Episode Transcript
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SPEAKER_00 (00:00):
What's up one and
welcome to another episode of
From the Yellow Share.
I know first of all, I am thestrategy to post over here at
Monster Marketing, or we alsostart something to work on all
of their vendors in a secure andtrue marketing strategy of
place, and we're supposed towork in all the programs.
So today now I'm gonna talkabout pricing.
(00:20):
And now what we are at pricing,we're gonna start ourselves.
(01:16):
All right, listen, most homeservices businesses step pricing
emotionally, not intentionally.
And I see clients all the time,they'll be concerned about
taking price increases ondifferent products and different
services.
Oh, I just can't, I can't, Ican't, and you can, you can, you
can't.
And you should, you should, youshould.
Okay, so at the end of the dayhere, what I want you to know is
pricing is a part of growing ourbusiness.
(01:38):
There are three things thatyou're gonna grow your business
with every single year.
One of them is pricing.
Um, many of you would hitrevenue goals if you would
increase your pricing by a verysmall percentage.
You would just add a priceincrease in there, you naturally
would grow your revenue.
Number two is operationalexcellence.
The weight of performance isactually on whoever is in charge
(01:59):
of operation.
And odds are that is you.
And so when operations are underyour control, you have to be
managing average tickets on alltypes of jobs and conversion
rates and booking rates and callrates.
And I I call that alphabet soupof your life.
But listen, those KPIs are socrucial to really, really moving
the business forward.
(02:19):
It will not be marketing thatthat just skyrockets your
business.
It's going to be all of a suddenoperationally, things just
started clicking.
Marketing exponentially makesthat easier and better.
But at the end of the day, ifyou can't execute on two leads,
you for sure can't execute on200.
And so operational excellence isnumber two.
And then number three ismarketing.
(02:40):
So those three things are howyou are going to get new
revenue, how you're going togrow your business.
It's those three things, oddsare, that is really going to be
what really help helps youthere.
So we're going to break thatcycle.
We're going to give youconfidence to price for profit
without fear.
And we're going to talk abouthow you can use the marketing
tactics to really get that done.
(03:00):
So, you know, the number onething I think is we have the big
fear factor.
I don't know about you guys, butwhen I was growing up, Fear
Factor was the most, you know,craziest show on TV, right?
People were eating likecockroaches and termites and
molded food and gross stuff.
It was terrible.
Um, but the fear factor lieswith us thinking that we are
high.
Listen, I'm an emotional person.
(03:22):
I'm a high eye on the disprofileside.
I really just want to like behappy for you and have a party
and like give you a birthdaycake and have all kinds of fun.
Um, and so the idea of likehaving to tell you I'm taking a
price increase and things likethat gives me major anxiety.
But or I think we worry thatwe're going to scare customers
off that we're going to umencourage them to go a different
way.
But the truth is people willalways pay more when there are
(03:46):
three C's clarity, confidence,and consistency.
When there is clarity on whatthey are buying, when your
technicians have confidence inwhat they're saying, and when
you're consistently providingoptions for both repair and
replacement and one, two, andthree level, when you are
consistently giving yourhomeowner options, you
(04:06):
consistently will understand whypeople will pay more.
They will invest more with yourcompany because the overall
customer experience with you hasbeen high-end.
It's the same reason that whenyou go in to buy a Bugatti or
they don't come out withflip-flops.
Hell, you barely can even buyit.
Um, like it's it's so secretive,right?
(04:27):
Because, but they understandthat to sell this high-end car,
there has to be a high-endcustomer experience.
If you're trying to be the mostexpensive shop around, um, and
when I say expensive is a crazyterm, but when you're trying to
be a very high-value shop, thecustomer experience has to
match.
You got to do a vibe check,right?
(04:47):
So if your technician is pullingup in a peeling van that has
three companies' logos of go,it's peeling.
They pull up, they put theircigarette out, their shirt's
untucked, they walk up there,there's paper everywhere, their
hat's cockeyed, and they'relike, Yeah, I'm here to do
service.
And then they try to sell me a$20,000 system, odds are not
today.
Not today, sir, right?
(05:08):
So everything has to match.
So I need you to take a stepback in your business and say,
does every touch point of mybusiness reflect high-end
equipment, high-end service, atrue investment in my own work?
And if it doesn't, if itdoesn't, if there are holes, if
you've got a a pissy littledispatcher, if you've got a
little sarcastic CSR, um, and ifyou've got a technician that is
(05:33):
slow and sloppy, and then aninstall crew that leaves trash
everywhere, and they're cussingin the attic and smoking
cigarettes, and there's 17monster energy cans.
Hopefully, it's monster energyfor some of y'all, it could be
other stuff, you know, and thenthey leave, they don't say hi,
they don't shake hands.
That is chunking a truck style.
So if you're wondering, like, Iwonder why I can't get this up,
(05:54):
this could be your problem,right?
So you're not competing on pricewith people, really.
You're competing on theexperience.
You need the experience to betop-notch from day one.
And that really means speed tolead.
Like, how fast are you gettingthem taken care of?
How communicative are you?
And then what is literally thevisual connection to your
(06:15):
company?
And I just want you to thinkabout it.
I just want you to think aboutwhat look at every one of your
technicians in your mind andtell me, do they look good on
this of walking up to my door?
Do their is their van look good?
Um, I'm not saying you can'thave moments, but like if the
whole right side has crashed inbecause Johnny like took out a
mailbox, that's probably notwhat I'm sending to the home.
(06:37):
Um, you might leave that on yourown truck, but at the end of the
day, is that the picture thatyou want drawn?
No.
So again, people will always paymore for clarity, confidence,
and consistency.
So you must prioritize that.
You need to prioritize thoughthose concepts, those three C's
in everything that you do.
Um, and so that means thatpricing is really not the
(06:58):
problem, it's probablyperception.
Um, cheap doesn't equal value.
Premium pricing works when yourexperience matches that vibe
check.
Um, another example that I useof this, and again, so if you
like get your feelings heardreal easy, just pause for a
minute and don't listen to thispart, fast forward a little bit.
But some of your brands are justlike so blah, blah, boring and
(07:20):
dry, and there's no personalityto it.
You're like, okay, well, here'scrystals heating and air, and
we're blue and red, and look,here's my snowflake, and here's
my sunshine.
But you know what?
Oh my god, but everybody knowsme.
They do know you as boring oncrystals heating and air
conditioning, right?
They don't know you, right?
Like, oh, I know them, I lovethem, I engage with them.
(07:41):
And some of y'all are rollingyour eyes at me, but I'm telling
you right now that at the end ofthe day, that's my favorite
saying right now, the end of theday, but at the end of the day,
you have a company, you don'thave a brand.
You have a company, so you haveto have a brand.
And when your brand speaksvolume, so I was talking to
Richard Florinoy, who launchedDeep Dive Plumbing, and he said,
(08:03):
you know, I invested, Crystal,in really nice high-end quality
trucks and the wraps we did asre-brand for him.
He's like, I invested in thatbecause I wanted people to know
that I was serious out of thegate.
Like I was investing in my ownbusiness, and I'm like, you
know, it really resonated withme.
Now people think he's probably a$10 million plumbing company.
And homeboy's just gettingstarted.
He's not even like, but hewanted to put his very best foot
(08:26):
forward.
So many of you have just beenhanging out.
Well, people know me and theylove this logo.
No, they don't.
Y'all, they don't.
They, yes, if you're a95-year-old company and the name
of your company's been crystalseeding in air for 90 years,
maybe we don't change your name.
That's naming also is not a hugething to me, but it's the
overall experience with yourbrand.
Maybe it's colors or a mascot oran icon or a cool font or a cool
(08:49):
placement, but we have got towork on giving you something
that's sticky and juicy andstands out because what it does,
and it looks so nice and clean.
So listen, again, I know noteverybody can afford this, but
please be working towards this.
You got a magnet on the side ofyour truck, terrible.
I look like anybody that hiredsome contract labor to come and
(09:10):
mow my yard.
I went down to the 7-Eleven,hired four people, stuck my
magnet on the side of theirtruck, and they went and mowed
some yards.
That's what it reminds me of.
Not a high-end equipment place,not a high-end heating and air
conditioning or plumbingcompany.
Heck, even those of you that aredoing um pest control and
roofing, y'all be you can stillbe high-end, but you've got to
(09:32):
look the part, right?
I don't show up to be the CEOdressed in what I just mowed the
yard in.
Right.
So if I want to have highexpectations and high value
customers that value the truecustomer experience, very good
communicating, efficientequipment and good services, and
are willing to pay for that.
I have to show up like that.
(09:52):
And that includes what includeswhat your brand looks like, the
communication, theprofessionalism, you have they
all justify your price beforeyou've ever been given an
opportunity to quote it.
That banner at the Little Leaguefield justifies your price
before you quote it.
Your social media post quote isjustifying your price before you
quote it.
Your uniforms, your vehiclewraps, your billboards, your
(10:15):
jingle, how you answer thephone, all of that has built
value.
So if you go back and look andnone of that has happened, you
have a very hard hill to climbwhen you try to build value
there.
And you're stuck being themiddleman or low man on the
total pole when it comes topricing.
And if your price shocks them,then your marketing failed them
before the estimate did.
Right?
Your market, so your pricingsurprised them.
(10:37):
That means we they've not had ahigh-end experience.
Let me tell you this story.
Um, I went to a casino thatshower made unnamed in Vegas,
right?
And I had had a really stressfulweek at work.
I was super tense.
And all because of the overallvibe of this particular hotel,
kind of like clubbing in the2000s, right?
(10:58):
It was there was a little bit ofdrunk people, there was a lot of
alcohol spilled, there wastrash.
It was just, it was mid.
Okay, it was mid-level quality.
So I automatically expected myexperience at their quote
unquote, I'm using air quotesfor those of you that are
listening and not watching, butI had very low expectations,
friends, because I number one,the rooms were cheap.
(11:19):
Number two, everything was notvery concierge.
Now, listen, I had stayed fortwo weeks almost over the past
couple of months at Red RockCasino in Vegas.
That is the epitome of high-end,like super high-end.
Now, maybe not like high-end,like some of y'all that are
super bougie, but high end tocrystal, right?
It smelled good, it wasluxurious, it was beautiful.
So I fully expected the spaexperience there to be
(11:41):
expensive.
So when I went to um Shower MainUnnamed Um Casino and Help, um,
I was like, yeah, that I'mlooking for a$60 massage, right?
Because honestly, everythingthat had happened before I ever
even walked into their spa ledme to believe that this should
be budget, low rate, budgetquality.
(12:04):
Um, and surprisingly, um, I'mjust gonna tell you, the it
pretty much met my expectations.
The massage was fine, but theoverall, the ambiance, the
experience, and so when I got inthere, and they're like, oh,
it'd be$120.
I'm like, well, that's aboutright for this level of massage.
But if they would have saidthat's gonna be$250, I'd be
like, you've lost your mind.
(12:25):
Like homegirl was playing musicon her phone, not even piped in,
like it was dark, weird dark,not like spa dark, like you
know, so like, don't get mestarted on this, right?
Like, I kind of beat it up, youknow, over there.
But really, what I'm trying toshow here is like the price did
not shock me because of myoverall experience, the whole
(12:45):
thing, the entire experience.
Let me know that this should bea budget-level thing.
And so you guys don't, you haveto make sure that you have set
up the entire customer journeyto reflect the price that your
team is about to go quote.
And that's on us.
We need to protect that brand,we need to build that brand, and
we need to curate it.
The other thing that you have todo is know your numbers, right?
(13:06):
So price with a purpose.
Don't just be like, you know, Idon't want to take a 6% price
increase.
What the heck?
Like, do things logically andconsistently and with education
behind it, right?
Do these things like build yourpricing around your actual cost,
your actual profit goals, notwhat like, oh homeboy now the
street's charging$6,000, soshould I?
(13:28):
Absolutely not.
We've got to know why we arepriced the way that we are, and
then you never know how that'sgonna work out.
You need to be tracking yourlabor cost, your overhead
materials, and the desiredmargin that you're looking for.
Those of you that aren't largeenough yet to confirm a solid
price book with a distributor ormanufacturer, I'd be watching
(13:48):
that stuff like a hawk.
Because you need to be watchingeverything that's coming in to
make sure that you're pricedappropriately.
But when you price smart, uhsmartly, you're um you and your
funds will grow.
Marketing, better technicians,better service, just because you
just have better pricing, right?
(14:08):
Um, and on that same level, Ithink there's a couple of things
that you need.
I think you need to uh have atiered pricing approach.
It just gives customers options.
The old adage of good, better,best, right?
Um, I like that idea.
Good, better, best.
So what if I'm having a yearwhere I have good money?
Some years I might have the bestmoney, right?
But you are not in charge ofyour client's price book.
(14:30):
I'm sorry, their pocketbook oftheir price book.
You can tell I talk tocontractors every day.
You're not in charge of theirbank account.
So your job is to coach yourteam to provide options, right?
But when you createtransparency, you create
control.
And they feel like the homeownerfeels like they are getting to
choose what's best for them.
You're not being overly pushy.
You're not giving them onesolution, you're giving them
(14:53):
three solutions.
Another thing is I would neverleave a house without at least
some sort of repairrecommendation if I recommend
that they replace.
I just think it's good work.
Now, there are times that thatjust won't work, but at the end
of the day, hey, I can chargeyou$3,000 to fix that, or we can
get you a new system that's moreefficient, right?
Or whatever's going on with arefrigerant, who knows from day
(15:13):
to day.
But honestly, at the end of theday, your team needs to be
talking through why they can'trepair, documenting why they
can't repair, and then making areplacement opportunity.
And listen, it is all abouttransparency and trust at that
point.
Because if, you know, if grandmamakes a bad decision, where can
you show that your teamprotected that customer's
journey?
(15:34):
Did grandma really was she surewhat she was buying?
I visited a shop in Vegas andthey did the coolest thing.
They did a third-partyverification.
So if a homeowner was making aplumbing repair over, I think it
was$1,500.
It could have been over$25, butthey actually had to call the
consumer, the homeowner calledinto the office.
The office girl just said, Okay,let's pretend like it's me, Miss
(15:55):
Williams.
I see that you're making apurchase of$27.50.
We're gonna do this.
Did anyone pressure you intothis?
Did we provide other options?
Is there any other decisionmakers that need to be in on
this?
Nope, you're good.
This is how you're gonna pay.
Perfect, let's move forward.
And they it's a recorded calland it's logged on there.
So when someone's son, wife,dad, whoever comes in and says,
Y'all manipulated my wife, mygrandma, my aunt, my cousin, my
(16:17):
neighbor, whatever, you have iton recording where you took
extra precautions to make sure.
So I thought that was a reallycool call out and part of the
customer journey there,especially on your elderly
clients, especially on yourelderly clients.
But you know, giving theoptions, giving the customer
good options.
Transparency creates control forthe homeowner.
(16:37):
It puts them in the driver'sseat, and then it also increases
your average ticket and thecustomer satisfaction.
So again, this is why Linux seedwill sometimes say, hey, give a
gift of purchase.
So, hey, if you actually chooseour best option today, it's
coming with X, uh, a Yeticooler, a gas grill, a vacation,
I don't care, something,something that's just that
(17:00):
little, that little gidea, thatlittle extra kiss on top to get
them to pull the trigger to gowith the best option.
Again, it's not designed forpeople to call and be like, I'm
calling here to get a cruise.
I'm willing to buy a new HVACsystem because I want a cruise.
That's never going to work.
You have to utilize these giftwith purchase opportunities to
actually help your people in thehome upsell to those better and
(17:22):
best options on the tiered pricesheet.
That is the goal.
That is how you increase averageticket.
That's how marketing is built toincentivize your team and the
homeowner to make a higher-endinvestment with your company.
Right.
So that's where I need yourheads to be, right?
And then train your team to sellon value, right?
(17:42):
So confidence starts inside.
If your techs or your CSRs arenervous, so is the customer.
If they're unsure, and I'msaying if they start off with
it's kind of expensive, I willkick a wall down, okay?
I'll kick it, I'll be the onethat didn't need your truck.
If you go in and say, Oh, it'skind of expensive.
If your CSR says, uh, do youreally want to join out this
code?
(18:02):
It's kind of high overnight.
Y'all kick a door down.
Kick a door down, right?
I mean, don't literally kick adoor down, but um, you know,
kind of like in your brain, likekick something over.
Because you gotta rattle thecages when that is the
mentality.
It's time for a mind shift withyour team.
Get them confident about why youcharge what you charge, why the
(18:26):
products that you have are theproducts that you have, why
you're doing what you need todo.
But role-playing priceconversations, equip them with
stories, not scripts.
Hey, this is why you know one ofour customers was doing this,
then this is how it worked.
Um, if you lead with paymentfactor when you're selling
equipment, hey, for only$199 amonth, for$209 a month.
(18:47):
Um, you actually can roll inother things, add an IEQ bundle
to it, and it only goes to$249 amonth.
Guys, this is not rocketscience.
This is literally intentionalitybehind pricing and upselling.
All right, so focus on theoutcomes, not the line item,
right?
So, hey, comfort, uh, safety,peace of mind, low electric
(19:09):
bills, quieter air systems,better smelling air, better
visible air, better water,better, faster hot water, right?
All of these things are what youwant to focus on.
We're gonna come out here andinstall this RG7276 and a and a
thermostat.
They're like, huh?
You got to come in and say, MissWilliams, you have made the best
decision.
This system, this system isactually very efficient.
(19:32):
It's gonna help keep your energycosts low.
It's very quiet, has variablespeeds, meaning at different
times it can do different levelsof speeds.
Talk to the consumer as ifthey're not a technician and
sell them the equipment basedoff the services that it serves,
and then utilize marketing totell those stories.
Like that is storytelling.
(19:53):
That's how we show people a trueoutcome that can impact them.
So, and listen, inflation andlabor and materials change so
much to your pricing.
So much your pricing.
So I need you to put that onyour calendar that every so
often you're reviewing andupdating, reviewing and
updating.
(20:14):
Because remember, you're not,most of you do not have a
recurring service model whereyou're charging customers the
same thing every day.
These are new people that nowthey need an air conditioner.
They didn't need one threemonths ago.
They have really no idea whatyour price was three months ago,
all right, or no idea what acapacitor was.
At the end of the day, you'renot selling the part in the
equipment, you're selling theexperience.
Flip your head around to that.
(20:34):
You're selling the experiencewith your customer and don't
apologize for profit.
I none of us run a nonprofitbusiness.
We're not here, we're here tomake money.
We're here to not, and not forjust for ourselves, for our
team.
Um, we want to be able to giveback to our community.
We want to be able to do thesethings.
Um, I'm not apologizing forprofit.
It's what lets me serve ourcustomers and our team and our
(20:58):
team, right?
And stay in business, guys.
It's always stay in business, sodon't be scared to make profit.
Build a habit of reviewing thoserates and quarterly, biannually,
frequently, right?
So smart pricing isn't justabout charging more, it's about
charging the right thing andcreating this full customer
experience that when you pricewith confidence, your customers
(21:20):
feel it too.
You can do it, guys.
It's 2026.
Now's the perfect time to redothat.
Listen, if you need help withyour marketing, your strategy,
your brand, limit seed, we'reyour girls, and there's just you
guys, uh, we can totally helpyou out.
Also, I'd love for you to leaveus a review on this podcast.
If you leave me a review, let meknow.
I'd love to send you some swag.
But thank you for listening toanother episode of From the
Yellow Chair.
(21:40):
Keep it up, guys.
You made it to the end of 2025.
2026 is going to kill it.
Um, let's keep making lemonadeand closing with confidence.
Talk soon.