B (3:04)

Yeah, so the pest control residuals, that's kind of like, that's just the norm. So we didn't have to create anything new there. But. But with carpet cleaning, when we started it, it was like, man, like the norm is, is that when you go out and clean your carpets, the stats would say that you wouldn't see that carpet cleaner again for another 24 months. And that's just not okay. And so we created what we called the Coconut Club, which is we come out once a quarter and we give a huge discount. So there has to be value. So with the continuity program of coming out every quarter, every month, whatever it might be, there needs to be a huge value add and there needs to be bonuses. Let's say Your couch is 250 bucks. The average sofa is 250 bucks to get cleaned. If you're a Coconut Club member, you get it for 99 bucks. You get free spot, spot and spill treatment. Right. Which means, hey, if your kid throws up in the middle of the night, which we've all had, are you paying 250 bucks for the, for the guy to come out and clean that thing? No, we. We give you free spot and spill treatment. So that's a huge value add that we sell to the customer. So a discounted pricing and valuable additions that you can sell or bonuses is what makes a great offer, in my opinion. And to my knowledge, we're the only carpet cleaning business that has been able to figure out this model of how to get sticky reoccurring customers to see us not once every 24 months, but once every three months. And, and so what I love about it is that we're able to increase the customer value within the year, but also the stickiness of that customer because now, because they paid a initiation fee, they have this loyalty to you that they're not going to go out and get Stanley Steamer or Zerorez or anyone else because they're committed to you. And you know, Restoration Hardware does a really great job at this. Your wife's probably a Member of Yes. I think it's funny because I just sit back and you and I are probably the same. Like we see everything in the lens of a business. But my wife is like, no, we have to order from Restoration Hardware because I'm a member. I've already paid the initiation fee and I'm just laughing because it's like, you know their prices for non members, cool. Like, but the membership pricing is what they really want to sell it at at the end of the day.

A (5:22)

Yeah.

B (5:22)

And so the people that do pay double, great. But the people that are paying the 50% off, right. Like they're happy at that rate anyways. And then they bought loyalty and so coconuts, no different. So our 50% pricing really is where we need to be from a profitable side from a company and the people that aren't members paying 50% more, whatever the numbers are, 25% more. Like we're happy with that. It's still a great deal. But we're trying to lock in loyalty from the customer base. I think consistency, right. Like the messaging is clear. But what even if it was the craziest brand in the whole world, I think staying consistent. And I learned this because I'm not a, I feel like I've learned a lot about branding but when I started I wasn't a brand guy. What I brought to the table with my partnership with Dusty is my ability to create systems and processes and be able to stay focused and a follow up within that procedure. Right. So I'm much of like an operator. Dusty was the wild brand visionary type of guy and so what I learned from him at an early stage is that everything from top to bottom, so bottom. So even our fonts that we use in our email addresses or if we were going to send out a card to a, to a, to a customer, like it was consistent. Our green, like green was a major color for us. Right. So many companies have a different shade of green on their trucks versus the website versus the uniform. What are the color like, what is the branding guidelines? To me, if you can create this brand guideline and then stay home to it, the customer can't. If you're like me is you understand what looks good, but you can't describe why it looks good. And there's a lot of customers out there that are like us in knowing that. Right. And so when you're consistent with the truck, you're consistent with the website, you're consistent with the leave behind folders and, and the uniforms of the technician comes up, the customer's like, wow. Like, everything just fits. I don't know what it is about it, but it just fits. And so that's what makes a great brand to me. The ones that have five different trucks, five different logos of green, their uniforms, like, it's an off gray. It's. Or it's like, you know, whatever. Like, that's what frustrates me when I. When I look at people's companies and see, like, wow, there's. You have no. You have no brand presence or loyalty within the industry because you're all. You don't even know what it is. So I had to learn this the hard way. I. I was burning through technicians like crazy right off. Like, I was burning through everyone, you know? But I, like, man, my solution was I just need to pay more. Like, people, like, any inefficiency that I have will make up for it, because people only care about money. I was so wrong. I tell the story about being at a Diamondbacks game, sitting in a Dutch Brothers line, right? And because I was losing so many people, I was always in recruiting mode. And I saw this girl working the calendar. And as business owners, you can just tell when people have it, right? And you're like, man, like, this girl stood out to me. Long story short, I pitched this girl to come work for me. My pitch was all about how much money she could make. She politely declined the job offer because she said, I make minimum wage at Dutch Brothers, and I'm here because of the culture. No matter what you offer me, I'm here because, like, I like being here. And so it was just like this light bulb moment. Selfishly, I was thinking to myself, okay, I can have this amazing culture and I don't have to pay all this money. Like, I was paying 4, 5, 6 dollars above the normal rate because I was making up for all my bad habits and bad things that I was doing. Not intentionally, but it wasn't an area of focus, right? So the next day, I literally remodeled our whole office. We got the soda machines, we got the massage chairs, we got the basketball hoops, we brought out the snacks. And it was like, we're going to focus on culture. And that's what we focused on for three years. And finally it was able to turn around and we became this company that was fun to work for. The second part, which is instrumental for me, Jocko talks about how you can only manage up to seven people at once. Anything over that, comms get lost. People's lives, you know, are lost. And so why is it different for employees? Why is it different for companies. So this costs a lot of money. I mean, think about this. You give a manager a BONUS for every seven people, you have 150, 200 people working for you. That's a lot of managers.

A (9:54)

Right.

B (9:54)

The point is, is hiring people and retraining them is a lot more money. And when you start out your company like it's got all the vibes of a small business, like everyone's working together, it's a brotherhood. Why should that have to change just because you become this 150, 200 employee company? It doesn't if you do the. If you obey by the rule of seven. And so I was able to learn that probably eight, nine years in. And when I implemented that, I was able to get back to that the early days feeling of Green Mango and people were a lot more sticky and people were having fun and I wasn't have to overpay for people and, and you know, so that's my leadership style is lead by example, make sure there's not too much on the plate. And that's a, like, you know, there's so many other things. But that's a great starting point for people that are listening to this podcast that are feeling like, man, my people are leaving. My people, I can't manage my people. Like, man, you know, how many hats are you wearing? How many people are you managing? Right.

A (10:56)

Yeah. Who reported into you?

B (11:00)

So my coo. And at the end I actually had Evan who, you know, come over and help me out with Green Mango and he was instrumental in bringing it all together. And that was one of the hardest days of my life. When I sold Green Mango, I got up in front of the entire company and let them know that we'd been acquired. And right before that, when we start our company wide meeting once a month going over all the numbers, we do the anniversaries, we do the Google, like highlight the Googles, the greatest texts. And the energy in that room, the passion, the commitment, the excitement for other team members as we had announced their names, it just brought me to tears because it was like, man, we work so freaking hard to get here because three years ago when someone would, you know, have an anniversary, it'd be like a little golf clap, you know. Now the, the, the room's like roaring.

A (11:53)

Yeah.

B (11:53)

And it's all, and it's like, and it's all those little things that we worked on and it's, it's special when you have it. If you're listening to this podcast and you announce a win from another from Another co worker. And it's kind of just like this polite, like, you know, clap. You're missing out, man. Like something needs to change with what you're doing. Because if you can have that in your organization, everything else transforms and follows. I'm talking about sales, contact rate, close rate, retention of customers, of employees, everything, man. It's just, it's, it's a, it's a special, it's a special thing to watch.

A (12:29)

Those are clearly things to shoot for. What's the short list of things that you won't tolerate?

B (12:37)

Or is it a short list, man? Evan says I've gotten soft and lenient lately, man. I'm huge about being on time, honestly. Like if a meeting starts late, I'm like, it's probably unhealthy. I refer to my things as sacred rhythms. And so with each department, I have a sacred rhythm that that department needs to adhere by. And for me, and I learned a lot of this again from Tommy, is that like, hey, everything needs to be documented. There needs to be a system and process for everything. You have clear expectations. And the main thing needs to be the main thing. There's a lot of companies out there where there's a hundred main things and bonuses are given for like 30 different items. It's like your people are confused, you're confused. You don't even know what the main thing is, right? And so for me, I've kind of gotten soft in the sense of like not worrying too much about what the technician's boots colors are. I let the field manager worry about that and it's still important. But it's like the thing that I care about is seven week rotation. That's what drives everything at Green Mango. And so if, so if we're not on seven week rotation, like that's where I don't. I have a short fuse if we're not doing things right.

A (13:52)

So what is a seven week rotation?

B (13:54)

So for us, what we learned at Green Mango is that if we're on a bi monthly schedule and, and we bill our customers after each visit, if the holidays come, if there's a rain delay, and we go from an eight week rotation, which is every two months, to a nine or ten week rotation, you do the math. On 30,000 customers times, you know, it's the difference of servicing them six times a year versus like four or five times a year.

A (14:21)

Okay, so you're talking around frequency of

B (14:24)

being in the home frequency. And so you do that times your average, you know, per service. I mean, for us it was a difference of 4 million dollar swing, for better or worse. So we went from an averaging nine and a half to ten week rotation on the year to a seven week and it meant in the positive another additional $4 million in revenue. And that was like being able to identify that hey, this is our main thing and of course how we get there, you know, it's an iceberg effect of what it is and everyone needs to fall in line with what we need to do. But like everything was talked about seven week rotation for us. There's a lot of companies out there as I consult that don't understand their, their lifetime value, let alone their annual contract rate and all the, all the contingencies that happen or could go wrong to where they don't, they don't actually collect that, that and that revenue that they have contracted. It's one thing to say, hey, you're going to pay me $2,000 this year, right? And then to actually go build $2,000. A lot of companies don't do it if they're missing it. Yeah.