Maintenance Plans Your Clients Can’t Refuse in 2025!
8 Dec 2025 · 35 min
Mike Andes coaches a mobile car detailer on converting one-time jobs into recurring revenue through tiered maintenance packages. He pushes text messaging over email for estimates and upsells, citing higher response rates, and recommends building a strong website before spending on ads.
Chapters
Hey everyone, it's Mike Andes and today I'm going to be talking to a mobile car detailer that is trying to convince his customers to go from one time job and convert them into reoccurring work occurring revenue. This is going to be a must. Listen give you some ideas as to how you can take these one time jobs that are great and they're big tickets up front. But how can I convert them where they keep coming back every week, every month, every quarter or at least annually? That's going to be the key subject here as well as a host of other topics in this coaching call.
How are you doing, Mike?
Good, how are you doing? Thanks for being the first.
Hey, thank you. And I think you're gonna get that cold plunge, man. I just left my Amazon review so.
I'm trying to 99 left folks.
Okay, go ahead.
All right, so I'll try to keep it short real quick. I recently just started what I'm calling a side hustle basically until I can get my, you know, all my paperwork in order for the business and LLC and all that detailing cars. And I know that's a little bit away from your wheelhouse build or service industry. I'm currently doing about 1500amonth with about 10 cars. That's 150 a car. I have three to two.
Basically four budgeted hours scheduled by always complete it within two. And I'm trying to figure out whether or not I should set up myself for, you know, when you call the recurring revenue for a maintenance plan going into the winter.
Okay, just so I'm clear, what service are you doing? I just cannot hear you correctly. My bad.
Oh, sorry. Mobile car detailing.
God. That's what I thought you said, but wasn't sure. And you're charging $150 per car on average, is that correct?
On average I have smaller packages and bigger packages, but this is my main seller currently.
Got it. Okay, cool. And so you're telling same, hey, you still have some level of off season and is it during the winter and is that because it freezes and it's hard to clean the exterior or is it just simply a function of. That's like the lead just kind of stopped during the off season.
Like the winter, the leads, certain types of leads in the sense of washing the car on the outside and doing the car on the inside seem to stop. I think people don't want to present themselves to the best of their ability car wise in the winter. I think they're more focused on shiny in the summer and I think they want more wax products during the winter.
Got it. And do you do interior as well?
Yes, got it.
So what I would probably do is I'd probably be trying to set up a couple different packages and I would make the packages where it's almost stupid to say no to the package. So for example, you might do the first cleaning, it's $150 and like, hey, you actually can get your, you could advertise as your first one free. And then it goes towards your pack, your package. And the package could for example be hey, we have a monthly cleaning option, a quarterly cleaning option and then we also have where just annually you get a cleaning in the exterior for one time and then during the off season you interior only. So like you would just make three different tiers of packages. And I just made that up on fly. You could do a better job like what are those packages? But then you make the offer where you really promote it during the off season that your first one is free. And how is free is it gets applied to the package. And so no one comes in and just buys a one time visit, like one time job. If they want you, they can like hey, that's full price. And if they're like, well you said it was free. It's like, yeah, that's that apply you. We're taking the cost the 150 and we're moving it towards the $600 quarterly package. And that is over the next four quarters that we'd be doing service. And so I just, it just really be a function of like, hey, a la carte is essentially the like equivalent of just jumping into a package and saving a ton of money.
So let me try to make sure I'm hearing you right. I'm basically if they're not getting the a la carte service and they would like to opt in to the maintenance plan, I am charging them 150 and then just spreading that over the maintenance period. But I'm taking that money up the 150.
Correct. So you say, hey look, you know the first service is $150. I can do that for you next Thursday. Okay, great. All right, fantastic. Now we do have a maintenance package where we actually will come on a monthly basis. And what we actually do is if you sign up for that today, the 150, you don't have to pay me anything. You just are signing up for the monthly package. And that is going to cost X, y and Z dollars, which is a 40% discount compared to our usual service. Because you're on that maintenance plan and you could, you could have some sort of thing like, hey, if you cancel before the end of the year, then they owe you for the $150. That makes perfect sense because they've already agreed to that price. But what I really try to Even if you don't do like the promotion of join for free or get your first one free, like $150 off, even if you don't use as your promo, which by the way, free will work way better when it comes to your offer. Even if you don't do that. I would just really encourage the upsell process of. And we'll talk about this later today. And it's like, how do I go from a one time visit or a one time job to a reoccurring visit, ideally recurring visit, which is every single month I'm showing up. And I would just make those offers ridiculous because, you know, like if you clean someone's car every month, the second, third, fourth one is significantly faster than the first one. And so I would, I would, I would use the free offer. So we did this at the gym too. It's like, hey, you get a six week challenge for free. You get, you come, we do all of your diet stuff, we do all your workouts, et cetera, it's completely free. And how we are able to do that is you give us a deposit, you give us money, and if you lose £20 in the next six weeks, you get your money back for free. And if you don't lose the £20, it's still free because we're gonna apply it to the rest of your training. You can stay with us until you do lose the 20 pounds. And so it was just a function of being able to tell something people that the initial thing is free massively increases the amount of leads that you'll get.
And at first I was like, ah.
It kind of is slimy. I don't feel like they're really getting it for free. They're just getting a fund if they hit a certain target. But Honestly, we like 5x the amount of leads when we had a promotional offer that was said free. And so I would encourage two things. Number one would be trying to work in that free first visit, first offer. And then how I make sense of that is I roll them into a monthly package and that, that $150 is applied to the next 12 services. So now all of a sudden it's $130 or whatever it might be per service. And the second thing I would be doing is doing upselling. So when they have confirmed, yes, I want this service next Thursday. Great. Let me tell you about our packages that will actually allow this one to be free or massively discount or set off 150. It's actually only $99 as long as you commit to the next 12 months. And so I would just really, really work on those two things. Your initial offer and then your upsell offer. Because this, this, the game you're in is simply how do I convert people from one time jobs to reoccurring and ideally recurring jobs. So does that help a little bit?
Yeah, that helps. That helps tremendously. I've been thinking a lot about the maintenance package, but I think the three will really get them. And how I got a lot of the customers that I currently have was by doing their tires for free. If I thought their car was clean, but their tires looked a little shoddy, I go ahead and do that, give them my car and drop a dime. You know, how much, Since I'm just starting out, how much time should I currently invest in like SEO and designing the funnel for my website that be like the majority of my time that I'm trying to spend on or 50% of advertising time?
When it comes to time and money and spending on advertising, I do recommend the website be the first thing you spend time and money on. And the reason for that is because if you go out and do a Facebook ad campaign or a Google Ad campaign, or even the referrals that come in from people that you've done work for and they're telling their family and friends, if they come to a website that looks horrible, it's not a good look and a huge conversion. So for example, if one of the out of a hundred people show up to your website and actually convert from a viewer of the page to an actual paid lead, we can double the business by simply making that one out of 50. And so instead of you spending money on Facebook or Google or doing a campaign and trying to get people to talk about you, let's first fix the actual converting mechanism that takes them into a lead. So I would focus that online a lot. And here's the thing, if you're building yourself, spend three days, spend an entire weekend and just go through the thing like crazy.
You know, make sure I spent the entire bath. I designed a website.
I just, I kind of did what you said, you know, like the quote at the very top. The next barely scrollable down is the contact form and then I just have services underneath it Pretty much, yeah.
Like, I'm a big fan of your promotional offer being your first service is $150 free and you'll call for details or fill out this form. They fill out the form, you're getting a lot of leads, way more leads. If you do that, your conversion will go through the roof. And then what you're going to do is when you call them or you talk to them, hey, that is considering if you do a monthly care package and you come up with some fancy name for it, and that is, you know, you're able to give the 150 dollars for free because you're selling them a 1500 dollar per year subscription. And so you're willing to take that hit and say free. And it just is going to convert way better.
Okay, awesome. Okay.
Yeah, I think, I think that's pretty much it, man. And I'm going to listen to the rest of your book on your podcast and I appreciate all the work you do and I appreciate your faith, man.
You got it. Take care, brother. All right, next caller is coming in. By the way, when it comes to website stuff, I'm extremely biased. We have built hundreds of websites. It's not thousands by now, homeservice, web design dot com. So I am biased. But I do believe that the first dollar you spend being spent on your website and let's take money off the site table, the first hours, the time that you spend instead of doing door hangers, spend that time on your website. Because then going forward, every single, every single person comes to your website. The chance of them becoming a lead is so much, so much higher. All right, next caller is coming in from I believe Armorillo, Texas. Welcome to the show. Thank you for coming on.
Hey, Mike, how's it going, sir?
Good, how you doing?
I'm doing pretty good. Hey, my name is Frank Garcia. I called you about two years ago starting up my business and at that time I was doing about 60 because it was still like a side gig. And over the past two years we doubled that. So two years ago we did 120 and then last year we did. Or sorry, not doubled, but last year we did about 1 8.
Let's go.
My issue, I'm. Yes. And I. It was from the advice that I was given from you on just head down, move forward, work as hard as you can. I took all your tips and it's been a blessing. The issue that I'm running into now is like mentally trying to accept help in and be a little bit more patient with hiring an Employee and understanding that, like, teaching and coaching them to, like, help me in my business is going to make this whole thing flourish. So someone who is really, like, independent like me, what advice would you give somebody to, like, hey, accept the help. You have to be this way to, like, accept this and understand that if you move this step forward with somebody, your business will flourish.
Is it a function like you getting frustrated with them, Frank, or is it a function of, like, them making mistakes? Is it a function of you feeling like they're lazy? Like, why do you get so frustrated and feeling this way when it comes to employees?
So, you know, I've had the. The new ones come in, and it's like, I feel like it's kind of like maybe like common sense in one instance where it's like, hey, if we're not cutting any grass, sorry, we cut graphics. If we're not cutting any grass, drop the mower down. Or it's like, you know, something that should take me, you know, 15, 20 minutes on a yard solo is now taking 30, 45 minutes. So it's a little mixture of the two of the first options, A and B. So not necessarily the third option, but mainly the first two.
Yeah. So, like, I would first ask yourself, like, if you're going to take ownership of this air, and I think you have, given the fact that you're asking, like, what do I do here? And so if you're going to take ownership, it's like, let's assume for a moment that they don't change. How can we make sure that the output and the result changes, which is the jobs get done more efficiently. And when the crew doesn't have something very specific they need to be doing, they actually think with their head and they start cleaning the trucks or doing something efficient and profitable. And so I do believe you're getting this stage now when you have 1, 2, 3 employees where there's unmanaged labor, and that is employees doing work without you being around. And at first, when you first had your. When you got your first employee a couple years ago, it wasn't as bad because you're able to manage them with your eyes. Essentially, all day long, they're with you, and you're able to make sure they stay on task. And if they have questions, you're right there. They make you make sure they do a good job, they stay efficient, they're not stopping at gas stations, etc. And so now it becomes a matter of we've got to actually align the incentives of the employee with that of the business. And so have you looked at pay for performance at all yet, Frank?
Um, yes, I have. I just, I didn't really keep a employee around long enough and I think it was at the fault of my own, I'll be truthfully honest, to like incorporate that system into my everyday business.
Yep.
And so right now I had a kid who was more than willing. He just graduated high school and is wanting to come back. And I can kind of tell like the pay for performance would be a better alternative for him than just an hourly rate. And so I'm looking. I bought the book and I bought the book the off season just now before waiting for the phone call. And as soon as I was writing the review I got a dean. So I'll finish that up after. But like his right now, I feel like he's in that stage of life where it's like money is the motivator. And if he's making more for the P4P, like he'd be a little bit more motivated than just like stacking an hourly amount on top, if that makes sense.
Yeah, totally. And so I think, I think right now it's challenging when you're kind of like you have kind of a couple part timers and it's that switch to being full timer where they actually can care about PvP because if they are kind of hit and miss, they work some days, they some don't or they're very, all very short term. And you're kind of in that, that weird spot between solo operator and needing a couple full time employees that is tough to have P4P. It is very difficult. And so there are certain, like cultural things we could talk about in terms of how to keep people motivated. But I do believe as you continue to grow the business, the long term fix is going to be P2P. And what's nice is this, especially given that there's one, the one person working for you now is money motivated. I would just have the conversation really honestly with them as you start rolling P2P out, which is, hey, I don't know everything about this.
I just want to be able to.
Make you, to be able to pay you more.
And even if, because I'm assuming this.
Person is a pretty good worker and you like them and so it's like, hey, look, I want to be that as we grow people like you make more money here.
And so I'm going to be figuring.
Out the system and I don't know everything, I'm going to make sure you have a base pay that's equivalent to what you're making now. There will be no downside, but I am trying to figure out a way to be able to pay a percentage and that when so that as we hire and you say we the team, as we hire people, if they're not as good as you, they're going to make less. And furthermore it doesn't cap you from making more money because you are great and you are efficient and you do hustle and I really appreciate and so if you had that conversation with them.
You will kind of put some band aids on some of the inevitable mistakes you will make as you roll P4P out or even start to introduce it or test it. And in the book as well as on P4Psoftware.com and the free course about about it, I talk about like run the numbers in the background, whether it be a month or two, like there's a reason we have a free trial on that one is because like I just want people to get in there and start running some numbers and seeing what P4P looks like in their business once they manually put in the numbers. And so I would recommend that I would move in that direction and I'd have that conversation with that team member. Awesome. Best of luck to you. Great, great work and all on the growth. Take care. I believe text messages are extremely important when it comes to home services. I believe it's been this way for several years. I think it will only continue to be more important though as time goes on. Last year, early 2024, there's a huge amount of restrictions passed by the email providers of things like outlook, Gmail, Yahoo, etc. And they massively increase the filters on mass emails. Now the emails that come from your CRM, from your software, are going to appear like they are mass messages. They have links to invoices they mention, merge tags, merge tag. Think pulling data from your CRM, like the number of your estimate the number of your invoice, it's pulling in the address or the name of the customer. These are merge tags. This screams to email providers that this is an automated message. And so it has like a year and a half ago, a lot of people had a lot of problems with getting emails just through to customers. And I believe this will continue more and more and more. The reason is because when you're sending a email from your CRM, it is coming from a domain and a service that is sending out millions of emails. And because of that, too many email providers, it looks spammy, especially your first one or two Emails and unfortunately your first one or two emails are usually your estimate. And so here's the thing, there's a poll, 78% of consumers say they wish they could text with the business they are doing business with. The reason is, is because it's immediate, it's fast, it's quick. I don't have to open up my desktop, I'm not having to check my email. It just comes into me as a text message and reduces the phone tag and delays from email response time. You say, well, what's the industry standard? Well, I talked to ChatGPT the other day and here's the, here's the math. The open rate to just the open rate on a text message is 98%. That is compared to a 20 to 25% email open rate. Now, I see that being a little bit higher from the data I have at copilot, usually 30 to 40%.
So I use 30 to 40%. But according to ChatGPT, open rate on.
An email is 20 to 25%. Now, the time it takes to open like, okay, here's the thing. If we just switch from email to text message and just use that one stat, which is the open rate, what percentage of people open up your emails? Let's just say they're saying it's 20%. Let's just say, let's go higher. Let's go 30 to 40% of people actually get and open up your emails. If we just sent that same exact estimate in text format, we would double or triple the open rate.
And you know what people can't do.
If they don't open up your estimate? They can't accept it.
And so if they don't open up.
The email and they never see my estimate, I will never get them as a customer.
And furthermore, if they never open it up because it goes to their spam filter, then we aren't going to get customers. And so if you're not sending out.
Text messages for estimates, which we'll talk about later, huge, huge, huge opportunity to be able to go from email to text messages just because of the open rate. Now let's talk about time. The time to open the average text.
Message is less than 3 minutes. The average time to open an email.
Is over 30 minutes. Depends on the day that you send an email. It depends on the time if you're during business hours, et cetera. But the average open time on emails over 30 minutes. Whereas if you send the same exact message via text, it's open up in three minutes. So it's faster and More reliable in terms of delivery. The average reply time. Because we all know how our email inboxes work, we see it, it stacks up and at some point we get back to it. The average reply times the amount of time it takes for a customer to respond back to us is less than 90 seconds on text in part because small words and small amounts of characters is extremely accepted inside of text messages. So the average reply time for text messages is 90 seconds. Whereas for email the average replied for an email is 1.7 hours. As long as you send the email during business hours, the Reply Time is 1.7 hours. Okay, let's talk about response rate. How often do people actually respond to text messages? Okay, now this, this stat I got from ChatGPT, it is not this high if you're sending transactional text messages, it is not this high. It is higher if you send a personalized message. I just want to make that very clear. If you're saying a blast text message you are not going to get what their response rate is which is 45%. Wowzers trousers because compared to email the response rate is 6 to 10%. So if someone's responding back to an estimate, if they're responding back to a follow up message, if they're responding to an elp sell, a text message is.
Not only going to open up more.
Often, not only is it going to get.
Opened up faster speed, not only.
Is it going to get a higher.
Average reply time, are lower average time.
So faster response as well as the response rate. The amount of people that will respond.
Is like 10 times the amount more on text messages versus email. And I have seen this consistent, maybe.
Not these exact numbers that ChatGPT gave.
Me in terms of response rate, but I have seen about a 10x higher response rate on text versus email when you send it out from copilot. So here's the thing. I want to ask a couple questions. If you don't send out your messages right now, your your your estimates are all of your messaging communication upsells. If you don't send it out with a text message right now, you just use email. How many more estimates would get accepted? I can do the math very quickly on just one stat and as the open rate and just know because customers don't open up your estimate they will not accept. And so just by increasing your open rate you are going to increase the likelihood of them accepting the estimate from 0 to at least 1%. And so I don't really care who you use. By the way, there are lots of different Services you can use to tech. Okay, there is, for example, if you use Jobber, you can connect it with mailchimp. It gets a little bit expensive because you're paying both of them, but you can integrate mailchimp and Jobber. We can do this because it was going to cost me over $500 a month just for my one locations mailchimp to be connected to Jobber and Jobber's on top of that. So it was going to cost like over $1,000 for what I needed. And then there is like service.
Autopilot has text messages.
You can't do bulk messages though. And then you got do mass texting. So Copilot does do mass text messages. And I know it sounds like a pitchfork Copilot, it's not.
I really don't care. At least send your text, your estimates.
And your invoices via text messages. Even your transactional emails, turn those into text messages. Your response rate will be higher. The amount of people who open up, your estimates will be higher if you just send the same exact thing from an email to a text message. And I know know this for a fact because when we switched CRMs for Augusta Lawn Care, all of our locations, I was able to make sure, hey, going forward, everyone's sending via text. And we sent every single like the exact. We have an automation that is when an estimate is sent via email, it also sends via text automatically. And so we see a massive jump in open rate. Response time was way faster. And accepted estimates, the number of accepted estimates jumped dramatically. And so we're talking about thousands of new jobs every single year simply because of moving from email to text. And so I don't really care what software you use. There's also what's blanking on the name and the texting one. I'm blanking on the texting name. I apologize. It's a plugin that works with a couple different softwares including Copilot but also Service Autopilot and a couple that allow you to text message out. Very good. The bulk messaging is the key.
It is the money.
It is the moneymaker. And if you can text people in mass and do upsells, which we will talk about later today, if you can do upsells using text messages, the response rate is so good. So good. And so like at my, my location, we will send out 15,000 text messages and I'm going to get 50 to 100 estimates. Do you need more leads? That's another question. Like, okay, well I'm doing email right now and maybe I'LL do some follow up calls. Like if you need more leads, I need more leads. Everyone thinks they need more leads when.
In reality, if we just took the.
Lead that are already coming in, people are already submitting SM request forms and just close the higher percentage of them. We would do just as good. If you have a close ratio of 30% right now and you're like, I need to double my business.
I need to spend more money on.
Facebook ads, I need to do a website, I do Google Ads. Okay, great, yes, you could do that.
Or you could simply move your close.
Ratio from 30% to 60%. And a great way to do that is send your estimates via text instead of via email. You're going to have a higher response rate, have a higher open rate and ultimately that leads to more jobs getting.
Close and you don't spend as much money like, oh man, I got, I.
Got to go buy a mailchimp thing. I have to upgrade my software package. So I could do text message that 50, 100, 200 maybe if you're big like my location, yes, you're going to pay 500 if you're doing like something Mailchimp or this other software that does texting can get expensive. It can't. I agree. Because they charge for text at Augusta or sorry, at Copa, we don't charge right now for text messages. Down the road we will have to pass that cost along because there is a legit $0.04 per Twilio text because Twilio is the integration that text detectives and does all technology side. There's 4 cent costs for us and we are not passing that along right now. And so if you're using copa, especially use text messages because we're not even charging for it. And down the road we will have.
To because there are people that are.
Spending 500 to $1,000 worth of tax credits and they're paying $279 from an enterprise subscription at Copilot CRM. And this is why I believe it's so important. This is why I have not, we have not charged for text yet. I want everyone to use it because once you see the power on your.
Close ratio and more importantly your upsells.
The ability to be able to get more jobs from the existing customers that already know like and trust you.
Like why in the world, why in.
The world would I run a Facebook.
Ad to people that have never done business with me? They've never opened up their pocket, they've never done, they've never asked for estimates, they never, they never came to my website and, and why would I advertise.
And spend money to cold traffic when.
There are people in my database that I have their phone number, their address, I've done work for them in the past.
Maybe it was a couple years ago, maybe I didn't do it, they declined my estimate. It doesn't matter. They've already raised their hand and qualified.
Themselves as someone that needs your service. And so why would I not keep them warm? Why would I not put them on.
A monthly basis where I'm going to pitch a specific service to them via text and email?
And vitext will get a massive, much.
Much higher return and number of leads from that message in that campaign.
And even if it costs, so even.
If you're not in copilot and you're like, man, it's gonna cost me a couple hundred dollars to send out this mass message to thousands.
Why do we get tripped up over spending $200 and then we go spend $100 a day to Google? We spend $100 a day on Facebook, we spend tens of thousands of door.
Hangers and flyers and every door direct.
Mail like the USPS loses money and out to wazoo and is super inefficient and yet we're giving them a whole bunch of money to deliver a bunch of flyers and postcards that we hope they deliver to the post box. And we're willing to give thousands of dollars and somehow that's accepted and spending a little bit of money to text all of your customers and immediately get qualified customers that you already have their information, you already been to their property, you already have all the built up.
Trust of the customer is with you.
And why in the world, why in.
The world do we spend so much money on cold traffic? We are addicted in this industry to cold traffic and we are addicted to.
Paying for every single lead. And it's because we stink at upselling. We stink at it. I say this across the entire home.
Service industry and I write this book.
With a lot of passion because I am sick and tired of seeing people.
Not be able to pay their bill and not having any.
And the reason for that is because we are spending at the exact same time.
Last week I was with a couple of home service business owners during the turnaround show. We had four turnarounds in another video.
And I was like, every single one of these people is spending thousands, thousands of dollars every single month on Facebook ads and Google Ads and SEO. One of them saying $3,000 just for the campaign to be managed at a plumbing business that doesn't include the ads. And yet we have never seen send an email or text message to our customers asking if they would like more services. Why would you not create a text.
Template and an email template for every single month of the year based upon the demand of your climate, Depend on the demand of your local area to upsell the people inside your database. To me, this is crazy.
Absolutely crazy. The fact that we spend money, I'm.
Going to say it again.
We spend money on cold people that we have never done service for and we're paying to show up in their feed or show up in their mailbox or show up when they're searching. When there are people in our database that have raised their hand and said I want services from you. And even if they decline, they're fully qualified. And furthermore, the people that have done.
Service for you, you have a credit card on file, they have paid you.
In the past and demonstrated not only their need for the service, but their ability to pay.
That is crazy. And using text messages will allow you to be able to capitalize on that audience and on a monthly basis have.
Work when you need it on demand.
Like I want leads when I need them.
This is how you do it.
You generate text messages that go out to your customers based upon oh my backlog is only a week long.
Great. Send out text messages and get 40, 50, 60 estimates coming in and being able to fill up your schedule when you need that instead of the other way to do on demand.
Estimate generation by the way, is what spend more money on Facebook, spend more money on Google, pump the more money into the marketing machine. And I do believe that the vast majority of home service business owners that are wanting to grow underspend on advertising. I do believe that.
But I also also believe that 99%.
Of us do not send enough messages to our customers to upsell them, to.
Remind them that we even exist.
Because there's nothing more frustrating than, than you doing a job. Let's just say you're mowing grass and.
Then they hired someone else to do the tree pruning. And you're like what in the world? Why would you do that? And it's your fault. It's my fault. Because we never told the customer that we can solve that problem for them also.
And you can use text messages to get through. I believe in value based pricing. I think that reason home services is so low price and like, and everyone in their industry is like my industry is so horrible. My area is so horrible. I just talked to a plumbing company the other Day. And they feel the exact same way. They have private equity moving in that are willing to operate on 1 to 3% margin and undercut them on every single job. They're willing to do stuff for free that they can't even do for less than $300.
That's difficult. And yet there are people in other.
Industries looking at plumbing or H Vac like, oh, man, if I could just get those other services. It is the shiny service syndrome. It is always another service. It is always another industry that is easy. But I am a big fan of value based pricing. And that is, instead of thinking about how do I get this customer and lower price, I'm going to think, how can I raise value?
Because ultimately the value equation is simply this. The transaction will take place.
The transaction is consummated. Value is higher than price. So if I think that this water bottle. Very good. By the way, one of the owners of Augusta Nation gave it to me. Thank you very much. If I think that this water bottle is worth, to me $50 because I'm out in the middle of the Sahara desert, I'm sorry, super, super thirsty and it's full of water, I'm like, my God, I'll pay 50 bucks for that. I'll pay $100 if the price. So if my value is 50 and the price is 20, I will buy said water bottle. Now, if the water bottle is $1,000, price is way higher than value. I will not. The transaction will not be consummated. So the same thing is true when it comes to your jobs. You're saying, hey, the price is $500 in the mind of the customer. Well, it's only worth $400. Guess what? They're not accepting the estimate because value is not higher than price. And so as soon as value exceeds price, then the transaction goes through. And here's the thing. That's why it's a race to the bottom. Because you would always cut prices and eventually get them to accept. And so this is why we have.
A race to the bottom versus we.
All focus on value. And what is value?
Value.
Everyone's certain. You mean the thing about, like, my uniform and my trucks? There are people that aren't even at your prop. At the property when you service it. They don't see your uniforms. They do not see your trucks. What you can do without fail for every single customer is save them time. If you value your customers and you're.
Willing to improve the value proposition that.
You'Re offering in your service and create unique differentiation between you and your competition. You save your customer time. You know you save them time. Stop emailing them five times, it's going to spam. Stop calling them to follow up when they haven't even got the estimate. Send them a text message, they can see it in three seconds. Assuming that your software is mobile friendly, they can be able to view it on their mobile device except ask for work, change orders or decline it immediately. Save them time. I'll talk about inside the book. I talk about instant pricing. The reason instant pricing works is because it attracts the type of customer that.
Values their time, not the person that wants to spend an hour talking about every little thing on the estimate. Every little part of the job is me nitpicking you is me calling back the week after because some crazy tiny.
Little thing on the project went wrong. The person that values their time is your highest value customer. And in order to win them over, you respect their time.
Uber is not, is not cheaper in.
Many times than a cab. If you go to a place and you look at a yellow cab and then you look at Uber, many times the yellow cab is cheaper. However, the perception and the value of saving time, because I can see that three minutes away is my Uber, I can track it on a map. And when it's getting to me, that perception of me saving time is why Uber has become a multibillion dollar business and taken over more than 70% of the cab driving industry. By the way, only 15 years ago they had none and it was completely fragmented and no one owned more than 2% of the market.
So what's going to happen with home services? Home services, Right now, for example, I'm.
Going to take lawn care, for example, 600,000 landscapers in the United States, no one, no one owns more than 1% of the residential market and even of the commercial market, no one owns more than 2%. That's crazy. That's what we call a fragmented market. What's going to change that?
It's going to be people that adopt the technology of things like text messages that save time for the customer.
And so to all the naysayers that always say that I'm always against people and Augusta Nation is going to put them out of business and all this other stuff that's crazy.
Simply this. I am giving you the roadmap to.
Do exactly what I believe in and is going to completely consolidate this. And I do believe there's going to be players that own 5, 10, 15% of the market in many home services. And it's going to be, it's going to be the businesses that adopt technology and use that technology to save the customer time.
And then they're able to charge a.
Premium price because they save the customer time.
And so when you do things like.
Instant pricing, when you use text messages.
Instead of sending archaic emails or printing off the estimate, putting it underneath their, their ma, you are decreasing value when.
You do those things.
When you text the customer from imessage.
Yeah, it'll be $400 for the most install.
You're reducing value versus having a link that they can see in writing, everything.
That'S included, what type of materials, when.
The jobs can be completed that you're charging tax.
This is value addition.
And instead of reducing our prices, we.
Need to focus on increasing value. And the number one way to increase value, 100% time. No one wants to waste time and so save them time by sending them text messages.
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