these 14 minutes will change your business FOREVER!!! (I came up with this in the shower)
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- เผยแพร่เมื่อ 16 ก.ย. 2024
- these 14 minutes will change your business FOREVER!!! (I came up with this in the shower)
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Sleeping in a closet at the office next door to the gym you own - perfect setup basically. Super efficient and productive.
This is gold thanks Mike! We are sending estimates very fast these days. Lately right from the pool on my phone. Its important to get estimates out fast and keep moving. We have a 40% close ratio.
I did some very similar things this season that go along with this. I have an answering service and instead of ten scheduling walk and talk I had them schedule phone consults with me. That way I can talk to the lead, filter if they’re a good fit or not and then do a drive by only if they need hedge trimming and base the quote off of sqft.
It’s really helped reduce the amount of time and gas wasted on walk and talks with people you find out aren’t a good fit for you. I turn away a ton of leads because they don’t fit our business model so that’s the process I put in place to save on time and money. I’m still working out in the field so I have to make sure my 2hr window of giving estimates is as efficient as possible
I love your videos but this just feels like common sense to me. Always lower your costs when you can. Keep up the videos!
I think a line representing Lead Flow would have help bring this graph together.
I would take that lead line from the zero 0 to the top right corner because of course you would not charge high price with low close rate less u got the lead flow aka demand to allow for it.
You bring so much value to the industry. Thanks as always grateful
Mike an excellent video as always, you are spot on. Thank You!
Always been a big fan of optimization problems.
I saw a post in a neighborhood Facebook group that someone was looking for mulch install. There was 25 different landscapers posting for the job in 5 hours. Most of these are Chuck in a truck. When you look at how saturated the market is with the race to the bottom it's hard to raise prices. I did raise prices this year. Surprisingly I only lost one customer and it was because I dropped them and accepted due to he was my only bi-weekly mow and I am cutting them out of my service all together. There is a lot to not going crazy on a price increase and providing a quality service. If people like who they have they will stick with them. Even for a few bucks more. It's hard to find someone you trust at a good price point.
Really good info, got me thinking. Thanks again for taking the time.
I agree with what your saying. The hurdle or hoop Id have to jump through is Im sure something you have personally experienced and maybe you can shed some light on. I am very much a people person. I can charge a higher fee and will close a substantial larger number of estimates even at this higher price if I meet the potential customer in person. So I guess the question becomes which is more profitable. the lower close ratio at the lower price with lower expenses or the higher close ratio at the increased sales price with higher expenses? and the only way to know that would be to track the actual numbers and compare ?
Very good point. Your close ratio can be huge even though you price way higher than average if you can develop a good report with people and demonstrate you sincerely care about their project.
We can’t keep up because of this. We just keep raising our hourly rate and no one has pushed back at all. It’s insane to me!!
plus when I meet the customer in person I not only get a higher pruce but I'll also up sell and add additional services. We've all seen it. A customer calls in and says they just want there lawn cut on a regular basis , and when you get out to the property they have it landscaped really nice with various shrubs and hedges and flower beds. Those additional items are not always seen on a map app. and even if they are, it can be very different when you at the property in person. plus I find when talking with the customer in person. you can get a much better indication of whats important.
I dont know, if you can charge an extra $10 / cut and you add $30 or $40 a month in additional services because you met them in person and you got the account because half the companies they called never called them back and out of the couple that did you were the only real person to stop out.
So is a new account and an increase on that one account. $60-$80 per month worth the expense of going out to see them one time ..
I'd say its easily worth it. Plus now that they have a face to go with a name. I bet you could argue customer retention would be higher.
Ive just totally convinced myself. meeting personally with most customers will pay dividends..All those who want to cut there costs and just send emails to customers and never meet them. More power to you. Its your business you can run it anyway you want. But slip up just one time and if they call me. I'll be upfront and ask them how much they were paying you. I won't say anything bad about you, I'll just point out things we could do to make the property look a little nicer. that justifys me charging more. And poof. you just lost the account to me and im charging more to do it. and then i explain to the guys exactly how things are to be done. and make sure they do it that way
Great video man.
Im watching this in the shower. I often watch you whilst im showering.
Bruh stop…
LOL!
Great content Mike!!
Landscaping jobs are hard to bid right without seeing the property. Even if you got the measurement from the client, they tend to be wrong and also other variables that could add time to the job. Also meeting with the client is a good selling point. Both side get a feel for the other person and start building trust right away. For lawn mowing or weed & feed visits though, that can all be done online and automated.
Agreed
Hey mike I love you’re content and have so much respect for how willing you are to help others! I know your a busy guy. I just a have a question as to what you think is the best way to get started in this industry with very little to no capital. I want to invest in the business and grind it out. I’m just a low class guy who barely makes enough to scrap by. How to I start so I can make a better life for my family?!
Where are you from brother? Do you have any equipment whatsoever? Start by telling every single person you know that you are going to be starting a mowing business. The biggest thing in the beginning is advertising and getting your name out to get customers. Make your own flyers or whatever you gotta do. Hit the houses beside and across the street from the house your doing. Post on local Facebook groups. Social media is a must. It’s not as easy as everyone makes it out to be, but you can do it! I have a channel as well and I have a few videos on this. I’m just a normal guy out here as well brother. Good luck!
It's all about finding that sweet spot and using flat rate pricing and you will win on some and you lose on others but it's a lot easier to close and takes 0 effort.
Toilet Paper Entrepreneur- Mike Michalowitz
Do you feel around 30% close ratio is the lowest one might want to go without wasting time doing estimates all day? What percentage are you seeing for a company maximizing profits without pushing growth?
I recently got our close ratio from around 30 to 40 percent and it was a big difference in profit. We also increased the ratio of hours worked in the field (more employees) to office staff (overhead). Those two things combined meant we went from about 10% profit before I was paid. (Not true profit) to about 15% after I was paid. That is HUGE. The magic number will be different for every business as they all are different sizes and different needs. If you are trying to grow fast you want a high close rate 60 to 70%. If you want to stay small shoot for around 40. Rmember price is not the only metric that can change it. It is s big one but speed of fufilment is also huge. If you get thr estimate done the same day and it's detailed and you can do the job next week. You will close more work. If you are booked out 6 weeks like us you will close less. We still get the estimates out fast though.
@@th3zealot Thank you. We do maintenance only and have always been right around a 50% close rate. We are doing 110-115k/month. At some point in the next 2 to 3 years we will want to slow down our growth and just focus on maximizing profits. I am thinking 35-40% win rate is about right. Slower growth but extremely profitable.
How do you advertise your lawn care business
Your thoughts? I'm a small one pony show. What I do is when I'm at 90% capacity I add a P fee. That means I do my normal estimate then add about 10% premium to it . It raises my income per hour even though it drops my close ratio from 70 or 80 to about 50%.
@@codyhardin7851 That doesn't matter much for a one man show, though. If you're the only one doing the work, you can afford your closing ratio to be very low.
That's fine because as a one man operation, you don't need a high closing rate. All you need is your income to be maximized. Anyone who is a one man operation should be charging a big premium for it, as the level of quality and personal attention you can offer clients is worth a high premium. $100/hr should be the minimum if you're in a metro city area, or $80/hr in a lower cost of living area.
Some potential clients will expect you to be priced cheaply because you're a solo operator, but it should actually be the opposite. Your hourly rate solo should be higher than any large company, because your expertise and attention is worth more than the average landscape company crew.
@@grandifloralandscaping that's my thoughts also. As for acquisition cost mine is extremely low as I dont have mass marketing. 80 to 90 percent of my marketing is referrals and signage on my equipment. My net profit margin for April was 87%. My YTD margin is 48.6% and increasing daily.
Minute 0:30 I own the gym💪 i like that
Mike, this only applies when doing estimate or do you also lose existing clients if you raise price?
I thought you were living in one of your units now Mike? Did you miss the office and move back?
I usually only get to stay there on weekend. The studio is just too great =)
@@MikeAndes That makes sense, you can probably get a lot done there too and no commute back and forth.