to friends.

00:04:41.973 --> 00:04:43.822
Sounds like a fun topic for today.

00:04:44.343 --> 00:04:49.574
Yeah, yeah, sounds like an important one too, and back it up to the beginning.

00:04:49.574 --> 00:05:28.867
I think one of the big problems with this is that friends and family tend to fall into this place of feeling like, hey, because we're friends, because you're my brother, because you're my cousin, because you're my uncle or nephew or whatever the case may be, you should do this work for me for a low price, if not free, whereas I want to pivot here and say, look, the real way to look at this is, because I'm your cousin, because I'm your uncle, because I'm your nephew, because we're related, because we're friends, I want to support you in your business endeavor by paying you in full.

00:05:28.867 --> 00:05:32.822
It's a complete mindset shift and not enough people have that.

00:05:32.822 --> 00:05:34.064
What are your feelings on that?

00:05:34.906 --> 00:05:43.584
A thousand percent true, and the reason why I feel like that is one I've been the person who supported businesses and I've also been the one that's been asked to support others.

00:05:44.286 --> 00:05:46.642
And I can explain both scenarios and how they make you feel.

00:05:46.642 --> 00:05:56.091
So if this person is your friend and you trust them, your goal is to say do I believe this person is out to just try and take my money?

00:05:56.091 --> 00:06:04.427
If you believe that they're the kind of person that's just out to take undue funds, are they really a good friend for you to have in your corner?

00:06:04.427 --> 00:06:17.144
And if they're not, if they're not the kind of person that's just trying to mark up their price and charge a premium, are you a friend for asking them to lower their price so they don't make even a fair profitable value?

00:06:17.144 --> 00:06:24.545
At the very least, do you think it's reasonable that most businesses should be expected to make a fair profit?

00:06:26.839 --> 00:06:27.240
Yes, definitely.

00:06:27.240 --> 00:06:36.218
Go back to the statistics and let's recognize for a moment that, again, 80% of all small businesses fail in the first three years.

00:06:36.218 --> 00:06:43.764
Correct, that means we don't need more giveaways, we need more profits, we need more full-paying customers.

00:06:44.464 --> 00:06:44.826
Correct.

00:06:44.826 --> 00:06:47.973
So there's a lot of individual things we need to focus on here.

00:06:47.973 --> 00:06:56.163
So first, once again remembering and saying who is the person that I'm working for.

00:06:56.163 --> 00:06:57.605
Are they truly a friend or are they an acquaintance?

00:06:57.605 --> 00:07:03.903
Now I have a very unusual approach to this, because I have a different kind of relationship with my family.

00:07:03.903 --> 00:07:21.021
I don't feel like biological blood determines who your real family is, because I remember I had experiences where I'm estranged from my brother and I remember trying to open the door for him for a moment and just be like you know what, man, let's put it down, let's bury the hatchet.

00:07:21.021 --> 00:07:26.509
And his first answer was well, now that we're good, you cool coming to my home and changing out some breakers.

00:07:26.509 --> 00:07:33.629
The very first thing that he said was like oh well, now that we're good, you can come do some lights work for me for free, right?

00:07:34.531 --> 00:07:34.891
Oh yeah.

00:07:35.540 --> 00:07:38.206
Yeah, so that relationship didn't last out that very long.

00:07:38.206 --> 00:07:47.367
On the other side of the coin, I have sold to family members where they did believe in what we were doing, they did want to support us and they didn't pose a lot of issues.

00:07:47.367 --> 00:07:53.949
So I'd like to go through the different scenarios of one how to identify who the right kind of family member is to work with.

00:07:53.949 --> 00:07:58.247
And then two, how can we qualify working with them.

00:07:58.247 --> 00:08:05.264
And then three, what can we do to support them with options and what is the ethical boundaries that we need to maintain.

00:08:06.024 --> 00:08:06.826
Sounds like a fun lesson.

00:08:06.826 --> 00:08:07.687
Yeah, yeah.

00:08:07.687 --> 00:08:16.572
So it sounds like already that you're siding with and siding for working with friends and family under the right conditions.

00:08:17.279 --> 00:08:17.620
Correct.

00:08:17.620 --> 00:08:28.348
So the reason of it is this every single one of us ideally at least I know you personally and me personally we didn't get into electric as a get rich quick scheme.

00:08:28.348 --> 00:08:32.302
We got in because this is what the trade we knew.

00:08:32.302 --> 00:08:39.928
We knew that it was the way that we could provide for our families and a lot of us just feel a great level of satisfaction when we're done with an install.

00:08:39.928 --> 00:08:56.086
I know when I left a home and that panel was perfect and every individual wire was parallel and it's labeled and it's perfect, it felt good and that dopamine rush carried me through the day, and especially when the customer would praise you and love it.

00:08:56.086 --> 00:08:58.131
That's why most of us got into this.

00:08:58.131 --> 00:09:08.091
So when people look at us like, oh, you're just out to get money, that in and of itself shows that they don't understand what we're really trying to focus behind and go ahead.

00:09:08.091 --> 00:09:08.732
You got a question there.

00:09:10.121 --> 00:09:11.083
I just want to pump this in.

00:09:11.083 --> 00:09:13.368
That's why most of us got into this.

00:09:13.368 --> 00:09:23.812
But even if that's not why you got into this, that's what gives us staying power, because money just will not continue to fulfill us.

00:09:23.812 --> 00:09:24.955
There's no way.

00:09:24.955 --> 00:09:33.466
At some point you realize, hey, I was doing this for money, but I'm fucking miserable, I don't like what I'm doing because I'm focused on the wrong thing.

00:09:33.466 --> 00:09:42.785
If you focus on the money, you will not connect to the owners, family or friends or anyone that you're trying to serve, and thus you'll fall short in the end.

00:09:43.769 --> 00:09:46.980
Exactly so.

00:09:46.980 --> 00:09:57.947
The thing, then, we need to focus on is this Now that we know who the right person is to work with in that, are they here to truly support our business or are they trying to get a favor?

00:09:57.947 --> 00:10:00.140
And there's a couple of ways you can ask that.

00:10:00.140 --> 00:10:04.881
You can simply ask, be like well, I'd be honored to help you with this, if you don't mind me asking.

00:10:04.881 --> 00:10:06.948
There were so many other electrical companies you could have called.

00:10:07.360 --> 00:10:08.423
Why did you choose to call us?

00:10:08.423 --> 00:10:25.836
That's simple there, because the thing is is that you'll find out very quickly their motivating reason, because when you're working with the average customer, they're usually trying to mince words or trying to say things you know tried, taxfully or subtly.

00:10:25.836 --> 00:10:30.971
They're trying to tell you what they're thinking, but when you're working with family, they're like this is why it is.

00:10:30.971 --> 00:10:34.225
You mean, you're an electrician, you're in the family, like who, who else would I be using?

00:10:34.225 --> 00:10:39.865
I mean, of course, you're going to give us the best deal, and now we know the motivating reason why they're calling us.

00:10:39.865 --> 00:10:53.269
So if you find someone that is saying well, you know what, joe, you're in the family and I want to make sure I gave you the business that's good, then we're going to treat them as if we would treat no other customer.

00:10:53.269 --> 00:11:00.942
Every customer is going to be treated at that level because we want to provide that white glove, top tier, premium level of service, no matter who it is.

00:11:00.942 --> 00:11:03.770
If they've called us, they should experience that service.

00:11:03.770 --> 00:11:07.250
So if they're that kind of category, great, no harm, no foul.

00:11:08.541 --> 00:11:13.904
On the other side of the coin, let's say someone says well, I mean, I know you're in the family, therefore you'll give me the best deal.

00:11:13.904 --> 00:11:16.967
That's where you want to start asking questions.

00:11:16.967 --> 00:11:23.250
So it might sound something like well, clay, I really really appreciate that you'd consider me and you know what we are.

00:11:23.250 --> 00:11:25.355
I really really appreciate that you'd consider me and you know what you know we are family.

00:11:25.355 --> 00:11:26.918
It does make sense that we take care of each other.

00:11:26.918 --> 00:11:35.264
But can I ask you a question, of course Now, is this something that you're asking me to do personally, or is it that you're asking my company to do it for you?

00:11:35.264 --> 00:11:37.552
Why do you think that's such an important question to ask?

00:11:39.306 --> 00:11:48.839
Well, I think it begins to separate that favor feeling of the personal, the person, and the sustainability of a company.

00:11:49.779 --> 00:11:57.553
Correct and now, based on what they say, they also now have a second direction, because the goal is we want to get them to client one.

00:11:57.553 --> 00:12:01.154
I want to use you because I want to support your business, because I love you.

00:12:01.154 --> 00:12:03.009
That's what you want to do.

00:12:03.009 --> 00:12:04.013
You want that person.

00:12:04.013 --> 00:12:09.216
So you're giving them a second chance to determine what side of the line they're on.

00:12:09.216 --> 00:12:11.231
Are you looking for me to do it personally?

00:12:11.231 --> 00:12:12.971
Are you looking for my company to take care of it?

00:12:12.971 --> 00:12:15.408
They say, well, I want the company to take care of it.

00:12:15.408 --> 00:12:17.631
I mean I'm not asking you to side job this.

00:12:17.631 --> 00:12:20.136
Great, okay, now they're qualified A.

00:12:20.136 --> 00:12:26.009
But if they're like, well, I mean it's your company.

00:12:26.009 --> 00:12:27.395
So I figured you know you're going to come and help me out or they.

00:12:27.395 --> 00:12:31.006
You know it's not your company and they're like, well, I mean I'm not looking to pay company rate.

00:12:31.006 --> 00:12:32.089
That's why I figured I'd go with you.

00:12:33.350 --> 00:12:37.115
Now you're going to do acknowledge, reframe and ask again.

00:12:37.115 --> 00:12:40.960
We want to thank them for their transparency.

00:12:40.960 --> 00:12:47.226
We never want to come across as angry.

00:12:47.226 --> 00:12:49.350
If we come across as angry in that response, thanksgiving dinner is going to be a little awkward.

00:12:49.350 --> 00:12:50.552
You wouldn't believe what Joe said.

00:12:50.552 --> 00:12:54.119
He wouldn't come and help out grandpa and it's like no, we don't want that either.

00:12:54.119 --> 00:12:56.379
So we want to let them know and be like Clay.

00:12:56.379 --> 00:13:01.280
Thank you so much for not only being able to call me, but being so transparent with me.

00:13:01.280 --> 00:13:04.962
That's what makes family so important the fact that we can clearly communicate with each other.

00:13:04.962 --> 00:13:11.571
If you don't mind, can I equally speak freely with you, of course, getting them an opportunity to let them know back?

00:13:11.591 --> 00:13:12.274
Yeah, what's going on.

00:13:12.274 --> 00:13:24.966
Be like well, the reason why I asked if you wanted me to personally do it or whether you wanted the company to do it is because there's going to be a very big difference, not just in price, but in the level of quality, service and comfort you're going to receive from it.

00:13:24.966 --> 00:13:31.327
If you're looking to have me do it personally, I'm sure I could do a great rate.

00:13:31.327 --> 00:13:40.976
But the concern is that we're not going to be able to have a license on it, because the license goes through the company, which means there's going to be no permit and there's going to be no inspection.

00:13:40.976 --> 00:13:53.751
As a result, there really wouldn't be any warranty either, because if I can't permit this and I can't license this and it's not insured, how can I warranty it Then?

00:13:53.812 --> 00:13:56.418
In addition to that I mean you know what's going on in my life.

00:13:56.418 --> 00:14:00.051
I mean I've got two kids that I'm trying to raise and maintaining a new home.

00:14:00.051 --> 00:14:01.552
I'm running a business full time.

00:14:01.552 --> 00:14:06.932
I'm going to help you, but it's going to have to be a time when I'm conveniently able to do so.

00:14:06.932 --> 00:14:10.587
So, just so we're on the same page, you're not looking to do this anytime soon, right?

00:14:10.587 --> 00:14:14.336
What do you think that's communicating to the client?

00:14:16.664 --> 00:14:24.110
Well, a number of things for sure, but right off the bat, I'm starting to feel like this is doing a disservice to both of us.

00:14:24.110 --> 00:14:34.356
I mean trying to wedge myself into your busy schedule and then falling short of all the quality framework that you have in place.

00:14:35.096 --> 00:14:39.940
So now you have the justification to explain why going with the company is better.

00:14:39.940 --> 00:14:42.162
Be like Clay.

00:14:42.162 --> 00:14:48.596
I understand you're a busy person and I know you're not looking to wait six months to get this taken care of, because that's when I'd personally be free.

00:14:48.596 --> 00:14:50.751
I mean, you know what it's like when you've got two kids.

00:14:50.751 --> 00:14:55.715
My weekends are booked forever and it's not like I could take time off of work to do side jobs.

00:14:55.715 --> 00:14:57.128
That wouldn't make sense either.

00:14:57.128 --> 00:15:01.216
So that's why we designed the company the way we did.

00:15:01.216 --> 00:15:15.068
We agreed that, no matter what we were going to do, every customer we work with gets absolute white glove experience, turnkey service, an ironclad warranty, and is done in a timeframe that they feel is reasonable.

00:15:15.068 --> 00:15:24.118
With that being said, obviously it's going to be more of an investment than getting someone to side job it, but I can guarantee your level of satisfaction if we go that route.

00:15:24.118 --> 00:15:26.530
Would I be wrong to suggest we do that?

00:15:26.530 --> 00:15:28.076
Not at all.

00:15:29.304 --> 00:15:31.972
So we've created a divide, right?

00:15:31.972 --> 00:15:35.736
So imagine this I'm going to take, as you mentioned, the 30,000-foot view.

00:15:36.219 --> 00:15:36.360
Yeah.

00:15:37.066 --> 00:15:43.889
The first was are you the client that's looking for side job, or are you looking for company?

00:15:43.889 --> 00:15:47.057
I'm looking for company Great, no issues, we don't have to do anything further.

00:15:47.057 --> 00:15:51.774
I'm looking for a side job Okay, now we go into a second category.

00:15:51.774 --> 00:15:55.932
Are you looking for me to do it personally, or are you looking for the company to do it?

00:15:55.932 --> 00:15:57.215
You want the company to do it?

00:15:57.215 --> 00:15:59.628
Okay, great, we move on like a standard customer.

00:15:59.628 --> 00:16:00.970
They want you to do it?

00:16:00.970 --> 00:16:03.014
Now we've gone into this description.

00:16:03.014 --> 00:16:11.378
Now we've described the things of I can do this and I probably can do it at a less cost.

00:16:11.378 --> 00:16:32.881
But the reason why is because there won't be a warranty, there won't be an insurance, there won't be a license, there wouldn't be a permit, there's not going to be an inspection and it's going to be on my timeframe of when I'm free, which means I can't give up time with my family, and I can't give up time off work, because who would take time off of work to side job?

00:16:33.601 --> 00:16:44.068
Yeah, so I'm available, but it's like way out there.

00:16:44.068 --> 00:16:44.932
Is that something you're comfortable with?

00:16:44.932 --> 00:16:45.554
If they're not, sorry, go ahead.

00:16:45.554 --> 00:16:46.899
I was just going to say as your friend or family member, no, I'm not.

00:16:46.899 --> 00:16:52.894
And the path of least resistance is now taking hold and I'm still in recognition that you are still my best option.

00:16:52.894 --> 00:17:00.421
Correct going with someone else is a whole other effort and sacrifice, plus the lack of trust, the no like and trust.

00:17:00.421 --> 00:17:01.969
I mean you got to build all that up.

00:17:02.389 --> 00:17:18.453
You're still at an advantage to do business with you, or I'm still at an advantage to do business with you exactly and the situation comes down to then you either say this is what it takes for me to do it, and this is why we made the company the way we did.

00:17:18.453 --> 00:17:37.093
We recognize that that level of service isn't good, which is why we're making this the normal way we operate business, where you get a warranty, you get turnkey service, it's white glove the entire way, highest levels of comfort and convenience, and it's done on a timeframe you feel is fair.

00:17:37.093 --> 00:17:40.340
Was I wrong to suggest we do it that way?

00:17:41.743 --> 00:17:42.065
Not at all.

00:17:42.065 --> 00:17:42.928
Do you want to hear?

00:17:43.068 --> 00:17:44.292
no, it wasn't wrong.

00:17:45.686 --> 00:18:03.739
Yeah and I just want to put this out there that this may be one of the biggest value podcasts put out, because every single person listening to this right now has and was, has and will be really past, present and future is what I'm going for here.

00:18:03.739 --> 00:18:22.510
Presented these problems with friends and family that want work done, and if you can pivot and turn this into high paying clients or keep those pains in the ass off your schedule which again we've identified that there's still gravity towards them hiring you, you're still the best bet.

00:18:22.510 --> 00:18:31.657
But I do want to back this up 30,000 foot view a bit more, because we did come in with an assumption, and I think this little spin is going to help us with the action items today too.

00:18:31.657 --> 00:18:38.295
That assumption is that we recognize the detriment of working with family and friends at a discounted rate.

00:18:38.295 --> 00:18:54.920
So let's back it up a bit more and just say, if you're not at this point yet and you're feeling like, hey, my friends and family in that discounted rate, that's work on the schedule and that's an opportunity, then we do need to acknowledge that there's danger in that water.

00:18:56.305 --> 00:19:01.698
We do need to acknowledge that discounting is a very difficult place to then come back from.

00:19:01.698 --> 00:19:06.653
It sacrifices profitability in more ways than you likely understand.

00:19:06.653 --> 00:19:14.791
So the best thing to do for discounts and for charity work is to actually call it what it is charity work.

00:19:14.791 --> 00:19:17.817
Okay, so it can be done.

00:19:17.817 --> 00:19:26.730
Guys and gals, If you're listening to this, you can do charity work, but, just like Joseph said, the way we built this business, the way we plan this business right.

00:19:26.730 --> 00:19:41.486
So assuming there's a plan means I want to see on your budget for the year how many charity jobs or what value of charity work you're actually going to do for the year, and then I want you to stick to that, because that's something you build into your pricing.

00:19:41.486 --> 00:19:51.648
That's something that's on the backs of all the shareholders of your company, all the stakeholders, which includes your clients, your staff, yourself and your salary.

00:19:53.934 --> 00:19:55.238
Is that an important understanding?

00:19:55.238 --> 00:19:59.948
I think that is absolutely crucial and it ties in perfectly with what I was thinking about talking about.

00:19:59.948 --> 00:20:05.493
Next Awesome, where some people say should I offer options to my family members?

00:20:05.493 --> 00:20:09.986
They're like well, I mean, sometimes they don't want to hear this, they just want the.

00:20:09.986 --> 00:20:12.330
No, they don't.

00:20:12.330 --> 00:20:19.233
You don't know how they want to spend their money, you don't know how they live in their home, you don't know what emotional problem they're trying to fix.

00:20:19.233 --> 00:20:26.786
And I'm going to tell you from firsthand experience in three different categories, exactly why we do the things we do.

00:20:27.808 --> 00:20:32.968
So my best friend in the world, lovely guy to death, I've known him since fifth grade.

00:20:32.968 --> 00:20:35.574
He trusted me with his grandmother.

00:20:35.574 --> 00:20:40.211
He said little old Mrs Jones, she needed help Right now.

00:20:40.211 --> 00:20:41.674
There was an issue with her generator.

00:20:41.674 --> 00:20:42.537
She wanted a generator.

00:20:42.537 --> 00:20:44.186
She did, and you know what.

00:20:44.186 --> 00:20:46.431
Who better to serve them than me?

00:20:46.431 --> 00:20:46.832
Right?

00:20:47.993 --> 00:20:52.568
So I went out and met with her and by asking, like, what are you really trying to accomplish?

00:20:52.568 --> 00:20:55.938
She had in her mind that she wanted a manual generator.

00:20:55.938 --> 00:21:01.657
That's the 90 year old woman with arthritis and she's saying I want a portable generator.

00:21:01.657 --> 00:21:07.188
Would it be in your customer's best interest to just agree with them and say your family is what you want?

00:21:07.188 --> 00:21:10.376
No, no, it wouldn't be.

00:21:11.164 --> 00:21:18.709
So what we ended up doing was we ended up having a transitional period where I told her I was like, listen, you already have a portable.

00:21:18.709 --> 00:21:22.538
If that's truly what you want, then this is what we can do.

00:21:22.538 --> 00:21:28.218
But would you be upset if I told you ways that would require you to not have to leave your home?

00:21:28.218 --> 00:21:39.054
And, as a result, she had never even thought of an automatic and she had the money to afford it and the peace of mind of knowing she never had to stress about it was taken care of.

00:21:39.054 --> 00:21:40.416
It just wasn't an issue.

00:21:40.416 --> 00:21:42.788
And I told her I was like you know what?

00:21:42.788 --> 00:21:48.730
I'll, even for me as assigned to you being my best friend's grandmother, I'll maintain it for free.

00:21:48.730 --> 00:21:49.873
I'll come by.

00:21:49.873 --> 00:21:51.255
All I ask is that you make a cake.

00:21:51.255 --> 00:21:54.166
When I do so Every year, I expect she makes an amazing rum cake.

00:21:54.166 --> 00:21:55.692
So I was like, just make a rum cake.

00:21:55.811 --> 00:21:59.651
I'll come maintain the system for free, but you're paying full price for the installation and everything.

00:21:59.651 --> 00:22:01.175
And she was great with it.

00:22:01.175 --> 00:22:03.567
She picked, actually, I think, our second option.

00:22:03.567 --> 00:22:06.893
It was the silver option or gold option, nice, nice.

00:22:06.893 --> 00:22:21.828
Second thing, and she thing is, is that if I didn't do that, what would have ended up happening was she would have purchased a system that would not have been in the best interest of her because her family was insisting that she gets a portable, because she didn't want they didn't want her spending the money.

00:22:22.991 --> 00:22:34.160
Yeah, I had other circumstances where I've sold generators to both my biological parents as well as the biological aunts and uncles, and the thing is, in both situations I offered options.

00:22:34.160 --> 00:22:42.669
The reason being is not because I'm trying to sell them more, but specifically because I never want them to feel like I'm boxing them one way or the other.

00:22:42.669 --> 00:22:48.952
I want them to say that's the choice I want and then be like why?

00:22:48.952 --> 00:22:50.419
Why that one?

00:22:50.419 --> 00:22:54.334
Tell me specifically because I want to make sure that you're comfortable with what we're doing.

00:22:54.334 --> 00:22:56.592
I like it because of what it's doing.

00:22:56.592 --> 00:22:58.460
I don't need the whole home.

00:22:58.460 --> 00:23:00.832
I like that you're doing all the gas connections.

00:23:00.832 --> 00:23:03.022
I like you're doing all the permits and the inspections.

00:23:03.143 --> 00:23:06.227
It sounds like a turnkey project, great.

00:23:06.227 --> 00:23:12.971
And then when you sign them up with the best financing options you have now you're truly providing a family service.

00:23:12.971 --> 00:23:18.673
I'm doing everything, you are doing nothing, and once again, clay.

00:23:18.673 --> 00:23:21.115
If you want to mention throwing in charities, you can.

00:23:21.115 --> 00:23:26.377
You can gift years of service, you can say you know what.

00:23:26.377 --> 00:23:30.820
We're going to give you a first class membership on us because you're family, you can do those things.

00:23:30.820 --> 00:23:32.301
That's totally viable.

00:23:32.301 --> 00:23:36.894
But you have to make sure that you're listing it on your items as charity.

00:23:36.894 --> 00:23:40.607
That way it could be taken off your line item and you don't have to get taxed on it.

00:23:41.672 --> 00:23:44.884
Yeah, yeah, I agree, and here might be another way to spend it.

00:23:44.884 --> 00:23:49.695
You tell me if you agree, if you know that it's an opportunity, call like adding a generator to spend it.

00:23:49.695 --> 00:23:51.719
You tell me, if you agree, if you know that it's an opportunity, call like adding a generator.

00:23:51.719 --> 00:23:52.540
Then you have that opportunity.

00:23:52.540 --> 00:24:09.917
When they, when they're deciding, hey, it's personal or it's company and of course now we're we're gravitating towards the company if you have staff that would be running that call for you and you're the business owner and they're approaching you, then you could offer the assurance that, hey, in in our program we do a two-call close.

00:24:09.917 --> 00:24:31.451
Of course they don't call it the close right, but you can go back and listen to that episode and you can assure them that, after the person's done investigating their home and helping them make the decisions, that you'll be the one to come back, you'll be the one to sharpen the pencil and make sure that they're getting the fairest price available and you'll personally come back and present those options with them and help them decide.

00:24:32.291 --> 00:24:36.115
That's one way to win without ever sacrificing any price, really.

00:24:36.974 --> 00:24:53.075
And that's the best part about it, because, at the end of the day, they need to know that you want a personal relationship with them, but that you're also representing a professional business and that, yeah, I can help you, but I'm not going to do things where it's going to hurt both of us.

00:24:53.075 --> 00:24:55.612
We're only going to move forward if this is a win-win.

00:24:55.612 --> 00:25:00.174
If you're winning and I'm losing, I'm going to resent you.

00:25:00.174 --> 00:25:03.855
If I'm winning and you're losing, you're going to resent me.

00:25:03.855 --> 00:25:05.871
So let's do this the right way.

00:25:06.244 --> 00:25:10.476
I'm going to create a range of choices, from the finest money you can buy to the most bare bones you can do.

00:25:10.476 --> 00:25:25.834
If you choose to go with the company, you'll have a warranty, you'll have a service agreement, you'll have a permit, you'll have an inspection, you'll have a license behind it, you'll have the 24-7 service or the after-hour service all the benefits of being a customer you get.

00:25:25.834 --> 00:25:45.415
And if you want to strengthen this even further, you can say and the reason you're getting those services is because you're an official client, because if you decided to sign job it, you would have to go at the end of the line behind all our full paying clients, despite being family or otherwise.

00:25:46.339 --> 00:25:49.211
Yeah, it does make sense, no one wants to go to the end of the line right.

00:25:49.964 --> 00:26:08.730
Why work so hard to build this beautiful premium service provider business and then, just like we talked about yesterday, our shortcuts are so bad, and then go and take a shortcut because someone's friend and family, leaving them short-ended, short-changed on the value and leaving you short-changed on the currency, makes no sense?

00:26:08.730 --> 00:26:13.612
I'm also reminded, as you talk about options and presenting, of my favorite kind of books.

00:26:13.612 --> 00:26:16.266
When I was a kid, you ever read those.

00:26:16.266 --> 00:26:18.229
Choose your own ending books.

00:26:18.589 --> 00:26:22.156
Oh my God, rl Stine for the win yeah.

00:26:22.657 --> 00:26:23.965
You still love those books.

00:26:24.307 --> 00:26:26.853
You're dating my 90s scholastic book fair knowledge.

00:26:26.853 --> 00:26:27.795
Right there we go.

00:26:27.935 --> 00:26:28.656
Yeah, there we go.

00:26:28.656 --> 00:26:32.172
Dating my 90s scholastic book fair knowledge.

00:26:32.192 --> 00:26:32.553
right, there we go.

00:26:32.553 --> 00:26:33.174
Yeah, there we go.

00:26:33.174 --> 00:26:34.219
Why did we love those books so much?

00:26:34.219 --> 00:26:38.090
Because it felt like we had control, and even though I would read it, I would always just be like, oh, skip to this.

00:26:38.090 --> 00:26:38.893
Was this the right choice?

00:26:38.893 --> 00:26:40.105
Was that the right choice?

00:26:40.105 --> 00:26:41.167
Was this the right choice?

00:26:42.490 --> 00:26:42.832
All right.

00:26:42.832 --> 00:26:45.517
So you get the parallel there.

00:26:45.517 --> 00:26:46.605
I mean, it's so important.

00:26:46.605 --> 00:26:49.051
That's why options are so great.

00:26:49.051 --> 00:26:53.411
Many people are stuck on the three options, or maybe just trying to get to two.

00:26:53.411 --> 00:26:56.366
We know already that one choice is no choice at all.

00:26:56.366 --> 00:26:57.951
I think we can all agree on that.

00:26:57.951 --> 00:27:01.590
Don't give your clients ultimatums or you'll end up with very few clients.

00:27:01.590 --> 00:27:03.477
People don't like ultimatums.

00:27:03.477 --> 00:27:07.690
But imagine if you had a choice between these two books choose your endings.

00:27:07.690 --> 00:27:10.217
Would you choose three, or would you choose maybe six?

00:27:10.217 --> 00:27:13.333
I'd want to know where the other three would be.

00:27:13.333 --> 00:27:15.993
I'd want to know that there were some other choices.

00:27:15.993 --> 00:27:18.192
So I agree with you wholeheartedly there.

00:27:18.192 --> 00:27:20.613
What are we going to do for actions then, today?

00:27:21.645 --> 00:27:26.698
So action, the bare minimum I want to say is actually a mental exercise.

00:27:27.445 --> 00:27:34.839
Because, the bare minimum is that a customer is a customer no matter how they approach you, especially if they're family.

00:27:34.839 --> 00:27:42.076
You need to mentally assign yourself and say if family were to call me today, how would I be feeling?

00:27:42.076 --> 00:27:50.574
That means I want you to take a step back, close your eyes and imagine your phone rings right now and a family member were to call and ask you for service.

00:27:50.574 --> 00:27:53.292
What is your default response?

00:27:53.292 --> 00:27:54.790
What would you normally be telling them?

00:27:54.790 --> 00:28:04.998
The reason why I want you to do that exercise is that if you don't know what your knee-jerk reaction is, you won't know how to properly overcome it, to respond to the situation instead.

00:28:04.998 --> 00:28:08.574
So I'm first asking you know thyself.

00:28:08.574 --> 00:28:10.529
Know what you would have done.

00:28:10.529 --> 00:28:13.470
That way you can figure out the corrective efforts going forward.

00:28:14.511 --> 00:28:31.910
And I'm going to give that a plus sign because I know All-Star is going to level it up Know thy company, know thy company culture, know thy company plan, not to overwhelm you, but knowing yourself and knowing your business in this regard are very much the same and they both need to have a plan.

00:28:31.910 --> 00:28:34.777
So, again, just going to tie that charity piece in there.

00:28:34.777 --> 00:28:39.394
Don't give it away if it's not already on a spreadsheet and part of the plan.

00:28:39.394 --> 00:28:44.073
Otherwise you're doing yourself and your future self a major disservice.

00:28:44.073 --> 00:28:46.478
All-star pumped, what do we got?

00:28:47.345 --> 00:28:55.199
All-star action is actually a two-part thing, because I feel like there's an all-star action but it requires a prerequisite, right?

00:28:55.199 --> 00:28:57.368
So we keep talking about charity.

00:28:57.368 --> 00:29:04.393
Every one of our businesses has done jobs at low cost, whether it's pro bono or whether it's a discount.

00:29:04.393 --> 00:29:05.836
We've all experienced that.

00:29:05.836 --> 00:29:19.511
My question for you as an all-star is do you know how many charities and the financial amount of the charity stops becoming a benefit to your business as a write-off and starts becoming a hindrance?

00:29:19.511 --> 00:29:28.334
Do you know an X amount that you've accounted for in your budget that says I can give away this without it affecting the margins?

00:29:28.334 --> 00:29:34.935
If you don't know that, you don't know whether you can even do this job for free or discounted.

00:29:34.935 --> 00:29:39.255
So the very first is know where your items are.

00:29:40.558 --> 00:29:52.688
The second thing and this might sound a little bit messed up is just because you're biologically connected to someone does not mean that you are obligated to financially compensate them for that.

00:29:52.688 --> 00:30:00.289
You are not obligated to do work for anyone at a discount that you don't want to give them.

00:30:00.289 --> 00:30:13.807
The reason why I say that is remember, I came from a very unusual family where familia es puto family is everything, and the concept is because there's a biological connection.

00:30:13.807 --> 00:30:18.087
That biological connection is rock solid and you have to do everything you can to maintain it.

00:30:18.087 --> 00:30:20.712
I don't think that's fair.

00:30:21.575 --> 00:30:28.518
Personally, I think that you should have your own personal judge on what is your family and what is not.

00:30:28.518 --> 00:30:34.693
And when you've established who is your family and who is not, you'll start to establish what parameters are acceptable.

00:30:34.693 --> 00:30:41.897
Like you have your closest friend in the world, known him for 25 years, would this person get a discount?

00:30:41.897 --> 00:30:45.049
I can't blame you if you did I really wouldn't.

00:30:45.049 --> 00:30:56.608
But if your cousin, who calls you, who never sees you except on holidays, never reaches out to you for anything, but then asks you for a generator system, why should that person get a discount?

00:30:56.608 --> 00:31:07.208
So understanding where those lines are drawn will not only help you in business, but it'll also start to break apart the trauma that you didn't even realize you had.

00:31:08.632 --> 00:31:20.756
Yeah, I love that I do, and, as we've said before, I just want to really hammer this home again and again and again Discounting does not mean more satisfaction.

00:31:20.756 --> 00:31:28.518
Quite often it's the opposite, because discounting means you're going to give less value as well.

00:31:28.518 --> 00:31:34.397
Very rarely is there a situation where you're going to cut the price tag and not cut the value.

00:31:34.397 --> 00:31:37.573
That's just an organic and intuitive thing.

00:31:37.573 --> 00:31:48.775
That happens Way rather value stack and hammer home a great review from a family or friend, repeat jobs referrals from family or friends.

00:31:48.775 --> 00:31:52.347
Imagine if you mastered this, just like anything else.

00:31:52.347 --> 00:32:06.913
This is like a little niche, because there's a lot of power in your network, and if you can turn those close contacts into good paying customers that are equally as happy, imagine how much more powerful your business could be.

00:32:08.095 --> 00:32:10.118
It'd be next level, really would be.

00:32:10.118 --> 00:32:13.509
And, clay, I think you did a great job dropping it up on the all-star action.

00:32:14.192 --> 00:32:14.954
All right, perfect.

00:32:14.954 --> 00:32:19.615
So, guys, this has been another Entrepreneur Secrets Electrician Podcast.

00:32:19.615 --> 00:32:25.605
We're here with you five days a week to help you master sales, simplify pricing and deliver premium level service.

00:32:25.605 --> 00:32:28.468
Thank you so much for all your counsel and help today.

00:32:28.468 --> 00:32:32.230
Joseph, I know that you just gave some people some rockstar value here.

00:32:32.230 --> 00:32:36.426
Guys, go ahead, take this out there, try it out, follow your play.

00:32:36.426 --> 00:32:43.067
Do not give family and friends deals, and if you do, make sure it's accounted for.

00:32:43.067 --> 00:32:44.853
Cheers to your success.

00:32:45.694 --> 00:32:46.277
Take care all.