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Stop Paying Employees By The Hour (Coaching Call with Mike Andes)

⏱️ 27:41 🎀 Mike Andes, Dylan
AUDIO EPISODE
Stop Paying Employees By The Hour (Coaching Call with Mike Andes)
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Chapters

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  • 0:00
    Introduction to P4P
    Mike Andes introduces the concept of pay-for-performance for a pool service business owner, focusing on simplicity over budget hours.
  • 0:58
    Business Background & Pricing
    The guest shares his business history, including initial struggles with pricing, particularly chemical costs, and his journey to establish profitable rates.
  • 7:29
    Per Pool Bonus Structure
    Dylan proposes a tiered bonus system based on the number of pools serviced per week, which Mike refines for better incentive alignment.
  • 10:33
    Quality & Quantity Metrics
    Mike and Dylan discuss balancing quantity (pools serviced) with quality (callbacks) and the challenges of simplifying performance pay without budget hours.
  • 25:47
    Yellow Slip System
    Mike suggests a 'yellow slip' system to penalize callbacks, reducing the pool count for bonus calculations, to encourage quality work.
  • 30:26
    Incentivizing Upsells & Repairs
    The conversation shifts to incentivizing upsells for cleaning technicians and establishing a base pay plus commission for repair technicians.
  • 40:50
    Pricing Strategy for Growth
    Dylan questions whether to raise prices aggressively now or wait until reaching full capacity, and Mike offers insights on leveraging capacity for profit.
  • 57:18
    Addressing Price Increase Fear
    They discuss the fear of raising prices and how 'bad reviews' about high prices can actually filter out undesirable customers.

Speakers

M
Mike Andes
Host β€” founder of Augusta Lawn Care; founder of Homeworks
D
Dylan
pool service business owner

Key Takeaways

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Implement a tiered 'per pool' bonus system with smaller increments (e.g., every 5 pools) to motivate employees to consistently exceed minimum quotas and encourage higher output.

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Introduce a 'yellow slip' penalty system where callbacks reduce the weekly pool count, making employees more cautious about quality as they approach bonus tiers.

✦

For repair technicians, offer a hybrid compensation model: a secure base hourly pay with an additional percentage of labor revenue, paying whichever is higher, to incentivize performance while providing stability.

✦

When facing capacity constraints, consider aggressively increasing marketing spend to reach full capacity faster, then implementing a significant price increase across all customers to maximize profitability.

✦

View 'too expensive' feedback from customers as a positive filter, as it identifies clients who are not a good fit for your value proposition and allows you to focus on those who appreciate quality.

✦

Integrate upsell incentives directly into the performance pay system, such as awarding 'extra pools' for successful sales, to simplify compensation and encourage proactive sales from cleaning technicians.

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