113. The 2023 Recap With Russ & Andy

What we've seen with the clients that we're working with on a private level, we've seen the vast majority of these guys have record years, but it's all because it wasn't a fluke, you know, it's all because of what they've been doing in the. In the prior couple of years, really. In preparation.

Yeah. It, it took them five years to become overnight successes.

Welcome to Professional Builder Secrets, the podcast for building company owners wanting to grow safely and securely. I'm your host, Will Blunt, and today I'm joined by our head coach, Andy Scarter. Andy, welcome to the show.

Thank you for having me back, Will. I wasn't sure I was going to get here again. Thank you.

Very good to have you. And we've also got Russ Stevens, our co founder. Russ, welcome to the show.

Thanks, Will. Good to see you again.

You too. You too. So I'm really excited about this episode because we're reflecting back on 2023. It's been an enormous year for the association of Professional Builders and all of our. And it's nice to just reflect back on some of the great milestones that we've seen over the year. So, Andy, why don't you kickstart by talking about the state of the industry?

Well, I think it's been a particularly difficult one for most builders. If I think about what we've seen over the globe, really very similar picture everywhere. Inflation is playing a big part post pandemic, interest rate increases because of inflation, sales getting more difficult. So it's, it's one of those sort of bittersweet things of the pandemic kind of created a bubble that wasn't real and now the pendulum has swung back to kind of reality. So, you know, unfortunately, what that's done is it's exposed some things that were being covered up by the unnatural situation that we had with, with the pandemic. Those things have now become glaringly obvious. And on the negative side, obviously those are, you know, we've seen a fair number of failures, particularly in the project building side of things, the bigger guys. And it's, it's really got a lot of builders looking very hard at their processes and their systems to make sure that they're actually able to deal with the current reality. So that's, that might sound neutral to negative. I need to balance that probably by saying we've also seen some of the most fantastic growth and development, both in clients, in size of their business, in margins, in their sales pipelines. So it's a bittersweet, you Know, the guys that are applying the correct protocols the right way are seeing the results. And as I say, it's putting some pressure on the guys that are not yet where they need to be. That, that would probably be my summary.

Yeah, I think at the beginning of the year we saw some big changes, didn't we, when the, the leads started drying up. Yeah, they were, they were cooling off and that was the early warning signal. We, we knew it was going to happen. Yeah, we had this, like Andy said, we had this artificial boom. This was engineered. There was nothing normal about it at all. And it presented its own problems with rising prices. So I guess we got to balance the downside with the, with the positives and look at, well, hey, prices are not rising. We are certainly in construction and not rising as fast as they were. And the big benefit of that is we're getting back to a situation where builders can sign a contract and they, they can lock in their orders and effectively lock in the pricing at the same time. Now, a lot of that did go out the window when, when we had this crazy boom, but yeah, we're getting back to suppliers and subcontractors honoring prices. So that's, that's, I think that's a big, big plus. But yeah, it started off early in the year, didn't it, with those, with those leads slowing down. And we knew what was going to happen next. You know, it was the sales funnel, people hesitating, all those dead certs, you know, all those. Yeah, I, I signed 90% of the people that signed a prelim I, A contract, you know, even 120%, we hear some people saying. But yeah, the reality is, you know, you always want to be about 50% because when situations like this occur, it puts you in a much stronger position because, you know, you already expecting to, to drop half of them. But that's kind of what we've seen. And we, clients can't, you know, are, are struggling to get finance and the confidence has gone out of a lot of people as well. They just want to wait and see. And when that happens, the builders that don't have a strong marketing pipeline, these are the ones that are now hurting. But like Andy said, what we've seen with the clients that we're working with on a private level, we've seen the vast majority of these guys have record years. But it's all because it wasn't a fluke. You know, it's all because of what they've been doing in the, in the prior couple of years. Really, in Preparation.

Yeah. It took them five years to become overnight successes.

Yeah, Classic.

Yeah. And I mean, Russ, you touched on the supply chain stuff. I think that's a big. That's a big plus of this year is that not only has it stabilized, but I think in most countries that we're reliant on offshore suppliers of basic building materials. I think there's been a huge shift to finding local alternatives and developing, you know, some of those things locally, which we would not have seen if we hadn't gone through the hardships that we have. So, you know, even on that side, there's a much more consistent supply chain scenario. I know certainly the guys that we're working with in, in our, in our private levels, they are starting to see sub trades calling them for work because, you know, things are cooling down generally out there. And, and that always puts a builder back in the driving seat, which I think is where he should be. You know, we shouldn't be in a place where the tail is wagging the dog, which I think is what we've seen over the last couple of years. So that's another positive in terms of that pendulum coming back to where it should be.

Yeah. And let's reiterate here, builders make more money in a declining market than a booming market. You know, the perception is, you know, things are booming and this is what the public think, isn't it? I get asked this, you know, all the time, like, why, why the builders falling over? Why builders struggling? You know, they've been so busy. It's, you know, there's so much demand. You know, they're all making a fortune, is the perception. But, you know, as we know, yeah, builders are on fixed price contracts. Their, their costs are rising. Even their fixed expenses are now rising with. And they're capped on their selling price. They've got nowhere to go on that in the vast majority of cases. So that's not a good situation for builders. But when you're in a declining market, a cooling market, now there's an opportunity, especially with subcontractors, like you say, reaching out and offering their services. Now we've got an opportunity to renegotiate. We've got an opportunity to bring in more competition. Obviously, we've got to balance that and support the guys that have supported our businesses through the tough times. We don't want to overlook that at all. But nonetheless, there, there have been a lot of instances of both suppliers and subcontractors taking advantage of the situation as well. So the, the balance of power has swung back in favor of the builder in that respect.

I think we've got a really unique vantage point in apb. I've noticed it myself. If you are outside the industry and just looking at what the media is talking about, it creates this very scary perception of construction and residential construction. But I hear all these great stories about our customers that you talk about, Andy.

Yeah, I mean, I think that's the, that's really the key here is that the media is going to go for the, for the sensational narrative. So they're always going to. And it's this, I mean, to call what we watch every night the news. It should just be the bad news because, I mean, there's never, there's never any good news, really, very seldom. So they're always going to kind of go to it. And if, if we don't respond to that narrative by actually sharing the wins and the positive things, then we've only got ourselves to blame, you know, and it's, it's kind of what we seeing is that those builders that are able to control the narrative for their market, they don't need to control the narrative for the world or the country. But if they're able to communicate their specific offers, if they're able to show the, their usps, their unique selling propositions, etc, etc for their market, they're able to counter that very, very successfully. And of course, what we finding is that the content that builders are putting out there to address the issues that clients now have is having to adapt to the new normal. So, you know, content that made sense a year ago unfortunately now needs to be freshened because what your client was worried about a year ago is different to what they're worried about today. But we have the ability to, you know, to control that narrative and we should.

That's a, that's a really good point actually. In terms of the, the content, it has to evolve. You can't, yeah, you can't sit on your hands at this point. And we've experienced that ourselves. Our content has had to evolve because obviously, yeah, the challenges that were affecting builders 18 months ago are very different to the ones that they're facing now. So if we carried on pushing out the same content, it wouldn't resonate. So, yeah, we've kept a close eye on that and, and adapted our content to make sure it was, it was relevant and, you know, entering the conversation that's going on inside your client's head, that's really, really important.

In 2023, the association of Professional Builders passed 700 active members quite Recently. What does that number mean to you, Russ?

Look, it's, it's a nice milestone. Most important thing is we continue to grow because it's our belie. The more building companies that we can help systemize their building companies, the bigger the impact we can have on the industry, which will help us to achieve our goal, which is to improve the industry for both builders and consumers. However, we have faced the exact same challenges that builders have faced over the two years. We found it extraordinarily difficult to grow our sales team, which would then grow our membership because our sales team look after existing members as well as bringing on new members. And when you're faced with that situation, just like a lot of builders were, where you can't find the right people to come on board, you know, there was a situation, a lot of people didn't really want to work. Yeah, they were making better life choices for themselves and working part time or maybe choosing not to work at all, which is, you know, it's great for them, but yeah, not, not so good for the country, really. Yeah, we need thriving businesses. So we struggle just like, you know, builders have been struggling. And I think we had to make a conscious effort that, not to push it, not to force the issue. We knew it had come back. And yeah, you can drive yourself nuts, can't you? Just trying to recruit and then you compromise your values and you end up taking on people you wouldn't normally take on. So we made a conscious effort not to do that and to just bide our time. And yeah, we're very fortunate. We've been able to recruit some very good, good people this year in some pivotal positions. Obviously. Yeah, you've joined us, Will, and taken over the marketing team. Danny has joined us as head of sales and that has put us in the position where, you know, Danny is now recruiting more salespeople. So the, the 700 mark is nice, but in all honesty, it's not where we expected or wanted to be at, you know, at this moment in. Yeah, we've got to get past that thousand pretty quickly.

Now in saying that, Andy, what impact does that tell you that the APB's had on builders across the world?

Well, look, I think it's, it's I, I get the incredible privilege of interacting with our builders all over the world in, in live interactions in all sorts of, of ways. And one of the questions that I always ask in a group setting is do they believe that the industry would be improved if more builders did what we teach? And I've never ever other than a positive response to that question. So, you know, the bottom line is the sign of a, of a good company that's heading to being a great company is the fact that their mission is clear and easily understood. And I think ours fits that bill perfectly. We want to improve the construction industry for consumers and builders. And I said this in a mastermind the other day, it actually only works one way if both sides of the coin are in place. It's one of those beautiful tensions that until a builder is providing better service, he's not going to be able to achieve the better margins and vice versa. It's a, it's a wonderful, it's that elastic band thing. That tension needs to be there for either side to work. So really all that it's saying is throughout the world there is the opportunity for builders to now run a business that will set them and their families up for a far better future with less frustration, better quality of life in between, and the people that they interact with can build a home without it being a nightmare. And I mean, that's, that's win, win, win all the way around. So it's wonderful. And obviously from a. I think everybody that listens to this podcast knows from my perspective, running the coaching, the one on one coaching and elite mentoring side of our business, the bigger the pool of members is, the more opportunity we have to help more people and see them achieve the kind of results that we see in our business coaching and elite mentoring groups. So from that perspective, it's fantastic. Yeah.

The fact is, it doesn't matter what industry you're in, you can't deliver a world class service on tiny margins and without systems. You know, margins and systems are the two things you need in order to provide the very best service to your clients. So, you know, that's why we're so passionate about helping builders to systemize, because we know it will lead to a better service and it will allow builders to then increase their margins and get paid what they're worth. And, you know, we can see the difference. You know, year on year might not be going as fast as, as we want to, but there's no question builders are becoming more and more professional.

Well, extending on that, Ross, it may not be, I mean, it's 700 members, but the podcast itself this year has reached 100,000 listeners, which is an enormous impact across builders around the world. What does that tell you about the impact APB is having on builders?

Yeah, look, that is a phenomenal number. And I'm always amazed when we go to these Live events and chat to builders. And yeah, they bring it up rather than, you know, rather than us. They're always bringing it up, bringing up the podcast. Love the podcast. Always listening to the podcast. Love hearing the builders stories. They love hearing us chat. Yeah, the coaches chat as well about different aspects of running a professional building company. But yeah, I, I must admit I'm, I'm a little, I'm a little surprised I guess at the, the reach that the podcast is, is having and, and obviously it goes well beyond our membership as well. There's. There's so many builders out there that are maybe just watching from the sidelines at this stage. They're not ready to, to kind of jump in and become part of this incredible community. And, and that's fine because this is giving those guys the opportunity to, to understand and, and hear what we're about without, yeah, making any sort of commitment. And of course there's the. You hear numerous industry partners listen to the podcast and if they're not partners, they'll reach out to us, but existing partners as well follow the podcast. So, yeah, I think it's incredible the reach that this podcast is having within the industry, but also the impact as well.

My only concern, in case you want my opinion, is the fact that we've gone to visual as well, because as you all know, I think I have a face for radio. So this puts me under a lot of pressure to be in this format. But at the end of the day, if the numbers are growing, it's obviously working. From my personal perspective, I cringe listening to all the episodes that I do, but I absolutely love exactly what you said. Will the builders stories and listening to some of the. I mean, the beauty. We've had some incredibly influential and clever people from all over the world covering subjects on this podcast, which I learned from. So, you know, it's one of those, one of those weird relational things where it's our podcast, but we also get to benefit out of it, which I think is, is absolutely fantastic. So long live the podcast. May. May it continue to grow.

Yeah, I, I love that. Listening to the podcast and listening to a builder's story and then they talk about a, an action plan and a system that they've implemented. It might be construction slots, you know, P4P is hear a lot of or even the work in progress calculator. But they describe this system that they implemented and the impact that it had on their building company and you think like, wow, I can. I remember us sitting down years ago and developing this and, and then putting it out there, and then there's guys on the other side of the world actually taking that information and implement it into their building company. And it's affected their lives. It's changed. It's.

Ye.

Had a real change on their lives. And you. Yeah. You just feel so incredibly excited. I always listen to the podcasts of a morning when I'm walking on the beach with my wife, and yeah, often I have to start saying, like, yeah, listen to what this guy said. This is incredible. And.

Yeah, it's. I mean, it's. We have an incredible opportunity, but it's also pretty humbling, you know, when you. When you kind of hear the difference. And we. I'm not saying we jaded or cynical, but, you know, we. We kind of. We're. We're in the trenches all the time, so we. We sort of. We end up taking a lot of things for granted, and it's just wonderful to listen to the stories on the podcast and. And as Russ has said, kind of reaffirm that the act, the actual value that people get out of a relationship with the apb, you know.

Yeah, it's that confirmation that people are actually utilizing the information and implementing it. Because we kind of know this is. This is the template, really. This is what you need to do. And if you do this, you're, you know, this, this result. But there's always that nagging doubt, isn't there? Like, you're putting all this content together and you're pushing it out and people are joining. You think, like, are they actually implementing. It's that lovely, lovely confirmation that people are actually using the information and affecting a change in their business, which is awesome.

It's interesting you mentioned the video component, Andy, because the number 100,000 I mentioned is just the audio downloads. So if you take into account the snippets on Instagram and Facebook and the YouTube channel and everything like that, the impact is significantly more than that. I know that. For example, there's a couple of snippets on Facebook which have 60, 70,000 views alone. So your face is well and truly out there.

Yeah. Don't you worry, Andy. The fan mail is on its way.

I actually had, at a recent live event, I had a young guy come up to me, and his opening words to me were, you don't have a face for radio. So he'd obviously heard the comment before, and I wasn't sure whether he meant, you don't even have a face for radio or whether he was being nice to me, but I took it As a compliment.

Brutal these builders, aren't they?

Absolutely brutal, straightforward. They don't pull any punches.

Very good. Well, another big milestone in 2023 was the release of the third sourcing report. So the state of residential construction industry. We had over a thousand builders participate in the 2023 report and it's been downloaded over 15,000 times by builders just on, you know, our community, which is an enormous effort with the amount that goes into it. We're currently collecting the data for the 2024 report which will be released next year. But it's just a huge undertaking and something that the APB should be very proud of. Russ.

Absolutely. 15. Is that 15,000 times or 15,000 unique?

I think it's 15,000 downloads of the report which I think well opt ins actually. So it should be, it should be unique.

That'll be unique then. Yeah. It's not, it's not. Yeah, it's not 148 people downloading it a thousand times then. It's.

I know that you've done.

It's not your mum trying to make you feel good.

No, no. That is incredible because you know, you gotta remember we are targeting a niche here. You know, it's not all builders, it's not handyman or commercial. This is residential home builders. So 15,000 is a significant portion. That's the kind of thing that's going to help us have an impact on the industry. And yeah, incredibly proud of this report and where it's come from in a very short space of time from, you know, just a simple idea really to, to, I mean, arguably one of the, the most prominent surveys in the residential construction industry, you know, across the five English speaking countries. So yeah, incredibly proud.

It, it is a benchmark now. You know, I think, I think the first year it was, it was a bit of a. What is this? And kind of the second year was okay, I sort of understand. But you know, getting to number, by the time number three happens, I think it's established itself as an absolute place where anybody anywhere in the world can benchmark their building business against really any level. Globally, nationally, state, city, you know, it's, it's, it's a wonderful tool for people to, to use which I think is incredibly helpful, you know, in the long run.

Yeah, and those builders that take part in survey as well, they get the added bonus of being graded and where they. So they're taking part in this year's survey, they're benchmarking their building company instantly. And then of course they, yeah, they get access to the Finished report early in the year where they can look through all the numbers. But I think one of the things that's really stood out for me is the consistency of the data. You know, it's not all over the place. And this, of course, is largely down to the sheer volume of data. Over a thousand builders taking part. Now they are, are verified builders. You know, we obviously vet all the data to make sure it's relevant. So it's not just a case of putting out a link and, and just asking people to take part and fill in their information because obviously, you know, you get commercial builders, etc taking part, those numbers would get distorted. So we actually do a lot of analysis and remove a lot of that information that's not relevant to our industry. So it, it's really targeted, it's really focused. And what we're seeing here is further proof that our industry is becoming more professional year on year. Because we can see the technology that's being adopted by builders, we can see the different things they're doing. Because this survey is so comprehensive and it's so in depth, we can see how many builders truly understand the difference between markup and margin, not just the ones that say they do, because we test them. And then the builders that truly understand work in progress, again, you know, there's a large percentage that think they know what work in progress is for a building company. But we measure those that actually do know because again, yeah, we, we test them. But other things like how many have a sales process, a documented sales process, how many do project reviews at the end of each project when it's completed. All this information is just further proof that this industry is getting more sophisticated and more professional every single year. And I have no doubt that this year's data will further prove that fact as well.

APB has hosted 13 live events in three countries in 2023. And that includes events in Sydney, Melbourne, Vancouver, Toronto, Washington D.C. salt Lake City and many more, as well as a retreat in Hawaii. And the first ever professional Builders summit over two days in the Gold coast in Australia, where we brought together 15 expert presenters over two days to bring builders together. And literally hundreds of builders have attended these events. You know, what does that mean to you, Andy?

Well, as I said, I'm incredibly fortunate, I think, to have been at all of them, actually, I think, I think I'm probably the only one who's been at all of them. Apologies to all those people that have had to put up with me all over the world, but it's, it really is a privilege because with, with our, the way we function being largely online, there are times when you get kind of, you want to see more than just sort of nipple up. You want to be able to actually interact on a, on a human level with the person. So they're incredible. And every one of those live events, I have never ever been to anyone, whether it's this year or any of the previous years, where we've done them, where builders who are there for the first time haven't said, this is amazing. I wish we could do this more often because we don't talk to each other, you know, so even as a, as a vehicle of change, as a, as an opportunity just to get people together and get them talking, working, it's an absolute, incredible privilege to see how those things come together. And obviously from our perspective, it gives us the opportunity to be listening. We were in, we were in Perth recently and I sat at a table with nine builders and I just listened to them talk. And it was incredible how much I picked up in a two hour situation just listening to them talking about what they're battling with and what's working well and you know, the kind of things that are happening in their lives. And that allows, as Russ says, that allows us to shape what we are creating in a way that is meaningful and relevant to them. So, you know, I mean, the quality of the speakers at the summit, there are, you know, there were people that attended the summit who I heard going around those live events promoting the next summit. Forget us saying anything about it. Builders themselves going to other builders saying, guys, you've got to get to this thing. Really, it's, it's amazing, you know, so that, that side of it is fantastic. Obviously, retreat is kind of my baby. It holds a very special place in my heart because it's, I trying to get all gooey now and you're going to hear the violins start to play and rose petals are going to fall. No, we won't do any of that. But literally we see lives changed, you know, in kind of a three day cycle. You see people come in at one end of the process and leave differently at the other end, which is a, which is an amazing thing to see. And, and it really comes on the back of people that are prepared to step up to kind of take that to, to say, I want to be more than just the norm and, and you know, stepping up into, into that, that role. So I, I love our live events. I just think they have, they have so much benefit for everybody involved that I hope we can do Double that number next year.

Yeah, there's a, there's a nice mixture of events. Isn'. You say the retreat is, is, is very unique. I'd probably, I'd liken it almost to like a religious event where you, you get people being born again. Really. Not that this is religious in any way, but it's that kind of transformation that, that we've seen from people. It's absolutely extraordinary. But then yeah, the, the new event this year was the Summit which were. Yeah, which was great because it exposed builders to a lot of expert spe. Our industry. Yeah, they're not, they're not, they're not coming from a coaching angle but they're experts in their own niche talking to builders and, and that was great. Exposing builders and connecting builders with, with those experts, expert service providers. And then of course the, the APB live event where we've traveled around Australia for the last couple of years with those live events through now taken to the US and Canada as well. I should include, yeah, New Zealand as well. We've been there the last couple of years. But Andy, Andy has the luxury maybe of listening a bit more than, than sky and I because while Andrew and Andy is enjoying his best life having dinner with these guys. Sky and myself are doing all the hard work next.

It's awesome.

There we go. We run a presentation for the non members and just show them some information, show them some stuff that the members have already implemented and have proven to work and then they got the opportunity if they like the environment, the community to come and join us as well. But we do get the opportunity to hang out with all the guys for an hour before the event starts in the one hour network in drinks and canapes and yeah, I agree with Andy. It's great, great just hearing from these guys in their own words in a relaxed environment talking about what's going on and yeah, we've, you get a real feel, don't you, for, for what's going on. We heard how tough things have been in, in Auckland when we were there a couple of months ago, you know, and we'd been a little bit insulated from that in Australia, you know, where things were, you know, were, you know, we're going well, they were cooling down, they were going well. And then we traveled to Perth just recently and, and realized that things were, you know, were, were, were going extraordinarily well compared to the rest of Australia where they're just kind of out of sync a little bit. So understanding all those little nuances and obviously Andy traveled across Canada and North America, the. The US as well, last year and. And got some good conversations over there. So it's a lovely mix of events that we've got going now. And, yeah, we're looking forward to repeating and expanding those in the. The year ahead.

And you will. You didn't mention rbs. I mean, I didn't.

That wasn't an event we hosted, but we certainly.

Yeah, I mean, it put some live.

Man hours into it.

Yeah, my feet knew it was live, but, yeah, I mean, was great being there as part of it this year and. And I know that we've committed to next year, so, you know, it's. It's another opportunity for us just to interact directly with clients and potential clients, which is absolutely fantastic.

The irony is it's not our event, but it probably draws more resources than any other event that we do.

That's true. Yeah. Yeah.

Speaking of resources, I thought it'd be worth giving a shout out to Kayla and all the work she does coordinating the. The AP event events around the world. It's. It's amazing what she does to pull them together.

Yeah, we rock up and take all the credit, don't we? But behind the scenes, there's. Yeah, you've always got to have that person and behind the scenes organizing everything for you. Otherwise you. You come across as quite stressed on the day. But we can be relaxed because we know she's got everything organized with military precision, you know, months in advance of us rocking up. And, yeah, these events, they just run like clockwork. But thanks to all the work Kayla.

Does in preparing, I always introduce her as our director of awesomeness because she makes the rest of us look really good, you know? Yeah. Shout out to Kayla.

We'll see if she listens to the podcast.

We'll find out now, won't we?

Yeah.

On a different note, we established a partnership with the 141project in 2023 and have already built seven homes for people in need in Guatemala. It's having a huge impact on underprivileged societies around the world. And, you know, it's a great initiative. So, Russ, how did that come and what impact is it having?

This came about from attending the International Builders show in February of 2023 and coming across a builder that had started the 141 project and chatting to him and understanding what it was all about, how it came about and what it actually did. And, yeah, he explained to me that the idea behind it was for every home a builder built, they would pledge to build one in Guatemala. And yeah, obviously the, the cost to build a home in Guatemala is, is a lot lower. And builders really connected with this cause, as did their clients as well, because they would say to their clients, we're building this home in your name because you've built with us. We are now able to build this home. And I think it was because of the way that it resonated with builders, we thought this is, this is a charity that we would really love to get involved with and get behind. So we decided to donate a portion of our member renewals each month to this great cause. And it's enabled us to start building homes, you know, complete homes for people that really, when you hear their stories, it's. It's just terrible the way people, you know, some people are forced to live. Yeah, I think everyone in the world is entitled. I mean, that word does get used quite a bit now, but really, this is where everyone, every single person is entitled. They're entitled to clothing, to shelter and to, and to food. And regardless of their situation and what they may or may not have done, everyone is in. Every human being is entitled to that. So I think it's great that we're able to get involved in, in this worthwhile cause and, and make, you know, what is a relatively small contribution. But, you know, it, although it's small, it is impacting these people. And we see the videos, we see their stories of what they had to endure before floor. Literally running water across their floor where they sleep is what these people would have to endure normally. And yeah, that the sheer joy it brings to them and their family to, to, to have a home, their own home is, is fantastic. So we're at the beginning of this journey. We've built seven homes, I believe already. We're excited. Yeah, to, yeah, we're looking to be building, yeah, 20, 20, 30 a year. And this is so exciting for us.

A big one that it's worth mentioning is our rewards program. So it's really taken off. In 2023, we added 43 partners to the partner network, which takes us to over 50 rewards partners on our directory. And the total rewards cash back that our members have claimed is $226,000 as of the recording of this podcast. That is an enormous amount of money for builders out there.

There.

Talk to me about the rewards program, Andy.

Listen, I, I have. One of my other privileges is to have been around for a while and to have watched the pingpong match around this subject over the years that it, it was quite interesting that, that I think the Rewards program. Russ, you must have had the idea for this five years ago. If not, if not 20 years ago. Okay. All right. And it just. It was one of those wonderful things of watching that, that no matter how Russ articulated it, it never. It never, ever got the nod until one day it did. And I think it was really almost changing the name, I think was almost what sort of got it across the line. But, I mean, the concept is fantastic. Our builders, in fact, builders everywhere, are spending money on services that they need to be more professional. Anyway, if we can combine them spending that money and then getting a benefit, benefit back, that makes being members of the APB easier for them. That, again, is win, win, win all the way down the line, you know, so just on a. On a pure financial basis, we always talk about the fact that if we can get a client to the place where they make more money out of rewards than what it costs them to be a member of the apb, why would they ever leave? And, you know, at the end of the day, we've spoken a lot about the difference we're able to make and the improvement we're able to bring in the industry. We obviously want that to be consistent, not sporadic. And therefore, if we can get to a place where being a member is more accessible and easy, this is just a fantastic. And I mean, when I talk about win, win, win, I listen to some of the stories from the rewards partners themselves, the difference it's made in their business. You know, so our members are benefiting, the clients they serve are benefiting, and then the service organization are benefiting out of it as well. So it's a. It's just a fantastic thing to do. And it's almost one of those things that the bigger the number becomes, you know, that that is an absolute measurement of the success of the particular, you know, of the program. So I think it's a fantastic initiative. Really do.

Yeah, Started out, it was all about the money. And like Andy says, you know, we thought if we could pay our members more than they pay us, you know, why would you ever leave? It's. Yeah, it's just a great retention strategy. But think very quickly, we realized that the money was almost secondary. The feedback we're getting from our members is that they can go somewhere. They can go to the directory and just find a partner. And they say, you've already vetted them. I haven't got to do the research. I haven't got to go looking at different people and talking about them, talking to them, interviewing them. I know I can Trust them and they just sign up on that basis and it shortcuts the whole research. Now obviously we monitor the performance of all our partners. So yeah, we, yeah, we take any instances of poor performance very, very seriously to maintain that standard. But that to me has now become an even bigger driver in that we are connecting the best service providers with the most professional builders in the industry. And yeah, one side of the coin is we've generated $226,000 in additional, you know, cash. That's going straight to a builder's bottom line really. That's not revenue, it's not even gross profit. That is net profit. And, and on the flip side of that we've generated $4 million in additional revenue for our preferred partners. And, and, and it's growing at an incredibly fast rate as well.

Yeah, the work you've done Russ, to establish that network of partners and, and the relationships there is, is super impressive.

And the great thing I think is this isn't Australia centric. Yeah, we got partners in New Zealand, in Canada and of course after attending IBS last year that's what really launched it in North America as well, bringing on all those partners from the United States. So I'd say we've got equal representation now in across Anz and North America which is great, great.

And of course we see consistency in terms of the service delivery across our membership now. So I'm noticing for example that, that our website partners are following our protocols and therefore when we go to look at clients websites they now comply with what we know are the best practices. For example, the quality of the content that's being created has improved. The quality of the videos that are being made. Made has improved. I mean the list, the list just goes on and on and on. And the beauty is that's consistent, you know, across the whole network.

And we're introducing our members to the, the newest and latest technology. Yeah different platforms that are coming out also, you know, the, the best marketers as well and things that maybe they, they wouldn't have always considered or thought might work in their business. Things like outsourcing overseas. We now have builders that have their own in house architect that's based in the Philippines, you know, in house estimators that are overseas. So they're employing these people, they're following their own systems and processes but they're managing to do it at a fraction of the cost that it would normally normally cost.

Really powerful. Well it wouldn't be a 2023 wrap up episode if we didn't focus on a Few of the awards that APB has won. We were great place to work, certified again in 2023, listed in the Australian Financial Reviews Fast 100. We listed at number 13 in the Smart Company Fast 50 list. And that was the third year in a row we made it to that list. Climbing up the ladder each time for that. That actually included a separate award which was the smart and lasting award winner, winner for sustainable growth, which is, you know, a great recognition for all the hard work the team's done over the years. Sky was listed in the 40 under 40 list with Pro Builder in the US which was a great recognition of all the work she's done. And we were a finalist in the 2024 Telstra Best of Business awards. So I'll catch your breath there, but like some huge, huge awards and great recognition for the whole team.

Yeah, me and Andy are going for the over 60s award next year.

Yeah, I've been waiting. Russ, come on, let's, let's do it. Let's, let's crack it. No, I mean it's, you know that, that's almost, what's the word? That kind of recognition is amazing because as Russ has said, we, we end up focused on what we're doing here. We don't really look at what that is perceived as in the broader market. We get up every day and we do what we do. So, you know, to have to have objective people looking at what we're doing and some saying on a business level this business is making a difference is actually positive in the economy, in people's lives, etc. Etc. That's fantastic. If we're going to give a shout out to Kayla, I mean, I'm going to personally give a shout out to sky what she has achieved. You know, it's kind of 40 under 40, whatever. I don't even know what that means. But bottom line is her achievements in the time that she's been involved in business as a whole whole is mind blowing. It really is. And we're incredibly lucky to, to have her as part of the team that drives this company because I think she has a very unique way of looking at things which gives us a point of difference, attention to detail. I will tell you that no matter where I place menus on a plate for a live event, they always need to be adjusted. And I don't have any problem with that because that's exactly her eye for detail. And it's the little things, things that, that get the attention that make the difference, you know, so I'm really glad that she's been recognized and I truly hope that there is oppo, there's more opportunity for, for her to, to kind of step onto that platform because I think she deserves it.

Yeah, I think there was a Women in Construction award in there as well that she was named on for the second year running, which is a, you know, a global list. So that's phenomenal recognition. But the 40 under 40, I think she was one of the youngest to be on that list and female as well. So that was, yeah, that, that was pretty, pretty incredible. But I'm also very proud of the fact that we've made the Australian financial review fast 103 years running now as, as we did with the Smart Company. Because that is purely naughts and ones, you know, it's a purely data driven award. And think what they have, have done now is acknowledge the fact that we've been on that list three years running. Yeah. In terms of the sustainable award that we got because it's all very well having a good year or having a very good year spread over two years even. But for a company to keep coming back year after year with that sustained growth, you know, you've got to be, you've got to be pretty systemized to be able to, to cope with, with.

That, to close things out. Let's talk about customer feedback. If we just go straight to Facebook and Google, We've had over 200 reviews of well, five star reviews from customers on those platforms. So the recognition from our members is, is getting, is growing out there in the market. Andy, does that, what does that mean to you?

Well, it's huge. And, and you know, that is, that's results driven. That's, that's people coming to us looking for a solution to a problem and finding it, which is, you know, which is fantastic. And I think Russ said this earlier on on, we aren't the right fit or solution for everybody. We are very tightly focused. We are very niched and because of that we're able to be very effective in what we do for those people. So you know, it's, it's really that is, that is very much a measure of solutions being applied and generating the results that we said they would. Which really puts, particularly from a coaching perspective, it, it gives our coaches an incredible level of confidence because it's not. Well, try this. We hope it'll work. It's. Try this. This has worked everywhere in the world in all types of building companies at all sizes forever. I mean that's to be in a place where you can Coach people in that environment is incredible. So it's. I know we end up always. We all do it now. We all go and read the reviews. Not everybody puts a review out there, but I can tell you from just the feedback we get from, from, from the coaching clients and the, and the, and the elite mentoring clients, that's what's driving that kind of response is people getting actual improvement and results in their business.

And of course, we, we practice what we preach. You know, this is something that we not only encourage our members to do, but we document the process for them to follow in order, you know, to. To get these reviews for themselves because they are so, so important for any business. That credibility, that proof, you know, that. That record of success with previous clients. So, yeah, again, it's further proof of us, you know, walking the walk and, and doing everything that we. We, you know, encourage and, and show our members how to do themselves.

Well, there you have it. 2023. What a year year. Hopefully 2024 will be bigger and better. Any final thoughts on the year that's been, Russ?

Well, yeah, it's. It's an upward trajectory, and it's all about maintaining pace. And yeah, I would encourage all builders out there to think this way as well. It's not about what you achieved last year. It's, you know, can you maintain the pace in the year ahead? Do you have the resources in place? Do you have the plan in place to continue this? Because what doesn't grow dies. So, yeah, give yourself a pat on the back for the year that you've had, because I'm sure if you are a professional builder, you've had an extraordinarily good year. Not like all these volume builders who have struggled to make no money whatsoever. You guys would have had a good year. So now we got to keep that going. So, yeah, pull that plan out, have a look at it, update it, and, yeah, plan for even more success in. In the year ahead.

Andy, any final thoughts?

Well, just knowing when this episode is going to air, I'd just like to wish everybody listening a very merry Christmas, a great time over the holidays, a good time of rest and recuperation, because that's critically important. And as Russ said, let's make sure the plan is in place for New Year and, and let's come back and hit the ground running. But from. From my perspective, to all of our members, thank you. We've. We've spoken a lot about we in this episode. The. We wouldn't be possible unless you guys were part of it. So thank you for, for all you've done this year as well.

Very well said. Well, Russ, Andy, thanks so much for coming on Professional Builders Secrets today. Russ, where should builders go next if they want to find out more about everything we're doing at apb?

Well, this is a great time of year, I think, to look at the state of the residential construction industry report and, and just look at where your building company lies in all these different KPIs. You know, you might be stronger on some, weaker on the other, but yeah, that's when you want to be working on your weaknesses. So I think we can put a link in the show notes to the 2024 report as soon as it becomes available. In the interim, we can always have a link to the 2023 report.

Perfect. Well, we'll make sure we add that into the into the show notes there. But thanks so much for coming on the show, guys.

Thanks for having us.

Awesome. And a big thank you to our listeners wherever you are in the world. If you like the show, please subscribe to Professional Builder Secrets on your platform of choice. And if you're feeling generous, leave us a review. But until next time, have a great day.