Next Level Pros - #155: How to get rich in HVAC // Victor Rancour's $65M Story // Next Level Pros Podcast

Episode Date: July 11, 2025

Welcome to a new episode of Next Level Pros! Today, we sit down with Victor Rancour, a powerhouse in the trades and HVAC industry who scaled from scratch to multi-million dollar success in just a few ...years. In this episode, Victor breaks down the exact moves he makes when acquiring new businesses, the systems he installs for profitability, and the sales processes that drive results. If you're an entrepreneur, business owner, or sales professional looking to dominate your market and build a real machine, this episode is for you.Highlights:"If you decide to do something and you put your all into it, you can have an opportunity."  "You have to recruit the sales guy. If you want to start winning, you got to get one from that big company."  "If you can't get customers, you're not going to attract me and Chris ain't working for you."  "Implement AI, know your numbers. Let's go."Timestamps:00:00 - Introduction01:06 - Breaking Into HVAC: The Craigslist Ad That Changed Everything04:03 - Learning the Business: From Sales to General Manager08:12 - Marketing in 2025: Hand-to-Hand Combat and Direct Mail12:11 - The Power of Follow-Up: Building a Rehash Strategy with RP115:19 - Pricing Models: 65% Gross Margin and Sliding Scale Commissions19:38 - Acquiring Businesses: The First Three Things Victor Changes22:12 - Sales Training: Four to Five Days a Week for Consistency28:53 - Leading with Financing: Making High-Ticket Sales Accessible44:29 - Upcoming Event: Victor’s Sales Training in Ohio & Final AdviceWant me to teach you how to grow your business? Text me! 509-374-7554Want access to more of my content? Click the link below for all of our latest updates and events!https://linktr.ee/nextlevelprosWant to be a guest on our show? Apply here!https://docs.google.com/forms/d/1YlkVBSluEKMTg4gehyUOHYvBratcxHV5rt3kiWTXNC4/viewform?edit_requested=trueWatch my latest PodcastApple - https://podcasts.apple.com/us/podcast/next-level-pros/id1687030281Spotify- https://open.spotify.com/show/1e0cL2vI1JAtQrojSOA7D2?si=95980cd4e55a437aYouTube- https://www.youtube.com/@NextLevelPros

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Starting point is 00:00:00 In today's episode, we're sitting down with Victor Rancourt, an absolute force in the trades and HVAC world, who scaled from scratch to multimillion dollars in just a few years. He breaks down the exact moves that he makes when acquiring new businesses and the systems he installs to drive top tier profitability. If you want to learn how to dominate your market and build a real machine, this one's for you. It's super excited to have Victor. Welcome to the show, man. Good to for you. Super excited to have Victor. Welcome to the show, man. Good to have you.
Starting point is 00:00:29 You know, I'm excited to be on Chris. I'm actually more excited to be here, man. It's kind of cool. Obviously, I've been talking to Trent back and forth and kind of watching you guys from afar. And dude, if you guys haven't been out, you've got to get a chance to come out and check out their building. It's phenomenal. Beautiful place. Very accommodating.
Starting point is 00:00:42 I'm excited to be here. I'm excited to be on the podcast, and hopefully excited to share some knowledge and help some people. Very cool. Well, for those that don't know who you are, so Victor's got a background in the HVAC space. He's now playing the acquisition game all across the US, doing an incredible job in that. But tell us, share us briefly your story.
Starting point is 00:01:01 I know you built a pretty big organization between 2018 and 2023. Yes. I mean you built a pretty big organization between 2018 and 2023. Yeah. So, I mean, like I talked about earlier, I really kind of started back in, living in Ohio 12 years ago doing oil changes. And I was talking to Trent and Chris and telling them, like, I used, 12 years ago, I was living in Cleveland, Ohio, and I was working at a place called Loop Stop. And I was a guy down the oil pit changing oil, right?
Starting point is 00:01:22 And I was making like $6.75 an hour. Never in a a freaking my entire world. I think I do where I'm at now So like, you know for the people that are out there that are struggling right now You have a whole chance to turn it around But uh, I moved back to California a couple years later And I answered a craigslist ad to become an HVAC technician for a company called service champions out of Southern, California It's ran by a great guy Leland Smith who I consider a good mentor mine And I had no idea what HVAC stood for I went to the interview and telling you There's a hundred people there right in this room. I had no I'm like, what does HVAC stand for?
Starting point is 00:01:54 I have no idea. Nobody knew I was one of the only guys that showed up in a suit I really needed a job made me I was I had a five month old baby We're living in a room in a house like just like there's a party house Like I had to get my kid out of there and I saw this opportunity. First thing they did is they kicked out. Everybody didn't have a suit on and I'm like, well, I'm glad I wore a suit today. Right. And I said, and they said, Hey, can you guys that I felt this paperwork out of you
Starting point is 00:02:15 asked for a pen, you got kicked out and happened to bring a pen that day. So I ended up getting, you know, we don't weed it down from a hundred people. And they put me through this whole rigorous process, but very quickly I found out how much they pay you in home services. And I was like, dude, like they're going to pay me this much money to do this. Like I call my girl. I literally, I always tell people this thing. It's true story. I said, you're never going to have to work in a day. She's like, dude, keep in mind, I'm driving a 92 Honda Accord.
Starting point is 00:02:38 I got the window doesn't work. I D it was on the way to the interview was raining. So it was like sprinkling through my window. Okay. And they called, the car wasn't even mine. I couldn't even afford to buy that. So this is on the way there and I'm telling her this. And she's like, dude, whatever do you like pound sand? Right. But anyway, so fell in love with it and she's never had to work another day in her life.
Starting point is 00:02:54 And you know, even if we're not together, I still take care of her. Cause that's, I believe that you should do as a man anyways. Like you gotta take care of your people. But long story short, moved, I became fell in love with being a technician. Then I fell in love with the sales side, and I always believed you gotta learn the trade
Starting point is 00:03:07 before you can really sell the trade. I believed that, but obviously there's different ways to go about things, but became a selling tech, became the number one, then I became the number one salesman in the country, and then at the end of 2017, this guy comes to me and he's like, hey, I wanna talk to you, and I was like, is this guy, sorry about the language,
Starting point is 00:03:23 finally, who is this guy, right? He said, I go to breakfast with this guy, and he's like, hey, I want to talk to you. And I was like, is this sorry about the language. Finally, who is this guy? Right. He said, I go to breakfast with this guy and he's like, Hey, I heard all these things about you. I heard you're like, you're one of the best guys, blah, blah, blah. He's like, I want you to come work for me. I was like, I mean, I don't even know you. So he takes me to his office and I tell the story only because it's kind of funny. Takes me to his office, shows me around and I go to leave and he's like, well, let me know when you're ready.
Starting point is 00:03:40 I was like, well, you never made me an offer. Right. So he's like, okay, well, how about this? He's like, go tell your family, pack your bags. I'm gonna fly you to Hawaii. So he puts, well, you never made me an offer. Right. So he's like, okay, well, how about this? He's like, go tell your family, pack your bags. I'm gonna fly you to Hawaii. So he puts me in first class flies me to Hawaii. We're in the North Shore, Kauai. He puts me in a presidential suite gives me his Range Rover. And this is a he's running another HVAC company competitor. And I remember my wife saying, so why doesn't old fat man
Starting point is 00:03:59 want to invite you to Hawaii? Seems a little creepy. But anyway, so he ends up inviting me out there and I spend a week with him and his family and he hires me and that's when I got to really understand that there's a whole other side of business, right? So I went from just being sales, like Leland was very focused on departmentalizing
Starting point is 00:04:17 every part of your business. If you're a salesman, you're a salesman, if you're a tech, you're a tech, if you're an installer, you're an installer, vice versa. He didn't want you to learn any other parts because he didn't want you to know everything because then he can know too much. And anyways, I went there and I was the service manager,
Starting point is 00:04:28 sales manager, general manager, and the sales guy. Like I was working from six a.m. till 11 o'clock, sometimes one in the morning. This was in Hawaii. No, he moved me back. He had his company in California. He lived in Hawaii. He wanted someone to run his company in California.
Starting point is 00:04:40 So he gave me a bunch of money. I go back there and find out really quickly that I'm pretty much his indentured servant at this point, but I was making a lot of money, I go back there and find out really quickly that I'm pretty much as indentured, so I went to this point, but I was making a lot of money. Yeah, you got a free first class ticket. Yeah, so that was cool, man. That was the first time I'd been to Hawaii. I never, you know, coming from where I came from,
Starting point is 00:04:54 like I didn't come from nothing. That was a big deal. And that was like, you got to go to Hawaii, like that was freaking awesome, but he gave me an opportunity to really learn the inside of the business, and I was there for about nine months, and I realized like, hey, I can do this, right?
Starting point is 00:05:05 Well, everybody thinks you can do it until you go have your entrepreneurial seizure and also you go out on your own and you got to figure out everything. What is it, how do I start an LLC? How do I come up with a name? How do I get my licensing? How do I do my financials and all that stuff?
Starting point is 00:05:17 So that was in August, 2018, but I leaned back on sales. So we took it from zero to five million our first year, then to 12, then every year we kept growing until 2023 we exited that. That's phenomenal. That's a cool story. I think one thing that I just love about your story
Starting point is 00:05:33 was, I mean, you really came from nothing. I mean, making six bucks an hour, a lot of guys are handed a lot of opportunity along the way. You clearly went and created it for yourself and just hustled your way and did it the old blue collar way. Yeah, and I'll tell you back, you know, back in the 675 hour day, like I was,
Starting point is 00:05:49 I thought I was never gonna be much of anything, right? Like I was pointing to my life where I wanted to take my own life and all these things, where I was like, dude, I thought I was just gonna be a loser forever. So, you know, that's why I talk to a lot of people and I try to tell them like, dude, like, no matter where you are, if you decide to do something
Starting point is 00:06:02 and you go put all your all into it, you can have an opportunity, right? Like, and that's what I love about the trades. You don't have to go to college. You if you decide to do something and you go put all your all into it, you can have an opportunity, right? Like, and that's what I love about the trades. You don't have to go to college. You don't have to do anything. You get one opportunity, put your foot in the door. All of a sudden you go and you bust your butt. Like maybe you're an installer.
Starting point is 00:06:13 Learn the trade, get your foot in the door. Like, and that's what's really hard about the generation now. It's like a lot of these guys, they don't wanna have to go through the grind work to get where you need to go. They wanna just be, all of a sudden they wanna come in and be a sales guy and make 500 grand a year, right? It's like the reality is there are steps to everything.
Starting point is 00:06:27 If you can't put the steps in, you don't deserve the outcome. How old are you now? 36, almost 37. Awesome. You know, the irony of the whole thing is like back in the day when I was in high school or whatnot, like those that were going into the trades were very looked down upon, right? And it has literally become the world that is rammed by the trades,
Starting point is 00:06:46 and the future of basically our economy is either AI robots or in the blue collar space. And it's one of the last things that will remain standing here in 10, 15, 20 years. I just did a workshop for this guy. He's got a big doctor position in Texas, and he bought an HVAC plumbing and electric shop. I was like, dude, why? He said, because my job is going to become obsolete, and I need the protection of the trades. I never heard it that way.
Starting point is 00:07:19 That's a reality, and that's why private equity is coming into the space and all these things. We can talk a little bit about that, but the easiest they know where it's going right? It doesn't matter what what what you're presenting a dentist is gonna be replaced all these things It's really that's gonna be replaced. Yeah, I saw a tooth removed. I don't know you wait till that's robots Thank you. Oh, yeah, it's all gonna be replaced I mean either by robots or somebody controlling a robot that just works from home, you know, and yeah, and so yeah I like the small talk of a dentist. You know?
Starting point is 00:07:47 You like the bedside manner? I like the bedside manner. When someone's in your mouth, you like the small talk? Just dentists. Just dentists. All right, all right. So Victor, I mean, clearly you mastered sales and marketing and that was like one of the big aspects.
Starting point is 00:08:03 And you know, so you got really, you did really well at digital marketing. What are you seeing today in 2025, as far as what's working in the marketing space? I mean, obviously, like we were just talking about, you know, private equities come in, and a private equity knows how to do one thing, and that's spend money, right?
Starting point is 00:08:19 And so when you guys look at, you know, we were just talking like in 2017, 2018, you know, Facebook ads, we were getting 15, you know, 10 fives, 10, $15 leads, you know, Facebook ads, we were getting 15 or 10, five, 10, $15 leads. Now those leads have gone more expensive. They're not as targeted, not as good. Obviously you go to Google and Google is just, you know,
Starting point is 00:08:33 they're just eating cash, right? You put money into PPC, you'll never compete with the big guy, right? You're not gonna compete with the 800 pound gruel in your market. Same thing, all these different verticals you go into, they just keep throwing money at it, right? And I talked to like a lot of my clients and I said,
Starting point is 00:08:45 look, we got to get back to hand to hand combat because private equity ain't going to go out and be in your community. Private equity is not going to do these things that are like more of a long-term investment, right? And how do we get back out in front of that? So like some of my companies, like we've really leaned heavily on direct mail.
Starting point is 00:08:59 We do some like direct response radio, like some really old, like we all ran out of radio station for an hour every Saturday and Sunday. We do really, really well with old, like we all ran out of radio station for an hour every Saturday and Sunday. We do really, really well with that, where we're talking to the demographic that we wanna work with. You know, the Paramount Plus, all these streaming services,
Starting point is 00:09:13 like we were just talking about, you could actually hyper target people. Like I could find out, you know, Jewish people, and you know, I'm just. Yeah, go for it. So give us some more, like give us some more in depth, like what type of cost of acquisition are we looking at with direct mail right now in 2025? So obviously there's two different types, right?
Starting point is 00:09:30 There's postcards, which I've never seen much success, right? You find a postcard, you take it, toss it in the trash. So with my clients, I teach them to do these. We do letter style, and it's like full-blown letter in there. It's an envelope. It's got their name on it, stamps on it. We're getting- Is it look handwritten?
Starting point is 00:09:43 Looks handwritten. And we're getting the leads for about 180 dollars a lead And we lead in with so like most companies are waiting for an air conditioner to break or whatever it is We lean in on service, right? Like hey, let's get it taken care of for service beforehand So we're going in I always say we're going the front door leave out the back door, right? Like they're inviting us in for service. I think they need to tune up We've we obviously we have a process we find all the we diagnose all the things that are really going on because most people I always say like people look at you know We obviously we have a process we find all the we diagnose all the things that are really going on because most people I
Starting point is 00:10:10 Always say like people look at you know technician like almost like cancer in their house is our body, right? And when you get cancer in your body, what do you want? You want them out, right? So like they want you out as quickly as possible So we have to find a way where they're not already in a bad position when you get there, right? When you're coming in for a broken system, they've already googled everything they've already with you go in there for a tune-up Most of the time they think, I always say their engine's blown but they're doing it for an oil change. Right. And they know there's a problem.
Starting point is 00:10:30 They don't know what it is. They want to spend 49 bucks or 100 bucks to get in the door and just to diagnose and figure out what's going on. They hope and pray that it's nothing big. Yeah. Right. So we get to go in there and we get to educate and go through a process. And by the time we're done, if you create a good sales process, we're leaving with $25,000,
Starting point is 00:10:42 $30,000 tickets. So what percentage of your system switch outs are coming from an upsell versus like a free estimate or a service call versus like my system's busted, I need this completely replaced? What percentage? It is over 80, 20. Wow.
Starting point is 00:11:01 Over 80, 20 and- So 80% are upsell. Yeah, and- That's fantastic. Yeah, and so we're getting to them before our competitors ever get there. Our customers, our competitors are waiting for the unit to break down. Well, we already sold the units before they even got there. And that's what we found in the markets that we're going to is these other guys are getting starved out.
Starting point is 00:11:17 In every market that we go into, we're growing exponentially. These other guys are starving because they're just waiting for the broken ones. They're not broken anymore. So what percentage of the market, what are you spending on marketing? So I I am a firm believer that it's between five to seven percent. If you're over seven percent your operations are messed up your sales process is messed up. OK.
Starting point is 00:11:36 So like if someone's like you gotta spend 15 percent. No you're spending 15 percent because you're not capturing a lead properly. You're not answering the phone properly. You're not getting there and converting and running a proper process. So my company's ever over 7%. I know that my KPI is off. I got to go figure out what's going on. So a lot of people say you have to spend more.
Starting point is 00:11:50 I've been there. I spent a bunch of money, but I wasn't calling every lead back following up doing rehash. And obviously we have software now that we have top of funnel software that we use with RP one, follow up rehash, all that stuff. That's an interesting piece. So what is your rehash strategy? So it tech goes in, runs the full call, doesn't get the close, presents the options.
Starting point is 00:12:09 What happens after that? So we actually built, me and my partner built the software about a year and a half ago. We built it for my business. This is RP1. This is RP1 and then we started selling it to contractors. But so we're integrated with all the different, you know, CRMs in the home service space.
Starting point is 00:12:22 And soon as they leave, most people make a buying decision within 72 hours, statistically. Okay? You got a 72-hour window to get it done. So when they leave, we're hitting them with a follow-up right away with a text message, hey, thank you so much for having our technician in the house, asking how everything's going on. More like a customer service side, like just follow-up, happy call type of deal.
Starting point is 00:12:40 And then from there, it starts continuously over the next 72 hours. You're going to turn more into sale, sale, sale. And then by the end, we're offering them a discount. By this third day, you're going to get discount offers. Oh, sorry. Go ahead. I was just going to say, what are your thoughts on training technicians to only get a decision, whether it's a yes or a no, and not walking out with a maybe or a follow-up? I try very hard. So my background sales, most of the time I've had the so I always joke I'm like at a 90% sign rate You know 20% might have cancelled afterwards because I don't like to leave until they sign right?
Starting point is 00:13:11 But like I think that's a different approach nowadays I think the the clientele have learned a lot about that and you can try it Right and you better have you better reinstall on it right away if you're gonna hard sell somebody, right? We found that you know, we can we can lean in we we do get a lot more follow up than I ever used to, even though we're expensive, as long as you guys can create a great sales process where they trust you like you and all that stuff. But obviously, ideally we want closers.
Starting point is 00:13:34 We want you to get a sell while you're there. You should be able to do that, but you're not gonna get all those. For sure. What were you gonna ask? So the CSR, the happy call, so after they don't get the deal, the happy call is just about customer service
Starting point is 00:13:47 or is the CSR also asking why didn't they move forward with it? So they're leading with customer service. Hey, this is Victor with Fiscal or Heating and Air. It looks like my senior technician was out there. I'm just calling to see how everything went. Right, let's talk to him as a friend first, get him introduced, open up and say,
Starting point is 00:14:02 hey, it looks like, you know, I looked at some of the pictures. It looks like this thing things in pretty rough shape. It looks like you left you some options. Is there a reason why you didn't move forward with it? Right. Yeah. And then from there we were leading in. So, hey, just so you know, I know it's not like a lot of money. We do have some no money down options because you never know if they're
Starting point is 00:14:15 offering financing or not. So we always want to offer financing on it. And then obviously from there, they're like, well, they still show any interests. Well, hey, look, I'm working directly with the owner inside the office. You know, is it, is it the price or whatever it is? I can go right to them right now. So like our revenue recovery person is trying right away. And sorry, is the revenue recovery person somebody separate from the CSR?
Starting point is 00:14:35 Or is it- Yes, that's all they focus on. Okay, so this is a revenue recovery person in your actual overhead of your company. That's all they do. Yeah, very interesting. Yeah. Okay.
Starting point is 00:14:44 So they're obviously commission based for the most part. They get a small hourly just to follow up, get reviews, stuff like that. And then most of it's commission based. Can you share, do they get the commission from the technician? It comes out of that. Yeah, whatever the commission,
Starting point is 00:14:55 the technician left, he was supposed to get 10% or whatever if he doesn't sell it. And they take, say they take four or five, whatever it is, they come down to what is. So he'll still get paid. Cause you don't want your internal and your external fighting each other. Sure. You know, but it's like, hey, you gotta close. So you'll still get paid, because you don't want your internal and your external fighting each other. Sure.
Starting point is 00:15:05 You know, followed by this like, hey, you gotta close. If you don't close there, you have 72 hours. That's a cool model. So I think we're quite a bit aligned as far as like pricing our product. Tell us about your theories and models on pricing. So I prefer, like for me, I'm gonna price everything at 65% gross margin,
Starting point is 00:15:24 because guess what? If you start high, there's an old saying, right? Is quote them in the eye, look them in the heart, quote them high, look them in the eye, drop your pants and watch them buy. Right? So you start high. If you don't start, if you start at 50 and you go down,
Starting point is 00:15:36 you're gonna end up at 40, right? That's not sustainable. If I started at 65 and I go down 10%, I'm still at 55. I'm still got squiggle room, right? But most of the time we're just gonna hold that 65% margin. Not everybody's asking for discounts or even a little bit of discount.
Starting point is 00:15:49 But if you start low, you have nowhere to really go, right? And is the, I know we're getting into the details, but I think it's important for the viewership. If they go from a 65% gross profit margin down to 55%, is it the company that takes the hit They go from a 65% gross profit margin down to 55%. Is it the company that takes the hit or does the commission of the technician also decrease? So this is how I do it. It's a sliding scale, right?
Starting point is 00:16:13 But I have what's called built-in drops. So say if they sell that job and they didn't give no discounts, they'll actually get, so every 5% they save from me, I'll give them 1%. So if they don't discount at all, perfect. You get those first two discounts, it's gonna hit you 1% on the first one, second, and then give them one percent So they don't discount at all. Perfect you get for those first two discounts It's gonna hit you one percent the first one second Then you're only gonna get ten if you stay at there anything below that then it's gonna stop start dropping incrementally
Starting point is 00:16:31 So you go below ten percent discount now, we're gonna start dropping multiple percentages Yeah, so the first ones are built in and some of my high-end packages I'll have four built-in so you can get if you go you sell it at the discounted the four the twenty percent off you still Get ten, but if you hold that you'll get 14 Yeah So what it does is incentivize is that when you show them the check and say look dude you're losing an extra 4% by Discounting every day 10 to 14 percent commissions a dramatic difference, right? Oh, but if I can hold that 20% I'll give them for okay, right?
Starting point is 00:16:58 And that's how I look at it So we built it in as it as we structure it to where that's is a sliding scale But they get down to where it's sell a $20,000 job, but the margins aren't right, they're making 250 bucks, just for going out there. And then we had, we talked about three different people that go out into the market. You have your sales guys, then you have your installers,
Starting point is 00:17:15 and then you have that middle area of the sales techs. You are in favor of having a very strong sales force like Chris going out there, capitalizing on all the deals, and then just having an install crew come and complete the work. You don't want the same guys that are selling it as installing it, because at the end of the day, it's really hard.
Starting point is 00:17:30 I can go get installers, right? At the end of the day, a lot of people don't like communicating, they like the technical side of it. That's what they wanna do. Now, getting a sharp, amazing sales guy is very difficult, and as much as anybody wants a heat on the sales guy, nothing happens without a sale. That's right.
Starting point is 00:17:44 Right, so you can't go create me overnight. Like you can't, if you want me, I'm becoming your business, you're not gonna get five of me. Right. Right, so if I'm tied up doing the sale and then doing the install, then I can't go sell more jobs. So I want my sales guy focused on killing the next target, killing the next target.
Starting point is 00:17:57 And then that's how we aim on it. And then obviously install crews are right there, right behind it. You know, and my top guys that are the hard, the guys that are hard sellers, like we don sellers, we're not installing three days from now. I have one guy in my sales team in Arizona, I have a demo crew that follows behind him. He goes to the job, they're down the corner
Starting point is 00:18:14 waiting for him to sell, and they're gonna go demo that job and we're gonna start it right away. Because I know that when he sells, he's pushing on these people to sell, right? So you have to get that job in as quickly as possible. I think it was you that was telling me a funny story with the alarm systems. Oh yeah, man, I'm a big same day install guy, right?
Starting point is 00:18:31 So I would not leave a home. So I come from a background of door to door sales and I would not leave a home until there was a hole being punched in the wall. That was literally my criteria. As soon as the technician punches a hole through the wall with his drill, I'm out. Right, but until then, dude, I'm building rapport.
Starting point is 00:18:51 We're talking about baseball, football, like we're doing whatever. I learned, yeah, I'm the same way. And that's where I learned from Leland, right? Like we would wait around until the installers got there, or whether the next guy was, or the demo crew, or whatever. But it's like, yeah, you want to make sure you get that job spiked, no matter what. And sometimes, like I was a technician, so I'd sell it in demo in my damn self.
Starting point is 00:19:10 I'd be out there and be like, Hey, the crew is going to come pick it up right now. I'm going to start cutting the unit out. So I would, sometimes they would leave and I would, I would make videos in our sales chat and I'm like, Hey, I got another one. I got a fan spinning in the back of my truck. Have the customer help me lift it up into it. Yeah. So when you, when you go and pick up a two to $5 million shop right now, what are typically the top
Starting point is 00:19:28 three things that guys are missing? Is it the fact that sales tax or everything? What are some of the major changes that you make right away into a business like that? First thing we got to do is sell. I don't care if your sales team doesn't know how to sell yet, we're going to teach them. We got to go in and they can say they don't like to sell perfect I need some warranty guys. I guys can go I call them the cleanup crew I'll take one or two of you guys at rest
Starting point is 00:19:51 You got two guys that I can take that spot to most at any company I'm have everything else has to be sales if you don't want to sell you're gonna be out So the first thing I do is I recruit right if I'm gonna go in you got to find a high-level salesperson Whether it's a sales manager that could bring a team with them or it's a high-level technician I always say if you want to start winning you got to get one high level salesperson, whether it's a sales manager that can bring a team with him, or it's a high level technician. I always say, if you want to start winning, you gotta get one. Get one from that big company,
Starting point is 00:20:08 that company that you hate, you talk crap about, they all they do is sell. Get one of those guys, you treat him good, he'll bring the rest of them. So like this is what we've done in Arizona, the same thing we're doing in Alabama right now. We actually built our office right next to the biggest company in the market.
Starting point is 00:20:22 And you see us growing now, this last week, we're like, we wanna launch plumbing. We have like six other plumbers coming over overnight because we say, well, let's go, let's take it, right? So you have to recruit the sales guy. And a lot of times the other thing is you gotta find the people that are good at things you suck at, right? If you're a business owner, you suck at sales,
Starting point is 00:20:37 bring someone in that can sell. You're gonna get in the way, right? And if you're good at finance or whatever, whatever that position you suck at, you gotta fill it. Right, so figure that stuff out. And obviously, how do you get leads? I mean, you have to, if you can't get customers, you're not going to retract. Me and Chris ain't working for you if you can't get me a customer to sell to. Right? And obviously we can go out and try to find our customers or whatever it is, but you want the big dogs, you got to have them. Right? So first thing
Starting point is 00:20:58 we do is we got to hire the sales training team. I'm a big process person. Like I have a step by step process. We teach it, we teach it in markets. And pretty much every state in the entire country has learned and even in Australia, we have some clients over there. They follow our process and they crush it. Now, if you don't hold these guys accountable, right? Then your business is gonna fall apart.
Starting point is 00:21:16 Like I run my business, like my sales teams ran like a McDonald's, right? Same thing over and over and over again. And I can tell through my KPIs when my guys are skipping steps and what steps are skipping based on what what they're not selling What they are selling I say hey look let's talk about this. Let's talk about your process My favorite part and you probably had this Chris right is like someone comes in and they're like I tried everything you're like Did you try this? Well, I didn't do that
Starting point is 00:21:37 I'm like dude, come on brother. Like, you know, which I know what you're missing Am I even my manager able to identify what we are the KP, what they're missing in the process, but we train often. So some of these small companies, they may be trained once a month, twice a month. We're in four to five days a week for an hour a day. And I believe that if you're gonna bring your team and your sales team, do not bring them in to beat them up on numbers,
Starting point is 00:21:58 bring them in to teach them something that day. My guys can come, we look over the numbers, the numbers ain't gonna be changed overnight, but we can do is every, I found that like whatever subject you focus on that day They magically sell if you guys you bring a financing guy in today. They can all sudden sell everything on financing So are you doing sales training four to five days a week? Or is it just general training or you focus straight on sales sales? So you you personally are still involved in these trainings?
Starting point is 00:22:20 No, no, I have a team that does it but like obviously if I go out to a business I'm gonna be running the meetings right like I get the team pumped up like that. That's what I do. I get people excited, right? But we do, I have guys that do that for me that run the sales team, whether it's virtual or in person, but we're meeting four to five days a week. I don't care if it's a hundred degrees. I'm sorry about the language. I don't care if it's a hundred degrees outside. We still train. Yeah. Because that's when you lose the most money. Cause that's when you start skipping processes and most opportunities. A drunken monkey can sell in the summertime.
Starting point is 00:22:45 Right. But if a smart guy like me, I'm going to get my average ticket doubled because now they're, they got sweat beads coming down their face and I want to maximize the ticket. I'm not there to sell basic. I'm there to sell the best. Right. So that's, I think that's what kind of separates us from everybody else.
Starting point is 00:22:58 So they're like in the summertime, they're just telling basic. I always tell people like my technicians, like, would you put a basic air condition in your house? They all say, no. I said, why are you selling one then? I would never sell something I wouldn't put in my house. would you put a basic air condition in your house? They all say no I said why are you selling one then I would never sell something wouldn't put in my house That's not the right thing to do So like we don't sell basic and we do everything is top-down pricing most companies leave from this from the bottom and they go up we start from the top just like if
Starting point is 00:23:17 You went to the Ford dealership today, right? You want to buy a base model maybe a Lariat or whatever the four right? I don't know what the base model for truck is right right? They're gonna show you the Raptor first. I'll be showing you the Raptor. I'm gonna, hey, have you had a chance to try a Raptor? Put them in the Raptor. Once they leave the Raptor, they're not gonna get, they're gonna leave with a limited,
Starting point is 00:23:31 right, or they're gonna leave with either a Raptor or a limited, they're not gonna go down to a freaking rolling their windows down with their hand. And that's how we teach it. So it's top-down sales process. And then that's the first thing we go in. We give these guys sales presentation books and all the tools they need in the house.
Starting point is 00:23:43 And that's what separates us right away. You know, it's interesting. There's a terminology called anchoring. It's in negotiation, right? And negotiation and sales are very similar as far as aligned similar principles or whatnot. But like nothing was like more powerful to me than when I, so I took a negotiation course at Harvard and we were taught this principle. As sales dogs and business owners, we've done a lot of things, but understanding exactly why it works, the psychology behind it, everything like that. So we did this mock negotiation and it was essentially where there was a buyer and seller of land and we were both given different parts of the story and then we had to come together and negotiate.
Starting point is 00:24:28 That's cool. And so it was like, it was a real negotiation. And basically, you know, the range that this land sold, so it was a land deal that you're doing and the range that this land deal sold for, it was anywhere from 32 million to 65 million and everything in between. The crazy thing was, is everybody after they finished the negotiation went and when they turned, they had to turn in their numbers and give a report, right? Of like what, what they ended at, everybody felt like they got a good deal.
Starting point is 00:24:58 There wasn't one person that didn't feel like they got a good deal. And it was for the same exact negotiation. And like this, this, the power of anchoring that you're talking about, like when you anchor with that Ford Raptor, right? Like when you end up with a little area, you're like, you're feeling good or whatever else. I got this good deal on this whatever else. And like, that's ultimately, the power of anchoring is so, so, so powerful. And if you don't anchor, like the guys that negotiated the sellers that were in the 32 to 38 million, it's because the sellers did not anchor. It's because they came in, they allowed the buyer to anchor and determine essentially
Starting point is 00:25:35 where the anchor was. And then wherever you anchor, you end up close to what it is. And so in a negotiation and a sale process or whatnot, wherever you put the anchor, you're gonna end up real close to there. And so if you're coming in with a $25,000 system, chances are you're gonna be in the ballpark of $25,000 at the end instead of coming in with a $10,000 product. Well, I had this sales rep out of Utah
Starting point is 00:26:01 and I was working with him. He asked me to work with him one-on-one and I rarely do that, right? He was just a client of mine. So I said, he's like, I can't, they're having this competition and I cannot sell this 26 year, the highest end unit. I said, oh cool, can you walk me through
Starting point is 00:26:13 your sales process, right? We go through the sales process and he does, he's doing top down pricing, but the top two, he says, these two are kind of like overkill for your house. Like if you can forward it, they're great. But this is the one that most of my customers go with. And I said, well, what's one thing are they buying? He's like, well, the middle one.
Starting point is 00:26:27 I said, how about you change this? How about you say, hey, look, start with the best one and talk about how amazing it is, how it's the one you have in your house and how you wouldn't live in the house without one of these units and just talk about all the bells and whistles. And then he started talking about the things
Starting point is 00:26:37 he had to lose by going to the next one. And then let's see what happens, right? So we went through the whole process again and he did a really good job. He calls me back, he says, I sold six of them this week. And he got this big old bonus and he's like, dude, I'm making more money than I've ever made before. I said, look, you just had to change
Starting point is 00:26:50 the way you're talking about it. Why would I buy something when you say it's overkill and I don't need it? And so that just really changes everything. So obviously the psychology behind it is massive. Yeah, and the recency of sales training, what you said is really important. It's like a lot of owners or managers will say,
Starting point is 00:27:06 well, we trained on that last week. Six months ago. Six months ago. It's like, okay, so Dr. Amber, who's a frequent guest for us, she increased her average ticket selling orthotics, and she does it because she's talking about orthotics all the time, and there was a positive correlation between when they do the sales training on orthotics
Starting point is 00:27:29 and when the doctors are offering orthotics. So if you train in the morning, they do it in the afternoon. That's the same thing. Every meeting we actually have it planned out a month in advance. We know what we're gonna train on that day unless there is a major issue that's happening where we're not selling something we need to sell,
Starting point is 00:27:42 then we'll change it up and pivot, right? But like the same thing, yeah, and it's financing in one of them, right? where we're not selling something we need to sell, then we'll change it up and pivot, right? But I like the same thing, and it's financing in one of them, right? If you're not leading with financing, and especially in 2025, I mean the price of everything is so expensive. The average consumer has less than $5,000 in their savings account,
Starting point is 00:27:55 and you're gonna expect them to spend 25, 30,000 without financing, it's impossible, right? So most, almost, probably over 90% of our jobs, I don't know the exact statistic, but at least over 90% are financed. And you can't just go in and, you have to lead with financing, right? And one thing that we got really good with
Starting point is 00:28:09 is step financing. So our highest end product had the longest term and lowest payment, right? And then as you get buyer, you're gonna get the lower term, the five year term at the higher interest rates. So the payments are gonna be kinda close to the same. So if it's only like a $10 difference
Starting point is 00:28:23 between the top and the bottom, which one are you gonna go with? That's what you're talking about, the Delta. So it's like, for an extra $10, you're getting the best system. This one's 15 years, this one's five years, but at the end of the day, when they look at it, they look at payment, right?
Starting point is 00:28:33 So when you go in, you're not buying a Ford Raptor for $150,000, you're buying it for $1,300 a month, or whatever that payment is, right? You're not gonna talk that way. But the problem is I found a lot of reps that'll go in, they'll give a price, and after they give the price, the customer's him and and Han, they're like, whoa, we have finance. I said, you got to lead with it. Now you're telling the person they're broke because they
Starting point is 00:28:49 can't afford it. You want to finance it now, Brokey? You know, in 20, like in 2025, it blows my mind when I talk to a business owner and they're like, oh yeah, 20, 25% of our deals are financed. I'm like, dude, what are you doing? Right? Like you're not in the high nineties of percentage of finance deals. You are missing the mark. Like, I mean, this is the easy- I'd like to buy that business, if anybody interested. I mean, dude, but so many of these companies, it's the easiest way to move the, to move the needle in sales. Offers zero down financing, payment plans. I mean, the American consumer, like we are the largest consumers in the world, right?
Starting point is 00:29:28 Our savings rate is negative 2%. You know, like we have to provide that type of finance. I mean, you can actually finance Uber Eats now or Dolman. You can finance a freaking burrito, right? So people are used to it. The way you just talk about financing is the way that we talk about financing too, when it's not front loaded.
Starting point is 00:29:46 It becomes, it's like you have the objection, this is too much money, and then the bad sales guy will go like, is it because you're poor? Because you can't afford it, we have something we could do versus if it's front loaded, which is, hey Victor, 99% of everybody finances, even if you have the cash, this is gonna be the best option for you.
Starting point is 00:30:08 Then when the objection comes, they've already had 60 to 90 minutes to process the financing. Yeah, so a lot of times I'll ask, obviously I always tell them you can use our money, not you, you can actually use our money instead of yours. And the one thing that I'm really good at, and we do with my STAIL staff,
Starting point is 00:30:23 is we don't ever talk about by company financing. Hey, right now it's an, I can't even believe it, but the manufacturers offering these crazy rebates and incentives or even offering some no money down options right now. Normally it's cash check or credit card. Obviously it depends on if you qualify for it, but almost every customer I'm talking to is using this
Starting point is 00:30:38 because they don't ever offer it. You can get something where you don't even have to make a payment on it for 12 months. And after that, it goes into a super low payment, like under $200 a month. I've seen people get this for. Would you be interested in that type of deal? And I get them, and I always have an end date to it.
Starting point is 00:30:50 It ends on this date. Everybody's sales is urgency, right? If you don't build urgency, you have an infinite amount of time you're gonna take forever to choose. So that is what's very interesting about what you started with, which is the marketing channels.
Starting point is 00:31:02 So if you're marketing to the digital side, those people are making decisions. Like if your HVAC unit goes out 24 to 48 hours, 72 hours, they're making a decision. I have no heat or cooling in my house, I need to make a decision. What you're doing is very interesting. You're saying, hey, I'm gonna go OTT, streaming,
Starting point is 00:31:22 direct mail, and before there's an issue, you're able to solve the issue, offer the financing, so that they don't end up in this position. We put them on the market before our competitors ever talked. They're almost, every customer that buys from us never met with anybody else. Soon as they meet with everybody else,
Starting point is 00:31:37 they realize we're the most expensive, and obviously we can win those battles sometimes, but the statistics go way down. So I wanna put them on the market and take them off the market. That's why having a dial-in process is important. But also just training how to build urgency. So like when my guys are in the house, I don't just tell them,
Starting point is 00:31:50 hey, we have a promo that's ending. My guys, every day or every day of the month, they have a promo in their hand that already expired. Either it expired on the 15th or it expired on the 30th. What I mean by that is like, if it's the 17th of the month, they're using the one that expired on the 15th, they're going to call their boss and see if they can get that promo. Because you have to get it today.
Starting point is 00:32:06 If we don't get it today, I can't honor it. I'm actually pulling strings to get this for you. So I like to give my guys sales tools to have in the house that they can use to obviously, just like any other any store you ever go to on the planet has a sale going on. Hey, this sale ended, let me see if I can get it. But it has to be something we make a decision on today. If it sounds to me you want to do, there's nothing I can do. There's just no way I can get it.
Starting point is 00:32:23 That's you call me tomorrow. So I want to give after you call me tomorrow. So I wanna give my guys all the tools, and I think that's one of the big failures in companies is they don't give their guys in-home sales tools. Now, keep in mind, some sales guys are lazy. If I didn't have them and I didn't work for a company, I'd make my own, okay?
Starting point is 00:32:36 Because I like money. I've never been a hourly guy. I've been commission only. Only one time. 675. Change in oil. But I haven't been hourly since I got in the field. I was a commission only guy.
Starting point is 00:32:47 I eat what I kill. So I have no choice. I'm not going to go home and tell my wife that I just worked 16 hours and I came home with no money. And I also believe that I don't want to go to work to make less money than humanly possible. So I want to sell the best of the best. And that's how I strive to be. If I sell a basic system, I'm not even excited.
Starting point is 00:33:04 So based on your sales process, obviously you guys wanna be the only one in the home that are pitching the highest price and everything else. So what is your messaging around in your targeting with your marketing and whatnot to get in the home that's going to allow you to do that service call and then complete the upsell? Even like on our marketing, there's urgency builders, right?
Starting point is 00:33:26 There's only a hundred of these spots available. As we have 40, it's a $49 tune-up. We're offering this to introduce you to our company, but we only have a hundred spots where we can take on new customers type videos. So it's all about tune-up service, 49 bucks, something cheap to get in the door. Yeah, some of our guys are running,
Starting point is 00:33:40 some of our specials like on social media, I'll run a $20 tune-up special. I don't care, because you don't make money at 19, you don't make money at 49, you don't make money at 200. So are all your sales guys trained on being able to do a tune-up? Yeah. Got it. We do have estimate. People call in for estimates. We have no charge estimate guys. I have guys that, technicians that are not sales savvy, but they're good technicians that turn leads. So we'll have,
Starting point is 00:34:01 that's the easiest way. So if I can get a good selling tech, which is as rare, right, but the selling tech, I'll let them do everything from beginning to end. Most of our guys are turnover tech. So I you know, I have 10 guys, I call my Trojan horses, they go in there, see what's going on, they fill us out, we have a call by call manager that's monitoring all day. So like, if my tech goes there, it's a first time out tune up. He's got a 20 year old unit, he's got both homeowners there, he's got some things
Starting point is 00:34:21 going on. He has to make a call within 15 minutes and say, Hey, I got this going on. So we're probably gonna send a manager out there for a buddy check or a training visit, right? And he's gonna show up there. And I always tell my technician, it's like, let the customer know it's time for your quarterly review, that someone might show up. So in that situation, so let's just say
Starting point is 00:34:36 it's a 20 year old issue, they called you out because it's not starting, you know it's a capacitor issue, but it's an R22 system, you're doing an authority close. The tech is calling a sales guy or a manager to bring them over and talk to them. It depends. I have some guys that are good enough to be selling techs that can handle it from getting down, right?
Starting point is 00:34:52 But that's harder to train. Once they get to that point, that's great. Those are the best, because I don't have to pay two people. I don't have to waste gas, trucks, all that stuff. But if I got, I can train guys from scratch within 10-week course. And I have a whole step-by-step course, what we train on every week, every day,
Starting point is 00:35:04 to get that guy from knowing nothing, to be able to run a tune up and actually know how to flip it. Right? So that's how we build our sales team. And once they get good enough at flipping, then we allow them to start selling their own stuff. We don't just go say, hey, you can start selling. If you can't consistently turn a lead that turns into a replacement, then-
Starting point is 00:35:18 So does the tech get, because there's some, you're essentially creating no customer acquisition cost if you can upsell them there, what's the, does the tech get a? They get a SPF. They get a SPF, okay. Yeah, so you get three to 4% depending on what the sales guy sells on. And the sales guy loses 2% of his.
Starting point is 00:35:35 So those tickets we found that the service to replacement is a way higher average ticket than a straight estimate. So what is your total sales commission stack look like? Are you 15%, 20%? What are you the revenue? So really my KPI ideally is 20% direct labor throughout my whole from install to sales, right? So if I could stay below 20% throughout the business
Starting point is 00:35:57 on direct labor. That includes the direct labor of? Installs labor and commission, all of it included. So my goal, that's our KPI and our business below 20. Sometimes some minds has 21, 22, depending on if we got a discount, things like that or whatever, but we stay pretty close to that.
Starting point is 00:36:10 So if my installer is getting five, I got 15% of wiggle room, right? So it just really depends on the job for the most part, but 15 is like the max and that's it for splitting. So you're not, when you talk about having a 65% gross margin, you're not, you're taking 20% off that. Or you're saying that's including your cogs. We build all that stuff in there.
Starting point is 00:36:29 So when I hear 35%. You take commissions out of direct labor. Yeah, everything goes in there. So it's actually cool. If you go to my website called profitrocket.com, I have a pricing calculator, you punch in the commission, labor, everything into it, it'll actually tell you what to charge.
Starting point is 00:36:40 So cool. So. Yeah, it's really cool. Love it, love it. Yeah, we're definitely a lot aligned as far as like the methodologies from pricing and gross profit margin and sales practices and stuff. So yeah, it's really cool. The other thing we build, I knew it Chris, is we build,
Starting point is 00:36:55 so everybody looks at financing as a loss, right? We build it as, we don't have, financing's not a loss for us. It's actually a profit center. So every job, and like I said, on my pricing calculator, every single job that we do, we price in 7% for financing. None of our financing costs seven. Everything's below six. So we always make a point on it.
Starting point is 00:37:11 Even if they pay cash, I'm still charging seven. Right? I make seven, so. Dude, we are 100% aligned. That's exactly how I run my business. Yeah, so it's actually a breath of fresh air. Not a lot of guys that align with me on most of my principles there, so that's great. It's cool, man.
Starting point is 00:37:25 Yeah, you know, it's interesting having that conversation around financing. One other thing that I would add in just from a training aspect is when customers are persistent about paying cash, one thing that we train our people on is just what a cash buyer, a Dave Ramsey guy or whatever else, really what they most want to be recognized for, their ego is, I am a cash buyer, a Dave Ramsey guy or whatever else, really what they most wanna be recognized for, their ego is I am a cash buyer. It's not necessarily that they wanna pay cash, but they want to be recognized as you can pay cash. And so one thing that we do from a training aspect
Starting point is 00:37:58 is when somebody is like persistent about, hey, no, I only pay cash, we say, hey, look, that's great. This is what all of our cash buyers do. And then we show them how cash buyers actually pay for or do the financing. And then if they ever want to just pay it off, they can pay it off at any time, but it's better to use that money and invest it. And so we, and it's so funny because we convert so many cash buyers over to finance people because we recognize them for what their ego wants. Well, so everybody, and then you say that I prefer a finance buyer over a cash buyer, right?
Starting point is 00:38:28 Especially in today's market, it's scary to trust anybody with that's going to pay you cash after the job. Yes. And so like, and the other thing is an emotional disconnect when someone emotionally separates from $25,000 cash is completely different than $200 a month. 100%. So the cancellation rate is higher on a cash buyer that says they're cash buyers, right? And I always talk to them just the same way. I say, look, the cool thing is you get to use our money, instead of yours. We have a 12-month no interest, no payment,
Starting point is 00:38:51 rolls into a small payment, no prepayment penalty. We don't know what's going to happen with the economy, right? So God forbid something happens tomorrow, you lose your job. Now you can't afford to pay off that thing. Or now you spent all your cash. You don't have your cash in hand. Now what are you going to do? Yeah.
Starting point is 00:39:03 Especially the deal that you're running, which is no payments, no interest for the first year, that's what Good Leap runs. And 6% you pay on day 366. No, they have a deal that service finance has a hybrid. You get 12 months, no interest, no payment, then it rolls into a 10 year 9.99 with no prepayment value. It's literally free money.
Starting point is 00:39:20 Right, free money. And you know, the thing about financing is like, I don't care how much cash you have. Like you can have a billion dollars. It still requires a mental hurdle to come out 25 grand if you had a billion dollars versus the couple hundred. Like it's, the name of the game is ease, right? Like the more easy you can make it for the consumer,
Starting point is 00:39:45 the better. You don't want to over complicate anything. You don't want them questioning anything. You don't want them talking to anybody else. Make a decision right now and give them a panel. Yeah. Yeah. Yeah, I think that's the difference
Starting point is 00:39:57 between the small guys and the big guys. Like I, it's very rare to find people that actually want, everybody always wants cash. And I'm like, dude, I just don't, I just don't see it. I'm trying to finance everything. And techs that really understand the financing game and are confident about financing, they win because when there's any ambiguity
Starting point is 00:40:15 about whether this person knows or doesn't know, it goes to the buyer. Well, that's what I talk about. You have to know financing like the back of your hand. We trade on financing a lot. I wanted to know the difference between a, you know, a secure loan, an unsecured loan. What, you know, what's a, what's a HELOC mean?
Starting point is 00:40:29 Cause everybody's like, I'm going to go get it. I'm going to go borrow money. Well, let me explain how a HELOC works, right? They can't explain that. And then the customer is like, that's her out. A lot of times that's their, that's her, hey, I got to go to the bank and get some money. Well, let me explain how that works for you.
Starting point is 00:40:40 While you can use our financing for 12 months during that time, go get whatever loan you want from your bank, but let you know know this is an unsecured loan. We're secured, all these things. So we could paint the picture so now that excuse goes away, now the real excuse might come out, right? But you have to train your guys on financing and everything about it, right?
Starting point is 00:40:55 Back to front to back. I gotta tell you something. So I've drawn this comparison before. Last time I was in Washington, I cracked a tooth. I ended up having to get it removed. So I go to the dentist, the CSR, you know, hey, come into your appointment, blah, blah, blah, it's phenomenal.
Starting point is 00:41:11 They send the nurse over, she builds a report with me, the doctor comes out, you know, washes his hands, hey there, big guy, how's it going? Seems like you had a tooth, right, spikes dopamine, does his diagnosis of the mouth, and then shows you the picture. So now I understand exactly what the issue is and then offers financing and the payment plan.
Starting point is 00:41:30 And you're sitting there and I never thought I need to get three quotes. It's like I believe the doctor, they've run the process perfectly, I understand the issue and he knows about financing. So I have no reason to get up from this chair and pull out the sold me by the way. Well that's what me and Chris were talking about before, there's the similarities between that field, and he knows about financing. So I have no reason to get up from this chair and put up sold me by the way.
Starting point is 00:41:45 Well that's what me and Chris were talking about before, there's the similarities between that field. Oh did you? The medical field and the home service field, right? And it's true, if you can run a process where there, you don't leave a shadow of a doubt, right? You have to know how to close all the doors along the way. And that's what we teach our guys.
Starting point is 00:41:58 I keep from a simple process, right? I could take, we had this kid, 19 year old kid in the business we just acquired in Alabama, right? Never sold anything his life. The kid made $20,000 his first month, $20,000 a second month, and then $30,000 a third month in the field at 19 years old. All he did, I said, trust me, just follow the process. It's gonna work. He's like, he works every time. I was like, dude, all you have to do is follow the
Starting point is 00:42:19 process. Yeah. As you can create a related like a repeatable process when your business now if you go hire guys and everybody's doing it a different way, there's no predictability in your business. Yeah, no cowboys. There's no cowboys in my business, right? And keep in mind, there's some people I don't want to know what the hell they're saying sometimes. I don't know what they're doing, but they sell a lot
Starting point is 00:42:35 and I don't, sometimes, but they still follow my process. And we use things like Rilla and other AI stuff where we can analyze and listen to it and see what they're saying in the house. And I think AI is a big part of like, if want to be able to ramp up like real has been massive You'll be able to see that from from just operations standpoint. Do you do you have managers actually? I know you have real love But do you have guys gone to the field and still do one-on-ones in person not very often to be surprised
Starting point is 00:42:58 I I found that if you need a manager your systems are broken and so I try to think and people like tell me crazy I think the service manager is the biggest waste of position in the whole business. I just don't see, they don't make you money, they lose you money. They're just, they usually don't have, they have bad habits most of the time. So I think if a business needs managers,
Starting point is 00:43:14 there's something broken. And I try to run my businesses as lean as possible. Okay, I'm not interested in 10 for 10 or 15% net. Like we gotta be over 20% or I'm not, it's not worth my freaking time. So like, how do I, you know, in rich, in rich real rich rich people will talk like so poor people talk about how how many bits how many employees they have in Their business rich people talk about how many how much that they get done with as little amount of employees, right? Yeah, so when I look at operation, I'm trying to cut overhead. I'm not interested in adding it, right?
Starting point is 00:43:38 so I don't that's my two cents and that's why you're so invested in AI companies because Yeah, I mean AI is the future of efficiency. Yeah, I'm trying to figure out a way to cut overhead. It's just, you know, obviously I love employees. There's going to be other purposes for them. But there's things that we can cut out. We can cut, I can make more money. That means I can have more money to spend
Starting point is 00:43:55 and grow the businesses and do all these things that are going to help provide for a better future. Yeah. Love it, love it. Victor, well, we appreciate you having on the show, man. It is a breath of fresh air. I don't come from a background of the HVAC world. And so it's been really awesome. Like the last couple of years diving in, getting to know different guys in the space. And very few,
Starting point is 00:44:16 I can say that I have really close, 100% alignment and you're one of the ones. So appreciate just your theories, your thoughts, your direction on business and for everything that you shared for us on the podcast. Now I'm excited, man. I'm also excited and I know both you guys are gonna be at our, we have a sales training event in Ohio in November.
Starting point is 00:44:35 And I'm bringing, so like I believe in bringing everybody together. Like I don't have competitors. I used to be able to try to separate people. I'm bringing the best sales guys I can think of, the best guys that are gonna be able to help you guys change your processes or change your mindset on sales. So I can't wait to try to separate people. I'm bringing in the best sales guys I can think of. The best guys are going to be able to help you guys change your processes or change your mindset on sales. So I can't wait to see you guys out there.
Starting point is 00:44:50 Yeah, announce it. Tell them. Yeah, it's going to be November 10th and 11th outside of Columbus, Ohio. That's good. Beautiful facility. We're going to have about 300 people max. I got probably 10 of the best sales trainers
Starting point is 00:44:58 I could possibly find in the home service space, whether it's roofing, HVAC, pest control, solar, stuff like that. And we're going to really just dive into processes. I told control, solar, stuff like that, and we're gonna really just dive into processes. I told them, hey, you guys can all have as much time as you guys want, but teach people that something that can implement to go take home
Starting point is 00:45:11 in their business. It's not a pitch fest, it's actually down like step-by-step processes of how to dominate. So I'm excited to have you guys, I'm excited to work with you guys a lot going forward and see how that works. Let's go. One quick little thing. You know, one little thing.
Starting point is 00:45:25 I told this to you before we walked in, but I just wanna say it on air. You are really one of the nicest people. Like you don't have an ego. I know you have like an internet personality, but you're just like a really nice guy and really smart and really dialed into your processes. Very hard to find high level entrepreneurs that know.
Starting point is 00:45:42 You know the numbers. You know the business. Like you are an actual operator, and it's been really nice getting to know you. And if you own a business, you need to know the numbers. That's all that's lasting. Amen. I used to tell myself, I'm just a sales guy,
Starting point is 00:45:54 I'm just this, and now you're the operator, it's your job to know every little in and out of your business and how it works. And if you can't read your financials, get with the next level, they'll teach you how to read the financials, teach you how to understand how to really grow your business because the longer you push it out,
Starting point is 00:46:07 the longer you're gonna struggle, the longer it's gonna take you to get where you wanna go. So thank you guys for having me on. It's been a pleasure. Guys, you heard it here first. Focus on your marketing. Get better at that sales process. Implement AI, know your numbers, let's go.

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