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Content

How to LOSE Money on Every Job

⏱️ 44:30 🎀 Mike Andes, Jack, Malia, Eddie Campbell, Ferez, Carter, Sebastian
AUDIO EPISODE
How to LOSE Money on Every Job
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Chapters

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  • 0:00
    Underpriced Services
    Jack, a business owner, shares his current pricing of $75 per hour for a three-person crew and struggles with scaling due to high overhead and low profit margins.
  • 3:39
    Adjusting Pricing Strategy
    Mike strongly advises Jack to increase his hourly rate to $75 per person, not per crew, to ensure profitability and sustainable growth.
  • 7:29
    Increasing Value & Conversion
    Mike explains that low conversion rates after raising prices are due to perceived low value and suggests improving the website, getting more reviews, and focusing on customer trust.
  • 9:20
    Owner's Role & Staffing
    Mike advises Jack, with an admin and foreman, to stay in the field until revenue exceeds $500,000 to maintain profitability and avoid being 'top heavy'.
  • 19:42
    Profit Sharing & Employee Pay
    Eddie asks about implementing profit sharing, and Mike recommends open-book management, explaining that profit sharing should be team-based, while individual wages can vary based on skill.
  • 28:35
    Monthly vs. Per-Cut Pricing
    Eddie asks about monthly vs. per-cut pricing for lawn services, and Mike suggests per-cut for growth-mode businesses due to market friction with monthly pricing, though monthly can aid cash flow.
  • 37:24
    Hiring Strategy
    Sebastian asks about hiring before or after workload. Mike advises against creating excess capacity and recommends developing reliable hiring and training systems, maintaining a candidate bench, and focusing on customer acquisition cost.
  • 47:08
    Marketing for Specific Leads
    Ferez discusses growing his business and landing bigger landscaping jobs, and Mike explains that changing the type of leads requires changing branding and marketing focus.
  • 52:00
    Google Business Optimization
    Mike provides actionable steps for Ferez to improve his Google Business listing, including verifying an address, getting 30 reviews, and actively posting and responding to reviews to increase leads.
  • 1:00:12
    Website Updates & Multi-Service Businesses
    Malia asks about website updates and managing a business with separate Christmas lighting services, and Mike advises seasonal updates and, for smaller revenue, combining services on one website with a dedicated service page to save costs and consolidate reviews.

Speakers

M
Mike Andes
Host
J
Jack
M
Malia
E
Eddie Campbell
F
Ferez
C
Carter
S
Sebastian

Key Takeaways

✦

Re-evaluate your pricing: Charging an extremely low hourly rate for a crew, like $75 for three people, is unsustainable and will lead to losing money as you scale. Aim for an hourly rate per person that is at least three times their wage.

✦

Increase perceived value, not just lower price: If customers are rejecting higher prices, focus on improving your brand's value through a professional website, strong online reviews, and clear communication of your quality.

✦

Owners should remain active in operations until significant revenue is reached: For businesses under $500,000 in revenue, the owner being 'off the truck' and having multiple administrative and managerial staff can make the business top-heavy and unprofitable.

✦

Optimize your Google Business Profile: Verify a physical address (ideally central to your target service area), accumulate at least 30 positive Google reviews, and regularly post updates and respond to all reviews (using AI tools for efficient, SEO-friendly responses).

✦

Tailor your marketing to attract desired leads: If you want bigger or different types of jobs, your website and marketing materials must visually reflect those services to attract the right customers.

✦

Implement effective hiring and onboarding systems: Develop a reliable process for hiring and training employees quickly, and maintain a bench of qualified candidates to avoid hiring too early and creating costly excess capacity.

✦

Consider the 'boil the puddle' marketing strategy: For farming specific neighborhoods, use a multi-pronged approach (direct mail, door hangers, yard signs) within a concentrated area to maximize density and profitability before expanding.

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