Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast
Episode #159: Turning Data into Dollars: How to Use AI in The Trades with Sebastian Jimenez
Release Date: January 7, 2025

Introduction

In Episode #159 of the "Owned and Operated" podcast, hosts John Wilson and Jack Carr welcome Sebastian Jimenez, the founder of Rilla, a pioneering AI-driven virtual ride-along software tailored for the home improvement industry. The episode delves deep into how AI is transforming trades like plumbing, electrical, and HVAC by leveraging data to enhance sales, coaching, and overall business growth.

Guest Introduction: Sebastian Jimenez and Rilla

[00:00 - 02:51]
Sebastian Jimenez kicks off the conversation by highlighting the early adoption of AI technology among home improvement contractors. He introduces Rilla as a tool that provides significant ROI from day one, especially for businesses engaged in physical ride-alongs.

Notable Quote:
"If you're doing physical ride alongs, that's when Rilla is going to provide significant ROI from day one." — Sebastian [00:00]

Sebastian shares his unique background, emphasizing that although his trade isn't in software (he's a former stand-up comedian), his passion for trial and error in comedy translated seamlessly into building tech products. Rilla emerged from his first venture into field marketing management software, targeting companies like Red Bull and Heineken.

Rilla's Growth and Unique Position

[02:51 - 10:12]
Sebastian outlines Rilla's journey from its inception in January 2022 to becoming one of the fastest-growing startups in its sector. With over 1,500 contractors onboarded in just over two years, Rilla has attracted top private equity customers and amassed millions of recorded conversations.

Notable Quote:
"We're growing faster than Salesforce, we're growing faster than Apple, we're growing faster than Figma, than some of the fastest growing startups ever." — Sebastian [08:24]

Despite having a modest team of 50, Rilla has achieved remarkable sales milestones, indicating the immense demand and effectiveness of their AI-driven solutions in the trades.

Implementation Best Practices: Client Case Study

[10:24 - 17:21]
Sebastian discusses exemplary implementations of Rilla, particularly focusing on LB Capital, a large roofing company. He emphasizes the importance of securing buy-in from technicians and salespeople, citing strategies like pitching Rilla as a protective tool against false claims.

Notable Quote:
"The top performers are actually the most resistant to the change. They do not want to be recorded. They are the top performers." — Sebastian [11:02]

He shares a compelling story where a top-performing technician resisted using Rilla but was ultimately convinced by company leadership to adopt the tool, illustrating the necessity of firm implementation for maximum impact.

Data-Driven Insights: Moneyball for Sales

[20:40 - 35:42]
Rilla's extensive data collection, with over 10 billion conversations analyzed, allows for groundbreaking insights akin to the "Moneyball" approach in sports. Sebastian reveals that top 1% performers talk less (45-65% of the time) compared to the average salesperson (75-85%).

Notable Quote:
"The top performers ask five times more open-ended questions than the average salespeople." — Sebastian [20:59]

He introduces the concept of "Rilla Labs," where these data-driven insights are published to help contractors emulate top performers. Additionally, Sebastian touches on the ideal talk speed of 184 words per minute, suggesting that slight increases in speaking pace can lead to higher close rates and average tickets.

AI's Impact on the Home Improvement Industry

[35:42 - 45:26]
Sebastian elaborates on the transformative effect of AI in the trades, spurred by the surge in home improvement demand post-COVID-19. He highlights the influx of sophisticated capital and the emergence of numerous startups focused on AI solutions for various aspects of home services, from marketing and dispatching to claims approval.

Notable Quote:
"Home improvement contractors are the early adopters of AI technology." — Sebastian [36:03]

He draws parallels between the current AI revolution in trades and the early days of the internet, suggesting that this period could be foundational for future industry leaders.

Market Trends and Future Outlook

[45:26 - 46:55]
The conversation shifts to the broader market trends, with Sebastian noting the vast and disparate market of home service contractors. He anticipates continued exponential growth in AI adoption, comparing the potential of AI-driven companies in trades to giants like Salesforce and Amazon in their early stages.

Notable Quote:
"You have to stay active. You have to keep your ears close to the ground. You have to start playing around, just, just like play around with the new technologies." — Sebastian [46:04]

Sebastian underscores the importance of innovation and technological integration for contractors to remain competitive and thrive in this rapidly evolving landscape.

Conclusion and Final Thoughts

[46:55 - End]
As the episode wraps up, Sebastian encourages listeners to explore Rilla further by visiting their website and booking a demo. He emphasizes the importance of embracing technology to not only improve operations but also to position businesses at the forefront of industry advancements.

Notable Quote:
"Today you guys are running technology companies that sell home improvement." — Sebastian [45:26]

The hosts express their appreciation for Sebastian's insights, highlighting the valuable lessons on integrating AI into the trades to drive business growth and efficiency.

Key Takeaways

• Early AI Adoption: Home improvement contractors are leading the way in AI integration, leveraging tools like Rilla to enhance sales and coaching.

• Data-Driven Excellence: Utilizing vast amounts of conversation data, Rilla enables contractors to adopt top-performing sales techniques, significantly improving close rates and average sales.

• Rapid Growth Potential: AI solutions in trades are experiencing unprecedented growth, rivaling that of established tech giants during their early years.

• Future-Ready Industry: The convergence of AI and home services is creating a dynamic, innovative environment, offering immense opportunities for contractors willing to embrace technology.

For more information about Rilla and to book a demo, visit www.rilla.com.