High-Ticket Sales in Home Services: What Actually Works

And today we are talking about high-ticket sales, how to get them big juicy tickets. Just like it's wrong to be incredibly pushy, it's also wrong to not present and only do expensive repairs that don't benefit the customer at all.

Fixing it is not necessarily the end goal because sometimes there's better options, and that's how you also get to higher-ticket sales.

Why you? Why now? How can I afford you? I mean, sales is a system, and the system is solving those 3 questions and then training it into your team.

Like, how do you change the culture around I would highly recommend avoiding.

Welcome back to Owned and Operated, a top 200 business and entrepreneurship podcast. I'm your host, John Wilson, and on this show we talk about growing your home service business. Today I'm joined by my good friend and co-host Jack Carr.

What's going on?

Welcome to the show. Frequent co-host. And today we are talking about high-ticket sales, how to get them big juicy tickets.

I've told this story before. It took me a long time to get here, longer than I'd like to admit.

To big juicy tickets?

Well, I mean, just honestly, so my background, right? And I was telling my GM about this yesterday 'cause he hired a facilities maintenance guy. So we hired a technician. who is a facilities maintenance guy, and I said, hey, be careful.

Yeah.

Um, because it's the opposite business, and it's the business I came from.

Opposite business. Uh, opposite business. Yeah.

How to reduce as much spend as possible on these, on whatever you're fixing.

Yeah.

And when I realized that click, like, oh, home services is a revenue generation game, it's not a Band-Aid Mickey Mouse as long as you can game like you do in facilities maintenance. Like fixing it is not necessarily the end goal because sometimes there's better options. And that's how you also get to higher ticket sales is through options. It took me about a year. I unfortunately didn't realize that for a whole year. It's like, why am I not growing?

For some people, it takes their entire career because they just misunderstand the business that they're in. There's that Ray Kroc thing where, hey, we're not in the burger business, we're in the real estate business.

Mm-hmm.

And I think that's where people get tripped up here is home service is a marketing and sales business. It's a consumer business and we happen to do plumbing, HVAC, or electric. It's a marketing and sales business. And we bought We've bought a lot of companies over the years, and we've I've seen this a lot just in the trades—is people not understanding. Maybe they don't like it. Like there's people that are grumpy about the fact that it's a sales business, but like it's a sales business. Like them being grumpy doesn't change what it is. But yeah, like we we bought a business that was a drain cleaning business, and they'd been around forever, and they didn't replace drains. All they did was clean it, and it's exactly that mentality of like oh well. Just start offering the replacement. You don't have to force anything down anybody's throat, but just start being like, "Hey, do you want to pay me twice a year to clean this drain, or do you just want to get a new one and be done with shit on your floor?" And it wasn't like that complicated of a problem, but like they just could not get over it. They just couldn't get over it. They're like, "Well, that's salesy," and I'm like. Yeah, you're a business. Like, that's exactly what this is. That line is called sales.

Sales in, in home services and with, with home service technicians is, is almost a bad word. And it's, it's really discouraging because people have this mentality that sales is a bad thing. But that's one of the keys to starting a good sales program is actually the culture surrounding your sales program and getting your team and Everyone on board with this idea that sales is— I mean, there's obviously a version of like manipulation and like bad sales tactics that have ruined a lot of industries. But sales in itself isn't a bad thing. It's not a bad thing to give the customer options for the best possible outcome. And the only way you can do that is by giving them those options. If you are going to take over and say, hey, no, I'm telling you, you're going to fix, fix, fix. Yeah, like you said, clean the drain twice a year. You're not giving them the option to repair. You're not actually allowing the sale and you're not allowing the best outcome for the customer. So yeah, I think that's the first big step is like, how do you change the culture around sales? John, what's— I think this— I'm going to open this up as a question. It's like, what, where, how are you focusing culturally on, on putting sales as a driver in your business.

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/OAO.

So yeah, we usually attack it from a couple of different ways. The first one is from the customer side, like what's— what is the benefit to the customer? And you just said it, like we've bought companies that it was honestly kind of manipulative. So that drain company, what they said is like, why would we want to replace it? We get $200 to $500 a year from them. And it's like, because it's the customer's basement has sewage in it twice a year. Like, why would you? Like that feels wrong to me that we're not talking about that option. I've also had people who have done like four thousand dollar repair tickets on an air conditioner that was installed in the nineties, which also feels wrong to me. Like they don't want to have. They're uncomfortable talking about new equipment because they don't want to seem like they're being pushy, but that literally would have paid for a new air conditioner. So usually it's like, hey, this is why this is good for the customer is because this is the customer's home. It's not your home. Like they have the right to choose the right thing for them, but they do need to know. Like our job is to educate and we don't get to make these decisions for them. And we're not here to be deceptive and like just try to steal money from them once a year fixing a 30-year-old air conditioner. And to me, that's like, that's theft. Like, that's, that's just like wrong. But people think that it's right, which is like kind of silly. So we have to like educate them on like, hey, that's wrong. Like, if, if they switched, it would probably be better. And even if they don't switch, you do need to talk to them about it because you just like Not presenting an option is pretty deceptive.

Isn't that part of your pillars actually as well?

Yeah. Yeah. So one of our, one of our core values is transparency.

Actually, it's one of our core values.

Yeah.

Let's go, buddy. Ironically, we stole that from you when I went up to the first Breaking 5. So it was actually one of our core values.

Yeah, it's good. So it's, we educate We sell through education, not fear.

Not fear.

So for us, we're like, we're going to come in, we're going to educate, we're going to explain your options. You can pick whatever you want. But just like it's wrong to be incredibly pushy and present the wrong stuff, it's also wrong to not present and only do expensive repairs that don't benefit the customer at all. So a lot of technicians, they think they're like doing the right thing, but honestly, like they're stealing from the customer. So we present it that way because that, that's what I believe.

I think that's a great point though, is, is you from a cultural standpoint is where all this starts. So I'm trying to like look at this, how to, how to generate sales as a framework. And the first thing is to destroy this idea internally that sales is bad. Yes. And to offer— right, you can't just say that. You have to actually offer the, the following solution. And the following solution is, hey, we don't want you to do the manipulative thing either. We want you to come right in the middle of giving options and educating customers on exactly what is out there in the market. Right. I always try to give the example to new employees, especially like right out of school, is if somebody is looking at my car and they're doing an oil change and they notice, hey, your fluid's low, or hey, your brakes have 1 millimeter left on them, on them.

Yeah.

I would actually like to know that. And then you can present the option like, hey, we could fix this for you. you, or you can go do this somewhere else. We don't— like, we love— we're here right now. Like, it'll be cheaper for you, better for you.

Yep.

But it's that education of like, dude, you're at 1 millimeter left on your brakes, or you have this much fluid left. Like, you should definitely change— get some steering fluid in here, and you probably have a leak somewhere. And if they didn't and I left and then my brakes failed on the ride home, like, that, that's like the key example in HVAC is you You don't educate the customer on a new unit and you walk outta there after a maintenance or after like some small repair. And then their whole system blows up and they're going, oh, it's you guys. You guys sabotaged my system. And I, and, and I have to explain to them like, we don't have time delay fuse sabotage tools on our truck. Sorry, buddy. Like it's just an old system. But if you didn't do your due diligence, like it hurts the company and it hurts the person.

Well, not only that, you're actually, you're actually legally liable.

Yep. We're the last one who touched it.

So, so the biggest, um, We've had people that have attempted to create insurance claims against us because the boiler went out, the furnace went out, there was property damage, and they're like, hey, you didn't tell me you didn't replace the system. That's the actual line that they give us as if I could force them at gunpoint to replace their system. So we've gotten letters from attorneys saying that, and we're always very diligent about not only do we present the option, but we record that we presented the option. Because this has happened enough times where someone didn't replace their boiler and then the house froze because they were in Florida and there's a half-million-dollar claim. And they were like, you were there last. And it's like, absolutely. And we told them the boiler needed to be replaced.

We had that for more than a couple of years.

Honestly, it happens 4 or 5 times a year. Now, thankfully, the biggest one I'm concerned about, we've trained our team around this, but hey, like CO2 is like, you don't fuck around with that. Like that can kill a whole family real quick. So if you're not talking about it, like you have to condemn it, you have to talk about it. Um, so again, like it's not pushy. Like this is real. Like this is real. And so that's a part of our education process too. is we pull up the times that, hey, we didn't talk about this unit, this is what happened. In this case, we did talk about this unit, this is what happened. But often, the technicians get pulled in to talk to the attorneys on the other side to discuss what the findings were. So we have to have good notes, we have to have good photos, we have to have good options. So that's most of it. It's like we are educating, we're protecting the health, we're protecting the house. And we're offering real options. And honestly, we don't even use the word sales.

Yeah. So, so once you get past that point, right, I think that's the— and if you disagree, I'm, I'd be open to it. But I think that's the first big step in driving a sales program in your business. What's the next step that you, you generally see or you generally recommend?

Training them how to do it.

Okay. And what does that look like? Are you doing any specific programs or—

Yeah.

We've talked about, you know, NextStar and What's the other one? It's a certain path. Certain path. Thank you. But there's a bunch out there, right? Joe Krishna.

Chris Serra.

Chris Serra. Thank you. My mind is overcaffeinated and tongue is not working today. But there's a series of programs out there that all work different sales techniques. Like, where do you recommend people start? Or like, what's the next step, I guess?

Yeah, I'll give some quick stuff to avoid. So I would, I would highly recommend avoiding one-time trainings. Uh, I think it's really flashy and it's easy. And, um, you, you build a business by like building a system and building a process. So sales and training, uh, you know, the way some influencers on the internet talk about it, it's very rah-rah, it's very all that stuff, which you're like, that is a part of it. Like you have to keep up motivation, you have to do all that. But it's also pretty systematic. Like, hey, we have to have training, we have to have ride-alongs, we have to have measurements. And one-time trainings are really expensive and they don't drive long-term results. So because what happens is if I send my entire company to a training tomorrow, but I don't have a system for them to come back to and continue to drive improvement from that training, Waste of time, waste of money. But I see a lot of people saying like, yeah, we just sent 5 people to this training. And it's like, awesome. Like, how are you going to help support them when they get back? Well, I don't know. They're just going to do better. And it's like, dog, you were just sold a bag of goods, man. Like, uh, I get it. Some people are really like passionate or whatever. And you know, they can take advantage of people not thinking, but you should be thoughtful about how you're going to, um, So don't do big one-time things and try not to make it overly complex. So the way we do it is like, hey, for— I think we're on like year 10 of this. We at least have one training a week, sometimes 2, depending on the team, where we're just, we're talking about whatever's going on, like how to price, objection handling, financing updates, Option building, quote building. So once a week we're diving into all of those things.

In that sense though, right, you say these things and, and I think this is an example of where you start on step 2, is you're saying, hey, yeah, you just train objection handling. But for a lot of people, what I've noticed is they don't even actually know where to start with objection handling. So like, where did you start being like, okay, objection handling is this and this is where we're getting data from and trying out different things. Where does each of those individual kind of items start to come in?

So there's a few places to start. Some of it's just asking your guys, what are you running into in the field? The other is just going out and doing ride-alongs. But an example of an objection is like, I need to talk to my spouse. That's an objection. Anything that, if sales is a hallway and there's open doors, which is a chance for the prospect to run out the door, You have to just be able to close the doors as you go through the sales. So if you go on a ride-along and you get a sense of like, hey, where are the areas that we don't make a sale today? Like what happens? Maybe it's a financing rejection. Maybe it's need to talk to my spouse. Maybe it's this is too expensive. Maybe it's I'm getting other quotes. Like whatever the objection is, how to handle that objection is a really important part of the process. Because otherwise it stops there completely. So if you're not able to handle the, well, I have to get other quotes. Well, yeah, walk me through why. I mean, I felt like we had a good conversation. I think we're presenting what you want. The price seems to be within your budget. We have awesome financing options. Is there a reason that you want to find other quotes? So how to handle each objection is helpful. So the best way to get that feedback is asking your guys like, hey, what are you running into? out there. And don't just take, oh, the competitor was cheaper. Like, that's not an objection, that's a lazy salesperson.

Yeah, because I mean, right, sales is— if you don't, you usually run into objections. I like the hallway metaphor because, yeah, your job is to close the doors.

Your job is to close the doors.

And that's where you need to be able to drive the training, is what doors didn't you close and why. And usually it's a value— the door is a value door, whether that's internal value or actually cost, but it's generally almost Never cost. I shouldn't say almost never. I should say it's a much lower percentage of the time than your technicians would like you to believe it is.

So yeah, they love to think that. We actually have an argument today about that because one tech lost a sale to another tech inside the business and that guy came in hot as hell. You know, he's like, ah, this guy stole my sale. He— you let him sell it for cheaper. And turns out that was actually not at all what happened. He sold it for $2,000 more, but he walked through value, spent more time on it, and presented financing. And those were things the first guy didn't do. And it's like, okay, well, here you go, buddy. What do you want to do? How about you just get better?

Yeah. And so, it ends up being value, and there's a few pathways for value. It ends up being trust. They don't trust you, they don't trust the company, which is a great one. That's the the typical, hey, I need to talk to somebody else, or we need to go get more quotes. It's because you didn't spend enough time building rapport and building trust in who you were personally and the company as a, as a whole. And then there's a series of pathways to go down there. And so these trainings, I think there's one more too. I'm missing something.

Well, it's, it's why you? Yeah. Why now? The 3 whys. Can I afford you? Like, why you? Why now? How can I pay you? So those are the like, hey, why Wilson? Why would you work with Wilson? Well, our installers are the best. We install the best equipment, whatever. Why now? We have this special promo. You want to get your AC in before whatever. You want to do this before property damage. Can you— can I afford you? Absolutely. Here's our awesome price. Here's the guarantees that make this super protected. Here's the 20 different ways to finance this. So why you? Why now? How can I afford you? Most home service companies don't stall because of demand. They stall because they run out of good people. Finding solid help fast is hard, especially in this industry. And that's where Quick Staffers comes in. They help home service companies build reliable virtual teams that actually understand how the trades work. Quick Staffers provides vetted remote staff who are already trained on ServiceTitan and use proven SOPs, same as the ones that I use at Wilson. These are VAs you can plug in from day one to handle customer service, Lead follow-up, scheduling support, and a ton more. They've been a huge help in scaling my team without the usual hiring headaches. Check them out at the link below.

Yeah, I think that's a huge one that a lot of people miss is is they they take everything at face value rather than trying to step back and frame it from a psychological and sales perspective. Is hey? Yeah, I mean sales is a system.

Mm-hmm. Like, and the system is solving. those 3 questions and then training it into your team. Because those 3 questions is every objection. Why you? Well, that's the 3-quote thing. That's the you're too expensive. That's the whatever. Why now? That's the let's create some urgency and get the sale today. And how can I afford you is all of the value stuff.

Mm-hmm.

You know, like, hey, do you have financing? Is your install stuff the best? But like, if you answer those 3 questions, that's how you design a sales program And sales training.

And I think sometimes we get spoiled in this industry, by the way, because like those questions are a lot harder for like an e-commerce product. But for HVAC, it's like, why now? Because it's 100 degrees out and my AC doesn't work.

Sometimes. I mean, right now we're in April. So like, why now is like a real question. It's going to be 30 degrees this week.

I agree. I'm just saying like the people that see like massive swings in their on and off season, a lot of it is due to a lack of a sales program because Obviously, there's a lead difference and there's a call difference, but at the end of the day, right, um, like part of the reason that we get so spoiled is like my plumbing isn't working, my toilets aren't flushing today.

It's needed. It's needed.

I can't use the restroom in my house. Um, so we do get spoiled, but that's, that's a great point. So we do 2 trainings a week as well, or on and off depending on the number of individuals we have. Um, training 1, is numbers. Why are your numbers this way? Let's go over metrics, let's go over data. And then we are— training 2 is roleplay. It's, hey, this is how we handle these objections. We've seen a lot of price objections recently. That means we're not doing X, Y, and Z properly. What does your trainings look like? Yeah, what does your training look like? Is it kind of similar?

When we started to build our first sales training program, we thought every single lesson had to be like totally custom and bespoke and all that. And we found out it really didn't. We're— you're basically handling like the same 5 or 6 things over and over again at a slightly different angle, but you have to repeat it a lot. Maybe there's new hires, maybe a financing program changed, maybe they just forgot. So you just have to repeat it a lot. And that's why this is so systematic. If you send your whole team to a one-time sales training, you expect that to be your ticket to success. Like, that ain't it. They're not going to remember that in 6 to 9 months. You need to have a consistent program of driving improvement in order to, like, really drive a sales program. And it helps get them more comfortable to sell the big jobs.

That's, that's one of the huge keys. It's like it gets them more comfortable role-playing. As much as they'll gripe about role-playing, huge key.

We role-play like crazy.

Huge key. But also, I think a big important part of this too, is as you start these trainings, one of the mistakes we made is products don't generate sales. So what you'll hear a lot from your team members is, hey, Jack, if you buy this new jetter, I'll be able to sell jetters. Or hey, if you buy this Laundry Pro, we'll be able to sell Laundry Pros or AC Renew, we'll be able to sell AC Renew. And then you'll do a training on them. Yeah. Like, here's the product, how do you talk about it? But it ends up being in this one-time training category. It's unless you are going to take a product and really forefront it with training over and over and over again. People don't generally sell new things outside of their box. And so it takes a lot of work to actually understand how to sell something and the value proposition behind it. And so one of the big mistakes is we, we give very little effort past that first initial thing, and then we'd sit there and go, why aren't they selling this product that we bought 10,000 of that we need to move? And it's because we just, we didn't do the training properly. And so training is a huge portion. Don't— especially when bringing on new products or SKUs that you think that will, will really drive the business. A lot of times it's like IQ, water quality, big ones.

The third. So we've talked about 2 so far. So the first one was like the question was, how do you do this? So the first is you explain to your team why, like, why do we do this and why is it good for the customer? And like, what are the— like, what's the real implications of not just presenting people with the honest truth about what they can do? The second is training your team. So like, hey, here's how you do this. Here's how you talk about it. Here's how you handle some of these objections. Here's how you bring up options. And the third one is incentivizing them to do it. So that's commissions, that's bonus programs, that's contests, however you want to think about that. A lot of different ways to do it, but that would be the third step where, hey, you come up with a program where your team gets incentivized to be excellent at their job. So one of our key metrics is what number of options did we give per job? And we want to see it at 3 or above. Usually we're like 2.8 to 3.1, but it is a— That's honestly more important than the sales number because that's gonna tell you what sales are gonna be. So that's our biggest indicator of like, we have to be working with this team member, is their options are too low 'cause they're just not presenting what the customer could do.

Yeah, because options and packaging rolls into closure rate.

Average ticket, closure rate, total sales.

Which then rolls into average ticket, and then which rolls into, obviously, if your average ticket goes up, your total sales go up.

Almost every sales problem plumbing, HVAC, and electric can be boiled down to number of options.

Number of options, quality of options, and packaging. Packaging has been a big—

It starts with number. Yeah, number's the easiest to identify. What's your number of options? Are those options good? But it starts with number.

I mean, so you say it starts with number, but again, I think that's for a lot of people, that's a step, that's a starting on 2, because, well, you don't just throw options. I mean, I guess that's not— because if you throw options at the end, like, yeah, you might hit your team member might hit occasionally. It will obviously, if you don't do options, like you'll never get the option to actually sell more. But upfront, right, it actually starts at how your discovery phase when you talk with a customer, because if you jam in a bunch of options at the end that they never asked for and were never interested in, like, yeah, you're not going to see any improvements. It's building rapport early on, asking questions, doing discovery, the thermostat, Yeah. Um, the whole nine. So, you know, sales is such a big broad topic, it's really hard to, to do this framework in 30 minutes because like there's so many like, oh, but you— we're supposed to do this first and you have to also make sure this is—

Well, I think as you're thinking about spinning it off, like, I, I think we gave a good framework, which is why is it important to the customer, how can the tech do it, and then why is it important to the tech, what's the incentive structure. And if you can solve for those 3 things and create a sales program on the why this company, why now, and how can they afford you, that is going to be— that's going to solve most of your problems.

Mm-hmm.

And you can just create a sales program honestly with stuff off of YouTube. Like, hey, this video gave you the framework for how to create that program. But then objection handling is a comp— like you can search objection handling and you can find How to handle the, I need to talk to someone, I need more bids, like easy things to find on the internet.

You know who surprisingly does it well too? I will admittedly say I've watched my share of these videos, is like the door-to-door knockers, whatever the case may be. They're monsters at objection handling.

Dude, we just moved, we actually just moved a canvasser to HVAC sales.

Yeah.

And his first week he did $40 grand.

Yeah, I believe it, man.

That was last week.

Hard business to be in.

Yeah, it's crazy. That was really cool. So we're thinking about more because I think they're just good. They're good. So yeah, his first week, he killed it.

Sweet. Okay, so we have the big 3 questions. We've changed the culture in our business.

Yeah, drive consistency through your training. Explain why it's good, incentivize.

And then you incentivize property. I think that's pretty straightforward. Maybe it's not.

Yeah. And there's a lot of programs out there. CertainPath, Nextdoor, Joe Corsaro's got a great program. You can also just look on YouTube if you're budget strapped. And I know with Nextdoor, I think CertainPath's this way too, you can join those programs pretty small.

Yeah. And then I think a big one that's overlooked is community, right? I'm not Nextdoor, I'm not CertainPath, I'm not anything. I'm a product of Twitter and asking people, friends that I know who are in HVAC companies, like, hey, how did you— how do you handle this? Like, we get a lot of this. Is this an actual issue or is it just me? And yeah, a lot of times it's just me and that, you know, let's work out how to solve it. So network.

We have a— we have this thing. I have a group. that shares KPIs from our sales teams. And it's kind of funny. And, um, oh, what are we called now? It's gone through like a few name iterations. I think it's called like the Thunderdome. But, uh, but yeah, it's like 10 contractors. I think the smallest one's like $15 or $20 million and the biggest, uh, is like $70 or something.

Mm-hmm.

And we, we share average ticket, Number of jobs, conversion rate, like total sales, total revenue, and it's it's pretty interesting. So like yeah, talking to peers and like understanding hey what is another company doing and how can we drive to their performance is a very helpful part of the process. The bigger the company gets, what I found, the more they look externally to see hey how are all these other companies doing and how can I take those lessons? into my business.

Yeah, no, that, that— I mean, so the first Breaking 5 where I saw your numbers, your average ticket on plumbing sent me down a rabbit hole for like 2 months on, oh, this is possible. Like people are driving average tickets in plumbing at $2,000, $3,000 average ticket. Like, how do you do that? What do you sell? What's the sales process look like? I think that that's a big portion of it is what is possible and how do you get there?

We're about to turn that group into like an app. Which I think would be kind of fun. And because what I want to happen, I think this will be exciting. So right now it's just the owners looking at it. So what we're going to do is we're going to— and we're doing this for our own business. You're my business, Jack, because we have that spreadsheet called King of the Hill where we compare branch sales, branch revenue, highest sales, highest conversion rate, all that stuff. We're going to turn that into an app. And then what we're going to do is we're going to blast each person in the company every morning through text, their score and how they ranked, who was ahead of them, who was behind them. And then we're going to take that and we're going to take it to this group, which I think is going to be hilarious. So soon it'll be 1,000 people in the program getting a text every day on their performance. Most marketing agencies will show you clicks, impressions, and maybe even traffic, but none of that really matters if the phone's not ringing. And that's why we partner with Service Scalers. They are built specifically for home service companies, and they focus on one thing, which is driving real high-quality calls and book jobs. This is a no-brainer. They're offering a 60-day money-back guarantee on LSA management, Google Business profile optimization and website builds. If you don't get more visibility, more calls, and better leads, then you don't pay. If you want more booked jobs without the marketing headache, click the link below and book a free strategy call with Service Scalers.

And, and like you mentioned, uh, incentive, right? We talked about incentive. Incentive isn't always necessarily monetarily driven either. Yeah. Like, yes, most incentive is monetarily driven. Yeah. But there's also an incentive, uh, which I've noticed, including myself, of like high-end Type A personalities who are really focused on being the best in whatever business that they're trying to achieve. Yeah, like they need something to chase and that's an incentive is I won king of the hill today. Bragging rights. Like, hell yeah. Huge.

Hell yeah. Huge.

Oh yeah. So I just wanted to be clear, like, it's not— you don't need to go out and spend an extra, you know, 10% of Yeah. X, Y, or Z to necessarily build a sales program for incentive. You just need to be creative and see where the value's actually at.

Awesome. Well, hopefully this was helpful to people. If you like what you heard, make sure you like and sub. If you wanna join that group, I think we're probably gonna open it up soon 'cause we're trying to get more people to compare to. So let me know.

Yeah. Also, if you have any sales questions, drop 'em in the chat 'cause that'll be fun.

Yeah.

That drives our next conversations.

Thanks.

Peace.