8 Entrepreneurs Compete for $100,000 - Episode 1

AAlex Hormozi
Small Business/StartupsAdvertising/MarketingManagementBuying/Selling

Transcript

00:00:00These eight business owners are competing for $100,000 in this golden ticket, which gives them
00:00:05access to an entire year of guidance from myself and the team behind my $250 million per year
00:00:10portfolio. They each have 60 minutes with me to explain their business, and by the end, I'll decide
00:00:14if they scale or fail. For those who are chosen to scale, I'll give them a personalized 90-day
00:00:19blueprint on how to grow their business, and 90 days later, whoever grows the most wins and walks
00:00:24away with a grand prize. My name is Alex Ramosi, and I've been in business for 15 years, and I
00:00:29recently broke the Guinness World Record for the fastest-selling nonfiction book of all time,
00:00:33making over $106 million in a weekend. And this is Scale or Fail.
00:00:50My name is Nas. I'm the founder of Flex Learning Moving and Delivery. We're based out of San Diego, California. The journey to this business
00:00:58was very accidental. I was a broke college student athlete. My friend from Austin came out one time and
00:01:04he just said, "You should be making some extra money and all it takes is just posting an ad online."
00:01:08It took me about 11 months out of fear to post my first ad.
00:01:12From there, I just realized how much you can grow this business and what's actually possible to do.
00:01:16I found out about the scaling workshop here in acquisition.com and I came in 2025. And since then,
00:01:22the journey has been growing. Growing this business is really important to me. I just want to show
00:01:27myself that I could actually do this.
00:01:28Good morning, Alex.
00:01:30Good morning, man.
00:01:30How are you doing?
00:01:32Good.
00:01:33Great to see you.
00:01:34Good to see you too, man. So tell me about the business.
00:01:37My name is Nas. I'm 29. I'm the founder of Flex Learning Moving and Delivery.
00:01:42We did about $300,000 over the last 12 months, profit being 62%.
00:01:47Our goal is really to expand to multiple locations with $2 to $4 million per location in the next two to three years.
00:01:55We'd love to paint the map pink with our pink trucks.
00:01:58Walk me through the business model.
00:01:59Most of our business come through local residential moves that represents about 90% of the revenue.
00:02:04We charge it based on an hourly rate. It's $165 for two professional movers,
00:02:09plus $150 for the truck and equipment.
00:02:12Are you the cheapest?
00:02:13No, absolutely not.
00:02:14Are you the most expensive?
00:02:15Up there.
00:02:16Okay. And how do you get customers?
00:02:19So being the second highest and best-rated moving company in San Diego, as you can see,
00:02:23like most of the revenue would be from Google Maps and SEO.
00:02:26It's kind of like organic.
00:02:27It costs about $1,000 to $1200 a month for SEO.
00:02:31And the main winner right now that we've been testing with would be the realtor outreach.
00:02:35Tell me about this realtor thing.
00:02:36So we would reach out to them and they would tell me if you have anybody like moving out,
00:02:40we'll give them that little offer of like anybody over $2,000.
00:02:44Then we will, you know, give them $250 off them.
00:02:47So for the realtors, the job is like, they pay so much.
00:02:51For example, this month out of 17 jobs on Google, we made $16,000.
00:02:58Okay. And out of six jobs with the realtors, we made $15,000.
00:03:04So it's over $3,000 per job with the realtors compared to any other channel.
00:03:08Okay. Anything else that's stopping you from scaling?
00:03:11Just not enough leads.
00:03:12We could easily double up the business, but as of right now, just not enough leads.
00:03:16Okay. Why do you even want to grow the business to begin with?
00:03:18Like you're already making money, right?
00:03:20There's different reasons. Number one is that my wife just quit her six-figure job
00:03:23about five days ago to bid on me.
00:03:26I know you heard that a lot, but this one is real.
00:03:29So she quit her job. She's bid on me. She trusts me on doing this. I'm not going to let her down.
00:03:32Okay.
00:03:33And then two, I've had guys that have been working with me for the last few years.
00:03:36And these guys, all they're asking for is just stable work so they can feed their families.
00:03:39Three would be my mom worked extremely hard for us to be here coming from Morocco.
00:03:43So her only dream in life is to own a house and it would be the reason to make that dream a reality.
00:03:48My mom has worked extremely hard her entire life for me and my sister to be where we are today.
00:03:55My mom's only dream is to just own her own house, which does not even require much.
00:04:01It's a quarter of a million dollars, 250,000. I could possibly regret that forever
00:04:07if I don't work harder enough to just get her that little thing that she has dreamed about.
00:04:13I really don't care. I don't care for a house. I don't care for a car.
00:04:17I just care for that because it's in me for me to pay back people that have stood with me
00:04:25when I needed it the most. And if anything, she's the only person.
00:04:28Last but not least, it's kind of like a little bit personal.
00:04:31People that have been against us, it's not really to show them that they're wrong,
00:04:34but just to prove myself that I could go a lot further.
00:04:36To show that you're right.
00:04:37Sure.
00:04:38I dig it. Okay, cool.
00:04:40This seems pretty straightforward. I've got a handful of things that I think we can do.
00:04:48So let me just walk you through how I kind of think of this large scale.
00:04:51So I think we'll start with the offer. All right.
00:04:55And then I want to work on the sales process a little.
00:05:00And then we'll talk about this realtor's thing.
00:05:05And then we'll go traffic.
00:05:09So if you think about fixing a business, I always fix things from back to front.
00:05:12So it's like the thing you sell, how we sell it, who we're going to sell it to,
00:05:16and how we can find out about it, right?
00:05:17Okay.
00:05:18If we're talking like big picture, basically you will become a commodity
00:05:21if you're using the exact same measured unit, right?
00:05:25Because they're just asking, what's the hourly?
00:05:27I'm guessing a lot of people get on the phone, right?
00:05:29Yes. What's the price?
00:05:30Yes.
00:05:30Right.
00:05:30And so I think if I were you, I would break that frame and just say,
00:05:35we don't do it by hourly.
00:05:36We just do it by job.
00:05:39And I can give you an estimate because at the end of the day,
00:05:41because someone might respond back, well, I just need to know what the hourly is.
00:05:44It's like, I can't have the guys drag ass and take all day.
00:05:47You'd rather get done quickly rather than take a long time, right?
00:05:50And you want it done well.
00:05:51Well, that's what we'll do.
00:05:52Yeah.
00:05:53Because that'll get you out of this kind of like, it's 120 here and there were 125.
00:05:56It's just like, it doesn't matter because they could take eight hours and I could take four.
00:06:00Yes.
00:06:00You know what I'm saying?
00:06:01The only issues with that is that a lot of these people would like to tell you what they have.
00:06:04And you can't really estimate that if you do a flat rate.
00:06:07Think about it like this.
00:06:08Like in order to scale the business long-term, it's like, we want to have something unique
00:06:14that's somewhat different, right?
00:06:16If we can.
00:06:17Now, if we're also selling a commoditized product, which is just sheer labor right now,
00:06:22plus a truck, there's not a lot of differentiators there besides maybe like pink.
00:06:26I'm trying to think of a way to get you out of the hourly race if possible.
00:06:30Because right now you're servicing kind of the lower end of the market, right?
00:06:33If you're servicing renters and kind of smaller homes.
00:06:36Yes.
00:06:36Because like, I'll tell you, when I moved, I honestly have no idea what I paid,
00:06:40but I'm guessing it's probably in the neighborhood of like $25,000.
00:06:43I have no clue.
00:06:44But the idea was I'm going to leave my house and then I'm going to show up at the other house
00:06:50and it's done.
00:06:51That was what happened.
00:06:52Yeah, that's for the rich.
00:06:53Yeah.
00:06:54No, exactly.
00:06:55Yeah.
00:06:55Well, have you heard my stuff?
00:06:56Yeah, yeah, yeah, yeah.
00:06:57Of course.
00:06:58You know where the money is?
00:06:58Yeah, yeah, exactly.
00:06:59Sell to the rich.
00:07:00Right.
00:07:00And so my point is not like, I'm not saying you all of a sudden
00:07:03overnight become ultra diamond, you know, whatever.
00:07:05Yeah.
00:07:06But what you realized was the realtors, it's not that the realtors are special.
00:07:10It's that you've got a taste of selling to people who have more money.
00:07:13Of course.
00:07:14Right.
00:07:14And so you made way more profit on those deals than you did on the kind of generic.
00:07:18And so that's why I asked about the offer because to me, there should be a white glove offer.
00:07:25To me, that's what's missing.
00:07:26So I thought about that.
00:07:27I did it.
00:07:29It worked.
00:07:30It worked a couple of times, but then I kind of just turned it off.
00:07:33Okay.
00:07:33Why?
00:07:36Because it wasn't selling well.
00:07:38Okay.
00:07:38Well, that's fine.
00:07:39The offer wasn't good.
00:07:40So I'm not, I'm not thrilled right now.
00:07:46Because you're just like, I'm a little bit more expensive and people get a little bit more value
00:07:50than they would with other people.
00:07:51And it's very hard to claim anything that's different besides the trucks being pink and
00:07:57the guys being better.
00:07:58And no hidden fees.
00:08:00Sure.
00:08:01Because material is included, like shrink wrap and moving buckets and all that stuff is included
00:08:05compared to other companies.
00:08:06They would just throw an extra $600 at the end of the bill.
00:08:08And you have to pay for it because you have absolutely no option.
00:08:10But they don't tell you that.
00:08:12And so it's done.
00:08:13But people still see the hourly rate being cheaper somewhere else.
00:08:16It's what's going to save the day.
00:08:17No, I know, I know, I know.
00:08:21Don't love it.
00:08:22I'm going to shift gears.
00:08:22Let's talk about this realtor thing.
00:08:24So why don't we say, let's just for fun, for shits and giggles, right?
00:08:29Yeah.
00:08:30You can have a VIP moving level, right?
00:08:33And then you have your standard moving level.
00:08:35I think that the realtors would be better served.
00:08:37They probably don't care about the $250.
00:08:39Because if they sold the house, they made way more than that.
00:08:41It's irrelevant.
00:08:42They want the referral and they want the people to know that it was a great experience.
00:08:45And so I think you probably get way more referrals if you said,
00:08:48I'll give everybody who you send a VIP service for the price of standard.
00:08:54That will probably mean more to them than getting $250.
00:08:58And then for them, they'll be able to be like,
00:09:00hey, if you go through me, he'll give you the VIP level service at the standard rate.
00:09:04Got it.
00:09:05To me, I think it's a lot more compelling.
00:09:06But what would the VIP be?
00:09:07I don't know.
00:09:08Create?
00:09:09Yes.
00:09:09Let's make it up.
00:09:09Got it.
00:09:10Okay.
00:09:10Okay.
00:09:10Okay.
00:09:11Yeah.
00:09:11That makes sense.
00:09:13In the cloud.
00:09:13Yeah.
00:09:14Well, I mean, you could offer to unpack.
00:09:15And if everybody says no, then that's that, right?
00:09:17Like, it's like, we'll even unpack it.
00:09:19And then people might just opt out.
00:09:20If you know most people do, then it's great.
00:09:21It's almost like a false offer.
00:09:23Okay.
00:09:23Because you know more about the customer than they do, which is the whole point.
00:09:26Or the VIP could be, I can give you like,
00:09:28movers with 10 plus years of moving experience that would take care of this entirely.
00:09:32Only reason I don't like that is from a model perspective,
00:09:34that'll be more difficult to scale.
00:09:36And I don't know how much that'll matter.
00:09:38So I'll tell you a different version of this, which is like,
00:09:40instead of doing 10 years, it'd be like, every mover has over 50 moves.
00:09:43Okay.
00:09:44And so I'll give you an example.
00:09:45So like when I had my trainers at my gyms, anyone can be a trainer.
00:09:49Literally anyone can be like you.
00:09:51I have low skilled labor.
00:09:52And then you can have a certified trainer, which they go through accreditations versus not.
00:09:56And you can also internally certify.
00:09:58And so what I did was I created three levels of internal certification.
00:10:00I'd be like, you're gonna have a level three master trainer.
00:10:02Most people were like, oh, wow, that's awesome.
00:10:04But it's just like, they just had to do some stuff.
00:10:05And for me, a level three was like, they'd done a thousand sessions.
00:10:08Fair enough.
00:10:08Or whatever.
00:10:09And so for you, you can be like, you have a level three mover.
00:10:10So we have different moving movers for different skill levels.
00:10:14And so you'll have all level three movers.
00:10:15Because what you're trying to do when you're selling a commodity,
00:10:18you're basically sowing seeds of doubt against the competition.
00:10:21So part of what you said was, well, they're charging 120 an hour,
00:10:24but that's because they're going to nickel and dime me over here.
00:10:26I'm not going to do that.
00:10:26That's basically sowing some seed of doubt saying, I'm actually different.
00:10:29That's basically what you're doing.
00:10:30You're saying, we're not the same.
00:10:31Yeah.
00:10:32Basically, how many other things can we do there?
00:10:34So we have speed, risk, and ease.
00:10:36So speed, since you're charging hourly, is probably not going to be a thing.
00:10:39Now, you could do speed in terms of like, we can come tomorrow,
00:10:41but they probably have a moving day that they are planned out doing.
00:10:44A lot of times, you do last minute moves, and we charge up a little bit.
00:10:47Yeah.
00:10:47Oh, yeah.
00:10:47People call today for today.
00:10:49It's like, my movers bailed on me.
00:10:50And that's the reason why a lot of people would go with cheaper movers, and then-
00:10:54Give the same day premium?
00:10:57I'm not clean.
00:10:58We're kind of like just avoid the same.
00:10:59No, no.
00:11:00Okay.
00:11:00Because sometimes we're so desperate for a job.
00:11:02So I'm like, yeah, whatever.
00:11:03I'll just take it.
00:11:04You know?
00:11:05I know.
00:11:06Got it.
00:11:07Okay.
00:11:08Okay.
00:11:09So you have the fee that other people are nickel and diming.
00:11:12And then, so the other kind of seed of doubt, right?
00:11:15So there's risk, speed, and ease, right?
00:11:17And so what we're hitting on with this kind of like master mover, if you will,
00:11:21actually sounds kind of nice, master mover, is the risk component, which is,
00:11:24listen, believe it or not, a lot of my competitors, they can win on price because
00:11:27they're just literally going to take someone off the street.
00:11:28When I say literally, I mean literally.
00:11:30And that you don't know if they have a record.
00:11:31You don't know like what's going on, right?
00:11:33None of my guys are, you know, ex-cons.
00:11:35And on your move for VIP, you get all level three master movers who've done at least 50 moves
00:11:39or 100 moves, whatever, make, make whatever you want to, right?
00:11:42So how does that sound in terms of the VIP?
00:11:44It's going to be around risk.
00:11:46So it's like, we're going to have this higher tier of mover and no, there's no extra thing
00:11:51besides the labor and we're going to include all the materials.
00:11:54If you do full service moves, there's like packing and unpacking.
00:11:57I love that a lot.
00:11:58Okay.
00:11:59So that to me is what you give these guys, the realtors, and you already use master movers
00:12:05as is, right?
00:12:06Yeah.
00:12:07So there's really no change between that and standard.
00:12:09It's just that if you have standard, you have the option of using cheaper movers.
00:12:12If all your guys are already quote master movers, then great.
00:12:15So I'll just go here, but basically our VIP, right, is going to be pack plus master, you know,
00:12:22master movers plus material.
00:12:26And then standard, I would say it's still pack, but it's just not master movers plus anyone.
00:12:34So that's probably not too big of a cost for you.
00:12:37For me, no.
00:12:38Okay, perfect.
00:12:39Well, then that's about the $250, but this feels significantly more premium
00:12:44than just doing 250 bucks off or 250 bucks to the realtor.
00:12:47Okay.
00:12:48Do you like that better?
00:12:49I like that a lot.
00:12:50Okay.
00:12:50So also when you're, when you're getting on the phone, I think you can just basically have these,
00:12:55these tiers.
00:12:56And I would start with VIP.
00:12:57That's how you would sell it to anybody or just?
00:12:59No, I would do it to everybody.
00:13:00I always start high.
00:13:02Okay.
00:13:02Because the thing is, when you get on the phone with somebody who has money, they don't care.
00:13:07They just want it done.
00:13:08Yes, I agree.
00:13:09And so you have to give that up, that person the opportunity to buy.
00:13:12Now, as soon as I know I'm on a budget, you're like, no worries, then just do standard.
00:13:15Perfect.
00:13:15So most people do this, but if you're on a budget, we have this.
00:13:18And then if someone still objects, then you basically have to walk down the seeds of doubt.
00:13:21So this feels like it's worth diving into a little bit.
00:13:24The issue that you brought up, you said Yelp you didn't like and Google Ads you didn't like, right?
00:13:27Yeah.
00:13:28Right.
00:13:28So to me, that's not a leads issue.
00:13:30It's a sales process issue.
00:13:31Okay.
00:13:32So we have to make you different in some way compared to everybody else.
00:13:35Mm-hmm.
00:13:35Okay.
00:13:36So we have our factors.
00:13:37So we have master movers.
00:13:39We have that.
00:13:40We have materials.
00:13:41We have that.
00:13:42Do you have insurance or anything like that?
00:13:43Yeah.
00:13:44Okay.
00:13:45Do you talk about it?
00:13:46License and insurance.
00:13:47Yeah.
00:13:47I mean, as an operator moving company, you're supposed to have license and insurance.
00:13:51Great.
00:13:52Great.
00:13:52These are elements, right?
00:13:54We need components to the offer.
00:13:56All right.
00:13:56Because again, think risk.
00:13:58So this is risk.
00:13:58This is ease.
00:13:59This is risk.
00:14:00What else do we have?
00:14:01We have speed.
00:14:02Speed.
00:14:03So I do think that if someone does same day, you can just say we have a same day surcharge
00:14:09of 10%.
00:14:10Okay.
00:14:10Just because I want you to get used to charging it because speed is one of the biggest things
00:14:14people pay for.
00:14:15If someone had someone back out and they need something to move today, that's when you can
00:14:19charge.
00:14:20And this might not sound like much, but again, when you hit 20 locations, this will add up
00:14:25because your margins are going to be 70%.
00:14:27You might be at 30% and all of a sudden a 10% lift or 20% lift, all of a sudden you're like,
00:14:31oh, shit.
00:14:31And it's all margin.
00:14:32Yeah.
00:14:32Right.
00:14:33So I'll say a day premium, start at 10%, but I want you to go to 20% over time.
00:14:39And you can basically keep moving up until they say no.
00:14:41So these are different components.
00:14:42We have our A, we have B, we have C, we're getting little pieces that we can talk on the
00:14:47phone.
00:14:48I have not tapped into every single piece of this business.
00:14:51I'm not even capped out yet.
00:14:52I haven't even done the obvious stuff that other businesses are doing.
00:14:56That's why I think I really have a huge advantage that we could grow the most.
00:15:00And that's really the only advantage that we have is that we're small enough to scale the most.
00:15:12Okay.
00:15:13What about a cap?
00:15:14Meaning?
00:15:15It's not going to cost more than this.
00:15:17Let's say they do an estimate.
00:15:19Yeah.
00:15:19How likely is it that they're off by 2x?
00:15:22Not by 2x, no.
00:15:23Okay.
00:15:24But at least a 30%.
00:15:25Okay.
00:15:26So what if we say 50%?
00:15:29I'm going to give you a buffer.
00:15:30I'll tell you why I'm saying this.
00:15:31If you get on the phone and say, hey, did the other guys give you a cap?
00:15:35And they'll be like, no.
00:15:37And you're like, oh, well, yeah, that's how they're going to get you.
00:15:40And then they're like, wait, what?
00:15:41And you're like, oh, yeah.
00:15:42I mean, like I can just take 20 hours to move one thing from here to there.
00:15:45There's not much you can do when somebody's on site.
00:15:48And they're like, oh, I didn't even think about that.
00:15:49It's like, right.
00:15:50So we'll be this and we won't exceed this.
00:15:52Got it.
00:15:53Unless there's a huge issue when we arrive on site.
00:15:56But that's basically like, are you the type of person who's going to be lying about this?
00:15:59No?
00:15:59Okay, great.
00:16:00Then it's fine.
00:16:01So it will not be more than this.
00:16:02Got it.
00:16:03Okay.
00:16:03And then that way, because again, we're trying to sow seeds of doubt.
00:16:06Like if they have two things, they're both 100 an hour, 90 an hour.
00:16:08Yeah.
00:16:09They're going to pick the 90.
00:16:10Of course.
00:16:10So we have to be like, oh, okay.
00:16:12Got it.
00:16:12So what insurance the other guys?
00:16:14Oh, they didn't mention.
00:16:15Oh, yeah.
00:16:15Well, for sure.
00:16:16If you're uninsured, then yeah.
00:16:17I mean, that's, that's the cost.
00:16:18But I'm assuming is nothing you have valuable.
00:16:21You know, like, no, I have some things that matter to me.
00:16:23It's like, great.
00:16:23Well, we have insurance that we can include.
00:16:25Do you know what I'm saying with this sale here?
00:16:27Yeah.
00:16:27It's going to come.
00:16:28It's going to come down.
00:16:29Yeah.
00:16:29And we're going to, we had to get this part here so that when we move to the sales.
00:16:32My brain is going like all over.
00:16:33Yeah.
00:16:34Right here.
00:16:35Okay.
00:16:36But fundamentally, because this is going to ladder into this, but we have our VIP and we have our
00:16:40standard.
00:16:40We're going to start everyone here.
00:16:42Yeah.
00:16:42And then we're going to, if they say, I'm on a budget, we'll say, no worries.
00:16:45We can do this for you.
00:16:46Yeah.
00:16:46Okay.
00:16:48All right.
00:16:48Yeah.
00:16:49It's opening up.
00:16:49I love it.
00:16:54All right.
00:16:55So sales process.
00:16:56So you were able to talk to all the people who came in on the, on the Google leads, right?
00:17:00Yes.
00:17:00Everybody immediately.
00:17:02That's great.
00:17:02The main objection we have is always price.
00:17:05It's always price.
00:17:06If they don't know what else to talk about, customers will always go to price.
00:17:09If you don't give them any other variables to consider.
00:17:12Okay.
00:17:13And this is what we're trying to do.
00:17:14Like, that's the point of the offers book is like, how do I, how do I break these two
00:17:17things of price and value?
00:17:18Yeah.
00:17:19Right.
00:17:20If, if there's apples and apples, you want apples and oranges.
00:17:23And even though you build the same way, we like, fine.
00:17:26I get that.
00:17:27Can we still make it different enough on all these other things that they're like,
00:17:30fuck, I didn't even think about that.
00:17:31Yeah.
00:17:32So when someone, when someone calls in, what's the first question you ask them?
00:17:38The day of the move.
00:17:39When are they moving?
00:17:40Just to make sure we have availability.
00:17:41Okay.
00:17:42So you ask for the day and then let's say that you're empty.
00:17:44Now what?
00:17:45Now I do ask how much stuff they're looking to move.
00:17:48Like, what's the size of the move?
00:17:49Okay.
00:17:49And you say size of your, what's the square footage of your stuff or what?
00:17:52No.
00:17:52How many rooms?
00:17:53We go by the rooms.
00:17:54Like, is it a one bedroom, two bedroom?
00:17:55Got it.
00:17:55And then the time is, for example, it's a two bedroom.
00:17:57I was like, great.
00:17:58Like, what are we looking to move?
00:17:59Yeah.
00:17:59And then it asks stairs or no stairs to have an idea.
00:18:01Like, okay.
00:18:02Like how long the job will take.
00:18:04Yeah.
00:18:04And then where the truck is going to be parked.
00:18:06We still want to walk through these other pieces, which is, okay, got it.
00:18:09Do you care about the qualifications of the movers that you have?
00:18:12They're like, I never thought about that.
00:18:14You're like, oh, okay.
00:18:15Because a lot of the guys have like ex-cons and people are like very uncomfortable with that.
00:18:18Believe it or not, it's actually 20% of the industry.
00:18:20I put some stats, right?
00:18:22Yeah, it's true though.
00:18:23No, no, for sure.
00:18:24Right.
00:18:24So it's like, do you care about the world?
00:18:25I don't want ex-cons in my house.
00:18:26And you're like, great.
00:18:28So, and you're, you're in your mind.
00:18:29You're like, okay, they want master movers.
00:18:31They're like, okay.
00:18:32So, um, do you already have all the materials to get all this stuff packed up and all that?
00:18:36Oh no, you don't.
00:18:37Okay.
00:18:38Packing.
00:18:38Got it.
00:18:39Right.
00:18:39And you're like, okay.
00:18:40You're like, got it.
00:18:41So do you have anything that's valued over $500?
00:18:43Obviously, yes.
00:18:44And they're saying, okay.
00:18:46Insurance.
00:18:47You're just listening.
00:18:47Right.
00:18:47Yeah.
00:18:50If it was, if it was today, then we'd include the date premium.
00:18:53If it's not, then we're like, okay, got it.
00:18:55So this is what we can do.
00:18:56We're 165 an hour.
00:18:58And if you go with us today, I'll include the master movers.
00:19:01I'll include materials and I'll include the insurance.
00:19:04If they do full, if they do full, full service, like packing, if we could pack for them,
00:19:08then we can include the materials for free.
00:19:09So that is the offer you were talking about.
00:19:11Yeah.
00:19:12Okay.
00:19:12And if they're like, oh, I can't do that.
00:19:14Then it's like, okay, we can still do it, but we're going to be at standard.
00:19:18If this is going to be the new VIP, make this 195 and make this 165, whatever.
00:19:22Okay.
00:19:22Okay.
00:19:23Okay.
00:19:23So this is VIP and this is going to be standard, right?
00:19:26I agree.
00:19:26Do you like that?
00:19:27Yeah.
00:19:27I love it.
00:19:29It's fantastic.
00:19:29It's awesome.
00:19:30Because that way, that way, again, we're already having a conversation with more detail.
00:19:35I just want to give you bullets so that, again, we want to get on the phones.
00:19:38Because how many, how many are you losing to price?
00:19:41Oh, a lot.
00:19:42Right.
00:19:42Like 40%.
00:19:44Yeah.
00:19:44Okay.
00:19:45So, so this is important.
00:19:46Right.
00:19:47So we want to make sure that they don't think that they're getting the same thing for less.
00:19:52We want them to know they're getting way less for less.
00:19:55So the way we've been selling is that if they kind of hit us with the price issue and like,
00:19:58hey, if you find anybody in this industry in San Diego right now that would match our reviews,
00:20:03we'll beat their pricing because they don't exist.
00:20:05No, of course.
00:20:05That's not.
00:20:05Yeah.
00:20:06But that's not, they're like, yeah, but whatever.
00:20:07Yeah.
00:20:08Yeah.
00:20:08If you can find somebody else that does insurance, has, has level three movers, includes materials,
00:20:13you know, and has a cap, by all means, I'll price match it.
00:20:16But like, I've never been in the price matching game in my whole life.
00:20:19I'd rather just be in the value surpassing game, which is if these things matter to you,
00:20:22we're the only shop in town that does it.
00:20:24If you don't care about having ex-cons in your house, and again, I have no beef with ex-cons,
00:20:28but people have perceptions, right?
00:20:29Yeah.
00:20:30If you have no issues with ex-cons, and you plan on doing the packing yourself,
00:20:33and you're okay with them potentially breaking it because they're not, they're not insuring
00:20:36anything, which honestly, it happens in 25% of moves.
00:20:39Yeah.
00:20:40And if you're the three out of four, it's great.
00:20:41If you're the one out of four, it's pretty tough.
00:20:43Yeah.
00:20:44Right?
00:20:44Yeah.
00:20:44And if you have no cap, and you don't care, because I can come in at $10 an hour,
00:20:47if you want, and I'll just take a week.
00:20:50Yeah.
00:20:51Again, it's like, we have to, like, you have to explain the whole, the whole system, right?
00:20:54And so what this is called is, I call it shifting from local to global, right?
00:20:58So like, you're thinking about this.
00:20:59I am.
00:21:00I'm thinking about this, not me, but the consumer, right?
00:21:03Yeah.
00:21:03And so all of a sudden, you give them way more variables than they thought about,
00:21:05because you know more about it than they do.
00:21:06Of course.
00:21:06And that's the point of a good sales process.
00:21:08And so they're like, I didn't even think about these things.
00:21:10And it's like, right, that's okay.
00:21:11That's what education is for.
00:21:12I'm educating you right now.
00:21:13Yeah.
00:21:13Right?
00:21:14Yeah.
00:21:14And so this is what it sounds like you really want, and that's what I can deliver for you.
00:21:18Because at the end of the day, if you get everything on time,
00:21:20nothing breaks, you have great experience.
00:21:22I was like, is that worth the extra 50 bucks?
00:21:23Oh my god, yes.
00:21:28Good, good, man.
00:21:28So this is what I want you to walk through.
00:21:30It's like, this will get you the deals you're losing.
00:21:32You're losing the price because they have nothing else to say.
00:21:36They're doing apples to apples.
00:21:37You're like, no, it's apples and oranges.
00:21:38But it's totally fair that they're charging less because they're not doing all this stuff.
00:21:41Which by all means, if you want us to not do that stuff,
00:21:44I can't because I have to have a level of service and you see our reviews.
00:21:46I'm not willing to, I'm not willing to sacrifice my reputation for that.
00:21:49Some people are though, because they're in and out of the industry.
00:21:52Yeah.
00:21:52They come in, they just start moving for short periods of time and then they get out.
00:21:56Yeah.
00:21:56I'm here for the long run.
00:21:57Right.
00:21:57Yeah.
00:22:06Now that we have a better idea of what our offers are, what we need to say is,
00:22:10I would include, we'll give them a free VIP upgrade or free white glove,
00:22:13if you want to just use that term, for anyone who you refer just so they think good things about you.
00:22:18Okay.
00:22:18They need to gain from referring you.
00:22:20Their customer has to see them better because they have the hookup.
00:22:23Right.
00:22:23People go to realtors because they're supposed to know the area better
00:22:26and they've done this more times than they have.
00:22:27Right.
00:22:27If you knew everything, you wouldn't need a realtor because you already know the houses,
00:22:30you already know the deal.
00:22:31Yeah.
00:22:31Right.
00:22:32So saying, oh, my guy, I've got an amazing moving company.
00:22:36They give all my customers free upgrades.
00:22:37That makes them look great.
00:22:39Right.
00:22:40Got it.
00:22:40Okay.
00:22:41I love the offer.
00:22:42So we did try SMS.
00:22:44We also tried emails.
00:22:45Emails did not get us absolutely zero conversion.
00:22:47Yeah, they're on their phone.
00:22:48That makes sense.
00:22:48Yeah.
00:22:48So SMS is what would give us some traction.
00:22:51And then what we've been trying lately is that we would just go follow them on Instagram.
00:22:54I think following and DMing would probably have a higher conversion than anything else.
00:22:57So what we tried is that SMS, if absolutely any response in a positive way,
00:23:01even like liking the text, I would find that person on Instagram,
00:23:05like go look them up and then follow them.
00:23:07Like, hey, I saw you like the message.
00:23:08We'd love to tell you more about what we have going on.
00:23:10I mean, I think start there.
00:23:12But I would take that list, feed it into AI and have an agent search online,
00:23:17find the Instagram, and then follow them from my account.
00:23:20Okay.
00:23:21And so every day I would DM 10 or 20 of them because you can't, you can only, you know,
00:23:24DM so many.
00:23:25Now, if they follow you back, then you can DM as many times as you want.
00:23:29Right.
00:23:30Yeah.
00:23:30So we could do, there's two considerations.
00:23:32So one is we could say, follow everyone.
00:23:34And then anyone who follows you back, then you DM.
00:23:37That's one option.
00:23:38Or you just automatically DM 10 or 20 cold, independent of whether they follow back.
00:23:42Okay.
00:23:42So you would actually do massive outreach instead of just like picking up the top 100 producers
00:23:46in San Diego?
00:23:47I mean, we should do that.
00:23:48I mean, start there.
00:23:49Yeah.
00:23:49That's why my, okay.
00:23:50My wife could do your job to actually take care of this realtor.
00:23:53So you're going to do your SMS.
00:23:55This is what you're currently doing.
00:23:56I don't think you necessarily change anything about that.
00:23:58That's fine.
00:23:58The second is the follow to DM.
00:24:04And I would say like, do you know anyone?
00:24:07We have our realtor special, which is VIP upgrade.
00:24:14I like that word upgrade.
00:24:16Yeah.
00:24:16Or white glove, whatever you want it.
00:24:18Yeah.
00:24:18And so that would be my auto DM back.
00:24:20Now, the third thing that I would do, because this is like a lot of the realtor
00:24:25offices, the brokerages, right?
00:24:26They have five, 10, 20 agents, right?
00:24:29I would want to go to the head of the brokerage and say, hey, I'll do a brokerage level deal for you.
00:24:33We'll give everyone who's an agent of yours VIP, like for free, if we can just be the first
00:24:38people you call when you have a move.
00:24:40And ideally, it's like, can you integrate us into your packet?
00:24:42Because that's the thing.
00:24:43It's like, they give people packets.
00:24:44Defenders list.
00:24:45Right.
00:24:45Exactly.
00:24:45So it's like, I want to be the only one in the list and I'll give all of your customers VIP
00:24:51upgrade.
00:24:51You can look at our reviews really good.
00:24:53That's where, because you want integration, because as soon as you get integrated in their
00:24:56sales process, as long as you could do a good job, they'll just, they're not going to look
00:24:59anywhere else.
00:24:59Yeah.
00:25:00I have two that I can like, let it call up today and set up an appointment for this upcoming,
00:25:03like tomorrow.
00:25:04Yeah.
00:25:04Because like one brokerage might sell 20 agents, right?
00:25:08Well, yeah, 20 agents.
00:25:09And then each agent might sell, you know, let's say a house a quarter on average.
00:25:12I'm just making it up.
00:25:13Right.
00:25:13Yeah.
00:25:13So it's like every brokerage is five houses a month.
00:25:16Okay.
00:25:17That's $15,000.
00:25:18Right.
00:25:18When an average of three grand.
00:25:20Per.
00:25:20Right.
00:25:21Yeah.
00:25:21And so it's like, okay, well, how many brokerages are there?
00:25:23Plenty.
00:25:24A lot.
00:25:24Right.
00:25:25And so I'd rather you sell one to sell 60 a year.
00:25:29Like that's what's worth your time.
00:25:30Look, let Jacob take the individual calls.
00:25:32Yeah.
00:25:33But you should be going out and getting the brokerage who's going to get you 60 houses a year
00:25:37each.
00:25:37And then like every week you bring another brokerage on.
00:25:39And that means like every week you're bringing another five deals a month on.
00:25:43And it stacks.
00:25:44Right.
00:25:44And then what's going to, the next bottleneck is going to be, you're not going to be able
00:25:47to manage the relationships.
00:25:49It's not there yet, but that's what's going to happen.
00:25:50And so you're going to need to hire one person to full-time manage the realtor.
00:25:53Developer.
00:25:54Yeah, exactly.
00:25:55It's just a farmer.
00:25:56My wife is going to be doing that for now.
00:25:57Great.
00:25:58So I think we target brokerages.
00:26:03Because this is the long-term flight.
00:26:04Like you, like, it's good to have the reviews you do and that's going to continue to compound
00:26:07and all that stuff.
00:26:08But where I'd like you to get is in the future at some point,
00:26:11you just start turning deals down that are too small.
00:26:13Like one bedrooms and some deliveries.
00:26:14You'd be like, it's just not, we're not there.
00:26:17Yeah.
00:26:17I'd like you to get there because there will be a day where you don't do deals under 3k
00:26:21or under 5k.
00:26:23Yeah.
00:26:23They exist.
00:26:23I know, trust me, I have to believe that they exist.
00:26:26They do exist.
00:26:26I promise you.
00:26:28Okay.
00:26:28So we have our offer.
00:26:29We have our VIP under standard.
00:26:30Now it's the key thing to differentiate us.
00:26:32We itemize all the elements inside of the sales process.
00:26:36So again, we can further differentiate from the hourly.
00:26:38If we're going to stick with hourly,
00:26:39then we still have to have as many different colors as we can here.
00:26:41All right.
00:26:41Okay.
00:26:43Then, and also, I'm very flexible on this.
00:26:46This might be able to be 225.
00:26:47Like, continue to keep pushing this VIP level up until people say no,
00:26:51because you always have your backup.
00:26:52You can always fall down to standard.
00:26:53Standard, yeah.
00:26:54But the people who have money will just, they'll spend more.
00:26:56It's just, it's a different monster.
00:26:58Realtors, we keep doing this, but I think these two will give you more leverage.
00:27:02This one is the biggest one.
00:27:03Okay.
00:27:04Can I ask one question?
00:27:05You want to show up in person here.
00:27:07And so here's how I do it.
00:27:09This is the process.
00:27:11Once you get any realtor thing, you need to show up in person to their office
00:27:16to meet all the other realtors in their brokerage, come, come with donuts,
00:27:19come with whatever, meet the head guy and say like, I had, you know, I set up Kelly.
00:27:23Was that a good experience, Kelly?
00:27:25Great.
00:27:26I can give every single one of your agents VIP upgrades for all of our moves for free.
00:27:31That's on me just because she was so great to work with.
00:27:34And it gives you something that you can kind of have as a nice experience.
00:27:37Yeah.
00:27:39Okay.
00:27:39What was the question?
00:27:40The question is about the SMS.
00:27:41Like, because now I have a list about 12,000 agents.
00:27:43What do you think the first SMS should be like?
00:27:45Should it keep you the same or it doesn't really matter?
00:27:47You're going to test it, man.
00:27:48You're going to see what the response right now is.
00:27:50But would you send the same thing to all of them?
00:27:51The smart cookie move would be look up the agent.
00:27:56AI can do all of this.
00:27:57Yeah, yeah.
00:27:57All of this AI can do.
00:27:58In this cloud, yeah.
00:27:59Yeah.
00:27:59So hook up AI to the list.
00:28:04Create an Excel sheet that has personalized information.
00:28:06Okay.
00:28:07And then have a template for it to then output what you think or what it thinks the personalized
00:28:12first text should be.
00:28:13Okay.
00:28:14And it'll give you the whole list of all hundred.
00:28:15You read them real quick to make sure that they sound like they make sense.
00:28:18And click go.
00:28:19Got it.
00:28:20Because then they could all be personalized.
00:28:21That's what I would test against just the generic opener.
00:28:23Got it.
00:28:24And if you want to be wild, you could probably, are you doing it from a, you're doing it from
00:28:28a true SMS, right?
00:28:29No, I was using a MailChimp.
00:28:31Is that, does it have like a, a, an iPhone, like a blue thing?
00:28:34No, not the blue bubble.
00:28:35No.
00:28:35Okay.
00:28:35Would you recommend the blue bubble?
00:28:36I would give it a shot.
00:28:37So I would say four blue bubble.
00:28:43And I would say just test it because it's going to be more, but if you have a higher response
00:28:46rate, then it's worth it.
00:28:48With an area code that's local.
00:28:50Yeah.
00:28:50And then five for this SMS here.
00:28:53Is AI personalization for that first message.
00:28:57It'll also make it less likely that you get put into spam.
00:29:01Because if the carriers see you spend the same thing to a hundred people,
00:29:04they, they spam the number.
00:29:05Yeah.
00:29:13So traffic.
00:29:13So there's a couple, a couple of smaller things that I think are worth doing.
00:29:16So right now, how are you getting the reviews?
00:29:18What's the review process?
00:29:19So as soon as we finished the move and the guys just ask for a review immediately,
00:29:22it was a huge favorite.
00:29:23It takes 30 seconds.
00:29:24It helps us tremendously.
00:29:25So what's the script for the guys to ask?
00:29:27If you guys think we did a great job, would you mind leaving us a five-star review?
00:29:30We'd highly appreciate it.
00:29:31It takes 30 seconds.
00:29:32So I would just add one little piece in, which is there's probably a leader on each
00:29:39job site, right?
00:29:39Yeah.
00:29:40So the foreman goes over and says, hey, you know, was this a good experience?
00:29:44Yes.
00:29:45Okay.
00:29:45Well, um, the guys get a little spiff from ownership for five-star reviews.
00:29:50So if it, if it means anything to you, it would mean a ton to those guys.
00:29:53And then you can just take who got the most reviews at the end of the month and give a hundred
00:29:56bucks.
00:29:56It doesn't matter.
00:29:57But like the likelihood that they'll just leave review six out of 10, if it's like
00:30:01these guys, it actually makes a difference for them.
00:30:03The likelihood that they'll leave, it's way higher.
00:30:05And it's better when it's not you, because you can't be like ownership.
00:30:08I mean, you can, but like, yeah, right.
00:30:11That's true.
00:30:12But it's easier for the foreman to just be like, uh, the owner gives, um, an extra spiff
00:30:17to the guys, um, if, if they get a five-star.
00:30:20Okay.
00:30:21So one is foreman review.
00:30:26Foreman owner.
00:30:28I'll say spiff.
00:30:29How about that?
00:30:30Perfect.
00:30:31And then two, do you do any social media?
00:30:34Apparently.
00:30:34Okay.
00:30:35So I'll bet you, you're losing to people who have better socials than you are,
00:30:40because obviously search is one thing, but the next thing you look at is, well,
00:30:43let me see if I can find these people on social and that'll make a big swing.
00:30:46And so can you maybe have the foreman do like a before and after?
00:30:51Um, like house full and house empty.
00:30:53Yeah.
00:30:54And then also empty to full.
00:30:56So basically it's four, it's, it's before, after at site one, before, after at site two,
00:31:01clipped into one.
00:31:02Okay.
00:31:02Cause you can just post those just before and afters.
00:31:05And if you get the review, put the five-star review at the end.
00:31:08Got it.
00:31:08Okay.
00:31:09So it's like, you're posting before and after review, before and after review, before and after
00:31:12review.
00:31:12Got it.
00:31:13Okay.
00:31:13So the organic is before, right?
00:31:16After at site one.
00:31:19And then again, before, after at site two, and then review.
00:31:26So it literally shows the full, right?
00:31:29End to end.
00:31:30Like this is what it was.
00:31:30This is what we did.
00:31:31This is where we went.
00:31:32This is what happened.
00:31:32And they said it was awesome.
00:31:35Over and over and over and over again.
00:31:36Okay.
00:31:37Yeah.
00:31:37And then if you can, I would get the realtor reviews because that's going to matter more
00:31:41again for, um, and when I say reviews, I mean really testimonials.
00:31:46Like on a video.
00:31:47Yeah.
00:31:47Okay.
00:31:48Yeah.
00:31:49I can definitely do that.
00:31:51Yeah.
00:31:51Yeah.
00:31:51And also, because the thing is, is the bigger, the bigger your organic following gets, right?
00:31:56When you go to that brokerage and you say, Hey, we're good movers.
00:31:59We've been in the area for a while.
00:32:00We just made a partnership with XYZ Realty.
00:32:03If you're looking to sell house, check it out.
00:32:04Like they love that.
00:32:05It's free promotion for them.
00:32:06And you just throw it in if they do the deal with you.
00:32:08Beautiful.
00:32:08Now when you have a hundred thousand followers that are local,
00:32:10makes a bigger difference than we have one.
00:32:12Got it.
00:32:12So because big picture, if we need the business to grow, right?
00:32:17One is we're having a more premium offer.
00:32:19So for the people who want to spend money, we allow them to do it, right?
00:32:23Yeah.
00:32:23And we're including things that other people are not mentioning, which are these elements,
00:32:28which then when we get into the sales process, we ask the normal questions,
00:32:30but then we ask their preferences, which they didn't think about to differentiate our price
00:32:35versus everyone else's.
00:32:36And then we can step down from VIP to, Oh, you don't actually care about those preferences.
00:32:40Oh, you're more on a budget.
00:32:41You don't care about that stuff.
00:32:42Fine.
00:32:43Because I promise you're not going to find these things at a different price.
00:32:48Then with our realtors, we're adding in the personalization for the AI.
00:32:51This is going to be more lead gen.
00:32:54This is going to be big, especially when it's paired with these, right?
00:32:58Brokerages is what I think you should do.
00:33:01This is the highest leverage thing that you can do is you go and get 20 agents at a time.
00:33:04As soon as you get one realtor who responds back, I would go in person.
00:33:09Got it.
00:33:09Because then it's like, you don't just get them.
00:33:11Because they're already a unit that can send you business every month, but they have five other
00:33:15people or 20 other people in their brokerage.
00:33:17That would be what I would go.
00:33:18That's, this is my, my big 20X lever.
00:33:21This is just to enhance that.
00:33:22This is the, this is the smallest piece.
00:33:24I wouldn't even obsess about it, but these are the bigger ones.
00:33:26Got it.
00:33:27So we can just boost the guy's reviews, just run the spiff play.
00:33:31And then from a long-term perspective, we can build up our organic by doing before and afters
00:33:36at every single site with a review at the end.
00:33:39I think we do all this stuff.
00:33:41This is going to be your, your biggest one.
00:33:45That's the biggest left for you.
00:33:46This is probably going to be like this.
00:33:48These guys are going to be your second biggest lift.
00:33:51And then this whole sales process that I outlined here
00:33:53is going to help you win those other 40% of deals.
00:33:56Long-term that'll compound too.
00:33:58Thank you so much.
00:33:59Appreciate you.
00:33:59Yeah, congrats.
00:34:05All right, let's see.
00:34:06So if we're looking at where you're at in the scaling roadmap,
00:34:08you're between three and four, mostly on the four side because you've got six employees.
00:34:11You're acting as a manager, right?
00:34:13It's your first full team.
00:34:14And so from a product perspective, you were saying yes to everyone who would pay.
00:34:17Yes.
00:34:18I mean, desperate, you know.
00:34:19Right?
00:34:20Yeah.
00:34:20No, you're good.
00:34:21This is the transition.
00:34:22You were getting feedback from different customers.
00:34:23So you were like, ah, do I do the cheap thing or do the expensive thing?
00:34:26I've got these very different.
00:34:27So to graduate, we have to specialize the product, which creates our V2, which is the VIP.
00:34:31And we price to serve that richer customer score.
00:34:33And just for the magic of the audience here, it's not like I had this and I wrote this after.
00:34:38We talked.
00:34:38No, it put me here when I did the whole thing online.
00:34:41But now you're here.
00:34:42Put me here.
00:34:42Yeah, yeah.
00:34:43But now you're here, right?
00:34:43Yeah.
00:34:44From a marketing perspective, we're talking to many unqualified leads,
00:34:46which is what we're dealing with.
00:34:47And so we have to make more content, which is what we're doing on the before and after side,
00:34:51right?
00:34:52And we're adding more qualifications and friction, right?
00:34:54Which goes into these elements of what we can do to kind of differentiate what we're selling,
00:35:00which from a sales process, speed to contact.
00:35:02Now, you haven't had it drop yet because you still need to get more lead volume in,
00:35:05right?
00:35:06And so we have to start tracking a little bit more on this side than you probably are.
00:35:11Now, from a customer success perspective, you've been doing fine.
00:35:13But as we scale, quality is going to be something that's going to drop.
00:35:16And so to move from here to here, we're going to have to have a quality assurance loop that's
00:35:20going to happen.
00:35:21That's not a problem yet.
00:35:21It's going to be.
00:35:22Okay.
00:35:24Thank you so much.
00:35:25Appreciate it.
00:35:25Thank you, dude.
00:35:26This is great.
00:35:26Thank you.
00:35:27Just looking back at all these other business owners, looking at them like they're bigger.
00:35:31They're very mature.
00:35:32I can tell that they have tapped into some phases of life that I haven't gotten to.
00:35:35I do for sure think that Niles has youth on his side, so full of energy and so full of optimism
00:35:44and excitement and definitely strikes me as an action taker.
00:35:47He was very positive, very enthusiastic and very young.
00:35:51That was my first impression.
00:35:52His niche is super accessible, especially where he's at.
00:35:55So I think he can really have a lot of success in what he's doing.
00:35:58I think the biggest advantage that I have out of everybody is that I'm small enough
00:36:02that I could grow the fastest.
00:36:11The idea behind this is who do we want to scale with over the next year
00:36:17versus necessarily where someone could potentially kind of fall off.
00:36:22The business is very straightforward.
00:36:25I think the biggest thing that I don't like about the business is I hate selling hourly
00:36:31with a vicious passion.
00:36:33And so I would do everything in my power to
00:36:38transition to only these realtors and only selling by job so that we can get out of this
00:36:45kind of like rat race and dealing with these high volume kind of BS.
00:36:49Also, the competitors that are going to compete at the bottom aren't going to be legit and the
00:36:52customers you're selling to aren't going to appreciate the difference because they are truly bargain shopping.
00:36:56And they might not have things of value.
00:36:58So they might not care if they break and things like that.
00:37:02I
00:37:10Dude, my heart can't do it.
00:37:12I honestly can't do it.
00:37:14I'm supposed to scale or fail you.
00:37:16And the fail has nothing to do with whether or not the business will fail.
00:37:20This plan will succeed.
00:37:21The reason that I particularly wouldn't want to do it yet is because I think you're too far away from
00:37:25getting to multiple locations, which is where I would gain more interest.
00:37:28Does that make sense?
00:37:30And so for only the purposes of our big, big term discussion,
00:37:36I will fail.
00:37:37But from a short term angle, you're going to do great, dude.
00:37:42All right, this will work.
00:37:44Once you get this dialed and you can move up the avatar.
00:37:47This is one step towards not selling for hourly.
00:37:50And we can start selling packages.
00:37:51We can start selling turnkey moves.
00:37:54That's where this becomes more interesting.
00:37:55And you can start getting into new markets with a clear differentiated product,
00:37:58which then will allow you to really scale.
00:38:02Cool?
00:38:02Sounds great.
00:38:03All right.
00:38:03Thank you so much.
00:38:04Appreciate you.
00:38:04Thank you.
00:38:07The one moment where I really felt like we were going to scale is when we mentioned the realtors
00:38:11and how much value we could get out of it in the next few months.
00:38:16But the moment when I knew it could be a fail is when I said in the very beginning,
00:38:20the goal is to grow to multiple locations.
00:38:21That was really stupid of me.
00:38:22I probably shouldn't have said that at all.
00:38:24But it is what it is.
00:38:25And we're just going to take the plan and work through it.
00:38:27The way I feel right now is I feel amazing.
00:38:30At the end of the day, it's his opinion.
00:38:32I'm very tenacious.
00:38:33So I'm just going to go back, take that plan that he just put on that beautiful white piece
00:38:36of paper.
00:38:37And we're going to go ahead and execute it for the next 90 days.
00:38:39And we'll see how we do.
00:38:41And we'll scale the business.
00:38:43We will absolutely scale the business.
00:38:44Basically, it's like, I want to be able to apply what we're good at to the business that can
00:38:49get the most out of it.
00:38:51And all of these things have to happen in the model for it to kind of get nailed before it can scale.
00:38:56And so right now, I think he's in the nail it phase more than the scale it phase.
00:39:00And so that's why all of these changes are really nailing the model before we scale it.
00:39:04To be fully transparent, I really did not have any expectations.
00:39:07Was I really surprised?
00:39:09Just a little bit.
00:39:10So in the next 90 days, I have already put a plan.
00:39:13I have already talked to somebody to get a second truck since we've been getting
00:39:16more of the bigger jobs with the realtors.
00:39:18My wife, that's all she does all day now.
00:39:21It's just realtors implementing with AI.
00:39:23So yeah, as soon as I go back, I'm going to have to tell my wife the truth.
00:39:30I can't lie to her.
00:39:30I'm sorry.
00:39:32I did not.
00:39:40I did not think this would be like this.
00:39:46Honestly, had they not come here, the business would have grown a little bit, but not at the
00:40:00level it's about to be, to be launched.
00:40:03And the reason why it's because I always keep this thing in my heart.
00:40:06Every single time somebody says, you can't do this thing.
00:40:10So I'm getting a little bit emotional, man.
00:40:13Every single time, every single time somebody said, I couldn't do certain things.
00:40:19I would just go and do it faster and better and stronger every single time.
00:40:24But I really think that roadmap is absolutely priceless.
00:40:27Priceless.
00:40:28Because we'll make that in, again, the $100,000 that we didn't get,
00:40:30we'll make it in two months even before these guys come back to the show.
00:40:33Maybe he'll change his mind.
00:40:41So two things.
00:40:41One, I referenced the scaling roadmap.
00:40:43Wherever you're at, you should check out where you're on there.
00:40:45Like, it's pretty spot on.
00:40:46It's because businesses are not as unique as we think they are.
00:40:49Patterns exist across all of them.
00:40:51So that thing's free.
00:40:52You can go grab it.
00:40:53But inside my offers book, I talk about,
00:40:56I think the first chapter is that you're selling commodity, the commodity problem.
00:40:59And if a customer can look at two things and say, these are the same,
00:41:02they will always take the cheaper item.
00:41:03And so our goal as business owners, unless your entire strategy is to be the cheapest,
00:41:08which is you want to compete in the commodities game and you built your whole
00:41:10business to be cheaper than everyone else.
00:41:12Unless that's your goal, which it rarely is.
00:41:14And it probably shouldn't be for service.
00:41:16Then you want to be on the other side of the spectrum,
00:41:18which is you want to be the value leader.
00:41:19And value leader is thinking about all the different components
00:41:21that a customer and all the problems that you could potentially solve for a customer,
00:41:25break them down kind of like I just did and say, okay,
00:41:27these are all the elements that a customer is not thinking about.
00:41:29But once I present them, they realize that these are actually two very different things,
00:41:32which then allows us to price for the right customer at a much more premium price.
00:41:36Thanks for watching.
00:41:37And we'll see you in the next scale or fail.
00:41:40Next time on scale or fail.
00:41:43I'm Mim Jenkinson and I teach crafters how to make stickers.
00:41:49If you double the amount of customers you have, does it break anything?
00:41:52Nope.
00:41:52Okay.
00:41:52So this is a pure demand issue.
00:41:54Right.
00:41:54Yeah.
00:41:54This would be a higher risk test, but one that I would strongly consider.
00:41:58I'm not risk diverse.
00:42:00Okay.
00:42:00We won't be talking hundreds.
00:42:02We have to.
00:42:02No, I get it.
00:42:02How many stickers do people make?
00:42:04Oh, thousands.
00:42:05Question is, do I want to spend a year working with you to scale this?
00:42:09Or do I think there's something that's going to get in the way?
00:42:12And so the verdict is,
00:42:13you

Key Takeaway

Transitioning from a commoditized hourly moving model to a differentiated value-based model by utilizing VIP tiers, realtor partnerships, and service-based upselling is necessary for sustainable scaling.

Highlights

  • Flex Learning Moving and Delivery generated $300,000 in revenue over the last 12 months with a 62% profit margin.

  • Realtor referrals generate over $3,000 per job, compared to significantly lower returns from other customer acquisition channels.

  • A two-tier service model separates customers into 'VIP' (full service, master movers, materials included) and 'standard' categories.

  • A 10% to 20% same-day surcharge captures high-margin revenue from customers needing immediate service.

  • Direct in-person visits to brokerages after establishing a successful referral relationship provide high-leverage opportunities to secure consistent, multi-deal contracts.

Timeline

Business model and current metrics

  • The business generated $300,000 in revenue over the past 12 months with a 62% profit margin.
  • Residential moves charged at an hourly rate constitute 90% of current revenue.
  • Realtor outreach currently yields over $3,000 per job, significantly outperforming other lead sources.

The business operates in San Diego, California, primarily serving the residential moving market. While the company is profitable, it is currently constrained by a reliance on hourly billing and a lack of lead volume. The owner aims to expand to multiple locations with $2 to $4 million in revenue per location over the next two to three years.

Differentiating the service through tiered offerings

  • Moving away from hourly pricing toward job-based estimates breaks the commoditized price comparison frame.
  • Implementing a VIP service tier featuring master movers, material inclusion, and no hidden fees creates a unique value proposition.
  • Risk, speed, and ease are the primary variables to manipulate to justify premium pricing over competitors.

To scale, the business must stop competing solely on hourly rates, which causes customers to default to the cheapest option. A 'VIP' tier allows the company to target wealthier clients and utilize 'master movers' who have completed at least 50 to 100 moves. This strategy utilizes 'seeds of doubt' against competitors by highlighting the risks of hiring uninsured, unskilled labor.

Refining sales process and realtor outreach

  • Price objections are overcome by offering distinct service variables rather than just discounting.
  • Realtors are better served by offering their clients a 'VIP' service upgrade rather than a $250 commission incentive.
  • Targeting the head of a brokerage for a firm-wide agreement secures consistent, recurring deal flow.

The sales process must educate customers on the difference between cheap labor and professional, insured services. When approaching realtors, the strategy shifts to becoming an integrated partner by offering 'white glove' upgrades to all referrals. This approach elevates the realtor's value to their own clients and provides the moving company with deeper, more reliable lead sources.

Marketing, lead generation, and operational scaling

  • A performance-based spiff for foremen increases the collection rate of five-star reviews.
  • Social media content should follow a 'before, after, and review' format to build organic trust.
  • Personalized, AI-driven outreach to realtors on Instagram and SMS improves conversion rates compared to generic messaging.

Operational efficiency increases by automating realtor outreach and focusing on high-volume brokerages. Social media is utilized as proof of service, showing the journey from an unorganized space to a completed move. These marketing efforts, combined with internal certification levels for movers, build the foundation necessary to support multi-location growth.

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