The Home Service Expert Podcast - Developing Top-Notch Training To Build A Strong Team of A-Players
Episode Date: January 28, 2022Victor Rancour is the president of Absolute Airflow and the CEO of Service Hero Academy, which provides powerful training resources for beginners and intermediates in the industry, as well as those w...ho are struggling to increase their sales. In this episode, we talked about maintaining honesty with employees to promote loyalty, rebranding your company, advertising opportunities during COVID, the power of training and promoting from within…
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And that's a cool thing in my business. I would say 95% of my employees now never worked anywhere
else. So they've all been through my training class. We all communicate the same way. In the
beginning, I was just hiring anybody and everybody. If you had a fucking pulse, I was bringing you in
if you had any experience. And now when I flipped the script and said, okay, well, now we're only
going to bring up guys from our ranks, right? Or we're going to teach these guys, we'll create
sales guys, we'll create technicians. It's made a big difference on the communication side, right? Or we're going to teach these guys, we'll create sales guys, we'll create technicians. It's made a big difference on the communication side, right? You don't have to teach an old dog
new tricks. Hey, this guy only knows the tricks that you taught him. And I think that's been a
big difference. So I know you do that same thing. You've got to do a lot of the training in-house
where you can level the guys and they can know exactly what you want them to say at any time.
Welcome to the Home Service Expert, where each week, Tommy chats with world-class entrepreneurs and experts
in various fields, like marketing, sales, hiring, and leadership, to find out what's
really behind their success in business. Now, your host, the Home Service Millionaire, Tommy Mello.
Welcome back to the Home Service Expert. I've got Victor Ranker here.
This dude is changing the game.
You guys probably know who he is.
There's very few people that are coming into an industry and doing what Victor's been able to do.
Got to meet him in person here at this last event for Joe Crisara.
He's an expert in HVAC entrepreneurship, marketing, recruiting.
He's based out of Orange County.
Absolute airflow. He's based out of Orange County, Absolute Airflow.
He's the president from 2018 to present,
and he's also the CEO of Service Hero Academy.
Victor Rinker is the owner of Absolute Airflow Plumbing,
Heating, and Air Conditioning based out of California.
He's also the owner of Service Hero Academy,
which provides powerful training resources for beginners and intermediates in the industry,
as well as weathered pros who are struggling to increase their sales tickets and become top-selling techs.
2021, he became a Topps and Trucks Fleet Design Contest winner.
Victor, why don't you tell everybody about yourself?
This is going to be huge, I think. I'm really looking forward to it.
My mentor, Al Levy, said he's watching. So we got to be impressive here.
Yeah, man.
I mean, a little about me.
I'm just an average guy, right?
And I tell people all the time, and somebody works his ass off, but he's just a normal
guy just like you guys and just like me.
And the big thing is, I'm a normal guy that just worked his ass off.
And I always tell people my beginnings.
Nine years ago, I was doing oil changes for six
dollars an hour living in Cleveland Ohio had no future didn't know what I was going to do you
know I moved back to California and you know I just had my little girl and I got an opportunity
to to go apply to a company that's going to teach me how to do HVAC I had no idea what HVACs before
six and a half years ago and since then I've it's changed my life. The whole home service business or industry has changed my life.
I've been able to become an Airtime 500 top selling tech.
I got recruited, paid a lot of money to go work at another business.
And then I decided to have an entrepreneurial seizure in 2018 and start Absolute Airflow.
Through that, we've done over $30 million in revenue in three years.
And now, about a year ago,
I started a marketing company called Service Hero. And I grew to a million-dollar marketing
agency in a couple months. And then this year, I decided... And in March, I decided to start
getting into sales training, which is more my passion. That's my lifestyle business, I guess,
as my passion business. So I've been doing sales training for HVAC and plumbing contractors all
over the country. They fly out to my location in California and training with them.
So that's kind of what I got going on in a nutshell, kind of the short story.
So you guys have a special coming up here, uh, shoot next week already, isn't it?
About 16 days away.
Yeah.
So, you know, I get to, yeah, two weeks away.
I got a, uh, you know, about six months ago, I don't know if some of you guys might know Brent Buckley or not. Me and Brent just started
talking in messenger and saying, Hey, look, you know, he knew what I was doing sales training.
And, and, you know, he was thinking about getting into the sales training industry. Yeah. You know,
he's been $7 million HVAC tech. And I said, okay, let's throw this event. And they're like,
okay, let's throw into the Vegas. And then I got a hair on my ass and said, Hey, how about I go get
Grant Cardone for this event? So I called back Grant Cardone. I don't know if you guys know how much it costs to get
that dude there, but that was about a quarter million dollars drop to get Grant Cardone there.
And then everything kind of snowballed from there. I mean, a lot of people just wanted to
be parts of it. So, you know, I got Weldon Long, I got Jason Walker, Ishmael Valdez,
Tommy Mello is going to be there. I mean, just to name a few, Brandon Dawson,
just an eclectic group of just entrepreneurs that want to help people get to the next level. So
I'm pretty excited about it. I've been working my ass off on that event for six months. So,
yeah. So let me ask you, and this might be a tough question, but obviously you want to grow
your training. You're trying to create a
name for yourself which you've done a great job of but in a perfect outcome i know you're pushing
um a new crm and we don't need to go into too many details here but but feel free to tell whatever
you want what is the perfect outcome of this event for you i mean perfect outcome for me if if you
guys have been following my story i'm a i'm a man of the little guy man
I hope that the guys that do come get to see you know, because I got blessed, right?
So I got to work at one of the best best heating and air conditioning organizations in the country
They're going to sell for a billion dollars service champion. They're they're just a phenomenal company, right?
I got the opportunity to work there
Most guys in the country throughout the country have never got an opportunity first off to be around top-level sales guys, be around a top-level company,
top-level owner. They've never got to see that kind of stuff. So if you know me, that's truly
what I care about. I hope that when everybody leaves there, they're going to leave like,
holy shit, I can go take my business to the next level. Other than that, obviously, I'm a
businessman. I'm there to make money. I have an app that comes out sometime this week if the
developers can finish it. So I have a sales training app.
It's going to literally take anybody off the street,
teach them how to repair an air conditioner,
how to communicate to a customer
why they need to do repairs,
and also communicate to the customer
on why they need to replace it
and why they need to replace it now.
So it's got objection handling,
urgency building,
all these different things that are built inside the app
that we've been shooting videos on
for six months, seven months.
So I mean, it's a one of a kind, no one else has ever really had anything
like this. So I was pretty excited about that. I'm hoping I can sell a bunch of that. I did create a
new partnership and I just got off with attitude talking to him about it. But that's what this one
is here is carrot. It's a KPI tracking software. So each one of your technicians in the field,
say you have your iPad on you, you set you as the owner, you set the KPI as you wanted to hit.
And then it stack ranks them all month long. It gives them, Hey, you're tracking for this, you're tracking for this. And if they hit their goal, then they win prizes that you get
to curate. So you get, so like we partnered with Nike, Adidas, Home Depot, all these pretty much
Southwest ticket master, everybody. We partnered with them and we were able to say, if Tommy went
to go buy these gifts, it would cost you $500.
Well, we're only going to charge you $250, Tommy.
So your guys are getting $500 worth of stuff.
You're paying $250 and then you have to be happy and make it your KPIs that you want.
It could be anything from custom A1 garage door shirts.
It could be a bunch of different stuff.
But I think it's going to change the way that people operate, especially if you have a business with a bunch of young employees that are hungry.
It's going to be like a Peloton thing, right?
Or like how, what's the other company, Vivint Solar?
They create things that guys are chasing all day, like a carrot.
That's why it's called Carrot.
And hopefully a business grows with it.
Yeah, you know, it's interesting because I was checking out your stuff this weekend and I saw Carrot.
I did a little bit of research.
I kind of clicked on everything and kind of studied it and it makes a lot of sense. I didn't
understand that they get the deals at half price. You know, we've been looking, we've created two
different stores for employees and none of them have gone amazingly. I guess the big deal for me
is choosing products. I'll never buy a cheap t-shirt again. I'll never buy a cheap shirt again.
I mean, these shirts are not special, but they breathe. They don't shrink. They don't get lightened out.
So I have a rule, I guess, that from now on, I like funny things that people want to wear
and things that don't even say anyone on them. It's really understanding that it's not all about
the company at all the time. Really, you can do a lot more. And carrots are great. We're bringing on
a sales manager here pretty soon. And their whole job is to help them hit their goals.
And then we're bringing in a dream manager. You kind of heard me probably talk about it up on
stage. But it's important to understand a lot of these guys want a new iPad and whatnot. But
some of these guys want to own a home. They to maybe speak a second language they want to be able to get their kids in a private school especially
with don't get me started the crap going on right now i was thinking about to make a homeschooling
app so you can learn everything because i don't know what a bad idea how many kids do you have
i got three man and then none of them are getting that goddamn shot i can tell you that much so
how old are they i got a seven-year-old bailey i got a four-year-old bryce and i got a one-year-old
brayden so how many employees do you have right now i currently have between all businesses a
little over 100 but my main business in california is about 40 employees so you don't have to worry
about the mandate which is no no no so you got you got all these
guys coming to this event how many attendees do you have so far there'll be about 300
give or take somewhere around there yeah you know joe's a really nice guy enjoyed everything
joe's a giver you know joe just got a big heart really wants the best to attend understands how
to take people from here to here and And sales is interesting. What I find is right now we're very, very good at sales.
Could we be better? Everybody could always be better. There's nobody that can't say,
I reached the top of my sales career. I can't be better. Because now you start going into other
sales. That's why HVAC and plumbing do so well because you can do both. But I feel
like a lot of people, when they get into business, they become so good as a technician, so good at
sales. And sales kind of hides everything. Sales masks everything. It helps you get by.
People always say, what's the first thing you would have done differently? And there's a lot
of things. I would have cared more about the employees, but I say understanding the controller role, understanding that revenue
is for vanity and profits for sanity. 100%.
That goes missed a lot. And I'm just curious in your business, and listen, I don't need to go
into numbers, but did you, like I did, make a lot of mistakes and really go after the revenue rather
than really trying to keep a bunch of the money? A hundred percent. So from day one, I wanted to have anybody that was there and said,
I told him I wanted to have the biggest home service company in the country. And that was
my goal, but I didn't know what that meant or what it entailed or where to get capital or where to,
I didn't know how to run a business. I was a sales guy. I was a technician. And,
and I just, like I said before, I had an entrepreneurial seizure
as the business grew the first 12 months, we did $5 million in revenue from nothing, from scratch. And obviously when you start getting all
the revenue, my ego got in the way, but I never really blew a bunch of money on myself or anything
else. I always just kept putting it back into the business. But I didn't understand the correlation
as you get bigger, that overhead number starts skyrocketing, right? And the correlation between the two. And that's kind of what eventually caught up to me. So eventually
overhead always catches up if you don't monitor or you don't adjust to that overhead. So year one,
it was 5 million. Last year, we did like about $10 million in revenue and we had doubled the
revenue in the second year. So we're like, okay, cool. And then this year I started running into the problems because as you get bigger, I got up to, at one point we had 96
employees, 96 employees, multiple locations. And I never, I wasn't paying attention to it.
I didn't know the numbers like I should, like I do now. So I almost went bankrupt. And that was
about April or May of this year. I realized like, holy shit, like I'm way in over
my head. And that's when I started getting some help and trying to change how I operate.
And I started thinking opposite way. Like I started thinking about profits first, rather than
before I was thinking about revenue all the time. So, okay, how do I can sell shit? How do I cut the
fat to get me to where I need to be as a revenue wise? So at one point we were losing $200,000 a
month. I got us back to break even.
I was like, cool, that's cool. Now how do I get us to 25% net? So like now in October,
when everybody else is not making money, I'm going to hit probably 26% to 30% net this month
off a million dollars. So, you know, I'll be able to hit almost $300,000 profit
because I started focusing on the other way and reverse engineering it. So
I was a revenue guy and now I don't talk revenue. I talk EBIT way and reverse engineering it so i was a revenue guy and now
i don't talk revenue i talk ebita and that's it so one of the guys asked is it commercial
or residential or both all residential i don't do commercial okay so you answered my next question
about the challenges you had i've been there man I've been there to where some people are like, man, that guy's on top
of the world. And really, it looks like that from a distance. But I just got in this building two
years ago today was our big brand opening. So a few years ago, I personally had good money.
And I was able to stack some cash. but the business just was not feeding what it should have
been. And right before I started this meeting with you, Victor, I was in another room. I have a big
green room that we shoot videos and I've got three guys that work out of there. And one of the guys
in there said, hey, listen, dude, I want to hire a full-time writer. And I said, well, I got a
couple of questions for you. I'm totally down to hire as many people, but I need to know tomorrow, give me your 10 biggest
things you're working on, projects.
And I want to know which are increasing of the morale and the unknowns.
But I want to know, how are we tracking that back to revenue?
He said, well, Tommy, just on our newsletter alone, I'm spending 40 hours a month.
And I said, that doesn't fly with me.
We need to get that down to 10 a month. I we need to start delegating more he goes but the quality might
not be there i say well show me how the employee morale is increasing enough to make the bottom
line increase to make people not leave you know i gotta have analytics because if you come to me
victor and you show me something and you say dude i'm gonna give you a 10 times return on this
writer i'll hire three of them if you give me me that kind of return. Yeah, 100%, 100%. But just going off a whim, I can't do that
anymore. I used to say, shit, get everybody you want. We're a big enough company. We can afford
it. So I said, well, what are we doing to track the engagement of the newsletter? That was the
next question. And he goes, what do you mean? I said, are we putting it on the back of the
website on a HubSpot and seeing who's opening it and how they're interacting with it? He goes, what do you mean? I said, are we putting it on the back of the website on a hub spot and seeing who's opening it and how they're interacting with it? He goes, well, no. And I said, so you don't have any idea the ROI on this newsletter. I said, that to me is kind of scary. And I want to help you out, dude. So give me two weeks to work with you. Let's whiteboard a little bit. Let's figure out exactly what needs to happen to be able to hire a writer. Or why are you so afraid to get a 1099 to get a
specialist maybe in another country i'd rather than be united states based for a writer but a
videographer i don't really care as long as the videos come out good he said well it's a lot more
work you're tracking people down i said so you're telling me because other people aren't doing their
job that we're gonna hire somebody to chase them. Yeah. And he's like, well,
I didn't really think about that.
And I can do better.
I said,
no,
dude,
this isn't a make you feel bad.
This is just talk about reality.
Let's go to the facts.
And I feel like facts are sometimes scary.
Even for me,
you know,
when I look at certain things and I go,
oh my God,
we're in 26 markets,
Victor.
Yeah.
And when I look at them right next to each other is I circle things and I go, oh my God, we're in 26 markets, Victor. And when I look at them right
next to each other is I circle things and I go, what is this? Why is this so much higher?
What is this? What is this? What is this? And it always tells a story. And what is so exciting
about you is until you get that feeling deep in your stomach and you look at your kids in the eye
and you say, we almost lost it. You don't
know what life is. You don't know what business is. And the fact that you stood on literally the
edge and you felt that there was no cushion. Daddy wasn't there to save you. Mom wasn't coming in
with a billion bucks to bail you out. And I've been there. And when you have a check bounce
or an employee that quits last minute that's when you know what business
is all about so you can't get to the top until you've been to the bottom and i'm glad you're
on your way up because not a lot of people know those stories of all the things i love that there's
this picture of uh you know the mountain of success and it's an iceberg this one there you go
yeah all the shit that happens and and you know the pitfalls
that happen in a business or that you think it's just this way in the way it's hot but you you
fall down all these little holes well what the one thing that bugs me the most on me and you've
been one that's talked about it right and a lot of these guys are the talking heads and these guys
are on social media and everything's great and all that stuff and nobody talks about the losses
right so imagine being a small-time guy in another state that doesn't have the know-how, but he sees,
oh shit, like these guys are always doing good. I'm doing bad. He's going to give up because he
thinks that it's not normal to do bad at one point, you know? And that kind of stuff kind of
me, right? So like one of the things I always try to get at, I'm like, I hope that people in the
industry can be more honest, right? Talk about that. Don't just talk about the shit.
Talk about the bad shit that happened,
right?
Because that bad stuff you've already been through.
Someone else's might be going through it right now.
And it might help them get past that point.
It's like the girl on Instagram.
That's always posting hot pictures.
You know,
she was an ugly girl at one point,
probably.
I don't know that you see these teenagers though.
That's changed their life.
It was like more suicide and everything.
It's like, literally they don't feed themselves. It's bad., that's changed their life. It was like more suicide and everything. It's like,
literally they don't feed themselves.
It's bad.
And like,
literally for me is the one thing that I feel like that I've been able to do
very,
very well is contain my spending is I have a Titan.
It's not an old Titan.
Somebody told me one day when I brag about my 2012 Titan,
they go,
why don't you buy a new truck?
Now it's getting a little old,
dude,
you could afford a new one.
Get it.
It's a fine, fair, fair. And you know, I've moved in a really nice house. We just, why don't you buy a new truck? Now it's getting a little old, dude. You could afford a new one. It's a fine, fair, fair. And I've moved in a really nice house.
It's under contract. It's been inspected. It's a million dollars more than I paid for it a year
ago. It's a good investment. So I moved back into the apartment. I'm building a house for less,
but it's everything I want. And I talk real. I'm like, look, the one thing that I think most
business owners have a hard time with is delayed gratification.
And when you got in there, I'm sure you weren't just buying diamond rings all day, but you really wanted to grow super fast.
And someone had said here, how did the change to reduce the growth you were going for affect the company morale?
Did you have people leaving or were you able to communicate that change and keep people on board?
As a business, right?
So everybody wants to be on top of the train that's moving fast and moving up.
So there was casualties, right?
But I communicated it, right?
So there's one way to go about it.
You start cutting people.
Don't communicate.
Don't let nobody know what's going on.
And I said, hey, look, I'm going to be an open book.
That's where we're at financially.
That's what I have to do with these moves.
I need you guys to be here.
And I said, if I do this, this, and this, and and you stay with me we're going to go to the next fucking different
level and i'm going to remember who was there with me when we made these moves and i lost a couple
guys but most of her i didn't really lose any sales people i didn't lose any technicians i lost
a couple installers right so i didn't lose the people that made me money i lost along the way i
lost a lot of the fat right the counting the
operation side at one point i had four people doing the same damn fucking job well now i got
one guy doing that job and he's doing it better than all four of those idiots were doing so it
was a lot of the stuff for the people that that are gone if you actually ask my other employees
are like why the fuck was that guy here right because he's he was actually they were kind of
mad that that person is even here doing nothing all day so now i can tell you my my company morale is in the three years it's never
been better than it is right now everybody's happy everybody loves to be here everybody's excited
about the future the first couple weeks month and two months or whatever it took about two and a
half months to go from the 90 something down to 40 and there's like a death by a thousand cuts
almost but we got to the point now where we're like okay cool this is the squad and everybody here knows where they belong they all want to
be part of it as we grow what they know they know that now they even see it in me because i was an
absentee owner i was just you know i was so focused on other things and i just didn't focus
like now they see it like no i know my fucking numbers all the time i know where we're going i
know exactly where we're gonna hit for the month i know we're gonna hit for the day and they see
that i'm doing that that I put the work in.
Now they want to follow me wherever I want to go.
So it sucks in the beginning, but I can tell you right now, that's the person that you're
worried about hiring is it will quit on you in a second and it won't give a shit.
Yeah.
You know, in the book, the sales boss, Jonathan Wissman talked a lot about usually your top guys, they want to be
taken care of. They expect more because they know how much they earn you. The one thing that no one
tells top guys is how hard business is. And some of the guys are going to try to start it on their
own. You succeeded. But when you're really, really good at your job, I think business owners,
they become business owners and they forget the fact that they got to be leader. They got to build a really good morale around the company and they
got to have a really good culture. They also have to be good at training. They also have to be good
at accounting. They have to be good at financing. They got to understand payroll. They got to
understand how to work with marketing. They got to understand agencies and they got to understand
how to get vehicles. And then, you know, you, you had something happen.
That's very interesting.
Yours is about as bad as mine.
Everybody would brag to me about how awesome my old lands were, but you rebranded.
The old one was so bad, man.
The old one was so bad.
You know, we both had Dan take care of it for us.
I wonder if I have an old one.
I do.
Oh God.
I got the old logo here. it's a i got it at
fiverr.com and that was not it looks a lot better on the hat than it does on a truck but you know
that's the same thing when you talk to dan it's like okay you can get a logo that looks good on
a shirt but doesn't look good on a truck on billboard on these other things but yeah so
you know i went through the same thing with when you did, you know, everybody's like, why are you changing? You know, I had just come off a
over $5 million a year. Right. And all of a sudden I was in Vegas and I remember I was
walking through Vegas and I was this, this short, bald guy who looks really small,
older dude. And I'm just kidding. And Dan's watching. I love you. I'm just fucking with you.
But he's walking through there and he sees, he's like, dude, that's a terrible logo. And I'm like,
what? And I'm like, I got defensive. Right. I'm like, what do you mean and he's like dude that's a terrible logo and I'm like what and I'm like I got defensive right
I'm like what do you mean I'm like there's not everybody likes it
we're doing good blah blah blah
and it stuck with me and sure enough
like a month or two months later I'm on the phone with Dan
like hey dude I gotta fix this thing let's let's get it done
you know
Al Levy kept bugging me
he still got a van out there and he goes dude
is your logo
you don't want to insult somebody
but you don't want to also let them feel good about it so he said what you got to do is take
a picture of your logo in black and white so literally just print it out on black and white
paper and see if anything jumps out at you so you know i've got the yelp the angie's list the bb i
got everything in the brother their phone number blah, blah, blah, blah. And I'm like, licensed, bonded, insured. Here's what we do. And now I drive by and I'm like,
I'm very critical now of other people. It's like, what do you even do? My buddy sent me a billboard
and he's an amazing guy. And he says, Tommy, you know, here's my billboard and it's got,
we buy houses. Here's what kind of houses we buy. Here's the phone number. Here's other ways to get ahold of us. And I'm like, dude, you're driving by this thing. This is all you got. This is it.
It's a drive-by. They're not like, oh, let me go around again the freeway and get the phone number.
Oh, let's go read that. No, dude, you got to make, what I learned is the billboards, the TV,
the radio, really what they do is they build something in the subconscious.
And what happens is the click-through rate over time...
You know, when I was at this big event that Cristiano had, amazing guy, by the way, I know you know him.
One of the things that Gary Vaynerchuk talked about was the toll booth.
And I've told the story a lot, but he said,
you guys realize every time you do TV, radio, billboards, you're paying the toll booth.
And everybody's like, who's the toll booth?
And they're like, Google.
Google's the toll booth.
Every time someone goes to Google and searches your name, they click on you.
Hopefully they clicked on you.
If they do a search for Garage Door Repair Phoenix or Air Conditioning and Repair Orange County, you're paying $80, $90, $100.
And then hopefully you get that conversion.
And, you know, it's interesting, though.
You mentioned something earlier and i'm going to do a complete 180 here because you really you made me think here and i
don't know if i should say this might get in a lot of trouble so i'm not even going to name names but
there's a guy i know who worked really closely with michael gerber who's one of my heroes
michael gerber is amazing you know he said tomm you wouldn't believe this. And don't even guess because you'll guess.
It's easy, but don't guess.
And he said, Michael Gerber is not that organized.
He said he didn't get back to me when he said he would.
He said his business was not a whole system.
He said, my lifelong dream to become this guy and get to meet him and understand his book was kind of let me down.
And isn't that interesting that some of our mentors,
some of the people, and listen, I've had people come visit me that said, I expected more.
You know, this is a funny story that Josh Kelly shared with me, but he said, Ishmael came into
his office one day and said, you know, this is it Parker and sons. And he said, yeah, this is,
this is a place of business. We didn't build taj mahal for people to come visit and and love the business we go visit customers houses so yeah you're absolutely right that listen
even the best of us have hard times no it's true man you know ishmael obviously he's in my market
so we go back to those billboards right and before talking to ishmael in vegas i already knew where
the the power in that billboard was and it's
the pill so he's got 250 billboards or some shit in southern california right and when you see them
at first i'm like dude what is this idiot doing he's got like he's got billboards back to back
to back to back to back like you put it on the freeway you'd see 10 of them in one drive and
you're like dude what the hell well first off i didn't realize that billboards at that time were
super cheap because of covid so he was able to apprehend a bunch of billboards for less money right
but subconsciously in his head imagine who's driving down that freeway so you're not only
you're paying a tax that booth for google but also how hard is it for you to recruit right
well if you're driving down the freeway all day and you're a technician and you see
10 billboards in a row from one company and your company's giving shitty calls you think
you're going to go probably go see what the hell's going on with that company that could afford
fucking 10 billboards in a row and that was probably the most genius thing i've seen him do
was it was that so obviously it's going to help with google but the recruiting aspect you can't
go down the freeway without seeing a next gen billboard anywhere in orange county and obviously
more power to them that you know to have the forethought to do that i don't know if that's
what he was planning in the beginning,
but that's what I see.
I'd like to,
and that's fucking genius.
And now we've got,
you know,
hundreds and hundreds of people that come work for him and people lining up
and calling him every day.
Well,
a good quick question came in.
Are you spending the same amount of marketing or did you reduce your
marketing?
Reduce.
And I was trying to find you to figure out where that sweet spot was.
And Tommy said it's 7%. So I'm paying 7%. That's what I'm at. Well, this month that's 6.2% is what my budget
is for marketing in October. Okay. Well, here's what I'll tell you is start with the end in mind,
because I would tell you the 7%, 8%, 9%, 10% are all good. 15% is good. It depends on one thing. Am I planning on selling it or am
I taking market share? You see, when I work out, I have a plan. Am I bulking up or am I cutting up?
There's only two things that happen, right? But it's really hard to gain a lot of muscle and get
chiseled at the same time. So I think business is the same. I say, look, am I taking on a lot
of calories? Do I know I'm going to gain a little bit of fat? Yes. But for six months, I'm going to go into the bulking phase.
I'm going to eat a lot of red meat.
I'm going to do a lot of calories.
I know I'm not going to look great, but I know when I get cut up, I'll gain the muscle.
So that's how I look at business.
And there is a magic number, but the deal is there's a lot of things that don't pay today.
Like SEO, building links, don't pay today.
If you do Billboards TV radio and you think see i was a
little bit different than ishmael my guy calls me up and he goes dude tv is like a fifth of the cost
i go yeah let's run the shit out actually mike bailey in milwaukee said hey dude i'm gonna run
some ads on tv we're a little slow this is just when code came out i looked at the price i'm like
is it really this price he goes yeah so i go a minute. You're paying a fifth of the price
and there's five times more people at home. And I think a lot of people miss that. Everybody was
running for the hills saying we're screwed. We're going out of business. Who knows COVID's going to
kill everybody. With what's happened. How old are you, Victor? I'm 32. 32. I'm 38. They said
everything that happened so far is once in a lifetime 2000 the housing crash
once in a lifetime covid worst pandemic in 100 years once in a lifetime i'm like man i know a
lot of once in a lifetime crap but now i'm like a lot of times it's knowing your own business i
know one thing that if someone else is struggling and i was beating them before like when they can't get
supplies and we can't get supplies they're struggling just as much like like that's what's
nice is i got buying power and people are willing to do me favors now and i see all these small
businesses calling me up they want me to buy them and i'm like dude this is a good thing because i
help these people and help their families and i'll tell you what if it's tough on you
you know leland dude that guy is a business freak he
knows his shit like the back of his hand and you got to work around that i mean when i went there
and did a tour and hung out with him it's pretty freaking impressive and you got to feel fortunate
like you said to get trained by the best and see what see what that looks like yeah i mean obviously
leland you know i've got to work at service checking then i went to go work at another
competitor down the street.
And the second I walked in, I'm like, this isn't the same.
Like, because I had only worked at one place and then I got to go walk into another one. I'm like, this guy doesn't, they don't operate.
They don't think the same way. Like Leland gets it. Right. And Leland,
there's a,
there's a reason why he is who he is and why he's been able to go that
business. But like I said, I I'm forever grateful.
Like if I never got to work there, I'd never be that mad.
I would never have accomplished what I've accomplished.
So I think that if anybody gets a chance to go check out what they're doing there,
it's phenomenal. And now he's just, he's in super buy mode. I have friends that, you know,
that work there still. And I see them, they're on jets all over the place. Cause they're going to
check out these other businesses to help buy them for, you know, believe in try to acquire
these businesses are on board, all these businesses and stuff. So it's pretty cool to see not only that business grow up but like all those people
that were with him he's taking care of them and allowing them to move into better positions too
so it's pretty cool i'll tell you my favorite thing i i think that i took away is his team
his dispatch team amazing there's a guy um i'm trying to get a hold of him named wyatt
wyatt yeah why it's a good friend of mine was actually just, he's the one that's been flying around all over the place. I've been talking to him every day.
So Wyatt's a great guy. And he goes, Tommy, he goes, here's what my team does. So we're in his office, he's eating Chipotle.
And what happened is they were reaching out to the technician while they were there with the customer. So they were checking in saying, Hey, wanted to make sure he had his booties on when he walked in, wanted to make
sure you're happy getting a five out of five. It was like the complete accountability. So if you
guys aren't mentioning this or mentioning financing or doing this, that completely eliminates it. It
creates the ultimate accountability. And I'm like, Oh my God, like we need that. And it just,
so many things I took away is they took me around
and they showed me how they were training and they get all these guys at 15 bucks an hour,
but those guys only run the memberships. And recently I had a great buddy in town Keegan.
And he goes, Tommy, here's a little secret. He goes, never put commission people on maintenance
agreements. Never. He goes, yeah, give them a small piece.
They should get hourly plus a little bit.
But their goal is not to sell.
Their goal is to create relationships.
You know, I've been doing a lot of this stuff wrong.
And the funny thing is I don't get any of the answers from garage door guys.
I get them all from HVAC plumbing electrical guys.
Yeah.
Well, I mean, it's a business.
Obviously, garage doors, you're trying to bring it in to a whole new level, right?
And going forward, there's probably going to be another 100 Tommies over the next 25 years that are people that want to be like you, right?
That's going to change that industry going forward.
Because, you know, I talk, you know, I'm in a lot of groups.
And all of a sudden, a lot of people are like, well, I do garage doors.
I do garage doors.
All of a sudden, I'm like, oh, there's a lot of people that do garage doors, right?
And I've never seen it before.
And a lot of the guys that I see they're doing, they're doing pretty well, but most of them are probably following what you do or doing a whole different
level from 10, even five years ago, probably what was going on there.
So it is pretty cool. Like, so you guys probably,
do you guys have a call by call manager in your business?
No, no. Explain that. And I know what that is, but I don't do that.
Right now I have one,
I'm trying to add a second call by call manager and his job his job, he communicates with the technician on the way to call.
He's talking about where the call came from.
Are they homeowners?
Are they, you know, he already looked up on Zillow.
That's how many square feet they are and all these things.
And so he's communicating, okay, this call, it's a 10-year-old call.
We're going to go after a system replacement here.
We're going to go after this.
So we already get them motivated.
When they get there, within the first 20 minutes, they give them a rundown of what went on there. Okay, cool.
So he kind of gives them an idea of what to recommend, what to do. I get there and as they
get to the table, they don't feel comfortable communicating. They call him, he'll actually
communicate to the customer for him. So he'll be like, Hey, you know, Brad's not the best
communicator, but let me kind of explain to you why he's recommending this stuff. And he sent me
photos and I looked at it, but we both agree that we should probably look at doing this so he's actually helping coaching these guys especially
because i hire all the guys from scratch so he's coaching these guys through it he also follows up
you know after the calls following up asking for reviews so you know that's his day is constantly
doing something right and as we scale we'll have a couple more of those guys and he's making sure
we're making those getting the average ticket up offering stuff on every call he looks through
every call to make sure we have our photos we have our option sheets done all
that stuff so it's a pretty hard job but he enjoys it and the numbers have gone up dramatically since
he's been doing it so sean stevens created that program that used to do the poet page program
so basically you can get a manager out there that run a jobs or teach you how to do turnovers
one thing that i've learned this past two years, Victor, this is the honest to God swear Bible.
Put more time up front into the guys.
Teach them exactly how to sound, what to do.
Have them run through 100 scenarios.
You see, too often I think we cut guys loose and say, we'll help you out as you go.
Now, if you could do it 100 times in front of me perfectly. Now, the only thing that scares me about the call-by-call manager is, for me, I run 11,000 jobs a month.
How many jobs do you run a month, honestly?
I run about 1,000 a month in the slow times.
I don't know what it is during busy times.
So 1,000 jobs.
So I would need 11 of those.
And we tried this.
We called it our virtual field supervisor program and what we learned was man you know that there's a talented person that needs to do that and be
able to work with these guys but what happens is you call that line and you go hey i'm on my way
to a job dude i'm working with another guy and so what i learned for me for garage doors is you got
to spend a lot of time up front and train these guys, everything like the back of their hand.
And no,
but,
but,
but I love the concept of it,
dude.
You know,
what's nice is when you get to a certain size,
one of the gals I met that does the dispatching,
the tough dispatching,
like she's got her own office.
She's like,
man,
I got to sit with these guys every day and I got to figure everything out of
the top guys going,
we're doing this.
I forget.
I got a picture of her card,
but she's like, yeah, I've been here 24 years. Yeah. Yeah. Yep. And it's so cool because
to find those people and build that process, it just can't happen overnight. You could rebuild
it, but where are you going to find those people? Cause it takes time for them to learn this stuff.
Well, and that's a cool thing in my business. I would say 95% of my employees now never worked
anywhere else. So they've all been through my training class. We all communicate the same way.
In the beginning, I was just hiring anybody and everybody. If you had a fucking pulse,
I was bringing you in if you had any experience. And now when I flipped the script and said,
okay, well, now we're only going to bring up guys from our ranks, right? Or we're going to teach
these guys, we'll create sales guys, we'll create technicians. It's made a big difference on the communication side, right? You don't have to teach an old dog
new tricks. Hey, this guy only knows the tricks that you taught him. And I think that's been a
big difference. So I know you do that same thing. You've got to do a lot of the training in-house
where you can, you can level the guys and they can know exactly what you want them to say at any time.
You know what? I thought I had good training and I've never seen anything like ours,
but I feel like i'm half
what it's going to be i mean dude i'm learning about certain things let me just tell you certain
things like smell this is called a boom stick there's somebody just said yeah you hit me with
that shit in vegas yeah so the deal is dude it's sent it's hearing so right now i'm trying to get
my guys to record conversations and I'm trying to get
the turnovers that are done virtually.
I want all that shit because here's the deal.
When you come here, I'm going to play a hundred perfect calls and I'm going to hear you replicate
it.
I'm going to say, let's say the same objection.
Let's get over this.
No, no, no.
You messed up.
Eye contact.
Dude, why are you pulling your arms?
That looks like shit.
No, no, no.
Watch your shoes.
Watch where they're pointed.
Watch the way you stand next to her. Look, all i watched this guy um rodney rodney he's the one
of the really he's a rodney webb and uh adam actually the guy he just talked to got on stage
with him at this clope convention and and man he had to repeat oh really what makes you say that
and he had to say all these things perfectly and adam's really smart dude and the guy kept like
no no you seem angry when you say you've seen this, you've seen that,
you've seen that. And the employees, their mood, their attitude, the way you make them feel along
with great training and continued training is probably the most important thing in the company.
It's easy for me to say that when I have these trainers and recruiters and stuff,
but dude, it's taking your personal time and making a phone call.
And I got to say, and there's one thing I regret is not being there for my guys enough. You know,
I'd call my guys every day and I only have a certain time of the day, believe it or not,
it makes my day calling the guys. The guy has a big day. He calls me. I just had a guy text me
a hundred or made a million dollars so far this year, which not made,
he didn't make that personally,
but he just hit a million dollars in revenue.
And I've been getting these messages all month.
One of them is at 2 million.
And I got to tell you,
that makes me feel there's guys listening to this right now that go a million
dollars and garage doors.
I mean,
you guys,
I don't know what you did in a year,
probably four or 5 million,
you know,
something crazy, but we're not selling stuff for the same price it's all relative right and the pricing and you know I got a good friend of mine Daniel you met him at at Joe's thing I think
he works for Ishmael now that guy that guy was selling seven million dollars a year in southern
California an HVAC dude there you know freaking weather in southern California dude and when stuff like that, it's just, it's kind of crazy to even try to wrap
your head around what's possible. I mean, but I think one of the cool things, like, you know,
for me, I have a good friend of mine. I consider him one of my best friends. Right. And we went
to junior high together and the kid, we didn't really hang out too much after junior high,
went to high school together, but we weren't really like good friends. And I still remember
when I first got into HVAC and like I said, I knew nothing about HVAC. I went to high school together, but we weren't really good friends. And I still remember when I first got into HVAC. And like I said, I knew nothing about HVAC.
I went from doing construction to all of a sudden I'm an HVAC tech in training.
And I went through Leland's program that he had at the time, which isn't as robust.
It's not like it is now where it's like intense training or whatever.
It's more of a, it was more communication stuff.
And I'm like, cool, I can sell stuff.
I'm good at that.
But I remember I got out of training and I started doing really good.
And a buddy of mine, he started, he was following me on Facebook or facebook on social media and i haven't talked to him in a long time he
reached out to me like hey dude what the hell are you doing now you're starting to make you know i
see you make money we both have our daughter the same age and i said well i'm doing hvac well he's
like well i'm actually going to school for hvac at occ or it was like a junior college i'm like
well how about you quit that shit and come over and apply where i'm at they'll train you i'm like
you don't need all that shit and he kept pushing pushing me off, pushing me off. Finally, he's like, okay,
I'm done. He was a line cook. He was a line cook at a restaurant. I said, just come on and apply.
I'll get you the job. And I told him exactly what to say. I told him how to dress. I told him
exactly what they're looking for. And he got the job and he went through service champions. He did
really good. And then he started working for me two years ago. Now, last month, he almost had $500,000 in revenue in sales, right?
And he wound up being a line cook a couple of years back.
He made close to $50,000-something last month selling air conditioning.
It's a lot of money, man.
I'll tell you what, there's a lot of money in the trades.
And by the way, if you guys go to homeserviceexpert.com forward slash Victor-R Ranker, R-A-N-C-O-R, you'll hear a summary of all the key takeaways that we put in the notes because Victor's going to drop some bombs here.
He already has.
It's crazy what guys can make in this industry.
And what really bugs me is my whole mentality now, and I've been writing these things down, is what else could we give our employees?
And I really am.
I'm trying to do the whole carrot thing on top of a lot more.
In my opinion,
I want these guys to be homeowners.
I want them to have the vehicle they want for them and their wives.
You know,
like I said,
a private school,
if they choose to be able to go on really,
really all inclusive trips to wherever it might be Tahiti or Hawaii or
Florida.
And I keep writing more and more down and I've got a pretty big list going
and I'm like, someone's got to pay for this stuff. And so my prices keep going up,
but it's really, you know, I'm comfortable at a certain margin. I'm comfortable between 15 and
20%. There are guys that say 25, 30%, that's fine. But at some point I think either you start
gouging the customer or you stop paying your people enough money. But what's crazy is the more I
think about if I was in their shoes, truly believe that you're in their shoes and really try to put
yourself there and say, would I work for this person? And yeah, I would work for me, but I
still think it could be so much better. And I'll tell you what, it's going to become a melting pot
of amazing people. And it doesn't need to be garage or a text. I want to take people in from everywhere. And your secret sauce, if you guys are listening out there,
should be, how do I create a melting pot? Where would I want to work? Would I want to work on
call five nights a week? Would I want to work as a warranty of the first two jobs that I run,
warranty calls? There's all these things. Let me ask you this, Victor, who would you want to work
for? I'm sure you're becoming that person, but're not you've been doing this a couple years but really who would
you want to work for what was important to you in lila like what did you love when you walked in
that other shop and you said it's missing structure it's missing communication it's missing probably
an orange shirt but what else what bothered you that that other place didn't have the owner didn't
give a shit and you know back to what you were just saying. So it was an
absentee owner. He was living in Hawaii and he had a business in Southern California. So I was
working six days a week, running crazy hours. I was the service manager, sales manager. I was
helping with dispatch. I was the top sales guy. So I was doing everything for this guy. And he
lived in Hawaii. I never saw him. I didn't get a pat on the back. I didn't get, there was just nothing there, right?
Well, then there's service champions who's got layers of managers and people that look
up to you and there's goal tracking.
So I went from the big leagues down to the minor leagues where I went from at service
champions, I was a big fish in a big pond over at this place.
I was a big fish in a tiny pond.
And people didn't, you know, it was just the culture that they had built in service champions where people
actually wanted to be really good at their job over here. It was like, well,
this guy is not here. He doesn't, I don't give a shit.
I'm not going to work those extra hours.
I'm not going to finish that install today. I'll finish it tomorrow.
Stuff like that. There's a mentality thing. And, and I think that's,
that's what I'm trying to build here is that like, no,
like we go fuck shit up here and it's a lot of fun. We go do fun things.
I took my guys, you know, to, you know,
the Monday night football game the other night you put them in a company suite
Like just cool shit like and that's kind of what I want to make it
I want to make this place fun because for a while it wasn't fun anymore
It was we were so worried about growing growing going
I wasn't paying attention to people I had that really wanted to be here and really cared about me
I got a phone call last week. I was on a call with all my managers in every single
market and this guy goes dude he goes all the guys are 10 times happier he goes all i do is grill
he goes i've been grilling and he goes i even have other garage companies come by
he goes all they do they just shoot the shit he goes i don't try to recruit them
because it's right across from the manufacturer, like right in the same parking lot.
And I'm like, good.
And when that happened, I text Crystal.
I go, when are these grills coming?
And she goes, I got grills coming to every single market and making pancakes.
You know, it's not about so many people think it's about this expensive shit.
Football, bringing you guys to Vegas, taking them on planes, doing this, doing that.
I'm like, dude, how about thank you every now and then?
How about a trophy for kicking ass?
How about world's best mom if they're raising five kids at home and you tell them to
bring that home to their mom?
They fight over this every
month.
Custom fucking belt. Where'd you get that?
It was online. It was a website
that makes custom belts. I got that thing
made and these guys were battling over it.
If you weren't able to see that because you're listening uh he's got this big wwf or
wcw belt and they get to wear the belt i love that dude i'm getting a big freaking wrestling
belt dude that's that's so cool you know part of my thing is just still other people's good ideas
no i mean that's it's a little's a little r and d rather duplicate you know
what i mean oh no i you know yeah that's what we do someone asked about the training programs i'll
tell you a little bit about mine is it's it's a eight-week process levy kind of gave me everything
he's got and then i kind of made it into raj drawers but he he gave me all the manuals
someone asked about manuals like the first 10 I got from him. And then we started making more cool.
Once we got the outline of how it's done.
And so now we have something like 47 manuals or something crazy.
But the way I do it is you start out as an apprentice for four weeks and we
get you in to Phoenix,
but you got to learn shit.
You got to go through.
And the more shit I can teach you in that four weeks and make sure you're on
time and good.
When you come to Phoenix, dude, now you're going to leave a million dollar producer i mean it's
very rare or you're going to fall off within the first 60 days so there's only one of two answers
million dollar producer or fall off and yes everything we do we go through first you're
going to learn every single thing to be a ninja on the garage door because if you don't know but
then you learn how to sell financing and learn your way around the ipad there's so many things you got to learn but here's the deal i got guys that come in
on the weekend and teach now i got guys that come in at nights if you need extra help they'll come
in at four in the morning for you and so you got to want it so i get in front of the class tomorrow
i'm talking for three hours and trust me me talking three hours is easy i don't even have to go peak
like i just get up there we we talk for 90 minutes i don't know yours to go pee. Like I just get up there. We, we talked for 90 minutes. I don't know. Yours was shorter. I had to talk for 90 minutes and I go like, like people like who
the hell is going to go up there and talk for 90 minutes. That was like a fart in the wind for me.
I was like, 90 minutes is already done guys. I'm sorry. I guess I gotta be done here. But
orientation. That's one of the things Al talks about telling you guys why they're here,
helping them understand the vision and the mission and what's the purpose. What is the purpose of being here right now? And this time
I literally went up there for 10 minutes and ended up being 45 minutes. And I go, guys,
everybody's watching you. You won't even realize it. When I watch you walk by a piece of paper
in the parking lot, I mentioned it to the trainers. When I see you pick
it up, I mention it to the trainers. When I watch the smallest things, like when, if I see you
yawning and falling asleep in the morning, I'm like, it's okay. Every once in a while, all of
us make mistakes. All of us get drunk. Some of you guys don't drink, whatever you guys do.
But the deal is, is we make mistakes, but come on, dude, every morning you come in and these
little things we notice. And my goal is to send them home sooner than later.
What's your goal?
As far as what?
What's your trick about training?
Because not a lot of people have this figured out.
So obviously, you know, if I have a training program,
and I learned this from Leland, right?
The main thing I want to focus on the first couple of days,
are they on time?
If they're late, they're fired, period. like for my guys have to shave every day if not shaving you can't fucking
follow the rule and shave your face every day you can't be you can't work for me uh but main thing
always looking for attendedness if they're falling asleep in a class you know they're yawning fall
asleep whatever it is and they're they're not going to make it so you know you probably do the
same thing so what i'll try to do and i got this Leland, is you go get 20 dudes or you might get a hundred, right? A hundred guys to start. And your goal
through that eight weeks is to weed those people out. Cause those eight weeks, yeah, it costs you
money to train them, but it costs you more money to keep the guys that aren't really meant to be
there. So Leland will weed them down. So like, I remember I was in a class of 20 people. And when
I left that class after eight weeks, like three people left, right. It was only me and two other
people that made it through that decided this is the career we're going to have.
And I think that's a really key factor in it is you have to make it to where, you know, these guys,
when they're done there, they feel like they earned something. They should get an award when
they finish. They should feel like, dude, I made through, made it through because those are going
to create more loyal employees, right? So I think for me, the main thing I want to do is make sure
that I not just train them, but culture them to where like, I'm sure me, the main thing I want to do is make sure that I not just train them,
but culture them to where like, I'm sure when they're done that I want to invest the 30 grand
it takes to stock a truck and the gas and send someone to my calls, it costs a lot of money,
you know? Well, you hit the nail on the head and our goal is kind of like you got Navy SEALs and
then you got SEAL Team 6. So first of all, becoming a Navy SEAL is almost impossible.
To make it to becoming in the Navy is tough.
Navy SEALs is almost impossible.
SEAL Team 6 is like the best of the best of the best of the best.
So I consider this like SEAL Team 6.
And I'll tell you, I walked up upstairs one time, Victor,
and I look and there's like nine dudes.
And, man, I'm trying to get to 50 because 50 will give me 30 but i'm
seeing 50 that fly out to phoenix and i gotta tell you my heart kind of dropped a little bit because
my trainers tell me if a class isn't 20 or more it's not as effective there's not as much
participation that there's not as much engagement it's's just not what it needs to be. So, you know, that's the day I told you that up on stage is Jody. Jody's wife, Vanessa, called me up and said, hey, dude, we got a program and what we were already were doing, but when I was able to quadruple the amount of people we went through, yeah, the class is less than 25.
It's right around there.
But man, I had every single eyeball.
When I walked in, they're like, hoorah, A1 from day one.
And they started.
And I was like, boom.
And all of a sudden, there's just energy.
And they're like, you could drop a pin.
And they're taking notes.
And I was like, write this down.
I was like, how many of you guys have ever wanted this?
And every hand went up. How many of you guys have done it? Boom. And I'm like, you guys competitive a pin and they're taking notes. And I was like, write this down. I was like, how many of you guys have ever wanted this? And every hand went up.
How many of you guys have done this?
Boom.
And I'm like, you guys competitive?
Who here wants to be number one?
Every freaking hand.
Boom.
I'm going to be number one.
And I'm like, this is freaking like steroids, dude.
Like these guys, look at this.
If I take 20 guys, look at this.
Let's just add this up.
20 guys do a million.
Okay.
The next month, 20 do a million, 20 do a million, 22. You can't go
20 times 12 because, but you got to understand, I love this because it's going to be a little bit
of math and it's going to be a little bit off. So you got 20 million the next month, you might
have 18 the next month, you might have 16 the next month. It's probably like more like 19,
18, 17 million. When you add it all up, it comes out to hundreds and hundreds of millions
of dollars. But here's the deal. Once again, I go back to this thing. How many lives are you
changing? How many wives, kids, husbands, whatever it might be, how much are you giving back at that
point? And that's, what's crazy to me is at this point, I've got a fiduciary responsibility to
grow this business. The biggest and best anybody's ever freaking seen and i'm not look the problem is i don't need the
money the scariest thing about me is i don't fucking care if i lose i don't care because
i'm going to come back 10 times stronger and i'm a scary competitor because i've already got the
money so anybody that wants to go head to head just just, I don't have to do dirty things.
I will not do dirty things.
I don't need to lie, cheat or steal.
But I will tell you this, people are going to know who we are and they're going to come
work for the better company.
And I love what you just said, Victor, more than anything is you went to, you were a big
fish in a big pond, but you went to a company that had people come here and they go, man,
you got more meetings than anybody I've ever met had people come here and they go man you got more
meetings than anybody i've ever met you've got a thursday meeting you got more training you got
ride-alongs you've got you keep track you've got competitions and i'm like if you don't like that
if you're like a lone survivor this is not for you buddy you're gonna know i remember being in
a meeting and one of the guys skipped up and it's a hundred and something people in his meeting and
and leland's like oh there's anything you guys want to say blah blah he's the guys gets up and there's a hundred and something people in his meeting and Leland's like,
oh, there's anything you guys want to say, blah, blah, blah.
And he's like, he gets up and he says,
I think this place is like a fucking cult.
And Leland says, yeah, it is a fucking cult.
It's a money cult, so why don't you sit your ass
down?
It's a money cult.
We're fucking make money here,
so why don't you sit your ass down? And everybody's like, oh,
shit.
Leland is a special
type of person, and anybody that knows him
that's worked with him, and I know a couple people just say,
you're not going to find anybody that operates
at that level. He's done it for so long,
and what he told me when I sat
down with him, he gave me a book.
He told me to read this a while
ago. You're going to know it.
It's somewhere off here,
but it's called,
uh,
double your province of six months or less by Bob Pfeiffer.
I don't know where it is,
but he said,
you read that book time.
It'll change your life,
but also,
and he's got a COO.
That's just next to him.
Real nice guy.
Uh,
Tony,
is it?
Yeah,
I can't remember.
I got there after I left.
It was Frank DeMarco,
Frank,
Frank.
Yeah,
Frank.
And then,
you know, he's got a CMO and he's got, he's, and he's got this really skinny CFO that's a cool dude.
Really nice guy.
Anyway, they're all sitting four next to me, and they all start talking.
They go, you want to know Leland's secret?
Is he's here all day Friday, Saturday, Sunday.
You can catch him there.
He goes, he's got a passion for working.
And I've got to tell you this.
He might have sacrificed a lot. I know he's got a passion for working and i gotta tell you this he might have sacrificed a
lot you know i know he's got kids but i gotta tell you when you love what you do now listen
there's no sacrifice for not making it to a soccer game of your kids or seeing them play
the violin for the first time or me but when you love what you do it's not work and sometimes you
gotta pinch yourself and say you gotta leave you got kids you got a relationship but if you love what you do it's not work and sometimes you got to pinch yourself and say you got to leave
you got kids you got a relationship but if you love it that much and picture one thing you said
to me and i don't mean to put you on the spot but i'm going to because that's what i do is you said
you love to teach more than you love to run the business and i don't know exactly i know some of
your employees might watch and i know you absolutely love taking care of them and giving them
as much.
But you also said and you don't look, I'm not trying to put you on the spot like a little secret.
But you said I love helping more at a time because you made so many mistakes and you get more out of it.
And see, I don't like training as much as people.
I like telling them my story, but I'd rather be working in the business on the business.
But in the business, i share these stories that i
love the people that want to listen and come through for tours but you have a passion to teach
i've got a passion it's a different type of passion explain that to me maybe it could be
misconstrued so i love my business right i love growing the business i don't so like the you know
the day-to-day the beating down every number and not like you know yes like
at this point like i have to know that i know that stuff but what makes me excited like i and i
communicate with people all over the country and i have partners that were in other states and when
i give them an idea right and they go run a bit and i watch to take off for them but it's like
an idea of our i've already been used i implement i mean i would say go try this right and i watch
and they come back to like dude it's it's double my revenue or it's done this or that. I'm like, I just get excited. I've
always been like that my whole life. I feel like I'm a giving person and I try to help as many
people as I can, but to say, I want to be part of the business as long as it's, it's talking about
growing, but if it's like the day-to-day mundane stuff, like I have to hire people for that. I
just, I have bad ADD. I don't like that little stuff, but I like, I do love my business and growing it.
But if I came down to it,
I said,
Hey,
I can never go help anybody again.
Or I can have this,
this giant,
I can have this billion dollar business,
but I can never help anybody again.
Then I wouldn't take the billion dollar business.
If that makes sense.
It does make sense because you think I like to run an Excel sheet and say,
Ooh,
look at this.
But I think no,
hell no.
I got things that I'm working on here.
And when I get in,
in the morning,
I'm working on rehash for sales and service upsells on the way to the
house,
internal text messages to remind my employees about recruiting,
getting an appointment scheduled because we're having a hard time with
that yearly update for their tune up.
And then I'm also working on geo fencing,
all the supply houses and
tiktok for recruiting and i get to whiteboard and create a whole process and then go over with my
team cross things out erase stuff fix them and then ab test it and then see the results that's
me is like that's fun that's fun but i get to do this all day every day and then i get to talk to
people and say how to work they go dude it dude, it was great, but here's what I would switch.
Okay, awesome.
I'm going to give that out to three guys.
Dude, it worked, but I didn't do this.
Boom, I'm going to give that out to 10 guys.
Then all of a sudden you say, we just moved the needle 30% in one month.
Like that shit just makes me go.
It's just, it's so much fun.
And people are like, dude, you like to whiteboard.
I like to whiteboard everything.
Like to me, it's like look i got a freaking marker
here i whiteboard all the time because you know i'm always working on processes i'm always working
on the pieces and mixing them up and saying let's figure this out and i gotta tell you
the exponential growth you know when we sat down for dinner yeah and joe was nice enough to take
us out and um i think i got bitted the most by way, I don't know. But he did a charity raffle and maybe I got the most, who knows. But what's so fun about this business is the math equation of acquisitions. That to me is like, it starts to get really, really fun when you can see that if there's businesses out there right now, Victor, they can't get supplies, they can't get human beings to show up to work,
they can't figure out if they're profitable.
They've got 25 calls coming in a day,
but they can't book them
because they don't have the employees
and the employees they do have, they're working to death.
And I'm like, man, imagine if we work together
because I got things that you don't
and you get 25 calls a day without even marketing.
And the things that I was showing you, I feel like it's taken me years to kind of figure out but dude you gotta understand
man the only other thing i know that that's worth more than what we're doing is software could be
worth 20 to 25 times revenue but it takes long and i'll tell you this, the one thing I do know,
well,
I know this,
my thing's recession proof and software that I know it takes,
look,
you got Apple that was able to grow.
You got Microsoft,
you got some software companies that have done pretty well.
And to have like FinTech and to have those things,
yes,
they're great,
but there's such an opportunity cost.
I mean,
look,
you're going after something right now and Service time is a 12 billion dollar company but what happens is when
they start buying out companies and become the leader you know that you're always going to get
challenged when you're at the top you know that no matter what facebook's got challenged before
it's interesting what is your thought about uh software just overall whatever you want to talk
about with i mean obviously there's always going to be somebody new and better, right?
And someone's going to figure out the, I think it's in the next couple of years that the AI is what's going to dominate our industry, right?
Because everybody's coming in, private equity is coming in.
They don't know the business.
They want the business to run itself, right?
And they want to run it with as little amount of people and make as much profit as possible.
So someone is going to create the software that's going to fill that hole for these private equity companies.
And it's going to be able to eliminate overhead with human beings, right?
Because eventually, at some point, they're going to try to cut out as many humans as possible.
Because that's how you make money.
So I think that's going to happen.
And it might be service-tight.
It might be another software.
It might be something we've never even heard of, right?
But somewhere already right now, Apple. It could be service tight. It might be another software. It might be something we've never even heard of, right? But somewhere already right now,
Apple, Amazon.
I know that, you know,
Fixify has got a great product they're coming out with.
And I've seen these other ones
and there's like someone eventually
is going to figure out that thing
where they can obviously bring a competitive cost
to the owner of the business
or whatever the equity firm
and also going to figure out the AI part
where they don't need as many people.
Because if you can cut out the amount of humans that you can operate a business and if you only had to
focus on the sales guys the service guys and the installers and you didn't have to have office
staff okay well now we got now we have something that matters right well and i just think about
this that's amazon do you not think okay right now every time google guarantee gets a phone call
they're measuring the time it takes you to get to that job. They're all geofencing your phone.
Amazon, all these things, they're collecting data.
Okay?
All they're trying to do is when you collect a lot of data, you start to build what's called significant intervals on a bell curve.
And they'll figure out, see, they're always going to need us.
But the problem is it's going to become more commoditized.
The multipliers and the profitability are going to go down.
And I know that sounds scary to a lot of people, especially the Ken Haynes, the Ken Goodrichs, the Lelands.
But they're going to commoditize this industry and they're going to make a lot of money doing it.
They're going to always need us and they're going to understand the true cost.
You see, for 90 percent of the guys out there, it's going to be a great thing because they're actually going to get paid more money.
But the big companies, we're going to take a little bit of a haircut because now they're going to be able to automate.
They're going to know who the best guy is, how long they take to do this job, and how to get it done.
And guess what?
Their plan has always been to Uberize the industry.
And if you guys don't think they're collecting a ton of data right now, you don't think that garage doors, okay, just so you know,
LiftMaster, which means nothing to you,
but it's like the mother of all
for garage door openers,
they got bought by Blackstone.
That's one of the biggest hedge funds in the world.
Now, what do you think they bought?
Technology.
Now, what do you think they know?
LiftMaster knows every time
your garage door has an issue,
they own the data.
They could send that easily to Amazon.
They pay them for it.
They are coupled together.
Do you not think that builders are starting to build houses without garages because of autonomous
cars.
And you could use that house, that area of square feet.
So I want to just tell you, we're going to be changing a lot.
And those people that are listening right now that think they got it all figured out
and nothing's going to happen and nothing's going to change.
Right now, Google two years ago could book
a job for you for a hair salon and change the date and it sounds better than a normal human
so i don't even want to hear it what happens is they can't because the government will have to
subsidize right now because so many jobs would be lost so right now it's going to slowly evolutionize
into different industries i think it happens a lot quicker in HVAC than garage doors because there's so many,
if you know, you've got a five ton unit, you're already starting to see them for sale everywhere.
Right.
You could see it in HVAC, but you still need to know how to keep that other room cold.
You still got to know how to fix it.
You still got to know how the heat pump.
I don't know anything about HVAC, but, but I do know that it's happening right now, right
before our eyes.
And if it doesn't scare you,
then you're an idiot.
Oh,
a hundred percent.
This is a conversation.
So,
you know,
I talked to you when we were in Vegas about me partnering with these other
HVAC businesses,
different States and stuff.
And it's in conversation I have with them.
I said,
look at,
and some of these guys,
they,
you know,
they're thinking,
Oh,
I'm going to go hang around for the next 20 years.
And I'm going to get paid in 20 years. I'm like, well, you probably don't have 20 years to get paid. If you don't figure it, they, you know, they're thinking, oh, I'm going to go hang around for the next 20 years and I'm going to get paid in 20 years.
I'm like, well, you probably don't have 20 years to get paid.
If you don't figure it out now, you're going to probably pass on your opportunity.
Right.
Because that little, your little $3 million shop money now, but a couple of years, it's not going to be worth that much.
They're not going to need that, that little guy.
They're going to look for only for the big guys.
Right.
It's the same thing.
So we have this time right now.
Like, if you're going to go, you need to go now.
Right.
You need to go.
Here's my same thing. So we have this time right now. Like if you're going to go, you need to go now, right? You need to go. Here's my best tips. And I said this in the beginning of my, um, and I want to hear, I want to do, I know we went over, we're going a little
bit over. So here's what we're going to do. We're going to go speed round. So first I want to start
with this. I'll give you my tips. You give me yours. Number one, you get on accrual accounting.
Number two, you get audited by one of the big four. Number three, you find out every fricking
hole. You hire a consultant to come in and find every single hole. Number four, you get audited by one of the big four. Number three, you find out every freaking hole. You hire a consultant to come in and find every single hole. Number four, you make
sure you got executives that could do well in front of a private equity company. Number five,
you get all your KPIs dialed in and you get contracts for every one of your employees and
you create an equity incentive program. And what I would do that is it would hold everybody in for
the next turn. Those are some quick, simple little things you can do. And I hopefully talked over a lot of people's heads. I just gave you my whole playbook, but
Victor. Just systemize your business. I mean, you pretty much said it all, right? But the main
thing is just systemizing everything, making it to where when someone comes in, they feel like
they can run it without you, right? And if they can't run it without you, you don't have a business
to sell in the beginning, right? So the guy wants to be able to come in and be able to duplicate you
without you having to be there so systemize everything right and then
obviously make sure you have the right financial controls in place and obviously make it and pay
attention to that bottom line because that company when someone comes around and they don't give a
shit that you spend all this money this year on training and all that stuff so you got to make
sure you've been as always right so always make sure you have those profits before anything else
and if you do just one simple comment on that,
if you are putting money into greenfield growth or anything else is make sure
you catalog it,
right?
Make sure you've got a controller that knows how to put those as ad backs
and say,
we decided to invest this much in consulting and this and that those are
called ad backs.
And that's still profit.
All right.
Next speed round.
You blew up fast,
man.
Tell me,
what did you do for marketing to get that big that quick?
What seemed to be the big ROI?
How did you freaking create that many jobs overnight?
For me, it was social media.
So for us, I found out I can get leads on Facebook
for about $20 a lead.
And the big thing was figuring out how to bridge the gap
from getting that lead actually to getting it converted.
And that's what we were able to figure out.
I automated my Facebook ads.
I took my booking rate from about 30% up to 80%.
So I was getting in front of more people
and then figuring out a way to get them qualified.
So that's how I grew my business so fast with social media.
That's crazy.
Just Facebook?
Just Facebook, yeah.
So Facebook was our number one ROI on everything
for the first years of business.
You don't know a guy named Peter, do you?
Peter was, he was a competitor of mine for my market agency but he didn't peter lewis yeah i know peter yeah
okay i know he used to get a ton of hvac leads all right what about recruiting what's the best
way to recruit you got to be the recruiter so if you're the business owner you have to recruit so
you got the first thing you got to do is make sure that people have heard about you, right?
You want to get your name out there.
And then if you're a business owner, you want to go through people, you already like you
go through your employees, but don't say, Hey, reach out to your friend, ask them for
your friend's number.
Let me call them because if the owner calls, it's a far more powerful thing.
You know, one of my competitors, right?
He's the most competitive competitor or recruiter right now.
He'll text people 24 hours a day, seven days a week to try to recruit them.
And it's just super powerful coming from the owner.
So obviously I'm using your friend that we met and I met in Vegas to be
using it to do some recruiting.
But if you want to recruit guys,
you better get your ass maker.
You should be smiling and dialing and making it happen.
Yeah.
Jody,
I think he's got a website now.
Rapid hired that info.
He's helping me on so many fronts,
dude. The guy understands software on so many fronts, dude.
The guy understands software.
Anyways, so you got recruiting.
You got that.
You got that.
Let's go.
This is the last few questions.
If someone wants to get a hold of you, they want to reach out.
I know you got your Facebook group.
Tell me, how do they get a hold of you?
How do they get training?
How do they get a part of your Facebook group?
What's the lowdown on that?
My biggest one I'm on is Facebook.
So you can look at my name, Victor Rancor. I have a web run a Facebook group for home service owners.
So it's called Home Service Heroes. And if you go on Home Service Heroes, there's about 2,500 of us
in there that are like-minded people. If you guys are looking for sales training or to try to figure
out where you can buy my app, it comes out. It's callservicehero.com forward slash app. The app launches in a couple of days and I think it's going to change the way that people
do business. What are three books you recommend? Is there three killer books that just changed
your life? This one's not the best book. It was one of my books I read when I was,
when I was finally ready to jump on my own. So I liked who moved my cheese.
You guys probably read it. It's an amazing book. Yeah. Quick read, right? It's not, it's not it's nothing long obviously i have the e-myth e-myth was good and then my buddy judge
he's gonna get to that he wrote a book called scale with speed and it's all about how to scale
your business at fucking light speed so uh he uses a lot of culture building stuff like that
so if you guys do come to my bank if you're that he's the opener then he has uh he runs a business
growth training called burn the ships in texas
this guy knows how to build a fucking culture he's actually the one that created carrots so
he's my partner there the guy knows how to create a winning culture and get people want to come
forth there yeah he scaled a marketing agency to 140 million and exited but he's also scaled i
think five different hundred million dollars this is just took one public recently too his name is judge graham judge like judge
yeah like judge judy j-u-d-g-e and then graham g-r-a-h-a-m judge judge okay yeah no i got it
okay and then um last thing that i do here and i appreciate you coming on by the way if anybody
wants to come to service hero 10 times event i know it's coming up in a couple weeks how
do they do that uh if you'd like to come to the van you can you can dm me i'll actually give a
discount to anybody that's listening to tommy's podcast i got a couple of general admission
tickets left so if you guys reach out i will get you guys a discounted ticket let's say
fuck it i'll do i don't have that many left but if you guys want to come i'll do a ticket
a general admission for 1500 bucks if you guys want to come, I'll do a ticket, a general admission for $1,500 if you guys want to come. I think I have about 20 tickets left.
So Grant Cardone, he's an amazing guy.
I can't wait to see him.
You know, the deal is, as I really respect the guy over time, you hear a lot of Gary V's and Grant Cardone.
Those are two of the guys in Tony Robbins that I respect.
And I love what he says.
And I'm actually, I read the 10X rule because my sister told me to read it like five,
whenever it first came out, I just think it's great, man. And, uh, last thing I do is go ahead.
No, I was just going to say, it's not even as bad, just the, the, everybody that's there, man,
you being there. Right. So I was just in a room with you a couple of weeks ago. And the first
time I finally met you and I've been following you for a while, man. And then you get to,
and you can be around people that are are hungry entrepreneurs and they just start talking right like when we
start communicating it's different and when you guys are you guys never been around that
and you get to see how these guys think and how they have been how much they would like my help
i think it's just powerful being in a room with that many fucking millionaires i think in that
room will be probably close to 300 people that are millionaires, all of them. So everybody there has got money.
You get to kind of rub shoulders with people that have been there, done that, and pick their brain.
You know, it's interesting because part of this mastermind, I pay $100,000 a year for everybody there that does $100 million or more.
And I found a couple of people that I latched on to that are teaching me shit, dude, that literally is going to grow me exponentially.
And I'm like studying them. And they don't know this, but in the background, I'm basically
stalking them.
And I think it's important because I'm finding new ways to get to the top that no one else
is doing in the home service space.
So it's pretty cool.
Last thing I do, Victor, is I want to give you a chance.
We talked about a lot of great things, really hit a lot of things on this podcast.
I want to give you a chance to give us
some really, really good takeaways, maybe some take action today, but whatever it is, I'll give
you a few minutes. If it's a story, if it's something to go do today, if it's just whatever
you think that we might've not touched upon or talked enough about, I'll give you the floor.
And I can't stress this enough. If you guys are young, you guys coming up is build your personal
brand. And I tell people this all the time and how powerful it is, right?
I was a guy doing oil changes nine years ago for $6 a fucking hour.
And quickly over the last nine years, you know, pretty much over the last three years,
I've been able to build a personal brand.
So if you guys are going to go start a business, use social media, use that stuff and bring
people along for the ride.
Post a lot on your social media, post about your business, talk about your business, have pride in your business, give back to your community and post
about it. Because what happens is you're going to get this community of people that follow you and
watch you grow. And then they want to be part of you. They want to refer your friends. So it's the
most free marketing you can do with social media. So I think that was big with my business.
In my first two years of business, I gave away 28 free systems, right? And I came out
of my own pocket and nobody helped me. I just, anytime I ran into a situation where someone
really needs it, I gave it away for free. And I started talking about and bringing it up and
magically all of a sudden, everybody wants to do business with me because that's the kind of person
I am. And I think that obviously I'm not telling you to give away 28 free systems because that
takes a lot of money, but I'm just telling you, just build your personal brand and take everybody
along for the ride. And you'll be surprised how much your business grows as opposed
to like, you know, the other day I saw somebody post and he's like, I really need you guys help.
My sales training company is going out of business and in there, he's never, I looked
on his social media. There's nothing about his on his social media about his sales training business
or that he does sales training or any of that shit. Even in the post, he doesn't talk about it.
I'm like, dude, no one's getting that shit you've never even talked about. So talk about it all the time and magically you'll watch
your business grow. You know, what's funny is this podcast right now, I guarantee you half the
people watching this, when this comes out, it'll get 30,000 listeners for the month. But right now
there's 26 people on love right now. And probably quite a few of them. I know personally that might not even be in the home service space, but they're getting something out of it.
And I second that.
If you guys are not thinking about getting more involved in the community, telling people what you do, telling them how you can help.
But also, you know, little things like Victor, what's your favorite restaurant around your local one?
I love Mastro's.
So there's a Mastro's, right mastro's right so master does pretty well already
but maybe you find a little bit more mom and pop one and you say listen here's what we're gonna do
give me a local one so there's a there's a pizza shop so it's called magic mike's pizza
magic mike you can dress up like magic mike out there so you go to magic mike
and that's my topic you get the owner and you say dude how are times and he's gonna go man we're barely holding
on or whatever and you say here's the deal hopefully magic mics has done a good job doing
that and you say listen i want to buy the next hundred pizzas i want to do a story and i'm going
to do a podcast we're going to do a giveaway and you go on and you say listen i want a big
billboard on here this says what we're doing and want, the reason I'm telling you to make this famous is because I want other people to act like me.
So here at A1 Garage Rooms, this is what we believe. We believe everybody should be contributing
to their local shops. And you give away a hundred pizzas and you say, dude, give them to me for 15
bucks instead of 22. Cause you know, I'm going to get this thing as social. Everybody's going
to share it. We're going to have a contest. So many little ideas by helping the people you love the most and the competition. And listen, we are so slammed
right now. I can't even take on jobs. I mean, it's crazy. I love it. And we're hiring as fast
as we can. I love it. But listen, dude, you got the world by the balls, man. And I got to say,
dude, you came up quick and I really appreciate you coming on. And listen, if you need anything,
I appreciate you letting me speak at your event. I'm going to kill it for 45 minutes.
I'm going to come with nunchucks and spears and we're going to be cashing
checks and breaking next.
But I got to tell you, I've never seen anybody come up like you did.
And you know, the thing is you listened, you appreciate it.
You tell people that you love Leland. You tell them where you came from.
You don't lie. You said April, May, you were dying and now you're killing it.
I appreciate your honesty and you're going places and I'm going to watch you succeed left and right
in the middle, man. So keep up the great work. And I mean this, I really appreciate you coming
on and dropping some, some great advice and bombs on here. So thank you. I'll see you at the top,
big dog. And I'll see you in a couple of weeks, man. Tommy, thanks for having me come on. And
like I said, everybody that's listening out there, like I said, me and Tommy ain't nobody special.
We just worked our ass off to get what we got so if you're out there
put in the work and and it's pay off in the long run so don't give up yeah don't give up thanks
guys i'll see you guys hey guys i just wanted to thank you real quick for listening to the podcast
from the bottom of my heart means it means a lot to me,
and I hope you're getting as much as I am out of this podcast. Our goal is to enrich your lives and enrich your businesses and your internal customers, which is your staff. And if you get
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Leave a quick review.
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Make it four or five sentences.
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And we're telling everybody do to become a billion dollar company. And we're just,
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