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Gain insight from real business owners and entrepreneurs as they face their biggest challenges as they grow. Host and business coach Cody Hill works with each guest in real time to explore strategies that help them achieve more leads, more customers and ultimately infinite profit.
Ep02_JoseVasquez
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[00:00:00]
Cody Hill: what is up everybody? Today on Infinite Profit I'm excited to have Jose Vasquez. He is a professional landscaper and CEO of Jan-C in Omaha, Nebraska.
With over six years of experience as a laborer and multiple supervisor roles, he took the plunge into opening up his own landscaping business and hasn't looked back since.
Jose's scope of work ranges from residential landscaping all the way to million dollar plus projects. Jan-C is committed
to providing professional landscaping services with a great customer experience. Jose, welcome to Infinite Profit.
Thank you for having me. Happy to be here.
Yeah. Well, hey, listen, we are gonna dive right on into this interview. I am excited about speaking with you today about your business.
How you got to where you are. So this next section, this very first section of infinite Profit is all about you. I believe it's impossible to get the full picture of a business without also learning about their owner's motivation, dreams, and [00:01:00] challenges. And so I just wanted to start off by saying how did you get into landscaping?
Why did you start your business?
Jose Vasquez: Well. The interesting is never planned really. I see myself getting into landscaping. Being, an immigrant here, so when I came here and I learned English and got all my paperwork figured out for me here, I think my parents or my family didn't expect me to see. And doing landscaping, especially when you start out, cuz you start pretty much from the bottom.
I don't know if for those people or you're familiar with landscaping. Usually the first thing that they get you doing is the edge trimer where it's just where you trim everything just, and that's all you do. I would go into work, I will start probably at 8:00 AM and do that until one 8:00 PM straight until we had lunchtime.
And my friend told me I could make $2 more working there than where I was working. So I was like, let's do this. And so, that's what it got me there. And. . I thought my parents didn't see me doing [00:02:00] that because I, they were thinking like I was downgrading to, because I, I spoke English very good. I had my papers, I had some, went to college for two years and were like, you should be doing something different.
And at that point I never saw myself turning into a business. I was like, I'm just gonna work here and probably skip onto something else. But I did that for about six years. And I don't know, I like working with the guys, working outside, working around men cuz it's, it's not an easy job. It's a lot of work.
I got drawn into it and it's something that I really liked. And I like being outside. I like talking, hanging out with the guys, that's what I like to do.
Very so that's what he got me there. And then I moved back to
where I met my wife. And, I mean, I never saw me myself getting married too, cuz it was not something I wanted to do at that point when I was younger.
But I don't know. Fell in love with her and we got married and now I have two kids and I was like, I need to be making more money. How do I make more money? I need to have more [00:03:00] freedom because I can't, I have a kid and I'm not seeing him cuz I'm always working. And part of having the business was just good.
I had time to myself. I had at some point I got able, was able to get a few guys and leave them there. All I had to do was just go find the jobs, leave them there, and I will be able to just see my kid a little bit more often than I was. And sometimes I wasn't because I was always, I was working pretty late.
I was just the laborer too. So I was getting started and finding people and yeah, I liked it. It was. It was fun. I, it's fun. I, I enjoy every moment of it, the insecurity of it, because as being a business owner, you're not, you don't have anything for sure. Anything that you would have for sure that you're gonna be there.
Well, I'm gonna have this much money next week as if you work on a regular job, you will. I
liked that it was risky.
Cody Hill: Yeah. Absolutely. I I love that. I, I love your motivation for wanting to start a business. I [00:04:00] love you sharing. Hey, I didn't think I'd get into landscaping. I didn't think I'd be married. And lo and behold, I have two kids and really kind of diving off into the deep end of of business. I wanted to start too before he got any further and just say, Hey, congratulations man.
You are a business owner. You have done something. You have, you have made the jump. And that's why I love hearing stories about how people get into the business that they're in how their, you know, their dreams, their motivation, their goals, what kind of drives them because you have done something that not everybody has done.
And so I think, you know, no matter what we look at today, we're gonna look at things that'll help increase your bottom line. We're gonna look at things that are gonna help buy back your time. We're gonna look at things that'll position you to be able to exit your business someday and be confident in the valuation of your business.
But before we do that, I, I just wanna say, Hey, you're, you're here, man. You're a business owner. That's very cool. And so what. What role do [00:05:00] you play in the day-to-day of this business? I know you had mentioned you, you got to a point at one point where you had a, a team where you're dropping the guys off on the job sites and, and all that.
So what does it look like in day-to-day for you?
Jose Vasquez: So when our busy business season if I have a few guys working for me already some point through when we were, I got a guy who came in, he wanted to work, he needed money, and very willing to learn And he was amazing. I would go drop him off and just show them what to do.
He got to the point where he could do pretty much just about everything I could do except for to speak English, but leave him there and I would be able to go do another estimates or even go to the doctor's appointments with my wife or take my kid a doctor. So it was awesome. I'm still like, even as right now when it's come to a pretty much slow for right now. I don't know. I'm just waiting for the summer.
I'm pretty pumped.
You can either make it big or you cannot make it at all, but [00:06:00] at least you have a chance to make it. I feel like it's one winning the lottery in a way.
Cody Hill: Yeah, yeah. Absolutely. So where do you see your business, let's say in the next five years? Where would you like to see your business?
Jose Vasquez: So where I would like to see it is potentially a more growth, of course with more, more people that I can employ. Because that's one of the things sometimes that I don't know, I, I never thought about it, is like, you're, you're making, or, or have do estimates and you sell the job and people come and work for you, making a living.
You're making a living. I mean, everybody's making money at that point. The customer's happy cuz they like the service. So my next few years to have a few more guys probably about
my goal is 15,
Cody Hill: Okay.
Jose Vasquez: guys
in the next five years with continuous throughout the year that they're working and have probably, but three different groups of guys that would go and work.
Hopefully I, I'm able to stay there in the front on the front lines, you know, and helping [00:07:00] out and doing whatever needs to be done. And, but yeah, growing at about 15 guys hopefully have, at that point, hiring somebody who does the payroll full-time and being able to take care of that, like have a secretary as well, and having my own office and probably another place where we can park all our equipment and work.
what I have planned. Hopefully everything comes to fruition. But yeah, I mean, I don't know. Even if it doesn't, I'm excited. It doesn't matter at the end of the day, you tried it and I don't really care. You know, I got nothing to lose and I got make, so.
Cody Hill: Yeah. I like that. I love that man. I love your energy. I love your, I could tell you're excited about that future you're just talking about. And like I said earlier, we're definitely gonna look at some strategies. At least three of 'em. If we have time, we'll throw a fourth one in. that are gonna help you kind of see what steps or the kind of impact that a few of these strategies implemented into your business and sustained over time could lead [00:08:00] to that exact picture that you were just painting taking it from a dream to an actionable roadmap to get there.
And so what are the three biggest problems that you currently face in your business?
Jose Vasquez: I think one of the things that I mentioned to you about is just having continuous work as of right now, where as of right now, unfortunately it doesn't allow me to hire people full-time. They have to work part-time and I'm sure they don't mind cause they have their full-time jobs and make money on the side.
But I wanted something. solid and more permanent that I have more continuous work. And the other thing is just figuring out what's gonna be, what am I gonna do in the winter?
Cody Hill: Yep.
Jose Vasquez: I've been brainstorming what's, what ideas I can come up and I have a few in mind and just a matter of time and work. But I think in the next year, hopefully we should be able to have something instead where I can have at least two to three guys just being a full-time. And yeah. And the other thing is just, [00:09:00] I'm new to this. I'm, I did sales for a while, but as a business owner, sometimes you hesitant what the pricing's gonna be. How, how do price things, how you wanna, like, you mention some of things you manage what's my profit do I want at the end of each job. And that's something that I really wanna figure it out.
Cause I get tips. I have few cousins who are business owners themselves. and they tell me how well they're doing. So I get a little jealous. I'm like, why not? Why am I not doing so well? And, but I, I like where I am and I'll get there when I get there. But those are the few three things that I would like to, to get done.
Cody Hill: Yeah, absolutely. Thanks so much for sharing. I really appreciate you opening up your business, your, your number some too to me as well. Not only do I believe that we can increase your profits, I'm confident that we can also address those challenges that you mentioned here today. And so prior to this interview, you submitted some ballpark finances so that we would have a starting place [00:10:00] the infinite challenge today here.
We looked at your current net profit at 24 K, which is after all your expenses, all your overheads, everything. So again, congratulations.
You're a business owner. You're doing it and you have profit. I cannot tell you how many different businesses are businesses that do not have profit, that do not have money left after, after the bills have been paid. And so this is an awesome jumping off point for us here. So what you're, what you can expect to see is we're gonna see on the top right hand corner of this screen, over time a total profit impact.
And after every strategy that we look at together, I'm gonna show you the impact that that has, and we're gonna begin to see how simple really simple strategies implemented and sustained over time have a compounding influence on your profit.
And so the first strategy that came to [00:11:00] mind for you specifically for g and c specifically, is additional products and services.
And so additional products and services. What I mean by that, this is what I mean, the front end is the package of services that you offer first, right? And the back backend is the array of products or services that you can offer after the buying relationship has started, right? So developing the backend requires almost a new attitude that is realizing that your job is to bring as much value to your clients as you can, and not just selling them your service, it's to sell them your services, and in the process, gain their trust, understand their needs, and deliver improvements in the quality and prosperity of their lives through whatever means that you're able to create.
So, as an example, Amazon loses money on every single Kindle that they sell. But because they understand the lifetime value of a customer, they'll make their money [00:12:00] on the back end by selling books, incorporating other, right? They have Kindles now that are basically a tablet too. So incorporating other apps that you can purchase and pay.
So, for Amazon, right? They have additional products and services that are complimentary to, or are other options available to somebody who's already buyer, who's already become a client, who's already used their services. And so when you think about your services, what additional products and or services does your ideal client want, need, or would they find valuable in addition to landscaping.
Jose Vasquez: I have customers right now where I did 6, 7, 8 jobs that, of course I do added some stuff on to what I do. But they were, they were happy. They were giving me a call back if they were asking me for, to refer them to people. [00:13:00] They're like, oh, do you know somebody, do you know somebody who does this or that?
And I'm like, yeah, I can pass on a phone number for you. And I don't know, it seems having trust reliable and doing what you're gonna do is, I don't know what, I think it's one of the things that has made me stand out quite a bit.
Cody Hill: yeah, absolutely. I totally understand that. So with those customer requests, those additional requests, were any of those services potentially something that you could offer in the future? So instead of offloading them onto somebody else, were any of them complimentary enough or, or do you see any opportunity there for you to be able to offer those services?
Jose Vasquez: Like offering them up front.
Cody Hill: So instead of securing a customer for this one time landscaping or a few time landscaping if you were to offer an additional service, So like they're, they're asking you, Hey, do you know somebody who does this, or this? Do, are any of those additional services something that you could [00:14:00] consider would be able to, instead of offload to somebody else,
Jose Vasquez: Okay.
Cody Hill: kind of your arsenal of services that you provide?
Jose Vasquez: Yes. And. Actually as part of landscaping, I did do trim tree treatment and palm trimming out palms in, in Florida cuz that's where I got my most of my landscape experience. And I think, well I'm in the process right now of getting my arborist license where I can do trees and I'll be, that would be one of the services that I have a lot of customers requests and I've done small jobs where doing this and there, and, but I think having, being a certified arborist in having that, the certification would something that would be offered.
Cuz I'll be more confident in offering the tree service cuz I have the experience for it. But I think that's one cause the things that I'm gonna, I'm in the process of offering, hopefully next year it'll be something that I can [00:15:00] offer or, or if not something, or within this year, I'll have something to offer that is an add-on. To,
Cody Hill: that's great. I, I think that's, that's exactly the kind of things that, that we're talking about here when we, we discuss additional products and services. My dad actually was a brick and stone mason. And so I'm very familiar with the seasonality of, of a labor job. Right? my dad was always in the wintertime trying to figure out what's something else that I could be doing when you know, the mortar's not gonna set the, the stone would fall off the wall if we did it. The stucco wouldn't stick. And so, one thing that just came to mind is since you're already talking to people about their yards and their homes and, your work is, is, you know, the beautification of, of a home.
One thing I think of is the potential for , hanging Christmas lights or doing something along those lines of [00:16:00] seasonality or offer a package that you could maybe, I don't know if it's slower now, you could offer a Halloween package and you could offer a Christmas package afterwards where it's all inclusive.
You come, you hang the lights, or you put the stuff up, you know, just an additional service that. Keeps you in front of that, they already purchased your landscaping services, right? And so then it keeps you in front of them throughout the year, throughout those
slower months an opportunity, as a option for you. Have you considered that or,
Jose Vasquez: I have for a bit. And one of the other things that I have thought about doing was, right now it's snow removal. And as of right now, I'm. I'm still analyzing how I can go about it. And if it's just reaching out to my current customer base and letting 'em know I can also do this for them.
It, it is one of the things that I've been thinking and probably will do here as soon as probably Thanksgiving gets closer and will be one of the things that I'll be doing. That'll be for sure it's one of the [00:17:00] things that I'll offering out there.
Cody Hill: great. Yeah, I, I think those are all awesome. And we're gonna look at another strategy in a little bit that will definitely compliment and play off of just this brainstorming and the things that you're processing and thinking as far as additional services go. And so do you have a systematic process right now for selling customers additional goods or services?
Jose Vasquez: Can you gimme an ex? What, what do you mean? Like,
Cody Hill: So almost like an automatic follow up or a pitch that you have that's ready not just for your main services, but if they already are paying for your landscaping services, do you have a process where you go, Hey, when I give them their invoice, I'm gonna mention, or I'm gonna hand them this thing that talks about my additional services.
Or when we meet and I give them the bid on, or for this job, I have my additional services brochure
Jose Vasquez: Okay.
Cody Hill: QR code that, that [00:18:00] takes them to immediately be able to look at the additional services. And then maybe potentially bundle it or add on to those. Cuz if you mention it once, they'll, for it just becomes a But if it's a part of every time you're interacting with your client or your prospect, you're saying, Hey, we do this, this, and this as well. It keeps you in the front of their mind. And if they decide to use that service or they, you know, go, oh, I never thought of that you're there in front of them saying, Hey, I have this available to you as a value add.
you have anything like
Jose Vasquez: I don't I haven't really thought about it until you, you mention it right now. But no, I don't, I don't have anything. That sounds like a good idea. Yeah, I, yeah.
Cody Hill: That's, that's why we're here, that's why we're doing this, is to be able to brainstorm and, and talk through some strategies. so to what extent have you worked on increasing the revenue from each customer? So that could be, when you're meeting with a customer, do you have a base package that you offer?
And [00:19:00] then do you have additional services where you can increase not just the cost, but the value, the perceived value of the time? Do you have one or two or three things even within landscaping specifically that you go, Hey, here's what we could do for this price. And if you'd. This, this, or this, then it increases in value in their mind, and maybe not necessarily for you and your cost but it increases in value, the perceived value or the quality, which then means that you're able to increase what you're charging.
Jose Vasquez: Yes and no. When we, when we get started, usually when I get show up to a home and they wanna do this, I usually make recommendations and see what they want to see, what they, what kind of project they have in mind. But I don't have a process like that where, and I think a lot of the issues has come because on most of the jobs, I've been the one some of the work. So it gets stressful and on my side and thinking, oh, I'm gonna do this. I don't have to do this cuz I don't have somebody to who knows how to do it. But it got to the point [00:20:00] where I, towards the, as we advanced this year in learning and doing some and having the people there it made a difference cuz I could offer as well.
We do, French drains where we pretty much submerge the gutter instead of draining straight into the yard, it just goes underground and submerges away from, either from the foundation or away from the area where they don't want the water to sitting. And that's one of the things that we, I offer as well as part of the landscaping.
Yeah, that's, yeah man. I mean, that's one of the things that I've been doing, usually
offering French drains. I mentioned trimming, shrubs,
I try to add on onto the, the service that I do and usually, but I go based on what the customer wants and usually make it happen. Usually what I tell them is, my job, just to imagine what you want, want your house to look like and I'll make it happen.
And, and that's what I'm there for.
Cody Hill: Yeah. Yeah, absolutely. I love that. I think those French drains are exactly what we're thinking. Right, [00:21:00] exactly what we're discussing here too. As you begin to think in this way and we discuss, hey, if you are able to add French drains, if you're able to add, three or four different packages options, or additional services, if you had a systematic process for selling additional goods and services, what kind of impact do you think this would have on your business?
By percentage? How much do you think it could increase from where you're currently?
Jose Vasquez: I'll say at least about a 20 to 35%. Cuz there are some opportunities that I have missed. that I could do a better job on closing. But sometimes you get, get wrapped on doing this instead of having a step back and look at it away from you gonna be making money, you're gonna have people who are gonna be doing the work instead of sometimes me having to do the work for everything, cuz I'm the one who knows how to do it. But it's, finding more people and having more people available is one of the things that I think's made it easier on promoting that and having that [00:22:00] done.
Cody Hill: Okay. Yeah, I definitely agree. I think easily 20 to 30%. What I'd like to do though is stay just a little bit conservative for this exercise that when we see it you can really see the power of the compounding interest as small, know, strategies are implemented. So are you okay if we go with 12?
Jose Vasquez: Yeah.
Cody Hill: and then if 12%, you know, is attainable and seems attainable. I think 12% is child's play. think you could easily reach 2030, maybe even 40. I think especially with the, the nature of landscaping, I think there's lots of opportunities for additional services and additional add-on packages that are perceived value don't necessarily cost you any more money, but you're able to increase your prices as a result of that.
And so with just this one strategy of additional services, We have a 14% increase [00:23:00] altogether, and that's because there's 497 million weighted algorithm sequences that are going in here that are taking into consideration the different costs for implementing these strategies and new strategies that there might be Right.
Increase in inventory at times, maybe an increase in in staff to be able to help ensure that. And so you can expect an increase in revenue of $6,660, which has a total profit impact of $3,330 because it's taken into consideration your growth profit Margie, in your net profit margin that we discussed today.
So it takes that current profit of 24,000 to a new annual profit of $27,330. That's a pretty significant change. And again, remember we cut that percentage Down in half from what you have brought up. And I do agree, I think we could easily reach at least 20%. And so, how's that? What, what does that make you [00:24:00] think,
Jose Vasquez: Good. I mean, yeah, I think it's gonna be good, especially when, once we, because right now I have my customer base that I will have continuous work pretty much for next couple years and just maintaining that. And I think if I can maximize that every, every month right now, especially with people that are new customers that will be coming in, I think that'll be something very achievable and something that looks really good.
Cody Hill: Yeah, absolutely. I totally agree too. Hey, the second strategy that I'd like to look at with you together is reactivating former customers. And so re reactivating former customers may be one of the simplest and lowest cost methods of growing your. There could be any number of reasons why clients stop doing business with you, many of which have nothing to do with the way that you performed in the past, right?
These customers know so much about you already, and unless their circumstances have completely changed or they had a [00:25:00] bad experience with you in a previous transaction, they might easily be persuaded to begin that buying relationship again. And so why do customers normally stop doing business with you?
Jose Vasquez: currently, I mean, I can only probably think about one or two that haven't reached out, but I think as we got most of the, unfortunately, some of our priors that we get done when it comes to landscaping is we do a lot at River Rock compared mulch and river rocks. Once you put it down, you don't have to pretty much do any maintenance or anything to it. Well,
Cody Hill: you're too good at your job, is what you're saying. That's why
Jose Vasquez: Yeah. So I mean that's that's one of the things. And, but yeah, I can't really think of anything of why they wouldn't, wouldn't do business.
Cody Hill: So when you think of your customer base, people who have decided to enter into that buying relationship with you , you just [00:26:00] mentioned maybe you're the river rock instead of mulch, so they don't have additional needs, is a lot of your landscaping. Primarily a one time job because it's an overhaul or it's a change, or is it a continual relationship?
Jose Vasquez: I think for most of it has been continuous cuz a lot of the people that I've worked with I have gone back and done work at least probably one twice, sometimes go back and do it for the third time. I think that's one of the things that I, I've noticed is just that usually about two, two to three times is when I get reached out by customers and then usually that's when they're landscaping, they're satisfied with it and at that point they're like, I think we're good as of right now.
But I think offering that tree service, offering some other, adding more services to my, to, to our company that will do amazing things and our will increase that. And then offering those extra services, like you were mentioning, just 12% mentioning we have these other services that will. [00:27:00] Will keep us on the loop and keep them, keep us in, in their heads, in their minds for whenever they have another project, if they want to get something done or have this or, you know, something like that.
And I think that would be something, if I hang some or pass some of those things around with my invoices, that would definitely think would make a, a difference. So probably looking, investing in, getting some of that stuff taken care of.
Cody Hill: Cool. Very cool. So how many customers on your list are inactive versus those that are active? Do you have a list of previous clients and do you have a way of tracking that?
Jose Vasquez: I would say probably about 10% of the customers that I have are ones that are, have other things in mind.
Cody Hill: And so do you have, do you continue to communicate with your inactive customers so that 10% you have no,
Jose Vasquez: no, I
Cody Hill: no continual communication.
Jose Vasquez: I don't, to be honest.
Cody Hill: Do you have an established policy or procedure? Like a special offer or system for [00:28:00] reactivating those former customers? So that 10%, do you have something? Hey, you worked with me in the past. We'd love to, here's a special offer for you for fill in the blank tree. Trimming what, like, a follow-up, right?
Maybe it's a couple months, maybe it's a couple weeks. Maybe it's, you
Jose Vasquez: one.
Cody Hill: seasonal.
Jose Vasquez: One of the things that I've been thinking about, and it's something I'm not sure if it's some, but I'm thinking here towards the end of the year probably get all the customers who refer me to somebody, at least one person, and probably getting them like a $5 gift card from somebody or, or send 'em.
I'm looking to see if I can reach out to somebody who owns like a coffee shop or something similar where I can do stuff like that and get a cup gift cards and just mail it to their house and be like, thank you for trusting us and referring us to your family and friends. Coffee's on me of deal.
That's one of the things that I have in mind doing here in the next month or two figure and something out like that, so that way I
Cody Hill: That's idea.
Jose Vasquez: stay back in business, you know?
Cody Hill: [00:29:00] That's a great idea. And you could even word something in it that says like it's playful. Like here's a gift card to stay caffeinated so you can energetically share about my services again, or something like You know what I mean? Like, do you have, do you have anybody else in mind or, you know, could play off of that too, so that it's not just, oh, they feel nice, but they go, oh, I have an action point.
I should, I should pass on, you know, GNC's information too. So I love that, man. I love that. That's that entrepreneurial mindset there,
Jose Vasquez: Yeah.
Cody Hill: So,
Jose Vasquez: yeah, and I tell the guys like whenever we were working and sometimes they, I, I would, I had an old truck and stuff and we'd be working on it and it is funny cuz they don't, sometimes the guys, you know, they would like get close to it and like scratch it. It was old so I don't really care too much, but I like, treat it well.
Cuz that's what pays the bills right now. And so that's what right now. And I'm like, and, and the same thing for other customers for [00:30:00] me. You know, they're the ones who provide more business, provide, introduce me to new people and yeah. And I mean that's, that's what I have in mind. And to thank them cuz I know, I like to be appreciated when I refer somebody to somebody else and they end up business and
Yeah,
Cody Hill: yeah. Absolutely. I love that. So of those 10 percent-ish of customers, how many do you think could be persuaded to start buying from you again if they were asked?
Jose Vasquez: I think probably. if they have the need for my service. I think most 10%.
Cody Hill: Okay,
Jose Vasquez: that, that all of them that have confusion with my business, I think all of them wouldn't have an issue buying from me as long as they have a need or I can show them a need that sometimes they might not know that they, that they need, but they, like you mentioned, offering those extra services.
They might not think that they need that, but sometimes, oh, that would look nice. I would want that in my house. And that's something that I could, I could definitely see [00:31:00] all, all of them going for it.
Cody Hill: Yeah, absolutely. So what do you think would be an effective action that would bring some of your former customers back to you? Because you mentioned with the referrals, you have a real action step here of trying to keep them motivated to continue to refer as well as remember that you did business with them.
And so, what's a simple action that you think that you could implement even this week to reach out to that 10%?
Jose Vasquez: I am not sure. I haven't thought of anything so far.
Cody Hill: Great. Great. I'll I'll take note of that and, and we can think of something later that you could act on just for those 10% specifically.
So if you were able to reactivate those 10% of customers from this last year, what kind of impact do you think that would have on your business as they're reactivated? What kind of percentage do you think it could increase your revenue?
Jose Vasquez: [00:32:00] I think it would be, I would say the revenue increase in it. I think it would be, I don't see them increasing it, but I think if they refer somebody else would increase it. But I think what it would do for the business, it would give you more consistent when it comes to the work that we have. And some of them, cuz they have big houses, it's big projects.
I think some of that would be, would be good. I mean, getting would be about it, I don't see it, it would definitely increase it cuz it's, it's something that would be, that we be maximizing on. But yeah, I mean it's just something that would be more constant and if we are able to get it, it provide a lot more options cuz they, they already know us and they already like us, so it'd be.
I think it would a consistent income that we would, we can generate there.
Cody Hill: I agree. I totally agree. Are you all right if I, let's [00:33:00] say 10%, 10% in. Okay. All right, so we've looked at just two different strategies together here,
so if you remember your current revenue of 60 K, the expected increase in revenue is $12,960. So that's a total profit impact of $6,480, which is a 27% increase in profit from where you are currently. That's pretty significant when you think about the amount of effort that you would need to put in in order to implement these different strategies, right?
The two strategies we discussed of reactivating a former customer and then additional services. Additional products and services, it doesn't actually require you to spend any money and it doesn't actually require you to add time to the things that you're already doing, So with the additional services and with the reactivating former customers you're already using the strategies that you already have, right?
So when [00:34:00] you have an invoice or when you meet and give a bid, just including those additional services is no no additional sweat off of your back, so to speak. So if you have a piece of paper to be able to add to that, and you have a ten second page that says, Hey, here's the bid for this, here's how we could do it, and then here's a, here's some value add, or here's some additional services that we offer that would help really help with maintaining what we're about to implement, right?
Or help with like upkeep with what we're about to implement or help with, you know, so it's not adding. to your admin time but it's increasing the potential for purchases and the potential for an increase in revenue.
Jose Vasquez: Yeah.
Cody Hill: All right, so I have two more strategies that I'd like to look at with you quickly before we wrap things up here. And so the next one is [00:35:00] bundling. So bundling is simply the process of grouping together certain products to create packages, which are then sold to clients. It creates an apples to oranges comparison and removes price from the equation, right?
So customers today shop value, for the most part, they shop value and they do not shop price. So unfortunately, small businesses can be lousy at conveying their value proposition. Therefore, price becomes the only value proposition left to the consumer. Which means the only option you have is to decrease your price in order for it to in order for a potential client to enter into a buying relationship with you.
So the real key to success in marketing is to offer more value than your competition and bundling increases the perceived value so that prospects end up buying more from you. Let me pull up,[00:36:00]
so I have some questions in, in line with that. I think the French drains is awesome. I think we've started talking about additional products, and so bundling in French drains with the service that you're bundling in you know, trimming hedges or tree trimming adds value beyond that so that you know when, when you make your pitch beyond.
Just their specific project they have in mind. You're beginning to add value to that. What other products and services do you offer? Could you offer in line with that?
Jose Vasquez: So one of the things that I've been looking to do as well and add as part of my service and included it's sod
so that's one of the things that I looking and adding. And usually that wouldn't really, it's not something that I would do. I have somebody who knows how to do it and they have their own company and pretty much I would do is just sell it for them. And as soon I wouldn't have necessarily have to be [00:37:00] present there. They can just go and do the job. They know what they're doing, and pretty much all I have to do is just pay them and I have to collect the money from the customer. And that's one of the things that I'm looking to add as part of the service that I can do as well.
Cody Hill: That's great. I think that's even another strategy of joint ventures, which we're gonna get to today, but we'll talk about in the future of having joint ventures and alliances with businesses where you get a commission or a royalty based off of that. So you provide a job to them for percentage.
And a lot of other businesses are really happy to do that because it means that you're out generating leads and passing business onto them for a small percentage of, of the job itself, which then allows you to benefit from it, and then it increases their revenue, which might not have had otherwise, and they don't have somebody else on the ground.
So that's great. That's awesome. love. And then you're able to package it in with your services as well. [00:38:00] I love
Jose Vasquez: yeah. That's one of the things that I've done in the passing some of the jobs and it's added value because they customer doesn't have to go searching everywhere else You. And they just, you're the, you're the two old person and you'll be able to handle it and take care of business, make sure that everything's taken care of, and they don't have to worry about it.
And all they have to do is sit back and watch what they had in mind. Come true.
Cody Hill: Yeah. That's so cool. That's great. So what complimentary products in addition to sod do you think that you could offer through affiliates like that or alliances that your customers may need when buying what you sell? SOD obviously is a great one. I thought of a sprinkler system.
Jose Vasquez: I thought as that as well. And as of right now, I might be something I found on the future. I I just have one of my customers introduce me actually to this guy who does landscaping. You know, he does, he doesn't do any of the hardscaping like I would do. The only does like the maintenance, like cutting and maintaining the the, the, [00:39:00] the. And he re and he reached out to me on seeing if I wanted to go some, doing some other like ventures like you mentioned for snow removal. And he would do some subcontracting and I'll take care of getting that done. But yeah, that's, yeah. But hopefully something like that and me, myself, I'm thinking of either going, getting into potentially the land maintenance and cutting the grass and
fertilizer and potentially getting into it, but I'm still deciding on, depending on how much time I would have, how many people I have, and if I would have the time to do that once the business season kicks in.
Cody Hill: Yeah, absolutely. Absolutely. I think fertilizer is a great one to think of as well, and kind of what we're discussing here, this bag of bundling and joint ventures or alliances, you don't necessarily have to make the jump of you're doing the fertilizer yourself or [00:40:00] you're doing the maintenance yourself.
You could with your alliance and joint venture, bundle that together and, and price it at a point that makes sense for you, where you make money above and beyond what you would have on the project previously, where the person you're joint ventured with makes the money that they want and need to make in order to not just cover the bills, but to actually, you know, feed their family at the end of the day.
And, and you're getting your potential client to pay more for that service because it's an added value. if you were able to. Package something together like landscaping with maintenance and fertilizer or year round up keeper, you know, whatever. Maybe even with a joint venture there. How do you think that would impact your overall business from a percentage standpoint?
Jose Vasquez: I think it would be a lot if I'm able to do all of that stuff and combine it, [00:41:00] I think, yeah, I mean, I want to say 30, 40% of, of increase, if not even more, because that would be a lot of, a lot more stuff that you will be offering and to do that as of right now, I'm not doing or offering.
Cody Hill: Yeah, I agree. I totally agree. Are you all right if I put 20% we still
Jose Vasquez: Yeah. Yeah, of
Cody Hill: see and we stay conservative these numbers here? I think you could knock it out of the part with that.
And so here we have three different business strategies that we've discussed, and we've been able to identify an additional increase of $26,100, which would take you from 60,000 to $86,000. Now keep in mind the gross profit margin and the net profit margin that we've discussed is still being added to this expected increase in revenue.
However, [00:42:00] we went conservative with the percentages and I do not think that there's an increase to your overheads necessarily with any of the strategies that we've looked at together. So I think that your profit increase is much closer to that $26,000. altogether than it is this $13,000. Cuz when I think through, you don't need to purchase additional equipment for bundling and packaging with joint ventures and you don't necessarily need to add to the tools that you need in the long run.
may need an initial purchase, but each job that you have, you don't necessarily need to increase that. What would an additional $13,000 do for your business?
Jose Vasquez: I think that'd be, that'd be really good. Especially if we looked at it being this the first year and learning, getting that customers, I think for next year, that percentage could be very well. And my goal, I think my goal [00:43:00] for this year, I set it up too low where I was like, well, if I can only make this amount of money, I'll be, I'll be okay as a business my first year.
I'll be, I'll be happy with that. And I think that's, one of the things that I made a mistake of setting my goals too low, but at dm, I'm happy and that I reached it and it's just a matter of setting higher for next. But I
think
Cody Hill: Yeah,
Jose Vasquez: if we set up the goal higher and get those numbers, what was it, 25% or what was it? Increase with a bigger, more cus more, more business floating around and more and maximizing on those options. I think it would be, it'd be amazing and amazing what's gonna be,
Cody Hill: I, I agree. And I think that you can act upon those, and these are all strategies that can begin to, impact your bottom line right away. So it's not like you have to wait a year to see realized. These are things that you can begin doing even this next week that you, you could see, you'd be able to see that growth right [00:44:00] away.
I'd like to look at one more strategy with you, just because you've mentioned it a few different times here together, and I wanna make sure that we are really anchored in on ensuring that you are optimizing this strategy and that strategy is a referral system. So it's often possible to generate more customers from referrals than it is by any other means.
You've already expressed said a lot of your business now has come from people referring It carries the least risk and the highest impact for any marketing. action If you ask someone once, it's just a question. If you ask people at the same stage of the buying process, every single time, it becomes a system. And there's no reason why you should settle for just one type of referral system. You should incorporate many systems at the same time, and that is a way that your business could more likely grow on autopilot. For example, you could tell the prospect in your very first meeting that you'll be expecting referrals if you exceed their expectations.[00:45:00]
You could ask for referrals when they first sign up as your client. So there's two touches right there. You could ask for referrals at the moment of peak satisfaction. So right when they see it, not only could you ask for a referral or you know, if they're pleased with it. You could even pull out a phone, your phone and snap a video real quick and saying, Hey, how do you feel?
What are you feeling about? your new lawn, right? And so then it's not just you get a referral, but you're capturing their emotion, their excitement about them seeing their lawn come into play. And then that can go on your website. It can go on your materials. You could have a, a landing page where people, it's your review page, so to speak, unofficially where you can send people to and they go, Hey, there's 20 videos of people freaking out about how happy they are about their lawn or how grateful they are.
You could ask for referrals on every visit. Hey, you know, just have it part of your speech and, and your talk when you're talking to them. You could have a business card that asks for referrals, and [00:46:00] then you could set up a website or social media that continually asks for referrals or motivates your, refer your referral request.
so I like what, what you're already thinking of, of sending out a gift card. I wonder if you could, that could become part of what you do. Hey, we'll send you a $5 gift card for. every referral you, you send my way. Right? And so then it's a service or a package or something extra that doesn't cost you a lot of money, but it gives them a real actionable perceived value.
So do you have a systematic referral process?
Jose Vasquez: no I don't at all. I mean, I think the most thing is just when I have people reached out and ask me one of the things that I can do, if I know somebody, then I can, oh, I, well I do this and I have these other services, but I don't have a system per se that right now that that's what I do. Like you mentioned, if it, if you ask every time, it becomes a system and I [00:47:00] ha I have not, I don't, I don't have a system.
It's just pretty much just we throwing ourselves into the water, you know, and learn to swim at the end when we were already in it. So, but no, that's, that's something that I haven't thought about before, be honest.
Cody Hill: Yeah. Yeah, absolutely. So if, so, one solid referral system is great, right? Five that we just looked at could really just become autopilot and, and significantly increase the amount of jobs that you're closing on and could get you to that desire of having, you know, a crew of 15 or three different crews, know, culminating of five and, and being able to step into having an admin running your book so that you can focus on, on the part that you enjoy within the business.
So what would be the additional impact if you added, you know, five systems from what we just mentioned,
from a percentage? How much do you think that'll influence your business?
Jose Vasquez: lot, I think it'll be a [00:48:00] lot. I think probably about, I don't know, I think conservative, I think it'll be a 30%. Sometimes I,
Cody Hill: I agree.
Jose Vasquez: they tell me I talk too much and then I'm like, you gotta back it up. And then all you gotta do is just put the work into it. And what you said makes do what you say you wanna do, even if it's spec, if it's high, you know?
And, but yeah.
Cody Hill: Yeah I Listen, Jose, we made some pretty significant breakthroughs just now, I think in, in not just increasing your bottom line, but I've seen it kind of clicking for you going, Hey, I could do that. Right? I've heard you say, oh, I don't, but I could do that, right? I don't, oh, that would be simple.
be easy. That's what I love about business, and that's what I love about this podcast and interviewing business owners is because you have accomplished something. You own a business, right? You have a business. And so with those four different strategies that we [00:49:00] looked at together today with the.
Uber conservative numbers and percentages that are really child's play that we threw out there. We have a total profit impact of $15,000, which is a 64% increase to what your current operations are. And so that takes your new annual profit. Again, this is after all the bills are paid of almost just under 40 K.
That's in revenue, right? Revenue feeds the ego but profit is what feeds the family. What could that amount of money mean for your business?
Jose Vasquez: I think it will definitely make a lot of difference. You'll to afford more, more equipment, to do a lot more different stuff and hire more people. And I think it's just growth and that's, that's what's gonna do for it. And I think honestly, those numbers will be higher next year and it's my goal, my goal to make them.
So,[00:50:00]
Cody Hill: Yeah,
Jose Vasquez: and you know, it's, yeah, I mean, I'm excited for it, but I think those, those numbers will be good, especially once we come in with the next year when we got a little more experience. We got some customer relations now. think those numbers, 64%, that should easily be accomplishing increase and hopefully even more once, now that we get the experience and hopefully something that what you call a system going on and,
Cody Hill: yeah,
Jose Vasquez: yeah.
Cody Hill: yeah, absolutely. And keep in mind we. I have more, we have more than 12 strategies that we could implement and we only looked at four of those. Right. And so, you could begin to see, hey, this compounding Im impact. Right? If we implement eight different strategies over the next year, that's like 300%.
Right? And so which strategy were you most surprised by? Or maybe which strategy do you think you [00:51:00] could act on this week and, and begin to see changes within that bottom line in your time?
Jose Vasquez: I think the one that you mentioned is just reaching out to your customers, the ones that haven't been buying from you lately. and you're seeing if there's a service that they might need or, along those lines, like activating, activating, I think is the word.
And yeah, I think that's one of the things. I'm, I'm pretty shy. I mean, myself, I'm not very, I like like to talk a lot, but I'm not very like forward. It comes to people so taking videos and I don't know. To me it seems good idea, but I don't know. I'm a little bit
in my, shell might need to come out of my shell a little bit and and do that a little bit
Cody Hill: Or you could bring a friend along. You could say, Hey, this is my friend who's gonna, he, he comes along with me and takes quick videos. I just want to ask you real quick, what do you think of your, of the work we've Right. How do you feel about the work Right. And then it's, it's that guy with the, your phone. even be your phone. Right? And
Jose Vasquez: And hopefully that sounds a good idea. Maybe my wife, I can have her just come and take videos and just [00:52:00] have her meet the people after when they're happy, all the work is done and. ,
but hopefully she becomes, make her part of it and help out in, in a sense, when it comes to the company wise.
Cody Hill: Yeah. Yeah, absolutely. So, hey, you had mentioned consistent business and coming up with ideas for the off season, if you will, as a challenge for you. How would what we uncovered today change this concern for you?
Jose Vasquez: In some part we alleviate a lot of it cuz it's not because cuz I think once we have all that money, we, we have that money, we can figure out some other things to invest and that would give us a return either and keeping people busy and making money at the same time. But I think having the money, having that money and of course is always gonna give us more options than not having it.
And yeah, I think it just, it will make some opportunities for either investing in some other [00:53:00] stuff. but it alleviates cuz now you have, I don't know, makes me a little bit more confident. Cuz there's a system now that you can rely on. And you don't have to go and, I don't know, find out for yourself and bare bone, find out what, I don't know.
Just try to swim by yourself. Now you have like a rope that you can swim, you know, like you can pull yourself out of that or wherever you are and, but yeah.
Cody Hill: Yeah, absolutely. I love that. Absolutely. Jose, thank you so much for joining me today and opening your business up to myself as well as our viewers and listeners. I hope that the breakthroughs we discovered were beneficial to you, and I'm certain once they're implemented we'll have an infinite impact on your profits.
And to everybody watching and listening, please make sure to like and subscribe. You'll not wanna miss next week's episode where we'll help another business find strategies guaranteed to infinitely increase their bottom line. Until then, this is Cody Hill to your success.[00:54:00]