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Scaling a $300K Moving Company in 60 Minutes

34m 15s

Scaling a $300K Moving Company in 60 Minutes

In this episode of *Scale or Fail*, host Alex interviews NOS, founder of a San Diego moving company. The business generates $300,000 annually with 62% profit, primarily through hourly-rate residential moves. NOS aims to expand to multiple locations and "paint the map pink" with their trucks. Key acquisition channels include Google Maps/SEO and realtor outreach, which yields higher-value jobs ($3,000 per job vs. $1,000 from Google). The main challenge is insufficient leads, despite capacity to double operations. Personal motivations drive NOS's ambition: his wife recently quit her six-figure job to join him, employees rely on stable work, and he wants to fulfill his mother's dream of homeownership. Alex advises breaking free from commoditized hourly pricing by offering flat-rate estimates and creating a VIP service tier with "master movers" (experienced, vetted staff), included materials, and insurance. This premium offering targets realtor referrals, replacing a $250 discount with a more compelling value proposition. Alex also recommends starting sales calls with the VIP offer, using "seeds of doubt" about competitors (e.g., hidden fees, uninsured workers), and adding a same-day surcharge. The strategy aims to differentiate the business, attract higher-paying clients, and scale effectively.

Transcription

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English
My name is Alex Ramose and I've been in business for 15 years and I recently broke the Guinness World Record for the fastest-selling non-fiction book of all time. Making over $16 million in a week in. And this is Scale or Fail. Good morning, Alex. Good morning, man. How are you doing? Good. Great to see you. Good to see you too, man. So tell me about the business. My name is NOS, I'm 29. I'm the founder of FlickstoyleMovie and Delivery. We did about $300,000 over the last 12 months profit being 62%. Our goal is really to expand to multiple locations with $2 to $4 million per location in the next two to three years. We'd love to paint the map pink with our pink trucks. Walk me through the business model. Most of our business come through local residential moves that represents about 90% of the revenue. We charge it based on an hourly rate. It's $165 for two professional movers, plus $150 for the truck and equipment. Are you the cheapest? No, absolutely not. Are the most expensive? Up there. Okay. And how do you get customers? So being the second highest and best-reducing company in San Diego, as you can see, most of the revenue would be from Google Maps and SEO. It's kind of like organic. It costs about $1,000 to $1,200 a month for SEO. The main winner right now that we've been testing would be the RELTER outreach. Tell me about this RELTER thing. So we would reach out to them and they would tell me if you have anybody moving out, we'll give them that little offer of like anybody over $2,000, then we will give them $250 off them. So for the RELTERs, the job is like, they pay so much. For example, this month out of 17 jobs on Google, we made $16,000. And out of six jobs with the RELTERs, we made $15,000. So it's over $3,000 per job with the RELTERs compared to any other channel. Okay. Anything else that's stopping you from scaling? Just not enough leads. We could easily double up the business, but as of right now, just not enough leads. Okay. Why do you even want to grow the business to begin with? Like, you're already making money, right? There's different reasons. Number one is that my wife just quit her six-figure job about five days ago to be on me. I know you heard that a lot, but this one is real. So she created a job. She's been on me. She trusts me on doing this. I'm not going to let her down. Okay. And then two, I've had guys that have been working with me for the last few years. And these guys, all they ask and for is just stable works so they can feed their families. Through it with being my mom, it worked extremely hard for us to be here coming from Morocco. Her only dream in life is to own house. I know it would be the reason to make that, you know, a dream in reality. A lot of the analysis, it's kind of like a little bit personal. People that have been against us. It's not about to show them that they're wrong, but just to prove myself that I could go along with them. To show that you're right. Sure. Not to dig it. Okay. Cool. This seems pretty straightforward. I've got a handful of things that I think we can do. So let me just walk you through how I kind of think this large scale. So I think we'll start with the offer. And then I want to work on the sales process a little. And then we'll talk about this realtor thing. And then we'll go traffic. So if you think about fixing a business, I always fix things from back to front. It's like the thing you sell, how we sell it, who we're going to sell it to, and how we can find out about it. Right. Okay. If we're talking like big picture, basically you will become a commodity if you're using the exact same measured unit. Right. You're like, because they're just asking what's the hourly? I'm guessing a lot of people are going to phone. Yes. What's the price? Yes. Right. And so I think if I were you, I would break that frame and just say, we don't do it by hourly. We just do it by job. And I can give you an estimate because at the end of the day, because someone might wish my back, well, I just need to know with the hourly. It's like, I can't have the guys drag ass and take all day. You'd rather get done quickly rather than take a long time, right? And you want to done well. Well, that's what we'll do. Because that'll get you out of this kind of like, it's 120 here and there were 125. It's just like, it doesn't matter because they could take eight hours and I could take four. Yes. You understand? The only issues with that is that a lot of these people would like to tell you what they have. And you can't really estimate that if you do a flat rate. Think about like this, like in order to scale the business long term, it's like, we want to have something unique that's somewhat different, right? If we can. Now, if we're also selling a commoditized product, which is just share labor right now, plus a truck, there's not a lot of differentiators there besides maybe like pink. I'm trying to think of a way to get you out of the hourly race if possible. Because right now, you're servicing kind of the low run to the market, right? If you're servicing renters and kind of smaller homes. Yes. Because like, I'll tell you, when I moved, I honestly have no idea what I paid, but I'm guessing it's probably in the neighborhood of like 25,000 lures. I have no clue. But the idea was, I'm going to leave my house and then I'm going to show up at the other house. And it's done. That was what happened. Yeah, that's for the rich. Yeah. No, exactly. Yeah. Have you heard my stuff? Yeah, yeah, yeah, yeah. Of course. You know where the money is? Yeah, yeah, exactly. It's self-deterred. Right. And so my point is not like, I'm not saying you all of a sudden overnight become ultra diamond, you know, whatever. Yeah. But if you, what you realized was the realtors, it's not that the realtors are special. It's that they're giving you got a taste of selling to people who have more money. Of course. Right. And so you made way more profit on those deals than you did on the, on the kind of generic. And so that's why I asked about the offer because to me, there should be a white glove offer. To me, that's what's missing. So I thought about that. I did it. It worked. It looked like a couple of times, but then I kind of just turned it off. Okay. Why? Because it wasn't still in well. Okay. Well, that's fine. The offer wasn't good. So I'm not, I'm not thrilled right now. Because it's just like, I'm a little bit more expensive and people get a little bit more value than they would with other people. And it's very hard to claim anything that's different. Besides the trucks being pink and the guys being better. And no hidden fees. Sure. Because material is included like shrink wrap and moving buckets into, all that stuff is included. It's compared to other companies. They would just throw an extra $600 at the end of the bill. And you have to pay for it because you have absolutely no option. But they don't tell you that. And so it's done. But people still see the hourly rate to be in cheaper, some rolls. It's what's going to save the day. No, I know. I know. I know. Don't love it. I'm going to shift gears. Let's talk about this real sort of thing. So why don't we say, let's just for fun for chitzen giggles, right? You can have a VIP moving level. Right. And then you have your standard moving level. I think that the real service would be better served. They probably don't care about the $250. Because if they sold the house, they made way more than that. It's relevant. They want the referral and they want the people to know that it was a great experience. And so I think you probably get way more referrals. If you said, I'll give everybody who you send a VIP service for the price of standard. That will probably mean more to them than getting $250. And then for them, they'll be able to be like, hey, if you go through me, he'll give you the VIP level service at the standard rate. Got it. For me, I think it's a lot more compelling. But what would the VIP be? I don't know. I don't know. Create? Yes. Let's make it up. It's all right. Okay. Okay. Okay. That makes sense. In the cloud. What I mean, you could offer to unpack. And if everybody says no, then that's that. Right. Yeah. It's like, we'll even unpack it. And then people might just opt out. If you know most people do, then it's great. It's almost like a false offer. Okay. Because you know more about the customer than they do, which is the whole point. Or the VIP could be, I can give you like, uh, uh, movers with 10 plus years of moving experience that would take care of this entirely. Only horizontal like that is from a model perspective that'll be more difficult to scale. And I don't know how much that'll matter. So I'll tell you a different version of this, which is like, instead of doing 10 years, it'd be like every mover has over 50 moves. Okay. And so I'll give you an example. So like when I had my trainers at my gyms, anyone can be a trainer, literally anyone can be like you. I blow skilled labor. And then you can have a certified trainer, which they go through creditations versus not. And you can also internally certify. And so what I did was I created three levels of internal certification. I'd be like, you're going to have a level three master trainer. Most people were like, oh, wow, that's awesome. But it's just like they said to do some stuff. And for me, a level three was like they did a thousand sessions or whatever. And so for you, you can be like, give a level three movers. We have different moving movers, different for different skill levels. And so you'll have all level three movers. Because what you were trying to do when you're selling a commodity, you were basically sowing seats of doubt against the competition. So part of what you said was, well, they're charging one 20 an hour, but that's because they're going to nickel and dime you over here. I'm not going to do that. That's basically sowing some seat of doubt saying, I'm actually different. That's what you see where you're doing. You're saying we're not the same. Basically, how many other things can we do there? So we have speed risk and ease. Like so, speeds that you're charging hourly is probably not going to be a thing. Now you could do speed in terms of like we can come tomorrow. But they probably have a moving day that they like are planned out doing. A lot of times you do a last minute moves. And we charge a little bit. Yeah, people call like today for today is like my movers bailed on me. And that's the reason why a lot of people would go with cheaper movers and then I have the same name premium. Not premium would kind of like. No, it's because sometimes we're so desperate for jobs like whatever. I'll just take it. I know. I got it. Okay. Okay. So you have the fee that other people are nickel and dimeing. And then so the other that's kind of seat of doubt. Right. So there's risk, speed and ease. Right. So what we're hitting on with this kind of like master mover, if you will. Actually, so it's kind of nice master mover. Is the risk component, which is listen, believe it or not, my competitors, they can win on price because they're just literally going to take someone off the street. And I say literally, I mean literally. And that you don't know if they have a record. You don't know like what's going on, right? None of my guys are, you know, ex-cons. And on your move for VIP, you get all level three master movers who've done at least 50 moves or 100 moves, whatever make, make whatever you want. Right. So how does that sound in terms of the VIP? It's going to be around risk. So it's like we're going to have this higher tier of mover. And there's no extra thing besides the labor and we're going to include all the materials. If you do full servicements, that's like packing and unpacking. I left that a lot. Okay. So that to me is what you give these guys, the realters, and you already use master movers as this, right? Yeah. So there's really no change between that and standard. It's just that if you have standard, you have the option of using cheaper movers. If all your guys are already equipped master movers, then great. So I'll just go here. But basically, our VIP is going to be pack plus master, you know, master movers plus material. And then standard, I would say it's still pack, but it's just not master movers plus anyone. So that's probably not too big of a cost for you. For me, no. Okay, perfect. Well, then that's about the $250, but this feels significantly more premium than just $250 bucks off, or $250 back to the realtor. Okay. Do you like that better? I love that a lot. Okay. So also when you're getting on the phone, I think you can just basically have these, these tiers, now it's start with the IP. That's how you would sell it. Yeah. To anybody or just. No, I would do it everybody. I always start high. Okay. Because the thing is is when you get on the phone with somebody who has money, they don't care. They just want it done. Yes. I agree. And so you have to give that up, that person the opportunity to buy. Now, as soon as since, no, I'm on a budget, you're like, no worries, then just do standard. Perfect. So most people lose this, but if you're on a budget, we have this. And then if someone still objects, then you basically have to walk down the seeds of doubt. So this feels like it's worth diving into a little bit. The issue that you brought up, you said, Yelp, you didn't like and Google ads, you didn't like. Right. Yeah. Right. So to me, that's not a leads issue. It's a sales process issue. Okay. So we have to make you different in some way compared to everybody else. Okay. So we have our factors. So we have master movers. We have that. We have materials. We have that. Do you have insurance or anything like that? Yeah. Okay. Do you talk about insurance? Yeah. I mean, as an operating moving company, you're supposed to have license and insurance. Great. Great. These are these are these are elements, right? We need like we need components to the offer. All right. Because they again think risk. So this is risk. This is ease. This is risk. What else do we have? We have speed. So I do think that if someone does same day, you can just say we have a same day surcharge of 10%. Okay. Just because I want you to get used to charging it. Because speed is one of the biggest things people pay for. If someone had someone back out and they need somebody to get moved today, that's when you can charge. Yeah. Right. And this might not sound like much, but again, when you hit 20 locations, this will add up because your margins are going to be 70%. It might be at 30 and all of a sudden a 10% lift or 20% lift. I was like, oh shit, and it's all margin. Right. So I'll say a day premium. Start at 10%, but I want you to go to 20% over time. And you can basically keep moving up until they say no. So these are different components. We have R, A, we have B, we have C, we're getting little pieces that we can talk on the phone. Right. Okay. What about a cab? Meaning. It's not going to cost more than this. Let's say they do an estimate. Yeah. How likely is it that they're off by 2x? Not by 2x, no. Okay. But at least a 30%. Okay. So I mean, what do we say 50%? So I'm going to give you a buffer. I'll tell you why I'm saying this. If you get on the phone and say, hey, did the other guys give you a cap? And they'll be like, no. And you're like, oh, well, yeah, that's how they're going to get you. And then they're like, wait, what? And you're like, oh, yeah, I mean, like I can just take 20 hours to move one thing from here to there. There's not much you can do when somebody's on site. And they're like, oh, I didn't even think about that. It's like, right. So we'll be this. And we won't exceed this. Unless there's a huge issue when we arrive on site. But that's basically, like, are either type person is going to be lying about this? No. Okay. Great. Then it's fine. So it will not be more than this. Got it. And then that way, because again, we're trying to sew seeds of data. Like if they have two things, they're both 100-hour, 90-hour, they're going to pick the 90. Of course. So we have to be like, oh, okay, got it. So what insurance do the other guys get? Oh, they didn't mention. Oh, yeah. For sure. If you're uninsured, then yeah, I mean, that's that's a cost, but I'm assuming is nothing you have valuable. You know, like, no, I have some, I think that matter to me. It's like, great. Well, we have insurance that we can include. Do you know what I'm saying with this sale here? Yeah, it's going to come. It's going to come down. Yeah. And we're going to, we had to get this part here so that when we move to sales parts. My brain is going like all over. Yeah. Oh, yeah. Okay. But fundamentally, because this is going to ladder into this. But we have our VIP and we have our standard. We're going to start everyone here. Yeah. And then we're going to, if they say I'm on a budget, we'll say no worries. We can do this for you. Yeah. Okay. You're right. Yeah, it's opening up. I love it. All right. So sales process. So you were able to talk to all the people came in on the on the Google leads, right? Yes. Everybody. Immediately. That's great. The main objection we have is always price. It's always price if they don't know what else to talk about. Customers will always go to price if you don't give them any other variables to consider. Okay. And this is what we're trying to do. Like, that's the point of the offers book. It's like, how do I, how do I break these two things? Of price and value. Yeah. Right? If there's apples and apples, you want apples and oranges. And even though you build the same way, we like, fine, I get that. Can we still make it different enough on all these other things that they're like, fuck, I didn't even think about that. Yeah. So when someone, when someone calls in, what's the first question you asked them? The day of the move. When are they moving just to make sure we have availability. Okay. So you ask for the day and then let's say that you're empty. Now what? Now I do ask how much stuff they look into move. Like what's the size of the move? Just to see how you're, what's the square footage of your stuff? Or what? No, how many rooms we go by the rooms? Like is it a one bedroom, two bedroom? And then the time is, for example, it's a two bedroom. It's like, great. Like what are we looking to move? Yeah. And then it asks stairs or no stairs. So I have an idea like, okay. Like how long the job will take? Yeah. And then where the truck is going to be parked? We still want to walk through these other pieces. Which is, okay, got it. Do you care about the qualifications of the movers that you have? They're like, I never thought about that. And you're like, oh, okay. Because a lot of the guys have like X-cons and people are like very uncomfortable with that. Believe it or not, it's actually 20% of the industry. I put some stats, right? Yeah. It's true. No, no, for sure. Yeah. So it's like, do you care about the, well, I don't want X-cons in my house? And you're like, great. So and you're in your mind, you're like, okay, they want master movers. And you're like, okay, so do you already have all the materials? To get all this stuff packed up and all that? Oh, no, you don't. Okay. Package. Got it. Right? And you're like, okay. And you're like, got it. So do you have anything that's valued over $500? I've seen this. And they say it. Okay. Insurance. You're just listening, right? Yeah. Now this isn't today. So if it was today, then we'd include the date premium. If it's not, then we're like, okay, got it. So this is what we can do. We're 165 an hour. And if you go with us today, I'll include the master movers on include materials and I'll include the insurance. If they do for, if they do for service, like packing, offering. So that is the offer you were talking about earlier. Yeah. Okay. And if they're like, oh, I can't do that. Then it's like, okay, we can still do it. But we're going to be at standard. What's your, I know if this is going to be the new VIP, make this one, 95, make this one 65, whatever. Okay. Okay. So this is VIP and this is standard. Right? You like that? Yeah. I love it. That's fantastic. It's awesome. Because that way, that way, again, we're already having a conversation with more detail. I just want to give you bullets so that, again, we want to get on the phones because how many, how many are you losing to price? Oh, a lot. Like 40%. Yeah. Okay. So this is important. Right. So we want to make sure that they don't think that they're getting the same thing for less. We want them to know they're getting way less for less. So the way we've been selling is that if they kind of hit us with the price issue and like, hey, if you find anybody in this industry in San Diego right now that would match our reviews, we'll be their price. Because they don't exist. No, of course. Yeah, but they're like, yeah, but whatever. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. If you can find somebody else that does insurance has, has level three movers, I includes materials, you know, and has a cap by all means, I'll price match it. But like, I've never been in the price matching game my whole life. I'd rather just be in the values of passing game, which is if these things matter to you, we're the only shop in town that does it. If you don't care about having X-cons in your house, and again, I have no beef with X-cons, but people have perceptions, right? If you have no issues with X-cons and you plan on doing the packing yourself and you're okay with them potentially breaking it because they're not, they're not ensuring anything, which honestly, it happens in 25% of moves. And if you're the three out of four, it's great. If you're the one out of four, it's pretty tough. Yeah. Right? Yeah. And if you have no cap and you don't care, because I can come in at $10 now or if you want, and I'll just take a week. Again, it's fair. We have to explain the whole system. Yeah. And so what this is called is I call shifting from local to global. Right? So like, you're thinking about this. I am. I'm thinking about this, not me, but the consumer, right? And so all of a sudden, you give them way more variables than they thought about because you know more about what they do. And that's the point of a good sales process. And so they're like, I didn't even think about these things. And it's like, right, that's okay. That's what education is for. I'm educating you right now, right? Yeah. And so this is what it sounds like you really want. And that's what I can deliver for you. Because the end of the day, if you get everything on time, nothing breaks. You have great experience. I was like, is that worth the extra 50 bucks? Oh my god. Yes. Right. It's like, oh good. Good. So this is what I want you to walk through. It's like, this will get you the deals you're losing. You're losing a price because they have nothing else to say. They're doing Apple's to Apple's. You're like, no, it's Apple's in oranges. But it's totally fair that they're charging less because they're not doing all this stuff, which by all means, if you want us to not do that stuff, I can't because I have to have a level service, you see our reviews. I'm not willing to, I'm not willing to sacrifice my reputation for that. Some people are though because they're in and out of the industry. Yeah. They come in. They just start moving, you know, for short periods of time, then they get out. Yeah. I'm here for the longer run. Right. Yeah. Now that we have a better idea of what our offers are, what we need to say is, I would include, we'll give them a free VIP upgrade or free white glove if you want to choose that term for anyone who you refer just so they like think good things about you. Okay. They need to gain from referring you. Their customer has to see them better because they have the hook up. Right. People go to realtors because they're supposed to know the area better and they've done this more times than they have. Right. If you knew everything, you wouldn't need a realtor because you already know the house is your new, new deal. Yeah. Right. So saying, oh, my, my guide, I've got an amazing, amazing, amazing, amazing, amazing, moving company, they give all my customers free upgrades. That makes them look great, right? - Got it, okay. I love the offer. So we did try SMS, we also tried emails. E-mails did not get us absolutely zero conversion. - Did they wrong info? That makes sense. - Yeah, so SMS is what would give us some traction. And then what we've been trying lately is that we would just go follow them on Instagram. - I think following in DMing would probably have a higher conversion than anything else. - So what we tried is that SMS, if absolutely any response in a positive way, even like like in the text, I would find that person on Instagram, like go look them up and then follow them, like hey, I saw you like the message, we'll have to tell you more about what we could have going on. - I mean, I think start there, but I would take that list, feed it into AI and have an agent search online, find the Instagram and then follow them from my account. - Okay. - And so every day I would DM 10 or 20 of them because you can't, you know, DM so many. Now if they follow you back, then you can do it as many times as you want, right? So we could do, there's two considerations. So one is we could say follow everyone and then anyone who follows you back, then you DM, that's one option. Or you just automatically DM 10 or 20 cold, independent of whether they follow back. - Okay, so you would actually do massive outreach instead of just like picking up the top 100 producers in San Diego? - I mean, we should do that. - We should start there. - Yeah. - Okay, my wife could actually actually take care of this realtor. - So you're gonna do your SMS, this is what you're currently doing. I don't think you necessarily change any of that, that's fine. The second is the follow 2DM. And I would say like do you know anyone? We have our realtor special, which is VIP upgrade. - I like that word upgrade. - Yeah, or white glove, whatever you wanna do. - Yeah. - And so that would be my auto DM back. Now the third thing that I would do, because this is like, a lot of the realtor offices, the brokerages, right? I have five, 10, 20 agents, right? I would wanna go to the head of the brokerage and say, "Hey, I'll do a brokerage level deal for you." We'll give everyone who's an agent of yours VIP. Like for free, if we can just be the first people, first people you call when you have them move. And ideally, it's like, can you integrate us into your packet? Because that's the thing, they give people packets. - It's a lot of work. - Exactly. So it's like, I wanna be the only one in the list and I'll give all of your customers VIP upgrade. You can look at our reviews, really good. That's where, 'cause you want integration. Because as soon as you get integrated in their sales process and as long as you could do a good job, they're not gonna look anywhere else. - Yeah. I have two that I can let it call up to the end, set up an appointment for this upcoming tomorrow. - Yeah, 'cause one brokerage might sell-- - 20 agents. - Right, well, yeah, 20 agents. Then each agent might sell, let's say, a house, a quarter on average, I'm just making it up, right? So it's like, every brokerages five houses a month. - Okay, the $15,000. - Right. - When an average is three. - Her. - Her, right? And so it's like, okay, well, how many brokerages are there? Plenty. - A lot. And so I'd rather you sell one to sell 60 a year. Like that's what's worth your time. Like, let Jacob take the individual calls. - Yeah. - But you should be going out and getting the brokerage who's gonna get you 60 houses a year each. And then like every week you bring another brokerage on. And that means like every week you're bringing another five deals a month on. It stacks. - Right. - And then what's gonna, the next bottleneck is gonna be, you're not gonna be able to manage the relationships. It's not there yet, but that's what's going to happen. And so you're gonna need to hire one person to full-time manage the realtorch. - A follower per. - Exactly. It's just a farmer. - My wife is gonna be doing that for now. - Great. So I think we target brokerages. Because this is the long-term plight. Like it's good to have the reviews you do and that's gonna continue to compound and all that stuff. But where I'd like you to get is in the future at some point you just start turning deals down that are too small. - Like one bedroom's in some deliveries. - Yeah, you're like, it's just not. - We're out there. - Yeah. - I'd like you to get there. Because there will be a day where you don't do deals under three K or under five K. - Yeah. - I know, I like trust me. I have to believe that these things. - They do exist, I promise you. Okay, so we have our offer, we have our VIP understanders. Now it's the key thing to differentiate us. We itemize all the elements inside of the sales process. So again, we can further differentiate from the hourly. If we're gonna stick with hourly and we still have to have as many different colors as we can here, all right? - Okay. - Then, and also I'm very flexible in this. This might be able to be 225. Like continue to keep pushing this VIP and it'll have a lot until people stay. Say no. Because you always have your backup. You can always fold it out in a standard. - Yeah. - But the people who have money will just, they'll spend more. It's just, it's a different monster. Realtors, we keep doing this, but I think these two will give you more leverage. This one is the biggest one. - Okay. - Can I ask one question? - You wanna show up in person here. And so, here's how I do it. This is the process. Once you get any realtor thing, you need to show up in person to their office to meet all the other realtors in their brokerage. Come, come with donuts, come with whatever. Meet the head guy. And say like, I set up Kelly, was that a good experience, Kelly? Great. I can give every single one of your agents VIP upgrades for all of our moves for free. That's on me just 'cause she was so great to work with. And it gives you something that you can kind of have as a nice experience. - Yeah. - Okay. - What was the question? - The question is about the SMS, 'cause now I have a list of about 12,000 agents. What do you think the first SMS should be like? Is it, should it keep you the same way that we live in? - It's just, you're gonna have a test event. You're gonna see what the response right now. How would you send the same thing to all of them? - The smart cookie move would be, look up the agent, AI can do all of this. - Yeah, yeah. - All of this AI can do this. - Yeah. - So hook up AI to the list, create an excel sheet that has personalized information. - Okay. - And then have a template for it to then output what you think or what it thinks that personalized first tech should be. And it'll give you the whole list of all hundred. You read them, we'll cook to make sure that they sound like they make sense. And click go. 'Cause then they could all be personalized. That's what I would test against just the generic over there. - Got it. - And if you wanna be wild, you could probably, are you doing it from, you're doing it from a true SMS, right? - No, I was using a milk chip. - Does it have like an iPhone, like a blue thing? - Not in the blue bubble, no. - Okay. - Would you recommend the blue bubble? - I would give it a shot. So I would say four blue bubble. And I would say just test it 'cause it's gonna be more, but if you have a higher response rate, then it's worth it. With an area code that's local. - Yeah, and then five for this SMS here, oh, I got this button right here, is AI personalization for that first message. It'll also make it less likely that you get put into spam. - Perfect. - Because if the carriers see you spend that same thing to a hundred people, they spam the number. - Yeah. - So traffic, so there's a couple smaller things that I think are worth doing. So right now, how are you getting the reviews? What's the review process? - So as soon as we finish the move, the guys just ask for a review immediately. So the kid made a huge favorite text, 30 seconds, helps us tremendously. - So what's the script for the guys to ask? - If you guys think we do the great job, then would you mind leaving us a five-star review? Would highly appreciate it, 30 seconds. - So I would just add one little piece in, which is there's probably a leader on each website, right? - Yeah. - So the foreman goes over and says, "Hey, was this a good experience?" "Yes, okay, well, the guys get a little spiff from ownership for five-star reviews." So if it means anything to you and me, the ton to those guys. And then you can just take who got the most reviews at the end of the month that give 100 bucks, it doesn't matter. But like, the likelihood that they'll just leave review six out of 10, if it's like, these guys, it actually makes a difference for them, the likelihood that they'll leave its way higher. And it's better when it's not you, 'cause you can't be like ownership, I mean, you can. But like, yeah, this is-- - Yeah, that's true, yeah. - But it's easier for the foreman to just be like, the owner gives an extra spiff to the guys if they get a five-star. - Okay. - So one is foreman review, foreman owner, I'll say spiff. How about that? - Perfect. - And then two, do you do any social media? - Daily. - Okay, so I'll bet you you're losing to people who have better socials than you are, because obviously search is one thing, but the next thing you look at is, well, let me see if I can find these people on social, and that'll make a big swing. And so, can you maybe have the foreman do like a before and after? - Like house full and house empty. - Yeah, and then also empty to full. So basically it's before, it's before after at site one, before after at site two, clipped into one. - Okay. - 'Cause you can just post those just before and after, and if you get the review, put the five-star review at the end. - Got it, okay. - So it's like you're posting a foreman after review, foreman after review, foreman after review. - Got it, okay. - So the organ, it gets before, right, after at site one, and then again, before after at site two, and then review. So it literally shows the full, right, end to end. Like this is what it was, this is what we did, this is what it went, this is what happened, and they said it was awesome. - Over and over and over again. - Okay. - Yeah, as in if you can, I would get the realtor reviews, 'cause that's gonna matter more again for, and when I say reviews in, we really test the modules. - Like on a video. - Yeah. - Okay, yeah, I can definitely do that. - Yeah. - And also, because the thing is, is the bigger, the bigger your organic following gets, right, when you go to that brokerage, and you say, hey, we're good movers, we've been in the area for a while, we just made a partnership with X, Y, Z, Realty. If you're looking to sell house, check it out, like they love that, it's free promotion for them, and you just throw it in if they do the deal with you. - Beautiful. - Now when you have 100,000 followers that are local, makes a bigger difference than when you have one. - So, 'cause big picture, if we need the business to grow, right, one is we're having a more premium offer, so for the people who want to spend money, we allow them to do it, right? And we're including things that other people are not mentioned, which are these elements, which then when we get into the sales process, we ask them questions, but then we ask their preferences, which they didn't think about, to differentiate our price versus everyone else's. And then we can step down from VIP to, oh, you don't actually care about this preferences. Oh, you're more on a budget needle care about that stuff. Fine. I promise you're not going to find these things at a different price. >> Right. >> Then with our realtors, we're adding in the personalization for the AI. This is going to be more lead gen. This is going to be big especially when it's paired with these, right? Brokerj is what I think you should do. This is the highest leverage thing that you can do, is you go and get 20 agents at a time. As soon as you get one realtor who responds back, I would go in person. >> Don't know. >> Because then it's like you don't just get them, because they're already a unit that can send you business every month, but they have five other people or 20 other people in their brokerage. That would be what I would go. This is my big 20X lever. This is just to enhance that. This is the smallest piece of this. I wouldn't even obsess about it, but these are the bigger ones. >> Got it. >> So we can just boost the guys reviews, just run the spiff flight. And then from a long-term perspective, we can build up our organic by doing before and afters, at every single site with a review at the end. I think we do all this stuff. This is going to be your biggest one. That's the biggest left for you. This is probably going to be like these guys are going to be your second biggest left. And then this whole sales process that I outlined here is going to help you win those other 40% of deals, long-term that will compound to. >> Thank you, sir. >> Appreciate you. >> Yeah, you're out. All right, let's see here. So if we're looking at where you're out in the scaling room, we're a map. You're between three and four, mostly on the four site because you got six employees. You're acting as a manager, right? It's your first full team. And so from a product perspective, you were saying yes to everyone who would pay. >> Yes. >> Like, I mean, this way, you know. >> Right. No, you're good. This is the transition. You were getting feedback from customers. So you were like, "Oh, do I do the cheap thing or do the expensive thing? I've got these very different." So to graduate, we have to specialize the product, which creates our V2, which is the VIP. And we priced a serve that richer customer. Score. And just for the magic of the audience here, it's not like I had this and I wrote this after we talked. >> No, if I'm here, when I did the whole thing online, they put me here, yeah, yeah. >> But now you're here, right? From marketing perspective, we're talking too many on-qualified leads, which is what we're dealing with. And so we have to make more content, which is what we're doing on the before and after side. Right? And we're adding more qualifications and friction, right? Which goes into these elements of what we can do to kind of differentiate what we're selling. Which, from a sales process, speed to contact. Now, you haven't had it drop yet, because you still need to get more lead volume in, right? And so we have to start tracking a little bit more on this side. >> Yeah, yeah. >> Then you probably are. Now, from a customer's success perspective, you've been doing fine. But as we scale, quality is going to be the thing that's going to drop. And so to move from here to here, we're going to have to have a quality assurance loop that's going to happen. That's not a problem yet. It's going to be. >> Okay. >> Thank you so much. >> Appreciate it. >> Thank you. >> Thanks, great. Thank you. >> So two things. One, I referenced the scaling room app. Wherever you're at, you should check out where you're on there. Like it's pretty spot on. And it's because businesses are not as unique as we think they are. Patterns exist across all of them. So that things for you can go grab it. But inside my offers book, I think the first chapter is that you're selling commodity. The commodity problem. And if a customer can look at two things and say, these are the same, they will always take the cheaper item. And so our goal is business owners, unless your entire strategy is to be the cheapest, which is you want to compete in the commodities game. And you built your whole business to be cheaper than everyone else. Unless that's your goal, which it rarely is. And it probably shouldn't be for service. Then you want to be on the other side of the spectrum, which is you want to be the value leader. And value leaders think about all the different components that a customer and all the problems that you could potentially solve for a customer. Break them down kind of like I just did. And say, okay, these are all the elements that a customer is not thinking about. But once I present them, they realize that these are actually two very different things, which then allows us to price for the right customer at a much more premium price. Thanks for watching. And we'll see you in the next Geller fail.

Podcast Summary

Key Points:

  1. Alex is a successful entrepreneur who broke a Guinness World Record for fastest-selling non-fiction book.
  2. The guest, NOS, runs a moving company (FlickstoyleMovie and Delivery) with $300,000 revenue and 62% profit, aiming to scale to multiple locations.
  3. The business relies on hourly rates ($165/hour for two movers plus $150 for truck), with 90% of revenue from local residential moves.
  4. Main customer acquisition channels are Google Maps/SEO and realtor outreach (RELTER), which yields higher average job revenue ($3,000 vs. $1,000 from Google).
  5. The main barrier to scaling is insufficient leads, despite potential for doubling business.
  6. Personal motivations for growth include supporting his wife (who quit her job), employees, and fulfilling his mother's dream of owning a house.
  7. The advisor suggests shifting from hourly to flat-rate pricing to avoid commoditization and create a VIP service tier for high-value customers.
  8. Proposed VIP offering includes "master movers" (with 50+ moves experience), included materials, and insurance, aimed at realtor referrals and premium clients.
  9. Sales process improvements include starting with the VIP offer, sowing doubt about competitors (e.g., hidden fees, uninsured movers), and adding a same-day surcharge.

Summary:

In this episode of *Scale or Fail*, host Alex interviews NOS, founder of a San Diego moving company. The business generates $300,000 annually with 62% profit, primarily through hourly-rate residential moves. NOS aims to expand to multiple locations and "paint the map pink" with their trucks.

Key acquisition channels include Google Maps/SEO and realtor outreach, which yields higher-value jobs ($3,000 per job vs. $1,000 from Google). The main challenge is insufficient leads, despite capacity to double operations.

Personal motivations drive NOS's ambition: his wife recently quit her six-figure job to join him, employees rely on stable work, and he wants to fulfill his mother's dream of homeownership. Alex advises breaking free from commoditized hourly pricing by offering flat-rate estimates and creating a VIP service tier with "master movers" (experienced, vetted staff), included materials, and insurance. This premium offering targets realtor referrals, replacing a $250 discount with a more compelling value proposition.

, hidden fees, uninsured workers), and adding a same-day surcharge. The strategy aims to differentiate the business, attract higher-paying clients, and scale effectively.

FAQs

The business focuses on local residential moves, which make up about 90% of revenue. They charge an hourly rate of $165 for two professional movers plus $150 for the truck and equipment.

Most revenue comes from organic sources like Google Maps and SEO, costing about $1,000 to $1,200 per month. They also test realtor outreach, which generates higher revenue per job.

The company contacts realtors to offer a $250 discount to clients moving over $2,000. This channel yields about $3,000 per job, significantly higher than other channels like Google.

The main barrier is a lack of sufficient leads. The owner believes they could easily double the business if they had more leads.

Personal motivations include supporting his wife who quit her job to join him, providing stable work for his team, fulfilling his mother's dream of owning a house, and proving himself to doubters.

The advisor suggests offering a VIP moving service with master movers (who have completed 50+ moves), included materials, and insurance, starting with this high-tier offer to all customers and offering a standard option for those on a budget.

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