Building a $1,000,000 Business for a Stranger in 69 Minutes

0:00This is Philip. He gave up a high-paying job in tech to start a garbage collection business. Last year he lost $150,000. So Philip has a wife and a kid and another baby on the way. And if he doesn't fix the business model fast, he'll put that growing family at risk. Hi, my name is Philip. I'm the owner of Garby Disposal Services. We do residential trash, recycling, and yard waste collection. Our revenue is 642,000. Our net profit is negative

0:24151,000. That's the wrong side. It is on the wrong side. All right. Our net margins are negative 23%. We've been in business for a little under 2 years and we currently serve 2,500 customers. So what's the problem? We need to become profitable. We're not utilizing our assets enough. Trash is a very capital intensive

0:43business. It will not. One of our trucks is at half utilization. Routes are not super efficient. We've had lots of unexpected repairs. We need more leads. Scale up our door-to-door efforts. We need to scale up our meta ads efforts. Profitably though. Mhm. And we need more conversions on the HOA side and we need to increase our route efficiency. So a lot of things we need

1:04to do. So many things. Why is solving this important? What happens if you don't solve this? I'm definitely the thick of my Rocky cutscene right now where um I left my high-paying job at Amazon as a software engineer to start this cuz I thought it was a great opportunity. Yeah. And I I've been working 16 hours a day, 7 days a week for the past 2 years with really little to nothing, actually

1:28negative to show for it. Yeah. And I have a wife and a child at home and my wife is actually due in the next 6 weeks, which props to me. So. I need to make sure that I'm able to provide for her and my daughter and uh the new baby, especially as you know, my

1:45wife won't be able to work. So. It's really crucial that we figure this thing out sooner rather than later. I think we're really close because Mhm. by my estimations, we 3,000 customers is going to be that critical mass point where we're going to start making some money. Mhm. So, here's my promise to you, which I don't normally do. By the time you leave, you'll feel absolutely clear on what you need to do in order to be

2:06profitable. All right, so I'll I'll stay as long as it takes to make sure that you're good. Okay. All right. Okay. All right, so who do you help? Yeah, so we have two types of avatars. 50% are what we call scatter. The other 50% are HOAs, and there's two different types of sales processes for these two

2:22types of customers. Yeah. What's the Is there a Is there a difference in in in like home value or income in the scatter versus HOAs? Are HOAs tend Do they tend to be nicer than the other ones or We've had some HOAs that are lower income, for sure. Yeah. All right. And then we have some scatter customers that are much higher income. That scatter group is staying out switching

2:42to be an HOA. Yeah. Typically, it does correlate with income. The HOAs are higher income. In general, right. I think there's going to be a big strategic decision that we're going to have to make they're probably not expecting. And it's around it's around who the avatar is. So, we'll talk more about that. The second thing is going to be how you

3:02acquire them. So, how do you help them? Okay. So, we have two different types of services for two different customers. So, our scatter customers have once weekly trash, recycling, and yard waste collection. Most don't have an existing contract, so we can just get them set up and start service even next week, but typically the beginning of the month is what we

3:21do. Then our HOAs have two service options there. So, they can either have once or twice weekly trash collection. Most of them opt for the twice weekly trash collection. Yeah, 80%. So, they're on three or five-year contracts usually, and so we wait for the end of those contracts for us to be able to bid. reach out to find out when the end of their contracts are, and then you just have to put them in a calendar

3:43basically? Yeah, Excel spreadsheet. Yeah, okay. Yep. Yep, so once those are up for bid, then we start to then we just calculate the price and everything, and then we often the low bid will win unfortunately. That's just the way of the game. That's what I want to talk to you about. Yeah. So we'll we'll get Okay, let me ask one more question about the the slide before which is who do you help? So of homes in your area do you know what percentage of them are scatter versus kind of like contained within HOAs and like kind of off the basically off the board until they come

4:13up? In my service area the there's a very large majority that are HOAs. Okay. Yeah. That is interesting. Do you have any idea what percentage? I don't know but I can just see it on a map and Just if you guestimate it for me it's fine. Um 70%. 70. Okay. Okay. Are there a lot of other competing trash services on the scatter

4:34side? There's one big one that's really causing us to reduce a lot of our prices right now. Yeah. We're going to We're going to We'll We'll deal with that. Okay, got it. Okay, let's keep going. So give me the the money stuff. How do you make money? So for scatter customers we charge $29.67 a month which is billed quarterly at $89 and as an intro offer we offer 3

4:54months free. That's not all in one go. It's just on the third uh excuse me, second, third, and fourth invoice. Yeah. And for our HOA customers it varies pretty widely. It really depends on you know, the home type whether it's a town home or a single family home. Single family home with a big a lot of families are going to produce a lot more trash and then we have to pay that at the

5:15landfill. Um and so it also varies depending on the number of units as well as the proximity to our current route. Um and they're actually all on a monthly billing schedule. But But the scatter ones are on a monthly billing schedule too, right? No, they're billed quarterly. Oh, quarterly. Excuse me. Got it. Got

5:31it. Got it. Okay. Yeah, I You price it You price it monthly. I got you. Yeah, exactly. Okay. Cool. Okay, so how do you get customers? We have four different channels through which we get customers. So we have door-to-door and I currently go and do We're about 300 a week. I knock on 300 doors. And uh my close rate is right around 26% and we hired a

5:52What's your door open rate? Door open rate was I don't have that ready. Just rough. I believe it was around 30%. Is it really? Yeah. Dude, so you knock on 12 doors, you get a sale. Yeah. You're so chill. Yeah. You can just like you're like, "Hey, I got to get lunch." You're like, "Give me 2 seconds." You just like knock on 12

6:12doors and you buy lunch. I'm not the best sales guy, but yeah, I mean I can even sell. So Okay. Yeah. Okay. I There's There's some things that we're going to do in the offer that I think is going to help us out. But okay, so door-to-door, $50 commission per sale. That's what you're paying your

6:24current sales guy? Yes, exactly. And he recently started with us 3 weeks ago. Got it. And he's how many deals is he doing a day? So he's been getting better and better, but right now he averages right around five. Five a day, I mean it's not a bad It's not a bad gig. And he'll just keep

6:39getting better, right? Yes. Like yesterday he got seven. That's awesome. Yeah. That's good. That's really good. That's very exciting. Okay. Now, you pay him 50 and he's collecting less than 50? No, he'll He's a a contractor, so he just gets all the 50. No, no, as in for what he like He's collecting less than 50, but you pay him

7:0050 for getting the sale? He collects the 89 for the first invoice. Okay. For the first three quarter or for the first three months? Yep. Okay. You said that it was You said it was month two, three, four is where they're getting their free month. The quarter two, three, four. So they get one month on quarter two, quarter three, and quarter four. Okay,

7:21got it. Understood. Okay, that's fine. Okay, so let's walk Let's walk through the So I understand the D2D. Do you have percentage breakdowns on these between which ones what in terms of how many are coming from door-to-door, how many coming from paid ads, how many coming from outreach, how many coming from referrals? No, I don't have those numbers.

7:36Rough estimate. Yeah, I mean recently I'd say 50% have been coming from door-to-door cuz I've really been pounding the pavement, quite literally. Yeah, yeah. And then we leave cards there and stuff, and then people will sign up after Yeah, I did see your door hanger got 1.2%. Yeah. Super interesting. Yeah. Yeah. Okay. Let's Okay, we'll we'll we'll keep going. Okay, so paid ads,

7:55you're spending 600 a month. Yep. Yeah, we have Meta ads we run, 600 a month. That gets us HOA and scatter customers. But they're marketing we're we're targeting scatter customers. And we also do cold outreach, so cold email. I exhaust that list pretty quickly. And then I I also have started doing in the past 6 months

8:14handwritten letters to members. Yep. 100%. And then we also have referrals for our scatter customers. And though for each referral they get one free month of service. So, I'll just say this right now. If you have, call it, 500 HOAs, which represents 70% of the market, it's not a cold email play. So, that's where it's the handwritten card, personal gift, drive up. It's like you have 365 days, it's

8:41like go to two a day. You know what I mean? And obviously you're going to have the ones that are due, you know, with their own whatever the renewal is. And so even if they're on three year three year cycles, 500 divided by three, so it's 150. So you go to one every other day, or you decide to do one day a week where you visit seven, and it's like you are 100%

8:57up to date if you just did that. Yeah, I think there's some there's there's opportunity there. Okay, so and then referrals. Yeah, referrals for our scatter customers, when they refer their neighbor successfully, they get one free month of service. Okay. We also fast track them after they get 10 referrals, and we just give them a

9:14free year at that point. Cool. Does that get a lot of people? Not as many as I'd like. I I don't think I've been good enough about nurturing referrals, but I have ideas. So, how many do you have What's your sales velocity per month? Okay. Yeah, so we get total average leads is 217 per month. We close about 72 of

9:32them. It's good. Which is a 33% close rate. And is that when you see leads there, is that from Meta primarily? A lot of them are organic, so they'll see our cans and then How so? Yeah. And do you have like QR codes and things on the cans? No, we don't. Interesting. That's interesting. Well,

9:48Yeah. I'll write that down. Yeah. But yeah, they'll see our cans throughout the neighborhood and be like, "Everyone's switching to your service, so I might as well switch, too." Yeah. They Yeah, that's they just call in. And so our average vote for HOAs is usually two leads. And you provide the bins? We do, yeah. Do you have a specific color, or do they

10:06have to be a certain color? Yeah, I think it helps with our branding. No, but so they do have to be a certain color? So they can provide their own if they want. Okay. Most people just want our bins. Okay. And so we provide we provide a trash and recycling container. All right. I have so many ideas. Average per month you get two HOA leads, you

10:23close half your HOA leads. That's great. And those are somewhat inbound, or is that from the outbound efforts you're doing? Yeah, those will we'll start with the outbound and then we often times I'll reach out a property manager. Yeah. Or community manager, rather. And then they'll say, "Hey, not interested right now." and then they'll reach out later. Got it. Okay, heard. So you've got 1,000

10:42scatter, 13 HOAs, 2,500 doors. Okay. Let me Give me all the other numbers, unless you think there's anything that's important here. HOA customers are more likely to convert in spring and summer. Okay. Just that our churn is super low. But I think that that might change if we increase prices cuz we haven't been as

10:59aggressive for increasing rates. Yeah, I got you. Yeah. Okay, yeah, cuz I do have I have a bunch of questions on gross margin, lifetime gross profit, and churn. Yep. Yeah, so our our revenue is 642,000 as mentioned earlier, negative 151, gross margin 8%. Um net margin negative 23. So how's your The gross margin seems

11:17off. Yeah. So how is that How is it 8%? Cuz it can't cost like if you're charging $29 a month, it's not costing you $26 per month for each incremental add. So that was this past year, and this past year was rough with repairs. Yeah, the $100,000 in Yeah, just for one truck. Like, that's not even all the trucks. Like, it was

11:38pretty excessive. Brutal. Yeah. Okay. Yeah, so blended CAC of $67 with a blended LTV of $1,300. And is LTV like like lifetime revenue or gross margin? Gross margin. Okay. Okay, that feels better. What's annual retention? Or monthly churn, either way. Uh it's at 0.4%. Nice. Nice. Sick. That's really good. Okay, so and then you've got marketing at $1,000 a month. Is that it? You If

12:05that includes door-to-door? Yes, marketing with door-to-door. That's actually we since we just started that guy, that's going to be increasing Yeah, way more, obviously. If he's closing seven, that's three, you know, that's 350 right there. Okay. What else you got? So, our numbers by customer type. So, 50/50 for our revenue. So, 300,000 for our HOAs, and then um we have a CAC of $1,200 with an LTV of 23,000. And an LTV

12:31to CAC of 18:1. And our gross margins on this are 23%. And we have a total of 13 of these customers. And the reason the gross margins are off there compared to what was last year is because I'm going based on, you know, backing out some of those costs that are one-off. One-off costs. And then for the scatter, we have 300,000 in revenue and a CAC of $51 and LTV of 1,000. 21:1 uh LTV to CAC and gross margin of 26 to 40%. The reason I did that range there is because right now it's at 26, but once we get efficiency, it's we're very easily going to get to

13:0840. Yeah. Yeah. Yeah, you can also raise prices a couple dollars and say, "Look, we go 10% we add three bucks." That's true. Yeah. Yeah. Okay. Yeah. Let me see the ads. So, we have a total ad spend of 7,500 with a cost per click of $2.12 and total clicks of 3,500 with total sales of 153 and a CAC of 51 63 with an LTV of 1,000 just like the other ones

13:35and then LTV to CAC of 20 to 1. What stops you from just spending 70,000? A lot of it is our our cost per lead goes like crazy crazy high because it's such a small area we're marketing towards. I'll tell you why. But, okay. When I was doing it, I could be doing it wrong. Um, but it was just it was doing everything

13:53stuff right. You I feel like I'm doing everything wrong. No, you're good. You're good. We'll get there. Okay. So, meds, I got this. These numbers are good though. I get You're saying that it skyrockets at after a certain point. We'll deal with that. Do you have any other metrics or creative to show? I have the cold outreach. It's kind of skewed a little bit because it's so low for our our cost per lead because it's all all the data. Um, but this is for

14:19email as well as the direct mail. You're just not valuing your time because you're the one doing it. Yeah. Yeah, that's right. Yep. So, yeah. I mean, $12,000 to be a 700 to 1. Yeah, let's do more of that. Yeah, it only cost you $174 to make, you know, $12,000. And you got nine more HOAs in the

14:33pipeline. We do. Yeah, I'm A lot of them seem very interested. close half, what happens to the business? The business grows substantially. Yeah. Okay. This sounds chill. It sounds pretty good. Okay. You know, so what's really interesting about your business is that we have two key decisions that we have to make. Decision number one is what avatar we're going to focus on. Decision two is what channel we're going to focus on to get them. I think the direction we go in will depend on you, but you might

14:58be surprised by which way we go. Okay. If you had a wave a magic wand, what things give you the most heartburn right now? Not being able to Obviously, money. Yeah. But, what's the what's the indicator prior to that? Like, is it like if people paid you $200 up front, that would change the

15:14economics of the business dramatically? Like, is it simply not stop getting leads? Like, I'm Like, that's I just want to understand that part. Yeah, it's more about offsetting some of the upfront costs. This is what I want to solve for. Which is I would like to have the most scalable acquisition channel we can that can get cuz also you said it you're like you spend $7,000 even in a local area, you're not even getting close to tapping. How big's the the market overall like on a you know, 10 20 mile

15:40radius? Yeah, it's pretty big. A few million people. Yeah, right. I mean like you're not even close. So like I would love to see spend at like 7 $10,000 a month on the Facebook side. And then probably another 5 or 10,000 a month on PVC which will have super high intent and have different metrics around it, but we'll get there for

15:59us to solve the problem for good. We just need cash in the first 30 days to be greater than your cost of goods sold and CAC fully loaded. Right. So do you know what that number is? Like what's So let's ignore CAC for a second. I guess we have 50. We can use that as a placeholder or 67. We want to be bullish or bearish. So $67 CAC and then what's it cost to kind of like onboard someone

16:26and kind of like get them going? I do that all myself so I don't I mean If you paid someone and you and the bin was you had like fully fully bake it in cuz we want to scale past you. Right. Yeah, so to deliver all the containers for you know, let's say like 200 customers it'd be about

16:43$500 to pay someone. So that's two $2.50. Yeah. per customer. Yeah. So that's not big. So when I say so you you know I'm going to roll with this where it's like okay, if it costs us $70 if we made more than 70 on the first transaction which you do what's what's something like what's stopping? Is it just that like you can't get more leads and then it just and then

17:06it because you're at 20 to 1. Yeah. Right? And you're at least more than one to one on the front end. So like why like why not? Is it just you just can't as soon as you spend more it just to zero. Like So, yeah, the issue is is that we have fulfillment those months after that we still have to cover. So, like they pay for the quarter in the first month and then we have to pay for fulfillment in

17:27months two and three. Uh-huh. Which is completely it costs roughly like if we get them all that number. That would be for fulfillment for the fully that's what I'm saying cost of goods. So, give me the fully loaded before you get the next payment. Got it. Yeah, it's okay. So, um for each customer on the Easter rods

17:43$14. Or per pick up per month, right? So, it's $14 and you're going to pick it up three times. Right? We have three pick ups per week. Yep. Wait, hold on. It's 40 It's $14 per month, right? Yes. Okay, $14 per month and they're paying quarterly. Yes. So, it's times three, right? So, it's 42 bucks in costs for the first month of delivery. When I say delivery I mean

18:11like fulfillment, right? And your CAC is we'll call it $70. Right. So, if we get upfront cash over call it 120 bucks you could be good to go. Right. Well, then let's solve for that. Yeah. Okay. Sorry I had to pull it out of me. No, you're good. It's I mean it do That's what we're here Okay, cool. Let's

18:37come over. Let's Let's break it out. Let's figure it out. What order I want to do this in? I think we need So, I think what we're going to do is I think we're going to go avatar. I want to get clear on this cuz I think that's super important. Two is I actually think we're going to go offer next. We have to figure out

18:57like how we're going to you know, do it. Mhm. Uh you know, facilitate transaction. And then once we know that, then we can do acquisition channel. And then I think we're going to go a- a- ads. And then we're going to go sales process. We'll do some funnel funnelitics. I think that's it. I think that's all we need to do. Okay. You're at that in that stage where like I like having one avatar, one channel, one product up to a million dollars or more, right? And you're kind of you're right there, right? And so you have two avatars and

19:32like five channels. Pretty much. Right? Yeah. And so you feel spread thin. This is me just hearing you out. And so what I want to solve for is we have to make this decision between HOA and scatter. So if you could just do one, which one would you do? I think HOA is a better opportunity.

19:53Okay. I'll tell you I'll tell you why I don't like either of them. Okay. And then I'll tell you why I like both. Okay. All right. Yeah. So the reason that I don't like HOAs I never want to have a commoditized service where I get into an auction. Because it's always just going to be race to the bottom. Now, the reality is that that's not going to

20:11change. And so it's like what business are you really at? Right? And so the business that I think you're really in is the efficiency business. So fundamentally like if you if if 70% of the market is owned by HOAs and they continue to glob more and more, you know, more of these houses continue to glob together then it's kind of an in uh eventuality, right? That that

20:30happens. So figuring out the HOA offer, I think, makes sense from a future-proofing perspective. But the strategy of the business has to be geared towards because it's the only way you're going to beat the other players. Because I agree, I think they're going to commoditize you and I think they're going to make it lowest lowest bid, fundamentally. The reason that I like scatter in the short term is that you can price more aggressively, you can have higher gross margins, you can

20:54outmarket, you know, your competition. There's still a decent amount of market share that's there. But and acquiring them is super easy. If you just knock on 12 doors and get a sales like, all right, well how many doors do you need to knock on? That's true. yeah. very straightforward. Yeah. Because like taking it to the hypothetical extreme, it's like okay, what stops me from running an ad, getting 10 guys, getting them into a room, taking a day to have that, you know, to train to train them, and then all of a sudden I've got 10 guys doing five or five to seven sales a day, all on contract with no risk. That

21:23sounds relatively appealing. And the nice thing with door-to-door is that they already naturally have a route. Right, which you already know. And so it it makes it even more efficient for the business, right, on the back end. So, that's what I like about Scatter. But I do think that there's this, you know, long, long term, there's there's probably some downside risk. Or sorry, yeah, there's some risk. The HOA, I just feel like you're going to continue to get squeezed. Yeah, that's the only So, you're like, okay, well then which one

21:51should I do? You know, what if I add something? Yeah, go for it. I think that the thing with Scatter that's even better, too, and the reason I said HOA was not really because of No, you're good. Like the I like I like HOAs because I think that the competitor that we have right now that's really aggressive is

22:11really going hard Scatter and no HOAs. So like it'll And then a competitor that only does HOAs was recently acquired, so people are unhappy with them, so then it kind of opens it up for me. But the thing I love about Scatter is what you said about pricing, and then also the fact that it's only once weekly collection, so we increase throughput

22:29for each truck. Mhm. So. That's the thing I like about it, but in terms of, you know, me being one guy I'm I guess I'm just thinking about it in a limited sense where I'm I'm like, I'm only one guy. How many doors can I knock on in a day, you know? That's not going to be you, man.

22:42Yeah, exactly. Yeah. So we just I mean, let's think of it this way. You said when you get to 3,000 doors is when you're like super profitable, right? Or like it becomes more profitable. And if we get to 5,000 doors, then you're like we're good. You're You're yeah, you're good. Well, I mean, in my mind I like to think like if I had to take this to its natural extreme and I only had have one thing be true. Cuz I like I like to like make a plan on like the fewest need-to-believes as possible. Like every single new assumption that we introduce like dramatically decrease the

23:10likelihood it occurs. If I said, "All right, do you think it's humanly possible to get 10 people to work on commission to knock these doors and get to, let's say conservatively, five a day? Right? Now, this guy's going to keep getting better. He's 3 weeks in, he's already doing seven. Fine. But like let's just say they stick to five a day.

23:29Yeah. That's 50 sales a day. That's 1,500 a month. You're looking at $20,000 by the end of the year. That's Right. And so to me it's like, "Okay, well, that overshoots our goal by like, you know, 8x." Yeah. So, there's all these things that you're doing, but if it was like if only that one thing were true, then what are the other need-to-believes that are associated with that? Which is that you can find the houses to do these door knocking on. Do you have the

23:57ability to do that? Yeah. Okay, so knowing where to go is not a problem. Yeah. And so basically your ability to solve two things. One is the cash to pay the sales people, that they collect as much as you owe them, and that you can cover the cost of the first, you know, the $42 that we

24:15went over earlier. And so like if the only thing you did was like you went home and you're like, "I'm going to go find 10 dudes, and they will be commission only, and I will just rejig the offer so that I can get $42 plus what I have to pay them up front, we don't have to talk about anything

24:33else. Yeah. Let's do it. I mean like I can go through like I can look at the ads and I can tell you what I think like could be better. I can tell you why the the which, you know, we can go through some of those things. But fundamentally like I just want to be like, "Here's the ram rod. Like if only this were true, then what stops me from doing that?" Not a ton, which is just the offer and

24:58getting the sales guys on. Yeah. And then after that's done, it's like that's it. Yeah. And then we just And then we just jam it. And then you just don't let yourself get distracted. Right. I will give you my my blessing on if you get an inbound HOA, you can close them. But I still would be like, this is our growth strategy. I mean like, yeah, sure. Except for money provided it doesn't There's it's super operationally efficient. It does take some of your time. Fine, you're the owner, you can close big deals. But by and large, I

25:25think that's the play. Okay. All right, great. So, I think we go scatter. Great. That was decision number one. Yep. Now, acquisition channel, you already have 50% coming from door to door. So, that gives us that one, right? So, I'm going to hit the sales process in a second, but I think we need to go on offer because this is kind of the big the big unlock of this business. All right, so we have to get You said you're going to

25:54pay them 50, right? Yes. Okay. So, here's how I would restructure this. I would say we have to get $42 no matter what. Period, cuz that's what it costs. That's hard costs, right? So, this is base. Then, got to get the sales guy paid. So, I'm just going to put commission here, which we can fill in in a second. So, we kind of backfill that. Okay, we have to get a commission and we have to get the contract, right? So, what I want to do is find something So, do you give them all a new bin or can they get like a Do they get like somebody else's bin or

26:24like how's that work? We recycle the bins. So, if someone like the three people who canceled, then we'll But for the most part, they're new bins. They're new bins, yeah. Okay. And we'll finance them over 3 years. We You Before I bought them with cash, but then I'm like, okay, maybe we should probably hold on to more

26:40cash. You Wait, you used to pay for them in cash? Yeah. And you financed them? Now I'm financing them, yeah. And do the customer is that $14 per month including included Yes, yes. How much does it cost for a bin? For the set including freight, it's 116. All right, so it's 116. Okay. Now, so this is bin.

27:02What else can you sell up front? Bulk pick up maybe. Um But only how many what percentage customers like opt for that? That's also seasonal and that's So no, that's not the case for Yeah. Okay, what else? So I'll tell you I I have this idea. So we're we talked about the QR code earlier.

27:22Mhm. So what I was thinking about doing was like you put the just the ugliest massive QR code on there and you just say, "Hey, if you want to not have this big QR code on there, it's it's an extra five bucks a month." Mhm. Or if you're cool with it and you're still like are cool with us advertising the business, you allow us to leave it

27:39on. Okay. And I think a lot of people don't give a [ __ ] Yeah. Right. And so all we're going to do though is just tack that onto your existing pricing. So you're So if they say, "I don't want the QR code." Then they're going to pay $5 more than your existing price.

27:54Mhm. So there We bake in a little price increase there. So we get $5 for the QR code. So go buy stickers. They're like not expensive. Yep. And just put this massive QR code and put your phone number and put your Like you've got this you've got this billboard. Right. That's just sitting out there.

28:11What color are the bins? Gray. Man. I totally want them to be neon orange. I'm dead serious. I would I would Everyone would be like, "Jesus. What is this company?" But they would notice it, right? I mean that's what you're trying to you're trying to stand out. Yeah. You said Wait, didn't you say that you wanted the branding? You wanted it to be

28:27on brand with the gray? Yeah, and people We're like clean and stuff. I didn't think gray's clean. It looks You should look at them. They look pretty clean. We have people calling in saying like, "I seen your nice clean bins." so gray. It's like the perfect gray. Well, they're like a light gray. 50 shades. Anyways, um okay. Okay, this is this is the this is how we

28:46break This is how we solve the business. Right. So, like let's take the time on this. The other stuff is really easy. I'll show you some easy Like I don't even Like I can't get into ads. I can't get into the funnel. Like if we just do this, we win. Yeah. Okay. So, you don't charge them anything for the bin, right? That's far as

29:03they're concerned. We do have a separate process through our website. So, we at the door we have that offer that I mentioned, but then when they go to our website, enter in their address, and everything and they qualify, they do get charged a $37 initiation fee, and then they get charged 35 a month.

29:21Mhm. So, we have a little higher price point if they don't take advantage of that. But most people do the door-to-door. And so, this 42 is labor, right? Yes. Labor plus trucks breaking. Yeah, and dump fees. Okay, yeah. Plus dump. Okay, got it. I think our key is actually how we structure this, the bin. So, it costs you 116. Is there a way that we could be like Cuz what I want to do is You see where

29:48I'm going with this, right? Yep. Cuz like if we can get the first transaction to be like 199, you're covered. Right? Cuz you've got like So, if we add this together, we've got 158. So, 158 is the true like cost cost, right? Of of getting this person set up. Then you have the commission, which is 50. So, 208 all in, if we got that, you're like

30:13Yeah, set. Right. Something I've been playing around with is maybe doing only doing the 3 months free if they pay annually up front. Yeah, totally. And then like downsell to the 89 a quarter with no months free. Mhm. I like that. Yep. I like that. Cuz even the rate is really attractive, but the I mean the only negative about that is sometimes they're like, "Yeah,

30:33sure, let's do it." And then they opt out because their current provider matched it. But then the 3 months free usually is what puts them over the edge cuz the current provider will not offer the 3 months free. But out of those that do that, I would say it's only maybe one in eight would really

30:47Would do the pre-pay? Oh, would um would like after we like okay, it's 89 a quarter and they're like yeah, actually my current provider matched it. So, it's like one in eight people. And most people are just like here, just take the business. Yeah, yeah, yeah. Yeah, so if if we get if we get the the

30:59deal on seven out of eight, who cares? Yeah, yeah. Right, good point, yeah. So, if we go what I'm trying to play with is so we've got the what what levers do we have, right? So, levers that we have this little QR code like we're going to make your thing look ugly. That's thing one.

31:13Okay. Thing two is we have the bin. Thing two we have Thing three is we have the commitment, right? Right. These are this is like what we're These are our puzzle pieces. Okay. But I want to collect 200. That's what I'm trying to do. Mhm. Okay. So, a quarter is 89, right? Yes. So, any reason do you think anyone's

31:41going to balk at 99? 89 to 99? A lot of people are paying 105, so it may not get them over the edge. You mean it's not enough savings? Yeah. I hate being low low cost. Yeah, okay. But I think that there's still some people who would definitely convert cuz like there's some people I talked to who

31:56are being charged like 180 a quarter. Yeah. It just all varies, you know, depending on if you if you call them to say, "Hey, lower my rate." So, 80 So, okay, so we got 90 90 is 180, right, in terms of cash, Mhm. right? There's going to be some setup fee, right, which we could say we have a 42 and we also have setup fee, right? So,

32:15that's another little little thing. Mhm. We're just we're constructing an offer right now. That's literally what we're doing, okay? Um cuz you could do 3 months free and it's 33 per month, right? Mhm. You could still do 3 months free. Yeah. So, that works fine. Oh, here we go. So, we can basically have the QR code be our $5 extra a month and you're at 29, so that gets you to

32:3835. Okay. Right? Or you can make it Yeah. That's fine. So, that gets us to $35 per month. Right? And so, if we did times six, then that's going to be two What's that? That's 30 plus 180, so 210. All right, so it's going to be 210 in cash. And if you commit to six,

33:07and you normally just eat this, right? Yeah. So, if you commit to six, we'll give you our $116 bin for free. And we'll waive our $49 setup. So, can you talk a little bit more about these these numbers right here? Yeah, so this Yeah, so $35 a month is the the price, right? Yeah. But, what we're trying to do is get them

33:35to prepay for six months. Okay. So, that's the main offer. Is you prepay for six, and then that gets you a free bin, and we waive the setup fee. Okay. If you don't prepay for six, you can prepay for three, and we'll give you Actually, maybe we'll just do this. We'll do this. We'll do 12, and we'll step down to six, and then we'll step down to three, which

33:58is your current offer. Okay. So, 12 months gets you cuz what we're looking for here is blended average cash per door. So, if you have some people who pay 420, and even if it's like one out of whatever, one out of five pays 420, we're still effectively adding 80 bucks per door in cash collected.

34:20Okay. So, even if the vast majority of people If everybody took If four out of five took the your current offer, and then one out of five takes the 400, it's like we're still adding 80 with the existing whatever 89ers that that you're getting right now. So now our actual blended average goes to like 170 a door.

34:37Okay. So it makes sense? Yeah, yeah. Okay. So I think we go times this. Now if they're like, "I don't want the QR code." Then we're like, "Fine, we'll drop it to 30." Right? If they don't want this. And times 12, so that's 360. We get that up front, which is going to lower turn anyways. If they say no, I

34:55don't want to do that. Then we say cuz with that you get free bin and free wave. Or like free free setup, right? If they say no, I'll just do six, which would then get us the two whatever the $200-ish price point. We can get to We can finalize the prices in a second, but you get your $200-ish

35:14price. Um and when you do that, we can't wave the bin. Oh, we can wave the setup fee. But we're going to add We're just we'll finance this over the duration. So that's where you can get the difference in terms of the Like it's $35 a month if you do 6 months. It's $30 a month if you do 12 months. Um and if you're doing just month to month, if you sign up today, I'll let you wave this fee, but

35:35you still got to pay three. Okay. How's that feel? Complicated. Yeah. Well, no, no, what's It's complicated cuz we had to go through everything, but let me let me let's clean it up. Okay. Cuz we got to be able to explain it to the sales guys. Yeah. So the offer at the door is going to be

35:5012 months. And what price are we going to charge at 12 months? For 12 months, we do 30. Up front. So we're going to do 30. So that's going to be $360. Yep. If they commit to 6 months, that's going to be a 35. Okay. So that's 210. And I'd say we bill biannually.

36:18We bill twice a year. Mhm. And then 3 months. Do you do ACH? We We just incorporated that actually, yeah. Okay. Do you have a processing fee? Yeah, so we stripe, so it's Yeah, but like do you don't charge a processing fee? No, but we like I've gotten a bunch people to switch over like offer them a gift card a small gift card to switch over to ACH, but then we don't do a

36:42Well, I'll tell you really a fancy one. So, say that you charge the 3%. So, this is all these are plus processing. And then if they're like, "Oh, I don't want to pay the processing fee." It's all worries. If you want to give a second form of of payment, we'll waive the processing fee. It's just because we have the processing fee just because if the card declines, it just takes us work to go redeem it and then you get your service interrupted and then you have trash sitting around. So, it's honestly in everyone's best favor. It's like honestly, no one ends up paying it. They

37:09just give us two forms. Okay. Oh, thanks. The So, I did actually do that and when I got the the prices book that you gave at the workshop. And So, I kind of messed it up. I did like two things. I did like an annual fee and then I also mentioned, "Oh, yeah, we're also doing a credit card fee, which is really I was too much

37:27in my head. I was doing too many things. Yeah, but I did that and just I was looking into how to add the processing fee and it's like you have to like go to MasterCard and Visa and all that stuff. And is that true or like they're they're saying like you have to legally go to these

37:39companies. Not GPT. Oh, all right. All right. I don't I think you can just charge 3% more. Oh, we can just do it. Okay. Okay. And just say this is our fee. Okay. You can charge whatever fees you want. Check with your legal counsel. Okay. Yeah. And then three right now, we'll keep it at um We'll keep it at the three-month rate, which is going to be 35, right? Which is

38:02105. [ __ ] what is that? 30 105. 105. Right? But we'll still waive the $49 fee. Okay. This one wave is wave's been and fee. I think, right? That we had. Yes. So this gets the discount. So this gets you the discount and the bin and the fee. So it's like what you like how why is it so it's like the effective rate here is

38:3830. 35 and then here it's also 35 but bin how are we going to how are we going to do the bin? How are we going to work that out? We're close. This is honestly the most important thing of today. Like we nail this you go all in on door-to-door we can get there by the end of the year and you're set. So I just want to like make

39:02sure we nail this. What else do you think it is? So with the bin are you saying that they pay the full 116 up front? I would love that. Okay. But like for this one I guess cuz this is not waived with this with this offer. Well what if so if you didn't have the bin right what would their actual rate be? So what do you charge people who

39:20don't who provide their own bin? Yeah the bin is like a few a few I mean depreciating it over it's use No not the depreciation. Okay. I mean like well what okay fine. You do you depreciate it over what 3 years is that what is that what it is? They have a 10-year warranty on them so So 10 years is what you depreciate it

39:35over. So you pay it's like a dollar a month or something like that. cents yeah. Yeah. Yeah. How is it a few cents? Yeah cuz over like 116 months So I'm doing the math wrong? It'd be doll it'd be dollars not cents. yeah maybe I'm doing that wrong. Well 12 months times 10 is 120. It's a $116 bin. So it's 90 whatever cents per

39:56per month. Yeah. Okay so you it's a doll it's a buck. They don't know that you do that though. No. So that's the thing. So like that's like that's that's one-sided information. Don't we'll cut most of this thinking time out to figure it out. You know but I want to I I I think the magic is in this bin. I actually think that that's I think

40:14that's where the real leverage is. Okay. It is something I've been wrestling with cuz initially when we were doing it and we didn't have the competitor, we were like charging 99 for like and they were like, "Okay, fine." But then some people balk at it and I'd be like, "Okay, fine, we'll wave it."

40:27But most people would pay for it. Um but now that it's really competitive, there's like I'm going to go to this other guy who's giving me 3 months free, 89, and I just have to pay for the quarter. So. Yeah. So it's become a little bit more challenging in that sense. Doesn't mean we can't do it.

40:40Yeah. But that had that has been something I I've done in the past. Um I think most people were I kind of played with 99 and then I went down to 50 and most people were like they didn't really care about 50 as much, but then like when I did Cuz I like So I like I mean do you

40:58you're currently charging nothing. Yeah. So if we said, "Okay, upfront we have a $49 bin fee, right?" Yeah. You can buy the bin for 49 bucks. We know that it doesn't matter, right? We're just adding what adding what it So my they'd be like, "Yeah, it feels reasonable, right?" 49 bucks for the bin.

41:14And it's $49 initiation. I don't know, I'm just coming up with this. Okay, it's $49 initiation. And then you have your first quarter, which is let's just use your old pricing. Mhm. 89. So that would get us to 190. We still have commissions. Yeah. But this bin isn't a real cost cuz it's going to cover towards $42

41:42for the quarter. That we're we're calling it the bin fee, but it's really covering our labor Mhm. for the first quarter. Right. Well, that's clever, yeah. And our initiation is actually our commission. Mhm. Mhm. I got you. Yeah. And then our 89 is hopefully our margin. This feels okay. Do you think you can sell this? I think I think people will be really upset with

42:15the extra 49. The initiation. Yeah, I think they understand the bin. Well, why don't we do this? Yeah. Like we can either basically would you think they'd be more comfortable with paying 99 bucks for the bin? And they own it. Yeah. It's your bin, you keep it forever. Yeah. Unless you cancel, of course. In which

42:34case we take it back. Yeah. Yeah, I mean I think that I'm just like replaying anecdotal experiences and here's your turn. I'm just worried people would be like Yeah, it's that's a deal breaker for me. Like I I won't pay that for for the bin even if I own it. I just don't want to

42:54have to provide it. Yeah, but what percentage? You're right. I think it'd only be like 25% or something. I just always remember the negative, right? Of course. Yeah, I know I get it. Yeah. The thing is this all the new sales guys coming in aren't going to know anything. Right. In terms of like what status quo is. So

43:08it's your like here's the deal, guys. Mhm. Like you're going to get paid 50 bucks on each one of these. Mhm. And you got to you got to collect two things. You got to sell them a bin. They got to pay their first quarter. Mhm. That seems pretty straightforward. And we can waive the initiation fee.

43:22Yeah. And and we still do the three months free with this or no? Yeah, I think you can still do the free month the three months free. Okay. I don't hate that. And dude, just to clarify for myself. So the bin, it's actually theirs now? So they're actually paying for it? Well, it's 116, right?

43:36Yeah. Yeah, so why not? Now, if they if they cancel before their term then take the bin back. Right. Which gives you another piece of collateral. Yeah. Okay. So all in you lose 16 bucks on the bin. Who cares? Well, yeah. Yeah, exactly. So I think I think if you go you sell them the bin.

43:51You have this. Um you have the first three months. Right? First quarter. And we're we're in good shape with that. And this factors in and then you have you give them one free month the next each of the next quarters. Yeah. And then that means that you're charging them what 60 on Q2, Q3, Q4?

44:17Exactly. 59 and some change. Got it.

44:27And so how do we handle situations where they where like I'm not going to buy your bin? It's like you can provide your own. Okay. And so we just wouldn't as a customer. Yeah, but I mean you can provide your own if you want. Yeah. Okay. You could, if you wanted to, say, "If you're not willing to do that, we'll finance it over 3 years, but we end up

44:44charging you 150." Mhm, I like that. Yeah, I really like that. Cuz then it gives you a 3-year term. Yep. Okay. And then with the 3-year term budget in like I don't know, add in like a I don't know, 4% price increase each year. Sure. Okay. I think that's it. Feels doable. Yeah. I still want to get this anchor, though, because we still want to go cuz some houses are like fine, just if I could build me one, so I don't want to

45:09Mhm. Exactly, yeah. Yeah, and so it's like start at 360. It's like yes for the year. Okay, so we're getting close. We're going to do it we're going to do a cleaner a cleaner next version of this. All right? So, all right, I want to think through it real quick. So, this is the core offer, right? We'll clean this up, but it's like 99 bucks for the bin, 89 for the first quarter. You still get

45:29your 3 months free. Mhm. Cool. That's fine. I still want to start higher because even if we get 20% of people to take, which we totally will, I'm telling you, we're going to, that would be really big for the business because if we can get this on the core offer, and then we can add 80 to the average door,

45:48Mhm. then that takes uh so this is 190 at 80, we're at two we're at 270. Right? Average cash collected per sale. Mhm. You're good. Yeah. You're home free. Mhm. Sexy, right? It's way better than right now. That's way better than right now. That is way better than right now. That's this that's that's facts. F A F A you

46:07know, it's factual printer. Okay. Okay. Okay. So, here's here's where this gets sexy. Okay, I got it. OKAY.

46:19SO, ALL RIGHT. OKAY, I THINK THIS IS COMING TOGETHER. This is coming together. If someone if someone paid 360 up front, would you give them the the bin for free? I think I'd do that, you know. Okay. Boom. I think we're just going to have two offers. Okay, keep it super simple. We're going to have 12 months. And with 12 months, they're going to be at $30, right? And they're going to pay 360 in total, but free

46:49$99 bin. So, they don't have to they don't have to pay that. Right. Great. And then the core offer is going to be 3 months at 30, but they have to pay for the $99 bin. And 3 months up front. Mhm. So, all in they're looking at 180 190 whatever 189. So, now look at that AB offer.

47:21Yeah. So, would you rather pay 360, pay for the year, I'll give you the bin, it's on me, or 189, you just pay the first quarter, but you just got to pay the bin, right? Right. Yeah, I like that. Now, we just got to hustle. Yeah, but the nice thing is that this keeps it super simple. The billable is the same. All we're debating is who gets the free bin and who doesn't. You get the free bin when you commit for the year. Cuz listen, it costs me money to do this, but if you commit for that

47:43period of time, I'll throw it in, right? Like it actually costs us 116. So, like I'll be like we we actually lose a little bit of money on these bins. Okay. Yeah. But if you commit to us, we'll commit to you. Yeah, exactly. And then our breakdown is, let's say, now let's look at the math. So let's say 80% take our $189 dollar offer, and then 20% take our $360 offer equals

48:18$72. And this equals service says Michael, Jamie. Jamie. Well, it's 19.2 is 270 is $27 off this, which is 162.

48:43So we add this together.

48:49Average per door. And we needed 208.

48:58Yeah. And then you're home free.

49:07Doable? Yeah, I just I've never thought about that way. You still get three You still get three Like the offers are banging. Yeah. It's like you get three Like the offer's great because you're getting three months free either way. Yeah. So I would And that way I think it you've got this great feel, right? You say, "Listen, we're going to give you three months free either way just because you're switching to us. So we're happy to do that. But if you're willing to commit to a a whole year

49:27give you the bid." Right. If you don't want that, no worries. We'll get you set up. Yeah. Yeah.

49:39What are you going to do? What are you going to do with all this money? Yeah, I don't know. All right. So that's that's the that's the play. That's the play. And for for our folks at home, the reason that that was so important is that we needed to get above $208 because he had a $50 commission that he

49:59has to pay. And we knew we had $42 of labor. And we know that he had these bins that he's been basically fronting the cost for for customers. Now, to be clear, as of right now, what was the other cost though? There was something else. There's labor, there's commission, and there's something else. No, I think it was just the bins. Oh, so I'm just being greedy. That

50:22works. Okay. So then we got Yeah, yeah. Well, I like to have I like to grow businesses debt free if I can. Me, too. Cuz I just think there's there's always a way if you just think about hard enough. And so the bins, which right now he's been financing over 10 years for $116. But when we add all these things together, we get to 208. And so in a perfectly debt-free, cash flow positive way of growing the business, we have to get like on average over $208 to to break even up front and have really high really strong cash flow for the business, which has been the biggest

50:53constraint for you. So, getting above that is the objective. And so what we did was we solved for it by having an anchor on the top that we know 20% of people are going to take. And that contributes an extra $72 a door where the core offer is going to be 190, which already solves this.

51:09Mhm. Cool. That was for everyone back home. Okay. Now let's go back to our our handy dandy Isn't this fun? It's a lot of fun. Okay. So, we have our our new offer, our 360 for 12 or 12 at at 360, and then we have our 3189. Money. And if you really get wild with that and you're like, you know what? I don't need all the extra cash that you can pay the guys 100 bucks a day. 100

51:40bucks a deal. Mhm. And they'll be willing to sell more. If you're like, you know what? I don't need all the cat like I'd rather just get more aggressive on the spend. Yeah. You can get way better guys. If the guys can make I'll tell you the difference in sales when you can get at $500 a day, $15,000 a month, almost $200,000 a year, like a different an order of magnitude

51:55better sales person. The thing is is those guys might be doing like and that order of magnitude better sales person might do 10 deals a day. Yeah. Because the guys who really do door-to-door, they run between doors. Really? Okay. 100%. Okay. Cuz they know it's a numbers game. Yeah. They're like, "For every 12 doors I knock on, I'm going to get a sale. So, if I run" I mean, that's why the UPS guys like the guys who who are who are commissioned and are really understand

52:16the game, they sprint back and forth. Mhm. Because you can cover four times the doors just by walking fast. They cut across the lawn. They don't go on the on the sidewalk. Like they're moving. Mhm. Okay. Oh. So, we're going to scatter. We're going door-to-door as our channel. We have our offer, our 12 our our AB offer, which is great. The extra guys get the bin. Awesome. And now we don't

52:40even have to have a financing partner. Yeah. And if you want, you can and just collect the cash. Right. The the next thing is let's talk about sales process on how we're going to teach these guys. Okay. Okay. How do you teach your guys right now and what's the sales process? Pretty relaxed. I mean, he's the first guy I've done so I just I just take him

52:58door-to-door, show him how I do it. Mhm. And I generally tell him what's sits right next to you? Pardon me? He sits right next to you? Yes, exactly. Okay. Yeah. And then I'll do that for a few times, show him how it works, show him how to get a few sales and then I watch him do it and let him just kind of go at it and then chime in if I need to. And then eventually just kind of like give him critiques whenever I see

53:17How many doors can you knock a day? I think I think easy like uh 150. Okay. If you're out there for 8 hours, yeah. So, 150 doors. If he's closing what I mean, if he if he gets to what you're doing, one out of 12, Yeah. right? Then he's closing more than 10 deals a day.

53:32Mhm. Which is chill. Even at 50. That's what I hear on average like conservatively you can get 10, but most guys get 15. Yeah. Yeah. So, the nice thing with your business is that you're going to be in person with them and so you you there's basically two primary ways that people learn. One is modeling and the other is basically doing it. So, children learn through modeling. They watch you do something

53:53and then they learn it, right? Alternatively, you take it up a notch when you give feedback. And so, doing role plays like in very real time with them is going to be the fastest way to speed up the lip. Okay. So, it's literally just like have the door at your facility or whatever. Like I mean, you want to you really want to get them in the like in the mechanics of I say this is the door opens. Like it'll it it will teach that. Like don't just stand next to them. Like close the door, open the door, close the door, open the door, close the door, open the door until they

54:20just nail it every time cuz you know the first 5 seconds of them opening the door is like that's the only shot you really have and they're making their split second decision. And so, it's like you have to drill the opener super hard so they could just say it in their sleep and they say it the right way every time. But, they should absolutely be following a script. And for this type of sale, this script should I mean, how long does it take you to do a sale for

54:39these? 2 minutes. Yeah. Right. So, they're not super hard sales. And so, the sales script is going to be like four questions. It's not a lot. Right? And so, it's just like cool, here's our door here's our knock here's our open. And then question one, question two, close question, overcomes. Like that's it. And so, I would just drill honestly the drilling the three or

54:58four questions is not going to be tough. Then you're just going to do traditional sales training where you're just going to be like I have to think about it. I'm not sure. I have to check with my spouse. Like all that. I don't have the the card that I want on me. Yeah. And when you're when you're collecting do you have a lot of people do you have any people who are like oh, I don't have

55:12the card that I want to use on me? So, we actually don't collect money at the door. Why? We just have a contract that we sign. Okay. I heard that it was uh I don't know. I I just heard that it was a you have to have certain permits to collect money at the door. So, then I

55:26don't have that permit yet. But, they put a credit card number down, right? No. What? And we're still get but people are still signing up. What percentage of people who sign contracts don't end up giving you the card. Uh none of them really. And if we haven't I mean we haven't done the volume we're we're talking about right now. So, I'm sure there would be a

55:46ton of people. Okay. So, you then call them back later? I send them an invoice and then if they don't complete it, I'll follow up and And everyone pays. Yeah. What are we doing, Michael? We should be selling we should be selling trash. What are we doing? Well, they need it. Yeah, I mean Well, if it's not a constraint, then I'm not going to mess with it. But I do think you probably tighten the sales

56:07process in terms of the training. That's absurd what you just said. I I don't know in terms of compliance for that, so check with an attorney, but I'm I'm pretty sure you can just ask someone to buy something. Okay. I'm like pretty feel pretty confident in that. not. But but but You know, it hasn't been an issue, and so if you really do collect 100%, it's certainly a less friction a lower

56:29friction sale. But a contract without a payment clause I don't think it's nothing. Yeah, exactly. that you're getting it is great. The fact that you're getting it is great. Okay, let's pull up the ads in the funnel real quick. Okay. So, yeah, just go just go funnel. So, ads, sorry. Okay. So, I think I think this is fine. I read the copy. I think it it it checks

56:53the boxes in terms of a normal offer. Uh the video ad that I saw that was your best performer was unsurprising to me that it was the best performer. Bottom link. There you go. If you're a homeowner in Centreville, Chantilly, Clifton, or Fairfax and you want to save hundreds on your trash collection this year, this is for you. My name is Philip and I'm the owner of Garbage Disposal Services. We're a local family-owned and operated business in Centreville area and we're here to help take care of your trash. So, if you're tired of things like increasing bills every year, crazy prices, unreliable pickups, then we might be the ones for

57:30you to help give you some more consistency, ease of mind, and stress-free trash collection. If that sounds good to you, click the link down below so we can give you a quote for trash collection in your area so you can start saving money and stop worrying about your trash collection. It's so cringe. No, it's cuz your highest performing ad.

57:47The thing is it seemed authentic. Yeah, oh yeah, right. And it also hit the the core pieces like this is for so-and-so. I do think you introduce yourself first rather than talking about them, but Okay. like you can you can I would probably make it offer-driven first. Pain Pain Pain of like, "Hey, what you said at the end like, 'Hey, if you're tired of X, Y,

58:04and Z, blah blah blah, I'm so-and-so." Okay. Because it's like leading more with the things that they're interested in. And so I basically I would just flip the script on that and then I would record 10 different versions of that with you in different shirts and different backgrounds with the truck with a bin

58:17behind you with a neighbor behind you. Like I would just do as many variations of that Yeah. if I was going to do uh paid ads, but we're not going to do that because we're doing door-to-door. So you want to just cut it off completely? don't think you need it. I think all of your attention should go to I need to get 10 guys that are commission only

58:32that are going to sell this offer. And just only focus on that. Yeah. Yeah. That's it. I mean like if we only have one thing to be true in order for this business to be profitable, then let's just pick that and then just put all of our effort on that one thing. I mean

58:44fundamentally it's the idea of leverage. Yeah. It's like find the one thing that gives you the greatest output. It also has no risk on cash flow for you Mhm. cuz they're commission only. Yeah. The perfect solution doesn't ex- Except when it does. That's it. AB offer, 12-month, 3-month, 20% take the 12, 80% take the main. We're cash flow positive on both. You don't even

59:09need to go into debt for the the bins. Mhm. You get 10 guys closing five deals a day, it's 50 deals a day. Yeah. That's it. Yeah. And then And it's way way easier to close than solar. You can probably get some of those guys. They're just tired of like, "Dude, you're like it's it's such a such a better life to to just know you're going to close deals every day

59:29Yeah. rather than be like knocking doors for 5 days and closing one or two. Yeah. Like it's a much more you know, energizing way to live. Yeah, no, for sure. I think my next constraint would be then getting the sales guys. Yeah, let's talk about that. Yeah. So right now, so I would say if like you can handle more volume, right? You don't have to really change anything about your infrastructure to handle the volume that you would be getting from

59:53these sales guys? I think after a certain point we would need to get another truck. Well, let's we can temporarily deal with that. Yeah, yeah. So to get to your 3,000 whatever it was number Mhm. how much can you take if you were full capacity, how many customers can you can you handle? I think we could do 3,500.

1:00:07Okay. Yeah. I mean dude, like 3,500 we got 1,000 more customers to sell. Yeah. So you got to sell I mean in 6 months, let's call it 5 months, that's 200 customers at seven customers a day. I mean you're if you get a second guy, you'll be doing that. Right. in 6 months. Could be me.

1:00:21Yeah. Could be you. Yeah. All right. So is that going to be an issue? Because I mean do you have the cash to get by to the truck? I think I can figure out a way to get one. Okay. Yeah. So the way to do it is I I think that you could given the nature of this job, I would be looking at running like Indeed ads

1:00:41or Craigslist. Yeah. That would just probably be the easiest thing for you to and then you just need to work these like it's a lead funnel, right? And so like if you're not getting people, so it'd be like like you have to think about this like as a true ad. So a lot of people try to like ward people off. It's like dude, it's an ad. It's the same thing. It's like you're going to run an ad, you have to have a headline, it has to be appealing, the cop the body copy has to be interesting, which is like, "Hey, you can work 4 hours or 8 hours a day. The

1:01:05guys who work 8 hours make this, the guys who work 4 hours do this." Instead of the other alternatives you have of like you have to be able to ask four questions to somebody at the door. Like break it down to what they're going to have to do. Yeah. It's like if you can memorize four questions then you could be able to make a six-figure or multi-six-figure per year income as long as you're are to be in in the street. But then I do damaging admission. It's like, "Hey, sometimes it's going to be hot, sometimes it's going to be cold. That's the trade. But if you're somebody who's like just

1:01:30barely graduated high school, we don't care about your grades. We care about your work ethic." Yeah. Like I think that would attract plenty of people. Yeah. And so it's just add Indeed and those ones already have kind of like applicant funnels that are built into it. And so basically if we're turning off all these extra things that you're spending all this time like fragmented time on, this

1:01:49is all you do. Yeah. You go get sales people. Yeah. And honestly all you need like you need like two guys just to get this going. Yeah. That's it. That makes a lot of sense. Yeah. Baby offer, two guys, four questions. That's it. Let's go. Yeah. I've been doing Indeed ads and but I haven't been structuring it like that. No, it's like

1:02:07Yeah, exactly. It's been more just like the traditional like corporate Yeah, but the thing is you have to think about who's responding to this. Yeah. Write it to that to the salesman. Right. Cuz that's who you're trying to attract. Right. Like what are all the things that you either hate about your current job or

1:02:20you hate about your current sales job? Both those are the pains. What are the what's the promise? You can make six figures, you know, a year or more and you can work four or eight hours a day. I'll take you on either. So some guys will work, you know, 7:00 to noon or 7:00 to 11:00 and then they go to their other job by noon and they work, you know, 12:00 to 8:00 cuz they're

1:02:37providing for family. Yeah. So this is a great opportunity for you. And then I'll work on that immediately. Yeah. So I'll give you the the truth about this. So for a job where someone's coming in commission only, my bar is relatively low because I'd rather give more people the opportunity to take a shot and like prove that they have work ethic rather than they have the skill of interviewing, which is a different skill. I basically would just screen for

1:02:59crazies. Okay. I would just screen for crazies and because if you're going to do this, you're probably going to get a lot of applications. Definitely don't do one-on-one interviews. You're going to be doing group calls. So bunch of people on, two minutes tell me who you are, two minutes two two minutes two minutes, whatever. And then invite the ones who seem normal to your, you know, your warehouse or whatever. Meet them in person, give job offers on the spot,

1:03:20tell them they can start. Okay. I just don't think you have to overcomplicate this. And so, it's like, cool, what we're going to do is we're going to do shadow for a week, and then we're going to break you off in twos, and then that's it. Like, you're good to go. And the thing is here is like, if you wanted to, like, this is this is me talking about how to you aggressively scale sales. Like, you need like two

1:03:37guys. Yeah. So, like, Yeah. get on a group call, talk to a bunch of them. The guy who seems cool and normal and hardworking, invite two or three of those guys out because a bunch of them are going to are going to last, right? Because it is door-to-door and there are there are some risk there.

1:03:49Yeah. And so, like, maybe you hire five to get one. Okay. Just lower the bar. Like, you're not looking for somebody to cure cancer here. You need someone to ask four questions and be able to fill out a form. Yeah, definitely. Cuz, I mean, like I said, me, I'm not like the best salesman in the world, but I can go up there and

1:04:03sell. Sure. But, you think it's cuz you seem trustworthy. You think so? Yeah. Okay. So, and you're also the business owner, so it's like Yeah, I think that's a big you have a star power. So, but with them though, I think what the one thing that I'm looking for is hunger. Yeah. And so, I think that'll typically skew to either young single guys who are just like really hungry and like go-getters, or people who just are about to have

1:04:26like a kid on the way, like you are. You're more hungry now than you probably were. Right? Cuz you're like cuz you have to be. Yes. It's like, you know why married married men with kids make more money than guys who are single without being married and don't have kids? Because they have to.

1:04:40Yeah. That's why they make more money. I mean, yeah. So, they they literally choose to make more money because they have no choice. Yeah, that's that's definitely how I feel. Yeah, right. And so, you're doing it. And so, basically, like, I just look for someone's circumstances of like, why do they need this? Yeah. If someone's like hungry, then I'm especially in a job like this. This is so work ethic driven. They're not going

1:04:59to run out of houses. Yeah. For sure. Right. So, would you say I should just not do any more door-to-door and just train the guys? Well, I think you can I mean, you're going to be doing door-to-door Okay, yeah. in the training. Okay, yeah. So, your sales isn't going to go down. You're just going to have more people so

1:05:13you can duplicate it. Right. Okay. Makes sense. Two birds on stone. Yep. Basically, as far as I'm concerned, I want you to keep doing door-to-door because if you've got your guy and you've got you, you guys start doing 10 10 deals a day, just you two, you're at 300 a month. You need In 3 months,

1:05:28you're at your thousand. Forget everything else. In 3 months, you're at a thousand. Yeah. Right? But, as far as you're concerned, I don't think you should ever do something alone. Okay. So, you have the skill set. You should have somebody always watching you so that you're basically you're getting you're getting two birds on stone, right? You're getting You're

1:05:46double dipping on effort. Yeah. So, someone's always with you because you're the lead sales person, and they're learning until eventually somebody else is the best sales person, you pass out, you you know, you step out Homer Simpson style into the bushes, and then they they slide up, and then they become lead trainer. And if you want, you say, "Hey, I'll give you 60 bucks a sale instead of 50 because it's a little

1:06:03harder to have somebody else with you." Right. Makes a lot of sense. Easy. Yeah. Cool. I feel like this is it. So, let's let's do a quick recap here. Yeah. Let's do a quick recap, and we'll prioritize it, but it's going to be an easy list. Simple, not easy. How about that? Yeah. All right. So, make it blue for you, Michael. All right. I know Michael really wanted the

1:06:25blue. He was like, "All right." So, the first thing we're going to do is we made the decision to go scatter as our avatar. All right? So, that's decision number one, which we just did instantly, but there we go. Number two is we switched our offer. So, we have now an AB offer first offer for 3 months free. And so, offer A is going to be 189,

1:06:54and then 60 per month after that. And then offer B is 360 free bid. That's our deal. Yep. Three. Indeed ads. I'd also hit up your network. You only need a couple, right? Indeed ads into group call. Or you can just honestly invite them all in person if you want, but sometimes people are really crazy, so the

1:07:232-minute, you know, call. In person. And then tag along. And role playing until your eyes bleed. And the nice thing is that basically document, demonstrate, duplicate is the process that we use. And so like the document is like you have the script, they memorize it while you're walking between doors, you're just like you're

1:07:46you're role playing it back and forth. What do you say? What do you say? What do you say? Yeah. Demonstrate, you do it in front of them. Hey, watch me follow the script. Watch me close deals. Now, duplicate, you knock, I'll be here. I'll ride shotgun and I'll watch you do it so you can give immediate feedback. Okay. That's it. And then in terms of I mean, [ __ ] What like what's the what's the outcome of this? The outcome of all of this is that you are cash flow

1:08:14positive. And babies have food. Smiley face. Yeah.

1:08:31Yeah. Feel better? I do. This is all clear? It does. Yeah. That's it. Yeah, give me instructions and I'll go out. That's it. That's all you have to do. And the nice thing is one and two is instant. Yeah. You literally just have to do this. Right. Go hire five more sales guys. I think this is the this is the play.

1:08:52Yeah. I think so, too. Doesn't this feel like like the noise in the world like quiet? I was doing way too much. Of course you were doing way too much. think I was like You two different avatars and five different acquisition processes. Yeah. Yeah. When there's just one that if we just did this well,

1:09:08Yeah. we can solve the cash flow issue, and we can hit your hit your extra thousand in the next like 90 days. Yeah. It's a quarter. It's nothing. Mhm. Feel good? I appreciate it. You're welcome. I told you we we'd get through it. Yeah. It's a fill-up. I'm rooting for you. If you enjoyed this and you want to see a different business that went from negative to positive in one conversation, check out this conversation with Lex Lamar. He's a legal person who does legal things for musicians so that they can get contracts and incorporated and whatever musicians

1:09:42do to make money.