DO NOT CHARGE LESS THAN $100 PER HOUR!

Mike Andes argues home-improvement and service businesses should charge at least $100 per man-hour to cover rising costs and deliver premium service. He walks through the math: spend $1,000 on marketing, get $10,000 in revenue, keep $2,000 profit. Skillshare rejected his course for being too focused on making money.
Chapters
Now, if we want to talk about controversial things, I can do that. So let's go ahead and get started.
Good morning.
Down at the property here for headquarters, where all the material was delivered earlier this week and just kind of spend some time. Had some work to do on emails. I was like, you know what? Might as well hang out here. It's so peaceful. I really love it out here. It's quiet. This is gonna be a great spot for us, and I'm really looking forward to it. Yeah. Just spending some time sitting next to this massive forklift thing that I have really no idea what it's called and answering emails. It's gonna be pretty cool when all of this stuff gets turned into something actually looking like a building. I don't know how people do this like this. This is beyond my pay grade. Telling you what, man.
All right, I'm running late. Got two minutes till I need to be at the gym. Anytime fitness needs a new gym manager, new office manager. So I gotta do a couple interviews and knock that out right now. Couple really good meetings this morning. The first was the mastermind with the franchisees, and it's like 45 minutes long, a little bit longer than usual, but we actually went over a couple different properties that one of the franchisees is considering for either buying a house and doing some investing or potentially getting a shop space. So we actually looked through three different options, and it was super insightful. 78 acres. Oh, my word. I love this deal. You're gonna have a little bit harder time financing this, probably because it is a double wide, but, dude, I like this property. You could get into this deal for less than $1,500 a month for your mortgage. Oh, look at that. $1500.22 per month on your mortgage. If you got a FHA loan, you'd come down with, what, 3%? So we're looking at, like, you know, 8, 9 grand. You could probably get it on this property. I like that. This one I like right off the bat. When I look at this property here, I think that you might have issues with neighbors because you're next to a main road. This is all residential, single family around you. And this kind of exposure to, like, you probably have some issues with theft. It's been on the market for 74 days or 64 days. Dude, we should get this for 200 grand all day, every day. The next call was with my GM out in North Carolina, which is Chuck, and he's actually becoming my regional manager as well as a franchise business consultant. So he's going to travel the country and manage my locations that I own personally for Augusta Lawn Care. And he's also going to help from a corporate side with coaching the franchisees on their. Their coaching calls. So talk to him a little bit as well, because this transitioned for the new GM that's going to take over that location. You know how it is. Like, in three, four weeks, you could have two new guys and two guys have left, right? It's like, I'm of the opinion now where it's like, if you're in the middle space, just hire and like, at the very worst, you don't have enough to do, like on Thursday or something. It's like, okay, well, then you're just gonna come with me. We're gonna do estimates together.
Because ultimately I want him to work with these guys to build that bond in that relationship. I don't want to say start to separate myself out of it, but at least I let him get that in the field. They respect him. They like that there's not that division when he comes back from training in September, like, we're now. They're already like, oh, man, it's just one of those things. Like, I want him in the field as much as possible right now. Learn the yards, learn the equipment, learn the guys, learn all of that. How, how the apps work and things like that. What, what I'm looking for things like that so that he can just be with the guys as one of the guys, but then pull them and separate them out kind of thing.
But yeah, it's basically like either buy or start new, right? And I think what I want to do with you and my, my, my goal with having you a regional manager is I want to systematize the process of, of opening up multiple locations. If we just start 10 tomorrow, we can be confident, be able to say, here's the steps to do that. You need a regional Manager, you need 10 GMs, and, and here's how this is going to look. Here's how much money you're going to need. Here's how much revenue you can expect the first year, second and third year, and really start to build up a business model for something that doesn't exist right now.
You probably were really good at handstands.
Or flipping stuff like that. Flipping, yeah, for sure. Acrobatics. I think I could do pretty good at that stuff. What is this stuff? Raw protein. Now we're talking baby.
Syntha 6. Oh, yeah, baby. This is good stuff.
Dark chocolate.
Let's go. New supplements come in the Box.
Good stuff.
I like this brand right here. Haven't even tried it, but just looks good. It's a fire sale. Get rid of it fast. Mercy. Gotta get rid of this stuff. 50% off. Looks like we found ourselves a manager finally. What we're gonna do is have her start for one day. A lot of times people think like, oh, I'm gonna work at work at the gym and I'm just gonna be like, lift weights all day long and play with my friends. Like, no, it's a job. You do accounting and you clean the gym and you have to talk to people and do sales and you do calls and you do emails. It's a job. So have them try out for one day, make sure they like it, and then we offer them a full time business video.
Okay, this is nuts. So you won't believe this.
So thanks for reaching out about your course about how to turn your hobby into a business. Unfortunately, your class still doesn't meet our class guidelines. Since we found the merchandising is very monetarily focused.
Skillshare literally is not letting us post a course on their platform because of how I'm explaining return on investment roi.
Classes may not reference monetary compensation in their title. Title or description or focus too much on earnings within their content, which is like kind of what a business.
Basically, like, don't make money.
Yeah. Don't make money following your passion. Which I feel like is so weird. Like, why would you even put a business like category on skillshare?
I'm going to show you on this whiteboard what they literally. So they, they say, we can't have you on the platform. Like, okay, give us specifics. And like, well, you can't be telling people they're going to lose a bunch of weight or make a bunch of money. It's like, okay, great. All right, that's fine. Where in the world do we say that? In the MBA for entrepreneurs.
But yeah, then they're like, moreover, classes should not focus on passive income strategies.
Promise fast followers.
We don't do that.
We don't talk about passive income.
We don't. Or guarantee or promise specific outcomes for students.
We don't.
Which. We don't.
Weight loss income.
Yeah.
Rank or follower count on a platform. Okay. We don't do that. Yeah. And then we're just talking about, like, what business? Like, how to choose a business. Yeah.
If you look at our course, it's literally like how to choose how to choose which business is right for you and how to do business. Plan how to do business. Plan how to get started. Just finding, like, what you're passionate about slash what can actually make money. And then specifically, I emailed them back about. I was like, in lesson five, we're like, do not fall for the scams about fast cash earning money, like, easy money. I was like, we literally talk about that in one of our lessons.
Like, well, we'll give you an exact quote. And literally, this is the part where they said that I am falsifying the ability to make money.
So I was like, could you point out exactly what I need to change? Because it just sounds like you can't.
Have a class about, we're gonna keep you all poor, so you just keep coming back for more basically useless skills.
We're pointing you to becoming a struggling artist.
Yeah. We want you to learn how to really get your crap and not be able to monetize it.
But no money.
No money.
Arch would be free according to.
So we're gonna make you pay for this service.
Yeah.
But we are against capitalism. No money.
Yeah. So, yeah. How to turn your hobby into a business. Like, you should start a business. Good qualities of an entrepreneur. The entrepreneurial trap. That's the one where I'm like, we tell them to watch out for stuff like that. I feel like that's. That's a pretty clean, regular course on just like how to start a business.
This is what exactly I said inside the course. Okay. And this. Remember this course, I don't make any money to put this course on skillshare. It's like top of the funnel awareness for the brand, but more importantly, just walking people through how they can take their hobby and turn it into a business. Okay? So I said, if you spend $1,000 on marketing, okay. Cost in your business, and you're able to get a 10x return in terms of revenue and make $10,000 in revenue, and you're able to have a 20% profit margin. That would mean that you get $2,000 in profit off of that $10,000 in revenue. What that means is you just doubled your money. You took $1,000 in marketing expense, and you turn that into $2,000 worth of profit. And they said. They said that I was promising money and that I'm like, look, this is basic roi. And then we wonder why everyone just like, oh, I'm just gonna, like, put my money in a 401k for the rest of my life. I'm not gonna invest money because they don't learn how to actually take money and multiply it using a business. Okay. And the Entire course is about making money. This happen, taking $1,000, turning in $2,000. How is this a scam? I don't talk about promise of earnings, I don't talk about anything but just simply trying to give you the tools to actually make a machine. That is a business that when you spend $1,000 in marketing you get $10,000 in revenue. And when you get $10,000 in Revenue, you actually have a profit margin of 20% where you can earn $2,000 in profit. I just don't see how this is against their rules and regulations. And I also it just like, hey, we want you to teach about creativity. It's like, okay, fine. But the biggest problem that creatives have is monetizing their skills. And that's why most of them, what was to say, broke. Very skillful, but never know how to actually monetize. And yet somehow skillshare doesn't think that this type of information is what needs to be on their platform. Just blows my mind. Like this is the, this is the extent of why I can't be on a course on skillshare is because I'm explaining return on investment and priority profit margins and how you have a return on your capital when it comes to your marketing spend. I don't get it. So what should the viewers do and say would like this content?
Yeah, if you would like this content and actually more of this content go to the MBA for entrepreneurs. It's literally just like cherry pick pieces.
That's the first module, right?
Yeah. Well, this is just a cherry picked piece of the lesson to like kind of break it down for people. Because apparently skillshare does not want us to share this course or the stuff that we're teaching. So if you guys want access to it, skillshare can't stop us from posting it on our own. Teachable. So check that out.
It's in the description.
Now if we want to talk about controversial things, I can do that. So let's go ahead and get started. First let's turn the lights on and let's get the recording studio ready to roll. I literally can do it in about three steps. Turn on the lights, turn on the recorder and turn on the camera like so. Alright, you still gotta turn more lights on. Boom, boom, boom. Yes. Very fancy landscape lights. Fantastic. $25 on Amazon. Okay, let's go ahead and sit down. Whenever you're gonna make a serious video, you must do it in a studio. Oh, that light's backwards. See this light in the middle here? The, the headlight or Hair Light, it's called Up Above. I use that for both. This one, this set right here. And then what I do is I spin it around.
Not tall enough. Mercy. And I spin it around. And now it is a hair light for the other set. Turn on the recording device. Action. Check one, two. Alright, we're good. All right. Oh man. No card in camera. What in the world? See, this is the problem with the vlog. Now we're, we have to transport video files every single day and trying to do them across what we call the intern or it's like a server, takes forever. So what I do is I take these little SD cards right here and I put them in the same spot every time in my car and I transport them to and from the office so that Steven can edit them in the afternoon. Big thumbs up for Steven. Okay, let's close the door. Let's put this SD card back into the camera because we're going to talk about controversial things. Actually controversial things such as?
Okay, cool. Action. Alright, so I believe that everyone watching this video that's in the home improvement industry, whether you landscaping, lawn care, roofing, fencing, cleaning houses, whatever it is, I truly believe that over the next few years we need to focus on one thing and one thing alone. And that is charging $100 per man hour. Now you might be thinking that's crazy. You can never charge $100 per hour for mowing grass or cleaning windows or whatever it is. But I truly believe that is what we must focus on in all of our industries is how do we charge $100 per hour that any crew member is on that property. And I'm talking about $100 per hour for the low level skill stuff, not the complicated driving an excavator, building massive retainables. You should already be over $100 per hour for that stuff. I, I'm talking about basic stuff like mowing grass, wiping up floors, cleaning windows. The basics you need to be at $100 per hour. I truly believe this. And we need to be focused. 100% of our time needs to be focused on how do you provide value to the customer in such a sense, in such a manner that there is absolutely no comparison to us. And the guy that's charging $30 per hour. It's very, very clear that our prices are way different and our value propositions are very, very different. They're going to show up whenever they want. They're not going to communicate well. They're, they're not going to have a professional website, uniforms or trained staff. We're going to have all of those things and deliver a great customer experience. And that's why we're going to charge 100 plus dollars per hour and they're going to charge 30, $100 per hour. We got to make $100 per hour. Why? Well, because of inflation, wage inflation. The cost of all of our goods and materials are going up, fuel is going up. And if you're not charging $100 per hour, in my opinion, in the next few years, you're not going to be able to afford the wages that you are going to need to be able to pay in order for people to be able to do labor's work. People are not going to want to work hard, they're not going to, they're not going to do dirty work. And therefore the only way to get them to do the work is to be able to pay them 25, $30 per hour. And the only way you'll be able to afford to pay them 25 or $30 per hour is to be charging 100 plus dollars per hour to the customer. Everyone's like, well, if you're only paying the employee $30 per hour and you're making $100 per hour, that means you're making $70 per hour. No you're not. You have to pay for all the overhead, the insurance, the cost of all the materials, you have to pay for all the uniforms and the marketing and the licensing and the taxes. And guess what? Taxes are going to be going up. So all of that to charging $100 per hour, you got to have one focus, one singular thing in your mind, and that is how do I provide value enough to be able to charge that kind of money? Because guess what? In every single industry, there is the Honda and there's their Mercedes, I. E. The Honda gets you from point A to point B, does the exact same thing. Yet it only costs 25 or $30,000 to buy a Honda Civic like my car out there. It's $22,000. Let's go. Now a similar model of a Mercedes will literally cost you 70, 80, $90,000. And guess what? It's still get you from point A to point B. And the reason there's a difference is because the way it makes the person feel while they're driving the Mercedes, look at that warm fuzzy feeling. It's a little bit quieter on the ears, it drives a little bit nicer, you get that nice torque in the wheel. All those good fuzzy feelings is why people pay 3 to 4x on a vehicle. You can say the same thing about Whole Foods versus Walmart and a whole bunch of other brands. And we've got to focus on our industry. How do we become the Whole Foods and the Mercedes of our industry? Because they're the ones that will survive. They're the ones that will be able to afford the type of wages that are going to be required to hire and employ people. And when I did that, I felt like Bernie Sanders. No Bernie Sanders. Alright, that's enough for the rant. Ending it off on a strong note. And that's why we're gonna charge a hundred plus dollars per hour and they're gonna charge 30. What was I talking about? $100 per hour.
Per hour. $100 per hour. I got distracted. Okay. Someone was delivering something. The front door. I know what it is. It's a.
Probably my.










