Why This $1.2M Business Can’t Afford to Grow

Hey everyone, it's Mike Andes and today is going to be a one on one coaching call that I had with a business that has over $1.2 million selling garage doors, doors and windows out from Canada. But this is a great call because I actually had a call with him last year and he was in a very commoditized business where he was selling wholesale to manufacturers and dealers and other contractors. He's been able to move now into much more of a retail, direct to consumer model where he's able to charge a much higher price and was able to raise his prices by 25%. Is a great coaching call. I think it'll be a lot of good takeaways for you. I look at your site, made some really good changes. Maybe just kind of fill me in since we talked last.

So I guess at the time the question was about hiring the technicians and stuff for the garage doors. Right. So originally I was going to go ahead and order both tech or hire both technicians. Sorry. And you know, bring them on board and you know, execute the way we had talked and stuff. But then I guess something fell through and one of the guys that was working for his dad, I guess his dad and his brother, they were working on trying to get the business back on track and were able to iron some things out. So he ended up just staying the family business. And so I ended up just getting one of the technicians, which was actually good because we didn't grow as fast as I thought we would and we didn't have the proper team in the office. So things have been good. But since then we grew, we've done decent, been a pretty good year. And I just recently brought in a very experienced office manager that's going to run the show, tell us what to do and runs part of our marketing and all that stuff. So that kind of clears up my hands for, for sales and operations and all that stuff. And that's kind of, kind of where we're at right now, you know, just, you know, working on growing and stuff. And you know, with the big overhead that we have, I noticed that overhead is quite big. And since we do manufacturing, installs and service work, I'm having a hard time figuring out how do we split up the overhead, like how do we split the overhead into each division to make sense? Because what I've noticed is in the garage door service side of it, we've got like all the local companies, their overhead is nothing compared to ours. They've got a little office, a little sh. And their overhead, like the building is paid for. Their only overhead they have is their guys, is payroll, then their trucks, maintenance and stuff. Right. So at the end of the day, I'm not terribly concerned. I know we can brand and we can, you know, present ourselves more professional than they can. But just, you know, at the end of the day, basically, I've been really struggling kind of going back and forth. How do I split up the overhead for the manufacturing? Because most of the overhead that we have is in the manufacturing side of it.

Right.

Or like we use most of the space that we have for the manufacturing and then also for the install team and we also do quite a bit of wholesale in windows. How do we split that up and then also kind of go from there? Because obviously the profits that I would like to make right now seems like it's not really working. Just because our overhead is so big, we have to grow, bring in a bigger team. So the overhead gets split up in between more people, right?

Yeah. Is most overhead wages or is it like a fixed expense of the shop?

No, at this point, the shop is a big one. And then the overhead team. So we got three people in the office right now, so that's kind of the big one. But we kind of have to have the team in the office that we have to grow to the next level. But you know, when it really comes down to like, even if I get rid of one of the one, one of the guys in the office, you know, we're still, we're still in trouble. Right. We need the team that we have in the office right now to grow to the next level.

Yeah. So like there's two part question. I think the, the part we'll focus on is like, basically we need to grow. Right. It's like from a lead gen perspective. But then in terms of accounting for the overhead, what like can you could just do a time analysis and like figure out what percentage of their day is actually spent on the service versus the, the manufacturing and then just do like a journal entry. Do you have different QuickBooks accounts or like accounts for manufacturing versus service or is it all blended?

It's all blended. And I've got a team for like my shop team stays in the shop and my field team stays in the field. Right. So. So I mean we're, we're doing.

You're trying to determine like, okay, these three overhead people, their wages, are they considered overhead for manufacturing or for services that like your, your main problem?

Yeah, yeah, kind of. Yeah. Just. Yeah. Trying to figure out. Yeah. Where, where the overhead goes and how to kind of split that up because I kind of know my, my, my big number and what they're overhead is a month and it's ridiculous. I just, yeah. Kind of need some insight on how to kind of split that up and kind of I guess help create a structure for growth to where it makes sense.

Is most of growth going to come on the service side?

No, I don't think so. No. Because since I guess since November, we just launched a website and we were talking about going straight to product at the time. It was kind of between, kind of back and forth. We've launched, we're 100% to the public now. We got rid of most of our dealers. We've, we've been very successful with it. It's just now, you know, we get quite a bit of leads on the window and door side of it. Yeah, quite. Quite a bit of leads on the windows and doors and then the garage doors and stuff. Right. So. Yeah. And it's just seem, you know, majority of the sales, majority of the stuff that we get, like quote we sell, but it's still, there's quite a bit of quotes that we do is like, you know, what price are just too high and it, you know, turns out the competitor down the road is less and just trying to, I guess, finding a way to justify, you know, lowering the prices and see how that would make sense. Okay.

Yes. Like if the growth was on the service side, you know, and because you're going straight to the manufacturing, because you're not installing the doors, are you?

We are.

No.

Yes. We're, we're selling and installing. Like we're selling to the homeowners, installing and everything. We don't really have any hope.

From a revenue perspective, what percentage of the sales? What like or like installation and service versus the manufacturing.

From a revenue perspective, you just think here, manufacturing versus versus like the installs. Well, for every door that we make, we basically install too. Right. So it kind of goes hand in hand.

Got it. Okay, cool. Then I would not worry too much about splitting up your overhead between manufacturing and service. If you're basically making it and then you're going and installing it, I think that like if you're not. If you're not also just selling the manufactured door by itself without installation, I would consider that all the same process.

Yeah. Yeah, I guess. Okay. I guess kind of thinking back now, I guess. Yeah. So I guess there's some wholesaling stuff like the. For new construction projects where we do supply only. And I guess that's where we Just do, you know, make the doors and the delivery where they would pick them up. And that's all we have to do with this, I guess. And that's kind of where it gets sticky, because there's companies on here do higher volume than we do, so it can afford to sell for less.

Got so lower margins when you don't install, but you're just producing the door. Y. And do you think that's like, what, 20% of revenue that you're just doing that?

I would say 20 to 30, yeah.

Okay. I wouldn't be too concerned about splitting up the overhead. Like, in terms like, okay, this is like overhead for manufacturing, this overhead for service, because 70% of your revenue is coming from something where that's going to be very, very murky. Like the handoff from, like, when is this manufacturing versus when is this installation? Until you got to the point where you had, like, the departments are so split, you'd have different teams for admin. Right. You have different teams for, okay, you guys get the door made, you guys get the door installed. But I think it's probably you double or triple the size of the business before you actually have different teams for those two different admin functions. So I wouldn't be too concerned with that. I think the big question is how do we grow the business to the point where the three people in the office make sense? Right?

Yeah.

Okay, cool. And so what's the growth been like in terms of revenue? What's the margin? Like, give me a little bit of numbers so we can then focus on, hey, what's the. What's the growth strategy?

So in terms of numbers, growth and stuff, like I said, we basically restructured the business at the end of last year. All the customers that we used to have, that brought us up to the million dollars in revenue, we don't really have much left. Those customers just because of the unique economy. They all went for a lower product, lower quality product. Right. So in terms of numbers, we're still like, last year I think we did 1.1, and right now we already did 1.1 so far this year. So we're on track to do about 1.4. 1 point.

Got it.

So, and then as far as, like the bottom end, honestly, you know, we keep, you know, hiring people and stuff. So the overhead keeps growing. So far, at the overhead rate that we're right now, a lot of the projects I've been selling, we've been. We've been able to sell them at a. At like a 30, 30 to 40 net, depending on the client. Sometimes we got to trim it up a little bit or whatever, but that's kind of where we're what we've been able to do.

And it's the over that's killing you because at the end of the day, like the bottom line. Okay, got it. Okay. And what's the goal for the business, Abe? Are you trying to like take this to 5 million? Are you trying to just make this more profitable at 2 million? What's.

What's kind of the goal? I haven't really looked at. I guess at the end of the day goal it is basically what I've, what I've realized is because we basically have two business, right? We do the manufacturing and the installs. There's not many companies around here that do that. They do either one or the other. We're doing both. So with a team that is required to run this business properly, I think we're going to be, we're gonna have to be right around the 3 mil mark to be, you know, have like, be like good and profitable. That's kind of the goal to get to that. And with the team that we have right now, we've got eight players in every division. With everything that we do from there, we can just hire helping hands and stuff. I'm fairly confident that's reachable in about, I would say about two years. We, we should be able to hit that.

Okay, cool. All right, well, I got enough context, so feel free. If there's some specific questions, we can dive in, whether it be, you know, marketing channels or whatever. But yeah, that's great. I have full context now. So. So from your op, most just lead gen. Like how do we get more leads in the door?

Yeah, so yeah, we're working on that. We haven't really done much in advertising Google Ads. We've been getting quite a bit of lead.

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We started the Google Ads just because they're hired another person and over it, you know, it's, she's very experienced, so it's, it's quite costly to bring her in. But it's, it's a good, good investment. I'm happy, and I'm confident we get to the next level. Right. So, yeah, leads isn't one thing. And it's just I've seen companies, they. They blow up and grow, like, fairly quick. Right. And I know their numbers are, you know, they'll blow everybody in the park when it comes to pricing and stuff. And for me, I have a hard time justifying that because, you know, at the end of the day, what we do is we offer lifetime warranty on the product and workmanship. So I just have a hard time, you know, trimming my prices down so far. And the other thing is. So the other thing that I've been looking at is once we get more efficient, we have a bigger team, most of the overhead that we have right now get split up between another two or three people, and now we can afford to sell less and still have a healthy profit margin. You see what I mean? That's just because I see you guys are probably doing something very similar in the lawn care business. Right. And that's just kind of. I guess I need some insight on how to. How to justify that side of it, because I know if I drop my prices, we can do a lot more. But it seemed like, you know, we're not really going to profit much until we get a bigger team and we get busier. Like, does it make sense? Like, is that justifiable?

Yeah. Like, what's the close ratio right now? And what percentage of your jobs that you give a bid are accepted?

I would say we're probably.

60, high 60s.

I'm inclined to raise your prices. I know you don't want to hear that.

Um, yeah, so raise prices.

But if you're trying to become profitable, if you raise prices by 10%, you would probably double your net profit on the bottom line. And I think if you raise your prices, you'd probably go from high 60s to high 50s.

Yeah, but extra.

The extra margin also give you the money to, like, really focus on marketing.

Yeah. And the other thing is, we're not at capacity yet. I don't know if that makes it. If that changes it.

Well, it just depends. That's why I asked you, like, the goal. If. The goal. If the cash constrained, then I would push in the direction of raise prices and cut one person to get to capacity. If you're like, hey, we're. We got plenty of cash and I just need to grow this thing and I want to keep everything. No, I got, like, do not hire one to fire, lay anyone off. Great. Then we're going to market, like, Crazy. Fill the lead hopper full and not be very profitable for this year and then do exactly what we talked about, raising prices next year. It just comes down to like the cash position of the business. If the cash position is healthy and like, hey, I got a month worth of revenue in the bank, no problem, we're good to go. And then I would be, okay, great. Like, let's just go focus on marketing and drive more leads in and figure out like, what can we do there and you know, close 70% of jobs. Great. But at 70%, I just know if you raise prices by 10 to 15%, you would hardly see an impact in your close ratio. Maybe 5% and, and doing that would double your profit margin.

Okay. All right.

So it really comes down to like risk tolerance and then cash position because you have high risk talent. Go ahead.

Yeah. As far as like the cash situation, we're not in greatest shape just because we spent a lot of money to like the showroom and all that stuff, you know, upgrading our website and we've done a lot of SEO work and all that stuff. So we are in a bit of a tough spot and we have to, you know, grow and get to the next level with the overhead that we have right now with it, with the admin. Because for me, the admin side of it and like the office side, bookkeeping, all that stuff, it's. It's my weakness and it's a big mess. We're getting that all sorted out right now. And with the person that I have in here, like Lynn, she's going to get this all sorted out and we just have to make sure that we all stay busy as a full team so we don't all sudden sit around and do not a whole lot.

I think we can do both. Right. So I personally believe if you raise your prices by a minimum of 15%, you would lose some customers in terms of your close rate. Like, first off, I don't know if we know our close rate. Like, I think we need to actually dig into that and what is that number before we move forward so we can actually track then the future. I would also look at what your close rate is like last August and September because it's seasonal to some degr. So I would really know that number. Then I would raise my prices and I would say, okay, where's the close ratio land after that? I. I can almost guarantee you it'll close. It'll will not drop more than 10%, but you will double your profits. You're like, well then, well, how like we're not capacity. We're going to take half of that extra revenue that we're, we're generating our extra profit and put it into marketing. So we generate so many more leads and our close ratio is going to drop marginally, but we're going to be able to double how much we spend on marketing. And so now your, your strength, like sales going out in marketing, you focus on that. You then have the margin to cover Lynn on the admin side dialed in. And then because you focus on the sales, you will drive enough leads to be able to keep your crew busy. Yeah, but at 70%, like assuming it's 70% in terms of close rate. I don't care what anyone says. I don't care. Your competition is you are not high priced.

Yeah, yeah, yeah. Based on the value that we bring to them. Right. Because we've got a lot of guys in the area that you know that are less than half the price. And we are, it's just.

But we, I know the value every single time. Every time you give them an estimate to ballot and they're just, yes, we are willing. And if 70% of people are willing, like you are not overpriced. It's like, I think the fastest lever in this business to make it profitable and then have margin to go grow is going to be raised price of 15%. And then you just did dedicate in his mind, okay, maybe I need two months of that to help my cash flow a little bit, bring margins up. But then I'm going to take a big chunk of this, I'm going to go start marketing and drive in way more leads. Because if you're able to double the lead flow because of better marketing, but your close ratio drops by 10% because of higher prices, that's a really good thing.

Mm. Mm.

Yeah.

Nice. I see that. Mm. And by doing all of that, it's also gonna get busy and bring in more people and the fixed overhead is gonna get divided because we're gonna have more generating revenue guys in the shop. Okay.

Yeah. Now as far as. Yeah, I guess as far as like the marketing and stuff like that, what would you, what would you suggest doing there?

Well, like this kind of leans into like why last year we talked about moving into this market is because they are going to be less price sensitive than those, the dealers and like all that stuff. So like this is why we, that this hard transition is that you like the whole goal here is to be able to raise our prices and you deliver enough value where 70% of people say yes, we should be raising prices. And so we do that. We get enough margin now to be able to then spend money on marketing. And then it just comes down to okay, right now, where are the leads coming from? Yeah, where are they coming from now is like all Google, is it? People walking in the door, where are the leads coming for?

Now there's Google, there's walk ins. Some come through our social media that we have, like we do have, we have a team that does that creates contents and posts and everything, shoot the videos and all that stuff. And there's yard signs, door hangers. Like whenever we go and sell a job, we set up a yard sign. We do 10 to 15 houses in neighborhood literally with our trucks driving around. Just, just a mixture of everything right now.

Yeah, like, so like the first thing I think Lynn will probably bring up as she moves in admin is probably like we need to know the referral source for every single. Because we don't know where they're coming from. We don't even know where to spend the money once we have it to deploy. If, if everyone's saying they, they saw your yard signs, all of a sudden once you get an extra ten grand a month in profit because of the price increase, you're gonna go spend half of it on more yard signs, right? Yeah, but we don't, we don't know what that mix is right now. We don't know how many are actually coming from Google, how many are actually coming from walk in, how many are actually coming from Facebook. And we're actually coming from the door, from the yard signs. And if without that we are flying blind. Especially because you have that in per. You have the physical component of walk ins that's like, that is very difficult to then know, to be able to.

Know where that's coming from. Because they might have seen you on Facebook but then they walk on the door. I need to know that. It can't like I'm still going to attribute that to Facebook. So I know that's where I need to spend more money.

Yeah, 100%. Okay. So as far as like running Google Ads and stuff, what's your experience? How long does it usually take till you actually see Google Ads doing something?

It should be pretty much instant because you're searching intent based marketing. So if someone searches in this area, garage doors, windows or doors, like I should be popping up. So that should be relatively instant. And what's nice about Google is you can track how many people actually do submit a form. So it's like the Easiest form of like tracking. That's why online is so much easier than in person. As soon as you move in, in person, people walk in the door. Everyone needs to, we all need to know where that person come from. Like, I will not say, like, oh, we just saw you. Like, no you didn't. Like, did you see my truck? Did you see my yard sign? Did someone tell you about us? Like, did your contractor tell us? Like, you gotta know. And I think once, once we have that data, we can move forward. But like, from, from Google's perspective, I should be like, if I run an ad within a week, it should zero in pretty quickly on my keywords. I should be able to give it negative keywords that aren't useful for me. I should be able to track that very, very quickly.

Yeah.

Do you have some doing your ads now for Google?

Yeah, Lynn is doing that.

Does she know how to put like a Google tracking code on behind your lead form and stuff?

Yeah. So what she did is like she, she used to run Google Ads for dealership, which is probably about 10 years ago or so. So everything has changed. So what she did is she was on the phone with, with a rep from Google Ad. They walked her through everything, they tracked everything, you know, they fine tuned everything and from there she just copied and pasted the rest of it. So you have to track and everything is, it's all dialed in.

Do you know what your customer acquisition cost is right now from, from Google?

Well, this is, we're literally on week, week one. Like we, we just all launched ads about a week ago. Oh cool.

Okay. So like the good thing is within a matter of hopefully a week or two, we should be able to see, okay, how many, how many people converted and then what was the value of those conversions? Right. So we should be able to have that, those numbers here pretty soon. And then if it's a really good customer, cause like we just put more money on it. The thing with Google is there's only so many people searching in your area for those keywords. And so you might, you might hit a threshold there of like, I can't spend more than $50 a day or $100 a day before it's like we're tapped out. And then we have to figure out, okay, do we go Facebook, do we go yard science? Do we start disruptive marketing instead of intent based marketing, which is great from Google?

Yeah.

What are you spending per day on that?

So we have, the Google Ads are specifically for every town. So we got probably six ads because we got A pretty good area around us. We're doing about 15 to 20 bucks a town per day.

Okay, that's pretty good. So around 1500 bucks a month. Yeah, that's pretty good. And I think it's a function of, you know, if. If you run this for three weeks and now you have customer acquisition costs and it's 20 bucks, we're like, oh, yeah, great, let's put more money on this. $5 more per day per city. So you should know within a week or two, like getting some good data, assuming that tracking code is set up correctly, you should start having some pretty good data on that.

Okay. All right.

And the same thing is true with Facebook. Facebook is disruptive marketing, which means I can throw more money at it. But the same thing is true. Like you can put a Facebook pixel behind that, track that, that lead form and know exactly how many people are actually submitting estimates and then see how many of them convert and what the value of that is. So that's the nice thing about doing it online is you will get a very clean track.

Yeah, yeah. The other thing is like, when speaking of Facebook and Facebook marketing and stuff, there is a couple of big players in the area that are higher priced than we are. Actually, one of the companies I used to work for, how do we stand out from the crowd and how do we stand out and attract people to us? Because if we. Yeah, the other thing is like speaking of Facebook and Facebook marketing and stuff, there is a couple of big players in the area that are higher priced than we are. Actually, one of the companies I used to work for, how do we stand out from the crowd and how do we stand out and attract people to us? Because if we start running ads, if crazy thing is they offer 50% off in their product or a thousand bucks off the door and stuff like that. We are start running ads if crazy thing is they offer 50% off in their product or a thousand bucks off the door and stuff like that. We are not that high priced that we can afford to do that. How do we kind of stay up with the big boys? I mean, or should we even worry about that?

Well, this is. This is why they're the big boys is because they figured out, okay, we go premium and then when we need to get people in the door, we always have room to move down. Right. So this becomes a very much a game of, okay, well, maybe we don't raise price by 15%, maybe raising by 25%, knowing then we have margin to.

Not that high price that we can afford. To do that, how do we kind of stay up with the big boys? I mean, or should we even worry about that?

Well, this is, this is why they're the big boys is because they figured out, okay, we go premium. And then when we need to get people in the door, we always have room to move down. Right. So this becomes a very much a game of move down. In terms of making offers. We can use scarcity, we can use urgency, we can use the date, you know, a holiday to say, hey, everything's 10% off or $100 off the store. So, you know, there's a reason why they're big. And that is like when you go, when you go premium, you now have the margin when needed to be able to move down and make an offer and get people to move.

Yeah, well, I mean, for me, I personally thought that we were already at a premium.

Okay, well, maybe we don't raise prices by 16, maybe raising by 25%, knowing then we have margin to with, with a 40 net.

Because, I mean, these are not low ticket items. Like, you know, there's three doors and we're about $10,000. Right? So, and I know these, these other companies, they're worse. But the biggest problem with them is.

When they go and move down in terms of making offers, we can use scarcity, we can use urgency, we can use the date, you know, holiday.

When they go and quote a project, there would probably be right around 20,000 for those three doors. The moment they see a customer freak out or not, trust me, whatever, they would almost instantly drop the price by 50% in their face right there.

That's, they say, hey, everything's 10% off or $100 off this door. So, you know, there's a reason why they're big. And that is like when you go, when you go premium, you now have the margin when needed to be.

You know, that's, that's the kind of conversation that everybody's having in the area about those companies. And that's why I kind of like what they do to a point. But I also don't like it because, you know, they like us because we're like a family business and those guys.

Are monsters to move down and make an offer and get people to move.

Yeah, well, I mean, for me, I personally thought that we were already at a premium right there, just, you know, doing crazy stuff.

So, so here's what I would do. I would make it where, let's just call it the $20,000. It includes crazy offer. Like, it's crazy good Stuff. So for example, we come back at month six and, and month 12, we do a tune up, for example. I'm just making stuff up. You build tons of value with, with.

A 40% net because I mean, these are not low ticket items. Like, you know, there's three doors and.

We'Re about 10 that they don't even offer right now, like return service, maintenance, repairs, guarantees, warranties, whatever. And then you always have the ability to take stuff down in terms of scope of work and those guarantees, warranties, etc. To get within the price range of.

Right. So, and I know these, these other companies, they're worse. But the biggest problem with them is when they go, when they go and quote a project, they would probably be right around 20,000 for those three doors. The moment they see a customer freak out the customer.

And so, for example, like right now you have workmanship guarantees, right? And what is that exactly? Like if you install a door is.

Like, hey, or not, trust me, whatever. They would almost instantly drop the price by 50 in their face right there. That's.

If it ever breaks, we'll come fix it. Like, what does that, what does that look like?

Yeah, I mean, literally, if, if in this case here, I mean, there's hinges and there's seals and stuff that go, that go eventually, right? When that day comes, we come out, we come and replace them. Right. You know, that's, that's kind of what we had to do and that's why it got to the closing ratio where we're at. And also we're able to raise our price because we're selling more now than we did before, was charging 25% less because, just because of that, you know, that's, that's the kind of conversation that everybody's having in the area about those companies. And that's why I kind of like what they do to a point. But I also don't like it because, you know, they like us because we're like a family business and those guys are monsters, right? They're just, you know, doing crazy stuff.

So here's what I would do. I would make it where, let's just.

Call it the 20 we brought to them, right in the way we speak.

So, you know, the same thing again, you do the same thing and we raise prices by 25% and we figure out more ways of adding value, right? And so I think like, if, what else could you do? If, like taking to the extreme, like if someone paid you three times as much for a door, what more could you do in terms of Ongoing service, warranties, guarantees. Is there staining? Like what other things could you,000$. It includes crazy offer. Like it's crazy good stuff. So for example, we come back at month six and, and month 12. We do a tune up for example. I'm just making stuff up tons of value into that. Last year at Augusta Lawn Care, the average location grew revenue by more than 27%. And we're on track to beat that this year. If you want to see why, go to augustalawncare services.com franchise and watch over 50 videos and case studies of different owners that took their independent lawn care business and turned it into Augusta Lawn Care. Like garage doors, do you install those?

Yes.

And they don't even offer right now like return service, maintenance, repairs, guarantees, warranties, whatever. And then you always have the ability to take stuff down in terms of scope of work.

And so yeah, I guess until now I've mainly just been focusing on the man doors and windows. Garage doors is one of the other things. And that's. So the garage pricing itself, there's just good margins when it comes to service work. It's. It's not as good. But what I was thinking on the garage side of it is because nobody offers the lifetime workmanship on garage works around here, here.

And those guarantees warranties, etc to get within the price range.

They'll offer one year and that's it. Nobody offers lifetime parts replacement like springs and cables and weather stripping. We have a problem the customer.

And so for example, like right now you have workmanship guarantees, right? And what is that exactly? Like if you install a door is like hey product.

We have a supplier that offers 25 years warranty on the panels and certain parts so we can make that door bulletproof. The only thing that we have to do is if something goes haywire, if it's spring breaks or something, if it.

Ever breaks, we'll come fix it. Like what does it, what does that look like?

Yeah, I mean literally if, if in this case here, I mean there's hinges and there's seals and stuff that go. That go eventually, right. When that day comes, we come out, we come and replace them. Right? Something, we go out and replace it, which cost us 50 bucks, but something can sell for 400, right. So that's kind of what I'm thinking of doing on the garage side of it. But I want to wait until I have a little bit more time. I want to keep putting fire on or putting gas on the windows and doors because that's where leads are coming in right now. Focus and then eventually go and sell the garages back to your customer. Because I realized that it's. If I want to change the way we sell at garage doors or what we offer in garage doors, I gotta have a unique. That's kind of what we had to do. And that's why it got to the closing ratio where we're at. And also we're able to raise package and be ready to throw this out on the market. Just go heavy on it. And I'm just not ready. And I don't really have my team ready because I don't want to be the bottleneck too. So if a customer calls in and I don't have sell prices because we're selling more now than we did before with charging 25% less because just because of value we brought to them right in the way we speak.

So you know the same thing again, you do the same thing. We raise price.

Somebody in the office. I can answer all these questions. Then it doesn't make sense for me to do that. So I got. We're planning on sending the guys out for some training and stuff in January. After that we'll be able to launch for next spring. And that's kind of the goal is to offer lifetime warranty on the product by 25.

We figure out more ways of adding value. Right. And so I think like if what else could.

And labor and on the garage side of it. And that's we're going to set on the garage set or side of it. But the garage door market and the window door market is two different markets in our area. Garage doors is a very low margin window.

And you do if like taking to the extreme, like if someone paid you three times as much for a door, what more could you do?

Or it's. It's a very high margin, but it's also because of the value that they bring.

I think both of those. You can always create an offer that's very high, very expensive and has a ton of value that is easy to downsell into your regular offer. Right. So for example, with the garage doors, like, yes, it's quote lower margin, but I can make if all of a sudden they pay me 50% more because I showed the value of what a life in terms of ongoing service, warranties, guarantees. Is there staining? Like what other things could you make time warranty looks like. And it's like, look, this is like maintenance. This is repairs. If anything happens, we're coming out here into that. Last year at Augusta Lawn Care, the average location grew revenue by more than 27% and we're on track to beat that this year. If you want to see why, go to augustalongcareservices.com and we're going to fix it. That all of a sudden become a 50% margin business. If I'm able to sell the, the ongoing maintenance and the warranty into the, in the. And in my own honestly too be like, hey, maybe you don't sell at the higher price, maybe you sell at the regular price, but you sell a recurring package. So it's like, hey, on an annual basis we come out, we change the, we tighten this up, we change this, we look at the tracks, we do the guy you could create that list and basically now you have a recurring stream of revenue from that same customer. And that recurring revenue is 40, 50, 60% profit margin. And so I think there's definitely ways that either a, you make a grand slam offer that's super, super valuable and we get. Some people are going to say yes, like some people are going to say franchise and watch over 50 videos and case studies of different owners that took their independence to a 50% more expensive door, window or garage door. If you say here's all the extra stuff I'm going to give you that no one else is going to give you. And just you saying, hey, everyone in our market gives a one year warranty lawn care business and turned it into Augusta lawn care. Like garage doors, do you install those?

Yes. And so yeah, I guess until now I've may have just been focusing on demand doors and windows. Garage doors is one of the other things and that's so the garage or pricing itself, there's good margins when it comes to service work. It's, it's not as good.

We give lifetime or we give 10 years and that's this. And that's why it costs more. And the reason, because on average every five years you're going to need to do a repair. It's going to cost you a couple thousand dollars right now. This is going to allow you to be able to like forget about that. We come every year, make sure everything's on track, everything's, you know, doing good, whatever. But I think the same thing is true with doors and windows. It's a matter of just getting creative with like what are the problems that they hit around years 3, 5, 10.

But what I was thinking on the garage side of it is because nobody offers the lifetime workmanship on garage doors.

Around here to solve those up front and giving them a really, really good offer that it warrants a 50% price increase. Like, I think tomorrow we raise prices by 15% and nothing but good things happen. But what is the 50% they'll offer?

One year and that's it. Nobody offers lifetime parts replacement like springs and cables and weather stripping. We have a product, we have a supplier that offers 25 years warranty on the panels and certain parts so we can make that door bulletproof. The only thing that we'd have to do is if something goes haywire, if a spring breaks or something increase, and.

What value would we have to provide for that? That's the real kicker.

Yeah, for sure. Yeah. No, that's, that's a good thought. And I, you know, and I think it just goes back to what we just did this spring. Right. Because I mean like giving like I was selling doors basically at cost just to keep my guys busy. And also I'm like, you know what? Heck, I'm dire. I'm tired of playing this game for free. We're going to raise the prices, we're going to, you know, change the value that we bring to them. And it just, at this point, they can't compare. I'll see the small guys, right. All the customers that come to us right now, or most of them, they appreciate what we bring to the table. So. And I guess to a point, I think in one way, you know, like you mentioned selling, like when you sell garage doors, you sell them like a care thing, we go out and replace it, which cost us 50 bucks. But some of them can sell for 400. Right. So. So that's kind of what I'm thinking of doing on their package or something where we come in every year. I think one way is better to do that than to offer a lifetime. Because there's nobody maintaining the stores. Right. If we come in every year or so in like general garage side of it. But I want to wait until I have a little bit more time. I want to keep putting fire on or putting gas on the windows and doors because that's where the leads are coming in right now. Focus. And then eventually go and sell the garages back to your customer. Because I realized that if I want to, to, you know, change the way we sell our garage or what we offer in garage doors, I gotta, you know, have a unique pair, always dead slow. So if we have, we have the team out in January coming out to inspect everything, make sure everything's good, then we're in better shape and smaller. The smaller chance of something go going wrong there.

Yeah. And the warranty a Lot of times people are just like used of lifetime warranties. Doesn't mean anything. But if you say hey we guarantee this is always going to work and to do that we come on every 6 or 12 month basis. Now there's real value you're offering. You know, that's a 10 minute visit to them. That's like a lot of value that you could raise price by 20 to 50% on them.

So package and be ready to throw this out on the market. Just go heavy on it because. And I'm just not ready and I don't really have my team ready because I don't want, I don't want to be the bottleneck to this. Like if a customer calls in and I don't have somebody in the office, I can answer all these questions then it doesn't make sense for me to do that. So I got. We're planning on sending the guys out for some to sell them at a premium price. Would you charge them a fee to go or would you have all the like the fees factored into, into the price or where the inspection is free and whenever they need parts replacing stuff that would be extra.

So you could do it two ways. You could say hey look, here's the price of Thor. And if you. This is the package. I'm just gonna make up numbers. $10,000. That's our full package. Our gold package.

Our gold package is training and stuff in January. After that we'll be able to launch for next spring. And that's kind of the goal is to offer lifetime warranty on the product.

We're gonna come here every single year as long as you own this house. We will come here, we will inspect this thing, we will fix anything, lifetime, whatever. It's too expensive. Okay, great. We can, we have two other options. One, we can sell you the five thousand dollar package which is we install this and that's it. We also by the way the add on to the $5,000 packages. You can have us where every year we come back, it's 299 per visit and we come out, we do all.

Of these things and labor and on the garage side of it and that's. We're going to set it on the garage set or side of it.

But and if you don't want to pay the 10,000, you can pay the 5,000 with this add on. So you have the premium offer, the downsell and then the add on. The add on being hey if you, if you want to be cheap about it, but you also want to be on this 200 299amonth subscription or 299 per year subscription will come back and do all of these things. Right.

So like you could the garage door market and the window door market is two different markets in our area. Garage doors is a very low margin.

Window and those numbers are just made up. You would figure out what the numbers are for your, your industry but then it builds value in or it's, it's.

A very high margin but it's also because of the value that they bring.

I think both of those you can big offer too. It's like hey, do you want us to be coming every single and doing inspection that does not include repairs, then just buy this other big package. It includes repairs and the actual visits coming to your house.

Yeah. And yeah, I'm not sure if you answered not sure. Maybe I didn't catch it. But so would that be just like the, the, the labor side of it or would it be the, the parts as well?

I would probably do it where it's like hey, it's an inspection like the annual inspection and then your grand slam offers like everything gets fixed. That includes every. You will never have to pay anything else. Right. And so you also know that people move every five to seven years typically. So you're really only warranting it for that long. But I would tie in little stuff like what gets annoying about like say a garage always create an offer that's very high, very expensive and has a ton of value that is easy. Or it's like my batteries die or my kid plays with the little thing and it stops working the remote or someone pulls the lever and it gets off the tracks like all the little things. And then I would tie it back to like warranties for example, like a downsell into your regular offer. Right. So for example with the garage door, like yes, it's quote lower margin but I can make if all of a sudden they pay me 50% more because I showed the value of what a lifetime warranty looks like. And it's like look, this is like maintenance, this is repairs. If anything happens, we're coming out here and we're going to fix it. That all of a sudden become a 50 margin business. If I'm able to sell the, the ongoing maintenance and, and the warranty into the, in the. And it might almost honestly too be like hey, maybe you don't sell at the higher price. Maybe you sell at the regular price, but you sell a recurring package. So hey, on an annual basis we come out, we change the, the we tighten this up, we change this, we look at the tracks we got do the guy you could create that list. And basically now you have a recurring stream of revenue from that same customer. And that within 24 hours if this door doesn't open, we will be here. Like those are the type of things that like in their brain make sense to you. It's like, oh, I gotta grease, I gotta tighten the chain. They don't care. It's like, look, if you have a problem with this door, if this does not. If this you click this button, it doesn't open. I'll be here within 24 hours. If you either buy this Grand Slam one or this the subscription like so I think it just matter of like, like what's that value to them? And then realizing that let's only 10 or 15% of people go after the big package. Great. You now have something to down sell into which is your current pricing. Right?

Yeah, that makes sense. Just gonna take some notes real quick, see what else are we here. And I guess in that. And that would also include let's say, I mean if, if something goes haywire on the door, let's say the door goes off track and gets destroyed, the panels and everything, everything would have to get red redundant. Then that would all kind of be included in that in the grandson package there.

And you can just run, you can just run the math from like hey, if this ever falls off the track and this all crumples up, that could be a $3,000 fix. Like that one thing just paid, paid for most of what I'm giving you for the rest of your life. Right. So you just have to run some quick math for them.

So yeah, that's cool. Now in terms of incentivizing like setting up a pay structure for this, I haven't. So I. The company used to work for, we got paid piecework which was seven. It's a pay for performance right now in our company. I guess I've got, I've got one.

Crew that's doing the recurring revenue is 40, 50, 60 profit margin. And so I think there's definitely ways that either a, you're installing garages right.

Now in windows and doors. How, how do we, how do we set them up to incentivize them?

Like make a grand slam offer that's super, super valuable. And we get. Some people are going to say yes. Like some people are going to say yes.

There's different things and you know, we're not quite. I guess that would also break it up to more being More efficient too. Right. If we look at some incentivizing the work and find them to be efficient.

Do you already do piece work?

No, not right now. The company used to work for. They paid us. I have an idea what it works but it's just we're not consistent as.

To a 50 more expensive door, window or garage door. If you say here's all the extra.

Enough and it just makes it a little hard.

Yeah, like the, the end goal is like trying to tie tie in this stuff. I'm going to give you that no one else is going to give you. And just you saying, hey, everyone in our market gives a one year warranty. This product equals this number of budgeted hours like you're basically doing already probably with pricing. It's like, hey, here's our product cost and then here's how many hours it takes to install. And then they get a percentage of the labor revenue ultimately. So I think like Lynn coming in like organizing things will be the unlocked down the road being able to do something around piecework and then what I would do because the technicians are the have the ability. We give lifetime or we give 10 years and that's this and that's why it costs more. And the reason because on average every five years you're going to need to do a repair. It's going to cost you a couple thousand dollars right now. This is going to allow you to be able to like forget about that. Will it upsell is I would be tying incentives to. Okay, did they get the premium package? Did they get the add on? I would really. I'd just be incentivizing them. It's like great. If I have an extra 50% margin, I'm definitely happy to give 20% of that away to the team. And then all of a sudden they have like huge bonuses that they can get if they're making these upsells for you.

Yeah, that's the next thing a team currently that are.

They're. We come every year, make sure everything's on track, everything's, you know, doing good, whatever. But I think the same thing is true with doors and windows. It's a matter of just getting creative with like what are the problems that they hit around year 3, 5, 10.

They're friendly, they're nice, but they're. They're not the people kind of person. They're not, they're not salespeople. Right. Like the, the more the customers leave them alone, the happier they are. Right. So. So there's no. But it's like I Said we've got a solid team now. In the next hire that I'm going to do, it's going to be someone that that's, that's able to do the upsells and stuff like that. So that's, that's all.

Now I hear a lot across a lot of different industries. They're all talking, you know, solve those.

Up front and giving them a really, really good offer that it warrants a 50 price increase. Like I think tomorrow we raise prices by 15% and nothing but good things happen. But what is the 50%?

If you can do 20 to 30% net that's golden. Like you know, everybody's living a high life at that point. Point. You know what's at the end of the day, do you just see what the market bears or do you have like a certain target on what you, what you're happy with and just, you know, just, just kill it?

Well, it's a function of like, like what you said before. You're like hey it's 40, we're making 40 net on this job for example. Like there's nothing to, to increase and what value would we have to provide for that? That's the real kicker.

Yeah, for sure. Yeah, no that's, that's a good thought. And I, you know, and I think it just goes back to what we just did this spring, right Because I mean like I was giving say that.

You can't charge more just because you have 40% on job. Like Microsoft makes 95% margin on their stuff. They're not like asking for forgiveness. They are still raising prices. So like there's nothing wrong with making more money. And so I think the biggest thing is you could get there tomorrow just by raising your prices. Like I genuinely believe you raise prices by 15% and you probably that 20% camp.

Like I was selling doors basically at cost just to keep my guys business busy and all of a sudden I'm like, you know what heck looks, I'm tired. I'm tired of playing this game for free. We're going to raise our prices. We're going to, you know, change the value that we bring to them. And it just at this point that they quickly.

So it's just a function of when you slow down growth and you're willing to take profits and actually maximize those by raising your prices to the point where you stop growing, you're still going to grow like a big chunk this year. And so I believe that you raise price by 15%. You hardly see a dip in close ratio and Your profits do get to around that 20% margin spot it just like, easily. You could do 20 tomorrow. You just gotta raise prices.

Yeah. Okay. All right.

If you can get to that 25 marker, that's usually where you now have enough margin to be able to hire a general manager or like, someone else will take a lot of the stuff off your plate and that becomes. Then you become. You can make it more passive. Right. In terms of like, hey, now I got someone that's like, actually incentivized on the bottom line. They're expensive, so maybe I only take 10% as distributions.

In the business, they can't compare us to the small guys. Right. All the customers that come to us right now, or most of them, they appreciate what we bring to the table. So. Yeah. And I guess to a point, I think in one way, you know, like you mentioned selling, like when you sell garage doors, you sell them like a care package or something where we come in every year. I think one way is better to do that than to offer a lifetime because there's nobody maintaining the stores. Right. If we come in every year or so in, in like, in general, but.

And it's running a 20, 25% net, but I'm giving a big chunk of that away to a general manager so they can run it while I'm gone.

Yeah. And that's. That's kind of the goal to do that in the long run, not in the near future. But yeah, I guess, yes, we'll see what the future holds. But I mean, I think overall, I think we've come a long ways in the last couple years, especially considering we redid everything last year because we have, like, I hear of companies closing almost every month, and we're always dead slow. So if we have. We have the team out in January coming out to inspect, they really make sure everything's good. Then we're, you know, like, companies are in similar industry than us. They're. They're closing their doors. And right now it's actually a perfect timing for us to hire because a lot of companies laid off their A players. And that's when we go in. Indeed. And we, you know, bring them in and stuff. So that's. That's been working out really well. Okay, well, that's. That's all the questions I have. I guess at the end of the day, you know, you've seen the website and is there any other recommendations? Anything you have for me?

No, I think you're moving the right direction. Since we last talked in better shape.

And smaller the Smaller chance of something go going wrong there.

Yeah. And the warranty, a lot of times people are just like used of lifetime warranties. Doesn't mean anything. But if you say hey we, we guaranteed this is always going to work and to do that we come on every 6 or 12 month basis. Now there's real value you're offering, you know, that's a 10 minute visit moving away from the dealers towards something that's much less price sensitive. And they wouldn't, you know, we don't have the blurry lines of like their dealers and they're kind of like our partners slash or competitors. So big fan of the website. I would probably cut down a lot on amount of text on your homepage. And so if I look.

There like I would probably cut a lot of this text out. I'll to them that's like a lot of value that you could raise price by 20 to 50% on them. So all I need to know is we do windows, doors, garage doors and on in Leamington, Ontario. That's like all I need to know. So I would really reduce this amount of text. Unless I see this up top here which is your storefront, I don't know what your service area is. So I would really reduce the amount of text here.

So you'd sell them at a premium price. Would you charge them a fee to go or would you have all the like the fee?

All we want them to do is click this button. So like let's just like reduce the amount of text. All they know is doors when factored.

Into, into the price. So where the inspection is free and whenever they need parts replaced and stuff that would be extra.

So you could do it two ways. You could say hey look, here's the price of the door and if you those garage doors in this area, service area, go click this link like that's it. This is great. This is really clean. But if they want to get all this text they can get it down here. But at the very top there I'm just trying to say okay, these are the three things I do. Like this is it. Precision door. I don't want to use it. I just say doors, windows and garage doors serving, I'm guessing. Leave me to Ontario. This is the package. I'm just gonna make up numbers. $10,000. That's our full package. Our gold package. Our gold package is like that's up here. The button then gets clicked more. So that'd be my only thing in terms of online because if you're driving traffic to this Site from say Google. We already know they need a door, we already know they need a window. We just need them to click this button. And so the likelihood of clicking that button is much higher. We're going to come here every single year as long as you own this house. We will come here, we will inspect this thing, we will fix anything with the last text. I would also say so like let's just walk this through. So for example, they're getting get to your page. They kind of have lifetime whatever. It's too expensive. Okay, great. We can, we have two other options. One, we can sell you the $5,000 package which is we install this and that's it. We also have by the way the add on to the $5,000 package. Okay, all right. I'm in the right spot because I see this great. Oh quote, boom. Okay, great. Let's start with a great one. Have a product mind to fill out the form below. 3. Okay, I think that's like a given. I get a quote and then I get the job done. And also I gotta scroll all the way down here. I would love it to see. I would love to see because you can have us where every year we come back it's 299 per visit and we come out, we do all of these things and that this text all goes away. I say it says elevate your door with with doors, windows and garage doors serving LinkedIn Ontario since 2015, whatever it is. And then off the right hand side here I have the form condensed down to one third of the screen that has all the information they need to put in in. So they don't need to scroll, they don't need to click, they don't have to switch to a different URL. They just can submit their infinity. If you don't want to pay the 10,000, you can pay the 5,000 with this add on. So you have the premium offer the downsell information right here. Because especially if you're driving from Google, they already have intent to buy. They already know what they want in the add on. The add on being hey if you, if you want to be cheap about it but you also want to be on this 200, 299amonth subscription or 299 per year subscription. We'll come back and do all of these things right. So like you could. And they're just looking for a quote and so if I can get it right here the likelihood you will double your leads versus them having to click see all of this text scroll go down here and then now there's like an entire page worth of a form. Shrink this down by like 80% and make it where it's a third of the page.

Okay.

And those numbers are just made up. You would figure out what the numbers are for your, your industry. But then it builds value and that's, that's fair.

And what we've also done is for every page, let's say for Windsor for an example, we have a separate landing page for Windsor with all the information and stuff on there.

Cool. So this is great because now, now when you're targeting that area, it'll, they'll get to the page and say, sir, the big offer too. It's like, hey, do you really want us to be coming every single and doing inspection that does not include repairs being Windsor, it's like, okay, this is for me. The only thing you need them to know once they click on a Google Ad is do they do my service then just buy this other big package includes repairs and the actual visits coming to your house and do they serve my area? That's all I need. And if I can't quickly check those box, there is a drop off happening.

Yeah. And yeah, I'm not sure if you answered. Not sure. Maybe I didn't catch it. But so would that be just like, yeah. Now when you run Google Ad, like Facebook ads and stuff, let's say with a promotion offering 20, 30% off Windows and doors, like is do you think that it's important to have that same promotion on your website? Right. Or the, the, the labor side of it? Or would it be the, the parts as well?

I would probably do it where it's like, hey, is an inspection or is.

It, or is it good enough if we just like run the ads on like Facebook and Instagram and you know they just see it right there and they can just go and request a code from there.

It just depends on like what the, the offer is. I would, I would prefer that it cross the whole system. Like your whole business has a certain offer this time of year. Any traffic that's coming through regards, they're walking in the door. Facebook. And no matter what like the annual inspection and then your grand slam offers like everything gets fixed. That includes everything they get in this offer that's the easiest to track. And I don't think you're of size yet where it's like, okay, we are going to never have to pay anything else. Right. And so you also know that people move every five to seven years. Typically you make an offer for Facebook or make an offer for Google. We're going to make an offer for people who walk in the door. Like that's just going to get confusing. So I would. So you're really only warranting it for that long. But I would tie in little stuff like what gets annoying about like say a garage. Probably just be like, make it much more time like, hey, for this weekend, the Memorial Day weekend or whatever, you know, Canada Day, boom. Like this is the offer.

Okay.

Or it's like my batteries die or my kid plays with the little thing and it stops working the remote or someone pulls.

Right, that's cool. Yeah, that's good.

So I think some of the takeaways I'd say like right off the rip is like definitely some changes to the website could massively improve your conversion rate in terms of reducing, reducing the text, getting the form on the first page, making it very simple. Like these are, these are what we install. This is the area we serve. And then there's the lever and it gets off the tracks. Like all the little things. And then I would tie it back to like warranties, for example, like within 24 hours, if this door doesn't open, we will be here. Like those are the type of things that like in their brain. The takeaway I think is raise your prices immediately 15% easily. I would first, the only thing I would ask you to do is check with Lynn and get an actual close rate number and then track that over the next few months. So like, okay, hey, our close ratio last month, our close ratio year to date, if it's 65, 70%, raise prices immediately. Makes sense to you. It's like, well, I gotta agree so I gotta tighten the chain. They don't care. It's like, look, if you have a problem with this or if this does not, if this, you click this button, it doesn't open, I'll be here within 24 hours. If you either buy this Grand Slam one or the, the subscription, like so I think it just matter of like what's that value to them? And then realizing that let's indiscriminately raise prices, you'll not affect the business. And then if it's like 40% because we, we don't know, then maybe we pause the brakes a little bit because we don't want to cut that down to 20%. But if you're pretty confident, high 60s, I'd be raising, raising your prices.

And you would never get concerned that by raising prices too much, you're also going to go down the drain. I Guess that's probably kind of. That's why it's nice to keep track of leads and stuff. Right. And just. Or I guess your closing ratio and know where it's at and adjust accordingly.

Yeah, I just don't see you in the commodity business anymore because you're not selling to dealers, you're selling to customers. And so the goal is to sell on value and not price. And so when 70% of people are accepting the bid, they're saying that value is far above price. And so by raising your prices 15%, you might see a 5 to 10% drop in close rate. And if it dropped 20%, which I don't think will because you're not a commodity business anymore. But if it did, you always just change it back.

Yeah. Well, that's cool. Okay. That's awesome. No, that's good. We'll definitely get this all implemented.

Only 10 or 15% of people go after the big packets. Great. You now have something to downsell into, which is your current pricing. Right?

Yeah, that makes sense. Just gonna take some notes real quick, see what else are we here? And I guess in that. And that would also include, let's say, I mean if, if something goes haywire on the door, let's say the door goes off track and gets destroyed, the panels and everything, everything would have to get redone. Then that would all kind of be included in that in the grandson package there.

And you can just run, you can just run the map and we will make.

See what happens and we will go from there.

You're the man. I'll be watching from afar. Take care.

Sounds good. All right, thank you.

From like, hey, if this ever falls off the track and this all crumples up, that could be a $3,000 fix. Like that one thing just paid. Paid for most of what I'm giving you for the rest of your life. Right. So you just have to run some quick math for them. So.

Yeah, that's cool. Now, in terms of incentivizing, like setting up a pay structure for this, I haven't. So I. The company used to work for, we got paid piecework which was seven. It's a pay for performance right now in our company. I guess I've got, I've got one crew that's doing the garage. Installing garage right now and windows and doors.

How.

How do we, how do we set them up to incentivize them? Like since there's different things and you know, we're not quite. I guess that would also break it up to more being more Efficient too, right? If we like it some incentivizing the work and find them to be efficient.

Do you already do piece work?

No, not right now. Oh, company I used to work for, they paid us. So I have an idea what it works, but it's just we're not consistent enough and it just makes it a little hard.

Yeah, like the, the end goal is like trying to tie, tie in this product equals this number of budgeted hours. It's like you're basically doing already probably with pricing. It's like, hey, here's our product cost and then here's how many hours it takes to install. And then they get a percentage of the labor revenue ultimately. So I think like Lynn coming in, like organizing things will be they unlocked down the road being able to do something around piecework. And then what I would do because the technicians are the have the ability to upsel would be tying incentives to. Okay, did they get the Permian package? Did they get the add on? I would really, I'd just be incentivizing them. It's like, great. If I have an extra 50% margin, I'm definitely happy to give 20% of that away to the team. And then all of a sudden they have like huge bonuses that they can get if they're making these upsells for you.

Yeah, that's the next thing a team currently, they're, they're, they're, they're friendly, they're nice, but they're, they're not the people kind of person. They're not, they're not salespeople. Right. Like the, the more the customers leave them alone, the happier they are. Right. So. So there's no. But it's like I said, we've got a solid team now. In the next hire that I'm going to do, it's going to be someone that's, that's able to do the upsells and stuff like that. So that's all.

Now I hear a lot across a lot of different industries. They're all talking, you know, if you can do 20 to 30% net, that's golden. Like, you know, everybody's living a high life at that point. You know what's. At the end of the day, do you just see what the market bears or do you have like a certain target on what you're happy with and just, you know, just, just kill it?

Well, it's a function of like, like what you said before. You're like, hey, it's 40%. We're making 40% net on this job. For example, like, there's nothing to, to say that you can't charge more just because you have 40% net on job. Like, Microsoft makes 95% margin on their stuff. They're not like asking for forgiveness. They are still raising prices. So like, there's nothing wrong with making more money. And so I think the biggest thing is you could get there tomorrow just by raising your prices. Like, I genuinely believe you can raise prices by 15% and you're probably in that 20% camp pretty quickly. So it's just a function of when you slow down growth and you're willing to take profits and actually maximize those by raising your prices to the point where you stop growing, you're still going to grow like a big chunk this year. And so I believe that you raise price by 15%, you hardly see a dip in close ratio. And your profits do get to around that 20% margin spot it just like easily you could do 20% tomorrow. You just got to raise prices.

Yeah, okay. All right.

If you can get to that 25% marker, that's usually where you now have enough margin to be able to hire a general manager or like someone else will take a lot of the stuff off your plate and that becomes, then you become, you can make it more passive. Right. In terms of like, hey, now I got someone that's like actually incentivized on the bottom line. They're expensive. So maybe I only take 10% as distributions in the business, but. And it's running a 20, 25% net, but I'm giving a big chunk of that away to a general manager so they can run it while I'm gone.

Yeah, and that's, that's kind of the goal to do that in the long run, not in a near future. But yeah, I guess, yes, we'll see what the future holds. But I mean, I think overall, I think we've come a long ways in the last couple years, especially considering we redid everything last year because we have like, I hear of companies closing almost every month. You know, like companies are in similar industry than us. They're closing their doors. And right now it's actually, that's perfect timing for us to hire because a lot of companies laid off their A plan players and that's when we go in. Indeed. And we, you know, bring them in and stuff. So that's, that's been working out really well. Okay, well, that's, that's all the questions that I have. I guess at the end of the day, you know, you've seen the Website. And is there any other recommendations? Anything you have for me?

No, I think you're moving the right direction since we last talked. Moving away from the dealers towards something that's much less price sensitive. And, you know, we don't have the blurry lines of like, their dealers. And they're kind of like our partners slash or competitors. So. Big fan of the website. I would probably cut down a lot on amount of text on your homepage. And so if I look here.

There, like, I would probably cut a lot of this text out. All I need to know is we do windows, doors, garage doors, and on in Leamington, Ontario. That's like, all I need to know. So I would really reduce this amount of text. Unless I see this up top here, which is your storefront. I don't know what your service area is. So I would really reduce the amount of text here. All we want them to do is click this button. So, like, let's just like reduce the amount of text. All they need to know is doors, windows, garage doors in this area, service area, Click this link. Like, that's it. This is great. This is really clean. But if they want to get all this text, they can get it down here. But at the very top there, I'm just trying to say, okay, these are the three things I do. Like, this is it Precision door. I don't want to use it. I just say doors, windows and garage doors serving. I'm guessing Leamington, Ontario. Like, that's up here. The button then gets clicked more. So that'd be my only thing in terms of online. Because if you're driving traffic to this site from, say, Google, we already know they need a door. We already know they need a window. We just need them to click this button. And so the likelihood of clicking that button is much higher with less text. I would also say. So, like, let's just walk this through. So for example, to get to your page, they kind of. Okay, all right. I'm in the right spot because I see this. Great.

Okay.

Oh, quote. Boom. Okay, great. Let's start with a great one. Have a product in mind. Two, fill out the form below. Three, Okay, I think that is like a given. I get a quote and then I get the job done. And also I gotta scroll all the way down here. I would love it to see. I would love to see that this text all goes away. I say, it says, elevate your door with doors, windows and garage doors serving lington, Ontario since 2015, whatever it is. And then off the right hand side here I have the form condensed down to one third of the screen that has all the information they to put in. So they don't need to scroll, they don't need to click, they don't have to switch to a different URL. They just can submit their information right here. Because especially if you're driving from Google, they already have intent to buy, they already know what they want. They're just looking for a quote. And so if I can get it right here, the likelihood you will double your leads versus them having to click, see all of this text, scroll, go down here and then now there's like a an entire page.