 Hey, good afternoon everybody. Tom Stewart here. I'm with Liz Trotter. This is smart business moves. It is Monday February 22nd. Where did the month go? We still got another week Tom. I'm holding on to that week. I need it. So yeah, I Moved my screen so y'all can see my cat there. Yeah Hey, Olivia. The cat is Cleaning herself. She's grooming. Yes. It's doing a little bit of grooming up there. Good girl. We did an ad campaign kind of on the same lines and the question we asked was why clean yourself? That's good. I actually like that. It's cute. No reason not to get somebody else to do it. That's right. Oh, please don't take yourself. Some people thought it some people thought that was a little lacking in taste, but Yeah, hey Leslie happy Monday You saying that it was lacking in taste just took my mind to so many different No pun intended there So how was your weekend Tom? See, how was the weekend? It was good. Actually got a little bit work done Did a little a couple of family things did a little yard work actually, you know, I do yard work now No, I did not know that gig after you know after I do everything that on my list I need to accomplish in the house cleaning arena Then you do a little yard work. No, I did not know that I Guess I could picture you riding around on some sort of a machine or something No, this is all Manual labor or some chainsaw action involved You don't have a what are you gonna chainsaw? There's some trees here and some things with large enough branches that you wouldn't want to do it with a hand So how about that? Oh, yeah Hey, Linda. Hey, Starlene. Yeah. No Well, yeah, it's been raining pretty much either raining or snowing here pretty much for the last I don't know two weeks. Nobody's doing anything outside here so First of course the world has been hit and miss here too a lot more cloudy days than Sunshine here for the next couple of weeks the weekend was pretty though But it's kind of gloomy now, but it's supposed to be nice the rest of the week after this last thing goes to And it really is so pretty there One thing I remember about being in Charleston was it felt like the sky was bigger And Charleston I guess it's because you guys don't really have a lot of trees like we have And mountains Well, you know, there's some people that might argue the point about trees and how awesome the trees are here Okay, so to be clear He's you're talking about Kelly and she never said that they were awesome. She just wanted to know more about them So I wanted you to tell her about them. I think she was impressed Yeah They were different than than what we have here. Yeah, I'll give you that We saw it, uh, you know drove by a A plantation and gave her some ideas to how big an old oak tree could get And all the grasses she really did like all the grasses. We don't have all those grasses I do remember that well Yeah, the the different things you think about when you go to Charleston, right? Looks like it's your cat's really busy now Sorry Olivia Why clean yourself Um All right, well, how was your guys weekend? Did you guys all have good weekends? Yes So hard I I don't know if you guys know this or not, but the camera for us is backwards on What's the name of the stream yard usually When you're doing facebook live or whatever it's the same as normal, you know, like whatever this is my right year and then I could I don't even know how to explain it. It's reversed Here on stream yard, then it would normally be in in a mirror So it's hard to like right now i'm pointing. Yeah, it's hard to explain. I'll look this way But it looks like i'm looking the the other way. Yeah, it feels feels odd. It's awkward So trying to cover up my cat is not as easy as you might think Oh What do we got here now? This is uh news that came out today. This was out this morning A couple of tweaks to the ppp or at least this is what the article here is Saying i'll uh copy this and drop it In chat um The biden administration is making some changes to make the monies more available to smaller businesses minority owned firms and sole proprietors ships Starting this wednesday for a two week period They will only be taking ppp loans from companies with fewer than 20 employees. Oh, wow. So really small all right so If you have a smaller firm that can be good news If you have um A larger firm You and you have an applied jet you might want to do it tomorrow Or today if you're on any place except the east coast you still have time today right so central pacific mountain Get your booties in there and it's not hard. You just have to get it done today or tomorrow Sounds like otherwise you're gonna have to wait Two more weeks According to this yeah Yeah Okay, that's great news. I do know a small company that has been trying to um Get get do some prep work to be able to do this and i'm going to tell her We received ours too leslie, but I know that a lot of people haven't even applied yet. So I know I know a few people that didn't get any they weren't eligible. I'm like, oh Uh, that's hard. Sorry, but then again if you're doing so well that you're not eligible I can't feel too sorry for you. Not a little bit but not not too sorry Um, okay, so let's see. Let me write this down so I don't forget To tell her okay You're good. Yeah. All right. That's good good news tom. Thanks for that Hey, um Oh, did you block this tub craft coatings person? Mm-hmm. Okay. They're on almost every time we're on It's not a business, huh? I don't know I don't know who they are. Yeah, if I don't know you I I'm If you're if you're a friend, let us know and I'll I'll fix that. Oh, they're blocked Well, if you whoever you are tub craft coatings If you are a legit business that really wanted to get on here and watch the facebook live I reach out to me on my facebook page list trotter and I will I'll get tongue down block you Have you noticed some of those uh like Bad things floating around in facebook like where people's accounts are getting hacked. Mm-hmm So I have If you if you get a like a facebook messenger from somebody saying hey, this is video You're in this video. Don't click on that Yeah, I've got like four of those just today Well, I'm getting a couple Yeah, there's there's it's a big thing right now I mean they've always been around but they kind of go in spurts but today four of them. So Something big must be happening. Hey tony It's rampant. I tell you it's rampant All right, so I am doing my invisible line. So i'm gonna mute or Stop my camera. So y'all don't have to watch and put it in On You're so lucky. There you go. I had to go Is that like time sensitive was it like you're supposed to be in at 10 after uh 10 after the time of the hour two o'clock and you can only go two hours per day without having it in and today I had to go to the dentist and so I couldn't wear it because Of the fluoride treatment and I was supposed to put it on Put it back in before two o'clock and I forgot My oh my mom Yes, it was time sensitive. Yes, glad we got that Ernie's oh, yeah, I got one of hack one from Ernie today. Yeah, I got a couple from Ernie Yeah, oh leslie did that So leslie you're the you're the person you're personally are responsible for like all of these bad facebook things fling Oh Yeah My guess is a visible line, right? So you only could two hours, right leslie And I've already been out two hours plus I have to eat today at some point in time So I needed to get it in I'm not gonna wait a whole another hour But I save you guys I'm happy to look at it Guess what we're gonna talk about today. Um, let's see Now profit by any chance We're gonna be talking about Well, yeah, we'll one way or another we're gonna be talking about profit. No doubt specifically Guess what we're going to be talking about um average bill for cleaning I wonder if that could be it. I'm so smart. Um, thank you for that easy test. You're clairvoyant Personal problems. Yes, the need it it was a personal problem. You all got to share in kind of Between that and in olivia olivia's got personal problems Um, man, it's just it's a it's an adventure over here y'all. It's all our personal stuff we got going on Okay, well, you guys know the drill the great numbers go up the red numbers go down and today We want to spend a little more time talking about well, I guess for the first time actually the average bill rate per cleaning Sorry, it's no surprise to to anyone here that the higher your average bill rate is per cleaning the better your chances are You're going to be more profitable, right? Yep We'd all like for our customers to give us more money for every job that we do For So we're going to talk a little bit about why that's the case and why that's important And some of this Is is it is obvious but you drill down into it a little bit. Maybe there's some some aspects of this that Aren't quite as obvious but once you see it it makes it even more real Talked about quality yesterday. This is uh, this is where we are Get my stuff together No, um, uh when I was speaking of the dentist today when I was at the dentist there was a sign On the front, uh window that said due to the additional PPP that we are cost that we have incurred all visits will Um be receiving a ten dollar additional fee I was like, wow, that's pretty steep from A dental office where they already wore masks and gloves Like what I wonder what the additional ppp is so now they have face shields and they have to do more Cleaning and disinfecting So but I was like, wow I asked her she's gotten much pushback From the ten dollar per visit and she said no, she hadn't gotten any pushback But I think that's probably because people only go there once every four months Or if you don't want to pay the ten dollars, we just won't disinfect Yeah, we we won't wear any we'll sneeze in your face What are you gonna say, huh? I thought it was interesting. I was like, ah, that's good to know All right, so what are we looking at here? Let's see I might remember this is kind of where we were Uh last week and we were talking about the average revenue for a job And we were talking about, you know, how many jobs you do a month per recurring customer and both of those are green numbers The average monthly loss rate for recurring home. That's a red number And are loaded direct payroll to revenue, which is a red number We know all that you do the math And based on $150 per job two jobs a month with a five percent attrition rate um That gives you 20 uh months worth of service because it's one divided by the uh monthly loss rate to to give you the number of months of service So you do the math multiply 20 months times two jobs times 150 That's $6,000 in lifetime revenue on the average 45 percent cost of goods sold that leaves you $3,300 Over as gross profit over the lifetime of that customer This reminder we are talking gross profit, which means your expenses All still have to come out of there before you actually get to net profit the money that you get to keep and do what you want with yep That does it and all go in your pocket initially, but once you pay All your fixed costs for the month then it does start going into your pocket Yeah um Let's talk about new for a minute pretend that we're able to get that to go up How much? 5 percent 10 percent Sorry, well, let's say 5 percent because I think most people feel comfortable doing a 5 percent um price increase, but 10 percent starts feeling a little hard for people So I'm going to take the old number and multiply out one plus That percentage there whatever that is That comes up to be 158 dollars Now you're asking why did I do that one? I just take that number multiply at times 1.05 Yeah Because now we want to say well, what happens if it goes up 7 percent I can take that there and it does it for me automatically Why couldn't you just say that number times whatever's in that field d5? Well, when you say that number, what do you mean that number 15 percent of the So 15 percent Oh, I see never mind. I know why you did it because you were putting the percentage up there Yeah, that's allows you to do that what if analysis. Yeah, you guys are playing around with spreadsheets If you build it that way then you can go ahead and you can plug in different percentages and see how that is your numbers So If it's 5 percent and over the lifetime The difference would be Not a crazy amount for one customer. It's 165 dollars of gross profit, of course, they're going to take you 20 months to get there but If any of us have a business business, we've got more than one customer, right? Yeah So let's uh How many this is like per home, so let's pretend I don't know how many how many homes would uh A cleaning company have what do we want to pretend? How about a hundred make it nice easy math? Okay, and we'll do that on both sides the equation Tighten this up a little bit so we can see what's going on All right, so It doesn't smell anything does it You know what you meant? I'm trying to convert monthly to bi-weeklies. How much would you raise their rates? Okay, let's That's a good question. Denise. We'll hit that up in just a sec So that five percent gets you another $16,000, right? Yeah That's nice. And if I divide that by the number of months 20 It goes down a little bit, but still 825, right? 825 what per month Oh, okay. I took the 16 five remember. That's the lifetime, which is 20 months. I divide it by that. It gives you 825 per month Which If you don't compare those numbers just think in your head. What if you had an additional 825 dollars per month? Right just thinking about that number right there to be able to do more of whatever it is that you want to In this context, that's either profit or It's reducing what you call a net operating loss. It's reducing, you know If you're not being profitable if you're losing money, that's 825 dollars less that you would be losing anyway You slice it In the way you slice it, that's 825 dollars more you would have in your pocket than what you would have Without the increase. Yeah, and that's every month for 20 months so One percent it's 165 dollars a month. Okay, so if it's 10 percent Oops, you know, it's double. It's like 1600 bucks So This might this might be a way for some of you that struggle To do your price increases. It's so hard And a lot of times it can seem like it's not really that much money And it's not worth the hassle But maybe it's worth the hassle when it's 1600 dollars per month That is going to be coming in and over the course of the remember the lifetime value of that customer and additional $33,000 that you could be getting so $33,000 sounds like it might be worth it to To do your price increases now Let's say that you're still afraid. You're still nervous. You're still like, uh, What's the number show us 3 tom? Sure This 3% I think Is a number that If you look at that that means for the customer It's gonna their price is going to go up from 150 dollars to 155 dollars I think you're going to be hard pressed to think that Um, five dollars is going to stress somebody out enough to leave your company Unless they were already unhappy and if they were already unhappy, this is just going to show Shine a light on that and it's going to give you an opportunity to fix whatever those problems were So at 3% Just a small amount. You're still making an additional $9,900. This is almost $10,000. Think about that for The client's only giving you five bucks. So is it really Worth it 3% the sweet spot for you Leslie where it just doesn't hurt anybody So I like 4% show 4% tom 4% is just And It's just one more dollar From five dollars to six dollars. I don't think very many people notice that That other dollar on there So you got to find the sweet spot for you. What works? But for sure There's no reason to be giving up all of this money All right Why did you convert monthly to bi-weekly's how much would you raise their rates? All right, so For me, this would be more of a rate adjustment Then raising their rates. I wouldn't be raising their rates. I would be Adjusting do you think that we mean from going from bi-weekly two monthly? No, she's talking about converting. She's got monthly clients and she wants to get them to go to bi-weekly You know, this is kerry's strategy because all your customers are lower. They're right um I'm guessing she would lower it for the cleaning, but maybe it would be more for the month Well, that's what I was thinking maybe on a per job basis the assumption would be that You know, you're going to charge me you're going to charge less per cleaning the the higher the frequency All right, so you said yes, denit. I are you saying yes to So i'm just going to ask you one question and we'll wait for your response. Are you saying yes to Oh, I don't know that's what's the okay Yes to you're going to lower their Their cleaning rate for each individual clean, but they'll end up paying more per month And now it's time to also raise the rate. Is that what you were saying? Otherwise you might need to give us a little bit more information Let's just go with oh here it is raise the monthly rates And offer a bi-weekly voucher, etc exactly what kerry does What a bi-weekly voucher voucher is do you tongue? We don't really know what that is. So this is what I know that kerry does So she says hey, you've got monthly cleaning Let's incentivize you to go to bi-weekly cleaning and we're going to give you some stuff If you go to bi-weekly you want to get rid of monthlies. All right So if you want to get rid of monthlies, then what you do is you give them a lower price per cleaning Um, so if they were paying 150 once a month, then you would lower it so that every Every other week you're going to come so they're going to pay more over the course of the month but the Individual cleaning is going to be less But there's should be a gap Substantial gap a material gap between On a per job basis a per cleaning basis what every four week customer pays versus an every two week customer pays You want somebody to look regardless if they're two weeks or go every two weeks every two every four weeks Yeah, you want them to look at that and say you know what it's it's it's a deal I'm getting a deal if I go every two weeks because The difference in cleaning per job is so much less every two weeks So the question is do you discount your every two week week cleaning or do you increase your every four week cleaning? and I think if you brought somebody in at every four weeks you have no option but to all to reduce the amount but I think that most of the time what you want to do To need is when you're booking the job you want to book everybody is bi-weekly and then if they decide they want monthly then you Raise their rate so they have to pay more to be monthly Once you already have them at monthly, then you're going to have to reduce the the The job rate For going bi-weekly and the number I've heard that goes along with that most often Is 15 to 25 percent most people landing right around 20 percent That's what I was thinking That it needs to be it needs to be material It needs to be where somebody's going to take take a look at it. So Freddie new customer that you're quoting you know, you want to You know, you don't want to be decreasing what you're charging for your bi-weekly rate You want to be increasing what you're charging for your every four week, right? 15 to 25 percent So I really like to start everybody out with a bi-weekly price That's just the price that we give them is the bi-weekly price And if they want monthly then we raise it and if they want weekly then we're like, oh, okay Well, then we can reduce it a little but you still end up doing a lot of work on those weekly people We don't reduce it the same amount for weekly as we do Raise it for monthly because with your weekly people you still do usually end up doing a lot of work The reason why those people want weekly is they're picky They feel like their house is dirty in one week. So they need everything clean They're maybe not everything but they need a lot of it claimed So I hope that was helpful if you're talking about raising the rates then once you have somebody at Whether you have somebody at monthly or bi-weekly or weekly Usually people will pick one rate one amount that they're raising people And regardless of if they're weekly bi-weekly or monthly. So like leslie said her sweet spot is three percent So i'm guessing she didn't say this but i'm guessing she raises people Three percent regardless of their frequency The We are at 48 and haven't made prices in a while. This is top of the market And Our minimum for monthly is four hours and they don't get priority scheduling. All right. So that's that's um I like that The idea of they don't get the priority scheduling So and that there there is a minimum on that Throwing more hurdles in the way of that not looking so appealing I love that if I wanted priority scheduling Would you give that to me if I paid like an extra fixed rate or an extra a couple bucks more an hour? I don't know would you leslie Can can they if they want priority scheduling but they want to be monthly Can they pay instead of paying 48 dollars an hour? Can they pay 50? Wonder if that's an upsell opportunity Yeah, I don't know if you're trying to get everybody off of monthly you might not want to have An upsell opportunity Might they might not okay, so you know You guys knew this Before we even started that yeah all things being equal if you could charge more per job You're going to make more money. You're going to be more profitable um Nope, no option She uses them as fill Okay, that makes sense. I've heard of other companies doing that too. They don't have a set day They get Popped down to the schedule as the schedule allows when there's availability They get put on if there's no availability and they don't So where do we want to start with uh, you know, how do we increase the average bill rate per cleaning? Let me Plan. I've got a plan. I've got an idea You ever hear yeah, I do every once in a while Um, they're all saying if you can't measure it you can't manage it, right? So before getting too deep into talking about how do we increase it? We need to start by knowing where it is so Are we able to measure? you know our Revenue per job hour So we've talked about job hours and clock hours I'm talking specifically just for the time that your your your your technicians are on the job your cleaning professionals are on the job cleaning What is your average revenue per job hour and what is your revenue per job hour for every job? Do you have a mechanism to do that? um, you can do it with Paper and pencil you can do it with you know various software platforms I mean we do that in in it made central and in a very efficient way your teams are basically uh clocking in and out for the day and checking in and out of jobs and that the whole thing is Is completely automated, but there's a time that that that we did that with paper and pencil and every team recorded their start time and the end time and We plugged it. I mean at one time we were actually plugging those numbers into to a spreadsheet and we were running the calculations Yep, we did it in Bertha for years and years and years So but your most scheduling programs nowadays, I think will give you Your revenue per job hour I I think I feel like I've seen that on the customer factor maybe on job or Anybody doesn't have that in their scheduling program. Let me know because I was just curious about it by frequency You want to know what that is for your every week Homes your every other week homes your every four week homes your singles or one time jobs Because they should all be a little bit different, right? Absolutely the Higher the frequency the lower the revenue per job hour would be the the thinking Yeah, you would hope And and usually you will have a different number because you probably are charging more For your single cleans or your your vacants your move in your move out. You're probably charging more for those Uh because they are harder in a lot of ways. They take up more supplies. They cost more to clean So most people charge a higher rate for those I'm gonna throw another one here and this is a little more complicated and you can do this on a spreadsheet But this is a little more Hard Yeah whereas You ever look at a particular job and the amount of time it took Was longer than you thought or maybe shorter than you thought you just kind of scratching your head and wondering You know, how did I get you know? How was I so wrong about you know predicting how long that job was going to take? And then you go look at the people who cleaned it, you go. Oh, okay. I understand They're always fast or they're always slow Yeah, I'm sure that that's all companies you guys probably have this too you have some cleaning professionals that are just really fast And they they get things done quickly and then you have other cleaning professionals that are not so much That it always takes them all of the allowed time if not more Where your fast ones rarely need all of the time and they're both still sitting at that same um scorecard rating So you all have that right? That's not just uh, tom and me. I hope So this idea of normalizing by the clean professional Tom's gonna explain how this works, but it's based on the individual cleaning professional Our is this one fast is this one slow and what does that mean to this job? Are you how are you gonna show everybody this time because I don't think this concept is easy Hmm have we done this already? No, we have not Don't do any one time cleans unless we have a lot of openings. I feel they are hard hard on our cleaners and tend to be problematic There you go So you're you're not the only one that I've heard that just doesn't do them at all Leslie just if you've got openings. Okay, then you might take one here or there But not part of your your basic work that you do There's many houses you can at the highest price You can to make it easier than anyone else to do business with for example consider taking two monthly jobs Negotiate to get them to accept every four weeks Marry them with another before we care charge a little more For not being more frequent now you have the equal of a bi weekly job at a higher price Yep, yep, especially if and it kind of depends on where they're located So if they're not located in the same area it can cause you a little bit of problem because they're not Apples apples then our whole focus is on bi weekly. Yeah, I do love bi weekly Q I used to love weekly, but it just became you know, that was so many years ago that weekly was really a thing And now it's it's just not such a small percentage of our jobs are weekly now Where did all the weeklies go? They people don't need their house that all those people that were weekly were older They either died off or You know people don't clean like they used to clean. It's just not the same It's just it's not the same and one reason that There's a lot more work is a lot of the newer generation was never taught to clean They don't even know how to clean But on the flip side of that because they don't know how to clean and they don't know what clean is their less picky That does make it easier Density is key. Yeah, david out. I agree. It's and and um The density of the home and also the density of the neighborhoods or the travel time or where the homes are located All right, what what do we go now here tom? Okay? These are some numbers that we've played with in the past and i'm just gonna flesh this out a little bit This pretend it's really tiny right now Professional cleaning is too expensive for weekly. It was different when cleaning was 25 an hour huh wonder as time goes on and salaries increase and I mean, it's just gonna get more expensive. It's not going to get cheaper What do you want to look like? We're saying it'll look like five years from now A lot on demand are we going to be talking about would you word all the biweekly's gone? Yeah, maybe There are you know, there are a lot of companies currently that Uh, the majority of their jobs are on demand So it's already happening in some areas What are we going to teach them and who are them david? You're going to teach them Yeah, this is this is better Can you see that? Yeah, okay. So you got cleaning professional number one. I don't know do we want to give them a name? Yeah, you can call them lis okay Liz claimed 30 homes and if you remember 30 is not always the you know magic number, but There's this thing in statistics called, you know, the normal lies Approximation of some unknown distribution where if you have a sample size of 30 You in a lot of cases that's good enough to get a pretty good ballpark of what the actual average is and Out of these 30 homes So you had these allowed times here home one have a lot of time of three hours But they actually cleaned it in 2.5. I'll blow this up a little bit if you can't see it Oh, yeah, that's way better. Thank you cleaned another home had a lot of time of five hours Liz did it in four So this is pretty fast here. Liz is getting done consistently faster So for all 30 homes add up all the allowed times it's 95 For all the actual times it's 79 If I take And remember productivity is nothing more than the allowed time divided by the actual time We've talked about that already, right? Yep. We have I had to remember though. I had to remember what it was It's allowed divided by actual So for Liz her average productivity based on this 30 home sample Is 1.20 or 120 percent So on the on the on the average If Liz is going to go clean a home tomorrow We would expect that she would be cleaning it 20 faster than what A normal an average average just somebody with a productivity to 100 percent your Normal operator from industrial The normal allowed correct so Got a job with an allowed time That's smaller So say well four hours The actual Normalized allowed time Which means basically for Liz so we can say it In this back a little bit would be before divided by the 120 percent I would expect Liz to be able to clean that house in 3.32 hours 3.33 Sounds good. So what does that mean over here? When you're making some judgment about am I charging enough for that home or you know too much for that home Do I need to charge more for that home? if you're able to measure your actual times and adjust them for the normal for the productivity of that normal operator Because the flip side of it is if We were over here doing this Nothing's happening here. Tell me are you typing something? There we go. It was like a part if you actually Claimed the home in 3.33 hours He would multiply if Liz actually claimed the home in four hours they The normalized actual time would be the four times 120 percent Even though you did it in four The normal operator we take 4.8 hours Right okay, so So how does this relate to the average bill rate? I mean, shouldn't you why is that important at all? shouldn't you just Automatically charge everybody by the four hours because if you normalize by cp Then when you do when they leave whoever they are whether they're good or whether they're bad you change the rates How's that work? You don't change the rates But in order for you to be able to price based upon what the market can bear oftentimes If Liz is at 120 percent in you're looking at your revenue per hour Based on what Liz is getting You're thinking that well. I'm making my 45 dollars an hour if that's your your your your target rate, but if your target rate is 45 dollars an hour On the average you take everybody It should come out to to be Like normal it should be a hundred percent right somewhere around four Some of the people are going to be less than a hundred percent some of the people are going to be more than a hundred percent, but if um You're do it this way if your average Revenue per hour If you you have a target of say 45 dollars okay and for Liz it would be this number times 1.2 Could you remove leslie's comment tell him I can't see There we go. Thank you So, um, so what what do we do with this number? How is it helpful? I mean yay good. We know that but What do we do with it going back over here? You want to measure your revenue per job hour? You make determinations, you know my pricing Correctly do I have certain jobs that I need to do rate adjustments for? If I'm looking at Liz cleaning something And Liz is making her 45 dollars per hour. I might say if that's my goal if that's my my my target You're going to be above that usually but What I really would be looking for from you would be 55 dollars an hour 54 11 because your productivity is typically 120 percent So mrs. I clean so Liz cleans mrs. Johnson's house and She gets and Liz gets 54 dollars and 11 cents per hour And the goal is 45 dollars per hour So Liz is getting more money when it comes time a year has gone And it's her mrs. Johnson's anniversary date. Do we raise her or not? Do we raise her price or not? I don't understand your question All right, so but we're we're charging mrs. Johnson 45 dollars. Let's say we're charging her Just it works. It works out if you look at all the cleanings over the year Are you cleaning? Let's pretend you're the only person that cleans her over the course of the year Okay And what was her what was She should you know her average should be 54, you know 54 dollars an hour Yeah, and if it's not then she's not paying enough She should have had a rate adjustment You know 10 months ago Okay, so So Which is counterintuitive because it's over 45 But that 45 is for the average for the entire company But if it is the only person cleaning it and we know that Liz is 20 faster than the normal person We're basically selling it cheap to mrs. Uh, whoever it is mrs. Jones Because it's getting you know, we're we're we're we're missing the fact that you know She's not paying enough. She needs to pay 54 if Liz is cleaning because Liz is 20 faster all right, so If Liz is the only one that's been cleaning and so we've been making 54 dollars and 11 cents per hour And our target is 45 That when in a year has gone up and Liz is the only one that's been cleaning We would raise her rate Is that right we would raise mrs. Johnson's rate Over the course of the year, were we actually getting 54 is that what you're saying? Yeah, because Liz is 120 We're doing like a three percent or four percent across the board. We'd raise it four percent okay, and so This and we would need to do that to be able to keep our average in line because we're going to have some that We're only 90 productive and we're only going to raise them three or four percent as well. Is that right? Likewise or or the flip side of it is if it ended the year mrs. Jones's average revenue per hour is 45 dollars And that meant that she was underpriced by 20 for the entire year But we never saw it because it was 45 dollars But we never adjusted it for the fact that Liz is 20 faster than The average technician. Oh, oh, I see what you mean. You meant if Liz would have been cleaning all you And we only got 45 dollars right okay So are you guys following along here? What do you guys think about this concept? Are you understanding it? Do you have any questions? Should we You know get give me some feedback here On where we're going with this Should have been getting an extra nine bucks An hour that you weren't because you're that much faster Because really We weren't getting the our normal allowed time our what our Our normal allowed time is 45 dollars And we're really not getting that for mrs. Johnson because when Liz cleaned it She only got 45 dollars, which means if anybody else was to clean that house They wouldn't get 45 dollars. They would get if you're if you're average If you're getting 45 in the average person Was cleaning it Let's just go down here. I think we got some stuck people here, tom Okay, they got no comments Um If Liz was getting 45 an hour Then the normal operator Would only be getting 37 an hour All right, so The reason why we would Would want to be raising that especially If Liz was cleaning it and only getting 45 is Because we can't afford to send anybody else to send anybody else there If Liz doesn't work here anymore, then we really can't even afford to send somebody else in her place So we've got to keep that price up for Liz at the 54 and 11 cent rate Or another way of looking at it is For situations where Liz is actually getting 45 then You're leaving nine dollars and 11 cents on the table for every hour that Liz cleans a home for every customer If her average is not for every but on the average for every you're leaving nine dollars and 11 cents on the table For for for every hour she works And all of these numbers you guys are assuming that Liz's um scorecard ratings Are on par with everybody else's That your quality is there and you're not losing customers and upsetting people and so forth No, no other problems You know, this is this is a bit confusing again, maybe we need to slow down and digging this a little bit but We paint everybody with the same brush and When we start talking about you know getting our average bill rate up per cleaning Then you really need to look at well who's cleaning the homes now of all your cleaners Work at the same pace and nobody's slower or faster than anybody else then the math gets a whole lot easier So I think probably where some people are stuck right now tom is So what do we do with this information? All right, so here it is It's march. Okay, so I'm getting ready to do my march price increases I want to send them out on march first. It's february 22nd And I have this normalized information. Am I supposed to have this normalized information for every team member for every house? How does it play out? Am I supposed to change the amount that I'm raising people? What does this mean as far as my activity in my company? What do I do with this information? I understand that Now I know exactly how much faster Liz is or how much slower Rachel is but how how does that change my workflow? okay If you've got the right software, it'll do a lot of this math for you If you're doing it with a spreadsheet, you're gonna probably have to make Some general assumptions Okay for starters You know, it would probably be a good idea for us to if we don't have the ability to Figure out everybody's productivity based on the total, you know, number of jobs that they've done For a period of time at least do a sample to figure out what the productivity rate is for your cleaners And all of this is based on a solo cleaning model. This gets a little more complicated when you've got uh Two or more person teams because then you start having to average the productivity between the people and That we don't uh, we don't want to get into to all of that But at least anecdotally When you're looking at making adjustments or increases or looking at how good a job did I price that First time in that we did yesterday You need to be making an adjustment for The people based on the people who clean the home if they're Typically faster than than average or typically slower than average Even if you don't do all of the math you know You know Put it in a spreadsheet And make some assumption based on some small piece of data To normalize it the overarching thing here is if you don't normalize your rates You're going to make bad assumptions and If you're making bad assumptions you're leaving money on the table and everything that we've been doing here over the last You know x number weeks is trying to lead us trying to help us find More money out of the same homes that we're cleaning right or to make more money off of every home we clean and This whole concept just gets overlooked and lost because it's too complicated But it doesn't I don't think it's because it's too complicated I think it's because It looks like too much work for the same outcome or for such a very similar outcome And I'll tell you what I mean by that So if I know that my average price per home per job Is $150 Overall with all of the employees And I'm now going to raise all of my clients four percent Why do I need to know? Any of the other unless I'm going to go through every single client and Okay Liz cleans this house and she's only getting 45. She should be getting 54. Okay, so instead of 4 percent I'm going to raise her 7 percent on this one or 8 percent And mrs. Smith down here is being cleaned by rachel. Uh, oh rachel is slow And we she's only performing at 90 percent. So I have to raise her less More I'm not sure Do I have to do every Individual clients can I no longer do the 4 percent across the board because if I do Won't I get sort of the same thing? You don't have to Do anything But I would argue you're going to be more profitable If you look at every one of those we call them service sets every one of those homes from through the through the lens of Normalized times and make your your your adjustments based on those numbers as opposed to Just the raw data So yeah on a home-by-home basis All right, so If you're doing if you're doing this with with with spreadsheets and I mean at some point You know You got it. You got to play the hands your dealt but but ultimately I mean, that's that's that's how you Maximize the amount of profit that you would make off of each and every home So if you have the capability Ideally your suggestion Tom what I'm hearing is ideally if you have the capability um, you would be better off raising each each job individually based on The normalized time for the cp cleaning and if the cps change all the time You would just look at instead of doing it by cp. You would do it according to The just the average time for that job. Is that right? Did I get it right? Say that again all right, so if you have the capability of Finding out what the normalized time was for the employee Then and you're keeping For the most part you're keeping the same cleaning professionals on the same jobs Then the ideal way would be Oh my gosh, we are already top of the ever the ideal way of managing this would be to do each individual job Okay, because here's here's the deal If you're giving somebody a rate increase or rate adjustment And they're questioning am I being billed fairly and they call up A comparable competitor And get a quote from them You want the numbers be in the ballpark, right? Yeah and You know if you've got somebody's typically slow cleaning that home And you're going to look at it and say well gee I am just not charging enough I'm not getting my 45 an hour and you go ahead and you Jack it up, but the person cleaning it's at 80 percent, you know productivity Then you're going to be overcharging and they're going to call your competitor and say these guys are trying to rip me off I'm going to hire You know the other company down the street Which I think is why people use that average number to go by and they don't go by that slow person or not All right The average number is the average operator, but You know So y'all give us some feedback here. I know that this is a new brand a new concept for a lot of people Give me a little bit of feedback. I know that we are way over time today. We're two minutes over We're we're pretty good at lately stopping on time. Um, we'll Based on your feedback, we'll pick this up tomorrow We're all weak so don't yeah We'll be here all week or if this is too painful. We could talk about something else Yeah, yeah, we can we can move on from this I promise you though, there's money here that we're leaving on the table if we can embrace the concept We can make more profit I'm gonna make tom show us how there's money on the table here later. Okay We'll be here all week folks. All right. It's tomorrow. We'll be here tomorrow five o'clock eastern. Bye. Bye