Interview with a Client Who Sold his Company for 10x Earnings!

KEY TAKEAWAYS 

• They were doing 3m last year with 24% net margins
• He sold for TEN TIMES earnings
• He is BIG on building a GREAT culture with his team. Paid vacation, birthday off paid, popcorn machine, ice machine they can use whenever, contests, competitions.
• He measures his guys performance every quarter / He actually has them grade themselves before he does it
• He has the guys call their customer on the way to the house and share their ETA and then mentions they are stopping at the gas station to get a drink, “Would you like me to get you something while I am there?”
• Is expensive but he gets a LOT out of Service Titan
• He ‘grades’ his techs in 5 areas/ They see it and they see how they compare to the other guys
  • Close ratio (needs to be 50% or higher)
  • Average service ticket ($500 or more)
  • 20% lead gen as a tech / 2/10 of service calls turn into a sales lead
  • 25% club membership (at least offer)
  • Call backs (less than 5%)
• His guys make an average of $9.57 an hour just in spiffs
• He clearly is BIG on hiring right. He spends all DAY with them before making a hiring decision.
• His techs say: Did you want to pay full price today or the discounted price? I want the discount price. Then then tech hands them the brochure explaining the club membership for them to look at while they go diagnose the problem.
  • 2000 maintenance agreements is $40,000 / month in revenue!
• When his guys text him they use a 1,3 or 5. 1 is I don’t need anything urgent, call me back whenever. 5 is I have an urgent problem and need to talk right away.
• They were doing 2m a year with 4 guys and now they are doing 3m with 7 guys total.

He doesn’t talk about it in this video but one thing I know about this guy is he SUPER knows his numbers inside and out. What their margins are on everything they sell, how profitable they are compared to last year and so on.

If you have anything you would like me to ask him let me know. I am going to set up a time to go visit them in person and learn more about what they are doing and I will continue to share!

I hope you found it interesting!

Matthew