Million Dollar Electrician - Sale to Scale For Home Service Pros

S3 EP14 Will Electricians Make More Money in 2026? The Profit Formula Inside!

• Clay Neumeyer • Season 3 • Episode 14

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Most electricians think they have a pricing problem… but what if it’s actually a confidence problem? 

In this powerful episode, Joseph and Clay break down the numbers that finally make profit real and show you how to build pricing that earns you what you're worth without overthinking it or needing to rely on your accountant to run your business. 

You’ll discover: 

  • Why the average $120/hr rate is keeping you broke (and what you should actually charge)
  • The real reason your accountant can’t save your bottom line
  • How to finally get confident in your pricing (and sell with clarity)
  • The 3 invisible factors that kill your gross profit — and how to fix them
  • Why hyper-local marketing is the future of high-profit electrical business


...Plus, the genius $0 marketing play that sold Joseph on the spot — and how you can apply it this week.
 
If you’re serious about making 2026 your most profitable year yet — this one’s for you.
 
💡 What You’ll Learn:
 
-The new 2026 SSR (Simple Service Rate)

-Tool Profit Goal Targets: 50–60% Gross

-20% Net Why 1 extra call/day won’t fix your business Inventory tip that slashes your COGS

-The “Good Neighbor” hack for hyper-local domination
 
 
⚡️Want more tools, strategies & trainings to take your electrical service business to the next level? Join the community inside SLE Pro App!

⚡️Podcast Powered by Duromax Generators. Making turnkey power solutions easy. 📧 Email: jesse@duromaxpower.com

🌐 Website: www.duromaxpower.com

📞 Call: 909-490-5789
 
⚡️ Book your complimentary call with Forrest Schwartz

CoFounder and CEO of TopLineGrowth

Focused on helping companies grow their top line revenue via digital marketing. 🌐 https://topline-growth.com/sle


⚡️Jump into the Million Dollar Electrician Community and connect with real business-minded sparkies! https://www.facebook.com/groups/844859526389567


 
⚡️If you are an electrician looking for trade-specific business training in pricing, options, sales, attraction, and marketing strategies, Then our Loop Method is your answer!


 
⚡️Learn how to serve and earn at the highest level. Contact us, we’d love to help!
 
 

 
#electricianbusiness #pricingstrategy #tradesprofit #electricianmoney #servicebusiness #electricianpodcast #2026businessplan #milliondollarelectrician #grossprofit #raiseYourRate
 

SPEAKER_00:

People don't know what they need to charge in order to be profitable. And because they don't take these steps of going through these tools and really putting their numbers in, that's when it can be really difficult to stay true to your offer. Because I'm sure there's an electrician listening to this right now saying, well, yeah, I know I gotta charge 300 an hour, but people don't buy for me at that rate, so I offer less or I try to speed it up. I think this particular exercise is so impactful because when you see it in black and white, like these are my numbers, really everything that comes from my business, put it into the formulas, and it came out with this. It's in black and white, this is what I have to charge. That actually builds your confidence to then deliver a more beneficial presentation. You can take that offer because you know if you don't, you actually lose. So I just want to make sure that anyone's listening like this is a huge value guy. If you do it right, it'll actually help you sell better too.

SPEAKER_01:

Hello, hello, hello, and welcome to the Million Dollar Electrician Podcast, where we help home service pros like you supercharge your business and spark up those sales.

SPEAKER_00:

I'm Joseph Lucani, and together with my co-host Clay New Meyer, we're here to share the secrets that have helped electricians sell over a million dollars from a single service band.

SPEAKER_01:

Now it's time for sales. It's time for scale. It's time to become a million-dollar electrician.

SPEAKER_02:

Hello, hello, hello. Welcome back, guys, to another Duramax Power Podcast. Million Dollar Electrician, super pumped to be here. Happy New Year again. Welcome to 2026. Joseph, how are you doing today, my brother?

SPEAKER_00:

I am feeling absolutely amazing. You know, honestly, this new year has a lot. We have a lot in store for it. But, you know, personally, I set some really big goals. I'm really, really excited to start doing it. And honestly, it just feels like day one hitting the ground. So let's just get it.

SPEAKER_02:

Speaking of hitting the ground, just before the show, you were telling me someone just door to doored you. Yeah.

SPEAKER_00:

Oh, yeah. I and actually, this is a great advertisement. But I actually wasn't there for it. My wife put the thing on the thing, but she pretty much said that there was a person who just came by and put something in the mail. And what happened was it was a blank, looks like a homemade thing, right? But it the catchphrase was save yourself from the ladder. And it's a gutter cleaning service. Now, specifically, the cool thing about this is I have it on my list for 2026 to install gutter guards for my house because I've got a 40-foot roof that I don't want to get there and reach. It's crazy tall. I don't want to risk itself. So the cool thing was the tagline was save yourself from the ladder, which is the number one reason why I don't want to do it. And he literally had a picture of like a bunch of gross shit coming out of the gutter in his hand, and it literally says, Text this number, text gutter to this number. And the cool thing that's I think really awesome about it is I consider myself a premium buyer in that I like buying things that are turnkey solutions. So by his door-to-door basic two cent marketing that he just produced with a business card and one blank piece of paper, I'm certain that as long as he doesn't f up the sale or f up his process or make me think that I'm not he's not a good guy, I'm gonna end up investing with this particular person.

SPEAKER_02:

I love that, man. So black and white for us. Are you gonna hire them if they don't mess this up?

SPEAKER_00:

Yeah. I mean, literally, that's the best thing about it. I need someone to do it. I was gonna do the research for the person. It's on my 2026 goals. I know I already need to have it anyway. And he spoke specifically to the emotional reason why I want it.

SPEAKER_02:

It sounds great. We're kicking this off well then. This is one of my favorite phrases. You just cheated up with that. Market the problem you want to solve, and the sale is yours to mess up. All they're gonna do is fall short on service, and Joe will undoubtedly go somewhere else. However, they spoke to a specific challenge, a pain point they know people have, which is don't go up the ladder. It's dangerous. They look at a 40-foot roof and go, Oh, there's an opportunity. You look at it and go, There's a ladder I don't want to climb. 100%. Nailed it. Great start to the show, man. Super pumped. If you guys are here, you already know from the title of this one. We're gonna help you be profitable in 2026. We probably don't talk about profit enough on this podcast. Today's the day, you know, the numbers they get thick, it can bore, it can bore you, uh, overwhelm you, especially when you're listening. But uh, hey, we just passed 1,050 subscribers on YouTube. Wow. That's a small little shoulder brush there, but we're proud of it nonetheless, which means more people are actually watching this than ever before. And just to honor that, I got a whiteboard here beside me today. So I'm even going to pull out a little bit of a whiteboard and we're gonna review a bit of just a touch, touch base on what's coming up in this workshop. Uh, January 7th, that's already passed at the time you're seeing this. Don't worry, there's a replay available. And I want you to know that uh we've got a brand new 2026 simple pricing workbook for your service department that's actually pre-populated with three different levels of electricians, noob, hustler, or all-star, just meaning where you are on your million-dollar journey, so that a lot of the numbers you'll see are already templated for people your size, just based on a little bit of information that you give us. So you can grab that too. I'm gonna tell you how later in the show. Joe, you ready to get into this?

SPEAKER_00:

I'm so pumped because profit is one of those things that people consider almost like a mystery where we know we need it, we don't know how to get there, or what's appropriate, or what's not, or what's a good value. So honestly, I'm just just as pumped to get into it as you are.

SPEAKER_02:

Yeah, I'm gonna tie into that and say, I think too many people rely on their accountant for this side of the equation. And those same people, quite often, at least a good percentage that we work with in Sly Pro and on the app here in our community, would say that they don't really trust their accountant to do the right thing by them or to instigate, to be the aggressor, to be the person to bring it up and actually outbound us and tell us what needs to happen to be profitable, to get more revenue, to be more uh tax compliant, but also to drive tax savings. Joe, have you ever felt that way about your own accountant relationships?

SPEAKER_00:

Yeah, I uh very much so. So in my previous business, one of the things that we would technically argue about with my partner and I is what kind of accountants we would hire. And we had different views on what a good accountant qualifications should be. Um, and there was one particular situation where we had had someone where we wanted him on retainer. We're like, we're gonna work with you, you're gonna be our guy, and as a result, you're gonna go through our books and you're gonna find things and you're gonna find ways at different levers that we can become more successful and profitable. And we were paying a monthly stipend to have him do that. And we audited after a while. And we're like, right now we're paying X, but we're not really seeing a return because he's not finding anything. And when we questioned him on it, we're like, so what are you actually doing for this amount? He's like, Well, I'm your accountant. It's like, okay, no, we get that, but what are you doing? He's like, Well, I'm just your accountant on standby. It's like, why are we paying you then? Well, because I need the money. And it was like, oh like no. Awkward, awkward indeed. Yeah. So he ended up disappearing pretty quickly. But yeah, yeah, I've had uncomfortable uh accountant situations.

SPEAKER_02:

And while a lot of our followers, listeners, viewers now probably relate somewhat to that, maybe their accountant hasn't been so forward even, but you still don't feel you got someone who's got your back. Again, how often is your accountant calling you? How often is your accountant reaching out to you? Because most accountants, and guys don't realize this, or just like most electricians, carpenters, gutter cleaners, or anyone else, um, you know, any of these trades, you become a specialist in that trade, you kind of perfect your art, but you tend to maybe not focus as much on customer service training. Maybe you don't focus as much on the communication aspect as we should. And that's kind of the stuff that we lean into here. And so by the time you learn these skills, uh it seems to be a common theme, Joe, that guys just want an accountant to treat them like they're treating their customers.

SPEAKER_00:

I'm right there with you. And I think that's what separates premium buyers and what separates us from the group. Because when you start offering premium service to all of your clients and you start delivering that service, you start to notice its absence in everything that you want in other people. So, as an example, I've I really believe in doing the premium service model, but when I want to hire someone, it's like a huge void. I remember the Arbora situation last year where it was like I went through multiple, couldn't find the right guy. I was like, shut up and take my money kind of stuff.

SPEAKER_02:

Or even did a podcast about it.

SPEAKER_00:

Yeah, you know, so that's why I'm bringing it up. So there's so many things where I want to get someone to treat me the way I'm want to treat my own customers, but it's so rare that when you find one, the price isn't even the factor anymore. It's like I want to work with someone who's gonna treat me like I've treated them.

SPEAKER_02:

Yep, absolutely. You nailed it on the head. And so we're always looking for those service providers, and I want you guys to find them. I personally believe in, especially once you get closer to your seven-figure journey and beyond, having uh regular touches with your accountant, even if there's not a lot there, just to say yes, everything's good. Yes, let me know we're good, yes, how can we improve this? And quarterly is a great moderation of those touches, at least, at least semi-annually. So every six months, I'd want you to actually talk to your accountants. And in time, as you grow, you'll have a fractional CFO, someone come in-house and help with finance and help with guides, uh, leadership decisions on the financial end. But let's wash away from that here for a moment and dive into what we intended to today. Our goal is for you to rely less on your accountant and more on your newfound intuition and skill sets in managing your business. Because while we don't deal with kind of post-taxes, we deal with EBITDA. So earnings before interest, taxes, depreciation, and amortization. I love tax accountants. For everything they do after, we could still manage our business before the tax, before that position. And with their insights, we could do even better. Let's talk about how to manage that before scene. So down. So, Joe, I'm gonna take us right back here for a moment and say that I think a lot of people think that we just help with the sales and the service side and getting your revenue up, but they don't realize the profit side that we help with too. And what actually happens when someone first comes into our sphere of influence is they grab the tool like we're offering today, our simple service rate tool. And that pricing exercise where you're setting up your rate actually requires you to go through the expenses that you're already enduring, the people you're already paying, the software stack that you're already paying for, uh the burdens on the labor that you may be paying for, and the accountants themselves that you pay for, and all that stuff rolled up into it. Not to mention marketing as well, of course. We can't forget that. With all that stuff rolled in there, our pricing tool helps you account for it properly and project how much work are we actually going to do this year? And it does so really quite easily, along with a guide that explains why at every step of the way. And because we're able to do that, you're able to have entire clarity on what your pricing should be, but also what your profit should be.

SPEAKER_00:

You know, something that really just struck me like a bolt of lightning was as we go through this, people don't know what they need to charge in order to be profitable. And because they don't take these steps of going through these tools and really putting their numbers in, that's when it can be really difficult to stay true to your offer. Because I'm sure there's an electrician listening to this right now saying, well, yeah, I know I got to charge 300 an hour, but people don't buy from me at that rate, so I offer less or I try to speed up the clock. I think this particular exercise is so impactful because when you see it in black and white, like these are my numbers, these are really this is everything that comes from my business. I put it into the formulas and it came out with this, and it's in black and white. This is what I have to charge. That actually builds your confidence to then deliver a more uh beneficial presentation where you can stick that offer because you know if you don't, you actually lose. So I just want to make sure that anyone listening, like this is a huge value that if you do it right, it'll actually help you even sell better too.

SPEAKER_02:

Yeah. Yeah, we're gonna tie both those concepts in here. What typically happens as you're saying, Joe, is we realize what we need to charge. And what we realize is that that number is a lot higher than we have been charging. Based on gut feeling, I haven't done a formal measurement from our data, but we talked to a lot of electricians. I mean, just yesterday, I think Austin was on calls with seven. Uh, on average, about three to five electricians a day since we started, we've been talking to, not to mention the clients and the deeper relationships. And so we're talking about thousands of electricians, thousands of electricians. And the average rate that I would estimate from gut would be$120 an hour. That lines up that the electrician charges. You feel the same way?

SPEAKER_00:

Yeah, no, I remember, and the reason why I say that is when I started off, I was$167, and we were the most expensive in our area by a lot at 167. And a lot of times what we hear from people who come in who are just starting off is, you know, I've heard as low as$75 an hour, you know, but usually around the$120 to$160 mark is right like the sweet spot of where people are like, yeah, I feel very comfortable at that rate.

SPEAKER_02:

Yep. I've heard maybe as high as 170, 175 without someone having a formal training or coach behind the scenes that they've taken instruction from. Now, the second part of this, and we never want to throw shade or sand, whatever. It's not about the negativity, but you guys do need to realize most people that have had price training in the past also it comes with them saying, but it really didn't have the why behind it. We didn't understand why we were charging that much. And without the why, how are you gonna feel when you present a price to a customer?

SPEAKER_00:

That's exactly what I was talking about originally. Like, because the customer is gonna give you the price objection and you have to justify why you're charging what you're doing. And if you haven't learned the articulations of how to navigate that, you're stuck saying, Well, this is what I got to charge. Well, why? And when your confidence goes down, the conversion goes down too. But if you know your number and you can present it with confidence, they're less likely to try to haggle you because you're like, no, this is what it is. So I agree with you 100%, Clay.

SPEAKER_02:

So again, a bit of a self-plug here, but if you haven't got this exercise, and you can go below this and find the details to get that one, our SSR simple service rate calculator for 2026. Very fresh, very easy, templated for all your needs. It'll help you with the why. A big part of the why, though, Joe, that we got to get to is there's this slider. And that slider is actually in the projected volume of work that we're gonna do. And on one end of that slider, we should consider that 2,000 hours is a full-time year. Would you agree with that?

SPEAKER_00:

I do, yeah. Because with uh really realistically, we're also gonna be offering out a 50% percentage as well for the efficiencies on it if you're doing service work.

SPEAKER_02:

And that's the slider. That's the one I'm talking about, actually.

SPEAKER_00:

Perfect.

SPEAKER_02:

Yep. So if 2,000 is at the top end and zeros at the bottom end, meaning we're not gonna do any work or one hour of work, of course, then we'd have to charge half a million dollars to a million dollars for that hour. But if we move that slider right into the middle, we find the average service company choosing 50% to start. Meaning we're assuming that half of our service person's time is gonna be driving around, getting materials, getting organized, preparing for jobs, talking to customers, providing the premium level of service that we aim to provide. 100% agree. Make sense so far?

SPEAKER_00:

100% agree.

SPEAKER_02:

Awesome. So at that 50%, what people don't realize though is that's our projection. That's how we look at it and go, we haven't really done this or tracked this before. So let's go with the flock here and say 50% sounds fair. Let's project that. So that means per service technician, I've got a thousand hours that were going to be billable.

SPEAKER_00:

Checks out 100%.

SPEAKER_02:

All right. If your bills were$300,000 for the year, just by this math,$300,000 divided by the thousand, we've got a rate of$300 an hour. For most people, that's just the burdens. I mean, if you think about it, like uh union contractor listening right now, you're probably paying your guys north of$100, uh$100,000 a year just to be an electrician, right? Without any special training. So the$300K can add up pretty quick. What about your salary? What about your business costs and overhead? So it's just important to recognize, I just wanted to put a pin in the ground for you guys and make sure we're all on the same page, that we're gonna be adding all these costs up and then we're gonna divide by the number of billable hours. And there's more on that in the exercise because we're gonna go deeper into now, okay? Let's say our revenue went up, but our profit is struggling, and now we're at the stage of pricing is right, revenue is up, but profit is lower than we want it to be. Follow me?

SPEAKER_00:

Right there with you.

SPEAKER_02:

There's just a few things we can do in this case. There's a few reasons why it may be, and commonly the biggest reason would be volume. Meaning, hey, we had service techs or a service tech. We had enough time to run three to four calls a day, five days a week, but we didn't always have the three to five calls a day. Or we didn't always sell enough or offer enough solutions that we could sufficiently fill the calendar to actually have a thousand hours direct billable. Now we get to take and move from our projections and actually look at the historical data through a period. That period could be a month, a quarter, a year is really good if you can. Look back and say, okay, we did a million, but we've got no profit, which is a common thing. It came up just the other day in a class, right? Uh, for for a new member in the app. So that's some of the things we get to go through in the app, guys. By the way, if you're not an SLE pro member yet, please go to service loopelectrical.com forward slash pro-dash app.com. I already said the dot com. Don't do it, don't dot com again. ServiceLoopelectrical.com forward slash pro dash app will get you there and you can get into the app and be part of those conversations as well. But the point is looking at it historically now, we know where we fell short. So I want to give you a couple numbers that you guys can run with as targets for your service company. Is that okay? Sounds fair. All right. Profit and loss statement goes in this order. We've got revenue up top. That's everything that we've earned. The next items are costs of the goods sold. So if I paid someone to go out and do the job, that's a cost of the goods sold. If I paid uh a commission on that, that's a cost of goods sold. When I paid for material on that, that's a cost of goods sold. So revenue minus cost of goods sold results in gross profitability. That's our first measure of profit. Again, it's in the exercise, but to tell you guys here, I want to see that be at least 50% for you at this period and growing towards 60%. Now, guys, wonder why we do a 50% deposit up front. It's so we can pay for the materials and the labor before we ever schedule the work because we're a 50 to 60% gross profit, which means we're a 50%, a 40 to 50% cost of goods sold. Is that getting too technical or did that make sense, Joe?

SPEAKER_00:

Honestly, it makes a lot of sense. And the reason being is because there are some people right now who are listening who are like, I don't charge a 50% deposit, and they're scratching the head, like, what do I do? And all the whiteboards come out. Uh oh.

SPEAKER_02:

The whiteboard just came out. We're gonna try and position this in a way that you guys can see it without me in the way. There we go. We got us both. I love it. Okay. I love it. So we talked about revenue. If you guys aren't on YouTube watching this, you can jump on YouTube, hit subscribe. There's gonna be more of this. The more you guys watch, the more we can show on the video, right? We got revenue up top. That's everything we collected. In other words, that's a hundred percent of all revenue, right? It's a hundred percent. Or cost of good. Sold based on what I just said, we want to be between 40 and 50 percent of that total revenue. And what that leaves us is a gross profit. And really, what we need to be here, guys, is 50 to 60 percent. You'll see some people or hear some people say, hey, you want to be at 60%? Of course, you want this to be higher. We'll go deeper on that and how to increase it. But at least as a survivor rate, just starting, you got your pricing right, your service orgs in development. If you're north of 50, we're on the right track. Any questions on that, Joe?

SPEAKER_00:

No, as of right now, the thing that stands out is I fully follow the math. The one glaring thing that just keeps popping in my head is people offering more options, you know, saying to self, what do I do in those moments? How do I come more profitable? Some running less calls could be a thing if you're selling more premium options on the ones you do sell.

SPEAKER_02:

Yep, 100%. So we're gonna go way down below the line and say, well, after gross profit, there's just overhead. And we want your overhead to be right around that 30% or less. And what that's gonna leave is a net profit, ebita, as we talked about earlier, of 20%. That's what we want left in your bank, in your accounts at the end of making your million bucks, we want$200,000. But there's a lot that happens in here, Joe, and especially with a small business, we kind of can uh end up with a couple sets of books. And what I mean by that is there's the business expense, and then there's the business owner's expenses running through the business for tax reasons. That makes sense.

SPEAKER_00:

Yeah, it's really like I think um there was a movie, the the producers, where it was like, yeah, two books. One, show to the IRS, two, never show to the IRS. It's like, which one are we taking? So I'm right, I understand what you mean, man.

SPEAKER_02:

Love that. So let's get in then, as promised, guys, three ways that we can improve our gross profit. Because this is one of the most important pieces. If we get gross profit right, all we have to do is have control down here and find what other people are doing to control down there to have the best possible outcome. Make sense? Yep. So one, two, and three, Joe. Three different ways to increase gross profitability. Are you ready for number one? Go for it. As per our pricing exercise, which again, you're gonna be able to grab down below this video. We need to increase price. It's going off the board, but increase price. The best thing about this is if you're already profitable, every bit of increase of price has some magic to it, Joe. Let's run through it quick. If we increased our price from$350 to$375, does it cost us more to do the work because of that? Not at all. Oh wow. So that percentage of price increase goes past cogs and rate to gross profit. Did we have additional overhead because we increased the price?

SPEAKER_03:

Nope.

SPEAKER_02:

Not at all. So you notice how the increase in price, assuming we're already profitable, comes right to your bottom line. Incredible superpower. Why don't people increase price more often? Well, you're worried that you might lose clients.

SPEAKER_00:

Yeah, maybe they don't feel confident in selling at a certain price point. You know, that often happens when someone's untrained on what they need to charge.

SPEAKER_02:

Most people that are having that trouble, it's not substantiated by math. In fact, we substantiate it by math that you can do more, serve fewer, even for a few clients, you would lose, and still be more profitable. And most guys, once they see that, they go, okay, I'll get over it. Because it's an in-the-head problem. It's price shocked.

SPEAKER_00:

Make sense? It does. Internal price shock can be a limiting factor for a lot of people. And if they don't believe that they're worth the amount, it becomes that much harder to communicate.

SPEAKER_02:

Now we get to number two. Plus, plus, plus I'm gonna do instead of increase, so you guys can actually read this. And it was Joe's comment just moments ago. Increase sales. Because if we do more work at a single home, Joe, what happens to gross profit? Does it go up or down?

SPEAKER_00:

Substantially goes up because it requires less leads, less footwork, less traffic, less management. The techs are able to do a lot in a less period of time with less risk.

SPEAKER_02:

And I've been hoarding the mic today, so I'm just gonna kick this one off to you. Guys, as you know, we don't plan these, we just rip through it together. We're just having a good old conversation, but we've been through this so many times. Joe, what's a few big ways I could increase sales?

SPEAKER_00:

Oh, oh my God. So it depends on the call you're going to. But realistically, I'm gonna circle back to what we said at the beginning of the call, which was find the emotional concern, solve that, and the sale is yours to lose. Too often, an electrician will go into a call and they'll try to solve the technical problem without understanding why the customer wants the problem solved. So, sake of argument, customer could say, you know what, I've got to trip GFI. Sure, you could go in and just change it. You could also go higher options and localize them so they don't trip the whole countertop. But why don't you go one step further and find the real reason they don't want it is because they're worried about the fridge losing power. So installing a Levitant Smart or an automated system, like an audible alarm system that lets them know in real time that they should come downstairs or call the neighbor to plug back in the fridge and reset it could be the emotional lever that you're solving. And they'll not only pay you more for it, but they'll see you as a trustworthy person to come back to. And that's just the tip of the iceberg, man.

unknown:

Yeah.

SPEAKER_02:

Yeah. Lean into the options. Um, being able to provide more for people. I I've said this often, I've never had an electrician miss it. If we offer more on average, they will buy more. Blank on average.

SPEAKER_00:

They're gonna buy more on average because as a whole, even the comparison of it. So you offer a range of choices. Uh, let's say you're you're only offering one choice at 165, which is your previous rate, even if you didn't increase price. But then you have a range of options where that one is 10 times what the bottom one was. Even just through comparison, the bottom option, which they normally would have complained at, is a drop in the bucket compared to what was previously there. So just by offering more solutions, you actually make your prices look better without changing anything.

SPEAKER_02:

I agree. I agree. For the interest of this podcast, we're gonna get through this last piece and do a nice sign-off for you guys. If you want more of this information, if you want to go deeper with us, I actually did this in a webinar, um, about to anyway, January 7th, the time of this recording that's coming up. But the replay is gonna be available to you guys too. So no matter when you're hearing this, uh you'll have access notes below this video as well to how to access that on YouTube, of course. The final one is actually a reduction. We can reduce something, we can reduce the cost of goods sold. A couple ways just to pull out of a hat. What if we traveled less?

SPEAKER_00:

Less fuel, less maintenance, less repairs, less time.

SPEAKER_02:

Did you know that uh who what's the shipping company? Is it UPS doesn't do left turns? They reprogrammed their whole GPS to avoid left turns. Have you ever heard that?

SPEAKER_00:

No, but please do tell.

SPEAKER_02:

Because they found they know from insurance companies' data that most accidents happen either backing out of a parking stall or doing left turns because you have to cross oncoming traffic. So they have less accidents, which means less insurance claims, which means less downtime. There's actually left turns are often longer and take longer to initiate. So you have less fuel, less wear and tear on the tires and steering connections, drivetrain. And so overall, they actually save time by programming a GPS to do right turns as often as possible. And you could do the same in your business as an electrician.

SPEAKER_00:

The thing I'm hearing here is the math will set you free. You know, people could embellish the truth, they could expand on things. The numbers may not be accurate in their opinion, but when you put them in and you actually trust the data, and it's in black and white, numbers won't lie to you unless you lie about your numbers.

SPEAKER_02:

I can't remember the exact amount, but Guillermo, who we love talking about, loved Guillermo on the last podcast he did with us in season two. We talked about the second insight and we talked about efficiencies gained, and it's why Guillermo had just come back from a ride-along that day in person, guys. These things are still alive. There's still a ton of value. Reducing cost of goods sold is a great, great uh reason to go on a ride along because you'll learn what isn't stocked on these vans that should be by your guy bitching about it. You'll learn, hey, how are they packing out materials in and out of the house? And is there anything I could do to reduce trips back and forth to the van and increase efficiency and installation?

SPEAKER_00:

You know how you're saying with the guys complaining about there's certain things in the van? You doing the ride-alone actually also solves one major inventory problem, which can actually directly affect your cost of goods sold, in that a lot of times a technician will hoard material because they don't want to have to go back to the shop to get it, which as a result, you believe you're selling more of. And as a result from that, you then buy more inventory than you need. But if you do the ride along and then can actually monitor what's actually in their van, you can see what they're selling, what they're not, and why suddenly now they have three to seven surge protectors when on average they're only moving two per day.

SPEAKER_02:

Makes sense. Makes perfect sense. And there's a number of other things. And we've talked about the good neighbor program. How many times? Go and knock on the neighbor's door. Someone did that to you today and they made a sale. So long as they don't mess it up. What we forget is how opportune it is that we're already there, that we already have a because frame, and we have uh basically a referral because we're working at John's house right now. And John's having a great experience. We know how hard it is to find an electrician to provide a great experience. So, what would happen if all your clients lived on the same block? Do you think your cost of goods sold would go up or down, Joe?

SPEAKER_00:

You'd go way down. I'd take the shoe ladder express every single day.

SPEAKER_02:

Now we're talking about a way for an electrician in their service business to be 80% plus gross profit margins because you could literally ride a tricycle around. Now that sounds like a joke to some, but the real players know that that's as serious as we could be. And that's a real motive to be a hyper local hero, and you can do this. In fact, we know some top players that are approaching, you know, multiple seven figures, eight-figure business foundations that are doing this exact kind of thing, guerrilla marketing efforts around every above average ticket because you know there's more above average tickets in that neighborhood. Oh my gosh. We could go on. But if you guys want to get this, we got about 30 seconds to finish up here, and we're out of time on a 30-minute mark on this podcast. If you guys want more of this, again, go below on YouTube here where you're seeing the podcast. I hope to have a link there as well. But ultimately, you can grab our simple service pricing guide for 2026. You can grab either access to the webinar or replay of it, depending when you see this. And ask us any questions, leave any comments, please give us a sub on YouTube. It'll help you and it'll help us uh plan to continue to increase the value. Joe, is there anything we missed today, or do you think we delivered on our promise to increase their profitability for 2026?

SPEAKER_00:

I think we did a great job doing that, and I'm very proud of it. I would say the last thing that we'd want to touch on is when people talk about how to increase their sales, it's not as scary as you think. I don't want to speak to the electrician who may be a little curious or concerned, like I don't know how to raise it. You can do an incredibly profitable business while also maintaining your ethics, your morals, and your principles of operating a good business. You just need to know how. And I'd be truly honored to be the person to help you do that.

SPEAKER_02:

Likewise, man. Super pumped to be here. Let's make 2026 your best year yet. We're gonna do everything we can with this podcast, with the app, and all of our resources to make sure that's true for you too, guys. Follow along, share with a friend, give us a sub. We'll talk to you soon. Bye for now.

SPEAKER_00:

Take care, be blessed, friends.

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Clay Neumeyer

Host
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Joseph Lucanie

Co-host