 Good afternoon, everybody. Tom Stewart here with Willis Trotter. This is Sport Business Moves. Hey, it's Tuesday, the 23rd of February. Hi, y'all. Anybody that got out in here right on time, did you see Tom's face? That's because I like to throw things out of your way. Yeah. Look at it. It's just fun. It's fun to me, y'all. Yeah, we were talking about, hey, Leslie, we were talking about software platforms to manage mastermind groups. You pitched G Suite. I mean, that's just Google Drive, right? No, but G Suite is a whole suite of things. They have Google Talk. They have, there's just a ton of things in there. And it's so. I got a bunch of stuff. Yeah, but don't they have Tom? Come on. So they do have a communication platform that would be good. My audience is fucking me right now. My gosh, this is like second day in a row where I'm going to have to do some kind of personal maintenance on the call. Maybe not. Do I need to take you out of the? No, I think I'm OK. I keep thinking I have something in my eye, but maybe I'll be OK. Hey, Debbie. Hey, Leslie, were you here yesterday at the end of the call? Were you in on that conversation when we were talking about? That conversation? The normalizing of the employee conversation. Were you in on that? Or Debbie, either one of you guys were either. Or anybody that's here. Was anybody? Want to admit to that? Did you survive? If they were, if you were in your bag here now, hats off to you. Yeah. Yay. But I'm wondering what, if any, I'm guessing none of you guys were there. Hey, Susan. No, I had an appointment. What happened? It was really long. Oh, my god. Oh, dear god. Leslie, good day to have an appointment. Yay, good on you. Oh, Debbie, either. All right. So I don't think any of these people were here. That's OK. It's going to be better today, y'all. I was not. None of the people were here yesterday. OK, that's good. I remember through yesterday, you probably decided to take a day off, maybe. Everybody had stuff going on. Mondays are hard, hard. We were trying to have this conversation about the value of normalizing your employees for the purpose of price increases. But we realized that we really are talking more about rate adjustments than price increases. I was there just not to the end. Yeah. Smart move, Leslie. It'll be good. We got that all figured out. Yeah, so we're going to try and backtrack off that we had going on yesterday and try to rework it. And do it a little bit more concisely. Oh, but we got some new info, huh? We shared this yesterday, but since we've got some people here today that wasn't here yesterday, and since Tuesday, I'll share this again. They're going to be making some tweaks to how PPP application for round two is going to be working, where I guess starting tomorrow for the next couple of weeks, at least according to this article, that they'll only be processing applications for companies with fewer than 20 employees. So if you've got fewer than 20 employees or 20 or fewer, I guess that would be increasing your odds that you're going to get a favorable outcome quickly. If you've got more than 20 employees, I would think that you'd want to get together your information and do that application for tomorrow. Yeah, Linda, Danit, if you guys, one of you guys, could you copy this information and help me remember to get it into group for receipt lady? We need to her to have this information ASAP. If this individual has more than 20 employees. And less than 20, but there's a sticking point for her. She needs to know that this is happening. And how is it two weeks, right, Tom? Two weeks, yeah. And the other part of it is the way the rules of the law is currently written, the application process goes away completely at the end of March. So anyway, slice it. You've got about five more weeks, I guess. Yeah, exactly. Yeah, Susan, thanks, you guys. I appreciate it. Thanks, Susan. I mean, yay, Susan, you already got your second round. I think a lot of people have gotten their second round, but they still have quite a bit of money left. But now they're really trying to get it. They've allocated less than half of it. I mean, there doesn't seem to be any concern that they're going to run out. Yeah, just they change things. So you never know. You know, I'm concerned that after, yeah, I don't know. I don't really have any kind of big concerns. I just know that they change things. And so sooner is better on this. Get your money, get your money. Get your money now. Get your free money. Yeah, free money. Okay, well, this is where we were yesterday. Just seeing that is stressing me on the top. Let's just go ahead and get this over with, okay? Okay. All right. Let's take our medicine and stop whining. Okay, here we go. You're going to have to kind of start at the beginning, but we're going to talk about it as far as rate adjustment. So that's going to make it easier. Yeah, well, why don't we start with something that we can all agree on? If we can get a higher average bill rate per cleaning will be more profitable. We all agree on that, right? Absolutely, everybody agrees, right? If you're getting $45 per hour, you'd rather get 46 as an average across your company. I don't think anybody's denying that. So yes. So the question is how do you do that? And you manage the process and you can't measure it, you can't manage it. And averages are one thing. Averages are awesome, but averages are comprised of, if your average is 45 and you're shooting for 45, that's awesome, but you know what? You've got a number of services that you got, a number of homes that you service on a regular basis that you're making more than 45, the A team, you've also got a number that you're making less than 45. Not everything, not all of them are exactly 45. So the key is, and you know, if we graph this and I need to do this, I need to show you with some real data. I've done this before in times past. If you do a graph of every one of your customers and you line them up where on one side of the graph, these are the customers that you're making the most money off of, the most profit, not the money they're paying you, but you're subtracting your cost of goods sold and some reasonable allowance to cover your overhead. You go across that graph, by the time you get to the end, that graph goes up pretty steep, then it starts to flatten off, then it starts to get flat, and the very end for the last bit of customers you have, it drops off a little bit, it goes down, which means if you don't want to fire them, but you really need to do something with them, you need to charge them more, reduce the scope of work to get cost out of it, make some type of adjustment because if you just keep doing what you're doing, you're making less money by cleaning those last few homes or what you would if you didn't move them. So, but you're not saying, put your fastest people on there so that you're making money off them now. No, that's kind of a- That's what my people do, right? Illusion, if your solution to making money on underpriced homes is to put your fastest people on them, you're still leaving a lot of money on the table because if you put your fastest people on your highest priced homes, then they can claim more of those highest priced homes and arguably you'd be making a lot more money, right? Yeah. So it's not about getting the average, it's about getting the minimally acceptable level adjusted for how fast your cleaners are because this is the part that will mess us up and a lot of times create a lot of confusion that some technicians are faster than others. We all know that, right? Yeah, absolutely. So when you look and you say, well, I'm only making $40 an hour on this particular home, it's underpriced and then you go, well, wait a minute, I've got Tom cleaning it and we know how slow Tom is. So no, you're confused. It's like, do I raise the price? Or I just take Tom off of that job and put Liz on it because Liz is a lot faster than Tom. And keep in mind that while we're talking about this too, we are talking about matching quality. So right, the quality score is the same. The quality score is scoping more, everybody's getting the same outcome. Yeah. So. Linda. Let's jump in a little bit. And I crouched some numbers yesterday. You know what? I wound up not saving it. Going through here. Oh no. Teach Tom how to clean faster. Leslie, not much hope there. Not much hope. That is a strategy though, right? Yeah, absolutely. Absolutely, get Tom to be more productive. Absolutely. Definitely a strategy. Yeah, I'm kidding about that. Yeah, you certainly want your slow people to become faster and that's a whole separate discussion. I guess we've kind of covered that all the different ways that we can do that through creating accountability, providing feedback, coaching, the training process, making sure we got the right tools, the right equipment, the right cleaning products and to verify that they're using them all properly and that they know what they're doing. We looked at this yesterday though and if we pretend that this is Liz's time up here, let me see this, this is too small, isn't it? I can see it okay, I don't know if everybody else can. I have a ginormous screen, remember? Okay. My screen's like 48 inches. And these are the allowed times for all these various jobs and the allowed time is the time that we would anticipate what we call the normal worker or in our case, the normal cleaning professional, the average, the one that works at an average rate, it would take them to do it. And for these 30 jobs, and we're doing like a sample of 30 jobs that Liz has performed because a lot of times in the lack of having better data, 30 is a pretty good sample size to make some type of judgment in terms of what the average truly is. So we got 30 homes that we sampled and these were the allowed times of the homes that Liz claimed and these were the actual times that Liz claimed. So you add up all of the allowed times, it comes up to be 95 hours, you add up all of the actual times, it comes up to be 79. So I take the 95, the allowed time divided by the actual time, the 95 divided by the 79, that gives me 1.2 in change. So that means Liz is, let me do this, her average productivity is 120%, okay? Okay. Let's pretend that we're, we do the exact same thing for Tom. Okay. Well, we've already established that. Thomas? Not an awesome cleaner. He's a little bit slow. This is what we're gonna do. We are going to flip flop, the allowed times and allowed times. I don't know how you're gonna do that Tom, that's smart. So what we're gonna say in this case is the allowed times for Tom, for the 30 homes that we sampled for him, wound up to be 79, and the actual time wound up being 95. So if I do the arithmetic, Tom's average productivity is 83%. That's not awesome. Nope. So what does that mean if you've got a house here that they allowed time, let's pretend is four hours. Okay. If Liz cleans it, we would expect Liz to be able to clean this home here in four hours and... 120%. 3.3. Very exact same home. We would expect Tom to take, that's pretty big spread. Yeah. We agree. Oh yeah. Hour and a half difference there. Could clean another house. But we deal with that like on a regular basis. I mean, that's not uncommon to see that, right? I'm not sure that people actually do this math right here, Tom, so I'm not sure that people actually see like the huge disparity. I think that it seems more subtle, without doing the actual math. Intuitively, we know. I mean, if we're doing schedule intuitively, you know that Liz is going to get done a lot faster than Tom because that's just the kind of the way that works every day. Yeah, because Liz always gets done faster and it always takes Tom longer. Yeah, we know that, but I don't think people usually do this math. So, and we're talking about this in relation to like rate adjustments. So, when do you recommend that this be, this be done like on an individual home or how do we use this information, Tom? I know we're not there yet. Sorry. Let's go. We're going to get there real quick. Just one thing. Say that we're doing our pricing, we're quoting new jobs, our goal is to get $45 an hour, okay? And we estimated that this home is going to take four hours, so we would be charging $180 for this home. No, that's awesome, but when I look at the revenue per hour I'm getting, let's do this, the revenue per hour I'm getting for Liz, I'll just do it right here. I take 180 and divide it by 3.33, that's 54 an hour. So I'm thinking, wow, I'll price that, I'm killing it there, right? You as the owner are getting $54 from my work. Right, I'm getting more than what I was shooting for. I was shooting for 45, but I guess I quoted higher than I should have. I mean, intuitively you kind of know, well, this is fast so I expect for it to be faster. This is where we get ourselves in trouble. If you look at Tom, they only count. I'm only getting $37 an hour with Tom. I must have underbid it, you think? Do I need to raise the rate on this? I think what some people do, and a lot of people do, is they're like, I can't raise the rate on that because the only reason it's coming in at 37.42 is because Tom's cleaning it. So I have to be able to count on that Liz is cleaning her house as faster to cover that 37.42 that, to cover Tom's money. As far as percentage does well for us most of the time. Yeah, like charging percentage. But let's do it, let's do it another one. Let's pretend that Liz cleans this house in her actual time lines up being 3.75 hours, okay? Let's blow this up so it's easier to say. So it was 3.75, I can take this $180 and divide it by that. That's 48 an hour. I still think I'm doing pretty good, right? I'm making more than the 45. Yeah, like Liz is still making you a little bit more money. It's a good thing she's fast. So yay, yeah, that you are right, right Robin? So this is where this little trickiness comes in. And in Tom's case. And when Tom is slow, so he's doing it for sure. Tom's already slow, but Tom comes in. Well, try him still at 4.81. No, I want to do it at 4.25. Okay, so just a smaller gap. Yeah, Tom's still slow, but he's not horribly slow. And I'm going to go over here. Oops. Maybe he had a little bit of change there. Okay. I mean, these are actuals, okay? So let's just pretend this is actual. So I would look at this and say, well, I guess I did okay with if Liz is cleaning it, but I'm still not making what I need to make when Tom's cleaning it. So, Denise, this example here is assuming that Tom and Liz both have cleaned at least 30 houses to be able to have gotten this number. So it doesn't look like Tom's going to be getting a whole lot faster. Now again, like Leslie said earlier, we can give some more training to get Tom faster, but at this point in time, even if you do really excellent training and you have an ongoing training program, I think everybody's going to recognize that you have some people that are faster and some people that are slower. You don't typically have a situation where every single person in the company cleans at the exact same speed. So that's kind of what we're talking about here. You know, I love you guys today, this group of people here are asking questions. Yesterday, poor Tom and I were like, where are all our regulars? I'm glad I'm having you guys back. Thank you. Thank you very much. It was a lonely place here yesterday. Very hard. All right, so we'll also keep scheduling efficiency in mind. If two clients are next door neighbors, we can accept less per maid per hour than if there's more travel time. Oh yeah, absolutely, right? Yeah, us too. Like if you can bonus up all your clients in one neighborhood on the same day. Oh, that's such a win, yeah. Do you figure your production rate based on the average timing of slow fast cleaners? Yeah, that's what Tom's going to be showing us here. This is that normalized idea, Susan. Okay, so we are going to do normalized actual time here. These were the actual times. And the way that we do this is I go back to these productivities and just... What do you mean by these? Oh, I gotcha. Liz is 120% at 83. I gotcha. Let me do this. I'll just put it here as it fits. So on the average, we've already determined based on our sample size of 30, that Liz's productivity is 120%. And Tom's productivity is pretty disappointing, 83%. Oh, thank you for changing those two percentage. They're hard to read when they're all decimalized out. Okay. Any words? This is giving back to what Robin's talking about here. This is misleading when we look at the actual times and trying to figure... Hold on just a second, Tom. Robin, you are on a different platform than the other people are. You only see the questions from the platform that you're on when you're on Facebook. So like if you're in modern cleaning and everybody else is in cleaning, where I don't know where they might be, cleaning profit builders, then you're only seeing your questions. So that's why. I know, it's so frustrating when that happens. Yeah, maybe we need to rethink that. I don't know. Like eight different places. Yeah. If you're... Persindicated. See the people that are... Persindicated. Yeah. So that's what's happening. All right, so go on Tom, sorry. I just wanted to... You know what we should do? We should start doing these on Zoom where everybody could actually have a discussion. I think that would be a heck of a lot more fun. I would love it if... Would you guys be down with that? Like if we did these on Zoom calls, would we still participate or would it be too complicated? For my standpoint, it would be more enjoyable. How about that? But it's not about me. A little bit. A little bit about you. This never about me. You got to bring the good. So it's got to be at least a little bit about you. Maybe Tom can just find another job. Oh, Linda, that's awesome. I'm thinking it's an amen to Zoom, not an amen to Tom getting another job. I'm down with all of that. Yeah, we got Zoom there, okay. Yeah, everything that Zoom is good, Tom. Yes, I would love it, would love Zooming. Well, you know, and we could take the link and post it in all these Facebook channels and rather than go to Facebook and doing the Facebook live, you could just click on the link and let's think about that. All right, Debbie, so she doesn't have the capabilities on her desk. When I don't, Debbie, if I'm somewhere, I just use my phone. And even though it's small, it's usually pretty darn good. I do love it on my phone. Okay, let's get back to it for this, though. That's good feedback, guys, thank you. If I adjust this actual time of 3.75 and if I normalize it where if a normal cleaning professional was cleaning this home, it would take them four and a half hours. And if Tom was cleaning that- Hey, why four and a half hours, Tom, and not four hours? Why not the allowed time? Where are you getting, oh, because- I'm taking the actual time. You actually took 3.75 in this example. Okay. 3.75 times 120% comes out to be 4.5. Okay, so if I was producing at my normal rate, this 120% productivity rate, then it would take me 5. If Liz wasn't cleaning this home, if somebody who worked at 100% was cleaning this home, it would take that. So this isn't a Liz number right here, 4.51. This is the normal operator time. So this is- Maybe put the normal operator under Liz and Tom because it looks like that 4.51 is on the Liz line. Well, it is. Just can make you accept the fact that these are the times that a normal person would take to clean these homes. Okay. Look at that. And if a normal operator was cleaning the home that Tom took 4.25 hours to do. Okay. They would have taken 3.5 hours. Okay. A normal operator would be faster than Tom, but a normal operator would be slower than Liz. Okay, but isn't this the same home? Yeah, but you cleaned it one time and I cleaned it one time. Yeah, but so isn't the normalized amount, the average of these two? I'm making these numbers up. Maybe it's a different home. Okay. Pretend they're two different homes. They both have a long time of four. I mean, it doesn't really matter. The fact is, this is the number that you would want to make some determination. Is it priced right? Because the actual, if it's two different examples to prove a point. So pretend they're different homes. I guess that would make more sense. Yeah. That in Liz's case, even though it looked like I was at a price right, actually I should have allowed an extra half hour because I'm only making 40 bucks an hour. And in Tom's case, it looks like I'm under priced, but not really because if I already do the normalized time, a normal operator would be making 50 bucks an hour. I'm really, you know, have an hour, half hour rather more than I need. All right. So this is going to your question, Robin, earlier about why would anybody pay more for the lower price cleaner, right? If somebody's too slow, but looking at what Tom has here, does this confuse anybody? We have the lowest priced, the slowest customer, sorry, the slowest employee is generating the most money, normalized money per revenue hour. Forget about Liz and forget about Tom for the moment and we're home and just the overarching point is when you're looking at how many hours it took and how many hours did you think it took? Which was going to take rather and did you price it correctly? And it really isn't about the price, it's about the hours. You need to be estimating how long it's going to take and then you need to see that it take that longer or not. And if it took longer or if it took less time, however much time it actually took, if you have the ability to adjust that actual time based upon productivity numbers, that's the number. The normalized time is the ones that you want to compare to your allowed time. And that is what you need action on. To see if you need to adjust this rate or not. Right, if it's too, just because your actual time is more than your allowed time, is it necessarily mean that you quoted it poorly if you've got a slow person cleaning it? Right, if your actual time is in this case, or excuse me, actual time is less than your allowed time, it doesn't necessarily mean that you priced it, that you estimated it correctly either if you had a fast person cleaning it. Right, so ignoring all these numbers, you guys, just thinking logically, this is what we're trying to get to. If you have a fast person cleaning a house, let's say you have a new customer and you're trying to determine whether or not you priced them correctly because it's brand new and you wanna make sure that you get the pricing right, you would not want to just take Liz's time in the house and say, oh no, okay, I didn't price it right. Conversely, you also wouldn't wanna take just Tom's price or Tom's time and say, uh-oh, I didn't price it right. Instead, you would want to get this normalized time whatever your normalized time was. So that's the number that you would use to determine. So if Tom was the one that cleaned, you wouldn't use the 4.81, you would use the, I guess the normalized of 3.53, right Tom? Well, if Tom's cleaning a four-hour house, you would expect him to take 4.81 hours. And what's the normalized number though? Well, the normalized allowed time of four. Okay, so I'm lost. So we're confusing him. The allowed time for the home is four hours. Yeah. Right? So why are we doing all this then? We already had that number, that's the number we started with. If I'm trying to determine if that's, if I priced correctly or not, I thought I wanna go look at the normalized actual to, and now look at the four. These numbers here are basically just showing you at these percentages, how long? They normally. Somebody 120 and somebody at 83, okay? So this is just pure arithmetic. Yep. I made these numbers up to illustrate a point because I look at this number 3.75, which is less than four. I think I priced it well. I think I guessed right and that's good. I don't need to do anything, but that's misleading because Liz is so doggone fast that if I normalize it, it's like, crap, I should have priced it, you know, an extra half hour on that job. Which is what I said, that you should go to the normalized actual and that's the number that you should be making or determining. This should be the number that you would, you would increase this particular half hour. This is Mrs. Johnson. We're trying, we charged Mrs. Johnson $180. We have her down as four hours and Liz cleaned it, for this example with Mrs. Johnson, Liz cleaned it in 3.75 hours, but it was a four hour job initially we set up. That means the normalized actual for Liz would really be 4.51. So that's actually underpriced for Liz to have cleaned it, where we would probably think, and again, I'm trying to point out that without looking at all the numbers, what our natural way of leaning, what seems logical, excuse me, what seems logical is, oh, I must have priced it really well then. I know Liz is fast. She got done faster than the four hours, so I priced it well. Look, it's good. Or I priced it for four hours and Tom was only 4.25. I know he's slow, so good, I priced it right. And so the point is that the math shows you that that logic is actually not logical because of the normalizing. In Liz's case, if you're shooting for $45 an hour, sort of charging 180, you would probably be better served to charge 202. All right, so now I got a question. Does everybody on here understand why if Liz cleaned Mrs. Johnson's house twice, let's say, okay? And her actual time in the house averaged out to 3.75 hours that this job was actually underpriced at 180 and should be 202.93. Does everybody understand that? Yeah, I'm afraid of that Tom. Okay. All right, so this is, I'm gonna try and say it a smaller way without all the numbers because when we start throwing in the numbers and we're trying to figure that out at the same time, it gets a little bit more confusing. So let me try this. So let's say we have, I'm gonna explain what normalized time is, didn't it, in a little bit different way. So, Liz is, no, it's so confusing, all right. It's okay, we'll bring this in. This will be the test before we're done. We will, all right. So Liz is normally cleaning the houses fast. Her average over 30 houses, she's 120% faster than the normal, then everybody, than an average employee is, okay? So we know that she's 120% faster. All right, so she cleaned Mrs. Johnson's house and it was set for four hours and $180 and Liz cleaned it in 3.75 hours. That seems fast, right? It is fast, she got done faster than we thought she was going to. So it seems like, oh, all right, so Liz is fast, we're good to go. And here's the problem, on this one house, Mrs. Johnson's house, Liz didn't clean 120% faster. She's cleaned a little bit faster. So that means, why? Why didn't she clean that house the whole 120% faster because we didn't charge enough? If we charged more money than Mrs. Johnson, Liz still would have come in 120% faster. Yeah, yeah, I was like, did I say the word faster or did I say flatter? You said faster, you're right. Okay, trying to explain to Mrs. Johnson, why I'm going to charge more for Liz than she early is a hard sell. I will give you that. Well, it depends, if you're selling by the hour it is, you remember we had some discussions in the past where I was advocating for doing flat rate pricing. Where are you? I totally am for flat rate pricing, but Tom, if Mrs. Johnson is in the home and she's already decided, she asked you on the phone, how long are they gonna be in the house? And you say, well, it kind of depends on who's in the house. We don't really charge by the hour. She's like, well, I need to know how long I have to be here. Well, you can figure on maybe being in your house somewhere between three and five hours. All right, then Mrs. Johnson gets it in her head. All right, then it takes four hours to clean my house. That's what she thinks. So as soon as Liz is out of that house in less than four hours, because she was there the whole day watching, that's why she was there, why do you wanna raise my rate? Liz was there. You said it would be three to five hours. She was only there like three hours. And of course, the exaggerate, she was only there like three and a half hours. Why are you raising my rate? It's a hard sell, but I'm going to, that's right, Denny, we don't wanna tell them how long we're going to be there or how long we were there, any of that stuff, which is to Leslie's point. And you're right, it is a hard sell once it becomes about the hours. So you have to, again, pull that back and get the customer to understand that they're paying for the value and for the job to be done. And then Tom, so what is the spiel to say to Mrs. Johnson who's like, I don't understand why you're raising my rate. Well, what are you raising my rate for? Because you can't say it took longer because there, you know, it didn't. Well, it did take longer than what it should have because we sent Liz and in this case, for Liz, we thought it would have been 3.33 and it was really 3.75 and Liz's time is worth more than Tom's time. So the math comes out to be 202. So you do bring it down to time then. You do pull it back to time with the customer? Well, there was more work than what we thought. I mean, you would have to, you'd have to try to tie it into, you know, the pet hair or, you know, the fur treatments or, you know, it was just more, you know, stuff to, you know, it was denser than we thought they, I mean, yeah, you would want to. And I get that information from Liz. Yeah. Liz normally would have gotten out of that house a lot faster. But Liz, what the heck was wrong with you? It took you, you know, why did it take so long? And I might not say it like that because it was set up as four hours a loud time, right? I don't want her looking at four hours, thinking she's in trouble when she comes in under four hours. But I might say to Liz, so Liz, normally a four-hour house is only gonna take you like three hours and five minutes. What was going on in the house that it took you longer than that? I would want to know. And Liz would know, oh my gosh, her tile is ridiculous in that house. Pure white and she's got three black labs and they run all over the entire tile as I'm mopping. All right, thank you. That's what I needed, Liz. So, you know, Liz is talking about, you know, she charges by the hour. I mean, maybe the strategy is she sends Tom to all of her first time ends and Tom's really slow and she's able to get it, get top dollar and then gets them on recurring service and Liz picks it up from there and you're making real money. Yeah, I understand Leslie. This concept is a challenging concept. This is not a concept that most people just pick up the first time they hear it. They're like, oh, okay. So you kind of got a noodle on it a little bit, but do you charge by the hour? Does it change? Do you change the price every time the cleaning happens? So like if Liz goes out and gets it done in three hours, do you charge less than if Tom goes out and gets it done in four and a half? Because if that's the case, then you're normalizing it in a different way. It's a different type of normalization. That is what Patrick, what's his name? What's his name? Patrick up in Canada? Irwin. Irwin, Patrick Irwin does. However long the team member that he sends to the house cleans, takes to clean, that's what he charges for. So it's kind of almost like percentage when you do it that way, right? Because they're always getting the same amount of money. No, we have a set price and everyone can get it done in that time. So ideally that's great. Do you, what do you do with people that get done faster Leslie? That's kind of where this opportunity lies. So if you have somebody like Liz who's getting it done faster than everybody else, do you make any changes? I know at least two companies, I'm pretty sure Maria was one of the people that when she would have somebody that was really fast would feel compelled to give a price reduction to the client would say, hey, we're able to get the house consistently done and this amount of time. So we can give you back, your price is gonna go down by eight dollars. Well, I mean, if you wanted to follow that routine, then if you looked at the Smith house, which Tom cleaned in a 4.25 hours, but if you adjust the allowed time of four hours by 83%, the normalized time is 3.53. If you wanted to do what, no, that didn't work. Like wow, Tom, that's some good money. Maria was suggesting you would lower their rate to 159. Yeah, but I think what most people do, Tom, is what's the average of your 202 and your 159? So let's see, it comes down to efficiency training, absolutely efficiency training is not to be denied. There's always something else to be done and call them wow factors and they make our client very happy. Gotcha. Every once in a while, we adjust the price but not too often. So normally you would, so I think that's what most people do, Tom. They're like, 180 is the average. Yeah. So there's no reason for me to even be looking at these because I've got Liz on the high end, I've got Tom on the low end, I got everybody else in the middle and the normalized average overall is what right around 180, except the problem comes in when you get a bunch of Tom's or a bunch of Liz's because then it really does skew it. I guess I'm gonna suggest that you can do that and this is what most people do, right? Yeah. And this kind of live on it. That's what most people do. But they don't really even do that. What they wind up doing is more like, what's happening over here, that they just leave it as 180 and go with it, no rate adjustments or anything. I would suggest if you're able to get the normalized, actual time, then in Liz's case, you would go to 202 and in Tom's case, you would leave it at 180 and your average goes to 191. Okay. So it's a way. So remember what we're talking about is getting more average pay per job ticket hour. Right? In a higher bill rate per job. An average higher bill rate for job. I mean, it's the whole topic here and by doing the normalized time, regardless of if the actual time was below or above what the allowed time is, you need to normalize that actual time. And if that is higher than what the allowance is, look for a rate adjustment. And so the reason why we're pointing this out is not because this is something that you should be doing every single day, every single time you clean a job, you shouldn't, you don't need to be looking at this. But when do you wanna be looking at, when is it time to adjust the rates on a job, Tom? Is there a time, is it something you do once a year, is it something you do? I guess, we've talked about this before and this is actually a process that I picked up from you that you taught me that we applied to Castlekeepers. It's after the first three jobs for a new customer. That's a good time. I think there's other times to do adjustments as well, y'all. When somebody gets all new flooring in their house, maybe they have a new baby, right? They do, when the scope of work changes, time to be looking at a rate adjustment. Or if they, the members of the house change. Vinnie, I know. So many calculations. Yeah, and Leslie, again, not arguing that there is a lot that can be done in training. I personally have just never seen a situation where any company was able to train all of their people to clean in the exact same amount of time. I just haven't seen that. And in this scenario, Leslie, make no misunderstanding, we're not happy with Tom being in 83%. I mean, that's a whole separate project that we talked about a couple of weeks ago that we're gonna be doing some work study, figuring out why the heck is Tom so slow and what can we do to improve Tom's time and make sure that we're coaching Tom to know that Tom is 83% to standard. And we wanna correct that. But if we do, we're still, we're gonna be making more profit yet, right? We still wanna make sure that we're adjusting the work that Tom does based on his productivity factor for finding out that the adjusted actual time is more than what the allowed time is. We wanna be looking for a rate adjustment. And we could do that with some confidence because if we're doing it right and they pick up the phone and call your competitor, they're gonna give them a comparable rate. Yeah, and that's what this is all going to, you guys. It's so that when, because you can't be raising the prices on your slow people because, and you can't have a greater scope of work than everybody else in your area and be charging the top dollar or your prices will come out so, well, you can, I mean, if you do it correctly, but if you're just advertising the same as everybody else does and you're just trying to fit into the same niche as everybody else does and you have a greater scope of work or you're charging more for slow people than pretty soon you're pricing yourself out of your own market because the other companies in the area are going to be charging the least that they can get away with, not the most. All right, so rate adjustments. Remember, this is just one thing. You don't have to mess around with rate adjustments at all. And if you are going to be doing rate adjustments, this is just one way of looking at rate adjustments is to be looking at the normalized employee hour. But there are lots of other things that you can do as well, okay? So just one idea. And I kind of want us to just be able to move on from this because a lot of times when there's really complex ideas, Tom, it takes people a while to let it marinate. They got to think on it and be like, because part of it just doesn't make sense when it first hits people. So basically what you're telling me is I should charge more for my employees that are really fast. They are getting it done faster. So now I'm going to get paid more per hour than my goal. And that even though I'm already getting paid more, I'm supposed to charge even more now. It doesn't seem logical. So they have to get past that little hump. Okay, awesome. Leslie loves it. She says it's been really interesting. Yay, Leslie, thank you. At the end of the day, one of the cool things about owning your own business is you can do it however you want to do it. So if there's anything in here that's useful to you, awesome. I mean, we're throwing a lot of stuff at you and by no means are we suggesting do all of this because you can't do all of this. Or if you can, I mean, it's going to be a long time coming. Do the stuff that's easy to do. Do the stuff that makes sense to you. Yeah, the stuff that makes sense to you and your company and all the other things that you do. How does it play with all the other activities that you have? That's one thing that we notice that a lot of companies do that we really, really recommend against is don't just hear a great idea and just say, okay, I'm going to start doing that great idea. You have to check and make sure that that idea plays with all your other awesome ideas. For example, if you run solo teams, don't look at your competitor's amazing magic mops car that's so cute and decide I'm going to get cars because I love them. I mean, maybe you can afford to do that but typically people don't have wrapped cars and solos together as a business model. So you definitely have to check and make sure that everything that you're doing plays together with all the other things that you're doing. So if this fits in with what you're doing, if you can see how this could, oh, this could actually really help me and bring some money and the reason why I love rate adjustments is in those first three cleanings, you can raise a customer's rate easily. They're happy to have their rate raised in those first three cleanings as long as they knew it might be coming in the beginning and you can give them some reasons for why they're raising rates. And then for the next 10, 11 months, I'm getting that high rate until I give them a rate increase. So that's the reason why I love rate adjustments. Otherwise, it's a struggle for the whole freaking year you're struggling trying to get Tom to go faster, get the scheduling person not to put the wrong person on that job, trying to make it work, trying to cut some corners here and there. If somebody does, it's like, yeah, but we're not making money. So maybe it's just a whole big thing. If you get the right price upfront, you're making more money for a longer period of time. And you can just checkmark on Mrs. Johnson. Yep, making money there. All right. So what about the average? You got to look at each and every home on its own merits and make adjustments for who's cleaning that home to determine if you're pricing it appropriately, pricing it as high as you should be. And I don't hear rate adjustments and we're defining it here as, we underestimated how long it would take to clean the home. So we need to make an adjustment. We need to raise the rate. Rate increases is another dimension of this. And we've talked about that previously that if we don't do rate increases and these are for cost of living, often, you know, and that's something we do on an annual basis. Nobody says it has to be on an annual basis. You can try to do it every 10 months, every 11 months. If things are changing where minimum wage is going up or you have to take on some additional expenses for PPE and other things because of an unprecedented event, we're having a pandemic, you know? If you got a justifiable reason, you can rate increase rates whenever you have a justifiable reason to. In time, I don't know if you don't do it. Unless it's got a little point here and in this scenario that we're pointing out, Tom never gets large houses, Liz gets them all because Liz is making more money on those big houses, right? But if you're not careful and if you're not using this normalizing idea, Liz can get burned out on always having to do all the large houses and feeling like it's not fair because Tom gets the easy cushier jobs because he's slow. So there are some reasons why you might really want to do this. All right, go ahead, Tom. We talked about rate increases, I guess a week or two ago. And this is an example of like over a 10 year period if you had $500,000 worth of recurring revenue and you didn't have any homes, you didn't lose any homes. Obviously it doesn't work that way but just to illustrate the point if that was the case, then over a 10 year period you'd still be charging and generating revenue for the year of $500,000. If you did 3% increase year over year then it would come out to be $671,000 that you would be charging 10 years out. No increase, red line, just a modest 3% green line. I think Leslie was saying 3% was her sweet spot too. So I mean, that's a good chunk of change right there, right? Off that 3%, $172,000. So if you were neglecting to do that, yeah, that's $172,000. Now, in reality, you got this thing inflation that's going on, which means that the red line wouldn't be flat. It would actually be going down in terms of real buying power because things will cost more 10 years from now than they do today as a rule. And the green line still goes up a little bit, not as much because really, that 3% is just kind of keeping up with inflation a little bit more than inflation actually, but in real buying power, the difference is $135,000. But in either case, it's really painful if you don't do these rate increases on at least an annual basis because what happens is over a few years, you go back and look at the revenue per hour you're getting and you're so far out of whack that 3% doesn't fix it. And then you're back to the rate adjustment thing. It's like, gee whiz, I'm gonna have to raise rates 25, 30, 50% in order to get to where I need to be in today's market. And most people have had this situation even if it's not like in the beginning where you're not raising rates but super nice, Mrs. Smith, she's old, she's retired and you don't raise her rate for a couple of years. And then three years in, four years in, you haven't raised your rate and you're like, I can't really afford to clean Mrs. Smith anymore. I mean, now we're actually losing money when we go there. I had to step away, but just, you know, when we set up regular service for a client, we tell them that we have an annual price increase of 5% on their anniversary. We never have an issue from anyone as long as they know upfront. It's true. People do not mind getting that annual increase if they know it's coming, the same thing with rate adjustments. They don't mind when they know it's coming. That's what they signed up for. So that's like, oh, okay. That's what I was waiting for. I was waiting for it to come. That's good. That's good feedback. Everybody, thanks for participating today. Thanks for helping us out. Be glad you weren't here yesterday. Thanks, everybody. Well, it's top of the hour. So we'll see you guys tomorrow, five o'clock east or bye-bye. Bye, y'all.