HVAC Business Startup Guide: Insider Tips Revealed

HVAC GUY
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In This live show I'm talking with Jake Jackowski - you might know hime as Jake In A Blue Collar - about his recent decision to start his own business, what he had to go through, the fears, financial worries, licensing, and basically how he did it!
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I have to release
the show starts
in 10, 9, 8, 7, 6, 5.
Guys, if y'all
are just tuning in, and now
it says in broadcast,
I know we're live.
I'm watching it right here on my iPad.
We actually did.
We did this about two or three minutes ago.
This is our fifth time now.
Yeah.
Thinking that we were going live and I don't know, maybe it's.
This senior citizen stuff coming on to me now.
I'm getting a little bit older.
I thought I had pushed a button.
Actually, I did, and I was trying to do this on Instagram,
and maybe I messed up.
So we are live.
Once again, this is Jake.
Y'all know him as Jake in a blue collar, and I
was just telling him how much I liked his content because it's real.
It's the real deal.
It is
Yes, we are live now. I'm starting to see comments. Do you see them?
Okay. No, I don't see any comments.
You don't?
I don't know how to do that. Is it on my end that I gotta do that?
I do not know. Are you on your iPad or a computer?
Yeah, I'm on my iPad. Oh, there we go. Oh, they're right there.
There we go. Yes.
All right.
Yeah, yeah, I try to mimic the content like Mike Grove,
Dirty Jobs, and we were discussing
that, and that was my aim for three years ago
when I started content, yeah.
Yeah, Mike Rose is a great guy, Mike, he is,
and I will say once again, the reason for
today's show is to talk about the mindset of opening a business
and actually doing it
because you're going through it right now.
And yeah, yeah.
The mindset, the mindset was as soon as I got my mechanicals licensing,
all of all of what my boss has, I really my my head changed.
It was just a different air. Because my boss,
he holds all the licensing, but he's selling to his son in law.
And his son in law was going to, you know,
kind of piggyback off my license. And you know, yeah.
Yeah, without saying, you know, too much, you know, but like,
I just started feeling like the redheaded stepchild in there.
And, you know, I'm like, man, something's got to change.
Then it was funny, because I started looking at vans.
I'm like, man, I really want a van. And then my birthday rolled around.
See, I had started saving my pennies up.
My buddy, who lives four hours away, he's a contractor.
He, uh...
He's like, hey, I got a job for you.
You want to do it?
You know, just a little remodel, throw a furnace in there, AC.
And I'm just like, man, this is so crazy how
this is all happening right now.
I'm like heading up to get a van and then just another hour drive,
I'll be there to
see him, you know, and it just worked out that way.
And then made a little extra cash, you know,
realized where the, you know, there's a lot
of money, you know, in it.
There is.
For somebody who's honest and does good work,
you should never want for anything to do.
And I say that.
You should never want.
Doing a good job and being honest isn't always enough.
You kind of got to get your name out there sometimes.
And so it's a little bit scary to tell you the truth
because when I did it,
I didn't have any customers.
I didn't have any kind of database or anything like that.
I had no advertisements.
I was not ready.
I didn't have a vehicle.
I was basically let go because I had a license
and they saw me as a threat.
That's wild.
That's wild.
I would never, you know.
Um, and honestly, I was,
I was really just trying to better myself and better my opportunities.
But when that happened, I had to think, do I look for another job?
Is this going to happen to me again?
Or do I just jump in and open a business?
And thankfully my wife had a good job.
She was able to help out and it worked out.
Yeah.
Worked out for the best.
And I know how scary it is because like
that first year I didn't hardly pay myself.
Everything I made went right back into the business.
Yep. I can see that definitely.
I have saved up a lot of money just from the social medias,
and so everything I have is paid for. So I'm trying
to do it all right where I'm not paying more than I have to.
I mean, it's super scary because my wife don't work.
She hasn't worked since we started having kids seven years ago.
So, I mean, this is it. You know, I got to make this happen.
Thank you, Tim.
Other than that, I'd have to start selling feet pics.
I don't know, you know.
Dude.
I mean, it's got, that's just, it's,
you wake up every day and you got to hustle.
You got to, you know.
You got to do it.
You got to do it.
You got to do it.
Let's do it.
I'm fortunate enough
to be at the point where I can slow it down a little bit.
I don't feel like I have to work till nine
o'clock at night every night.
In the beginning, though, it is 24 hours.
Somebody calls you, you go.
I've been there.
I know what it's like.
Like, and, um...
Yeah.
Honestly, the mindset that gets you there,
for me, before I opened the business,
I was not very stable.
I got to a point in my life
where my life kind of stabilized out
and everything started just kind of clicking together.
And I began to dream about bigger things.
I was working at another company where I'm billing out $4,000
at least a day.
And we're talking about 20-something years ago.
Yeah, yeah, yeah.
And I'm selling all these systems for them.
I mean, if I'm going to eight calls a day or six calls a day,
I would sell a new system like every other day.
And I got to the point where I'm like,
I would really like to be able to do this for myself.
And that started the process of going after my state license.
I mean, it's a long process.
And unlike with you, getting your certifications and stuff like that,
it takes time and studying.
This is a year in, man.
I mean, I've been working for, I mean,
obviously I've been in the industry for like 12 years.
But for this goal to start finally coming to fruition is,
I mean, this is a year of progress, you know.
Just failing test after test, retaking the test,
studying more, paying more money,
driving there to take the test.
You know, this is all,
that's a six-month process for me it was, you know,
because there were so many different tests I had to pass.
Do you have to do like a master gas license and all that too?
Is there a certain certification for plumbing?
Because I know you do plumbing too.
I do.
I have a boiler license, yes.
And that was a difficult one.
I have the number two, which is your basic boiler equipment,
you know, that has your gas, your duct work in it, and then I got
my hydronic process piping, cooling piping, service, you know,
certified license for heating and cooling, so, yeah, you know.
How is it?
Now, when you said you had to drive to go take the test,
how far did you have to drive?
That was an hour.
That was about an hour.
Because, you know, Michigan State Capital is Lansing,
so that's where the test was.
So, a little outside of Lansing.
So, about an hour drive from there.
Okay.
It wasn't too bad.
Now, when I paid to take the test, it was like a two-hour drive.
Yeah, a two-hour drive round trip, you know,
and then you're sitting there for that test.
Yeah.
And, you know, did you know when you took,
you know, you said you took tests several times.
How many times did you actually take different tests?
So, the first hard one was, you know,
pretty much to be a mechanical contractor.
That's 150 in 180 minutes for $100 per.
And I failed the first time by like 19.
And then I came back a week later.
I mean, I was just reading these books.
There's three books we can have.
I was reading front to back.
The manual D, the gas code, and the mechanical code.
And then I came back the second time, and I failed it by one point.
So then I had to go do it again,
pay another $100, drive back out there.
And I think I passed that pretty well after that.
And then the process piping, I had to go take back twice.
The limited, I did in one day.
There are two tests.
I passed the limited service.
I passed those line colors.
Then the boiler one.
So the main one was 150 questions, 180 minutes.
This boiler one was 50 questions for 180 minutes.
I'm like, that's weird.
You know, I got all this time in the world.
Okay.
Yeah, so I'm like, well, this, you know,
I failed that test by like 20 questions the first time.
It was so hard.
And then I went back, studied up, studied up.
Failed again and then I went back the third time
and I got exactly the amount I needed to pass.
It's a hard test, I mean.
I mean, yeah.
In Georgia that's all included, basically, in one license. For example,
You're getting so different.
in Georgia you have a restricted and a non-restricted.
A restricted is basically
five tons and under.
Non-restricted is everything, including boilers.
So I knew I probably wasn't going to be doing
a lot of boilers and stuff like that,
but I still went for the non-restricted.
And there were only like maybe two questions on boilers,
the whole thing.
And it was like an open book test.
You could take your code books with you.
Yeah, yep, yep.
So basically the test is how good are you at looking up the codes?
Well, I had studied and studied.
So the boiler questions I didn't have a problem with.
The only question I had a problem with was a manual J question,
and it was, the correct answer was in between one
of the multiple four options, and I ended up having to guess,
but still, it was like 100 questions, you got to get 70%,
and I only have one that I'm worried about, so I felt good.
That's good.
I was kind of celebrating on the way home,
cranking up the radio, and I'm like, man,
I got this.
Oh, hell yeah.
That's a good feeling.
But I tell you what, driving home
after you failed really, really sucks.
It sucks.
Oh, man, you're just sitting there like,
what could I have done differently?
And you're like, I changed a couple of answers.
Maybe that's, you know, yeah, those drives,
you know, failure is a thing that's got to
happen.
Oh, yeah.
I heard.
Really prepared.
I took a class on just, it was a guy
who just gives classes on taking this test.
He prepares you for the manual J.
He has a manual J class that you take.
I drove up there like half, most of the way to Atlanta.
Atlanta is three hours from me.
And took his class.
And then I took, right before the test, I took a more
of a class where he basically just preps you for the test.
Yeah, yeah.
And he encourages you to, like,
if you remember questions when you're done,
share them with him to help him prepare other people for the test.
Yeah, yeah, yeah, yeah.
And so I thought I was really, really ready for this test.
And then I get there and, like, I'm.
75% of the questions out of this 100 questions
were something I had never seen.
I was like, why?
What?
Yeah, man.
It is crazy.
But then it's like, on the flip side, you're like,
all you got to do is pass this test and your life changes.
It does.
It really does.
A lot of people, just going through taking the test,
they fail just doing the initial application
because they don't make it easy for you to apply.
You know, there's...
There's no real information on how you'd get it done.
And if your boss is lucky enough to tell you, that's one thing.
But yeah, there's no book out there of how to do this.
I mean, no good book anyway,
as far as getting your licensing started from...
Nothing to become in something, you know.
It's very difficult.
It is.
I mean, okay, just getting a license,
just filling out the application to take the test.
Finding the applications
and then proving that you've worked all these hours.
And I had to show jobs that I worked
and show their state ID and all that stuff, you know.
I had to prove five years of working for somebody else.
Mm-hmm.
If you had a tech school diploma,
they could cut six months off of that.
And I had all of that.
I had everything ready.
But you got to have three contractors or three engineers sign off
on three jobs each that you were a part of from the ground up.
That was the hard part for me
because people didn't want to help.
Yeah, yeah.
It's, uh...
That's what this industry
is, though.
so many people have gate-kept
everything they've learned
to just die with.
You know?
I mean,
on social media, that's what I'm trying
to change. There's too much
information to hold it, you know?
Here's a direct question for you.
I'll be doing plumbing as well.
I'll be doing boiler work and water heaters,
but I've always said, man, I'm not a dirty plumber.
I'm not getting into those dirt pipes.
I'm still wearing the room, yeah.
I have water lined a whole house, you know, a couple houses,
but the drains I just ain't going to do.
Yeah, but that includes like hydronic heat
in the flooring and stuff like that.
That's all boiler work, yeah, I can do all that, yeah.
We don't see that around here.
Yeah, I mean, some places, you know,
they've got snowmelt up here and all that good stuff.
I mean, yeah, I can work up to a million BTU boiler, so, yeah.
Yeah, I kind of thought they might.
It sounded like that would be something you could do.
You run glycol through it so it never freezes.
But on the flip side, you've got customers that's never replaced
their glycol and it's acidic and it starts to tear up all the little,
you know, seals on everything.
And the next thing you know,
you're like thousands of dollars in fixing this, these leaks.
Mm-hmm.
Glycol's good and bad.
It's needed though up here, that's for sure.
Especially when you live on a lake, you'll freeze up real quick.
I went to a house that had, you know, 20 splits in it
and I just keep putting air to it, find another leak, fix it up.
Go down to the basement again, put more air to it.
It's not holding pressure.
You got to go up there, find another one.
Man.
Well, back to some of the business stuff.
Once you get your license, you and I both know the journey's not over.
You can't just go out and start working.
Oh, no, no, yeah.
You got to get insurance.
In some places, even though you might be working by yourself,
You've got to get workers comp.
You've got to get vehicle insurance.
All right.
By insurance, I'm talking about general liability.
Yep, yep, yep.
If you don't, some places won't give you
a business license like you regularly do.
The town you work in may not give you a business license
if you don't have your general liability is what I'm trying to say.
Yeah, you can't even pull a permit here without it.
Yeah, yep, exactly.
Yeah, there's so many, there's so many different,
so many little things and big things that you just don't, I mean,
yeah, someone gets it in their head, they just want to jump off, yep,
there's so much you got to tie up before that, you know, I mean.
I mean, um, I.
I've told people, get a good accountant.
You know, to help you get started,
and when you file your taxes, they can save you money.
A good lawyer when you're incorporating to help advise you,
a good insurance agent,
all of that makes a difference. It does.
I mean, I'm not saying it'll be a fortune.
Just find somebody who knows what they're doing.
It's personal with you.
You can reach out to and contact on the phone and say,
Hey, maybe some renewals are coming up.
Will you look into it?
If you've got a company that you can't do that with,
you might need to look for somebody else, in my opinion.
Absolutely.
I 100% agree.
Luckily for me, I've got an accountant that's been a family accountant.
My wife's family has a furniture store, so they do quite well.
So I'm just piggybacking off of that account.
All
Well, you know, I kind of did the same thing the first time,
like the insurance agent.
The company that I worked for before I went out, I knew
their insurance agent because we worked on their air conditioning.
right.
So I just went to their office and said,
hey, what's a policy going to cost me?
And I started using them and I had since moved,
but that's kind of how I just because I knew them.
Yeah, and setting up the website, getting the Google going,
getting another work line going, work phone, you know,
with a totally different phone number and just a ton of stuff,
man, you know, ordering, even ordering new uniforms, you know,
because you don't want to come in there looking all grubby
from your last job, you know, and I mean.
If I could write a book down, I ought to.
Well, dude, like me, just share your experience.
I mean, be open about it, and people really appreciate it.
They do.
I do.
Like, just the uniforms.
When I first started out, I went to, like, a uniform company.
You know, they do uniforms, and they offer,
like, a cleaning service and stuff like that.
And I just bought uniforms from them.
Your name tag and the company, you know,
just a regular, like, old school blue collar uniforms.
Yeah.
My employees had on with their, with their name tags and all that.
Just little stuff like that makes you look professional.
It doesn't make you, it makes you, I mean,
if you look like you're going to cost 50 bucks,
they're going to expect to pay 50 bucks, you know.
So, if you look professional and.
Even the software you use to present the bills
and estimates and stuff makes a difference.
It all does.
Yes, yes.
Luckily for me, I got hooked up with Jobber,
and we're making content.
Well, let me ask you a question.
A free plug for Jobber for you here, but how do you like Jobber?
Does it make doing the estimates
and does it do inventory and stuff like that for you
and help you with your schedule and stuff too?
I'm still trying to navigate through it,
but I did send out two proposals
and the process of setting that proposal up was super easy.
Sending it to the customer, seeing that he actually saw it.
You know, where he actually has to open it.
And that was a neat feature
because you could be wondering if they even got the proposal.
Yes.
Will it follow?
Me and my wife are going to play with it tonight
because I do have a call tomorrow morning.
I've got to take the D-scale.
And I want to make sure I'm, like,
know that thing to a T to where she puts it on the board, I pick it up.
But I still have, you know, I just loaded it last week.
D-scale, what are you talking about?
A D scale, a tankless D scale.
Oh.
So where I'm at, the water is very hard, especially well water.
And it will, if you got a tankless water heater,
that scale will build up in the water heater
and you'll be buying a water heater every five years.
So you got to get this descaling done, you know.
You just run a pump through it with solution
and check the interiors and pretty much just
talk to the customer, you know.
Yeah.
You know, through my experience over the years, I've been, you know,
I set up all kinds of like little banners and stuff and everything.
Here's one of them. I have found through my experience over the years
that if you inform your customers very well on their options
and let them know exactly what's going on, they appreciate it.
They do.
Like, for example, if you just go in there and say,
hey, I got to go change a TXV.
This is how much it's going to cost.
You know what I mean?
You might be right.
But if you tell them, hey, this is a metering device
and it's not letting the refrigerant flow like it's supposed to.
And that's why it's not working.
I got to replace this and I got to do all this stuff to do it.
You know, that goes over a little better than just, hey, it's broke.
I need to fix it.
It'll be nicer, too, because at a big company, you're trying
to hit commission goals and try to be fast so you can get money,
and you kind of start losing that sense of customer hospitality.
You're just like, this is what you need,
and now this will be a different pace for me.
You know, whereas...
Half the reason I'm doing this is because, man,
I would just be burying myself till, you know, seven,
eight o'clock at night some days, just hammering,
you know, 16 calls in a day and just kill my body.
And then I'm like, man, I'd rather kill my body for me and my family.
You may have already experienced this, but I'm going to tell you
the first time you get paid what you're really worth.
Instead of an hourly wage or maybe with a little bit of commission
or something, the first time it happened to me, I think I changed
a compressor, like a great big old five-ton compressor.
And instead of making, I don't know,
I was probably making like 30 an hour, maybe 20 an hour or something.
I don't even remember.
Instead of making an hourly wage, you know,
I'm getting thousands of dollars for a compressor
and it felt really good to get paid for that.
For my experience and for my knowledge
and not just as an employee, it feels good.
Oh, yeah, man.
Like I said, when I did that remodel,
I saw, man, I just worked 30 hours.
You know, I put two 13-hour days
in and a couple hours that next, the third day.
But I made literally what I would have made in three weeks.
Yep.
You know, and it was just, yeah, definite mind shock.
But, yeah.
You know, I'm going to tell you, like, just doing
a regular split system change-out, a furnace, I've seen you do them.
Now, when you do them, what you're earning is not going to be hundreds,
if that much, before, but thousands.
Yeah.
It makes a difference.
It does.
It makes a difference.
And part of me, sometimes, especially during the summer, I'm so busy.
I don't have time to spend six to eight hours doing a furnace
or an air conditioner or something.
And I have to pay somebody to help me do it.
Yeah.
So I'm losing a little bit of that profit.
Not a lot, but I'm still paying the guys well
because they do a good job.
But, you know, I still envy that thousand dollars that I'm spending.
To have somebody help me.
Yeah, yeah.
Because I'm going to be a grinder, man.
We're going ******* balls deep, man.
We're grinding.
Dude, do everything yourself that you can until you just can't.
Yeah, yeah.
Try to do everything yourself.
Because the day when you hire somebody or something,
the first time you're paying this person to sit around the shop and...
Yeah.
You don't like it,
so do everything until you just got to have somebody.
Yeah, you know, we'll see where it goes.
I, I, I, I.
Being the specialized man in my area,
I would just like to just be that guy,
and I'm not going to take any of the ---- work,
hopefully, you know, or have to need to.
That's my goal.
Just, you know, I had somebody tell me early on,
I kind of didn't take it seriously.
What they told me was keep it small,
keep your business small.
And I thought the route to go was, excuse me,
grow the business, add employees,
give me an install crew, a dispatcher,
and just keep getting bigger and bigger and bigger.
And yes, for some people that works.
Yes, for some people that's a really good option,
that's their retirement plan.
But for me, I had trouble attracting
Um, good employees.
I had trouble keeping good employees when I had them.
I just, I just had so many difficulties with that.
Uh, I mean, as many employees as I had,
I never made more money than I do when I work
by myself.
Eventually you get to that point.
I have a friend here that runs an HVAC business
and he said he didn't get to that point where
he had like 10 or 15 employees.
Damn.
So yeah.
That's a lot.
That's a lot of stress there.
So he didn't start hiring somebody until he
was pulling billing out maybe $400,000 or $500,000 a year.
Then he started adding employees, and of course, his billing out,
he pursued it, trying to keep those people busy.
And it took him 10 to 15 employees before he
was bringing home the same amount of money.
Yeah, man.
Yeah, I have seen those comments, you know, because I said what I make
in my videos and, you know, $75,000 is one thing,
but when you have to make $75,000 in commission, that's not guaranteed.
That's scary work, you know, and you just, that's, you're just
constantly grinding every day and I'd rather do that for myself.
I'm, I completely agree. I completely agree. If, if somebody
Is able to take that step for themselves.
I wholeheartedly recommend it.
Not everybody has,
not everybody wants to do that.
Yeah.
A lot of people just want to be an employee and,
and you know,
that's,
that's fine too.
I just know I would have never been content if I sat there,
you know,
death bed,
just been a tech for somebody for 40 years and gave my body and life to
them.
And then I'm sitting there like,
man,
I really wish I would have did this.
Or at least tried this.
Yeah, I don't want to live like that.
This is me trying to change the narrative, you know.
I got a good friend here in the Albany area
that has been perfectly content working for somebody else.
And he left one job and became like a service manager
at a much larger company
and was content to just, you know, work out his career there.
But now he's like 40 years old, and lo and behold,
he's got another child on the way.
And now he's thinking possibly about starting his own business,
and he's got the skill set.
He's been running half this other business for years now.
Yeah, yeah.
That's about where I got, man.
You know, I'm sitting there, especially on the weekends,
I'll take the call, I'll set the call up,
get the call in the program, go to the call, fix the call.
Build a call, check the pricing on the part,
build a call, satisfy the customer, and head home.
So it's like, other than figuring out the markup
and doing the back-end stuff,
like my wife is taking care of the insurance,
the website, and doing all that other stuff.
Oh.
Like, you know,
Doing it start to finish is one thing,
and I've been doing that for 10 years.
That's how long I've been with this company here,
and it's been service day one.
Again, not having 16 calls lined up
for me a day is going to feel weird.
I'm going to have to shake that off.
Okay, well, I'm going to tell you something.
This is something I had to, I'm still having to relearn.
Here I am 15 years later.
You need to re-gear when you have the time, spend more time on the job,
and try to be more thorough and detailed.
That's an opportunity to, you know, just be more thorough.
You don't have to hurry, because you've got five more calls,
and it's already 4.30 in the afternoon.
Yep.
And so you kind of got, you have to train yourself to slow down.
I know the only problem was the blower motor, but, you know,
while I'm here, let's check the capacitor on the condenser.
I mean, just little stuff like that,
just being a little more thorough, taking your time, because you can.
Yes, yes.
All
That's one thing I look forward to,
spending more time with the customer,
building that relation to where they can tell 10 more people
instead of 20 about how fast I went.
right.
Yeah, he came here and billed me $300 in 15 minutes.
I don't want that.
Not at all.
All
Like my only negative Google review
is a guy that said he fixed it in 15
minutes, but charged me for an hour.
Yeah.
right.
That's the only negative one I've got. And I'm like, well, dude,
I fixed it. Didn't I?
Thank you all.
You got to change the way you think. Did we lose you, Jake?
Hold on a second. He might come back on.
You do need to change the way you think if you have the extra time.
Jake, do come back if you can or text me. Text me.
Fixed is fixed. But yeah, if you do have more time,
try to spend more time on the job
and be a little more thorough. This coming from ACIQ.
Referrals are where it's at. Hold on just a second.
My iPad. Jake just sent me a, my iPad died.
Can you send the link? Hold on just a second.
I'm going to copy this. Y'all hold on just a second.
I'm going to try to get Jake back.
Oh, he's back, he's back.
Let me, there you are.
Hold on just a second.
I was just trying to figure out how
to get you back here.
And you're here.
Are you there?
Sorry about that, man.
What happened?
My iPad died.
I had it plugged in, but it must have been too bright,
and it just sunk the battery.
So are you on your phone now?
I'm on my phone, man.
Hopefully that's okay.
That is fine.
Most of the reason people tuned in was to hear about your experience.
I'm glad we got you back.
We were just saying that we need
to spend more time on the job if we can.
If you have the time, try not to be rushed and,
you know, just be thorough.
Just be thorough.
Yeah.
Yeah, that's my goal.
Doing that.
Yeah.
Yeah.
Like when I'm.
You know, I've always been like that.
I mean, as far as posting videos, I want to put the best.
Don't tell me we lost you again.
You know, there you are.
There you go.
Something happened here.
Yeah, I can see you now.
You're back.
We are having just a little bit
of technical difficulty.
Can you hear me, Jake?
Can you hear me?
Yeah, I can hear you.
I lost your voice.
What goes on?
I'll get Kurt back on here.
You're going to try it again.
You're going to try to log on again.
Can you hear me now?
I can hear you we can hear you. Why can't I hear you man?
Hold on a sec. Try to log in again.
I'm gonna send you a message.
I'm gonna take this.
You there Jake?
We're trying guys.
We're trying.
Jake has a good point here.
The other Jake.
Come back when you can, Jake. A lot of people.
Here we go.
When I add you to the scene, you're big.
I'm like, oh, hold it way out here.
Um,
My other buddy, Jake, is asking,
are you going flat rate or are you doing time and materials?
yep.
Oh, I'll be flat rate all day.
I mean, that's the only logical way this will work, you know.
Well, I don't use flat rate.
you.
Is Jobber helping you with flat rate?
Where I'm at, the prices are pretty much locked
in across all the companies around here.
You know, you're pretty much getting
the same price unless someone really undercuts you.
But, I mean, pretty much just putting my time
and material and my hourly rate
or however many hours it would take to do the job all in one.
And that's what they pay.
And then the service charge.
So you're not really doing a markup or anything.
You're using flat rate.
You still have your markup, yeah.
You know, you get your part, you mark it up,
and then I add my hourly rate to that.
That sounds like time and materials.
I mean, I'm not going to have it, like, listed, you know.
Okay, now, that's kind of what I do.
And a lot of people ask, how do you develop your markup?
Because they don't know how much to mark up their parts
when they're doing the same thing.
And I kind of came up with...
What was that?
I said, people ask, how do you develop your markup?
Because they don't know how to markup their parts.
Yes.
Yeah.
So for me, the lower the cost of the part,
the higher the markup.
Like a $5 capacitor might have a high markup,
but a $1,000 compressor, you can't add that
same markup to something that costs that much
because it'll be sky high.
You can't.
Yes.
Yep.
Yep.
So I have a...
I'm in agreement with that.
I do.
I came up with a scale where basically depending
on how much the part cost, there was a set
markup.
I just lost your voice again, man.
Well, we can hear you.
Well, look, guys.
I'll do sign language.
I'll tell you what, Jake.
Why does it do that after like two minutes?
Do you not know?
Let's see if I can.
I still hear you loud and clear, Jake.
Can you hear me?
Hmm, hmm, hmm.
I don't know why this is doing this to me.
I'm sorry, Kurt, man.
Oh, no trouble.
Look, I'll tell you what.
Well, I guess I could log out again one more time, man.
I'll try it again, okay?
I'll be right back.
All right, we'll try again.
We'll try again.
Y'all forgive us.
We are having difficulties.
When we're getting back, I'm probably going to,
we'll probably go ahead and call it a night.
Jake, if you're going
to be big again, there we go.
We can hear you fine, but you apparently can't hear us.
We're good now.
It goes out after, I don't know, that was like five minutes.
It felt like it was weird.
Okay.
So Jake, he uses a 30%.
He's talking about margin.
Margin and markup are two different things.
I think he's talking about maybe installs
when he's talking about margin.
I'm not real sure.
I use a set markup when I do prices, and sometimes I adjust it.
But I do have a...
A scale, depending on the price of the part,
what the markup's going to be.
But look, we're having technical difficulties,
so I'm going to go ahead and say thank you for coming out.
We're going to go ahead and call it a night.
It's already been about 50 minutes.
Yeah, despite all that, I'm sorry, man.
Next time I'll be more prepared.
I thought my iPad was charged, so that's on me.
Okay, well look, I really appreciate you sharing some
of your experience and I look forward to possibly hearing you talk
about it and getting to see you outfit your van because, you know,
I enjoy doing that. It's kind of a fun part of starting a business
is decking out your van the way you want it and I like doing that.
Oh yeah, I'll be having a video coming soon, man. Don't you worry.
all right well thank you man thank you
for coming out i'm going to go ahead
when i push the button to get
in the broadcast it takes about 10 seconds
wait a minute what is this pause it was a CIQ
was saying we believe 20 percent is standard but
really depends on the price you get
for it we're talking about the equipment or the parts um
Yes. Thank you. Give us a thumbs up.
I'm going to go ahead and log out for tonight and thank everybody
for coming out and attending. And I'll probably turn
this into a podcast in a couple of weeks. So thank you.
Thank you.
