EP #18 - Kia Ora, New Zealand! The Local Guys Land Across the Ditch [Training, 1st Year of Business]

Well, kiaora, Sean.

Kia ora, Jared.

Yes, here we are, we're on the the other side of the ditch and we're here in absolutely beautiful, sunny Auckland, New Zealand. Why are we here?

Apart from having a nice little holiday here? No, we're here training new franchise partners. So really exciting. We have a group of four guys over here this time around, three different divisions. So yeah, really exciting.

Yep, absolutely. So do you want to talk a little bit about what your process is in over here? Because obviously there's the first initial three days that I complete with the guys and girls. So we've just completed those now. So the guys have finished the office side of the training where we've gone through lots of things like accounting and bookkeeping and local area marketing and how to use our software and our systems and all that sort of stuff, all the fun stuff. So now the guys from tomorrow onwards are going to be going out and getting the hands on side of things and attacking on that way. So that's where you came over obviously last night. Do you want to talk about your side of the process on that side of things and how you attack that?

Yeah. So obviously as you said, I'm here for the technical side of training, so the hands on, the actual pest control training itself. So we have different sites set up around Auckland where we will go through each and every one of our services, make sure that the franchise partner is comfortable in each and every service before being able to get out there on their own and start performing work for real people.

Sure, yep. Because we've, we've got a couple of franchise partners in the pest control division already over here. So this is our second one that we're, we've got our franchise partner down in the south island in Christchurch. Nash. Yeah, absolutely. And now we've got a franchise partner joining us here in Auckland.

Yes, Arabjit here in Auckland. So really exciting.

Yeah, yeah, absolutely. So what is, what is the game plan look like over the next three days? What sort of sites? I think I said you got a cafe or a commercial site that you're going out to.

Yeah. So we're pretty lucky this time around where Sabjit himself had a friend that owned a cafe. So we're able to use that as one of the training sites. So he'll get some hands on experience in a commercial site which is really important. But then he also has another family and friends which they're happy to have training done at their houses because they get free pest control services basically. So that's really handy. But over Time we're building up a nice little list of areas that we can go around and do training. So we've got plenty of options each and every time that we're here.

Yeah, beautiful. Beautiful. Yeah. So the New Zealand market, it's obviously a different market to Australia. What are some of the things that have stood out to yourself as far as differences or unique points that we've discovered so far, far in our journey? Yep.

Obviously being a different country, there are some differences in regards to a couple of the services. So they have slightly different pest control issues opposed to us, but majority of them are the same. But then there are some other differences in the, in regards to training. We found that in Australia the barrier to entry is a lot higher, I suppose. So we've had to wrap our head around that.

So that's training and licensing.

Yeah, that's right. So the whole process itself itself is slightly different here in New Zealand which in, in roundabout, roundabout ways actually turned out to be a good thing. Yeah, we're able to get through the training itself quicker so the guys can actually get out there and earn money quicker, which has been really, you know, exciting for them. Yeah, so yeah, that's something that we've, we've had to battle I suppose to learn the differences in between Australia and New Zealand in regards to the, the whole industry.

It's very strict in Australia on the licensing and you've got to have a lot of things that. A lot of paperwork and red tape.

Correct? Yeah, yeah. So there's lot like you actually have to be licensed, a government license that's mandated to be able to perform any pest control service for money. We're here in New Zealand. Once you've certified and you've got your certificate, that's all you need, go out there and you're good for pest control for life basically.

Okay, cool. So how long does that process normally take over here?

Again, completely different from Australia to New Zealand. So the process itself, what is actually required is three zoom calls here in New Zealand. So an in class zoom call, I suppose they have one of those every three months for, for a period of six months before being able to get licensed. But having said that, because we actually have myself come over here and train the guys out in the field, I can become their assessor, so to speak, and we can speed up the process so they have been able to get out in the field much, much quicker.

Yeah, nice. Okay, you talked about this. Different pests, Australia V and Zed. What are the differences that you've found in different Pests.

Yeah. So there's a few different.

There's no flies here. Right.

So that was the thing for a long time. Apparently now they're starting to become a big thing over here.

Yeah.

As you've seen stood out to me is most buildings don't even have fly screens.

Well, that's, that's the beautiful thing. I'm training the guys with end of tenancy cleans tomorrow. And you know, fly screens is always a pain in the backside because they always get dirty and all the rest of it. So not having to worry about that. It's an awesome thing that might be.

Coming from, from the local knowledge that I'm being told that yeah, flies are starting to become an issue.

Y.

They also have other issues like possum. So brushtail possum back in home in Australia is a native species which is protected here in New Zealand. It's a pest, it's introduced species. So they're actually allowed to cull possums over here where obviously we, we can't touch them back in Australia because they are protected of their native.

Yeah.

So, yeah, that's a pretty big difference. Being able to kill one pest and the other country itself is protected. You're not allowed to touch.

It wasn't moles. Is there moles over here?

There are moles, yeah. I don't know a whole heap about them as of yet.

Yeah.

But I don't think they're a big issue. But yeah, that's what I mean. There's so many different animals. You know, you're talking a whole different country. There's a lot of things that we're learning along the way and it's really, it's fun and exciting.

Yeah, it is, it is. And it's. I know we're, it's writing new blog posts about these different pests that are coming up and all the rest of it and constantly learning new and updating our learning management system and all the rest of it to update the new processes for a new pest which, which is a lot of fun. So, yeah, no, that's, that's great. But I guess cockroaches are global.

Correct.

Spiders are global. Rats and mice are global.

So the big three, they're, they're always an issue in most countries. So I guess the bread and butter jobs of our industry are still there, so plenty of money to be had.

What's some of the quirks that you found across here in NZ that you found to be a little bit different compared to Australia?

Yeah. Only been here a couple of Times I haven't picked up a lot but I guess I feel like that the people here in New Zealand are a lot more laid back.

They are. They're very friendly and very laid back. Yeah.

So that's one thing that really stands out. Apart from that I haven't really been out to explore much of the country itself being here working, but excited to learn more the more I come over.

Yep, absolutely. No, I think.

What about you? You've been here a few times.

I have, I have. I've definitely noticed that as well. Really genuinely, very, very friend. So I know even from some of our franchise partners back in Australia who are Kiwis and we're known as some of the nicest guys over there and then to come over here and everybody's like that is a fantastic thing. I think there's a lot very open to business over here. It's very. Our brand has been really well accepted which has been super exciting I think for us being around. Around about a year now. And I'd say that we're around about the 15ish franchise partners, maybe a couple more than 15 so far. It's been amazing. I think it's an exciting time.

In.

In not only the local guys expansion but exciting for people that are looking to get into service space in New Zealand. And I think a lot of the reasons behind that is a lot of the competitors that I've looked into since being over here, very much percentage model, they don't do the flat fee stuff that we do. One of our franchise partners that joined our test and tag division as a franchise partner was with one of the major cleaning groups as a master franchise partner over here. And he was sort of saying yeah, the model is didn't really align with his value system and hence why he really liked our model in regards to the flat fees. Easier to exit the franchise. We're there to support people, they set their own schedules, all the rest of it when they sell, they make the money out of it. We don't make the money out of it.

So I guess that's exciting that we're providing a different option, something else for them to look at.

And I think that's been a big thing about the cut through not only in Australia but in New Zealand as well is that you know, you've got something that is very fair and very easy to exit and it just supports people in the growth and it's been been exciting that it's been something of a lot of interest since we've been over here. I know the Cleaning division itself has just gone crazy since we've been here. So, yeah, it's, it's really exciting. So talk to me about some of the franchise partners that we've got over here. So, you know, what was some of the challenges? There would have been some challenges in that initial period when we first got going, being an Australian brand, coming over to New Zealand. What were some of those challenges that we sort of had at the beginning, and we're still trying to put an Australian, what works in Australia over into a different market. Obviously, it's never going to fit like a glove. There's always going to be those little bit of changes here and there and stuff like that. What was some of the stuff that we discovered in that those early days?

Yeah, absolutely. So there are some things that stand out, I suppose, in regards to taxes, different. So. So it's a big thing for us to learn and then have that produced for the franchise partner and how to navigate that as well. Yeah, but then, as you said, I suppose, the brand recognition. So we're building that on the, on the fly, I suppose, and it's, it's, it's a nice thing to have the trust of the guys in, in the early stages and to know that that's what we're doing, but they see the bigger picture and where we're going. Yeah. And what we've done and what we're trying to replicate in Australia.

Yeah, yeah, absolutely. No, that's exactly right. I know for me, some of the things that we've seen on there, as you said, the taxes are a different system. We've got a higher gst, we've got a higher company tax, so you've got to sort of build that into your pricing model when you're working out your pricing for your customers and stuff like that.

They have mileage.

They have mileage on their vehicles that they have to pay for that. So on a diesel vehicle and that sort of stuff, they've got to pay mileage on that sort of things. The other thing that we've discovered is that. And traffic is a nightmare. So what was the one? We went out to Bunnings to. To get some supplies and it was an hour and 15 minutes there and then we jumped 15 minutes home. So I think that motorway we've discovered is. Is avoided all costs at certain times. Yeah, yeah, absolutely. And we've had to. I know with the other divisions, with test and tape and particular, even cleaning, we've had to adjust things like our minimum charge and our site fees just to incorporate Those sorts of things to ensure that our franchise partners aren't getting stuck in traffic for two hours to go for a small, a smaller job.

So yeah, we had to do the same thing in pest control.

Yeah.

We had to adjust our pricing accordingly, making sure that the profit margins are really there for the franchise partner and that they're earning a decent living while still being competitive in the market. Something we've had to learn as we go.

Yeah, absolutely. No, that's, that's great. And I think that if you can go through and get those, those little changes and stuff like that at the beginning, because ultimately it has to be a win, win, win for everyone. Like you've got to have the. Obviously it's competitive for the market and that we've actually putting out an offer there for the customers that it's going to be acceptable and we make sure our guys conversion rates are actually high enough to be able to be ticking over. It needs to work for the franchise partner as well. They need to be making sure that they're earning a buck and they're not out there sitting in traffic for however long and all the rest of it and come home, haven't earned anything. It needs to be. They've put an investment into that business as well. So they need to be making sure they're getting return on that investment. And then ultimately it has to work across the entire brand as well. And I think it's a balancing act to get all three of those working. But when you can get it dialed in, it really works well.

Absolutely. And I think we've, we've learned that as we've gone through the process that our brands and our processes are really standing out here in New Zealand, client feedback is really good in regards to our professionalism and the way that we actually perform the services. You know, our attention to detail, I suppose has been really well received.

Can you give an example of that?

Yeah. So I guess what we have heard from clients, previous experiences is they haven't. Other pest control companies haven't gone above and beyond the way that we do that. We're not just out there just to fix a problem, but we're out there to investigate the cause of the problem, make sure that every avenue of that service is covered. So they're not hopefully not having an issue going forward in the future. We're not just out there to collect some money and be on our way, I suppose, making sure that the client is satisfied.

Yeah. One thing I guess probably a lot of people are probably thinking about is the support side of things. Now, how do we provide support to our NZ franchise partners? We get them on board and we spend a bunch of time training them and all the rest of it. How does that support look like for them, given the fact that we're over in Australia?

Yeah. Okay. So it's. They're part of the family. I suppose so they're part of our Australian family. So we still have our six weekly franchise partner meetings. So they're part of that. We do that together.

And how does that done?

So via Zoom or video call. So we do that with all our franchise partners around Australia and now we just added New Zealand into the. Into the mix there.

So I think people these days, you know, post Covid and all the rest of it, people are so used to those types of calls. And the beautiful thing about those that I love is you can do it on your phone, you can still be working on a job, put your AirPods in or whatever, and you're involved in that conversation and you can still be out there earning and making money whilst you're doing it. And they run for 45 minutes.

Yeah. Roughly.

Yeah.

Yeah. And it's a really good time for everybody in the group to get together.

Yeah.

And talk about what's going well for them. What's not going well. Hey, has anyone run into this issue? What have you done to combat that? And that's what I love about it, is that we all work together and help each other that way.

Yeah.

So that's probably the biggest point of support there, I suppose. But then the other one is having me on call 247.

This podcast.

Absolutely.

So what was that call?

So just the franchise partner had a concern about what chemical to use in a certain scenario. Just wanted to make sure that they had chosen the right chemical.

Yeah. And I think you were saying it was too dilated. It was under dilated or correct.

Yeah.

Yeah.

So he was worried about how it would actually affect. And I gave him suggestion of trying something else. But that's what I'm here for. That's what I love about it. And a lot of the times it's funny because the franchise partner will give me a call asking me for help and guidance and I'll ask them what do they think they should be doing. And really they already know themselves what they should be doing. They just want me to reassure them. But that's good. But that's what I'm here for. So I just want the backing of myself. So. Yeah. And then the other things we have is like Tranial Trainee was yeah.

Which is our learning management system, operations manual, videos, processes, everything, all on an app on a desktop where they can access it all the time and it has all the best features.

And that's ever growing thing that we'll continue to add to forever. Basically, whenever we run into certain scenarios and feel that that information is going to add value, we always add, add to the platform.

Yeah.

And. And they have that at their fingertips 247 if they ever run into any issues.

Yeah. And I know now having Harvey in our video team part of the business now, we've been adding to that a lot more faster. Right. And adding video to that as well. I know only last week we were going through and recording a bunch of local area marketing of our highest impact tasks for that and exactly how to do it and recording videos of it being done and showing exactly how it's done. So then franchise partners can go, right, these are the things that I could be doing whilst I'm growing my business or I'm in a quieter time or whatever that can actually move the needle at the highest amount. And here's a video of exactly how to do it, which has been something that we've been wanting to do for ages. So it's great that we can get that, that volume out there now.

Absolutely. And it's exciting to see where it's going to be in the future because the way that we're gaining traction at the moment is really exciting to see where we can get it to. Like I said, if it's something that I had back when I started pest control wouldn't have had to go through all the heartache, I suppose, of some of the things I had to learn on my own. So it's a really valuable tool.

While we're talking about support, do you want to talk about maybe two more elements of support? One I'll get you to talk about is our shared WhatsApp group.

Yeah.

And then I'll get you after that we'll talk about scorecards. So do you want to tell me, you know about the group chat?

Yeah. So the WhatsApp group is something that we implemented a little while back now. So every new franchise partner gets added to the group. They get welcomed by all the guys as soon as they join the group. Which is really heartwarming, I suppose. But then it's just yesterday, actually.

Yeah.

So, yeah, it's. But then again, it's just another, as you said, support tool where if they're running into any issues, they don't have to wait for that six weekly Meeting before bringing something up. Everybody has access to that straight away. There's all sorts of things that run through there. What do you do with this tax? What a picture will come through of a certain insect. Does anyone have any idea what this is? Yeah. What. What chemical has worked for you treating this pest in the past? And again, it's just everyone helping each.

Other out and you're obviously always available, but there might be times where you're on a call, you've got other things going on, you can't get directly back to them. They can send a photo through and then it's shows to all the other guys in the network and that the guys actually love. And guys and girls love helping each other out.

Yeah. And I like the fact that I'm not the be all. I don't know everything.

Yeah.

So, yeah, they're the guys that out there in the field learning things just as much as I am. Like pest control is an ever growing and learning thing to go through. So to have the guys that actually out there performing each and every day helping. I've actually just run into that problem last week.

Yeah.

Give this a go. Something that I may have never even heard of. That's where the power of the group really comes to fruition.

Are you able to tell us a little bit about scorecards and how they come into play with the franchise partners? What are they and how do they work?

Yeah, no worries. The scorecards is something that we've implemented where basically what we do is go over certain metrics of the Guys businesses, so. Certain key metrics. I suppose. So we have meetings every quarter to go over the Guys businesses, see if they're tracking with where they see they should be running within their business and. And then we keep them accountable, make sure they're still tracking forward to meet their goals. So some of those key metrics obviously is turnover. So turnover is what everyone is in the game for, I suppose. Just making sure that we're on track to get to where we want to go. And also a good thing about it, I suppose, is you may feel like you've had a couple of tough months in a row, but when you look at the big picture and actually see where you're tracking to at the end of the year still keeps you excited.

Yeah.

So you keep pushing forward because we.

In that turnover, we talk about what the average month turnover is and then what their projected month, what their projected is for the.

For the year mirrored on the previous year to see if they're improving year on year. So, yeah, so some really good things there.

So that one's good, but that one's a results based thing, isn't it? So like that's great to track and all the rest of it. But that's only going to be as a result of some of the other stuff. What are some of the other stuff?

So ATV or average transaction value. So what the guys earning on average per service that they perform. So obviously there's a wide range of prices for services that they perform. But at the end of the day you're going to get out that average and we can get that average up little bit by little bit. Then that's going to. Again talk about what you said, the results of the other metric, your turnover.

And we can baseline that based on. Because we've got a bunch of other pest control franchise partners or cleaning franchise partners or tested tags. So we can baseline that on all of the other people in that division and go, you're slightly above, you're slightly below. If you're below. Do we need to have a look at pricing? Do we need to have a look at this? What's going on here? What are you doing to upsell your, what's your, what would you like fries with that? All that sort of stuff to be after I get the ATV to at least medium, if not on the high end.

Exactly right. And you're pointing out that that might only be like a 5% increase is so big in the long run. So. And it's good to have that laid out in front of the franchise partner so they can see the big picture. Yeah, so yeah, that's one of the metrics then. Another really important one is conversion rates. So obviously the local guys provide not a certain number. We provide leads to a franchise partner and then we keep a metric on how many of those leads are presented to the franchise partner that actually turn into work. So if that is starting to fall down, then we can catch it before it's a problem and say, hey, your conversion rate's down a little. Maybe that's something we can work on. Maybe it's phone manner, maybe it's about selling yourself. Maybe you're not describing enough to the. So the client, whatever that is, let's catch that now before it's a big issue.

Yeah, and that can have a huge impact. Obviously conversion rates is one of probably our biggest metrics and I think that. Yeah, exactly right. It's about, you know, you might have someone where English is the second language and we've got to role play and work on and get Them to. And we've already got scripts and things like that for them to be able to get that initial phone call where it's completely dialed in and got that all working. It might be that, you know how long it's taking them to get to a particular lead. They're waiting three or four hours before chasing those leads up. It might be a bunch of different things that we can coach them around and help them get their highest conversion rate.

It could be not getting the client on the phone in that first instance and then giving up on the lead and not following the process of continuing to chase up that client to make sure that we give ourselves the opportunity to win it.

Yeah, absolutely. Okay. And then I know that there's a bunch of other stuff that we've got built into those scorecards where we could. There's. I think there's four or five other.

Metrics, local area marketing, and we've got maps of all the businesses within somebody's territory with all their details for them to chase up. So we try and give them the best opportunity possible to be successful.

All the tools that they need to do. As we say, it's a great vehicle to success. And then we just need you to get into that vehicle and drive it. Well, basically, yeah. Yeah, no, absolutely. All right. Well, I guess from here, what is, I guess the. The next game plan as far as continuing to roll out across the New Zealand market? What do you see? How do you see the next sort of six to 12 months going, five years going across here, just continuing to refine and get better, or.

That's what is exactly what it's all about is refine, get better, grow the brand. I want us to become a household name. I suppose if we can do that, then we're just going to be successful. Especially for the guys that are already on, if we can keep continuing to grow their businesses. That's the exciting part, like to see the guys be successful. I've seen it happen already in Australia when we have record turnovers in year one and that, and you get a real kick out of it. And I just want to keep growing that throughout New Zealand and hopefully come over here and enjoy New Zealand, the country, a little bit more than I have so far.

Yeah, yeah, they know how to turn it on here. All right, well, thanks very much for that, mate. I think that gave a really good insight into what the game plan is over here in NZ and what we're doing and how, you know, we're really making. Getting a strong foothold in the market. And how well it's been received and. Yeah, no, just can't wait to keep coming over here and continuing to build, which is fantastic.

Absolutely.

Yeah. Thank you.

No worries.