Speaker argues that companies must implement AI and automation to remain competitive or risk losing market share; uses a heating and air conditioning pricing example to show how automation-driven cost reductions can allow lower prices while preserving profit margins, increasing conversion rates. The speaker gives numeric examples to illustrate the point.
Questions this video answers
$15,000
20% (net profit when it flows down)
$14,000
I agree with you that if you don't implement AI and automation in your company, you're going to get beat down and lose the market and probably go out of business. And one of the things I was talking to, let's say that you sell a heating and air conditioning system on average for $15,000, right? And with that, your net profit of your company all the way when it flows down is 20%, which is that awesome goal that not a lot of companies achieve. So if you were able to scale without having to hire people and use this technology, then essentially you could charge less and keep the same amount of money, which means your conversion rate would be higher. Right. So if you're, if you need to get $15,000 today out of a system and you're more expensive, if you're right along with your competitor, the big competitors, and if you can drop that down to 14,000, you're going to convert, get more jobs and keep money than your competitors. So I think it's not just will be a big deal where as companies that don't use this, we'll find that they're not able to be competitive in pricing in the market as well.