0:00:04.910,0:00:09.120 [Music] 0:00:07.520,0:00:10.480 hey everyone how are you doing my name 0:00:09.120,0:00:12.080 is ricky rigoletto 0:00:10.480,0:00:13.840 the founder of route the service 0:00:12.080,0:00:15.599 platform it's a sales platform for the 0:00:13.840,0:00:17.359 commercial cleaning services industry 0:00:15.599,0:00:18.960 i am also the owner of rosaliado 0:00:17.359,0:00:20.160 services a family-owned commercial 0:00:18.960,0:00:22.800 cleaning company 0:00:20.160,0:00:24.320 so welcome to cleaning and cocktails a 0:00:22.800,0:00:26.640 show where i get the opportunity to sit 0:00:24.320,0:00:29.359 down with cleaning industry experts 0:00:26.640,0:00:31.359 and share stories talk shop about the 0:00:29.359,0:00:33.280 industry so grab your cocktail 0:00:31.359,0:00:35.520 listen in and i hope you guys enjoy the 0:00:33.280,0:00:35.520 show 0:00:37.410,0:00:42.079 [Music] 0:00:40.320,0:00:44.480 all right guys welcome to another 0:00:42.079,0:00:47.520 episode of cleaning and cocktails 0:00:44.480,0:00:49.039 uh post coven in person episode 0:00:47.520,0:00:50.879 as you can see with some of the guys 0:00:49.039,0:00:52.079 wearing some masks you know me and mark 0:00:50.879,0:00:55.680 have our mask 0:00:52.079,0:00:57.760 um but first and foremost welcome again 0:00:55.680,0:00:59.920 guys thank you these are my chicago guys 0:00:57.760,0:01:02.960 we call ourselves what the four horsemen 0:00:59.920,0:01:04.320 right yeah um so i 0:01:02.960,0:01:06.159 before we even get into everything right 0:01:04.320,0:01:06.560 the episode that we're we're gonna touch 0:01:06.159,0:01:09.040 on 0:01:06.560,0:01:11.280 this whole time is gonna be on numbers 0:01:09.040,0:01:13.680 before we get into numbers 0:01:11.280,0:01:15.200 just tell me how it's been guys right so 0:01:13.680,0:01:17.200 so we'll start with you 0:01:15.200,0:01:18.560 how has been how has the last three to 0:01:17.200,0:01:20.240 four months been 0:01:18.560,0:01:22.479 uh with everything that's going on give 0:01:20.240,0:01:23.119 us a little blue cleaning for the last 0:01:22.479,0:01:26.799 couple months 0:01:23.119,0:01:29.840 and we'll take it from then go mark that 0:01:26.799,0:01:31.840 you know changes pivoting restructuring 0:01:29.840,0:01:33.520 um kind of looking at our overall 0:01:31.840,0:01:34.880 operations 0:01:33.520,0:01:36.799 digging in deep into the numbers which 0:01:34.880,0:01:38.560 we'll talk about a little bit 0:01:36.799,0:01:39.920 actually building a stronger culture 0:01:38.560,0:01:41.759 right especially now because we don't 0:01:39.920,0:01:44.560 see each other as often as we should as 0:01:41.759,0:01:45.439 we did before so everything just a 0:01:44.560,0:01:48.159 little 0:01:45.439,0:01:48.799 just all around the entire process just 0:01:48.159,0:01:51.600 the entire 0:01:48.799,0:01:52.000 culture the entire knowing your numbers 0:01:51.600,0:01:55.119 now 0:01:52.000,0:01:57.600 i think we talked about 0:01:55.119,0:01:59.119 sometimes when you're doing so well that 0:01:57.600,0:02:00.240 it hides some of those broken windows 0:01:59.119,0:02:01.759 out there right where you're making some 0:02:00.240,0:02:04.159 money 0:02:01.759,0:02:05.520 things are tight like they are now that 0:02:04.159,0:02:06.399 comes to fruition you start kind of 0:02:05.520,0:02:07.840 pivoting the shift and 0:02:06.399,0:02:10.160 trying to make those changes but overall 0:02:07.840,0:02:12.319 it's it's been obviously the pandemic is 0:02:10.160,0:02:14.080 not something we wish uh that happened 0:02:12.319,0:02:15.520 but on our end it's really 0:02:14.080,0:02:17.200 made us look a little deep into our 0:02:15.520,0:02:18.400 business yeah i mean it's put us it's 0:02:17.200,0:02:18.959 put the cleaning industry in the 0:02:18.400,0:02:21.920 spotlight 0:02:18.959,0:02:23.520 absolutely right yeah mark i love um 0:02:21.920,0:02:24.879 it's been a good three four months has 0:02:23.520,0:02:29.360 been stressful for sure 0:02:24.879,0:02:32.480 uh we we've grown you know and it's not 0:02:29.360,0:02:35.680 been without blood sweat and tears 0:02:32.480,0:02:37.440 we're figuring out new ways to disinfect 0:02:35.680,0:02:41.440 accounts 0:02:37.440,0:02:42.080 we brought on four or five school 0:02:41.440,0:02:44.480 districts 0:02:42.080,0:02:45.519 and we just started them all up in july 0:02:44.480,0:02:47.280 so we're really 0:02:45.519,0:02:49.599 dealing with the administrators and 0:02:47.280,0:02:51.599 seeing a different angle of things 0:02:49.599,0:02:53.120 and how they're trying to open for their 0:02:51.599,0:02:53.519 students and they're working really hard 0:02:53.120,0:02:55.360 and 0:02:53.519,0:02:57.280 we're doing everything we can to step up 0:02:55.360,0:02:59.840 and help them as well 0:02:57.280,0:03:01.519 nice nice and one what about you you 0:02:59.840,0:03:02.560 know i think it's been so busy that as 0:03:01.519,0:03:04.800 you hear 0:03:02.560,0:03:06.720 these guys say the last three four 0:03:04.800,0:03:07.200 months when reality it's five months and 0:03:06.720,0:03:10.959 counting 0:03:07.200,0:03:13.200 so time is just flowing by five minutes 0:03:10.959,0:03:14.319 so i think that just you know gives you 0:03:13.200,0:03:16.239 an idea of how 0:03:14.319,0:03:17.280 fast things have been moving right so i 0:03:16.239,0:03:18.000 think things have just been moving 0:03:17.280,0:03:20.879 tremendously 0:03:18.000,0:03:22.080 fast for us and you know with that said 0:03:20.879,0:03:22.720 i think a lot of times as business 0:03:22.080,0:03:25.440 owners we 0:03:22.720,0:03:27.280 try to be on top of everything and 0:03:25.440,0:03:29.519 because things are happening so fast so 0:03:27.280,0:03:30.879 many moving pieces all at once 0:03:29.519,0:03:33.360 the nice thing for us is i was able to 0:03:30.879,0:03:35.519 see that my staff and you know my 0:03:33.360,0:03:37.360 key staff was able to just pick things 0:03:35.519,0:03:39.280 up fast to skip things down because i 0:03:37.360,0:03:40.319 couldn't wait around for my answers 0:03:39.280,0:03:42.239 and so they became a lot more 0:03:40.319,0:03:43.599 independent in the process and kind of 0:03:42.239,0:03:45.840 just allowed me to 0:03:43.599,0:03:47.519 start to kind of pull back even more 0:03:45.840,0:03:50.560 right so obviously because of pandemic i 0:03:47.519,0:03:52.400 couldn't just pull back is so important 0:03:50.560,0:03:53.760 but it allowed me to focus on learning 0:03:52.400,0:03:55.519 new processes 0:03:53.760,0:03:56.959 bringing new things in place and they 0:03:55.519,0:03:59.040 were just you know 0:03:56.959,0:04:00.080 taking care of everything so yeah but 0:03:59.040,0:04:01.599 honestly 0:04:00.080,0:04:03.360 going back to the other episodes it's 0:04:01.599,0:04:05.599 the technology that we have from 0:04:03.360,0:04:07.120 crm and automation and everything that 0:04:05.599,0:04:08.640 we have that has allowed us to do so 0:04:07.120,0:04:11.599 much and catch up so fast 0:04:08.640,0:04:13.280 yeah i can't imagine that we would be 0:04:11.599,0:04:14.560 able to do what we've done 0:04:13.280,0:04:16.320 if we didn't have all those things 0:04:14.560,0:04:17.280 already in place um 0:04:16.320,0:04:19.440 the other thing is i always try to 0:04:17.280,0:04:20.880 operate with a little bit more slack 0:04:19.440,0:04:23.199 and even going into this i was already 0:04:20.880,0:04:25.040 creating more stack for future growth 0:04:23.199,0:04:26.720 and so thank god we did because same 0:04:25.040,0:04:29.600 thing if i had that sack there's no way 0:04:26.720,0:04:32.720 we would have been able to do this 0:04:29.600,0:04:35.840 yeah i mean it's times like this that 0:04:32.720,0:04:37.759 you know the books open up you feel 0:04:35.840,0:04:40.080 you peel back the onions and the layers 0:04:37.759,0:04:40.080 of your 0:04:41.040,0:04:44.080 to have organization staff because if 0:04:42.880,0:04:46.639 you're having to catch up 0:04:44.080,0:04:48.240 to the girl you're in such a bad spot oh 0:04:46.639,0:04:51.680 karen's happy about that 0:04:48.240,0:04:53.360 so it's again i want to take you 0:04:51.680,0:04:54.960 through the numbers right because i and 0:04:53.360,0:04:56.880 the reason why i picked numbers as the 0:04:54.960,0:04:58.560 topic today you guys is 0:04:56.880,0:05:00.720 you know as i'm sure you see one in a 0:04:58.560,0:05:02.160 lot of these facebook groups right is 0:05:00.720,0:05:04.240 you know the smaller medium-sized 0:05:02.160,0:05:05.039 business owner more predominantly the 0:05:04.240,0:05:08.080 the mom-and-pop 0:05:05.039,0:05:10.320 and small business they they're so 0:05:08.080,0:05:11.919 quick to want to know how do you price 0:05:10.320,0:05:13.039 this how do you build this job how do 0:05:11.919,0:05:15.120 you get new business 0:05:13.039,0:05:16.080 right where if you don't know your 0:05:15.120,0:05:18.000 numbers first 0:05:16.080,0:05:20.080 who cares about the business right like 0:05:18.000,0:05:21.840 you could win new business that could be 0:05:20.080,0:05:23.280 detrimental to your business to your 0:05:21.840,0:05:25.199 company in your home 0:05:23.280,0:05:26.639 where not all new businesses good 0:05:25.199,0:05:28.800 business right so 0:05:26.639,0:05:30.400 i wanted to dig deep on numbers itself 0:05:28.800,0:05:32.720 because i feel like it's a big 0:05:30.400,0:05:34.320 big topic that you know as you mean you 0:05:32.720,0:05:37.280 were talking so was 0:05:34.320,0:05:37.840 you almost feel super confident you know 0:05:37.280,0:05:39.840 you know your 0:05:37.840,0:05:40.960 your your numbers is for your business 0:05:39.840,0:05:43.039 there is no 0:05:40.960,0:05:44.639 one number for everybody right but 0:05:43.039,0:05:45.520 everybody's different everybody operates 0:05:44.639,0:05:48.560 differently 0:05:45.520,0:05:52.000 so first and foremost 0:05:48.560,0:05:54.639 like let's talk about at this 0:05:52.000,0:05:56.720 moment you guys could say you've started 0:05:54.639,0:05:59.120 to realize what was a good 0:05:56.720,0:06:00.240 vertical and a bad vertical or business 0:05:59.120,0:06:03.440 that you were doing right 0:06:00.240,0:06:05.919 so let's talk about restaurants 0:06:03.440,0:06:07.520 hospitality if you had all your eggs in 0:06:05.919,0:06:10.240 one basket with that 0:06:07.520,0:06:11.600 where were you how do you guys feel like 0:06:10.240,0:06:12.960 you would be as a business owner right 0:06:11.600,0:06:16.400 now 0:06:12.960,0:06:18.720 in trouble i mean 0:06:16.400,0:06:20.479 we've never done really restaurants at 0:06:18.720,0:06:22.080 all food service joints 0:06:20.479,0:06:24.240 anything like that so i don't i don't 0:06:22.080,0:06:26.080 have the background at all 0:06:24.240,0:06:27.440 but even just not just restaurants but 0:06:26.080,0:06:29.600 those verticals where 0:06:27.440,0:06:30.479 you had all your eggs in that one basket 0:06:29.600,0:06:33.680 have you learned 0:06:30.479,0:06:37.600 by this you know guys to diversify 0:06:33.680,0:06:37.600 your your clientele am i am i right 0:06:37.759,0:06:41.280 for us yes um i do have we do have 0:06:40.160,0:06:43.919 restaurants 0:06:41.280,0:06:44.800 um and uh luckily for us i would say the 0:06:43.919,0:06:47.280 majority of 0:06:44.800,0:06:48.639 close to all of them returned not to the 0:06:47.280,0:06:50.639 scale that we were before 0:06:48.639,0:06:52.080 but um obviously these are the 0:06:50.639,0:06:52.400 connections and relationships we've had 0:06:52.080,0:06:55.919 for 0:06:52.400,0:06:57.599 since we began but you're right i mean 0:06:55.919,0:07:00.479 for us it's 0:06:57.599,0:07:01.039 really it's it's almost like good and 0:07:00.479,0:07:02.639 bad right 0:07:01.039,0:07:04.560 so you don't kind of want to stretch 0:07:02.639,0:07:06.319 yourself out too much doing too many 0:07:04.560,0:07:08.240 projects or too many services 0:07:06.319,0:07:09.919 for us we have to condense actually the 0:07:08.240,0:07:13.199 amount of service we have too 0:07:09.919,0:07:15.599 so for us to really scale is focusing on 0:07:13.199,0:07:16.720 certain areas that we know we're good at 0:07:15.599,0:07:17.440 like they say you don't want to drown 0:07:16.720,0:07:18.800 into 0:07:17.440,0:07:20.800 all the opportunities because all 0:07:18.800,0:07:22.479 opportunities are not equal 0:07:20.800,0:07:24.639 so we're focusing on is more on 0:07:22.479,0:07:26.560 condensing services 0:07:24.639,0:07:27.919 being great at what we're doing and then 0:07:26.560,0:07:29.199 you can flourish after that 0:07:27.919,0:07:31.919 kind of restructuring life as i talked 0:07:29.199,0:07:35.039 earlier today we're focusing on 0:07:31.919,0:07:44.800 various services various uh 0:07:35.039,0:07:47.199 clientele and then from there 0:07:44.800,0:07:47.840 you know we honestly we were lucky 0:07:47.199,0:07:49.919 because we 0:07:47.840,0:07:51.759 were primarily doing commercial 0:07:49.919,0:07:52.960 facilities office spaces things like 0:07:51.759,0:07:54.879 that so 0:07:52.960,0:07:56.560 mostly owner occupied spaces too so 0:07:54.879,0:07:59.840 we're not really going after third-party 0:07:56.560,0:07:59.840 managed companies 0:07:59.919,0:08:04.080 and i feel like that's those are so 0:08:02.160,0:08:06.000 basically these places that we were in 0:08:04.080,0:08:07.680 instead of people downsizing they were 0:08:06.000,0:08:09.199 adding foreign service increasing this 0:08:07.680,0:08:11.599 effective service 0:08:09.199,0:08:12.720 doubling up staff and sharing certain 0:08:11.599,0:08:14.000 aspects 0:08:12.720,0:08:16.879 especially the manufacturing sector 0:08:14.000,0:08:19.919 obviously a lot of them were pivoting to 0:08:16.879,0:08:22.560 providing you know ppe of some 0:08:19.919,0:08:24.400 place shape or form so you know lucky 0:08:22.560,0:08:26.240 for us we were we're pretty lucky so you 0:08:24.400,0:08:28.879 know we have some you know senior 0:08:26.240,0:08:33.440 centers some medical facilities 0:08:28.879,0:08:36.000 um we don't really do any retail or 0:08:33.440,0:08:36.959 restaurants that never that's never been 0:08:36.000,0:08:39.599 vertical for us 0:08:36.959,0:08:41.279 i think in the past our pricing model 0:08:39.599,0:08:44.399 just doesn't work for that 0:08:41.279,0:08:45.760 um and so i just you know i just stayed 0:08:44.399,0:08:46.160 away from that and you know in this case 0:08:45.760,0:08:47.680 it 0:08:46.160,0:08:49.519 happened to be lucky but you know we 0:08:47.680,0:08:52.959 have a mix of clients 0:08:49.519,0:08:54.959 so that that also helps you i mean okay 0:08:52.959,0:08:56.640 so now let's you know let's talk numbers 0:08:54.959,0:08:57.519 right so let's let's talk about without 0:08:56.640,0:08:58.959 you know again 0:08:57.519,0:09:01.040 you don't have to reveal everything 0:08:58.959,0:09:02.880 right but 0:09:01.040,0:09:05.040 there's like there's there's simple 0:09:02.880,0:09:06.640 formulas and there's simple 0:09:05.040,0:09:09.440 categories of what you should account 0:09:06.640,0:09:09.839 for in providing a cult in a bid and 0:09:09.440,0:09:11.920 what's 0:09:09.839,0:09:13.920 what's included right so first and 0:09:11.920,0:09:17.040 foremost do you guys 0:09:13.920,0:09:18.800 do you guys price hourly charge or do 0:09:17.040,0:09:21.440 you do cents per square feet 0:09:18.800,0:09:22.160 let's talk janitorial first so like mark 0:09:21.440,0:09:24.080 i know you're 0:09:22.160,0:09:25.360 you're in bigger spaces so i got a 0:09:24.080,0:09:27.680 feeling you're probably 0:09:25.360,0:09:28.880 cents per square feet but like again for 0:09:27.680,0:09:30.240 the viewers that 0:09:28.880,0:09:32.480 you know i've got questions how do i bid 0:09:30.240,0:09:34.959 how do i price what's good what's bad 0:09:32.480,0:09:35.760 sure like let's try to break this down 0:09:34.959,0:09:37.839 okay 0:09:35.760,0:09:39.279 so i think the first thing to understand 0:09:37.839,0:09:42.480 is 0:09:39.279,0:09:44.640 cents per square foot in number of hours 0:09:42.480,0:09:45.760 can help you and hurt you in different 0:09:44.640,0:09:49.519 situations 0:09:45.760,0:09:51.920 so if you have a very large facility 0:09:49.519,0:09:54.000 okay your cents per square foot is 0:09:51.920,0:09:56.800 always going to be the way that you go 0:09:54.000,0:09:58.720 if you have a very let's call it a 10 0:09:56.800,0:10:01.839 000 square foot or under facility 0:09:58.720,0:10:02.720 if you're quoting that facility at cents 0:10:01.839,0:10:04.480 per square foot 0:10:02.720,0:10:06.399 you're never going to make any money 0:10:04.480,0:10:08.079 because 0:10:06.399,0:10:10.640 your cents per square foot is not going 0:10:08.079,0:10:13.839 to equate to the number of hours you 0:10:10.640,0:10:16.640 actually need to do that facility 0:10:13.839,0:10:18.160 one one example i always throw out there 0:10:16.640,0:10:21.360 is daycares 0:10:18.160,0:10:21.920 daycares are normally a 10 000 a 12 000 0:10:21.360,0:10:24.320 square foot 0:10:21.920,0:10:26.480 footprint it's so much work but if you 0:10:24.320,0:10:27.279 quote it anywhere less than eight to ten 0:10:26.480,0:10:28.800 hours a night 0:10:27.279,0:10:30.079 which they're going to look at you and 0:10:28.800,0:10:31.839 the price is probably not going to be 0:10:30.079,0:10:34.079 right for them and for us that's okay 0:10:31.839,0:10:35.200 because we don't want them 0:10:34.079,0:10:36.640 you're never going to make any money 0:10:35.200,0:10:38.240 yeah and you're just going to get beat 0:10:36.640,0:10:40.959 up over service requests 0:10:38.240,0:10:42.000 okay cents per square feet there's no 0:10:40.959,0:10:43.279 there's nothing in there for 0:10:42.000,0:10:46.399 expectations now i 0:10:43.279,0:10:49.760 take a million square feet 0:10:46.399,0:10:51.920 of school district okay and 0:10:49.760,0:10:53.360 you're at you know 10 cents a square 0:10:51.920,0:10:57.120 foot well now you got 0:10:53.360,0:11:00.000 yeah a month so what about you 0:10:57.120,0:11:01.279 so we do um it's different for because 0:11:00.000,0:11:02.399 we're so project based right 0:11:01.279,0:11:06.079 post-construction 0:11:02.399,0:11:08.800 uh cleanup uh very detailed cleaning so 0:11:06.079,0:11:10.560 kind of going off mark's point is that 0:11:08.800,0:11:11.200 and i think we talked about this too is 0:11:10.560,0:11:13.360 uh 0:11:11.200,0:11:15.440 you really have to gauge your business 0:11:13.360,0:11:17.040 and what exactly 0:11:15.440,0:11:18.560 it sounds like a time study right you 0:11:17.040,0:11:20.320 got to gauge exactly how much square 0:11:18.560,0:11:22.240 footage 0:11:20.320,0:11:23.920 your people are doing per hour for us 0:11:22.240,0:11:24.320 post construction deep cleanings whether 0:11:23.920,0:11:26.640 it's 0:11:24.320,0:11:28.000 you know commercial residential you got 0:11:26.640,0:11:30.000 to come up with that number 0:11:28.000,0:11:32.079 to ensure an accurate quote right 0:11:30.000,0:11:34.640 there's like you said there's no perfect 0:11:32.079,0:11:36.079 medium formula right formula so you kind 0:11:34.640,0:11:36.640 of really have to find out what's good 0:11:36.079,0:11:38.880 for you 0:11:36.640,0:11:40.640 um for us again project based and then 0:11:38.880,0:11:42.079 after off that square footage 0:11:40.640,0:11:43.920 whatever that rate is right per square 0:11:42.079,0:11:45.519 foot per hour then we go to 0:11:43.920,0:11:47.440 the right you bring up a good point and 0:11:45.519,0:11:50.480 i'm sure you guys can attest to this 0:11:47.440,0:11:51.839 issa says that 5000 square feet an hour 0:11:50.480,0:11:55.120 is like a normal rate 0:11:51.839,0:11:56.800 right is the average it's the average 0:11:55.120,0:11:58.399 right that's what they're saying that's 0:11:56.800,0:12:00.240 what they're putting out there 0:11:58.399,0:12:02.160 but if you go into a daycare and you 0:12:00.240,0:12:03.440 clean five thousand square feet an hour 0:12:02.160,0:12:04.880 what are you gonna be in a ten thousand 0:12:03.440,0:12:05.680 ten thousand square foot facility for 0:12:04.880,0:12:07.200 two hours 0:12:05.680,0:12:08.800 and that's how like you know you take a 0:12:07.200,0:12:10.800 three thousand square foot restaurant 0:12:08.800,0:12:12.480 yeah there's no comparison you can't 0:12:10.800,0:12:13.760 that's why those are so how so how does 0:12:12.480,0:12:14.800 it compare to the interaction 0:12:13.760,0:12:16.240 because i don't know how it works for 0:12:14.800,0:12:16.959 the restaurant industry i mean i 0:12:16.240,0:12:20.320 literally do 0:12:16.959,0:12:22.560 hour right so i i stick an hour to it 0:12:20.320,0:12:24.320 i have so i guess it's almost like a 0:12:22.560,0:12:25.760 catch-22 because 0:12:24.320,0:12:27.839 in the beginning it's going to be tough 0:12:25.760,0:12:29.519 for you you're probably going to lose 0:12:27.839,0:12:31.279 in all honesty you're going to lose in 0:12:29.519,0:12:32.480 the first couple of restaurants 0:12:31.279,0:12:33.839 because you've got to understand your 0:12:32.480,0:12:34.480 time you should figure it out you figure 0:12:33.839,0:12:36.959 it out 0:12:34.480,0:12:37.600 now right when we price restaurants or 0:12:36.959,0:12:39.440 you know 0:12:37.600,0:12:40.800 not they care so much but stuff that 0:12:39.440,0:12:42.639 right it's 0:12:40.800,0:12:44.160 detail oriented and it's just a lot of 0:12:42.639,0:12:47.120 foot traffic coming in 0:12:44.160,0:12:48.639 we we reference accounts you know all 0:12:47.120,0:12:49.600 that's like that one ten thousand square 0:12:48.639,0:12:51.360 foot 0:12:49.600,0:12:52.800 bathroom okay we're benchmarking okay so 0:12:51.360,0:12:53.519 it's really a benchmark good way to do 0:12:52.800,0:12:55.839 it to then 0:12:53.519,0:12:57.200 truly understand if that team can do it 0:12:55.839,0:12:58.560 how do we train that team 0:12:57.200,0:12:59.200 you've got to train this team to do it 0:12:58.560,0:13:00.560 or else you're not going to be 0:12:59.200,0:13:01.760 competitive you're not going to win 0:13:00.560,0:13:03.760 business right 0:13:01.760,0:13:06.800 but i mean why you're a numbers guy 0:13:03.760,0:13:07.120 right so it's like cents per square feet 0:13:06.800,0:13:09.360 though 0:13:07.120,0:13:10.480 also could be determined by our hourly 0:13:09.360,0:13:13.040 rate that goes back 0:13:10.480,0:13:15.120 both ways right like how do you get to a 0:13:13.040,0:13:16.480 lump sum monthly service charge 0:13:15.120,0:13:18.639 even if you're doing it cents per square 0:13:16.480,0:13:19.360 feet you still have an hourly rate that 0:13:18.639,0:13:22.399 you still 0:13:19.360,0:13:24.160 can attribute that to you right so 0:13:22.399,0:13:25.600 how do you i mean you're doing a lot of 0:13:24.160,0:13:27.760 luxury high-rise buildings 0:13:25.600,0:13:29.519 right commercial properties do you even 0:13:27.760,0:13:32.560 look at hourly or do you have a 0:13:29.519,0:13:36.720 certain benchmark hourly rate you charge 0:13:32.560,0:13:38.480 yeah i mean i i think we're mostly um 0:13:36.720,0:13:39.920 i'm always looking at production you 0:13:38.480,0:13:42.079 know it's really 0:13:39.920,0:13:44.639 the biggest thing right so going back to 0:13:42.079,0:13:48.000 daycare right 0:13:44.639,0:13:50.079 now it might be 2 000 square feet 0:13:48.000,0:13:51.040 it might even be as low as a thousand 0:13:50.079,0:13:52.560 you know 0:13:51.040,0:13:55.920 so kind of like what mark said we're 0:13:52.560,0:13:57.519 talking probably seven to ten hours 0:13:55.920,0:14:00.079 you know for a ten thousand square foot 0:13:57.519,0:14:01.600 facility um i think the expectation of 0:14:00.079,0:14:02.399 the customer comes into play big time 0:14:01.600,0:14:04.800 too because 0:14:02.399,0:14:05.760 if a customer is picky versus not picky 0:14:04.800,0:14:07.600 in the daycare 0:14:05.760,0:14:08.880 they're going to throw up another effort 0:14:07.600,0:14:09.920 oh and yeah and so 0:14:08.880,0:14:11.360 that's why you know again i'm looking at 0:14:09.920,0:14:13.120 production i'm trying to see what does 0:14:11.360,0:14:14.399 this customer want because there's a lot 0:14:13.120,0:14:16.639 of daycares 0:14:14.399,0:14:18.079 where you know the administration might 0:14:16.639,0:14:20.560 say no the 0:14:18.079,0:14:21.839 teachers and the staff are responsible 0:14:20.560,0:14:24.480 for taking care of 0:14:21.839,0:14:25.839 toys taking care of x amount of things 0:14:24.480,0:14:29.120 but then you might have another facility 0:14:25.839,0:14:29.120 where the administration is like 0:14:29.760,0:14:32.959 no you know you handle everything right 0:14:31.440,0:14:34.000 that's what we have before that's what 0:14:32.959,0:14:36.000 we have you for and so 0:14:34.000,0:14:37.760 oh that's two different i mean two 0:14:36.000,0:14:39.839 different goals right so 0:14:37.760,0:14:41.760 um so i would say you know i'd hate to 0:14:39.839,0:14:43.839 say that you know there's not a cookie 0:14:41.760,0:14:45.920 cutter way through it 0:14:43.839,0:14:47.680 but there is there is standards right 0:14:45.920,0:14:48.800 there standards like like anything right 0:14:47.680,0:14:50.639 so like mark said 0:14:48.800,0:14:52.160 you know you're gonna have standard for 0:14:50.639,0:14:53.760 you know 0:14:52.160,0:14:55.279 price per square foot so you know you 0:14:53.760,0:14:57.600 might have an office space that's 0:14:55.279,0:14:59.120 10 cents a square foot 11 cents a square 0:14:57.600,0:15:01.199 foot again there's assumptions right 0:14:59.120,0:15:03.279 that's assuming five days a week 0:15:01.199,0:15:04.800 you know office space and when you're 0:15:03.279,0:15:06.240 looking at these numbers you're usually 0:15:04.800,0:15:07.360 talking about bigger spaces you know for 0:15:06.240,0:15:08.880 those numbers to really come into play 0:15:07.360,0:15:11.199 you probably have to look at 0:15:08.880,0:15:12.079 you know 40 50 000 square feet and above 0:15:11.199,0:15:14.399 anything under that 0:15:12.079,0:15:15.760 then those numbers start to get a little 0:15:14.399,0:15:18.160 cloudy right 0:15:15.760,0:15:19.199 um and then you're all obviously you 0:15:18.160,0:15:21.920 have to look at your 0:15:19.199,0:15:23.519 you know your geography right so in 0:15:21.920,0:15:25.360 chicago we're going to be at 15 0:15:23.519,0:15:26.959 an hour we've got cook county so we have 0:15:25.360,0:15:28.639 mandatory sick pay we've got you know 0:15:26.959,0:15:31.360 obamacare so we have all these 0:15:28.639,0:15:32.160 additional things that add costs right 0:15:31.360,0:15:34.720 so 0:15:32.160,0:15:36.639 um it's just you know it's a different 0:15:34.720,0:15:38.560 ballpark versus you know i know a lot of 0:15:36.639,0:15:40.480 states are still paying nine bucks an 0:15:38.560,0:15:42.240 hour 15 hours so 0:15:40.480,0:15:43.360 you know when we're talking about hourly 0:15:42.240,0:15:44.079 rate they might look at us like we're 0:15:43.360,0:15:47.120 crazy but 0:15:44.079,0:15:50.079 it's just you know our wages are 50 0:15:47.120,0:15:50.560 higher than theirs yeah so plus we have 0:15:50.079,0:15:51.839 more 0:15:50.560,0:15:53.759 regulatory things to deal with like 0:15:51.839,0:15:55.839 mandatory stick pay that other states or 0:15:53.759,0:15:58.639 counties or whatever it might not have 0:15:55.839,0:16:00.880 so all those things come into place 0:15:58.639,0:16:02.800 digging further into costs 0:16:00.880,0:16:04.639 like what you know this is a very 0:16:02.800,0:16:05.360 long-winded question right but what what 0:16:04.639,0:16:07.759 do you 0:16:05.360,0:16:10.800 what are the if you had to say your 0:16:07.759,0:16:13.920 biggest bullet points main takeaways on 0:16:10.800,0:16:14.800 what's included in your cost what mark 0:16:13.920,0:16:16.399 you know give me one 0:16:14.800,0:16:18.480 so i will give one wanna give me one and 0:16:16.399,0:16:20.639 we could all together wrap up but 0:16:18.480,0:16:22.639 what are the things a small business 0:16:20.639,0:16:25.360 owner starting into the business 0:16:22.639,0:16:26.800 needs to know an account in cost i mean 0:16:25.360,0:16:30.560 i think 0:16:26.800,0:16:31.040 i think the the easiest one is just your 0:16:30.560,0:16:33.279 labor 0:16:31.040,0:16:34.639 you know everybody knows that 50 to 60 0:16:33.279,0:16:37.680 percent of this is labor 0:16:34.639,0:16:39.440 so you've got to have your hours and 0:16:37.680,0:16:41.920 your workloading right before 0:16:39.440,0:16:43.360 you go into something and and don't be 0:16:41.920,0:16:45.680 afraid to turn something down 0:16:43.360,0:16:47.680 that's what's important you know some if 0:16:45.680,0:16:51.040 someone says they have a budget for x 0:16:47.680,0:16:52.320 and you're over by x amounts hey 0:16:51.040,0:16:54.160 this is what it's going to take and 0:16:52.320,0:16:55.519 stand by your word because 0:16:54.160,0:16:56.639 you're either going to you're either 0:16:55.519,0:16:57.279 going to get the account and you're 0:16:56.639,0:17:00.160 going to learn 0:16:57.279,0:17:01.519 why you needed that extra or you're 0:17:00.160,0:17:03.519 going to walk away and 0:17:01.519,0:17:05.919 you're still going to know but you're 0:17:03.519,0:17:07.919 not going to be putting money up to 0:17:05.919,0:17:09.839 so i mean you said 50 to 60 like do you 0:17:07.919,0:17:11.039 guys have like this is again something 0:17:09.839,0:17:13.039 that could vary 0:17:11.039,0:17:15.760 between you being a five-man employee 0:17:13.039,0:17:18.000 company to 100 employee company 0:17:15.760,0:17:20.400 is there a good range you could give up 0:17:18.000,0:17:24.880 give the audience on 0:17:20.400,0:17:26.720 55 60 62 is there a range you guys 0:17:24.880,0:17:27.919 feel comfortable saying you know what 0:17:26.720,0:17:30.240 labor costs are 0:17:27.919,0:17:30.240 labor 0:17:31.200,0:17:37.760 of yeah yeah okay let's say it's a 2500 0:17:34.640,0:17:39.360 contractor money right 60 percent of 0:17:37.760,0:17:40.799 that usually 0:17:39.360,0:17:42.480 i mean i think you could bet on 0:17:40.799,0:17:44.720 something like that okay i was going to 0:17:42.480,0:17:46.559 say i'm 60 to 65 0:17:44.720,0:17:48.880 that's really where i put my number on 0:17:46.559,0:17:50.320 what about you guys i mean for us on a 0:17:48.880,0:17:52.559 project basis well again we're going 0:17:50.320,0:17:53.280 project basis with labor it's roughly 0:17:52.559,0:17:56.080 around that 0:17:53.280,0:17:57.039 50 60 percent but then we got to put in 0:17:56.080,0:17:59.120 obviously the 0:17:57.039,0:18:00.480 fuel that's involved that was in 0:17:59.120,0:18:02.080 supplies and so forth because there's so 0:18:00.480,0:18:03.919 much more involved for us going out to 0:18:02.080,0:18:05.600 these projects and so forth 0:18:03.919,0:18:08.000 and you got to take into account too and 0:18:05.600,0:18:09.520 this is more on the market side but 0:18:08.000,0:18:11.440 there's always got to be that plus minus 0:18:09.520,0:18:12.480 percentage where it might be an uptick 0:18:11.440,0:18:13.200 right you might stay there a little 0:18:12.480,0:18:15.039 longer 0:18:13.200,0:18:17.760 but usually around that 50 60 that's 0:18:15.039,0:18:20.000 kind of real all right 0:18:17.760,0:18:21.600 does that sound i mean it's about right 0:18:20.000,0:18:22.720 honestly for us it'll vary a little bit 0:18:21.600,0:18:24.000 because if we have a really large 0:18:22.720,0:18:24.960 account we have 10 employees or 0:18:24.000,0:18:27.679 something like that 0:18:24.960,0:18:29.120 obviously we squeeze that margin so uh 0:18:27.679,0:18:31.520 so obviously we're gonna have 0:18:29.120,0:18:32.240 whatever more of that total price is 0:18:31.520,0:18:34.880 gonna be labor 0:18:32.240,0:18:35.919 right so some of these bigger accounts 0:18:34.880,0:18:37.440 you have to squeeze your margins in 0:18:35.919,0:18:39.840 order to win them so 0:18:37.440,0:18:40.720 um i mean on top of labor though so you 0:18:39.840,0:18:42.559 set a few right 0:18:40.720,0:18:43.919 fuel so project that's a it's a good 0:18:42.559,0:18:44.960 like it's got janitorial and you got 0:18:43.919,0:18:47.440 projects right 0:18:44.960,0:18:48.799 project you tend to make a little bit 0:18:47.440,0:18:50.960 more margins on pro 0:18:48.799,0:18:52.480 on special projects right but right if 0:18:50.960,0:18:54.320 it were janitorial 0:18:52.480,0:18:55.840 you know other things you got to consist 0:18:54.320,0:18:57.360 of like you guys you guys i'm sure you 0:18:55.840,0:19:00.400 heard the word fringe cost 0:18:57.360,0:19:00.720 right like adding fica adding work means 0:19:00.400,0:19:02.000 cop 0:19:00.720,0:19:04.640 adding health insurance well it's cost 0:19:02.000,0:19:06.640 to labor i mean you have labor costs 0:19:04.640,0:19:08.240 and then on top of that so i mean your 0:19:06.640,0:19:09.520 dry labor is what it is and then you 0:19:08.240,0:19:12.000 have cost of labor which is 0:19:09.520,0:19:12.559 taxes insurance to employee hour clubs 0:19:12.000,0:19:14.880 yeah 0:19:12.559,0:19:16.640 i mean yeah so you call it dry labor 0:19:14.880,0:19:18.240 that's that's something new 0:19:16.640,0:19:19.520 no i'm not driving i'm just saying what 0:19:18.240,0:19:19.919 about your labor itself and then you 0:19:19.520,0:19:24.130 have 0:19:19.919,0:19:28.490 on top yeah the cost of business 0:19:24.130,0:19:28.490 [Laughter] 0:19:29.760,0:19:32.960 yeah so it's like those are the things 0:19:31.039,0:19:34.000 that i tend to see people forget about 0:19:32.960,0:19:35.919 is 0:19:34.000,0:19:37.600 you know throw what your fight is going 0:19:35.919,0:19:39.360 to be dependent on the city 0:19:37.600,0:19:40.720 your health insurance if it's an 0:19:39.360,0:19:42.559 employer you don't want you got a lot of 0:19:40.720,0:19:44.480 people working full-time on a cops like 0:19:42.559,0:19:46.559 you've got to account for these things 0:19:44.480,0:19:48.400 yeah that's why it's like 0:19:46.559,0:19:49.600 if you're adding all these elements to 0:19:48.400,0:19:51.200 the price 0:19:49.600,0:19:53.280 you finally get to a point that you feel 0:19:51.200,0:19:54.960 comfortable like hey well i mean let's 0:19:53.280,0:19:56.960 not forget about supplies and equipment 0:19:54.960,0:19:59.440 and what it takes to do the job too and 0:19:56.960,0:20:02.799 you know a lot of people 0:19:59.440,0:20:03.280 they that can vary okay so one is a good 0:20:02.799,0:20:05.840 one because 0:20:03.280,0:20:07.440 i do want to show your guys take on 0:20:05.840,0:20:11.760 supplies and equipment juan can go 0:20:07.440,0:20:15.280 on gets huge accounts right so 0:20:11.760,0:20:16.559 his his his supply cost if he's doing a 0:20:15.280,0:20:17.919 percentage 0:20:16.559,0:20:21.280 let's say he gets a million dollar 0:20:17.919,0:20:24.159 account right and he 0:20:21.280,0:20:25.520 let's say his normal percentage that 0:20:24.159,0:20:28.400 he's gonna 0:20:25.520,0:20:29.919 attribute to supplies is gonna be let's 0:20:28.400,0:20:32.640 say 20 0:20:29.919,0:20:34.159 right for that million dollar account 0:20:32.640,0:20:34.799 he's probably not going to go with that 0:20:34.159,0:20:36.720 20 0:20:34.799,0:20:38.240 yeah so the bigger the account is based 0:20:36.720,0:20:40.000 on the labor 0:20:38.240,0:20:41.679 you really have to look at the 0:20:40.000,0:20:43.840 percentage you're attributing to your 0:20:41.679,0:20:46.559 equipment and supplies 0:20:43.840,0:20:47.280 and and trim that down you really need 0:20:46.559,0:20:49.919 to do 0:20:47.280,0:20:52.159 your homework to see what is it actually 0:20:49.919,0:20:54.559 going to take in the account to perform 0:20:52.159,0:20:55.520 as opposed to here's my general 0:20:54.559,0:20:57.600 percentage 0:20:55.520,0:20:59.280 because because you could win or lose 0:20:57.600,0:21:01.600 the account that way that's right 0:20:59.280,0:21:03.440 so what about you so i like your 0:21:01.600,0:21:05.360 project-based approach to like 0:21:03.440,0:21:06.880 keep going with that as far as supplies 0:21:05.360,0:21:08.159 and equipment is big on projects 0:21:06.880,0:21:10.000 and you're bringing in a lot of things 0:21:08.159,0:21:11.919 for somebody so that's you know so we 0:21:10.000,0:21:13.200 it's like they say we talked about this 0:21:11.919,0:21:15.840 earlier is we focus 0:21:13.200,0:21:17.360 really hard on what that gross profit is 0:21:15.840,0:21:18.799 going to be right the cost of goods sold 0:21:17.360,0:21:20.000 what's that going to take to get the job 0:21:18.799,0:21:23.039 done because we don't really 0:21:20.000,0:21:24.400 sometimes we tend to look at the net 0:21:23.039,0:21:26.640 you know for the most part but we tend 0:21:24.400,0:21:28.159 to really gravitate towards that number 0:21:26.640,0:21:29.919 and then that kind of means the story as 0:21:28.159,0:21:30.400 far as what we want our net margin to be 0:21:29.919,0:21:32.159 so 0:21:30.400,0:21:34.720 we definitely take into account supplies 0:21:32.159,0:21:37.360 percentages obviously our true cost 0:21:34.720,0:21:38.640 uh per hour for for labor and then any 0:21:37.360,0:21:41.039 equipment fuel 0:21:38.640,0:21:41.919 so so we've got basically our program 0:21:41.039,0:21:43.440 spreadsheets and 0:21:41.919,0:21:45.679 what we do and how we calculate these 0:21:43.440,0:21:47.280 numbers obviously everybody's 0:21:45.679,0:21:49.600 got different tools but for us that's 0:21:47.280,0:21:51.200 really what's the cost what's what's our 0:21:49.600,0:21:53.120 cost our cost going to be 0:21:51.200,0:21:54.240 right and that's how we build up it's 0:21:53.120,0:21:56.159 important to use 0:21:54.240,0:21:58.000 you know it's important to use a 0:21:56.159,0:22:00.320 spreadsheet yeah you know you 0:21:58.000,0:22:02.000 you need to track that stuff i mean 0:22:00.320,0:22:04.480 we've talked about it before 0:22:02.000,0:22:05.520 that you got to know where you where you 0:22:04.480,0:22:07.360 stand 0:22:05.520,0:22:09.120 so that you can plug a number in and say 0:22:07.360,0:22:10.880 okay i got this my labor this you know 0:22:09.120,0:22:12.159 it's my burden of labor this is 0:22:10.880,0:22:14.159 supplies equipment and everything else 0:22:12.159,0:22:16.159 that goes along with it and 0:22:14.159,0:22:18.080 and just plug and chug it's automatic 0:22:16.159,0:22:19.679 you know so let's uh so i want let's 0:22:18.080,0:22:21.200 talk about 0:22:19.679,0:22:23.280 so let's say it's a ten thousand square 0:22:21.200,0:22:25.200 foot facility 0:22:23.280,0:22:26.799 you've got one person working five hours 0:22:25.200,0:22:29.200 a day but you know 0:22:26.799,0:22:31.120 you need so what does it come what's the 0:22:29.200,0:22:32.000 point that you start calculating the 0:22:31.120,0:22:34.960 vacuum 0:22:32.000,0:22:35.760 the mop bucket the janitor cart or a 0:22:34.960,0:22:38.159 floor scrubber 0:22:35.760,0:22:39.360 like are you include do we do that do we 0:22:38.159,0:22:42.799 do you include everything 0:22:39.360,0:22:45.039 into that supply equipment 0:22:42.799,0:22:46.559 percentage um because i like what you 0:22:45.039,0:22:48.080 said and sometimes it could be 20. 0:22:46.559,0:22:49.760 it can be blowing i know sometimes i 0:22:48.080,0:22:50.559 come in at three percent exactly you 0:22:49.760,0:22:53.760 know so 0:22:50.559,0:22:54.720 like what are you passing on all that 0:22:53.760,0:22:57.840 cost 0:22:54.720,0:23:00.960 to the client are you ever doing uh 0:22:57.840,0:23:04.320 it's a part of operating a business 0:23:00.960,0:23:05.679 no strategy process account base right 0:23:04.320,0:23:07.360 and the reason i say it's account based 0:23:05.679,0:23:09.440 because you don't ever want to be in a 0:23:07.360,0:23:12.720 situation where you lose 0:23:09.440,0:23:15.120 uh 10 of your business for example 0:23:12.720,0:23:16.880 and now you've got all this overhead and 0:23:15.120,0:23:17.600 now you're potentially losing money as a 0:23:16.880,0:23:19.039 business 0:23:17.600,0:23:20.880 right so everything has to be if an 0:23:19.039,0:23:22.240 account goes everything that's tied to 0:23:20.880,0:23:24.480 that cost wise goals 0:23:22.240,0:23:25.440 i agree with you yeah i mean so it's got 0:23:24.480,0:23:28.559 to roll up to it 0:23:25.440,0:23:31.520 you know so for example you know um 0:23:28.559,0:23:32.240 you know we just one of the girls that 0:23:31.520,0:23:33.919 works for 0:23:32.240,0:23:35.280 with us is you know she's dropping off a 0:23:33.919,0:23:38.640 bit probably around 0:23:35.280,0:23:40.640 right now for accounting right so 0:23:38.640,0:23:42.240 for that i mean i have a dedicated area 0:23:40.640,0:23:43.360 you know area manager their kid account 0:23:42.240,0:23:44.640 manager dedicated 0:23:43.360,0:23:47.520 it's going to have a dedicated projects 0:23:44.640,0:23:48.960 team everything so all those people 0:23:47.520,0:23:50.720 management team if you know for example 0:23:48.960,0:23:52.400 i don't have that account 0:23:50.720,0:23:54.240 well then you wouldn't have that i 0:23:52.400,0:23:55.760 wouldn't have that team right so 0:23:54.240,0:23:57.600 um and now i see if we were to win now 0:23:55.760,0:23:59.200 we should have to but that's the same 0:23:57.600,0:24:01.039 together right it's almost like a mini 0:23:59.200,0:24:03.440 company but in this case just to give 0:24:01.039,0:24:06.240 you know you guys a reference is 0:24:03.440,0:24:07.360 current company that has it they're 0:24:06.240,0:24:09.039 charging right around two million 0:24:07.360,0:24:11.760 dollars a year 0:24:09.039,0:24:12.960 so we came in at 1.7 million and that's 0:24:11.760,0:24:14.400 the thing right it's like 0:24:12.960,0:24:16.480 you know you have to have your pricing 0:24:14.400,0:24:18.640 model so like i know what my pricing 0:24:16.480,0:24:20.159 should be right so my pricing on this 0:24:18.640,0:24:20.799 account could probably be even tighter 0:24:20.159,0:24:22.400 but 0:24:20.799,0:24:24.159 then again they're coming in at 2 0:24:22.400,0:24:27.279 million so why would i 0:24:24.159,0:24:28.720 you know come in at say 1.5 because then 0:24:27.279,0:24:30.159 the people reviewing them i say well 0:24:28.720,0:24:32.000 you're way too old and then they can 0:24:30.159,0:24:33.600 throw my bit out right so 0:24:32.000,0:24:35.360 with that said i'd say sometimes there's 0:24:33.600,0:24:37.600 always two bids right there's 0:24:35.360,0:24:39.200 two prices for an account there's the 0:24:37.600,0:24:41.039 price that you've determined from your 0:24:39.200,0:24:42.240 benchmarking that it should be 0:24:41.039,0:24:44.159 and then there's a price that's going to 0:24:42.240,0:24:46.480 take to win the account 0:24:44.159,0:24:47.919 you know and you really have to have 0:24:46.480,0:24:50.320 that in mind for example we have another 0:24:47.919,0:24:52.880 account that we just won recently 0:24:50.320,0:24:54.640 where you know i i was assigning i think 0:24:52.880,0:24:56.720 it was six hours 0:24:54.640,0:24:59.279 to the account and their budget really 0:24:56.720,0:25:01.600 only allowed for about four and a half 0:24:59.279,0:25:02.480 and so they said unless you can be here 0:25:01.600,0:25:05.120 at this price 0:25:02.480,0:25:06.320 you can't you know in business you know 0:25:05.120,0:25:07.840 but i looked at it 0:25:06.320,0:25:09.440 and saw okay well do you have a current 0:25:07.840,0:25:10.159 scope of work so they sent me a scope of 0:25:09.440,0:25:12.640 work 0:25:10.159,0:25:15.360 their scope of work was very limited so 0:25:12.640,0:25:16.720 i said okay well for that scope of work 0:25:15.360,0:25:18.480 i could do for four i could do it in 0:25:16.720,0:25:19.760 four and a half hours so i really worked 0:25:18.480,0:25:20.000 my bed and i did a four and a half and 0:25:19.760,0:25:21.440 then 0:25:20.000,0:25:24.400 and we won the business we started on 0:25:21.440,0:25:26.840 the first uh you gotta dissect the scope 0:25:24.400,0:25:29.840 where it's there's no general scope for 0:25:26.840,0:25:29.840 everybody 0:25:30.960,0:25:34.559 price because that was my price off of 0:25:32.640,0:25:37.679 my standard production rates off of 0:25:34.559,0:25:39.279 everything that we know to be true but 0:25:37.679,0:25:40.720 the reality is that the current scope 0:25:39.279,0:25:42.320 that they were getting 0:25:40.720,0:25:44.559 was a lot more limited than what we were 0:25:42.320,0:25:47.039 offering therefore 0:25:44.559,0:25:47.679 you know i was able to rework my price 0:25:47.039,0:25:49.600 and 0:25:47.679,0:25:51.279 get to the price that they needed to be 0:25:49.600,0:25:52.799 at so that's why i say that there really 0:25:51.279,0:25:55.120 is always two prices is 0:25:52.799,0:25:56.400 the price that you know it should be 0:25:55.120,0:25:57.600 based off of your benchmarks and then 0:25:56.400,0:25:58.559 the price that's going to take to win 0:25:57.600,0:25:59.919 the account right 0:25:58.559,0:26:01.919 yeah and sometimes that could be higher 0:25:59.919,0:26:03.600 or lower you know so 0:26:01.919,0:26:05.440 i'd say the best advice i can give 0:26:03.600,0:26:06.640 someone is always find out 0:26:05.440,0:26:07.840 what you're currently paying what the 0:26:06.640,0:26:09.520 current budget is or what their 0:26:07.840,0:26:11.039 expectations are right 0:26:09.520,0:26:12.240 i'd say eighty percent of time they'll 0:26:11.039,0:26:13.039 tell you twenty percent of time they'll 0:26:12.240,0:26:15.919 tell you to 0:26:13.039,0:26:16.640 you know go away or they can disclose or 0:26:15.919,0:26:17.919 whatever 0:26:16.640,0:26:19.760 but eighty percent is a pretty good 0:26:17.919,0:26:21.440 number so do you guys 0:26:19.760,0:26:22.799 because so there's a question i always 0:26:21.440,0:26:24.799 get to is 0:26:22.799,0:26:26.159 rick is there a standard is there a 0:26:24.799,0:26:28.240 basis is there 0:26:26.159,0:26:30.000 is there something companies or people 0:26:28.240,0:26:31.600 like us can come up with 0:26:30.000,0:26:34.240 which i know everybody probably has here 0:26:31.600,0:26:36.720 is a standard spreadsheet 0:26:34.240,0:26:37.360 where you can plug in the square feet 0:26:36.720,0:26:40.720 plug in 0:26:37.360,0:26:43.679 the days of the week and get it you know 0:26:40.720,0:26:45.360 get something that spits out here's an 0:26:43.679,0:26:45.919 attempt or an average of what the price 0:26:45.360,0:26:48.000 may be 0:26:45.919,0:26:49.919 without even seeing the space or knowing 0:26:48.000,0:26:51.440 the scope to get started 0:26:49.919,0:26:54.080 like do you guys what do you guys feel 0:26:51.440,0:26:55.919 about that approach will it ever get 0:26:54.080,0:26:57.760 autonomous where you could plug and play 0:26:55.919,0:26:59.919 i think for me it's square footage 0:26:57.760,0:27:00.880 right so i do have square footages so 0:26:59.919,0:27:03.360 i'll say 0:27:00.880,0:27:04.720 for a facility that's you know 50 000 0:27:03.360,0:27:07.600 square feet above 0:27:04.720,0:27:10.080 mostly carpeted it's x you know whatever 0:27:07.600,0:27:12.080 let's say 12 cents a square foot if it's 0:27:10.080,0:27:13.919 under 20 000 square feet then it's 13 0:27:12.080,0:27:15.840 cents a square foot if it's under 10 000 0:27:13.919,0:27:17.279 square feet then it's 15 cents a square 0:27:15.840,0:27:19.279 foot whatever right like it just 0:27:17.279,0:27:21.600 but i also have to know whether it's 0:27:19.279,0:27:23.200 carpeted or whether it's you know so the 0:27:21.600,0:27:26.240 main things i need to know is 0:27:23.200,0:27:26.640 size number of employees for type so 0:27:26.240,0:27:28.240 this 0:27:26.640,0:27:29.440 this that gives me my density levels 0:27:28.240,0:27:31.039 that gives me the four type that gives 0:27:29.440,0:27:33.279 me square footage number one and i just 0:27:31.039,0:27:36.480 gives you density but i can i can i can 0:27:33.279,0:27:38.320 pretty closely figure out a price for 0:27:36.480,0:27:40.799 that facility 0:27:38.320,0:27:41.760 over the phone okay just with that data 0:27:40.799,0:27:43.440 i mean so 0:27:41.760,0:27:45.039 because i feel like it's that's that's 0:27:43.440,0:27:46.720 where i want you know 0:27:45.039,0:27:48.640 we got to think of you know technology 0:27:46.720,0:27:50.320 for the future as far as 0:27:48.640,0:27:52.559 we've got to get to a point where we can 0:27:50.320,0:27:54.320 create those standards or else 0:27:52.559,0:27:56.080 they're going to get stuck and then 0:27:54.320,0:27:58.000 that's the traditional office spaces 0:27:56.080,0:27:59.679 right now if i've got a facility that's 0:27:58.000,0:28:00.960 educational that's a different ballpark 0:27:59.679,0:28:03.039 you know that there's a slightly 0:28:00.960,0:28:05.840 different price per square foot 0:28:03.039,0:28:06.720 so location's up again right so facility 0:28:05.840,0:28:07.679 it's a little bit different 0:28:06.720,0:28:09.919 daycares i don't know because i don't 0:28:07.679,0:28:11.039 deal with them you know i imagine that 0:28:09.919,0:28:12.159 again that production has got to be 0:28:11.039,0:28:15.440 something to a thousand food 0:28:12.159,0:28:17.039 square right so um but yeah i can figure 0:28:15.440,0:28:18.480 that out right but then again 0:28:17.039,0:28:20.320 from there you still have to do your 0:28:18.480,0:28:22.320 walkthrough you have to figure out 0:28:20.320,0:28:24.000 you know is what they're asking outside 0:28:22.320,0:28:25.200 of your traditional scope of work 0:28:24.000,0:28:27.520 you know so you have to figure that out 0:28:25.200,0:28:27.919 right so it's a good starting point to 0:28:27.520,0:28:30.080 build 0:28:27.919,0:28:31.039 some kind of standard company because 0:28:30.080,0:28:32.640 again 0:28:31.039,0:28:35.279 i you know we've all scaled and we're 0:28:32.640,0:28:37.200 all growing but we all got there because 0:28:35.279,0:28:38.480 you guys would all probably agree you 0:28:37.200,0:28:40.960 have help in pricing 0:28:38.480,0:28:41.679 you have help with bidding others are 0:28:40.960,0:28:44.320 involved 0:28:41.679,0:28:45.039 it's not just us solely doing it where i 0:28:44.320,0:28:47.200 think 0:28:45.039,0:28:48.559 if you're going to grow and scale which 0:28:47.200,0:28:48.960 knowing your numbers helps you grow as 0:28:48.559,0:28:51.520 it's 0:28:48.960,0:28:53.360 growing scale you've got to create some 0:28:51.520,0:28:56.320 kind of baseline 0:28:53.360,0:28:58.480 i mean it all it all starts with it all 0:28:56.320,0:29:00.559 starts with square footage and density 0:28:58.480,0:29:01.679 that's it because once you plug those 0:29:00.559,0:29:03.520 hours in right 0:29:01.679,0:29:04.720 and you have let's say your 50 000 0:29:03.520,0:29:06.480 square feet 0:29:04.720,0:29:08.320 and you come up with whatever that 0:29:06.480,0:29:09.919 calculates for you once you get down to 0:29:08.320,0:29:13.360 your bottom number and let's say you're 0:29:09.919,0:29:15.600 50 000 square feet so you're you know 0:29:13.360,0:29:17.679 10 000 a month let's say you're going to 0:29:15.600,0:29:19.440 take your 10 000 a month divided by 0:29:17.679,0:29:21.120 your 50 000 square feet and that's your 0:29:19.440,0:29:22.480 square foot price so now 0:29:21.120,0:29:24.480 as you go up and down in hours your 0:29:22.480,0:29:26.640 square foot price is changing so it's 0:29:24.480,0:29:28.640 all determinate on 0:29:26.640,0:29:30.000 that square footage should start okay 0:29:28.640,0:29:32.080 you've got to see the space 0:29:30.000,0:29:33.520 and you've got to know the expectation 0:29:32.080,0:29:35.279 okay 0:29:33.520,0:29:36.880 for project base same thing right 0:29:35.279,0:29:39.440 standard uh square 0:29:36.880,0:29:40.960 square footage but post construction you 0:29:39.440,0:29:42.080 know they might ask you for three phases 0:29:40.960,0:29:44.559 right two phases oh yeah yeah 0:29:42.080,0:29:45.600 i need a transfer give me a 50 a cubic 0:29:44.559,0:29:47.600 yard truck i need 0:29:45.600,0:29:49.840 about five of them and stuff you know so 0:29:47.600,0:29:50.480 for us it's great if it's just a white 0:29:49.840,0:29:53.200 glove type 0:29:50.480,0:29:55.039 pay dusting fixing i mean uh cleaning to 0:29:53.200,0:29:57.520 standard price obviously if they want 0:29:55.039,0:29:58.799 you know uh trash removal uh or any 0:29:57.520,0:30:00.399 heavier than lifting at that point 0:29:58.799,0:30:00.960 that's how we do i think one point two 0:30:00.399,0:30:04.559 cell right 0:30:00.960,0:30:06.559 is on post construction people gotta be 0:30:04.559,0:30:08.880 understanding the change orders right 0:30:06.559,0:30:11.039 they gotta treat it like a trade where 0:30:08.880,0:30:12.240 you know you're gonna be requested to 0:30:11.039,0:30:15.039 probably come back 0:30:12.240,0:30:16.399 do more do more so that all that price 0:30:15.039,0:30:19.520 can't be in all in 0:30:16.399,0:30:20.480 you got to have an asterisk to save if 0:30:19.520,0:30:21.840 you call me back 0:30:20.480,0:30:23.760 you need to protect yourself you've got 0:30:21.840,0:30:24.799 them absolutely you have to and 0:30:23.760,0:30:26.000 at the same time that's why it's very 0:30:24.799,0:30:28.000 important to communicate with that 0:30:26.000,0:30:28.799 client or contractors in this in this 0:30:28.000,0:30:30.240 case is that 0:30:28.799,0:30:32.240 there's got to be a hard stop at some 0:30:30.240,0:30:33.279 point right you can't 0:30:32.240,0:30:35.039 you know i'm not going to be changing 0:30:33.279,0:30:36.320 orders or it's going to convert to 0:30:35.039,0:30:38.880 monthly claims exactly 0:30:36.320,0:30:39.919 something's got to happen i'm here today 0:30:38.880,0:30:42.960 exactly so 0:30:39.919,0:30:44.480 once you have that that and i think that 0:30:42.960,0:30:45.840 for art because you do it as well is 0:30:44.480,0:30:46.799 that i think there's got to be more 0:30:45.840,0:30:47.679 education 0:30:46.799,0:30:49.279 because i think there's a lot of 0:30:47.679,0:30:50.640 companies out there that might just go 0:30:49.279,0:30:51.919 all right let's just go with this 0:30:50.640,0:30:53.760 and that's it i know when there's a lot 0:30:51.919,0:30:55.760 of them oh there's a light and so 0:30:53.760,0:30:57.360 the client for us obviously we'll lose 0:30:55.760,0:30:58.880 but you know for me it's 0:30:57.360,0:31:00.000 i know exactly what's going to happen 0:30:58.880,0:31:00.799 because we've been doing it for a while 0:31:00.000,0:31:02.840 right 0:31:00.799,0:31:05.840 and so i think a lot of that has got to 0:31:02.840,0:31:05.840 happen 0:31:05.930,0:31:11.850 [Laughter] 0:31:17.360,0:31:21.360 if you know you're that's why i posted 0:31:20.559,0:31:22.960 that option 0:31:21.360,0:31:24.559 it's a competitive market you'll believe 0:31:22.960,0:31:27.919 it oh gosh 0:31:24.559,0:31:31.120 oh dude i really want to know myself 0:31:27.919,0:31:32.320 um so now let's let's talk the last 0:31:31.120,0:31:35.600 piece of of 0:31:32.320,0:31:36.559 cost overhead operating costs right as 0:31:35.600,0:31:39.200 far as 0:31:36.559,0:31:41.039 this is a topic where if you are a mom 0:31:39.200,0:31:42.000 and pop in your five employees six seven 0:31:41.039,0:31:44.080 eight employees 0:31:42.000,0:31:45.120 yours is going to be different than ours 0:31:44.080,0:31:46.320 right where 0:31:45.120,0:31:48.320 and then mine might be different than 0:31:46.320,0:31:50.240 mine mark's might be different 0:31:48.320,0:31:52.480 and so on but i know when i first 0:31:50.240,0:31:52.960 started i just had this number of ten 0:31:52.480,0:31:54.559 percent 0:31:52.960,0:31:56.480 in the beginning like oh my operating 0:31:54.559,0:31:59.760 cost is ten percent ten percent 0:31:56.480,0:32:01.360 that's drastically changed but what what 0:31:59.760,0:32:04.159 do you guys consider 0:32:01.360,0:32:04.960 as far as overhead some kind of a range 0:32:04.159,0:32:06.880 of percentage 0:32:04.960,0:32:08.480 you guys have anything that you plug in 0:32:06.880,0:32:12.080 i know it could be account based 0:32:08.480,0:32:13.440 right but is there a percentage that 0:32:12.080,0:32:15.200 the audience and the small business 0:32:13.440,0:32:16.320 owner trying to get into the industry or 0:32:15.200,0:32:18.399 grow 0:32:16.320,0:32:19.519 should account for because again this 0:32:18.399,0:32:21.200 all what does this do guys 0:32:19.519,0:32:22.799 and i know you know people might say 0:32:21.200,0:32:23.760 rick man you guys are talking deep into 0:32:22.799,0:32:25.760 numbers 0:32:23.760,0:32:27.760 this brings the bottom line up for our 0:32:25.760,0:32:28.640 industry people start pricing the right 0:32:27.760,0:32:31.679 way 0:32:28.640,0:32:33.279 where the industry is going to reward 0:32:31.679,0:32:34.720 it's going to be reward for us 0:32:33.279,0:32:36.480 i think it's important to address 0:32:34.720,0:32:40.640 indirect versus direct right 0:32:36.480,0:32:44.000 so if you have if if you have 0:32:40.640,0:32:46.159 like a beautiful big building and 0:32:44.000,0:32:47.360 you spend all kinds of money on that 0:32:46.159,0:32:49.200 building 0:32:47.360,0:32:50.799 but that's that's not going to 0:32:49.200,0:32:52.880 necessarily be 0:32:50.799,0:32:54.960 tied directly to your jobs you know what 0:32:52.880,0:32:58.080 i mean so 0:32:54.960,0:32:59.200 it really depends on how what you're 0:32:58.080,0:33:00.880 figuring as direct 0:32:59.200,0:33:01.840 what you're figuring is indirect what 0:33:00.880,0:33:02.640 you're trying to say i bought two nights 0:33:01.840,0:33:05.519 in the office 0:33:02.640,0:33:05.519 are you saying you're very nice 0:33:06.640,0:33:10.000 so but but you said it changed big time 0:33:08.799,0:33:11.679 right so like from the first 0:33:10.000,0:33:12.799 office you're in to the office you're 0:33:11.679,0:33:14.159 right now you're not paying the same 0:33:12.799,0:33:17.440 amount of money 0:33:14.159,0:33:20.640 exactly so the percentage changes 0:33:17.440,0:33:21.840 based on how we spend and i think as 0:33:20.640,0:33:25.200 we're coming up 0:33:21.840,0:33:25.679 that's important you know we can go out 0:33:25.200,0:33:27.360 and 0:33:25.679,0:33:30.320 you know spend money on whatever you 0:33:27.360,0:33:32.799 want but it is going to affect 0:33:30.320,0:33:33.440 your company and the way that that you 0:33:32.799,0:33:35.679 operate 0:33:33.440,0:33:37.519 on a regular basis so if you keep your 0:33:35.679,0:33:40.320 expenditures low 0:33:37.519,0:33:42.559 and lean while you're trying to grow 0:33:40.320,0:33:44.960 then your overhead is going to stay low 0:33:42.559,0:33:46.240 and you could like you have reinvested 0:33:44.960,0:33:48.000 back in the company and 0:33:46.240,0:33:49.760 reinvest in people and equipment and 0:33:48.000,0:33:51.279 things like that but 0:33:49.760,0:33:52.720 if you're out there you're buying the 0:33:51.279,0:33:53.919 newest car you're doing the new you know 0:33:52.720,0:33:56.080 what i mean 0:33:53.919,0:33:57.200 well yeah then your overhead is going to 0:33:56.080,0:33:59.840 skyrocket 0:33:57.200,0:34:00.559 you know yeah so you know i think we got 0:33:59.840,0:34:03.919 to give people 0:34:00.559,0:34:05.519 something concrete right and so you know 0:34:03.919,0:34:07.840 i would say the things that you have to 0:34:05.519,0:34:12.560 account for 0:34:07.840,0:34:14.240 primarily right are obviously your labor 0:34:12.560,0:34:16.800 you know then from there you have your 0:34:14.240,0:34:18.639 taxes so you have to figure out 0:34:16.800,0:34:20.560 specifically what taxes you have to pay 0:34:18.639,0:34:23.760 for and what those rates are 0:34:20.560,0:34:27.119 right so it's fica 0:34:23.760,0:34:28.240 you know then you have and then on your 0:34:27.119,0:34:29.679 student rate which is your state 0:34:28.240,0:34:32.320 unemployment tax rate 0:34:29.679,0:34:33.040 that's also going to vary based on you 0:34:32.320,0:34:34.480 know how many 0:34:33.040,0:34:36.240 unemployment claims you have right so 0:34:34.480,0:34:36.800 you have to manage that rate because you 0:34:36.240,0:34:38.560 know 0:34:36.800,0:34:39.839 someone you know you're you know one guy 0:34:38.560,0:34:41.359 could be paying two percent the other 0:34:39.839,0:34:43.679 guy could be tank paying ten percent 0:34:41.359,0:34:45.839 that's an eight percent difference 0:34:43.679,0:34:47.440 and in many pounds that's your profit 0:34:45.839,0:34:50.879 margin 0:34:47.440,0:34:52.560 so you know that guy could be profitable 0:34:50.879,0:34:54.960 on the account that you would break even 0:34:52.560,0:34:58.240 if you don't manage that the right way 0:34:54.960,0:34:59.280 so you know so then the other expense 0:34:58.240,0:35:02.000 you have to manage is 0:34:59.280,0:35:04.240 you know general liability obviously you 0:35:02.000,0:35:06.000 have to have an umbrella 0:35:04.240,0:35:07.440 um you don't have to but when you work 0:35:06.000,0:35:07.920 with bigger accounts you definitely need 0:35:07.440,0:35:09.440 it 0:35:07.920,0:35:11.359 and then you have your workman's comp 0:35:09.440,0:35:13.040 and the workman's comp is the same thing 0:35:11.359,0:35:16.240 right i mean that rate can vary 0:35:13.040,0:35:19.359 between four upwards of 10 12 0:35:16.240,0:35:21.359 to 15 you know same thing right 0:35:19.359,0:35:22.960 same same thing applies to pseudo unless 0:35:21.359,0:35:25.680 you're managing that 0:35:22.960,0:35:27.440 really tightly you're gonna you know 0:35:25.680,0:35:29.599 that could be the difference between you 0:35:27.440,0:35:30.800 breaking even and the guy next to you 0:35:29.599,0:35:32.480 making ten percent 0:35:30.800,0:35:34.000 or whatever right so those are the 0:35:32.480,0:35:36.560 expenses you have to account for as it 0:35:34.000,0:35:37.680 comes to direct neighbor here where we 0:35:36.560,0:35:39.119 operate we still have to 0:35:37.680,0:35:40.800 you know we also have to come for the 0:35:39.119,0:35:43.599 county sick pay 0:35:40.800,0:35:45.760 policy if you have to cover health 0:35:43.599,0:35:48.480 insurance because you're a full-timer 0:35:45.760,0:35:49.359 so aca coverage or whatever else you 0:35:48.480,0:35:52.160 offer 0:35:49.359,0:35:52.560 um and then if you're offering you know 0:35:52.160,0:35:54.079 any 0:35:52.560,0:35:55.599 vacation time if you're offering you 0:35:54.079,0:35:57.040 know five days whatever it might be for 0:35:55.599,0:35:58.720 vacation time you have to come for that 0:35:57.040,0:36:00.640 as well and 0:35:58.720,0:36:02.480 if you're offering 401k with match or 0:36:00.640,0:36:03.200 whatever so whatever other perks you're 0:36:02.480,0:36:04.640 offering 0:36:03.200,0:36:06.640 that still gets tied into your neighbor 0:36:04.640,0:36:07.920 right and to me that still is direct 0:36:06.640,0:36:10.240 labor because 0:36:07.920,0:36:12.160 that helps you with retention you know 0:36:10.240,0:36:13.839 so i see that as direct labor tied to 0:36:12.160,0:36:15.680 the account 0:36:13.839,0:36:17.119 why because at the end it is part of the 0:36:15.680,0:36:19.440 total compensation for that given 0:36:17.119,0:36:22.480 employee right so 0:36:19.440,0:36:24.240 um so i do those at you know on an 0:36:22.480,0:36:25.599 account level and employed right so 0:36:24.240,0:36:28.160 that's my direct labor 0:36:25.599,0:36:28.960 cost right then at the account i'm 0:36:28.160,0:36:30.640 looking at 0:36:28.960,0:36:32.480 how much supervision am i gonna need for 0:36:30.640,0:36:33.839 this account right 0:36:32.480,0:36:35.680 so am i gonna need one employee two 0:36:33.839,0:36:37.440 employees three employees and so for 0:36:35.680,0:36:38.400 every employee i have to account for id 0:36:37.440,0:36:41.520 badges 0:36:38.400,0:36:43.200 uniforms a set of equipment so that's 0:36:41.520,0:36:44.560 vacuum trash can whatever they're going 0:36:43.200,0:36:45.440 to need right because that all stays at 0:36:44.560,0:36:47.200 the account 0:36:45.440,0:36:48.880 so if i have two employees and i have to 0:36:47.200,0:36:50.000 have two sets of those things right so 0:36:48.880,0:36:51.200 it all depends on the amount of 0:36:50.000,0:36:52.320 employees so you have to account for 0:36:51.200,0:36:54.640 that squeegee 0:36:52.320,0:36:56.240 you know cleaning chemicals obviously 0:36:54.640,0:36:57.520 consumables those you know the client 0:36:56.240,0:36:59.040 pays for right so 0:36:57.520,0:37:00.800 those are all the things you have to 0:36:59.040,0:37:01.359 factor in and if you're using you know 0:37:00.800,0:37:04.079 route 0:37:01.359,0:37:04.720 or something similar to route all those 0:37:04.079,0:37:06.480 numbers 0:37:04.720,0:37:07.680 you can set as defaults already and 0:37:06.480,0:37:08.640 they're always going to be there for you 0:37:07.680,0:37:09.119 because those numbers are never going to 0:37:08.640,0:37:11.359 change 0:37:09.119,0:37:12.560 yeah you know i mean unless you're an 0:37:11.359,0:37:14.160 appointment rate goes up 0:37:12.560,0:37:15.599 or your workers copyright then you go in 0:37:14.160,0:37:17.040 and change it but you can notify when 0:37:15.599,0:37:19.920 that changes anyway 0:37:17.040,0:37:21.280 so those are i think you know for the 0:37:19.920,0:37:23.520 audience the main things you 0:37:21.280,0:37:25.200 always have to account for you know 0:37:23.520,0:37:27.200 direct supervision i account for okay 0:37:25.200,0:37:29.359 this account is going to require 0:37:27.200,0:37:31.359 you know five hours every week of 0:37:29.359,0:37:32.079 supervision or if it's a bigger account 0:37:31.359,0:37:33.440 obviously 0:37:32.079,0:37:34.960 you know every day someone's got to go 0:37:33.440,0:37:38.320 in there whatever right like you figure 0:37:34.960,0:37:38.320 it out based on the pound size 0:37:39.040,0:37:43.200 juan did his homework he came to the 0:37:41.040,0:37:43.599 table with a lot of bullet points where 0:37:43.200,0:37:45.920 where 0:37:43.599,0:37:47.839 were you guys at what i knew i think 0:37:45.920,0:37:49.760 what one i think what one brings to the 0:37:47.839,0:37:52.079 table is really good because 0:37:49.760,0:37:53.520 it ties into something that's bigger 0:37:52.079,0:37:57.280 than this even 0:37:53.520,0:37:59.200 and that's your your monthly piano 0:37:57.280,0:38:00.800 you have to look at a p l for each 0:37:59.200,0:38:04.160 account every month 0:38:00.800,0:38:06.560 there's a new labor i never used to 0:38:04.160,0:38:07.200 every month you have to be looking at a 0:38:06.560,0:38:09.680 p l 0:38:07.200,0:38:10.240 of every account that you have because 0:38:09.680,0:38:13.599 as you 0:38:10.240,0:38:15.440 grow and you get bigger you have these 0:38:13.599,0:38:17.599 smaller accounts that could be eating 0:38:15.440,0:38:20.320 you could suck 0:38:17.599,0:38:22.079 so it's very important that as you know 0:38:20.320,0:38:23.839 as you move up in the company and as 0:38:22.079,0:38:25.280 your companies move up and as you're 0:38:23.839,0:38:27.359 just starting out 0:38:25.280,0:38:28.880 you need to be in tune with what your 0:38:27.359,0:38:29.520 numbers are and you need to look at 0:38:28.880,0:38:32.160 those numbers 0:38:29.520,0:38:33.359 every month yeah and and so going back 0:38:32.160,0:38:34.880 to the account level 0:38:33.359,0:38:36.640 if in that account i'm going to put in a 0:38:34.880,0:38:38.480 auto scrub or i'mma put in 0:38:36.640,0:38:39.680 you know battery backpack specialty 0:38:38.480,0:38:42.000 equipment that's going to cost me a lot 0:38:39.680,0:38:44.079 more than my traditional expenses 0:38:42.000,0:38:45.280 you know then i account for that in 0:38:44.079,0:38:48.960 there as well right so do 0:38:45.280,0:38:52.000 a comfort on a here's the total cost 0:38:48.960,0:38:55.280 divided by the amount or the 0:38:52.000,0:38:56.720 the frequency of the contract so how 0:38:55.280,0:38:59.359 does somebody 0:38:56.720,0:39:00.160 put a 5 000 floor scrubber into a 0:38:59.359,0:39:01.680 contract 0:39:00.160,0:39:03.680 so i usually divide it by two and a half 0:39:01.680,0:39:05.040 years um because usually you have about 0:39:03.680,0:39:06.640 three year useful life 0:39:05.040,0:39:07.920 but then the other half of years because 0:39:06.640,0:39:09.359 it's going to be maintenance batteries 0:39:07.920,0:39:12.079 whatever it might be right so 0:39:09.359,0:39:12.640 i figured two and a half you know so if 0:39:12.079,0:39:15.760 it's 0:39:12.640,0:39:16.480 10 thousand then i'm adding you know ten 0:39:15.760,0:39:17.680 dollars 0:39:16.480,0:39:19.839 if it's a five thousand dollar machine 0:39:17.680,0:39:23.599 divide by two and a half okay 0:39:19.839,0:39:26.480 um so and that's something small but so 0:39:23.599,0:39:27.920 so big where that matters yeah but that 0:39:26.480,0:39:28.400 goes that goes directly into the account 0:39:27.920,0:39:30.320 right 0:39:28.400,0:39:31.760 and so and so with that said you know 0:39:30.320,0:39:33.680 for example like i've said before i 0:39:31.760,0:39:35.440 won't do a one-year agreement 0:39:33.680,0:39:38.720 exactly because then i'll get sacked 0:39:35.440,0:39:40.880 with that if they leave before them 0:39:38.720,0:39:42.000 and if you put the full google after the 0:39:40.880,0:39:45.280 county says no to 0:39:42.000,0:39:46.960 for one year well you know and that's 0:39:45.280,0:39:47.839 okay because when you take it 0:39:46.960,0:39:49.200 you're gonna come in you're gonna do a 0:39:47.839,0:39:50.400 deep queen for three months all right 0:39:49.200,0:39:51.359 then they're going to do that and then 0:39:50.400,0:39:52.400 they're gonna they're gonna go to the 0:39:51.359,0:39:53.440 next guy 0:39:52.400,0:39:56.480 and you're gonna do all that work for 0:39:53.440,0:39:58.800 nothing true that's right 0:39:56.480,0:40:00.079 right they sound great but it's like 0:39:58.800,0:40:00.720 it's not really a commitment because 0:40:00.079,0:40:02.480 then 0:40:00.720,0:40:03.839 that's why i hate the rfp process it's 0:40:02.480,0:40:05.040 like you're going to go back over and 0:40:03.839,0:40:07.200 okay 0:40:05.040,0:40:08.560 there's no consistency you got a bid it 0:40:07.200,0:40:10.480 just that's probably why we haven't 0:40:08.560,0:40:11.680 banned it so much but yeah it's good to 0:40:10.480,0:40:13.200 hear it and honestly 0:40:11.680,0:40:15.040 the big thing the biggest thing is for 0:40:13.200,0:40:16.800 me that i found is that 0:40:15.040,0:40:18.640 you know the people that the good 0:40:16.800,0:40:20.400 accounts are the good relationships they 0:40:18.640,0:40:20.800 actually want a longer term because they 0:40:20.400,0:40:22.720 see 0:40:20.800,0:40:24.640 a lot of people they know that you're 0:40:22.720,0:40:26.240 it's an investment into their facility 0:40:24.640,0:40:27.760 they're investing they're investing time 0:40:26.240,0:40:30.640 into you you're investing time 0:40:27.760,0:40:31.599 back and they want to see that right so 0:40:30.640,0:40:32.560 you know they 0:40:31.599,0:40:34.400 they want to make sure that you're not 0:40:32.560,0:40:36.000 going to walk out you know because even 0:40:34.400,0:40:37.280 if you if you bid it badly 0:40:36.000,0:40:38.480 you're you know they want to make sure 0:40:37.280,0:40:40.000 you're not just going to walk away and 0:40:38.480,0:40:41.200 that that's the thing right is 0:40:40.000,0:40:43.200 you know you have to figure out a way to 0:40:41.200,0:40:45.119 make it work so you know 0:40:43.200,0:40:47.040 i think it's part as part of the sales 0:40:45.119,0:40:50.160 process it's important 0:40:47.040,0:40:52.400 to as an owner as a sales person as 0:40:50.160,0:40:54.000 a whatever your goal is in the company 0:40:52.400,0:40:56.160 if you're selling an account and you're 0:40:54.000,0:40:59.359 seeing that these people don't 0:40:56.160,0:41:01.280 recognize that that hey we got some skin 0:40:59.359,0:41:03.200 in the game too 0:41:01.280,0:41:05.920 might not be the right account so one 0:41:03.200,0:41:06.960 thing touching on this two-year contract 0:41:05.920,0:41:08.720 right it is 0:41:06.960,0:41:10.480 oh you should do i i just tried to agree 0:41:08.720,0:41:11.119 so yeah two to three your contract 0:41:10.480,0:41:13.760 depends on 0:41:11.119,0:41:14.720 the investment in the verbiage because 0:41:13.760,0:41:16.560 this is so probably 0:41:14.720,0:41:18.240 you know the audience should know this 0:41:16.560,0:41:21.280 right is do you have 0:41:18.240,0:41:22.960 any kind of clause of in year two it 0:41:21.280,0:41:24.960 will go up two and a half percent 0:41:22.960,0:41:26.960 three percent four percent like do you 0:41:24.960,0:41:29.599 have the escalating percentage 0:41:26.960,0:41:31.599 i mean are you giving them a good deal 0:41:29.599,0:41:33.920 to get a two-year contract 0:41:31.599,0:41:35.040 what's the give-and-take is there in 0:41:33.920,0:41:36.400 today i think 0:41:35.040,0:41:38.160 i don't know about you're in the city 0:41:36.400,0:41:40.160 you can't do that yeah it's just 0:41:38.160,0:41:41.920 our costs are going you can't hold right 0:41:40.160,0:41:45.680 if you're holding firm 0:41:41.920,0:41:47.280 you can't there has to be an escalator 0:41:45.680,0:41:48.480 because minimum wage is going to go up 0:41:47.280,0:41:49.520 everybody knows everything's going to 0:41:48.480,0:41:50.400 work they know that yeah 0:41:49.520,0:41:51.920 right they know that because you know 0:41:50.400,0:41:53.359 for example it's been going up a dollar 0:41:51.920,0:41:54.319 a year but then in addition to that it's 0:41:53.359,0:41:56.079 still going to go up 0:41:54.319,0:41:57.520 at the inflation rate so you at least 0:41:56.079,0:41:59.280 have to put in there 0:41:57.520,0:42:00.720 you know an inflation adjustment you 0:41:59.280,0:42:01.359 know and honestly clients understand 0:42:00.720,0:42:02.560 that small 0:42:01.359,0:42:03.920 obviously if you're trying to you know 0:42:02.560,0:42:04.400 raise them ten percent they're gonna say 0:42:03.920,0:42:06.640 yeah 0:42:04.400,0:42:06.640 you know 0:42:07.440,0:42:11.119 it has to make sense right so um you 0:42:09.920,0:42:12.880 know so then you know 0:42:11.119,0:42:14.160 the direct cost that you want for the 0:42:12.880,0:42:16.800 account right 0:42:14.160,0:42:17.599 um you know like i said uniforms badges 0:42:16.800,0:42:18.640 all that stuff right 0:42:17.599,0:42:20.560 you're not going to account for your 0:42:18.640,0:42:21.359 office overhead your marketing expenses 0:42:20.560,0:42:23.200 your sales no 0:42:21.359,0:42:24.560 that stuff doesn't matter to that 0:42:23.200,0:42:25.520 account right you can't right from here 0:42:24.560,0:42:26.800 to pay paul 0:42:25.520,0:42:28.560 you know like i'll give you an example i 0:42:26.800,0:42:29.760 mean this year i probably spent 0:42:28.560,0:42:32.480 easily a hundred thousand dollars in 0:42:29.760,0:42:34.400 disinfecting equipment you know i don't 0:42:32.480,0:42:35.520 associate that to any account because 0:42:34.400,0:42:36.880 that's when your personal job 0:42:35.520,0:42:38.240 that's just that's almost like that's 0:42:36.880,0:42:39.359 your new service that's a whole new 0:42:38.240,0:42:40.800 business 0:42:39.359,0:42:42.720 yeah that's almost a whole new division 0:42:40.800,0:42:44.079 so like you know that i don't associate 0:42:42.720,0:42:45.440 that to any account right so 0:42:44.079,0:42:47.119 i can't account as overhead it's just 0:42:45.440,0:42:47.920 making sense right i mean it's going to 0:42:47.119,0:42:49.440 be 0:42:47.920,0:42:51.680 yeah correctly sure you made more than 0:42:49.440,0:42:54.160 that already exactly right exactly 0:42:51.680,0:42:55.359 so you know um and so like mark was 0:42:54.160,0:42:56.400 saying right like if you have you know 0:42:55.359,0:42:58.240 all these luxuries or 0:42:56.400,0:43:00.720 things that are unneeded then you know 0:42:58.240,0:43:02.000 that's affecting your overhead and 0:43:00.720,0:43:03.440 in ways that don't make sense right you 0:43:02.000,0:43:04.960 want to do things that make sense and 0:43:03.440,0:43:07.359 add value to the client 0:43:04.960,0:43:08.480 and so now that we move into overhead 0:43:07.359,0:43:09.520 you know well now once you're in 0:43:08.480,0:43:11.119 overhead you have to look at your 0:43:09.520,0:43:12.640 marketing you have to look at you know 0:43:11.119,0:43:14.560 the cost of sales or costs of 0:43:12.640,0:43:16.560 between those proposals your office what 0:43:14.560,0:43:18.240 does it take to run that business that 0:43:16.560,0:43:21.040 you're bringing in would you exactly 0:43:18.240,0:43:22.560 your office your accounting your billing 0:43:21.040,0:43:24.240 all those things now 0:43:22.560,0:43:26.720 that becomes your overhead so whatever 0:43:24.240,0:43:28.800 that number is you know your vehicles 0:43:26.720,0:43:30.480 you know for your projects teams and 0:43:28.800,0:43:32.319 every all that stuff is now 0:43:30.480,0:43:33.839 your overhead number that to me that's 0:43:32.319,0:43:34.800 why i look at it that's not associated 0:43:33.839,0:43:37.520 directly 0:43:34.800,0:43:39.440 to the account right so you know like 0:43:37.520,0:43:41.200 you might have a vice president 0:43:39.440,0:43:42.560 or whatever right but so that's your 0:43:41.200,0:43:44.720 overhead number 0:43:42.560,0:43:46.319 and i like to look at it completely 0:43:44.720,0:43:48.960 separate because 0:43:46.319,0:43:51.040 for me i need to keep that number as low 0:43:48.960,0:43:54.720 as possible i think it's our duty 0:43:51.040,0:43:56.240 to keep those numbers as low as possible 0:43:54.720,0:43:58.160 because that's how we add value to the 0:43:56.240,0:43:59.920 client you know 0:43:58.160,0:44:01.920 you could do different things for the 0:43:59.920,0:44:03.920 client and if your number's low 0:44:01.920,0:44:05.280 and then as you push i mean it's it's 0:44:03.920,0:44:07.200 just no i did i 0:44:05.280,0:44:08.560 in all honesty i've seen that effect 0:44:07.200,0:44:11.440 it's just a scale 0:44:08.560,0:44:12.240 i tried to pass it on to the client and 0:44:11.440,0:44:14.720 it wasn't 0:44:12.240,0:44:15.280 it was either you don't win it it was 0:44:14.720,0:44:17.920 not good 0:44:15.280,0:44:19.520 right so it's like i know for me because 0:44:17.920,0:44:21.280 the topic of people right i feel like 0:44:19.520,0:44:23.200 people are our biggest assets 0:44:21.280,0:44:24.960 that's right right like we people want 0:44:23.200,0:44:26.160 to talk about growth you're not growing 0:44:24.960,0:44:28.640 if you don't have the right people 0:44:26.160,0:44:30.079 but i don't care how good you think you 0:44:28.640,0:44:31.520 are right like you need the right people 0:44:30.079,0:44:34.079 in place 0:44:31.520,0:44:36.000 now and you always get the question of 0:44:34.079,0:44:37.760 well when can i hire a supervisor when 0:44:36.000,0:44:38.960 can i hire somebody to do this to do 0:44:37.760,0:44:41.520 that 0:44:38.960,0:44:42.240 it comes with how profitable you are and 0:44:41.520,0:44:44.720 how low 0:44:42.240,0:44:46.319 and lean you can operate right yeah so 0:44:44.720,0:44:47.200 we talked about it just jump in because 0:44:46.319,0:44:48.720 you guys are 0:44:47.200,0:44:50.880 doing great with big facilities so on 0:44:48.720,0:44:54.079 our end we talked about this recently is 0:44:50.880,0:44:56.480 we've brought on a platform called divi 0:44:54.079,0:44:57.760 that's for that same reason is that you 0:44:56.480,0:44:59.040 know we want to make sure that our 0:44:57.760,0:45:01.760 overhead cost 0:44:59.040,0:45:03.280 is very manageable right and uh our 0:45:01.760,0:45:04.000 operating costs as well so what this 0:45:03.280,0:45:06.000 platform does 0:45:04.000,0:45:07.680 is that you can create different budgets 0:45:06.000,0:45:08.800 and you can put a cap so it's basically 0:45:07.680,0:45:10.480 a line of credit 0:45:08.800,0:45:12.160 and you can have virtual credit cards or 0:45:10.480,0:45:14.240 credit cards to your managers 0:45:12.160,0:45:16.160 setting budgets for each one if you're 0:45:14.240,0:45:17.920 outsourcing any work you can set budgets 0:45:16.160,0:45:18.880 for them as well with its hr accounting 0:45:17.920,0:45:20.480 whatever it is 0:45:18.880,0:45:21.920 uh so that way you know how sometimes 0:45:20.480,0:45:23.680 the subscription models 0:45:21.920,0:45:25.359 will jump ten percent and you don't even 0:45:23.680,0:45:27.359 know it right so ten percent here five 0:45:25.359,0:45:29.680 percent there's one percent there 0:45:27.359,0:45:30.880 you know it is quite a bit of money for 0:45:29.680,0:45:32.560 your size yeah 0:45:30.880,0:45:34.640 so now we've been able to kind of manage 0:45:32.560,0:45:36.640 all this and now actually know 0:45:34.640,0:45:38.400 where you know kind of like once you 0:45:36.640,0:45:40.240 have your gross profit 0:45:38.400,0:45:41.760 okay where is that overhead what are 0:45:40.240,0:45:42.480 your operating expenses and how can we 0:45:41.760,0:45:45.359 make that 0:45:42.480,0:45:46.079 that net margin much bigger so now 0:45:45.359,0:45:48.560 setting those 0:45:46.079,0:45:49.680 budgets where people can't over yeah 0:45:48.560,0:45:52.079 overcharge or 0:45:49.680,0:45:53.440 uh or our guys swiping more where 0:45:52.079,0:45:55.839 they're at the fuel pump 0:45:53.440,0:45:56.640 has just created tremendous uh changes 0:45:55.839,0:45:58.319 for our 0:45:56.640,0:46:00.319 for our system so we'll make we'll make 0:45:58.319,0:46:02.480 sure we add that to the 0:46:00.319,0:46:03.599 to the channel but it's called divvy oh 0:46:02.480,0:46:05.760 david yeah so 0:46:03.599,0:46:07.359 you guys great points for us to manage 0:46:05.760,0:46:09.839 that we use that five points 0:46:07.359,0:46:11.359 you know about you guys are you using 0:46:09.839,0:46:12.880 budgeting your expenses 0:46:11.359,0:46:14.319 no i mean honestly again i look 0:46:12.880,0:46:15.280 everything account level and then beyond 0:46:14.319,0:46:16.960 that it's you know 0:46:15.280,0:46:18.400 it's our overhead and you just try to 0:46:16.960,0:46:19.920 manage that total number 0:46:18.400,0:46:22.400 and i do review like i'll review like 0:46:19.920,0:46:24.640 what our ad spend is i'll review 0:46:22.400,0:46:26.079 our subscriptions you know like where 0:46:24.640,0:46:27.920 what subscriptions do i need what do i 0:46:26.079,0:46:29.680 which ones can i save money on or you 0:46:27.920,0:46:33.200 know things like that right so 0:46:29.680,0:46:35.599 um you know but going back to 0:46:33.200,0:46:37.359 the account level and and the supply 0:46:35.599,0:46:39.280 stuff that we're talking about right 0:46:37.359,0:46:40.880 it's good to have a benchmark say i know 0:46:39.280,0:46:42.960 the benchmark for printing chemicals is 0:46:40.880,0:46:44.800 usually like two percent or something 0:46:42.960,0:46:46.800 two three percent is is the benchmark 0:46:44.800,0:46:48.079 but it varies right and so 0:46:46.800,0:46:49.760 and that's why you really have to look 0:46:48.079,0:46:50.240 at you know everything like a bean 0:46:49.760,0:46:54.400 counter 0:46:50.240,0:46:57.839 right so you know i had an account 0:46:54.400,0:46:58.960 for example where you know and so we 0:46:57.839,0:47:00.319 mentioned this too right 0:46:58.960,0:47:02.560 we're just talking about this yesterday 0:47:00.319,0:47:04.319 actually you know where my four 0:47:02.560,0:47:05.680 chemical costs was i want to say about 0:47:04.319,0:47:08.839 400 a month 0:47:05.680,0:47:11.839 so it's pretty high because we're in 0:47:08.839,0:47:11.839 there 0:47:13.440,0:47:20.800 several times a day it's 24 7. basically 0:47:16.960,0:47:21.280 and so um one of the things i did is i 0:47:20.800,0:47:25.119 put in 0:47:21.280,0:47:27.520 a tenants machine that uses the eco 0:47:25.119,0:47:28.800 water technology so the water has 0:47:27.520,0:47:31.359 charged water and low cost 0:47:28.800,0:47:33.680 that's the chemical yeah and so now i 0:47:31.359,0:47:36.319 cut out about 400 hours a month 0:47:33.680,0:47:37.920 including solution and it's greener so 0:47:36.319,0:47:38.720 you know i'm helping the environment and 0:47:37.920,0:47:40.240 helping my 0:47:38.720,0:47:43.040 you know helping the green environment 0:47:40.240,0:47:44.480 and help them agree in my pockets 0:47:43.040,0:47:47.040 that's one of those tips right where 0:47:44.480,0:47:48.079 people think hey you won that you won 0:47:47.040,0:47:49.760 the account 0:47:48.079,0:47:51.839 it may not be the price you wanted to 0:47:49.760,0:47:52.400 win the account and now you've got the 0:47:51.839,0:47:54.480 business 0:47:52.400,0:47:55.680 right so now go back to the cardboard 0:47:54.480,0:47:58.400 get productive 0:47:55.680,0:47:58.960 get a machine get a scrubber retune it 0:47:58.400,0:48:00.880 like 0:47:58.960,0:48:02.559 fix your process and that's because 0:48:00.880,0:48:03.920 that's the idea right like 0:48:02.559,0:48:05.920 you know that's why i say production 0:48:03.920,0:48:07.280 rate is very important key and then 0:48:05.920,0:48:08.640 beyond that again there's always two 0:48:07.280,0:48:10.240 prices there's a price that 0:48:08.640,0:48:11.680 your benchmark and then there's a price 0:48:10.240,0:48:13.200 that they're paying or that you need to 0:48:11.680,0:48:15.119 be at or whatever right 0:48:13.200,0:48:17.119 and that's why it's important to know 0:48:15.119,0:48:18.400 what your competition is doing in your 0:48:17.119,0:48:20.000 market so finding out what they're 0:48:18.400,0:48:22.720 currently paying 0:48:20.000,0:48:23.119 um because a lot of times it might be 0:48:22.720,0:48:24.640 that 0:48:23.119,0:48:26.000 maybe you need to fix your production 0:48:24.640,0:48:26.559 right now maybe you need to fix 0:48:26.000,0:48:27.920 something 0:48:26.559,0:48:29.440 in your you know it's not your pricing 0:48:27.920,0:48:29.839 that's off it's you need to try and do 0:48:29.440,0:48:32.640 it 0:48:29.839,0:48:33.760 you train your staff exactly so you know 0:48:32.640,0:48:34.880 i would say the only time that that 0:48:33.760,0:48:36.880 doesn't apply is 0:48:34.880,0:48:38.559 if you're paying against a franchise 0:48:36.880,0:48:41.920 you're being against a franchise 0:48:38.559,0:48:43.680 always bid higher but give them a real 0:48:41.920,0:48:45.440 queen you know and that that's one thing 0:48:43.680,0:48:45.839 where i'd say it actually changes i 0:48:45.440,0:48:48.960 won't 0:48:45.839,0:48:50.720 meet their price i always go 0:48:48.960,0:48:52.640 higher but now you're selling the scope 0:48:50.720,0:48:53.920 because now i know that if it's a 0:48:52.640,0:48:55.680 franchise model 0:48:53.920,0:48:57.440 i mean obviously you can tell walking in 0:48:55.680,0:49:00.559 but usually the queen is really bad 0:48:57.440,0:49:01.440 yeah and so they're already expecting 0:49:00.559,0:49:04.160 you 0:49:01.440,0:49:04.800 you know to give them a higher price but 0:49:04.160,0:49:06.160 give them 0:49:04.800,0:49:08.640 you know give them true creating really 0:49:06.160,0:49:10.960 so um i would say that's probably the 0:49:08.640,0:49:14.000 only caveat to 0:49:10.960,0:49:14.000 what i said so 0:49:14.079,0:49:17.200 to end this phenomenal discussion here 0:49:16.160,0:49:19.200 right is 0:49:17.200,0:49:20.400 the last bit or piece i think people 0:49:19.200,0:49:23.440 should know about or get 0:49:20.400,0:49:25.680 a good idea is markup 0:49:23.440,0:49:27.040 net margin profit margin whatever you 0:49:25.680,0:49:28.000 want to call these different variables 0:49:27.040,0:49:30.240 right 0:49:28.000,0:49:31.839 what what do you guys you know again it 0:49:30.240,0:49:33.920 doesn't have to be an exact number but 0:49:31.839,0:49:35.680 give me a range of what you think 0:49:33.920,0:49:37.440 because everything's case by case per 0:49:35.680,0:49:38.559 business right again based on overhead 0:49:37.440,0:49:41.280 cost based on 0:49:38.559,0:49:42.400 many variables what should people shoot 0:49:41.280,0:49:43.599 for 0:49:42.400,0:49:46.720 if they want to grow their business 0:49:43.599,0:49:50.000 right uh what's a good profit margin 0:49:46.720,0:49:50.000 percentage range 0:49:51.280,0:49:54.800 let's go it varies but it varies by 0:49:53.599,0:49:57.760 account it really does 0:49:54.800,0:49:59.599 because if you're going to bid school 0:49:57.760,0:50:01.680 districts at 35 percent 0:49:59.599,0:50:04.400 you ain't going to win them doesn't 0:50:01.680,0:50:06.640 matter you're going to win them okay 0:50:04.400,0:50:08.240 now if you're going to take that same 35 0:50:06.640,0:50:10.400 and put it on to a project 0:50:08.240,0:50:11.599 yeah you could win that you could win it 0:50:10.400,0:50:14.160 it's okay it's my case 0:50:11.599,0:50:14.640 yeah it's a vertical by vertical right 0:50:14.160,0:50:16.880 yeah 0:50:14.640,0:50:17.920 yeah i mean you know a carpet cleaning 0:50:16.880,0:50:19.359 job might 0:50:17.920,0:50:21.200 your percentage is going to be higher 0:50:19.359,0:50:22.000 but let's talk it depends how bad you 0:50:21.200,0:50:23.520 want to win it too 0:50:22.000,0:50:26.720 that's true too yeah and that's why 0:50:23.520,0:50:28.720 that's why i think people like to 0:50:26.720,0:50:29.839 say people are under bidding but what's 0:50:28.720,0:50:31.920 really an underbid if 0:50:29.839,0:50:33.119 if it's a mom and pop shop that has poor 0:50:31.920,0:50:35.280 employees 0:50:33.119,0:50:37.280 it they're they can price it lower than 0:50:35.280,0:50:38.800 us 0:50:37.280,0:50:41.119 i don't know i don't know what your 0:50:38.800,0:50:44.400 expenses are it depends right 0:50:41.119,0:50:45.839 if a mom and pop shop is under billing 0:50:44.400,0:50:46.960 you at a larger account then you have an 0:50:45.839,0:50:49.359 issue 0:50:46.960,0:50:50.480 okay and i say that because a mom and 0:50:49.359,0:50:53.520 pop shop is not going to be able to 0:50:50.480,0:50:55.200 produce at the same level that you are 0:50:53.520,0:50:57.599 so if they're under bidding you you have 0:50:55.200,0:50:58.800 a production issue okay 0:50:57.599,0:51:01.520 that's that's how that's right that's a 0:50:58.800,0:51:02.000 good point meaning some of these because 0:51:01.520,0:51:03.839 they don't 0:51:02.000,0:51:05.599 they wouldn't necessarily know that 0:51:03.839,0:51:07.760 maybe exactly 0:51:05.599,0:51:09.280 for a bigger account though you know 0:51:07.760,0:51:10.559 your production rate on the big account 0:51:09.280,0:51:13.200 right where they're coming in 0:51:10.559,0:51:15.520 to just price to win but you should know 0:51:13.200,0:51:17.280 that somewhat of the science behind that 0:51:15.520,0:51:18.720 it depends i mean think about how you 0:51:17.280,0:51:21.599 started out 0:51:18.720,0:51:22.880 in the hummer right right like in the 0:51:21.599,0:51:25.040 hills crystal lake 0:51:22.880,0:51:26.240 every day you were doing it because it 0:51:25.040,0:51:28.800 was your sole 0:51:26.240,0:51:30.240 business yeah would you bid something 0:51:28.800,0:51:32.960 the same way now that you 0:51:30.240,0:51:34.400 bid right i've got some kind still from 0:51:32.960,0:51:37.119 back then that we literally 0:51:34.400,0:51:37.119 right you're 0:51:49.119,0:51:52.160 know we lost an account so like a mom 0:51:51.200,0:51:54.960 and pop 0:51:52.160,0:51:54.960 huge facility 0:51:55.280,0:51:58.559 i mean sometimes it just comes down to 0:51:57.119,0:51:59.920 money well no it's interesting it comes 0:51:58.559,0:52:02.079 down to what they can do for less 0:51:59.920,0:52:03.040 because it might be their only account 0:52:02.079,0:52:05.119 or 0:52:03.040,0:52:06.800 you know might be like let's say so 0:52:05.119,0:52:07.680 let's just throw some numbers out like 0:52:06.800,0:52:10.720 i'll tell you like 0:52:07.680,0:52:13.839 we shoot for 20 okay that's my 0:52:10.720,0:52:16.000 if i'm at 20 to 25 0:52:13.839,0:52:17.119 i i can continue to grow this kid some i 0:52:16.000,0:52:19.680 want to be at 30 0:52:17.119,0:52:20.720 somewhat going at 10 or 15 right but 0:52:19.680,0:52:23.359 average i'm about 0:52:20.720,0:52:25.040 20. okay like where would you guys be i 0:52:23.359,0:52:26.640 got another case my case what's a good 0:52:25.040,0:52:29.760 average 0:52:26.640,0:52:32.720 i'd say 20 to 30. 0:52:29.760,0:52:34.400 okay i mean somewhere in there but it 0:52:32.720,0:52:37.280 depends on the job 0:52:34.400,0:52:38.720 you know project base absolutely 20 30 0:52:37.280,0:52:40.319 25 30. 0:52:38.720,0:52:42.160 i mean we're just yeah i mean i don't 0:52:40.319,0:52:43.680 know 0:52:42.160,0:52:45.280 yeah i don't you know obviously big 0:52:43.680,0:52:46.800 facilities like you said the not gonna 0:52:45.280,0:52:48.480 be a little tight but 0:52:46.800,0:52:50.480 we we try to be in there but just 0:52:48.480,0:52:52.160 because it's a just 0:52:50.480,0:52:54.160 doesn't mean you can't go in at 10 15 0:52:52.160,0:52:56.480 percent right yeah sometimes 0:52:54.160,0:52:58.240 yeah because another very good wine you 0:52:56.480,0:53:01.280 came in big it's a big 0:52:58.240,0:53:03.200 multi-site like multi-score like 0:53:01.280,0:53:04.640 millions of square feet then that is 0:53:03.200,0:53:07.040 different multi-site 0:53:04.640,0:53:08.559 is a whole different scenario man our 0:53:07.040,0:53:09.920 overhead is really i mean compared to 0:53:08.559,0:53:11.920 i'm sure you guys have a lot obviously 0:53:09.920,0:53:13.280 more going on so our overhead's not 0:53:11.920,0:53:15.119 as crazy as you guys so that's why our 0:53:13.280,0:53:16.160 box is probably moving yeah we ain't for 0:53:15.119,0:53:18.160 bigger so 0:53:16.160,0:53:19.520 and that's probably 40 50. well but 0:53:18.160,0:53:21.520 that's the thing right so it's like if 0:53:19.520,0:53:22.480 you're going after 0:53:21.520,0:53:24.319 it's almost like you're setting up a 0:53:22.480,0:53:24.720 separate entity not a separate entity 0:53:24.319,0:53:26.240 right but 0:53:24.720,0:53:28.079 it's being managed completely right well 0:53:26.240,0:53:31.680 then you can go as low as 0:53:28.079,0:53:32.160 15 because it's going to be mads on its 0:53:31.680,0:53:33.920 own 0:53:32.160,0:53:35.839 yeah right i think it's important to 0:53:33.920,0:53:36.400 point out that markup and margin are two 0:53:35.839,0:53:39.280 different things 0:53:36.400,0:53:39.760 yes please so point that out you know if 0:53:39.280,0:53:43.040 you're 0:53:39.760,0:53:46.400 if you're marking something up at 0:53:43.040,0:53:46.880 30 percent your margin is probably only 0:53:46.400,0:53:50.480 20 0:53:46.880,0:53:53.599 26 what is it 33.3 is 20 0:53:50.480,0:53:55.280 right or 25 well 25 percent 0:53:53.599,0:53:57.440 so that's a good point markup is 0:53:55.280,0:54:00.800 different it's different 0:53:57.440,0:54:04.240 it's different all right so 0:54:00.800,0:54:06.640 let's wrap things up right as far as 0:54:04.240,0:54:08.000 we've got some of the takeaways we'll 0:54:06.640,0:54:09.760 we'll highlight some of them why you did 0:54:08.000,0:54:11.839 a good job that kind of really just 0:54:09.760,0:54:14.880 laying it all out for everybody right 0:54:11.839,0:54:15.599 uh but thank you guys right it's good to 0:54:14.880,0:54:17.520 be back here 0:54:15.599,0:54:19.280 somewhat somewhat right it's gonna be 0:54:17.520,0:54:20.800 good look at this look at the scenery 0:54:19.280,0:54:22.800 that we got here guys 0:54:20.800,0:54:24.880 let's do it cheers we're about done here 0:54:22.800,0:54:27.599 so it's gonna wrap up with another one 0:54:24.880,0:54:28.880 cheers cheers cheers thank you guys i 0:54:27.599,0:54:31.920 hope everybody 0:54:28.880,0:54:34.319 enjoyed this episode uh a lot of nuggets 0:54:31.920,0:54:35.119 to to learn from we'll be highlighting 0:54:34.319,0:54:37.280 some of them 0:54:35.119,0:54:38.559 um make sure you subscribe to the 0:54:37.280,0:54:39.920 channel uh 0:54:38.559,0:54:41.680 you know check out the comments and the 0:54:39.920,0:54:43.839 notes we'll we'll give some feedback 0:54:41.680,0:54:45.200 like on divi what saul was saying and 0:54:43.839,0:54:47.280 highlight some of the other points so 0:54:45.200,0:54:49.760 again until next time thank you guys i 0:54:47.280,0:54:49.760 appreciate it 0:54:50.839,0:54:56.000 salute 0:54:53.359,0:54:56.000 oh