A garage door business owner explains why he's drawn to the industry: recurring revenue from maintenance contracts, high margins on repairs, and customers who need you fast. He walks through his marketing system and how to scale a service business.
Garage door business only because we have proximity to this business. Tommy Mello, I just talked to him this morning. You know, I was trying to get him to come to Scottsdale to come put on a workshop for you guys at the live event and teach some of their techniques. But Tommy actually does tours for anybody that wants to get in the garage door space. I've hooked up Tristan and Alex, I've hooked up a number of people with Tommy because his methods and models apply to all of these businesses. It's not just. It's not just the garage door business. He happens to be in the garage door business with an average ticket price of 3,800 bucks. But if he could do it all over again, he wouldn't have gone back in that business. What Tommy really has is a really good marketing system. The marketing is on point and he's building people in the business. He's big on leadership and building the technician and going, okay, you know, you come off to the street to me, and you're 24 years old and you can make $80,000 your first year and 120 your second year, and you can get paid vacation and you can get time off and we'll build a 401k program. He really focuses on the technician because in every one of these businesses, water treatment, plumbing, H vac, electrical, garage doors, each technician is worth $500,000 or more to the company. I pegged the values at a million bucks, a technician in the water treatment business. So that means for every single technician that you have on the street, they're worth a million dollars to the company. So six technicians should be doing 6 million bucks. 10 technicians, you should be doing 10 million bucks. Every one of these is going to have a cutoff point because of their ticket price, right? If I sell roofs, and the average ticket price for a roof, a roof job in the central part of the country is $15,000. That's my average ticket price. In California, the average ticket job is $50,000, right? And so there's different degrees of that, right? There's the $30,000 job, which is the small one, man chuck in a truck. There's the medium sized business that doesn't have any exposure and any marketing. And he's booked out, you know, eight to ten weeks in advance. And then you have the premium, most expensive guy, he's $65,000 to do it, but he could be here on, on Wednesday and they can knock it out in a week. Now, there's different, varying degrees of that, but every crew, every truck in the street, every group of technicians should be worth 500 to a million dollars. And what Tommy focuses on is the quality of life for the technicians because the people grow the business. More technicians, the more people he can educate, the more people he can show how to make 80 or $120,000, the more that business is going to do well. That's why he's doing $400 million a year, because he's grown just this behemoth. Then he uses acquisitions and he buys companies and he folds them back into the fold of what he's doing. So instead of going to a new market, she calls up his marketing company and he goes, okay, I want to come to Orlando, I want to buy this company here. How much am I going to spend in SEO, advertising, Google to dominate this market? What's my budget to do that? And so he already knows how much he's going to spend. He already knows his average ticket price, he already knows his profit margin. He knows the lifetime value of a customer. He knows the commercial work, he knows the competitors, he knows everything about it. And that same playbook is what we're going to do in 2.0. Right? Like after you buy a business, I'm going to help you get to that 2.0 level and figure that out that same. Because it doesn't matter. Pest control, I still got to know what does it cost me to get a lead? How much does it cost me to Convert a lead? $17 to 170 to lifetime value of, I mean to annual value of 600 to lifetime value of 2600. Like those are the four metrics I need to know in every category. Pest control, H vac, plumbing, electric, pool services, towing and repair, garage door, same playbook over and over and over again. And I. And so a lot of the, and all of these are interchangeable. We don't have to spend a lot of time on, on every single one of these. And why I just want to hammer home the point of it's the 2.0 model of who's the CMO, who's doing the bookkeeping, who's doing the scheduling, who's doing the hr, who's doing this. You know, it's a million dollar bench of people to do to get clients to grow this business, to systematize the business. We want to be able to digitize this business. Okay, whatever category we're looking at, let's just keep doing a few more of these so you understand why.
