Owned and Operated - Episode #199: "The $174M Remodel Company No One Saw Coming"

Release Date: May 20, 2025

Podcast Information:

• Title: Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast
• Hosts: John Wilson and Jack Carr
• Description: Hosted by home service business owners John Wilson and Jack Carr, this podcast delivers weekly insights and actionable advice on advertising, lead generation, and scaling home service businesses. Each episode explores strategies for growth, talent recruitment, and mastering marketing in an evolving industry.

Introduction to Premier Home Pros

John Wilson (Host):
Welcomes guests AJ and Noah from Premier Home Pros, highlighting their rapid rise from a startup to a $174 million remodel company. [02:15]

AJ and Noah:
Express gratitude for being featured and share their enthusiasm for discussing their business journey.

Genesis of Premier Home Pros

AJ:

• Originated their friendship in 2018 while working at LeafFilter.
• Transitioned from corporate roles to entrepreneurship in 2022.
• Decided to focus on bathroom remodeling due to market saturation in roofing and window sectors.
• Began operations from a dining room table with the initial goal of creating a scalable bathroom remodeling business. [02:15 - 04:30]

Noah:

• Joined AJ in the new venture, bringing in sales expertise and a shared entrepreneurial spirit.

Early Success and Scaling Strategies

AJ:

• Launched their first lead generation campaign in December 2022, achieving remarkable initial success.
• Quote: "We demoed at 91%. We closed at 82%. For $557,000 our first month’s average." [00:00 - 05:12]
• Expanded rapidly, establishing offices in Cleveland, Northeast Ohio, Pittsburgh, and Philadelphia.
• Achieved $15 million in gross sales in the first year across three offices. [05:19]

Noah:

• Emphasized the importance of understanding conversion metrics to drive growth.
• Believes in building a repeatable and scalable sales and marketing system.

Strategic Product and Process Refinement

John Wilson:

• Inquires about the high demo and close rates, noting Premier Home Pros' exceptional performance. [05:22 - 05:40]

AJ:

• Attributes success to an elite mindset and a dedicated team transitioning from corporate roles.
• Focused on high-quality installations and streamlined processes to maintain high conversion rates. [05:40 - 08:15]

Noah:

• Discusses their transition from acrylic products to engineered stone, increasing the average order value from ~$11,700 to over $18,000. [15:37 - 16:13]
• Simplified their SKU count to enhance scalability and operational efficiency.
• Quote: "We try to keep our SKUs as tight as reasonably possible while still keeping our customers happy." [14:33 - 15:14]

Building a Robust Operational Framework

AJ:

• Describes the organizational structure, including sales managers, project managers, service managers, and a dedicated sales team. [09:17 - 09:44]

Noah:

• Highlights the importance of training and maintaining a skilled installation team.
• Quote: "We have a field trainer that takes these installers out for the first week and they shadow." [24:37]

Financial Strategies and Profitability

Noah:

• Emphasizes operating without debt, maintaining cash flow positivity, and achieving profitability without significant loan burdens.
• Utilizes a highly variable P&L model, allowing rapid payback on new markets within approximately 46 days. [26:22 - 26:45]

AJ:

• Details their financial modeling, ensuring precise tracking of conversion rates and profitability.
• Quote: "We know our business inside out because we're not silent owners." [48:16]

Marketing and Lead Generation

Noah:

• Differentiates between affiliate marketing (non-branded leads) and branded leads, advocating a balance to optimize cost and conversion rates.
• Quote: "Affiliate marketing can be a non-branded lead or it can be a brand. Non-branded has a lot more volume." [31:00 - 32:02]

AJ:

• Stresses the importance of a unique selling proposition and a differentiated product to stand out in a competitive market.

Leadership and Company Culture

Noah:

• Discusses the significance of hiring and retaining top talent, attributing their success to paying well and fostering a positive work environment.
• Aims to promote from within, building a pipeline of leaders organically. [46:09 - 46:26]

AJ:

• Highlights the balance between ambitious growth and maintaining operational integrity.
• Quote: "We could have done $120 million in sales last year. We landed at $86 million because it was the right thing to do for our customers and our infrastructure." [38:14 - 39:52]

Overcoming Challenges and Breakpoints

AJ:

• Identifies people-related challenges, such as maintaining a reliable leadership team and ensuring consistent performance across departments.
• Quote: "When you fail to have the right people, you're running the risk of getting left high and dry." [37:04 - 37:08]

Noah:

• Emphasizes resilience and adaptability, learning from each market’s unique demands and continuously refining their approach.

Advice for Aspiring Entrepreneurs

Noah:

• Advocates for honesty, relentless work ethic, and the importance of people in building a successful business.
• Quote: "It's nonstop. It's relentless. It'll take every ounce of you... It's about the people that you have working for you." [52:09 - 53:11]

AJ:

• Highlights the necessity of robust sales and marketing systems.
• Quote: "Sales drives your business. Marketing gets you in front of the audience... Build a business that is repeatable." [53:11 - 54:25]

Conclusion and Contact Information

John Wilson:

• Wraps up the episode by commending Premier Home Pros’ impressive growth and strategic planning.
• Encourages listeners to reach out for more information. [55:08]

Premier Home Pros Contact:

• Website: www.premier-homepros.com
• LinkedIn: AJ and Noah are active on LinkedIn and can be contacted directly through the platform for advice and inquiries.

Key Takeaways:

• Scalable Systems: Establishing repeatable and scalable sales and marketing processes is crucial for rapid growth.
• Product Differentiation: Offering unique products with a strong value proposition can set a company apart in a saturated market.
• Financial Discipline: Operating without debt and maintaining a highly variable cost structure allows for quick scalability and profitability.
• Talent Acquisition: Investing in top talent and fostering a positive company culture ensures long-term success and operational excellence.
• Adaptability: Continuously refining strategies based on market feedback and internal metrics leads to sustainable growth.

Notable Quotes:

• Noah: "Hope is not a strategy. So you need to know everything about how your business converts, because then you have a business plan." [00:22]
• AJ: "We could have done $120 million in sales last year. We landed at $86 million because it was the right thing to do for our customers and our infrastructure." [38:14]
• Noah: "It's nonstop. It's relentless. It'll take every ounce of you... It's about the people that you have working for you." [52:09]
• AJ: "Sales drives your business. Marketing gets you in front of the audience... Build a business that is repeatable." [53:11]

This episode provides an in-depth look at how Premier Home Pros achieved extraordinary growth through strategic planning, operational excellence, and a relentless focus on quality and customer satisfaction. Entrepreneurs in the home service industry can glean valuable insights on scaling their businesses, managing finances, and building a strong team.