 Hey, good afternoon everybody Tom Stewart here. I'm with Luz Trotter. This is smart business moves. Hey y'all It's Thursday. It's the end of the week. Yeah, it's smart business moves Friday Yeah How are you doing Tom? Okay, I guess I Mean I'm doing fine Trying to figure out where the day went Lot of lot of motion. I'm not sure how much movement You ever have a day like that No, Tom never never Well, why you gotta call me out Tom what I ever do to you I've been all day There's whole 50 seconds that we've been on this call I've been fine It's true. I was behind I was behind the curve. I was slow Hey Linda. Yeah, I've actually never seen you be that late Tom. I don't think you're not a late person I was only on the call though, and I was really trying to get off and it was Then, you know Excuses Tom, right? Yeah, I'm just no excuse. I'm just incompetent Yeah, that's what it is I can attest to the fact that that gentleman likes to talk I I had to I had a call with him yesterday right before this meeting and I told him that I had to be off at 155 and just so he knew that I didn't mean 156 I would end up having to hang up the phone So I didn't want him to be rude. I didn't want him to think I was rude Let me off But it was tight 155 and 50 seconds probably All right, Linda, you're the only one here today. Where's the neat? Mind y'all say hi Leslie. I haven't seen Leslie in at least a day to Two days. I'm not sure I don't know if she was here yesterday or not. I didn't say her no if she went here Oh, if she was here, I didn't see her. Yeah, she usually says hi. Hey Susan I've had more complaints about deep claims in three weeks and ever in my business so upsetting back to training So I'm here to calm down. All right. Good. All right That's interesting though today And we have an open call on in one of our MMA groups and we spent the whole hour Talking about initial cleans and deep cleans today. So I don't think you're the only one Susan if that helps I mean we we literally spent an entire hour talking about this today how to charge how best to Set the expectations so that the customers are happy and you know, how to how to be successful with them Anybody have any theories as to There's any like people saying that that they're having trouble with them and customers are expressing their displeasure so what we're talking about pretty much was a Two different problems when the customers call and say I don't need a deep clean You know for that first time clean. I don't know. There's didn't eat. Hey didn't eat. I don't need a deep clean I've it's either a brand new house or I've had a house cleaner for years and I just you know, I'm changing and I need a new Somebody you know Either that scenario where they don't want to pay for the deep clean They don't want that initial deep clean or the second where They're saying that they only want this service And then they're not happy afterwards So either way it ended up, you know, we talked a lot about setting expectations and how to how to Massage the message so that you can still get what you want and get them to want it too so it But my point was that there's a lot of you know, a lot of this must be going on right now simply because We had a little call about it Bidding the first cleans too short the cleaners rush to try and finish the time we allow which wasn't accurate yet We talked about that as part of the problem when there's not enough time allotted then the perfect the cleaning professionals Race through it doesn't get done well or depending on how they get paid if they're getting paid commission And you're not charging enough is like it was an hour So obviously we talked about a lot of stuff the complaints are legit based on photos I think we need to retrain on deep cleans. Yeah Don't just double check Susan how much time they spent So if they didn't get the work done and they left early then yeah, that's a problem But if they used up all their time and they didn't get all the work done You might have a different issue there and I know that's now we're talking about today on some our business moves But just because Oh We run the show But what do we want? Yeah, I want to get through this glass. Yeah You guys had enough KPIs. Let's just be be real. I mean this started off and this is really cool but we had kind of a I mean there's a lot to this and we've said at the beginning that we didn't want to go through it too fast because We've been able to do this entire presentation that we've been taking life the last What feels like a couple months? Yeah, and kind of blow through the whole thing in an hour if we chose to So that's an issue one gal spent six hours on a kitchen Okay, so I mean I hate to just say that employee right without knowing any more information only because I personally have spent six hours in a kitchen before when the grease was baked into the paint or Just a lot of Detail-y work that was really built up Heather canning uses the term old dirt versus new dirt. So a lot more old dirt Yeah, so yeah, sorry. Okay, Denny you want to be done. Would you like to be done with KPIs today? What do you think or do you do are you good for we got I think we have one more week right now We have four more days. Yeah, we can probably we can get this done by this time next week Yeah, we still have another week. We couldn't get it done today. We could get it done today Never mind. We're not doing any more, but ideally we have until we have Scheduled to get everything done by next week. What do you think about that? So, what do you think Denny? I would like for someone to set up my spreadsheets for me and I'll fill in the numbers Dude, you actually have a spreadsheet that has all of the key Information that you need already set up for you. All you have to do is fill in the numbers So, you know first first nail these five that you are already tracking Denny And once you get those those nailed then we'll work on the next the next batch All right, Tom, what are we doing? Okay, so in all honesty, we are a lot closer to being done than what What we might think that we are we spent a Fair amount of time drilling on the average bill per cleaning because we wanted to get into the idea of Normalizing the actual times to do it just for who the cleaner was and I think that we've done that Yeah No, Liz. I'm guessing I'm at the other the other numbers Well, I mean there's a lot of numbers that you want to be tracking right Tom's got a really good example here We've got 12 numbers that are all really excellent numbers to be tracking But really if you can nail those five numbers that are in your MMA worksheet Denny you're gonna find that most of these numbers are going to be considered within those not all of them But the majority of them so If you're if you've got those five numbers nailed and you've got them to as high as you want them to be and as low as You want them to be then all right you let me know and I'll help you Get your spreadsheet up to up to snuff with some of these other numbers Actually, they're already in there. They're probably just hidden All right These five numbers are these four numbers green numbers here and these two red numbers here really determine what your revenue growth or loss Is going to be Which coincidentally gets back into this model if you want to boil it down to Real essence of what we're trying to do here. There's three numbers that that that that we really need to manage It's the money that comes into the business the revenue it's our variable cost the money that we have to pay to the Professionals who clean the homes for us. We're calling it loaded direct payroll to revenue In this case 45% or the loaded direct payroll would be $45,000 and the third number is the operating expense all the other money that you spend In the end of the course of the month run your business. That's fixed or semi-fixed You manage those three numbers You're managing your business and if you manage them properly You're going to be profitable and you're going to be able to do all the other things that you aspire to do And you got into your business to begin with But if you don't manage those three numbers well Then it's probably gonna be a bad experience for you for the people that work for you and the people that you serve Yeah So agreed. I'm gonna Take this revenue number and this is what we're going to be talking about today Which is determined by these four green numbers and these two red numbers Okay, so we're not going to spend a ton of time talking about each one of these green numbers and each one of these red numbers We spent time talking about the average bill per cleaning and and we've already explained why we did that The loss rate we we spent some time talking about this, right Yeah, I'm reading Susan's question here Wondering if we ever addressed a question from last week asked at the end of time Didn't hear about it. So It's good idea to add something We did talk about this Susan. You must not have been on that next day. We had a pretty decent conversation about How how people do this some people will put something in the qts To let the customers know but they Sometimes you have to be careful because you might not get as good of information area or Leslie. We were talking about yet ears We're burning right? That you take a risk of not getting as accurate of information if your Customers are just trying to give you are trying to give your cleaning profession if you if you if If they think that if they look at it like a tip You know If somebody wants to give a bad review somebody wants to give you one star you want to give them the opportunity to do that too yeah so it just um I think what we ended up talking about was that Usually it's better to have that piece about how you're rewarding the staff in a separate Program some other thing that you're doing And trying to keep your your surveys really clean and tight and as with as much integrity as possible so trying not to Throw anything in there that could modify them And you know even if it's a bad, you know scorecard It you could argue You know if the team is soliciting the feedback and is an active part of getting that feedback In some regards, you're better off getting You know a one star review a bad scorecard Then you are getting a good one if indeed that was how the customer felt because You know last thing you want is customers out there Feeling like they're getting one star service and they're not telling you Yeah, that's definitely the worst so um We did run a program We've we've run a lot of different programs around this idea and we did want run one Where do you remember that one we did in Atlanta tom way back in the beginning where I think That people got the number of points based on The rating or something like that. So if you got a four star or a five Then you would get five points, but if you got a one you still got a point Um, the only thing you didn't get a point for was no So if they didn't give us any feedback, then you got no points And I can't remember. I don't think that's exactly how it went was like maybe a one and a two both got one point or something like that and Because i'm sure it was simpler than all these different points trying to track, etc the message you want to at least My opinion the message you want to send to your stakeholders both Your cleaning professionals as well as your clients you want as much feedback as possible And you're not putting any filters on it in terms of I want all the good feedback I can get that don't give me the bad feedback. You want all the feedback. Yeah I think most people would agree that Your your company grows more from the negative feedback than it does from the positive feedback The positive feedback you just take it in you're like, okay. Good. I'm cool. I'm great But the negative feedback you bring it in you're like, uh, okay So what can we do? Well, how can we fix this? What do we need to change? So you actually have an opportunity to make change over the the feedback that maybe isn't so stellar It's why those words are so good too, right? I I don't like getting feedback that isn't the top score with no words So like a three on a on a scale of one to five and somebody gives you a three Like Okay So How helpful is that not at all, right? It's like, uh, can't do anything You you almost feel more stuck more frustrated Yeah, Leslie. Uh-huh got it. Thanks so much. Yeah, I like a lot of feedback. Yeah. Yeah. Yeah feedback is so nice. Yeah So so nice The more you can get the better it's true. That's why uh, so many people and qts is an excellent job of this too of measuring Uh, the percentage of feedback that you get based on how many you send out Right, you send out a hundred you only get back 45. Okay. You got a 45 percent return rate That's a really important number so Let's uh, do we want to want to build a spray sheet and show how those four gray numbers and those two red numbers all play together to Determine What are uh revenue growth is or lack thereof? I always do love a spreadsheet, especially when i'm not the one building it I love having them Uh, what are we gonna say? Let's uh, let's get into 2021 here. Let's say 150 bucks for that. The next one is average quotes per week and We said 10 in our spreadsheet. Let's say I'll say 25 we can do better than 10 not 250. That's a bit ambitious So What what we aren't showing here is there's something that precedes a quote, which is a lead, right? And that's not part of our our model It could be we could have That in here I definitely think you want to be tracking leads if this is a new marketing channel for you If if you're using a new marketing channel, you need to be tracking the lead off that but um I can see why you're not always tracking the leads because and the reason I do this is We've we've coached people and this isn't uncommon and they're they don't have As many homes to clean as they need they don't have as many jobs as they need and they think it's a marketing problem So I need to advertise more because I need to generate more revenue And then you talk a little bit and it's like yeah, I get these emails from people who want to quote I never have time to respond to them So they're not tracking leads. They're basically tracking jobs But you know, if I got leads that i'm not even responding to then that's not a marketing problem That's a sales problem Have you seen that list? We're both thinking of the exact same person tom That at foundations, how many did she have sitting in her email in the 20s, right? That's a one number what percentage of of why should we quote? Well, why I don't understand why it wouldn't be a hundred. What do you mean? Now I'm gonna I'm gonna say 90 Why not all quotes are excuse me not all leads are the same Sometimes it depends where you get your leads from some leads are a lot more qualified in others if You get a call from mrs. Jones and she wants a quote because her neighbors mrs. Smith and mrs. Smith referred you Then you better quote a hundred percent of those and you better close a large majority of them because They don't get it. Those aren't you don't get any better leads than that but Say you're getting buying leads from home advisor Or angie's list or something and they just kind of trickle in with a email and Some of those they don't even respond, right? I still think you need to respond to them if the But you don't you might not be able to quote them you've got the lead But all you have is like an uh a name and an email address It's a lead Quote them I'm sorry I don't know why the only ones I can think that you wouldn't quote are people that are outside of your service area How could I quote somebody if all I have is a name and an email address? Well, no matter how they reach out to you they give you some way to contact them You can at least give them a maybe it's not a full quote But you could give them some type of a quote to Suck them into the if they've got an email My name is tom stirrup. My email address is tom at castlekeepers.com Are you going to tell me how much you're going to charge me to clean my house? I'm going to give you a pricing matrix that says great tom We definitely would need more information to give you a tighter quote But here's an idea of what cleaning costs in our area So guys house is this much this size and maybe that's not actually a quote tom You know, maybe that's like just that stuff on your website. You know, I mean, that's not a quote I mean, I wouldn't call that a quote a quote is Based on a scope of work Well, now we know what definition of quote is Okay And you know, you can have a loose scope of work and dial it in you know with more detail But you know, if you don't have square footage or a number of bedrooms and bathrooms If you don't have something You don't know, you don't even know where to begin Anyway Based on this discussion 90 And we're talking about a quote is based on scope of work You're giving them something some some type of a price that's for their particular home It's tailored to them in some way even if it's broad Right. Yep. Okay Oh And big What a bigger but oops. That's too small. That's just like goldilocks here No, that would be Alice in Wonderland No goldilocks too big Too hot too cold too soft to you I got you and just right. There you go Okay, now it's getting all dumb on me here I'll try this there. There's your goldilocks version right there, Tom. It's perfect Just right Okay, so now What would the next number be off of our spreadsheet average? Susan Hopefully hopefully it's big enough For me, I have such a huge monitor that it's Easy for me, but I know it's not for everyone But if you're giving quotes over the phone or if you're giving quotes through like an online booking tool Um, just the close rate on recurring We said 30 percent in some of our previous numbers, I believe so let's just go with that for the moment average Per month Per home And we said two the other day, right? Yeah now all of these are Green numbers, right We would want these numbers bigger We the bigger the better for for for these numbers. Yep Bigger better more And we've got the average Goodness gracious average loss rate Okay Per home Per month And we're going to say five percent, which isn't awesome, but you know, I I think that's kind of an industry average maybe we say after Average canceled cleaning is we're going to call these skips There mrs. Jones calls off and says hey just uh You know my house isn't dirty this week don't bother to come by but uh, just come back your normal time two weeks from now So they're not cancelling service. They're just skipping a cleaning So that you're just losing the revenue for one job this one time potentially This number's all over the board And I guess especially during covid it's almost hard to you know covid numbers are You want people to skip If anybody's sick in their home you want to make it really easy for people to skip. Um That's like 10% You think that's uh A reasonable number. Yeah, I've seen that number a lot tom. Yeah, I think so too Um Okay, so let's um We'll just do like week You know, so be like week one week two And we'll make that look a little better. So we're want to start off with um the number of homes Let's Do this We'll go ahead and we'll put something up here. Um Let's say that we're starting off with 100 homes. Okay And that's not a red number or green number. That's just a number It is what it is. I mean you want it to be as high as you can but for the sake of this That's just kind of where you're starting and obviously these two numbers here are Are uh red numbers Okay, so I don't understand tom. I thought all of these numbers are just where you're starting Well, they are but these are the numbers we're going to be driving Oh, okay, and we're not worried about the hundred. We're just gonna continue using that same number I get you. Yeah, that's what we're starting with. Okay So what are we going to do you're going to gain homes? You're going to lose homes You are going to have homes at end of week So what is this going to look like how am I what's my my my my my gained going today? I would have to take The number of leads. I'm getting per week Multiply that times the number of quotes I'm actually getting out of those and multiply it times my Recurring clothes, right This is where This is where I guess a zoom call would be really awesome because if anybody didn't had any questions at this point they could ask I think this information right here tom while you're while you're laying it out and putting it in It all makes sense, but It's as soon as it's done I forget what it is again Right, so What is it again? I forget how do we get that number? I also have a question excel question Why did you put the little dollar signs in there? Because I can drag that down now and This will always be coming from b3 Whereas if I didn't put that dollar sign and if I drag it down It would that three would change to four into five and six That's just so be with it. Oh, I love that. I didn't know that so a dollar sign in between The the fields will will keep it the same Yeah, awesome. I'm so happy to learn that so like Like over here lost homes Is going to be the number of homes that we have which is is is is a hundred times our loss rate of Five percent Yeah, let's think about this. These are homes gained per week, right? Yeah, so In order for this to be right I need to take that five percent and divide it Because that five percent's a monthly loss, right? So I've got to divide that by 4.3333 Correct. Yep And you guys already remember why we're doing 4.333, right? Because that's the average number of weeks in a month. It's not actually four And I'm going to drag this down So I'm going to put a dollar sign in front of the seven because I don't want it I want it to always be But I'm not going to put a dollar sign in front of the 13 Because when I drag it down, I want it to go to 14 15 16, right? I got you. That's great. That's good news And I'll do Make that look a little bit better So the homes at the end of the week would be what I started with Plus what I gained minus what I lost That's pretty cool, right? Yep. So start of the next week is going to be What I ended the previous week Rinson repeat. Okay. So I have a question um the the Why did you do the leads per week? Why did you do all of that stuff by the week and you did the other stuff by the month? Why confuse the issue? I'm not keep the The recurring the rate the time frame frequency. Ha the same That's a good question. Thank you when This is my school of thought on that I've always found it easier to manage the sales process the revenue gained and lost process On a on a weekly basis But when you're actually tracking your loss rate If you do it with a on a monthly basis it gives you a more leveled number Because if you do it from week to week If you might lose, you know, two customers one week and none the next week and then three the next week and the numbers Is flying all over the place where if you do it on a monthly basis And comparing month over month it gives you a more Useful number where you're comparing week over week. It's just static Does that make sense? No I get what you're saying. I understand what you're saying, but I'm not understanding a lot the logic because The same thing can be said of the leads in the quote Sometimes you get in a whole bunch and the next week you don't get in very many So wouldn't you want to use the monthly number for that too or always use the weekly so you could see how they compare I don't I just don't understand why we use both they kind of that I find it easier to manage the the the the revenue gaining activities Not not even necessarily easier More value added more more profitable exercise to drill on a week to week basis Because those numbers are so important the loss numbers are important too and you're tracking every loss and you're doing a You know, you're going to break down and do a corrective action review if you will if you're losing You know a customer based on something that that that you know really is as as you know Most of them are preventable, but some of them are more egregious than others in terms of losses um I don't know. I'll think more about it. I just always like On a monthly basis okay Whereas if i'm measuring my my sales part on a monthly basis I can be screwing up for three weeks for I mean, it's just there's more Accountability if you do that on a on a weekly basis You can argue you could do the loss rate on a on a monthly basis as well The numbers fly all over the place though I do like weekly because I like to see and I also like to see Like do I lose a lot of them at the beginning of the month? Like in that first week or do I lose a lot at the end of the month? Or you know, I do like to see that so I understand the reasoning one is easier and I guess I You know me too, tom. I focus so much on retention that that loss rate for me I don't want to see it. I'd like to see a date. Actually, I do watch a date We have it on a whiteboard every single day Because I that number is big for me. It's it's important Makes that number makes me nervous the number's going out the back door God scheduled per month would be the number of homes I Have at the end of the week So the number of homes I have at that point in time yeah The number of cleans per month per home What's the different between difference between homes? In this case homes at the end of the week and jobs scheduled per month This is like how many cleanings is jobs? I feel the same thing as average average cleans Yeah, if I got 400 if I got 105 homes and on average I get two cleanings per month per home Then that's 211. I mean it's just two times this number You know I get caught up in the lexicon. So when I saw average cleans, I thought it was different than jobs scheduled Right. Well, I'm not quite to the job Oh, this is semantics till This is where I'm going with it. I'm plugging in that the the job skipped Okay Amy And that would be this number times This Yes, and this $100 amount And so this is the actual Jobs Cleaned let's say Okay Because the semantic up here. Maybe we should change this a little bit. Maybe it's actually average Jobs scheduled because we we calculate this number based upon how many You know every week how many every other week how many every four week Recurring service sets you have and do the math to get this number Okay, and that this number is based on assuming that you never skip a job, which isn't true. So that has to be And I see why this one is done by the month Instead of by the week this one really makes sense to me as as being by the by the month So I'm going to go ahead and put a dollar sign here And I'm going to go ahead and play. I don't need a dollar sign there I'm good. So I can drag all these guys down Maybe Should you switch your Switch your decimal before you do it Like that You don't want to see any of these do a Is that better It is for me. Yeah Makes me work too hard. Are you okay with this? I like those. Yeah, I especially like the homes gained at 6.75. So that's okay Yeah, okay I might have to go a little bit smaller because I need a little more real estate You're still able to see okay, susan. Let us know If it starts causing you trouble again It's especially hard to see some of these things when you're on your phone Woo-hoo About the revenue per month would be the number of jobs We actually claimed times the average bill rate per cleaning which we said was up here And I need to put a dollar sign in front of that guy bang And we'll put a dollar sign there and we don't need decimals there Cole. Yeah um Do we want to know What else do what else do we need to know? Um, well, let's just sit for the moment. Let's let's just stop right there. Okay. If you remember I'm going to go ahead and Go back for this If you remember the whole point of this Is to get this number because there's three big numbers That you want to be able to get a uh, uh, this whole this whole discussion is about profit Right, and there's three numbers that that that that factor into profit at the highest level Revenue minus your cost of goods sold which is your loaded direct payroll Minus your operating expense gives you your net profit And we're showing you where this revenue comes from and we're doing it In this spreadsheet right here So we can just kind of take this guy here now And drag him down again Yeah, I can just go we In go crazy So These are weeks so I wanted to go out 10 years that would be 500 20 weeks, right? I don't know if I need to go out that far See What do we what do we got here? A bunch of numbers something Oh, I see okay now You see what happens is after time You start 100 homes and we're going 106 111 117 We're growing. We're growing. We're growing. We're growing and our revenue is going up And then it starts to these numbers kind of look the same week after week, right? And then you get to the point where they are the same week after week after week If I could go down on this a little bit Maybe that's too much and go up here and Let's see if we can do a graph And we'll make him bigger This is our revenue curve So all things being equal you can you we're growing Fast until we get to the point where we got more customers and you remember we got more customers We have more customers to lose and get to the point that everything you're selling is just replacing stuff That you're losing and you're flat all things being equal So that's where we have to make the green numbers go up and the red numbers go down so show show an example tom like Like make one of the green numbers go up or one of the red numbers go down and show how things change that quickly Let's make a red number go down This is probably one of the most valuable things that you can do in in in the process If you can improve your quality improve your customer service And retain more of your recurring business and we talked about that for for a good while The other week, but if I take that 0.5 and just knock it down to 0.4 If you see we're flatlining here just right under 160 thousand dollars. Can you guys see that? Yeah, I can And Now we're flatlining at about 200 thousand dollars. Yeah, just send her We're going to be making more money before we start to flatline if nothing else changes But of course, you're not going to have a situation where nothing's changes for how many years did you put up there tom? This is 10 years by the time that you get out here But if I go down here, if I'm starting off with 100 100 homes and revenue of 28 000 a month at that rate by the time I get out to 100 and This number right here is like two years out. I'm What 140 grand? Yeah 140,000 So I went from 30,000 140,000 right here. I'm smoking But on the flip side if you've been following along with us every day You wouldn't be at two years and have those numbers be the same because would you still have the Average bill per clean at 152 years out Probably not right that probably that number is probably going to be closer to 160 So two years out if you'd been making those changes Where would we be? Now we're making quite a bit more two years out So if I go down here, yeah, I'm about 150 I suppose and this is on a monthly basis So that's about another 10 grand a month which is like 100,000 a year Which is just making Those price increases those little price increases right five in this case. We did five dollars per year right just to go ahead and How about hit the skips tom because skips is a really I think a really great number that a lot of people don't even look at They just never think that it's a big deal but when you start adding up the The cost of all of your skips it can be a lot more than you think Did you get it down to probably five percent? I got here two years Now i'm above the 150,000 that's about another five grand a month more that i'm i'm getting That's just from keeping your customers from skipping Which means instead of when they say that they want to skip because clean Convincing them to maybe move a day or something like that instead of getting locked out not cleaning at all Then finding a way to get that cleaning done and you can't always that's why you got it at five percent even when we lowered it yeah It was at 10 that's at five if you know You get the number of leads up you get the revenue up. I mean obviously Any of the green numbers is going to drop the number drive this up more but Let's put that average recurring close rate tom up at 50 percent because that number can be done if you are Connecting a little bit more with the people on the phone, etc. Instead of you're going to have a lower one if you're dealing with like Booking that's coming directly from your website and that type of stuff But if you're if you're talking to some of these people and I know some companies That are actually doing a little bit more going back to doing a little bit more in-home estimates so The in-home estimate. Yeah. I mean a lot of it is the quality of the lead I mean a part of part of it definitely is absolutely and The in-home estimate is is is an interesting phenomenon because you're not if it's not a quality lead You're not going to get the in-home estimate, right? You're not just casually, you know playing around on a website and yeah, I'll fill my name in there I don't care and And I wake up the next morning. They forgot they did it then You know that might not be a quality lead, but if they actually let you go into their home They're serious That's quality most people that have done In-home estimates if you've been in business for a while and you've done in-home estimates, you know That those those leads usually close very high high 90s for a lot of people for the in-home estimate That's not all your leads obviously, but those in-home ones are really good That's that's that's interesting if you do the math on that and remember wasn't that long ago? We've been the what's a what's a recurrent lifetime value or recurring customer You're going to get a higher close, right and the people that are going to invite you into their home They're not looking for a one-time claim And they stay longer too. We used to track that pretty pretty regularly and our people that we did the in-home Quotes for State a lot longer. I don't remember those numbers off the top of my head anymore, but they were a lot longer I want to say double, but I mean I wouldn't swear to that number And why would that be why do you think that would be? Well, I think it's because they feel like they have a relationship with you and they are it's not a company That they're dealing with they're dealing with a person It's the relationship and if you get back to the the definition of quality like the serve call model It's expectations and perception absolutely and You know your ability to set the expectation and make sure that you know You're talking apples and apples as opposed to fruit and you show up at the wrong fruit You're going to do a whole lot better getting those expectations right if you're actually in the home a lot better So there are people that are going Okay, so always not always but a lot of times what you want to be doing is whatever your competition isn't doing All right, you have to do what your competition is doing also But if you can do something more or better than they're doing you're going to win more quotes So back in the day everybody did in-home so Switching from in-home to like just phone quotes That that had to close in a lot more More jobs for a while there because people were so happy To not have to have somebody come to their house And you were the only one that would give them a quote over the phone and they were thrilled. They're like, okay Sign me up. So that was great but now everybody does phone quotes or Web quotes and so now it looks like there's an opening again For those people who are willing to go in and do an in-home quote I know a few companies that are doing that I mean, there's there are other costs Connected to that though, right? There's a big time suck On your your in-home quotes versus phone So did you change that to 50? Yeah, where so where were we at two years with the years you are up here That's a really like 230 Not even quite. I gotta get a little bit further. Yeah, that's not even two two four 225 almost 250,000 three million dollar a year business there So if you ever wonder what does it look like to build a three million dollar a year business? So you're not even flatlining yet You're up here to 350. So you're over four you're you're about four and a half once you start flatlining But getting that 50% close rate is higher than the norm for sure. Yeah Yeah, especially because remember when we're talking about close rate We're talking about All of the leads this new this term that we decided with leads that are legit leads Where you're giving a quote to a specific person about their own home But that's whether it's by the web by your website or By a book online or a phone quote or however you're giving those And so those those are much harder to close I think I think everybody would recognize that your online booking Doesn't close it anywhere near the rate that your other types of booking close out And if if yours do yay, share your wisdom. What are you doing different? How do you make that happen? So if you look at this too, this is 25 Leads a week. We're not even quoting all of them. We're quoting 90. So that would be like 22 23 So that's still almost five a day four You know four and a half a day on the average So if you had one person doing, you know and home estimates full time then Theoretically that's what it could look like And if you're able to keep your loss rate at 4% all things being equal and get an average of every other week service, which You're gonna, you know, if you're doing at home estimate I think that you get more higher frequency recurring revenue as well. Yep. Agreed Agreed agreed We haven't been we haven't seriously done any home estimates in a while. We used to kind of lead with that Got me thinking now is I know these numbers look good, don't they? Yeah, I know And the market opens back up for different things Right. I don't know. I mean, that's true And there's a time I mean like everybody's kind of shifted to You know, I got away from that and wanted to do phone and then like online booking and all that's good, but So Let's see how they do because the people that The companies that are are trying it. They're not convinced that they're going to have success yet and that's because The the market has also shifted people want things faster so It's it's not clear That people are going to want an in-home estimate either unless they can get it today You know, if I can get an in-home estimate today Right now and still get my cleaning starting tomorrow I might be in but the in-home estimates aren't going to look the same Today as they did 10 years ago when we're doing them. It's just like fashion In fashion all of the styles come back, but they're never exactly the same, right? So high-waisted pants come back, but they don't look the same. They're not exactly the same now It's jeans with a tight leg instead of before it was if you break the ones out that you have from the 80s People are going to know They're going to know Yeah, they look like they're from the 80s and they don't quite fit the bill right right now And so it's the same thing So in-home estimates aren't going to be exactly the same as they were before If they work now, they're going to there's going to be a shift. There's technology So rather than going in with a clipboard and you know two-part form Writing stuff out. I'm assuming you're going to be Carrying a tablet and you're going to be doing it, you know A more automated way and when you're done, you're going to Have their email address and you're to send it to them, right? That's how we were doing them before we stopped though. So to me that would be the same Or you mean for me before you took a break from doing it. Yeah, exactly because we might start again. I don't know We we right now do like one a month And that's like little old ladies that are like, no, I need somebody to come and look at my house I don't think you understand, you know, blah, blah, blah So We we do some but i'm not sure that this new The people that are getting their house cleaned now Are They're not I mean i'm i'm positive. They're not the same customer As they were even five years ago They oh things have changed a lot so everything that we did here Basically gets us to this point here, which is The revenue number that's this number here So there's two more numbers we need cost to get solved in total operating expense and This is really easy if We say our loaded direct payroll ldpr There you go. Yeah, let's say ldpr to Those are direct payroll. What do I pay with the revenue? Okay, it's 45 And so this is my loaded direct payroll. This is just a dollar amount because i'm going to take This number and multiply it times my revenue dollars, and i'm here that's that and in my example the Operating expense is $25,000 Linda is saying tom that um, she does all in-home estimates for recurring clients To close right Yeah, let us know linda. Which close rate both of these numbers here are red Right. Mm-hmm. Yeah looking more like the the big sheet, but we're boiling it down into Just these three numbers here Extension, what's ext? Oh You know i took typing as a class in high school don't even do that anymore Yeah, they do It's just now they do it in kindergarten 98 close rate on those in-homes i'm not surprised you seen linda I can imagine that i'm not surprised at all I'm gonna take my revenue and i'm gonna subtract. Oops I'm gonna subtract my What did your payroll and my monthly operating expense and i'm losing money at that level And this is the ultimate green number, right? Yeah That's right. It should be a darker green tom more important I can do that really good green Yeah whites better okay I'll drag this down now So it's not before long. I'm making money. I'm making good money So in this operating expense isn't going to be completely fixed as you get bigger You're going to have to buy more stuff that's still going to look like a fixed cost, but Um, this is kind of the the whole logic behind the thing And everything that we've been doing basically boils into Managing these three numbers make this one go make the revenue go up and control your variable Because remember this is your variable This is your fix We can control those two Hey tom the hour just fyi. Yep. I know we had a a little bit of late start not much though Okay, well, this is a good place for us to start and we'll be back monday and we'll be uh spending some time this week talking about, you know, how to You know make the revenue per month go up and a little bit about a couple of other numbers on the spreadsheet and We'll we'll be ready to move on other things at that point. We got We got a couple of ideas. Um, that we're we're noodling around That'll Be different You're going to want to be here next thursday Where we're going to be talking about what we'll be doing the following week So we'll have some some information for you next next thursday for sure Thank you guys have a safe Rest of your week and we'll see you next monday five o'clock easter. Bye. Bye