Phil Risher doubled his oil-tank removal company's revenue from $2M to $4M in a year by switching to flat-rate pricing at $1,400 per job. The fixed price helped sales reps close more deals and let crews work faster, uncovering more leaking tanks that drove higher profits.
Questions this video answers
From basically $2 million to $4 million in 12 months.
$1,400 (all included).
About 100 days of past jobs ('went back like 100 days').
Chapters
This is what really took us from basically 2 to 4 million in 12 months because I changed the entire pricing structure of the industry. So the way it worked in the oil tank industry is you would call companies and you say, I want to remove my oil tank. And they say, all right, well, it starts at, let's say 1200 bucks, but we don't know how much the permit is. We don't know how big your tank is. We don't know what's inside your tank. We don't know if it's under concrete or if it's in the driveway or if it's hard access. There's all these unknowns, which is legit, right? But what I did is I went back like 100 days and I ripped every oil tech rule of a job we did. I looked at all the additional charges we were charging for and I came up with an average. I said, you know what, I'm just going to go with a flat rate and some jobs are going to lose money, some jobs are going to make money, but you know what, on overall basis, our closing percentage is going to go this much higher, which is then going to lead to more leaks. Because if you find more oil tanks, you pull more oil tanks, you're going to find more leaking oil tanks, which is where a lot of high profit is. And that's essentially what I did. I went to a flat rate pricing, which was so simple for my sales rep to close because it's. There was no unknowns. It was like, our price is 1400 bucks all included and there's no unknowns. Customers like, ah, this is easy, I'll sign right now. So that's what we did. We just took off like wildfire. You know, as far as the revenue.
