Mike Minute Mastermind 08/05/2022 (Looking at Your Location as an Investor)

Ladies and gentlemen, boys and girls, it's Friday. Welcome to another episode of Mike Minute Mastermind. Hope you're all doing super well. Last day of the week. Finished strong. Couple announcements. Last night I posted on the Facebook group and that is, I can share my screen.

This little bad boy. Not that one. What is that? Come on now.

The texting templates. So we've really seen a dramatic increase in amount of people showing up to interviews as well as showing up to their first day of work when we use texting. So these texting tutorials and templates are in there for you to be able to download as a Word document and be able to edit them in terms of, like, what you send someone once they send an application or you get a lead on. Indeed. Or Facebook. So use these. I would recommend it obviously go through and change, like, you know, your name and what time. What time you're actually trying to offer them to meet at the shop space.

But these videos in here I think are really good. Just kind of hook them in. Obviously, this is more of a sales pitch to get them to come in. And then this part here is once they've accepted or. Sorry, when you. Yeah, once someone's accepted, once they said, hey, I wanted to go for it. So feel free to use these, edit them however you want. Obviously, if you do not have an Audible account, don't put this part in here. But these are the type of things that I think are valuable to. To actually get them to show up the first day. Because a lot of people, they have a hard time just showing up to interviews and then another part is just getting them to show up for the first day. So once someone has said they're going to work for you is not the end of the cycle. You got to still onboard them and get them committed. And part of that is reselling yourself over and over and over. So feel free to download those. Those are in the Academy and you can find them just by searching text at the very end of the templates and downloads section of the Academy. Let's see here. Boom.

Cool. Remove that. In terms of questions, there are no questions on the form today. Let me go ahead and double check. But I did have some stuff I wanted to go over in terms of education, so just give me a second. But I wanted to triple check here. There are no responses. You will notice, though I did add in the question area, when you fill in your form, you have the additional option to add a picture. There's screenshots or things you want me to actually see that'll be really fun and useful if you want to. You don't have to do not have to send anything. It's an optional thing but that way if you are trying to express a something that is visual, you can attach that as an attachment now. Okay. Education first things first. Managers, GMs or owners that are currently the owner operator, I would highly recommend not to leave your shop until all of your employees are done for the day. This is something I've never really thought about because I thought, I thought some of this was like kind of a given, but it's not. And so in my opinion you need to be the first in and the first out. If you are the operator of the location and if you're not going to be, you need to communicate clearly with your team as to why you are not. If you are going to be two hours late to the to the get the day started because you have a doctor appointment or whatever, you need to clearly communicate with your team. If you are leaving at 2 o' clock and they're all working till 5 and 6 o' clock at the end of the day, you need to clearly communicate why with your team. Ideally you are at the end of the day connecting with every single one of them in person. This is why I still believe you need a GM and this is why I'm not trying to run locations without a gm. Because theoretically if you do over the phone estimates you do not need a gm. As long as someone is self directed to pick up equipment, they can take the equipment to their house. You could theoretically run a location without a GM and have a command center run that location. I'm not trying to go down that route because it's hard enough try to find employees and retain them, let alone when you have employees that do not have anyone to connect with at the end of the day. It's extremely hard work. It's extremely demoralizing. This time you weren't so hot and you're they're thinking all sorts of negative thoughts about they should go find another job, they should go work for somebody else. And so if you are not being that person that they can kind of release some of that pressure at the end of the day, connect with vent about maybe that customer got mad at them, maybe they had a horrible day because the weather was bad. Whatever, you're going to have a lot more people leaving your company. The number one reason why people leave companies is because of their manager. Whether that manager, quote unquote is you as the owner. Their direct report is the number One reason why people will leave not because of where the business is going, not because the vision, not because of money. They will leave because their manager. And so if you are their direct report and as the owner, people are leaving mostly because of you. And if you just come to grips with that, then you got to step back and realize, okay, I've got to do some work on myself. And the number one way to improve that is communication. And in our industry of labor, I feel like you need to be able to be the last person, especially at the end of the day. Beginning of the day, people usually have most motivation to get started. They show up to work, they can get started, but at the end of the day, I personally, when I was in daily, just one location at Bellingham, it was very rare that people would ever come to the shop without me being there at the end of the day. And I know for a fact Liz would not leave without people with people. Salt in the field. And if she did, it was a public post on the chat. And same thing that goes with Marcus now or Lee. If they. If. If they know the crew is coming back to an empty office, it's going on the public chat, what we're doing or why I'm leaving or I'm out for the day. Make sure you wrap up. Make sure you do this. X, Y and Z do not just have it where they show it back to the shop. You're gone, and there's no explanation. They will always make the story of my manager slacking off, my owner slacking off. They don't do anything. I work hard, they don't. They make all the money. I don't make anything like that is very easy path to start walking down as an employee if the manager is not communicating effectively. Okay, so in my opinion, you are the first one in and the first one out every single day. Okay? I expect that of my managers, and I expect that of, you know, markets, the local shop. And if they don't are not there when the guys are not coming back, at the end of the day, they are communicating publicly on the public chat of what. What's happening either I'm going someplace, doing estimates, I am out for the day. Make sure when you get back, you lock up. Even just communicating that you're not going to be there is extremely important. If you have any questions, feel free to text me. I'm stepping out of the office today. Whatever it is, communicate first in, last out is my expectation of what a leader does. And if that is too much for you, I'm sorry, you are not a leader. You will sacrifice your time and what you want for the sake of the people you are leading. And in my opinion, for someone who's entry level and is working their brains out all day long and physically exerting themselves all day long, it's extremely demoralizing to come back to a place where their manager, owner is not there to talk to and communicate with and venture.

I think it's extremely important. I somewhat took this for granted, but I'm starting to realize as I talk to more owners that this is not happening. And then they're wondering why there's so many of their employees are leaving. Okay? The number one, why people. Number one reason people leave their place of work is because their manager. And if you are the owner or manager or a direct report of employees, you have to take that, let it hit you in the chest, and then realize that you are the reason people are leaving. You're holding on. If you're having a heart trouble holding on to people, it's because of you. And that's not fun and that's not exciting. Welcome to being a business owner, okay? That is part of being a leader. To take accountability for the reason why people are actually leaving your place of work is nothing to do with the money. It's nothing to do with the work or the weather. It simply has to do with you as the manager. Okay? And that's not fun. And when people, even this past spring were leaving quite a bit, I had to take that same approach that, wait, what am I doing wrong here? Like, what am I messing up? Because this is the reason is me. And if you think that is harsh, if you think that is hard, it's extremely liberating. Because ultimately you are in control. You can make the changes that need to happen in order to retain people better and be a better leader. And that's going to usually come in the form of communication. Okay? If you don't have a WhatsApp group with all of your team members, get it started right away. If you are not communicating about why you are out of the office when they show up at the end of the day, that is a must.

If my manager didn't do that, I would freak out. If Liz or Marcus ever leaves the office, left the office, like back in the day when I was there with Liz, if she left the office and she was there, was not there when they got back, they knew about it before getting back. And it was very rare. Maybe one out of 20 days, would someone ever be out in the Field working without her still being in the office. Okay. Even if I was gone, I was letting people know where I was at. If you are in daily operations of your business and people just don't know where you're at, they're going to assume the worst. Okay? So make sure you're staying in communication about what you're doing. Are you doing estimates? Like, they don't know you're doing estimates. They think you're, you know, you could be potentially at the lake, on your boat. That's what they're going to assume if they're working crazy hard and they start going down a negative trail in their mind. Okay? So communicate, communicate, communicate. And I would highly recommend you're the first one in, the first one, and the last one out. Okay. Do you have a question? Come here.

What kind of questions do you ask previous employers when calling candidate references? You know what? Perfectly honest. When it comes to reference checks legally, in most states, especially outside the U.S. like Canada, for example, the what you're supposed to say when you get called for a reference is like basically nothing. It's like, did they work for you? Would you hire them again? Is like the only two things you can really respond to. In the US we actually have a little bit more latitude to ask. I typically open up with a really, really broad question and then gauge how much they're going to give me, right? So I usually say, like, you know, would you hire them again and what was their performance like? If you mix those two questions together, what they'll do is they'll say, yeah, I would hire them again, and they'll expound or they'll say, nah, I don't know. And then because you've already laced that question with something else, they'll go into why. So that'd be like the. Like, I usually only need one question. And I was like, would you hire them again and what was their performance like? I don't usually probe too much beyond that unless they start really opening up more. Because based on the first three seconds of that response, I usually can tell if they would hire them again. If there's any sort of apprehension, I'm wanting to know why. And if I lace it with that other question, typically they'll open up and divulge. Just shut up after you ask the question, though. I know it's. It's awkward to call some random person. Be like, I'm doing a reference check, and usually they're in a hurry, they're business owner or whatever it is. Shut up. You need to say Would you hire them again? And what was their performance like when they're working with you? And then be quiet. Let them be quiet for a little bit too. You'll get better, better answers that way. Do you lay off any of your crews during the summer? Not typically, because we, during the spring rush, we build out such a big backlog and we try not to get projects during the spring rush. We try to focus on recurring work only. So that way we book out four or six weeks out in the future so that when we hit the summer and recurring work slows down, we have plenty of work to keep the guys busy. So we don't really like Rusoft during the summer. Definitely not so cool. I have one more quick thing I want to do about education and that is in relation to cap rates. So if you don't know what a cap rate is, it just stands for capitalization rate. Okay, I'll show you a man I thought I had. Yeah, here we go. Let me show you this. And this has to do with looking. Looking at any sort of investment vehicle and then comparing them is sometimes difficult, right? Because, well, do I invest my money in my fifth location or do I invest money in real estate? Well, it simply comes down to what's your return on investment? That's really the only thing that matters. And so one thing that I like to do, there's a horrible way of valuing an investment, by the way, but it's something that I personally makes a lot of sense to me. And so this is not investment advice. It's not any sort of advice, but this is how I think about where my money goes. Okay, so let me go and share this to you.

See here window, boom, there. This is what cap rate is. Cap just stands for capitalization. It's a form of. Think of it kind of like return on investment. It's not return on investment, but think of it like that, okay? Net operating income. Let's just call that cash flow, just to simplify things, divided by the current market value of the asset. Okay, so another way of saying if you reconfigure this math, you could basically figure out the value of the current market value of an asset. So when you start asking yourself, what's the value of my company? Well, there's a whole bunch of different ways to do the valuation of company, and I have know webinars about that, et cetera, and goes over how to value recurring revenue and projects and assets, et cetera. That's the more. That's the better way to do evaluation. This what I'm talking about right now is not the way you should do valuations. Okay. It's not how you value a business. But this is how I like to compare different investment opportunities. And for me, I like to typically just relate it to real estate because I understand capital rates really well. I understand investment returns in real estate. So I like to compare all my investments to that. The stock market in my businesses, whatever it might be.

There was actually an interview last night. Lee interviewed me. It'll come out in like a couple of weeks. And we talked a little bit about, you know, if he asked me like so he had a million dollars, what would you be a $10 million, what would you, would you do with 100 million? Right. And so, you know, the 10 million one was I would start 30 locations for Augusta Lawn Care in Washington state. I would have three regional managers and then 30 general managers and we would just take over the state.

And so part of that really would come down to cap rate and that, you know, $6 million that I would deploy against that. I'm sorry, no, that was 4 million, $4 million I was going to deploy against that.

Simply comes down to, I think that I would get much better return doing that compared to spending that $4 million on a 15 million dollar piece of real estate and using that as the down payment. Right. So cap rate is something I like to use to compare investment opportunities. Okay. Now the big thing that I want to focus on though is what is the value of net operating income or that is cash flow, what is the value of that? Now in real estate we talk about it all the time and that is what's the value of $1,000 worth of rental income and profit quote unquote in the rental business? What is that worth? Okay, so let me go ahead and show you really quickly how cap rate. See here. You know what, I can just do a calculator. Can I show you my calculator on here? See here? Let me pull up my app and see if I can't show you this on my stream.

This will be helpful for some people, I promise. Let's see here. Can I share my calculator share screen? Nope, can't do it. Okay, well we can use a window tab or a browser tab. Here we go. Okay, let's pull this out and let's do calculator.

I just want a simple calculator. How hard is it? Let's go. Calculator. There it is.

No calculator. No, I don't. It's going to some random article calculator I don't. Calculatorsoup. Com. I don't even know what that is. Just go to calculator. Just Google it. All right. You need a calculator. Thank you. Okay, let me share the screen. Hey, this is a cool little widget here. Okay, so if you take that same equation of determining cap rates, you can reconfigure it to determine what is the value of the asset based upon the net free cash flow based upon the profits. So what is the value of a piece of real estate? Let's just assume we're using a 5% cap rate. Okay. And the sake of this example, just realize that when the market is going really crazy and you're in a really affluent area and the real estate is really, really good grade, you're gonna get like a 3 to 4% cap rate. Okay. If interest rates continue to go up like they are now, if you're in a lower income area, if you have a lot of cash flow, it's an older property, you might be like a 6 cap, maybe a 7 cap. Back in the day, you get like an 8 or 9 cap. Doesn't happen anymore. You're lucky to get a 5 cap. Honestly. Now let's just use 5 cap, because that's kind of like the. The basis for the past, you know, four or five years of real estate investing is like. That is the valuation mechanism. What that means is, is If I make $12,000 on a piece of real estate over the course of a year, so a thousand dollars a month, I'm getting cash flow. Cash flow, Cash flow, net operating income, every single month, $1,000. That would mean that I get $12,000 in net operating income. Let's just call that cash flow. The sake of keeping this all the same. That means that if I then divide that by my cap rate of 0.05%, that would mean that the asset value is 240,000. Okay? So assuming that I have a 5% cap rate on a piece of real estate, if I make $1,000 per month, I. E. $12,000 in income or profit from that every single year, that means that. That that asset is gonna be worth $240,000. Now, if I take the same application of real estate and I use it in, in my small business and start thinking about my locations as pieces of real estate, like rental income, right. Instead of buying, you know, a duplex here, a duplex there, I'm actually thinking about, okay, how do I start thinking about NK I. I have four locations now. I want to get fifth, I want to get six. I want to keep popping out like pieces of real estate. And my goal is, can I get $1000 a month in cash flow to me, every single month, 12 months out of the year? Well, if I can do that now, all of a sudden, if I'm able to create a business over the course of, let's say, two or three years, okay, it's not gonna happen the first year. I'm spending money typically on growing that location. Let's say I even spent eighty, a hundred thousand dollars and ramping up a location. But I'm able to, within 18 to 24 months, start taking $1,000 per month. Well, if I'm able to do that and I, and I reconfigure this, I could theoretically, from a, from a cash flow perspective, set the value of that stream of income, assuming it will never stop. Like, real estate is super consistent. That's why you can use these cap rates so easily. It's got super consistent. If I know for a fact I will always get a thousand dollars per month from that location. Just a thousand dollars. If I just get a thousand dollars per month in, In. In cash flow from that location, I theoretically create an asset that's worth $240,000. Now, this is not how you value a business, okay? It's not how you value a business. But to me, that cash flow, if I'm assuming a 5% cap rate is worth $240,000, okay? And then how I think about it is I think about, like, buying pieces of real estate. I got a duplex and I got a triplex. I got a single family house. I'm thinking about my. The way I get multiple locations the same way. And he's like, if I can get a location, I'm going to spend 80 to $100,000 on getting it ramped up. And within 18 to 24 months, I better make sure I'm making cash flow on that thing. If I'm not, we're in a. We're in a world of hurt, okay? Because the reason why real estate is so predictable and you can use cap rates like this to value properties is because you know this very baseline of what rental income is and what a property is worth. There's comps and all the rest of it. The reason with business is it's so hard to determine what the value, like this number right here is, is because it's like, you, like, go down the street and see five locations. That's five. Five businesses like that are just like yours. That have sold in the past few weeks. That's why real estate has such an easy way to value things. So when it comes to an investor standpoint, it's like, well, if I can generate, create a business that pumps out a thousand dollars per month in, in this scenario, let's just, let's. Now let's say, you know what, maybe in the third year I can now afford. How do I clear this out? If I, I can now afford to do $2,000 a month, okay, well, that's $24,000 over the course of a year. And now let's assume that instead of a, you know, a 5 cap, I want to be ultra conservative. Let's do a 3 cap. Okay? So now I'm going to divide that by 0.03. All of a sudden, now I've created a income stream that is worth to me $800,000. Okay? Again, if I'm comparing to real estate, which is not a great comparison, again, this is not a way to value a business. But I'm valuing the cash flow, okay? And when you start, start getting, become more of an investor, you don't look at things in terms of the asset value. Look at what is the value of the income stream. That is why banks do so well is because they don't think about things in terms of like what is something worth, like the resale value. They think about what is the income stream worth to us and how predictable is that income. The reason that you would never get $800,000 from a lawn care business that only produces $24,000 a year in cash flow and like straight profit in your pocket. The reason you would never get that is because no one is, is confident that you can predictably do this for the next 30 years.

Okay? So that's why simplification of systems is so important. That's why all the systems we talk about, Gus, is so important, because that is what creates the redundancy. To be able to have the confidence that that $2,000 per month will never stop regardless of your GM leaves, regardless of a couple good employees leave the confidence in having to be able to take that $2,000 a month, that $1,000 a month is the determining factor of whether or not this type of cap rate and the way that I value revenue streams actually works. Okay? So listen, that again, if that didn't make no, made no sense to you, but it's when you start thinking in terms of what is the value of an income stream, you've gone to a different level, okay? And that is usually going to happen in stage five and six of wealth in Augustination when you're starting to diversify and you're also starting to get multiple locations. I think about multiple locations like pieces of real estate. I'm gonna. The same way I would buy a piece of a house, let's just say it's a single family house in our area is like, you know, five, $600,000. Okay. I'm gonna have to put down 120, $130,000 in cash. And I'm lucky to break even for the first year and a half to two years on my mortgage. Okay. I'm hoping that with appreciation, I can make some cash flow in years three, very similar to a business. And that is, I'm going to put in, let's just say I'm not going to put 120. I'm going to put 80 to $100,000 into a business, and I expect within 12 to 24 months to be able to get cash flow from that company. Now, the predictability of how I create my systems is the determining factor of how valuable that income stream is. And that's why we talk about simplification. Because I can't have a general manager be the thing that holds up the entire business. Okay. So the redundancy of having command center, the redundancy of having acceptable services is what makes that cash flow source valuable. Okay.

What'S this thing? I missed the old mic. I haven't heard, heard, book or cyclic? You haven't hung out long? Long enough.

Do you prefer more locations or less locations, but larger locations? What is your ideal size of business? It strictly comes down to the general manager. The general manager wants to grow to a million plus and become more of a leader operationally. Hey, let's go. I'm all for that. I will invest more into my location if that's what they want. It's easier to find a working gm. So if the manager's like, I don't know if I really want to grow, I'm kind of getting stressed out with all these employees. Like, turnover's really been tough. Finding employees is tough. I'm not going to push them to get 10, 15 employees. I'm going to let them have four or five. They're going to do five to 600,000amonth that are annual revenue. And I'm going to be looking at like a piece of real estate when we try to take a $1,000 $2,000 per month in distributions after the first year and just keep going. And if a Location is not able to do that. Within 18 months I'm probably going to cut it and take my losses, right? So that's the part where with real estate you have, you're never going to have losses. I shouldn't say that. You're never going to have a piece of real estate just doesn't make any revenue. You might lose money that like plenty of people are underwater right now on their mortgage in terms of what it's rent income capabilities are. But at least you get something. There's, there's going to be times when I open a location and in 18 months if it's not producing income and revenue back to me like, and then it's like what's the point of having it, right? So 18 to 24 months, I expect there to be distributions back to myself. And if someone wants to keep growing and they're like, hey, I know it's a year and a half in, but I want 40 grand more so I can roast to a million plus, I'll be like, let's do it, let's go. I'm building asset value. So that way one day maybe instead of in a year or year and a half, I'm taking a thousand or two thousand, maybe if I wait three or four years, I'm now taking five thousand a month out of a business, which is very possible at a million plus. So it's just, you know how delayed gratification of that investment stream.

So like 1 million location or. Yeah. So strictly comes down to my general manager, right. If I have two really good guys out in the field that could be working GMs and I have the confidence that they could easily lead three to four employees, three or four trucks, and I could split them up in different areas, be more efficient than having one big territory where I'm driving a little bit more. I'd be 100 game for that. If I have a general manager like, hey, I want to be here the next five to ten years on a build a million dollar business I have no interest in, want to work out in the field, I want to lead a team, well then they're gonna have to grow to a million, right? Or 800,000 at least I would say.

So is it not a good idea to push your GM to grow then? I would not do that. I would, I would. Personally, I have now found out and not. And just really begin to learn over the past few years that the systems of Augusta simply hinge on the operational excellence of the operator, whether it be a GM or an owner. And so the same person or sorry, the same market, the same equipment, everything the same, two different operators, complete could be completely different results based upon if they have operational excellence, if they follow the systems, if they can lead a team. Okay. And so for me it strictly comes down to the GM. If they're comfortable working out in the field with three or four employees and they prefer that I'm going to 100, stick to that. If they're like, hey, I do not want to work in the field, we're at 5, 600,000, I want to ramp this up so I don't have to be out in the field all day long and I'd rather just keep growing. I'll do that, but I'm not going to push them. I would rather have two locations that are both pumping out a thousand or $2,000 a month in distributions, me and at 500,000 in revenue than doing a million dollar location that if you, the GM leaves occasionally or like it doesn't really know if it wants to grow like that stress just that that takes out the dependability of my income. Okay. The dependability of that stream of revenue goes away if that GM leaves and all of a sudden I'm just like scrambling. Okay. That's why simplification is so important. In my opinion. The dependability of that revenue stream is increased when you have systems and when you have simplified services.

I'll need to pick your more brainwart training because I have a guy that I think won't want to grow. Just keep your current size. Yeah, that's fine. We have a couple of our locations that are planning that this winter to do a working GM model, throw somebody out 4 or 500,000 revenue. And this is the big question, especially your second location. Is it the owner you that go starts the new location or do you have a the working GM go start their own location. It's completely dependent on your personality. If you like starting things, which for most business owners, they like that part, you would go start the new location and then you let your GM execute on the operations of your current location. Okay. If you're gonna stay at say 500, 600,000 revenue and you're at that now. Okay, I'm let my GM take this one over. I'm gonna go build. Right? If you love building, keep in mind, if you don't like that stress or the GM that you think of having loves the process of building and you want them to have the experience of building it from nothing, then maybe they go and you keep running your existing business and make that thing a cash cow. So there's a hundred ways to skin the cat. Do you recommend ever getting to a point where all you do is recurring service, ie, mowing and offering nothing else? I think this is possible, but keep in mind this is going to take way longer to grow. Okay, so I personally like is take what you can get in terms of simplified projects like property cleanups, mulch, weeding, bush trimming, etc. Grow that quickly so you can get, you can immediately get three, four employees. And then at that point, if you want to keep growing, you're going to keep doing that. You want to grow to 800,000 password or be like we talked about, stay at that level of revenue by cutting out services. All right, so like the Bellingham shop, for example, it would be between 1.5 and 1.7 million. For the past like three years, however, we've gone from 40% to 75 plus percent of recurring work and recurring services. I'm thrilled out of my mind because next year we're not going to cut out any services and we're going to grow. Because now we're not cutting out. We probably at least cut out $400,000 worth of projects because we no longer do any walls. Like, we won't even put one block on an edge. We won't do any pavers. We've cut all out. Well, just compared to last year, that was probably $400,000 worth of revenue. We don't do any grading, we don't do any planting, we don't do any sort of. That only comes because we got to this point where we spend those few years. Like what I talk about all the time is exactly what we've done. And it is grow. And you get to a point, it's like, okay, we want to keep growing. I don't want to do this with complicated services. Let's simplify, let's bring down services, let's increase prices, and then we'll grow again. Right? So like next spring, we don't plan on cutting out services. So what's going to happen? The 3 to $400,000 worth of recurring services that we picked up this spring is now going to be in addition to revenue. Okay, so in terms of me ever getting to a point, strictly comes down to what's your time frame. If you're trying to do this in the next. You're trying to start nothing and build that type of a model, you'd be expecting to take four to five years to build a half a million dollar business. You're only mowing. Okay. You can do that in two years by using projects so you can get infrastructure and then just over the course of a couple years, scale back to more recurring revenue, adjust your marketing, adjust your one click estimate emails, adjust what you're pushing to clients and.

Cutting out services even inside your wiki so that they just don't get those estimates. You're not even tempted to it. I would like to start a second location, but I don't have the cash available now. Yeah, so that's what you know, build it to one of the three levels, 200, 500 or 800,000 and then take a year or two, increase your margins by raising prices, cut out services to simplify and that's going to set you up much better a year or two from now to start a second location. Simplified services can allow you to find a GM easier. It's going to allow you to have this way less headache when you are no longer able to be there in person. And you're also gonna have better margins because you've raised your prices, you've cut out the customers you don't want, etc. Over in Mooresville, another one of my locations last year we raised prices 25, we lost 25, 5% of customers. We raised prices in early spring, I believe of 2021. This year we raised prices again and we lost. I want to say, was it 4%? Sorry Chuck, I am failing to remember that is either 4% or 4 customers. I'm getting mixed up with another location that I was talking to, but it was very, very minimal. Maybe it was two customers. It might have been two customers. It's like nothing. And so you know, when we talk about inflation and like, hey, this is a window of time to raise prices, like we're in it. So yeah, that's what I would do. Awesome. Great mastermind today everyone. Hope you have a fantastic weekend.