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October 15, 2019 14 mins

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In this episode, I will describe what a MOE stands for and why this industry is growing rapidly. Mechanical Outsource Estimating is becoming commonplace in the industry these days and now is the time to get in. 

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Speaker 1 (00:10):
Welcome to the six figure tradesman.
This is season one, episode oneour very first podcast ever.
Thanks for joining us.
Today's title is what the hellis a Mo and why is it growing?
So we're, gonna discuss what aMo stands for and why that
industry seems to be on a veryrapid growth here recently.
I am your host, Jamie Henry,creator of estimating business
in a box.

(00:30):
And my job is to inspire you,educate you, and help make you a
better version of yourself.
I'm going to accomplish this bybringing episodes that are full
of information as well asbringing you some episodes that
are a little bit motivationaland uplifting.
Because sometimes knowing whatyou need to do is not nearly as
important as feeling good aboutwhat you're doing.
And then after each episode, Iwould love to hear from everyone

(00:53):
who listens to this.
So please, please send me aquick email to six figure
tradesmen@gmail.com and let meknow how I'm doing and how I can
make these podcasts just alittle bit better.
So I want to open up with aquestion.
The question is, why are you notgetting in on this new fast
paced industry and it's groundfloor level.

(01:13):
So what do I mean by that?
Well, I mean the outsourceestimating business and
specifically Mo, which ismechanical outsource estimating
services is pretty rapidlygrowing these days.
It's becoming the new trend.
So I kind of wonder why peoplearen't getting in.
And I think that it may bebecause they don't know that it
exists or they know that itexists, but they don't know

(01:35):
really how to get it.
Okay.
So first let me explain to youwhat a Mo is.
So most ads for mechanicaloutsource estimating.
Okay.
What does a mechanical outsourceestimator?
Well, that is someone such asmyself.
I have been doing this for overa decade now and what I do is I
have clients that come to mefrom mechanical world heating

(01:56):
companies, hydronic companies,plumbing companies, and these
guys need my help and servicesto help them bid more commercial
projects.
Sometimes they do that becausethey don't really know too well
how to bid the jobs themselves.
Or quite often they'reoverwhelmed in their in house
estimators.
Can't keep up with the workload.
So either way they come to meand they asked me to help them

(02:17):
out.
And in return I charge a prettynice sum for that.
And in order to be good at thisbusiness, you know, you kind of
have to have a lot of good workethic.
You have to be self motivatedand a good self-starter.
So the way I got started doingthis was many years ago, I
actually had a small heatingcompany.
And when the economy turned badin 2007 2008 I had to start

(02:37):
looking at my other options.
Although the heating businesswas doing okay, I was living
from it, making a living.
We were, we were a small enoughthat we didn't have a huge
overhead and I could've justplucked along trying to make a
few bucks doing that.
But I wanted a little more outof life.
And at the same time, I didn'twant to go into a whole new
career because I've known HVHCmy entire life.

(02:57):
I started in this trade when Iwas very young in my twenties
back in 1996 and I started as anapprentice.
I worked my up way up throughthe ranks, you know, I become a
a a first-class installer andthen I kind of oversaw one of
the small shops I was workingfor until finally I decided I
was going to go out and I wasgonna open my own shop and I did
that.
But when the economy turnedaround and you know, things got

(03:19):
a little bit slow for all of us,I had to sit back and say, what
can I do?
How can I make good money butstill utilize all of my years of
experience in what I know.
I mean, I don't want to work inthe field forever.
I don't think any of ustradesmen who have ever been in
the field say to themselves,yeah, I love this so much that I
want to go through crawl spacesand be up in the hot attics

(03:40):
until I retire.
There are some people that enjoydoing that all the way up to
retirement.
I don't have any problem withthat.
In fact, kudos to you becausethat means the rest of us don't
have to do it.
But as we get older, you know,especially me, I don't know
about everybody else.
Your body starts to slow downjust a little bit.
And this is, I can't do thisforever.
So what I started doing is I dida self evaluation of me, you

(04:02):
know, I look to see at what Iwas qualified to do, what I
enjoy doing and you know, wheremy weakness and where my
strengths were.
And then I started realizingthat, you know, I don't really
want to be in the field.
I kind of want to be in theoffice.
So I thought, well, either aproject manager would be a good
fit or, or maybe a, uh, anestimator.
So I started looking around forpeople who might be hiring for
those positions and I actuallyfound a mechanical outsource

(04:25):
estimating firm and it just sohappened they was looking for a
mechanical, a guy frommechanical background who could
come in and be the manager tomanage this team of estimators
that they already had.
And so it was a small shop whenthe guy started out, he started
by himself and at the time whenI came in, I think we had about
2015 or 20 full time estimatorsand over the three years that I

(04:49):
were there, we had grown up toover 30 full time estimates and
they estimated H vac, electricaland plumbing because they didn't
have anything in place.
They started out small and theygrow really fast.
So they needed somebody tocreate a process for bringing in
new hires to train them.
And then a whole system neededto be created for monitoring the

(05:10):
workflow as every project comesin.
Because when you bet$85 millionworth of projects every month,
things can easily get lost inthe shuffle.
And we kind of had some issueswhere, you know, things weren't
as smooth as they could be.
And so I created all these newsystems and processes so that we
could, you know, monitor thecrew that we had.
And also more importantly thanthe monitoring that crew was

(05:31):
making sure the output of theproduct we was providing was
exactly what our clients neededand that it met their standards.
So that is exactly what I spentthree years doing there.
And over those three years wehad grown that shop in over 30
estimators.
And so and so over those threeyears, you know, we had grown
that shop very well and Idecided, well, I think I've done

(05:53):
all I can do here.
I think I've realized that whatI want to do is I want to be a
full time estimator, but I wantto do it for myself because you
know, everybody has our ownideas and thoughts of how we
think the things should be.
And so when you work forsomebody else, you kind of don't
have that freedom.
You don't have that creativityyou're allowed to implement.
And I seen a lot of things thatI thought we could do better,

(06:15):
but you know, higher managementdidn't see it the way I did.
So I decided it was probablytime for me to move on and I
formed my own company, quicksome LLC and started estimating
four mechanical contractorsnationwide.
And a, from the very beginning Istarted bringing in clients and
I actually started my businesswith one full time client who
had told me, if you ever startyour own business, we will come

(06:37):
to you.
You know, we don't want to workwith somebody else, we only want
to work with you.
So if you ever open your own,let us know and then we can work
and do business together.
And that's what I did.
So pre, you know, is provided areally nice steady income.
I had a weekly paycheck but Istill, I had a weekly income,
um, because they sent me thejobs every weekend.
I produced the work for them andthen they sent me a check every
two weeks in the mail.
It worked really well.

(06:59):
But after about a year of that,not quite a year that I started
to set in, I needed a littlemore.
I wanted to do more.
I wanted to grow.
And so I created a reallyawesome website.
I started some kickass marketingand by the end of my first year,
by the end of my first 12 monthsin business for myself, I had
already generated an an sixfigure income.
And for me that was greatbecause if you come from the

(07:19):
field as a tradesman, even ifyou're in the union, um, you're
not making six figures.
I mean, if you are, it's becauseyou're working a ton of
overtime.
You're not making six figures onstraight pay.
So to be able to work part time,I really didn't put that much
into it and I was making sixfigures from the very beginning.
And that was exciting.
Very exciting.
So, you know, I decided that,uh, after several years of doing

(07:41):
that, I had a lot of guys alongthe way, friends, acquaintances
who said, what do you do for aliving and, and how do you do
this?
Because we've seen where youcome from and where you're
going, but what are you doing?
And so I would teach people, andover the course of teaching some
other people, I decided I reallyenjoy teaching and I know what
I'm doing.
I know exactly how this businessworks.
I've got it nailed down as ascience and I figured it out.

(08:03):
So that's what I'm doing now.
I'm creating online courses,educational things that can
teach people how to become amechanical outsource estimator
who can work for themselves.
And that was why I createdestimating business in a box.
It'll teach you everything youneed to know how to open and run
your own estimating business.
So that's how I got started.

(08:23):
Um, that was my beginning.
That was my roots.
I went from, you know, a very,very, very green apprentice who
absolutely knew nothing aboutsheet metal or HVHC in general,
all the way up to owning my owncompany.
And now I teach people how toestimate mechanical commercial
projects.
So, and I enjoy what I do.
I love what I do.
I couldn't think of doinganything else these days.
And the reason why I want toteach others, people say, well,

(08:45):
if you've got this figured outand you make all this money
doing it, why are you going toteach other people how to do it?
That's competition.
Yeah.
I mean it is probablycompetition I guess, but what
you're going to find in thisbusiness is you don't need a lot
of customers.
Okay?
You need to run a first-classtop rate business.
Treat everyone like gold thatcomes through your door and make

(09:05):
sure you keep them for alifetime customer.
And by doing that and chargingreally good money along the way,
you don't need a lot ofcustomers, you know, unless you
want to grow some sort of agiant empire.
Like the guy I worked for whohad over 30 estimators and
there's nothing wrong with that.
If that's what you want, I canteach you how to get to that
level as well.
But it wasn't for me.
I didn't want that.
You know, I don't need a wholelot of employees.

(09:26):
I can make as much or more moneyfor me if I do things properly
myself my way.
Then by hiring a bunch of otherpeople who could potentially
make mistakes and screw thingsup for me in the end.
Um, so that's why I've decidedto go this route and that's why
I enjoy what I'm doing.
And so you're probablywondering, you know, what are
you gonna gain from all this?
You know, especially through thepodcast because what is your

(09:48):
podcast going to be about?
I don't really want to learn allof that per se.
The point of the podcast is tomotivate you, you know, it's to
bring you some insights intothis world and into this
business that you may not know,but it's also to give you some
educational pieces so that ifyou are interested in doing this
for yourself, I'm going to giveyou the information for free.

(10:09):
Some of it I could sell somewhatof, I do give for free.
If you go check out mycourses@sixfiguretradesman.com
you'll see I've got free courseson there.
A, it's good quality contenttoo.
So go check it out.
Feel free to download that andread that free information
because I have a lot of it outthere and I'm going to bring a
lot of that to the podcast.
If you don't want to go to mysite and you don't want to
download it and go through allof the, the course material,

(10:31):
Hey, just stick with me on thepodcast I'm with a lot of that's
coming up that'll be in thefuture episodes.
I'm going to bring a lot of thatto you free of charge just
because I think there's plentyof room in this business for all
of us.
I think we can all make a goodliving at this.
I don't think we have to step onone another's toes and I just
know there's enough room for usboth.
You know, I've got my clients, Idon't need any new clients by

(10:51):
the way.
Um, actually I do less now thanI used to do before and I still
make great money.
So if you treat this businessproperly and you run it properly
, uh, treat people good.
Treat people right.
You'll find that you don't needa lot of customers.
It's good to have several, youknow, because you don't want all
of your eggs in one basket, butyou don't need hundreds of

(11:11):
people, hundreds of clients.
So you know, keep that in mindas you're going through this.
And if this is something youwant to pursue, you don't have
to go out there and gobble upthe world, man.
You just have to do your job anddo it to the best of your
ability and protect what youget.
So when you get a client provideservice to them that they just
can't get anywhere else.
People say, how can I do that?

(11:32):
Well, I can teach you that.
That's what this is about.
That's what the podcast is for.
I'm going to bring you that kindof information so that hopefully
you know I can help you grow.
Or if you don't have a businessand you want to start one, I can
help you start one.
That's what I'm here for.
So I want to make you verysuccessful because if you become
successful than I am successful.
I have done my job.

(11:52):
So that's what this is going tobe about.
That's what the six figuretradesman is going to be catered
to.
It is all about outsourceestimators, but you know, most
specifically mechanicaloutsource estimators, if you're
any other trade, and let's sayyou are a plumber or a roofer or
a landscaping fire sprinkler, itdoesn't matter what trade you're
in.

(12:12):
This, this position exists forall trades of commercial
construction.
So even though you might hear mereference something in
mechanical, it doesn't mean thatit wouldn't apply to you.
You know, it's just, I speak tomechanical because that's what I
know.
I know how to read themechanical blueprints.
I know how to bid the mechanicalportion.
So that's what I always speakabout.
Like I say, if you're a plumber,I've got you dialed in.

(12:36):
If you're a roofer, you canadapt this.
Okay?
The principles are all the same.
It's all the exact sameconcepts.
So don't feel like you can't dothis because you're from a
different trade.
All right?
And a lot of the stuff, like Isaid, I'm going to bring you
motivational pieces.
So even if you don't learnanything brand new, hopefully
I'm going to remind you ofsomething that you already knew
because you know, my part of myjob isn't just educates you.

(12:59):
It's also to motivate you and tokeep you feeling good about the
path you're on and to remind youthat the choices you're making,
you know, as long as you'remaking the right choices, it's
all going to lead to the endresult that you're looking for.
If you've got the dedication andthe drive, I don't have any
doubt you can get there as longas you implement some ethics and
some good work practices alongthe way.

(13:21):
So that's this episode, episodeone, the very first one of our
our podcasts.
I hope you enjoyed it.
I would love your feedback.
You know, let me know what I cando better.
If you've got any ideas or anysuggestions, please, please send
those to me.
That's six figuretradesmen@gmail.com just shoot
me an email.
Tell me if you hate it, tell meif you love it.

(13:42):
I would like to know what youropinions and thoughts are.
So, you know, before we leaveout of here, I've got one task
that I want you to do by the endof the day.
I want you to do some research,research, outsource estimating
services or mechanicalestimating services.
You're going to see there's alot of, there's not a lot, but
there's a few of these guys outthere.

(14:02):
So get a feel for what this is.
Take a look at what's out thereand the future episodes.
This information that you'regoing to go find.
You know, I kind of want it tobe in your memory and in your,
in your mind, because we'regoing to talk about what you're
finding out there and we'regoing to discuss how we can do
better, how we can, you know,overcome obstacles to, to be
found more than the rest of themand to achieve and obtain a

(14:23):
higher level of success thansome of the other people out
there already have.
So that's what we're going tobring you in next.
Our next episode, episode two,it's going to be how your
estimate and services can standout.
Okay?
All right.
So that's what we're going to betalking about in our next
episode.
I look forward to our nextpodcast and please, like I've
mentioned gimme some feedbackand let me know what you think

(14:43):
because if you're not loving it,I need to make things better.
My name is Jamie Henry, creatorof estimating business in a box,
and I'll see you in our nextepisode.
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