The Home Service Expert Podcast - How Amazon's Customer Obsession Inspired a Home Service Revolution with Zac Dearing

Episode Date: February 2, 2026

In this episode, Tommy Mello interviews Zach Deering, co-founder of Mantle, an AI-powered sales platform for home services. They discuss the evolving landscape of home services, the importance of crea...ting a shopping experience for homeowners, and how technology can enhance sales processes. Zach shares insights from his background at Amazon and McKinsey, emphasizing customer obsession and the need for simplicity in business. The conversation also touches on generational differences in shopping behavior, the role of financing in home services, and the future of AI integration in the industry. 00:00:00 Cold Open 00:00:06 Title Sequence 00:00:26 Show Notes VO  00:01:11 Intro Into Interview 00:26:02 Insertion 00:27:04 Interview Resumes 00:57:45 Outro

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Starting point is 00:00:00 69% of homeowners today are looking for a price online before they have anyone out to their home. 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. Before we get started, I wanted to share two important things with you. First, I want you to implement what you learned today. To do that, you'll have to take a lot of notes, but I also want you to fully concentrate on the interview. So I ask the team to take notes for you.
Starting point is 00:00:39 Just text notes, N-O-T-E-S, to 888-526-1299. That's 888-526-1299, and you'll receive a link to download the notes from today's episode. Also, if you haven't got your copy of my newest book, Elevate, please go check it out. I'll share with you how I attracted and developed a winning team that helped me build a $200 million company in 22 states. Just go to elevate and win.com forward slash podcast to get your copy. Now let's go back into the interview. Welcome back to the Home Service Expert. Today is going to be an amazing day.
Starting point is 00:01:15 I got Zach Deering here. He's an expert in AI sales consulting law and operations. He's based at a New York. He's the co-founder of Mantle. He's ex-McKinsley and ex-Amazon. Zach is the co-founder of Mantle. an AI-powering sales platform, helping A-Jack plumbing and electrical companies turn proposals into true buying experiences that close faster and grow ticket size. Before Mantle, Zach held leadership roles across Amazon McKinsey, and Liffick, worked as an investor and venture fellow and taught ninth grade algebra through Teach for America.
Starting point is 00:01:51 He founded his first business at 12 years old, later co-founded a startup out of MIT and built both for profit and nonprofit or nonprofit. organizations from the ground up. He also received his JD from Harvard Law. Known for blending data with human judgment, Zach helps operators simplify complexity, modern ICAL systems, and build teams that scale without losing trust. There we go. How are you brother? I'm great. You did your research. We got a lot here, man. We go to we do all the research and really this one's pretty cool because I've been pretty excited about this to implement this product into A1 and you made it happen. Mantle heard about it from Arangainer and our conversion rates have flown up anywhere from 10 to 15% on door sales and the average ticket is about $1,500
Starting point is 00:02:47 higher and the technicians are raving about it. I did an interview yesterday with a technician out of Milwaukee that made Pinnacle and he's like, man, Mantle's a game changer. And I love it because it helps us eat the fees for the financing. And the greatest news about that for my marketing hat, what it does for me is that allows me to market the plans that I used to not have to want to market because the dealer fee was too high. Same as cash till 2029. That fee is very, very expensive. The dealer fee for any type of, whether it's good leap or any of the other finance companies,
Starting point is 00:03:25 now I could use that for marketing. And I'm glad to pay the fee because it's built into the cost for the client. So the clients are paying that fee. So overall, it's been amazing working with you. You got probably one of the best backgrounds I've ever read out loud. Tell us a little bit about your journey, how you got here and where you plan on going. Yeah, yeah. Well, first off, thanks for having me on.
Starting point is 00:03:51 It's been great working with you and Luke and Matt and the entire A1 team. I think you're an organization that a lot of people know a lot about from the outside. I think the thing that I've really been sort of taken aback by is the humility and the desire to learn and grow. And I see it throughout the entire organization. And so I just want to take a moment to really call that out. And I think it's pretty special. We got an amazing team. And those guys I'm super proud of.
Starting point is 00:04:16 And there is a lot of, they're very humble. And you couldn't ask for a better team, man. I hope we're a rider dies for life. Totally. Totally, totally. But now to your questions. So grew up in Dallas, Texas. I'm dyslexic, so I actually didn't learn how to read until I was 12.
Starting point is 00:04:32 So law school was an interesting twist on that. As you mentioned, I've done several different things, but the way I got into home services was through my mom. She had several HVAC contractors in her house. She got overwhelmed by the experience. And I got a real window into what it's like for homeowners today to make these really, expensive, infrequent purchases. Case of HVAC, third most expensive purchase someone will make
Starting point is 00:05:00 in their lifetime. Garage door, it's easy to spend $10,000 or $20,000, like really meaningful purchases that historically as an industry, we haven't really thought about it as a shopping experience, right? We've instead say, here's your two options, right? Or here's your one option with a bunch of jargon. And so we're really on a mission to change that. I think it all started by seeing the homeowners experience. And then that traced back to my time. Amazon or one of the things that Amazon, one of the core leadership principles, is really around customer obsession. Yeah. And so what was the beginning stages? Let's talk about what led you to Mantle. So you're 12 years old. You started a business. You got, you have a lot of vast
Starting point is 00:05:44 knowledge from the places you worked. The law degree really helps because there's a lot of legal jargon on these things. But what was the initial, when you started this up, you got a partnership, it was just the online shopping experience is what you guys were thinking about. Yeah, I think initially we started from a pain point, right? Which was my mom and I had this experience and then I've always been pretty curious, right?
Starting point is 00:06:09 I think that's what led to my first business when I was 12 aptly named ZDPCs. I just assembled computers in my bedroom. Like to joke, like, I'll never have as good of an OPEX business because I didn't pay any rent and my dad took me to go buy the computer part. So it was a really, really cash flow efficient business. But I think I've always been curious. And so what I saw with my mom and
Starting point is 00:06:30 my experience was, was it just us or was it the contractors that happened to visit us? And the thing that I quickly learned spending time with homeowners and contractors across the country was this like really homeowners are being sold to rather than trying to create a shopping experience. And that was the thing that came out to us and that there was, these are complex purchases and there isn't really a modern solution until we came around that really thought about how do you create a shopping experience. And so that's really what we're on a mission to do. But I think you could trace it back to the same thing that caused me to start the business when I was 12. It's the same thing that caused me to start this business, which is I'm just a very curious person. That's the best quality to have.
Starting point is 00:07:10 What do you think most homeowners really care about? Yeah, totally. It's a great question. And it's a question that we care a lot about answering. So we actually commission this massive survey of homeowners that have actually bought, right? And I actually shopped in the last 12 months. And what they care about, and I think the most surprising thing is typically not price. 69% of homeowners say that price isn't the most important thing. What is important to them, it's trust, it's quality, it's understanding what they're buying. And it's also agency, right? homeowners, we want to shop, right? We don't want to be sold to.
Starting point is 00:07:51 We want to feel control over our purchases. 100%. Yeah. No, I always say this. I love to buy, but I hate to be sold to. Totally. I got a really good book for you. Okay.
Starting point is 00:08:04 It's called Relevant Selling by Janie Smith. Okay. And they did a double-blind study with 500 homeowners on garage drawers in 2017. And where do you think price came out is the order of importance? I'm going to guess, like, like fourth or fifth. Number nine. Number nine.
Starting point is 00:08:20 Okay. Okay. Do you remember what was number eight? All I know, like, one of the top ones was they cared about who was coming to their home that they were safe. Sure. They cleaned up. They honored their commitment. They honored their warranties.
Starting point is 00:08:33 The cleanup was actually a bigger thing that I would have thought of. But they kept their date. Yep. And my dad always taught me you could do it the best quality. You could do it on their timeline. You could do it the cheapest, but you could never be all three. Really? You know, it's funny when I went to college,
Starting point is 00:08:47 there was a two out of the three was you could either sleep, you could do well in school, or you could have fun. You could only get two of those three. That's a good point. Yeah, because you could have fun, get good grades,
Starting point is 00:08:58 but you're not going to sleep much. Exactly, exactly. Are there general generational differences in how people shop for their home services? There absolutely are, and a lot of you actually see in the discovery process. So one of the really interesting things was we looked at how did you find your contractor?
Starting point is 00:09:15 Would you like to guess which channel today for folks that were actually shopping was the most common channel that they actually discovered a contractor through? Yeah, I mean, I would obviously guess Google. Spot on, 39% was Google. What's interesting is millennials, it was over 60%. And for baby boomers, it was less than 30%.
Starting point is 00:09:35 So you see a real generational divide. Where you see baby boomers, is they're much more likely to have used a contractor that they previously used? It's possible because they've also just bet in the market and they've known contractors for 40 years. So you see the discovery process is different, right, about where they're finding contractors.
Starting point is 00:09:54 And then when it comes to the buying process, there is actually a lot of similarities in what different generations want. Obviously, sort of online pricing and online shopping and price discovery is something that is a little bit more common in a younger generation than the older generation. But here's the reality.
Starting point is 00:10:11 69% of homeowners today are looking for a price online before they have anyone out to their home. So while there are some generational differences, it's also very clear that the modern homeowner, right, they want to be able to shop online and they want to really discover price. Yeah, Marcus Sheridan talks a lot about this. Totally.
Starting point is 00:10:31 As endless customers is give them the information. Yes. Be very transparent. Compare the products. Talk about what you're not good at. And that transparency will lead to more trust. Totally. And I think one of the things that I think we're really on a mission to do is how do we change this industry from historically selling to people to creating shopping experience.
Starting point is 00:10:53 And Tommy, can I ask you a question? You bet. So think about a time that you bought something that you knew very little about, but it was a fantastic shopping experience. Does something come to? I do this. I mean, unfortunately, I probably, I mean, there's anywhere from 20 to 30 packages a week coming, mostly books. Okay. But yesterday, I mean, I'll tell you that something pops up.
Starting point is 00:11:17 And here's what makes a good shopping experience through me. Yeah. I can see a quick video on the landing page. I like it. It's, you know, all of Robert Chedini's seven influences. Sure. Get me. And then I hit one button.
Starting point is 00:11:29 Yep. I hit the shop button. It's a purple button. Yep. And it's like Amazon and my address. And by the way, getting it the same day and next day is not the ultimate thing for me unless it's like something I needed the house. Like I just bought an ankle brace.
Starting point is 00:11:43 I needed that right away. But for the most part, I'll wait. Yeah. But I just don't want to load in. There's some Shopify accounts that you don't even, it doesn't even find your address. It doesn't load your credit card. Yep. Like, and that sucks.
Starting point is 00:11:54 Yep. And here's the fact, Zach, if that happens, I mean, I got a really, I mean, 90% of the time I'm jumping off that site. And they're retargeting me. I'm like, no, you're stupid. I'm not going to take the time. I want to hit, I'm lazy now. Yep. Amazon made us lazy.
Starting point is 00:12:09 Yep. I want to hit boom, boom, done. Totally. So that's what's different for me, but I'll tell you this. I like to see my options and I like to be in the driver's seat. Totally. Like control, options, educated, right? That video, personalized, write your information in there. And it turns out, and this is kind of the incredible thing. I think the thing for contractors to think about, you know, we all know already what a great shopping experience is because we experience it occasionally. And so just think about in your process today for homeowners, are you delivering that? Are you putting them in the driver's seat? Are you educating them? Are you letting them, is it interactive? Is it personalized to them? And I think to the question of what can be done, it's really focusing on those things.
Starting point is 00:12:51 And I think the good news is, well, that might sound intimidating. We each know as consumers what a really good shopping experience feels like. Now, I think the best thing that I really like about it is I work with a guy who's like the goat of all sales. And he started in Achecks, names Dale. and one of his major things is all they're all aware. And one of the biggest problems we have is the husband or wife's at work or they're out there doing something with the kids. And if you're making a $20,000 purchase, you want to definitely get everyone involved in the household involved.
Starting point is 00:13:25 And Mantle makes it possible. And so many technicians have messaged me like, dude, we had both decision makers not at the house going through the same presentation. Yeah. And that's massive. Yeah. Because that saves so much time and the conversion rate goes through the room. Totally. So you're looking at this display on an iPad.
Starting point is 00:13:44 Yep. And the homeowners in control, but they're also, the other homeowner, the him or her is also going through it at the same time. Hey, go back. Hey, I want to look at this. Hey, this one probably makes more sense for us. And you got all the options in there. And then you get to pick the add-ons at the end.
Starting point is 00:14:03 And they're always like, you know what, let's just, if you got both homeowners, it tends, my situation, situation has been someone's always like, no, let's not do this one. We've got to save. Someone's like, listen, this is like, we're not going to purchase this again for another decade. Let's just go and do it the right way. Let's get the lower electric bill. Let's get the better air quality. Let's get this, this, this. But if it's not presented properly, they don't like to be sold it. Totally. Totally. And it's funny, funny you mentioned that. One of your virtual sales team members, Trevor sent me a text message. He's like, Zach,
Starting point is 00:14:36 I just had a one-legged husband was away. This used to be kind of like the death of all calls, right? Because we knew we weren't going to get to a conclusion. And he was like with smart quote and with the remote control feature, we were able to send the link to the husband that wasn't at the home and bring both of the shoppers through the experience, the wife and husband, even though they were in two different places. And then ultimately they signed with basically no discounts. And so I think that's really powerful because we all know that in those purchases, right,
Starting point is 00:15:03 that if you want to stay married or partnered, should probably get that. the other person's buy-in. And so now how do you deliver an experience that gives homeowners the ability to quickly resolve the problem? Because they called you with a problem. And I think it's easy to sometimes forget and lose sight of that. And they're interested in solving the problem. Otherwise, they wouldn't have taken the time to be at home to greet your technician
Starting point is 00:15:25 and to go through the process. It's true. You know, one of the things that we got to do a better job of is that ACHAC does an amazing job. plumbing does a great job is the age of equipment and understanding with service grievance when to go back there. I talk to, I'm not going to go into the company name, but they're massive. They are massive in the Northeast. Yep.
Starting point is 00:15:45 The biggest company in the Northeast. And it's not Erigater, even though he's amazing in Ohio. They said this month, they're turning over 70% of service calls they go into for a new A-TRAC unit. Yeah. And they're closing 62% of those. Yeah. And by the way, all these companies are between 70%
Starting point is 00:16:09 finance. Yep. They're selling it with the finance company. Yep. And I just think about that and I'm like, man, we are just, we're so tiny. We're nowhere near those numbers. It's like we're not even in the hemisphere of those numbers.
Starting point is 00:16:24 Yeah. I mean, to turn over that many qualified leads. Totally. So this, for companies like that, this is an absolute game change. That's why you kind of focused on A-track plumbing electrical, most likely. Where do you see the other big industries coming in? Obviously, we pulled it off at garageers.
Starting point is 00:16:40 We're still in the early stages. We've deployed it in a couple of markets. But what other industries? It's probably a bigger ticket. Yeah, roofing is something we got a lot of inquiries on. I mean, really anything under the home service umbrella, it's probably like relevant for, particularly if there's notably a purchase. Like you think about windows siding, like bath remodel.
Starting point is 00:17:00 It's a little bit of a different motion. But I think in all of those, because fundamentally, like, what is the technology? It's how do you build a shopping experience for the homeowner? And then how do you follow up if you don't close to the kitchen table? Which if you think that, like, garage doors maybe has a low follow-up rate compared to what it could be, like, foundation repair. For example, we were talking about a foundation company. And evidently, like, it's pretty common to have a 20% close rate because a lot of times this is sort of an optional, like, relatively low urgency purchase. And so I really think that there's opportunities across the board.
Starting point is 00:17:33 I would say our focus right now is HVAC plumbing electrical, recently garage door. I anticipate we'll probably get into roofing this year, just given where there's, I think, a ton of interest. You know, a lot of people are talking about chat, TBT, Claude, the different LLMs. You know, from what I've heard from very smart people is we've got about another year. A lot of people are still purchasing off of Google and doing research on the LLMs. What are your thought and take on that? Yeah, I think the data would suggest that people are not finding contractors today on Claude or Chat Chepti, right? 3% going back to that survey we did.
Starting point is 00:18:11 Or Gemini. 3% found it on some sort of answer engine today, right? So they're not finding it today, or at least that today was as of end of 2025. That obviously will start to change. And we are increasingly hearing sort of murmurings of people, right, taking a proposal and running it through Chat Chepti to see sort of. of what they should be thinking about it. I still think it's a relative sort of minority that's happening, but the shift will eventually happen there. And I think that that's where it's even more important, given what the models reward, which is specificity, right? If I go search for how much
Starting point is 00:18:44 is a garage door in Milwaukee, what are the results that I'm getting back? So are you as a contractor putting out the right information that the models will reward and likely show you as a source that you can get that, get that lead from them? You know, this has got to be scared. for a lot of contractors listening right now because, quite frankly, we want a chance to sell face to face. Totally. We want to give you enough information where we're not giving you the farm. Totally. But there is this theory that I predict that things are going to start getting commoditized,
Starting point is 00:19:16 not next year, not the year after, but as things become, and I think more about the OEMs building a workforce around them, because I think the OEMs kind of control a lot. What are your thoughts about the future of the home service? industry, home improvement industry. Yeah, totally. Pretty vast question. I think what is really clear, as you've talked about on the show before and with various guests, is like really home services on the forefront of really being able to use AI for really practical purposes, right? Whether it's dispatching, whether it's call answering and increasingly over time sales. With that said, having a human in the loop will continue to be really important. And so I think the way that we think about it as an
Starting point is 00:19:58 organization is we're not replacing the seller, right? You know, maybe you'll replace a CSR, certain organizations will. But rather, how do you use AI to augment the seller? There are tasks today that sellers either don't like doing or they're not particularly good at doing that we use AI to make it easier for them to do. Classic example is follow-up. How do you personalize follow-up that understands the conversation that's happened that isn't trying to close the homeowner, but instead just bringing them back to the table
Starting point is 00:20:26 with a question or how do you help? give real-time coaching to the seller about their proposal. Hey, you only offered four options. If you would have offered five options, that would have helped. Or, hey, we noticed you did three add-ons. Hey, could you personalize this more? So we really see AI as the opportunity to help augment or assist the seller and really sort of elevate that role.
Starting point is 00:20:49 I think to the broader question, in 10 years, will y'all still be sending a role? Organization still be sending sellers into homes? Probably not. I don't know whether it's 10 years or 15 years, but I mean, clearly the trend is going that way. 69% of homeowners tried to shop online for home services today, right? So there is definitely the interest. With that said, I think it is a gradual evolution. I think the reality, I was talking with someone yesterday, and he talked about how he sold,
Starting point is 00:21:19 actually, someone you know well, Chris Yano, how he was selling yellow book ads even in the mid-2000s, right? The yellow book was still something that you could make a decent. business even 15, 20 years after the internet came out. And I think that's very suggestive of the reality that, you know, Google and in-person sales isn't going to wait tomorrow. At some point, it will, right? But it's going to take a long time. Well, it's, I've always said, it's hard to diagnose a car over the phone. My dad used to be in the transmission business for a very long time. And they'd call and say, I'm looking for a price. And he'd go, anybody that's giving you a price over the phone, without really getting under the hood
Starting point is 00:21:57 and diagnosing every single failure point. Sure. Might be a bait and switch. Sure. And we've seen simple things like it could be a major fuse out. I mean, it could be a timing belt issue. It could be a lot of things causing this. It's just interesting to me that homeowners expect,
Starting point is 00:22:17 I got a broken spring, but there's a system. It's called the whole torsion system. Springs rollers. Well, it's really springs cables, drums, bearing plates, and a torsion tube that goes into that system. The rollers help assist it for a little friction. But everything's rated on a cycle life. So if your brakes are gone, do you want me to check your calipers and your rotors as well?
Starting point is 00:22:38 Because if your rotors and your calipers are screwed up, so you quote on springs, then you go out there and then it still feels like a bait and switch because it gave you a price. And I don't think that's fair for the client. Although a lot of the company's listening like to quote over the phone. And they think it's the right thing to do. to do. And then they find themselves at a pickle. And most companies that I know, especially in my industry, they go to the homeowner every other year. And I'll tell you this, I get clients that call us every single day. And not just one, not just a dozen, but very, very, a vast amount.
Starting point is 00:23:15 And they say, I've had the same company in my house four times the last two years. Can somebody just come fix this thing right? We missed another play for our daughter. We missed another. We missed another. other day of work. We miss another weekend. And I just don't think that's the right thing to do for clients is nickel and dine them for the next 10 years. I've got a ton more questions. I'm going to bounce around a little bit because I've got you prepared a sheet and I've got a prepared sheet. You used to work at McKinsey and also at Amazon. What do the two companies teach you that most funders never seem to figure out? I think Amazon, like the thing that is seared into my mind is customer obsession, right? It was a common practice to bring an empty chair to the table
Starting point is 00:23:56 who is in that chair is supposed to represent the customer. And you'll even see people gesture to the chair being like, hey, is this right by the customer? So I think that's one thing that really stands out for my time at Amazon. And it's really impressive because when I was at Amazon was over 25 years from its original founding, that core leadership principle was still very much embedded. So if you want to talk about a master class in culture, it is that. I think from McKinney. Well, I want to just on Amazon, I've heard that their internal net promoter score is not great. Their internal clients don't feel the love. I've heard they obsess over the true client at home doing the shopping experience, but I've heard,
Starting point is 00:24:36 and by the way, when a company grows that fast, it's hard to keep the wills on and make sure everyone's happy. Those guys work in the factory. But anyways, let's go to McKinsey. Totally. I think at McKinsey, I think the really humbling part was spending time in Fortune 15, Fortune 500 business. is just an appreciation for what scale is like and just how hard it is to scale businesses, right? Like a five-person business is fundamentally an incredibly different animal than a 50,000-person
Starting point is 00:25:04 business. And I think it can be easy if you're working smaller organizations to be like, hey, why does this 50,000 person organization struggle, right? Like they have 50,000 people seemingly, right? They should have all these resources, but that coordination and effort to get everyone on the same page is no small thing. So how do you build the mechanisms in place to make sure that you are constantly communicating to every stakeholder? It's a tough feat, man. I got 1,250, and it's something I struggle with.
Starting point is 00:25:36 And it's something where we did a survey. It's a blind survey, so it was anonymous. And a lot of people felt like they didn't have enough impact in things that would affect their work. Sure. And it's, I always say if I was Henry Ford, and I think he probably did a great job of this. is talking to the guys on the assembly line to get it better. Yeah. And it's something where it's a leadership thing. It's a lot of discussions on how do we get them involved in the conversation.
Starting point is 00:26:03 Hey, I hope you're enjoying today's episode. Quick question for you. What happens when you get in a room with contractors making over $100 million who've already achieved what you want and figured out solutions to your challenges? I've watched over 6,100 contractors come to freedom. And so many of them ended up doubling their goals because they finally saw what's actually possible. One guy told us it reshaped what I think is possible.
Starting point is 00:26:28 Another said it made us reach for greater heights we never thought possible. That's what happens when you're around $100 million plus owners showing you what's really possible in this industry. Listen, Freedom 2026 at Mandalay Bay in Las Vegas, October 26 to 28 is going to be even better. We're finalizing speakers right now, so I can't share more just yet, but keep an eye out for.
Starting point is 00:26:51 updates from my team. If you want to get in on the pre-sale, check out freedomevent.com now and grab your ticket at the exclusive pre-sale price by February 15th. That's freedom event.com. Now back to the episode. Why do most FSM tools fail at the moment that actually influences homeowners decisions? Yeah. I think this is a question of what you're building for, right? Like I think most FSMs are building for the contractor, which totally makes sense. Right. Field service management, do you get the right tech to the right place and do you book the call. With that said, the moment that matters most, that sales moment, it's a different, problem you're solving. You're actually trying to create a shopping experience for a homeowner,
Starting point is 00:27:30 which is fundamentally a really different task than how do they make sure that A1 gets the right person to the right place. And so I think a lot of it is just like focus and what are the rewards or like job that it's trying to accomplish. You know, I think as this product continues to take market share and I'm glad we're a part of it because I think there needs to be a lot of training around how you start the sales. I think it's going to change the sales process. I think we've got a pretty darn good one, but I still think I've talked to a lot of technicians. And what's nice is we want to get in the, we want to get in the battle with you. We want to say, can we do this? Can we do this? Can we do this? Now that's what's tough.
Starting point is 00:28:18 about what you're building is because I'm sure everyone's going to have their two cents. Totally. But it's the larger clients that will influence. You know what service tend did a great job of and not so great? I had our on the podcast since 2017. And he said, I just wish he goes, Tommy, we spent hundreds of millions of dollars to build the best product that will work for $100 million plus jobs. And we took their SOPs, their processes, their payroll.
Starting point is 00:28:44 And we applied it so the small guys could have a chance. But then you get a five. technician company that comes on and they want to completely not they want to go against the tide of everything we built that's a tried and true way and they said we don't do it that way and they try to custom rig this software to do what they used to do rather than saying we're going to make some changes in the way we train we're going to make the payroll changes that everybody wins and very few people are willing to make that change and we you did have to work pretty hard for our process because it's different but I think it's a wave of the future.
Starting point is 00:29:16 What are some of the constraints that you think are going to have going into smaller businesses? Yeah, totally. And I think it's great. And I think there's a lot. Like, I definitely feel like we're building on the shoulder of giants with all the work that Service Tyn and others have done before us. And I think it's really impressive what they have built as an organization and what they've scaled. And so I feel very humbled that we get to sort of build on that foundation.
Starting point is 00:29:41 I think a lot of it is just really understanding who your product is good at. at serving today and also sharing who it isn't good at serving, right? And so today, if I'm honest, like, who are we good at serving? HVAC plumbing electrical, increasingly garage doors that are primarily using service tied in and that probably are 10 million plus in revenue, right? Just that is sort of the reality of where the product stands today. I think to the $2 million shop, the product isn't a great fit for it today. We will evolve and we will improve the product to sort of meet those smaller organizations that have different needs. But I think it's just being really clear about where,
Starting point is 00:30:21 about what are the ingredients for people to really succeed with your product and sort of what are the limitations. You know about the conversation I had with R.O. When I couldn't get on the service titan. I think I've heard a little bit about it. You basically just like begged your way. Yeah, I steamroll them. I basically said, dude, we're 17 men.
Starting point is 00:30:41 He goes, we're not made for graduate. Yep. my father and Valle's father weren't in the garage door business. We built this specifically. You understand discipline. Yeah. You understand focus. You understand the power to say, no, I said, I understand all three of those things.
Starting point is 00:30:55 But if you bet on us, you'll never have to turn back. Totally. And it was an hour long conversation. He goes, don't make me regret this. He goes, I'm sending out 10 success managers. They send one out to a big company. And, you know, I think that changed the history of the company. It changed that by far, we were the big winner there.
Starting point is 00:31:15 I will never say, look what we did for service day. That allowed us to expand like crazy, have the KPIs, have attribution. And so I never once was like, man, I'm glad, you must be glad at me. Now you did an IPO. No, I'm like, you did this for us. We won 95% of that. So I've definitely, I have a lot of gratitude for that. You know what's interesting is Mantle shows, the data shows that Tuesdays are the biggest sales days.
Starting point is 00:31:42 What does that reveal about buyer psychology? Yeah, I think maybe buyer psychology and also just like scheduling, right? Like, and it's interesting, and you probably even see it in your own data where it's like... We see Tuesdays are the best. Yeah, Mondays are a little bit sleepy. On the weekends, interesting, a lot of people are like, oh, weekends must be great, which is, it's true, right? You're more likely to have both buyers, and historically, that was limitation. Obviously, we're changing that, right?
Starting point is 00:32:03 If a buyer's away, the reality, though, is the lead count is just lower on Saturdays and Sundays. I think Tuesday, it's like you're starting your week. you have a lot of opportunities at bat and you're not getting as distracted by the weekend and as things progress. And so I think it is a fun thing that we get to look at and the power of what we're building is the data and what that means we can do for our partners. And I like to say, like, we don't have customers, we have partners. And we're really in it with each of the contractors that we work with. And so if you go again to the question from before of like, hey, what do others miss? I think it's missing that perspective.
Starting point is 00:32:39 Like fundamentally, if we do our job well, like, I want it and where we stand today and where I hope to be in the future is that when we walk in the office of any of our contractors, that it feels like we're a familiar face, right? Like, if we just happen to be in Phoenix and I happen to stop by the A1 office, like, Zach, great to see you. Like, thanks for stopping by. Like, that's the level of partnership and connectivity that we strive for. You're going to have to really, it gets more difficult to. the company grows. Totally. You're going to have to start asking yourself this question, who not how.
Starting point is 00:33:15 How do I get the right people on the bus, as Jim Collins will say, how do I continue? You know, when my brain shifted towards marketing for great people to come on the bus instead of getting great clients, everything started to solve his self. Sure. Because so many people out there that are probably listening are like, man, I got these three killers. I got a good person in my CSR and dispatch. I got a really good GM. But imagine if you had a team of all A-plus players,
Starting point is 00:33:45 like Steve Jobs was able to attract, and they wanted to come work for you. Well, how do they do that? Because you focused on putting the stuff out there that at least show them there's a better opportunity for them, which very few people do. Totally. And I think that's going to be your biggest...
Starting point is 00:34:02 I won't say it's going to be a problem, but that should be your biggest core, like going after, is building the team and continuing to keep what you built. Because you're out here today in our headquarters. Yep. And you've flown out here a lot. Yep. And Zach's only one person.
Starting point is 00:34:19 And so you're going to have to delegate to elevate. And I'm glad you're part of this because we'll work very closely together to continue to make this product better. And obviously, the more you scratch my back, I mean, this is only the beginning. I mean, luckily, the people listening, no, I'm not a bullshitter. if I use you and I'm finding success, if somebody comes to a shop tour, I'll just show them that this works. One other thing I want to just mention is
Starting point is 00:34:44 when I was in the bar industry, I was a bartender, I was a bar back, I was a bus boy, you name it. I remember the owner said to me, he goes, Tommy, we know Thursday, Friday, Saturday, and Sunday mornings are good with football. He goes, if we can make one other day, great. That's where we make all the money.
Starting point is 00:35:01 Yeah. That's where, that's the profit day. Yeah. And every bar is kind of busy on Thursdays, Fridays, Saturdays, and Sunday morning. And the reason I mentioned that is if you could make Saturdays and Sundays very, very profitable. Sure. And what we're working on is advertising. We love working weekends.
Starting point is 00:35:21 Cost out at no extra charge. Because if I could pack those days and make those massively profitable, you know, by the way, everything's cheaper on those days. Yeah. Most guys are closed on Sundays. Yep. So, of a sudden, PPC and social media, all the other stuff, they feed us better on those days. And I think what that really gets at, both for your team members and for homeowners, is choice, right?
Starting point is 00:35:47 There are certain people that want to work on a Saturday or Sunday so they can have Tuesday and Wednesday off. And there's certain homeowners that also want to be able to shop on those days because it's convenient for them. And I think more than anything, and something that I've seen in your organization, something that we feel really strongly about is how do you, you empower homeowners with choice? 100%. I mean, if you read
Starting point is 00:36:08 what should we do by Joe Chrysara, it's not on this shelf, but all he talks about is giving options and the data to back it up. And I think five options are better than three. There's all kinds of studies around that too. But also, there's some people, depending on how hard the options are to understand,
Starting point is 00:36:28 it can confuse people as well. So it's really, there's a lot of science and psychology behind the options and then the pricing that you could make them. 100% of grand. It reminds me of two things that we often think about. Price is only the most important thing if you don't understand anything else, right? And so if a homeowner is telling you that, hey, you know, this other company's $500 less
Starting point is 00:36:50 expensive, it means they don't really understand what they're purchasing, which means that there was an education gap somewhere along that journey. So I'd ask you, Zach, what you said? 500 more. If you're the homeowner, let's just do a little roll. Let me ask you this. If we were the same price, Zach, let's just say everything being equal, which one would you choose?
Starting point is 00:37:13 I mean, you're here right now, and so we could get it done. So, yeah, I'd be inclined if everything was the same price, if you're going to be a $500 discount, great, let's go forward. Well, if the prices were the same and you choose us, and you obviously know we're different companies, you've done some research. We've been a business two decades. You can see the difference in the parts we carry. But why would you go with us? So I don't want to lead with that discount. I just said all things being equal. And hopefully you'd say, well, I did the research. I looked at your BBB. Yeah. I know you guys do background checks. Yeah. I know you run warranty calls the head
Starting point is 00:37:51 of new clients. And so I'd ask you to sell yourself. Sure. But you're not the real client. I mean, this is not the perfect scenario because you don't have both bids. Yeah. Yeah. I want you to just literally, I want to hear you destroy the other company. Sure. And say, so obviously, it's $500 worth everything you just said not being done properly. Totally, totally. And I think that a lot of people miss that. A lot of people make it about price.
Starting point is 00:38:17 And you'd be surprised during my orientation I do for three hours. We talk a lot about a lot of people say Oklahoma and Tulsa are not as good as Phoenix. Or Reno is not as good as Orlando. I hear this every day, and then I'll take a top 10 technician. We'll send them in any market, same price book, and they'll get the exact same. So I always say we live in the United States of America. Yeah. If you've told me to go to Mexico City or something, I can't guarantee it would be the same.
Starting point is 00:38:45 Sure. But we always put those fallacies to bed. You're an expert in shopping online, and we hear a lot of other challenges today being tricky, macro environment lead flow being down, which it is consumer confidence, I believe, is going up right now. What do you feel like is the state of play in home services sales today? Yeah, I think it's a bit of a tale of two cities. There are fewer leads coming in.
Starting point is 00:39:18 They're more expensive than ever, right? It's not uncommon, right, to spend $500 or $1,000 to get a replacement opportunity. Prices, particularly in HVAC, but across the board are significantly more expensive. for equipment than they were five or six or seven years ago. And so against that backdrop, there are the folks that are succeeding, and the way that they are doing that is through creating a shopping experience. Are you meeting the homeowner where they're at? Are you personalizing?
Starting point is 00:39:48 Are you showing them different options? Are you putting them in the driver's seat? Or are you slapping down three prices on a sheet of paper and a bunch of jargon, right? Those are sort of the two things, and I think a lot of people are having a hard time. I mean, look at HVC, for example. Shipments are significantly off, right? You'll see some reports to say up to 49%. Yet, there are contractors that are succeeding in spite of it, and what are they doing?
Starting point is 00:40:15 They are creating shopping experiences. Yeah, you know what's really frustrating is when I go online and I don't really shop for Rolexes, I got one. but a site that gave me the information, I know it's going to be expensive. It's a Rolex. I'm not expecting to find a deal, but I hate it when you got to click get a bid. You got to put your email in and someone's going to contact you.
Starting point is 00:40:41 And it's like, listen, I know why they do that and I understand the science behind it. Just get them on the phone, close them. But it's so much more transparent. By the way, the LLM machines love the transparency. And I think it's going to give a really strong. edge over over that. What do most contractors get wrong about sales today? Yeah, it's a great, question. I think fundamentally at its core, they don't really put themselves in the consumer
Starting point is 00:41:09 or homeowner shoes. We talked about it already that as a consumer, you know what you want. You want to be educated. You want to be in the driver's seat. You want it to be personalized. And a lot of contractors don't actually build an experience that executes on that, right? I think the good news for contractors out there is you know what great looks like, right? You might not have seen it at home services, but you know because you recently bought a gun or a car or something else somewhere and someone did a really fantastic job. Think about what they did and then think about how to bring that to the garage door you're selling or the water heater you're selling or the generator you're selling. You know, I can't keep, I can't stop thinking about just this customer obsession. And it's not something I feel like we've done an amazing job on.
Starting point is 00:41:57 But it's something that I think everybody that's listening will be forced to start doing more. And that customer obsession. And it's kind of not fun to listen to customer complaints and the one-star reviews and doing secret shoppers. But if you really focused on those things, imagine how great your company, would become within six months. Totally. Totally. And here's the reality.
Starting point is 00:42:21 You can either focus on it or you cannot, but either way homeowners are having that experience, right? So the only thing may be tougher if you really think about it than focusing on it is thinking that if, thinking about what happens if you don't focus on it because it's just going to expand an increase. Yeah. Yeah. It's definitely something that I think most people need to start taking more seriously.
Starting point is 00:42:45 How can top performers balance transparent prices? without commoditizing themselves? Great question. And I'm sure there's a lot of people out there based upon this discussion that are wondering this. I think what it really comes down to is, are you educating? Are you building value? Like, what are you doing to stand out from all the Dan's in the vans and to make sure the homeowner understands what you are going to do?
Starting point is 00:43:11 I think a consistent challenge is a lot of these home service purchases are really different than anything else we purchase. If you buy a car, does that matter the dealership you buy it from? No, it's the same car. It's built in the same factory. However, if I buy a garage store or if I buy a water heater, really the only thing that matters is who installs it, right? Like the equipment is such a small piece of the final experience.
Starting point is 00:43:36 And so I think educating homeowners on that is really, really important. And that's, I think, the way that you can do it is, if you are clearly articulating the value, then you can be transparent about pricing. Because again, price is only the most important thing if you don't understand anything else. Yeah, the whole thing is how do you prepare the presentation that educates through the process before the price is given?
Starting point is 00:44:03 Instead of just a big pop-up of the price, there needs to be some education to provide value. And where I'm pushing our company, our partners, and really the industry is how do we get rid of the word? presentation. We don't want to be presented to, right? Like, imagine if someone came in and just lectured at you for 20 minutes on any purchase, like, would that be how you want to buy it? Well, I'd want to be involved. Like, I'd want to be like, listen, show me the different colors unless I have an HOA. There are a lot of choices. I mean, we broke the
Starting point is 00:44:35 price book because there's so many different combinations. So there is something that needs to be out there, but get me involved. Absolutely. And it is always just interactive. Imagine a personal buyer, right? You go into some high-end department store or high-end gun store, and yeah, there's a thousand different guns in there. But what are the five or ten guns that make sense, given what you've shared, right? I just did a gun experience for my Bree's father. And I said, we walked in and they said, a handgun or rifle. And they pointed to the rifles or the handguns. And he asked a few questions, but he didn't really get involved. Yeah. And Ryan, Rees stepdad, figured out what he wanted. And that was it.
Starting point is 00:45:15 And it was really, really great. Except I had to buy it because he's not in the state of Arizona. And it took like half an hour for the background. It's just a pain in the ass. It's the worst part of the experience. Old different thing. But yeah, I think what it really comes down to is like, how do you really create a shopping experience versus a presentation? I really, really like that.
Starting point is 00:45:35 And I know for a fact, but Aaron and myself has experienced as people, like, I had a technician call me. He's like, dude, there was no way this. person wasn't going to buy a three star. But then they looked at the pricing of the five star. And it was so close because of the psychology we did with the pricing and the payment structure that they opted to do the five star. And if that's happening all day every day, that starts to add up to be a lot of money. Totally.
Starting point is 00:45:59 And I think the really incredible thing about it is it's good for A1, but it's really good for that technician and for that seller, right, who now get to bring home an extra few hundred bucks from that job. And talk about now, like, you already have a culture I know that really, pride itself on being a phenomenal place to work, if you're able to increase sort of average sales per job run by, let's say, 20%. That also means that you're able to pay your team effectively 20% more, right? And that becomes really, really powerful to make sure that A1 stays the premier place to work. To work. Yeah. I interviewed a technician yesterday. He's out of Milwaukee, and he made
Starting point is 00:46:38 Pinnacle and they had lost a baby, which is, which was devastating for them. Absolutely. And then his dog, his best friend died. And he's part of our dream manager program. He got through it, but he said, you know what? We use in vitro and it's not cheap. Yeah. December 26, we're having a baby.
Starting point is 00:47:02 Oh, my gosh. And he goes, things are turning around. And he goes, Tommy, my average check is order $6,000 a week. Oh, my gosh. And he goes, I love this business. Yeah. But to get through that is something pretty special. And I love that because this allows us literally, why does financing make sense?
Starting point is 00:47:19 And I've learned this from Darius livers. You get to help all customers, more job security, higher conversion rate, higher paychecks. It's just there's like this whole spiral of things that happen when you get higher conversion rates and higher tickets. And you can help every client. And they genuinely say yes more often. And it just really comes down to giving choice, right? Like, I think often as an industry, we conflate thinking that someone doesn't want something with actually just not offering the choice, right?
Starting point is 00:47:47 Like, are you offering it and are you doing it in a compelling way? To be clear, if you just ask someone straight out, oh, are you going to finance this? There's a lot of judgment that comes with that or a lot of people can receive that in a judgmental way. Instead, if just the initial price you show is a very accessible $144 a month. With the finance options. Exactly. There's five reasons why people don't buy with financing. Number one is pride.
Starting point is 00:48:10 That I look like any financing? And some of them go into, we've always heard cash as king. Sure. And we don't like to be sold to. When you walk in the Nordstroms, the girl walks up and says, could I help you find something? No. We've had a previous experience with financing.
Starting point is 00:48:24 But all of us, my grandma gave me your 96 grand am. I went to a payday loan to get back to Michigan to $2,200 bucks out. It was at 25%. And it was a horrible experience. So there's all these reasons why we've learned don't do that. But when you find out it's an investment that's going to improve your home's value, it's different than buying a Harley and losing half of the value when it drives off. This is actually going, the garage door is 268% return on investment.
Starting point is 00:48:48 When we talk about investments and ROI, that changes everything. That's something I want to make sure Mantle continues to build is return on an investment because garageers happen to be number one. Absolutely. Why does ruthlessly Why does ruthless simplicity matter more as a company grows? Yeah, it's a great question. At the end of the day, consistency is really king,
Starting point is 00:49:14 and the more complex things are, the harder it is to be consistent. Most organizations above 10 million in size, right? Most contractors, they actually know what a good sales experience probably looks like, right? And they've probably gone through training, and they probably have some SOP. the question is, are you able to consistently deliver it? And what's the death of consistency? Complexity. There's this wonderful book called Insanely Simple that was written by the guy that evidently coined the name for like the IMAC, right, close into Steve Jobs circle. And the thing that Steve Jobs spent
Starting point is 00:49:47 a bunch of time on was simplicity, because here's the reality. Complexity is easier than simplicity. Simplicity takes work. Candidly, like, as a leader, one of the things that I talk a lot of We talk a lot about internally is how do we try to keep our product as simple as possible while making it really powerful? It's true. I'm thinking about my one-on-one forms and they can be a little bit complex. I really want to just jump in as we finish up here to the product. So it's called mantle. Why is it called mantle?
Starting point is 00:50:24 The mantle in a home. It's where you put the things that you're proud of. It connotes warmth, right? It's the centerpiece and really in our goal, our aspiration. And it's a way to aspiration. We're working really hard every day to get there is how do we make the experience of shopping for garage door or an HVAC system be really delightful. Be like a warm experience for the homeowner. By the way, it's M-A-N-T-E-L, just like the Mantel in your house.
Starting point is 00:50:49 What do you think the impact overall of using Mantle would be for most companies if they were to get on it? Higher average tickets, higher close rate for companies that we've worked with, reliable comfort, and Seymour, Indiana, they saw 48% lended increase a close rate and average ticket. And that is after taking out the increase of equipment prices year on year. So there's really, really durable impact that can have on a business.
Starting point is 00:51:14 And that's the financial, right? I have to mention, well, it eats the finance fees too. Totally. The dealer fees. Totally. And the non-financial is you have a more consistent, better homeowner experience, and you make it easier for your sellers
Starting point is 00:51:28 to really focus on the things that they're really phenomenal at, which is building relationships, advanced system design, rather than doing a bunch of more menial work that isn't stuff that they're passionate about. I got six close-out questions, so we'll play speed round. Okay, let's do it. Give me your favorite books that really shaped, it could be the Bible, it could be the E-Mess,
Starting point is 00:51:50 it could be a fiction book, but just three books that really, really affect the way you conduct yourself and your path was like, based on these. There are many that come to mind. I think ones that are at the top of the list for me, the hard things about hard things that Ben Horowitz, basically a book about entrepreneurship
Starting point is 00:52:15 and that fundamentally the journey that we're on is hard, and that's okay and the struggle is real. That's part of it. So that's thing one. Book two never splits a difference. I think it fundamentally changes the way that I think about the way I think about negotiating. I also really like that Chris Voss starts with a zinger about the Harvard negotiation program,
Starting point is 00:52:35 which while I was in law school, I went through it. So I appreciated him, him sort of calling it out. And I think the third book is a book called Bud Not Buddy. The reason why it's so meaningful to me, it's about a little boy, and his dad was a jazz musician, was it's the first chapter book I ever read, and I was 12 when I read it.
Starting point is 00:52:53 So I'm dyslexic, it took me a while to learn how to read. Reading is now a really important part of my life. And so emotionally, a real connection to that book. I love that. If somebody wants to learn more about Mantle, and I know you're very, very disciplined, you want to go after companies that have enough opportunities to let the product work.
Starting point is 00:53:17 What's the best way to reach out? Yeah. You can go to U.S.E.M-A-N-T-E-L.com. So use Mantle.com. You can drop your information that way. and also reach out to me directly, ZAC, Zach at Use Mantle. And again, I think to that point of like, who are we a good fit for today? This will evolve over time.
Starting point is 00:53:38 It's HVAC plumbing, electrical, garage doors that are really think about it as like sort of 10 million plus in sales or revenue. What's one question you wish more people ask you? What I'm grateful for? What are you grateful for? like all of like the love and support um this journey that i'm on as i know you can relate to is really intense and it means for the people that i'm closest to my mom my girlfriend my sister others i don't show up in the way that i maybe wish i could or as often or i'm stressed or whatnot and i think that
Starting point is 00:54:16 support and like the pride and the encouragement and the understanding is something that i'm eternally grateful for something you should do every day wake up and say what you're grateful for. And finally, what are you most excited about right now? I am so excited that we get to play a part in fundamentally having home services create shopping experiences. Like, while it seems sort of simple, create a shopping experience,
Starting point is 00:54:49 there is so much opportunity to be so few contractors do it today. And the things that we have are on our roadmap this year to help deliver on that, some stuff that I know you and I will talk about later. I'm just so excited that we get to play a part in that and just feel going back to the other topic, very grateful. It's awesome, man. And by the way, I know a lot of people are probably thinking, man, this must cost an arm and a leg. But the cool thing, what you've done is you've systematically put your fee into the pricing.
Starting point is 00:55:19 And it's not as much as people think. So it's not going to change your conversion. It's going to improve. so the fee gets eaten very easily, the client actually pays for it for a better experience. Exactly. It also means our interest and incentives are aligned with our contractors,
Starting point is 00:55:36 which is why we say we have partners and why we're also particular about sort of the making sure someone's a good fit. Because if it's not a good fit for you, not only is not the right thing to necessarily partner with you, but it's also not in our interest. And I think incentives are really important.
Starting point is 00:55:50 And it's such a good incentive because literally if you're not successful with the tool, you don't pay. Exactly. Exactly. No, it's amazing. And I think you guys really figured out a lot. And I'm excited. I'm really excited that me and Aaron are so close because when you find something, I'm a little bit different. Like I want to share things. And I'm like, we got to elevate the industry and the whole home service home improvement industry. But Aaron tells me certain things that he won't tell a lot of people to and vice versa. Like if I find something and I'm like early on, I'm like, listen, I'm still. kind of figuring this out, but you should look into this. And I appreciate the friendship of Aaron and guys like Yano and Ishmael. And there's a lot of them, Ringy and Hoffman and there's so many good people in our lives.
Starting point is 00:56:37 And they continue to want to help Chris Hoffman's another one. And I want to see you blow this thing up. So I'll be a big fan. You've proven yourself over and over again. Not only is a great product, but you guys are great people. So anybody, here's the deal, guys. all I would say is do a demo. See if it's a good fit.
Starting point is 00:57:01 I mean, like I said, the criteria is kind of high, be $10 million plus. If not, really focus on getting to that number because this will change the game. And Zach, it's been a pleasure, my friend. Thank you for being in Phoenix. I can't blame you. It's better than New York. It is. There's no snow on the ground.
Starting point is 00:57:17 It's like 10 degrees back home. So thanks for having me. All right, guys. Hey, listen, if you enjoyed this podcast, do me a favor. or leave a quick review and share it with a friend. That's how we grow. We don't do any marketing on this podcast. I appreciate the listeners out there.
Starting point is 00:57:33 I hope you have an amazing month and you dream big. You write down your goals and you have accountability. I'll tell you this. If you stay consistent, you got big goals, it'll happen. Appreciate everybody out there. Hey there. Thanks for tuning into the podcast today. Before I let you go, I want to let everybody know that Elevate is out and ready to buy.
Starting point is 00:57:51 I can share with you how I attracted a winning team of over 700. employees in over 20 states. The insights in this book are powerful and can be applied to any business or organization. It's a real game changer for anyone looking to build and develop a high-performing team like over here at A1 Garage Door Service. So if you want to learn the secrets to help me transfer my team from stealing the toilet paper to a group of 700 plus employees rowing in the same direction, head over to elevate and win.com for slash podcast and grab a copy of the book. Thanks again for listening and we'll catch up with you next time on the podcast.

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