Owned and Operated - Episode #160: How This One Sales Tactic Unlocked $10 Million in Potential

Release Date: January 14, 2025
Hosts: John Wilson and Jack Carr

Introduction

In Episode #160 of the Owned and Operated podcast, hosts John Wilson and Jack Carr delve into transformative sales tactics that have significantly propelled their plumbing, electrical, and HVAC business to new heights. This episode focuses on strategic changes implemented over the past year, highlighting how a single sales tactic contributed to unlocking $10 million in potential revenue. The conversation is rich with actionable insights, real-world experiences, and motivational success stories aimed at helping other home service business owners achieve similar growth.

Key Discussion Points

1. Call Center Overhaul
2. Inside Sales Team Development
3. Weekend Operations Implementation
4. Vendor Negotiations Strategy
5. Enhancements in Data Management
6. Future Growth Plans

1. Call Center Overhaul

Transformation of Compensation Structure

John Wilson emphasizes the critical role of the call center in driving business growth. Initially struggling with ineffective call takers, John and his team realized the need for change after a pivotal conversation with Tommy Melo on the show. This led to a structural overhaul of the call center's compensation model.

John at [05:15]: "Our job is to give you the least amount of choice in whether or not you're going to be effective in your position."

By shifting from a full salary or hourly wage to a commission-based model, they aligned the call center team's incentives with the company's goals. This change not only improved performance but also led to a significant reduction in low performers, allowing high performers to thrive.

Impact and Results

The new compensation structure resulted in the call center team booking more calls efficiently, with members like Jocelyn reporting doing "150 outbounds" in a single day.

John at [09:44]: "They are making more than they've ever made. They're very excited about it."

This strategic shift contributed substantially to the company's impressive year-over-year growth of 46%, with expectations to reach the low 30s budget-wise in the following year.

2. Inside Sales Team Development

Establishment and Growth

John discusses the creation of an inside sales department, which was launched in November. This team focused exclusively on outbound sales, contrasting with the previous mixed roles where salespeople were also handling other responsibilities.

John at [15:09]: "Inside sales was a giant change. What we've done there is we've adjusted... It was a big win."

Revenue Generation

The inside sales team has already driven approximately $4 million in revenue within a year, with projections aiming for $10 million next year. This growth is attributed to the focused efforts and refined compensation structures that incentivize performance.

John at [15:17]: "We're going to make a lot of things happen. So we're excited about that."

3. Weekend Operations Implementation

Capturing Captive Demand

Recognizing untapped potential, John and his team implemented weekend operations to service leads that previously couldn't be addressed until Monday. This move unlocked an additional $2.5 million to $3 million in revenue since January.

John at [32:16]: "Weekend added millions to our top line, like literally millions of dollars."

Flexible Scheduling Models

To accommodate weekend shifts, various scheduling models such as "4 tens" (four 10-hour days) and "3:12" (three days on, twelve days off) were explored, making weekend shifts more attractive to employees.

Jack at [33:45]: "There's people who would love to bust for three days, just work hard... that's huge."

4. Vendor Negotiations Strategy

Aggressive Cost Reduction

John highlights the importance of renegotiating vendor contracts to reduce costs significantly. By methodically approaching one vendor per month, the team managed to save approximately $100,000 monthly in overheads.

John at [35:54]: "We've saved a few million dollars. Every month we come up with a hit list."

Examples of Savings

• VOIP Services: Reduced costs from $20,000 to $6,000 monthly.
• Cellular Services: Dropped from $100,000 annually to $27,000.

John at [36:07]: "3,000 a month is huge to anybody."

These savings not only lowered operational costs but also enhanced the company's profitability, reinforcing the effectiveness of disciplined vendor negotiations.

5. Enhancements in Data Management

Daily Gross Margin Reporting

Improving data accuracy and financial tracking was a significant focus. By tightening accounting practices, John’s team implemented daily gross margin and revenue reporting, allowing for real-time financial insights.

John at [28:42]: "Our gross margin is consistently rising month over month... because everyone's looking at gross margin every single day."

Impact on Decision-Making

This granular data tracking enabled the company to maintain budgeted gross margins even during low-demand periods, ensuring sustained financial health.

John at [30:30]: "Our daily net margin is a little bit more robust... we've been able to."

6. Future Growth Plans

Scaling for Expansion

With foundational elements like a robust call center, inside sales team, and efficient data management in place, John anticipates scaling the business to $34 million in the upcoming year. Plans include geographic expansion and further process optimization.

John at [40:32]: "Next year is still like a very block and tackle year for us... in 2026, that's when we believe expansion begins to really happen."

Continuous Improvement

John and Jack stress the importance of continually refining processes to maintain and accelerate growth, ensuring the business remains adaptable and resilient.

Notable Quotes

• John Wilson [05:15]: "Our job is to give you the least amount of choice in whether or not you're going to be effective in your position."

• John Wilson [09:44]: "They are making more than they've ever made. They're very excited about it."

• John Wilson [15:09]: "Inside sales was a giant change. What we've done there is we've adjusted... It was a big win."

• John Wilson [32:16]: "Weekend added millions to our top line, like literally millions of dollars."

• John Wilson [35:54]: "We've saved a few million dollars. Every month we come up with a hit list."

• John Wilson [28:42]: "Our gross margin is consistently rising month over month... because everyone's looking at gross margin every single day."

Conclusion

Episode #160 of Owned and Operated offers invaluable insights into strategic sales tactics and operational overhauls that can lead to substantial business growth. John Wilson and Jack Carr share their journey of transforming their sales processes, optimizing call center operations, implementing weekend services, and renegotiating vendor contracts. These changes collectively unlocked $10 million in potential revenue, demonstrating the power of aligned incentives, disciplined cost management, and data-driven decision-making. For home service business owners aiming to scale their operations, this episode serves as a comprehensive guide filled with practical strategies and inspirational success stories.

For more episodes and resources, visit www.ownedandoperated.com.