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You're having a tough time right now.

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I think that if we get this right,

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the locations that you have will continue to grow even better.

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This is Ani.

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She runs a chain of eyelash salons

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doing $2.3 million per year,

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but she's dealing with challenges

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with her business partners

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and she spread way too thin.

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And if she doesn't fix this fast,

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this business won't just stall,

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it'll start falling apart.

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Hi, I'm Ani.

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Hi, I'm Amy Lashen Beauty.

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We are in the business of empowering women

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with eyelash extension service

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with a revenue of $2.3 million, $644,000,

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and 28% net margin.

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We have seven locations

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been in business for over 10 years

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and helped over 20,000 clients.

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Amazing.

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What's the problem that you're dealing with right now?

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Health three problems.

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For us as lead generations,

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can we always need more clients?

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Second is making the service better.

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Manager training is inconsistent

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because the managers are spending most of the time doing lashes.

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New employees aren't getting trans quickly.

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Third is partner problems.

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Some partner have dropped responsibility

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since the initial equity agreement.

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And I don't take a salary

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for doing most of the work on marketing and scaling.

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What happens if you don't get these solved?

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The company is not going to grow.

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I'm doing unpaid work, so I feel unfair.

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I don't know how to have hard conversations

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with the partners because they're also my friends.

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All right, tell me more about the partnership situation.

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Health three partners.

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Mm-hmm.

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Right now, they are just not allowing

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with my new goals and mission to grow the company.

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They kind of have their own thing.

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One partner has a full time career.

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Yeah, and a new baby.

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And a new baby.

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They don't manage the last artist.

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They don't train them.

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So they're the customer service

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and the fulfillment are not as good.

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That's probably why those locations

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don't have as many customers.

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Word of mouth.

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Yeah, we kind of have to fix these, you know,

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call it seven locations first.

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And I think if we nail the model,

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you'll sleep better at night.

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Definitely.

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Right.

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Okay, and so that $600,000 that you have in profit

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is that before you split it between all the owners?

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Ah, yes.

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Okay, got it.

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Yeah, you're having a tough time right now.

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It's a lot of people to manage.

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I'm feeling a little bit stuck

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because I'm having a disagreement

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on how to grow the business.

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I have a bigger vision

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where I want to take the company,

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but my partner is that I'll share the same vision.

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Who do you help?

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So I help 99% women,

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mostly in their 20s or 50s,

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women who just value time saving

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or want to look good without needing a lot of makeup.

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Is there an income level that they associate with

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or does work in any market?

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The people who come back to continue the service

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would need a higher income,

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but for someone who just won a fun event,

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it could be anyone.

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How do you help them?

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So for a new client,

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how last time you go through consultations,

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make recommendations and apply the first set of lashes.

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If a client decides they want to continue with the service,

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they come back every two to four weeks for three fills.

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I want to double click there for a second.

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If they decide they want to come back,

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how does that work?

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They just come back in.

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Basically when they want to come back.

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Yes.

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Note it.

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So this is a massive untapped opportunity

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that so many businesses miss out on.

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And so there's two versions of this that you can do.

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Number one is something we call BAMFAM,

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which I'll talk about all the time,

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which I got from Shorozavatsu,

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which is book a meeting from a meeting.

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BAMFAM, that's what it stands for.

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So if you ever have the opportunity

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where someone comes in and they're going to have to come in again,

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book it then, just get it done,

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rather than trying to rely on them coming back by chance

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or remembering you,

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or just even just creating the administrative burden

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of later having to schedule it

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when they're not right in front of you.

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The other way is just creating some sort of membership.

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Now, those are a little bit harder to sell

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because people don't like having recurring billing.

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That's why BAMFAM is one of the easiest ways

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you can implement just about any business.

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But the recurring membership component,

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if we can structure the membership well

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with a really compelling offer,

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it might be something that's going to drive

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more and more people into it,

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which will stabilize the business.

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Okay, so how do you make money?

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Depending on the style of lashes,

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between 170 to 300,

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we do have an intro promotion for 99.

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When they come back,

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between two to four weeks is 70 to 270,

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the longer they go in between fills the more cost.

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So let's say that someone comes in

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for $200 worth of lashes.

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What does it cost you in labor?

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And what does it cost you in lashes?

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We pay out a lash out of 50%.

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Really?

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Wow, do they cover the cost of the lashes as well?

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No, well, we pay the cost of everything.

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Wow, wow, generous.

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So they get 50% of top line.

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And then you deal with the cost of goods, marketing,

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rent, cleaning, everything else.

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Yep.

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Wow, it's impressive that you're running

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28% margins with that.

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That means you're running everything else on

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22% all your life.

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We outsupply is cheap, that's why.

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Yeah, nobody's still 22% that's really impressive

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for literally giving 50% of the top line away.

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Okay, it's how do you get customers?

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50% of clients come from Google.

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It's unclear what of this is organic SEO or pay ads.

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Although I do spend $1,000 a month on Google ads.

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Per location.

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No, come by, yes.

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The $1,000 per month you're saying

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you spend between five locations.

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Yes.

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You're spending $200 a month per location.

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So only spending 1,000 bucks a month between six locations.

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So that's like $180, whatever the math is,

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per month that she's spending, that's not a lot.

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Think about this.

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She's spending $12,000 on a $2.3 million business.

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So if she spent 1% of her revenue be 23,000.

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So she's spending a half per percent on marketing,

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which to me is either like, this marketing isn't working

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or she's not spending nearly enough.

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And I think she's actually in the camp

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of not spending nearly enough.

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If she tells me anecdotally that half the people coming in

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say they heard of her from Google,

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I'm going to bet it's doing more than nothing.

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I'm of the camp of like, man, she's probably

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on a gold mine right now.

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Her probably cost to get a customer is almost nothing.

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And she should spend way more to get more people in the door.

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How many customers do you sell a month?

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On an average month, our total appointment is 1,700.

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Total guest cows 1,100, 30% new clients,

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70 recurring clients.

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50% of clients stay longer than 30 months.

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Do you have the same prices during the weekend

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and during like search times?

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Yes, I'm pricing for weekdays and weekends.

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When is it busiest?

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Usually Friday, Thursday, Friday and Saturday.

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Is there a time of day or is it just those days all the way there?

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Just those days.

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So the oldest law and businesses supply and demand

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and the cross point is where you have price.

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And if there is more demand and less supply

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like for certain times, certain days,

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then price typically can and should go up.

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And so she's running a business right now

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where she has some supply constraints

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that are temporal, meaning either time of day or day of week

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where she has constraints only on those days.

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And so on those days, it would behooves us or behoove Ony

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to bump the prices up to reflect that shift

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in the supply demand of the business.

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Now, if you're like, oh, but wouldn't it piss off our customers?

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Of course, everything is about how you frame things.

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Now, wouldn't it be nicer if we said these are the prices

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on Thursday, Friday, Saturday and the rest of the week

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you get a discount, right?

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And that'll also drive more people to come the other days

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which will then smooth out her demand curve

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and ultimately keep her staff better utilized during the week.

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And then by doing that, increase her availability on weekends

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which would then drive more people to those times

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that she can fill back up but again at a higher price.

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Genius, brilliant.

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Let me ask you a big question.

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Would you say that you have more of a limitation on doing the work

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or getting customers?

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Getting new customers.

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Interesting.

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So you could take a handle a lot more volume.

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So it's more demand issue.

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All right, beyond that, why the rush?

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There's no rush.

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It's just that I don't see an improvement.

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Can I tell you why I ask?

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Yes.

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You have two or three different partners?

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In half.

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Why'd you take the partners on?

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I did not have the manpower to manage,

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didn't have the money to hire like a manager.

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Then I'll ask the question, why the rush of opening?

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Before you had the money and before you had the manpower.

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I just thought that we would make more money

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with another location.

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I agree with you.

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You probably already noticed that the next location

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is significantly harder than the first one.

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And the profit, I'll bet you, a big part of the profit

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is probably from your first,

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the ones that you have the most direction to roll over.

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So I thought when I opened more locations,

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I would make more money.

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But then I realized the manager

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on training the new employee as well.

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The fulfillment of the service and not as good.

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Some location aren't doing as well.

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So I have a lot of empathy for Ani

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because I made the same mistake.

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And so I had six locations,

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almost to the same thing I had multiple partners.

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I did this, I did this.

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And the reality is that if I had just continued to cash flow,

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the first location that I had,

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rather than getting really aggressive with my expansion,

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I would have expanded better more profitably.

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And I probably would have had a stronger brand

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going into new markets.

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And so sometimes we have to go against our desire

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to do things fast, make it them easy,

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just make quick big bets on new people

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that are unvedited or untested.

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Whereas if she had been able to maintain control

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and maybe have three locations

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by the same time period and she owns the mall outright,

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she would be consistently stomping out these new locations

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00:09:27.760 --> 00:09:31.400
because here's the really fun fact.

270
00:09:31.400 --> 00:09:33.680
The fastest way to five locations

271
00:09:33.680 --> 00:09:36.040
isn't the fastest way to 50 locations.

272
00:09:36.040 --> 00:09:40.160
You might go slower for your first one, two, three, four.

273
00:09:40.160 --> 00:09:41.520
But by doing it that way,

274
00:09:41.520 --> 00:09:43.840
you set up the infrastructure of the foundation

275
00:09:43.840 --> 00:09:46.800
to be able to then aggressively go from four to 10

276
00:09:46.800 --> 00:09:48.200
and then from 10 to 50.

277
00:09:49.480 --> 00:09:50.880
But you can't do that if you have all these

278
00:09:50.880 --> 00:09:52.560
hodgepodge deals on the side.

279
00:09:52.560 --> 00:09:53.960
Because let's think about this all the way

280
00:09:53.960 --> 00:09:54.960
at the natural extreme.

281
00:09:54.960 --> 00:09:56.880
Do we think the future version of the business

282
00:09:56.880 --> 00:09:59.480
is her with a hundred different partners?

283
00:09:59.480 --> 00:10:01.040
Probably not.

284
00:10:01.040 --> 00:10:03.200
And if that's not the future version of the business,

285
00:10:03.200 --> 00:10:04.880
why start doing that today?

286
00:10:04.880 --> 00:10:07.800
And the answer to that question is one word, rush.

287
00:10:07.800 --> 00:10:10.000
This is the per location numbers.

288
00:10:10.000 --> 00:10:13.360
You own number one and number four outright.

289
00:10:13.360 --> 00:10:16.080
Number one makes the most profit I'm guessing.

290
00:10:16.080 --> 00:10:18.960
Does that one run 28ers at higher margins there?

291
00:10:18.960 --> 00:10:20.960
It's the route the same margin.

292
00:10:20.960 --> 00:10:22.880
Okay, so it's like 20, so really, okay.

293
00:10:22.880 --> 00:10:25.240
Cool, so that one makes like 250,000 years,

294
00:10:25.240 --> 00:10:26.160
something like that.

295
00:10:26.160 --> 00:10:27.000
Yeah.

296
00:10:27.000 --> 00:10:30.080
Okay, and then all of them kind of maintain

297
00:10:30.080 --> 00:10:32.520
the same margins or any of them not profitable

298
00:10:32.520 --> 00:10:33.640
or they all profitable.

299
00:10:33.640 --> 00:10:35.040
Very similar margin.

300
00:10:35.040 --> 00:10:35.880
Really?

301
00:10:35.880 --> 00:10:36.720
Yes.

302
00:10:36.720 --> 00:10:37.720
That's interesting.

303
00:10:37.720 --> 00:10:38.720
That's not common.

304
00:10:38.720 --> 00:10:39.720
That's a good thing.

305
00:10:39.720 --> 00:10:40.720
Yeah.

306
00:10:40.720 --> 00:10:41.720
That's a, that's a good idea to you.

307
00:10:41.720 --> 00:10:43.280
Talk to me about the membership process.

308
00:10:43.280 --> 00:10:45.280
So we just started a membership.

309
00:10:45.280 --> 00:10:46.280
We're still working on it.

310
00:10:46.280 --> 00:10:47.280
Okay.

311
00:10:47.280 --> 00:10:48.280
Not rolling out yet.

312
00:10:48.280 --> 00:10:49.280
So you've never really tried to have

313
00:10:49.280 --> 00:10:51.200
some sort of upsell offer.

314
00:10:51.200 --> 00:10:52.840
We do have an upsell when a client

315
00:10:52.840 --> 00:10:55.760
come in for $99 set.

316
00:10:55.760 --> 00:10:58.160
I usually upsell them to 170,

317
00:10:58.160 --> 00:11:00.120
which is like a better set of lashes.

318
00:11:00.120 --> 00:11:02.640
Okay, what percentage do you upsell?

319
00:11:02.680 --> 00:11:04.800
I can upsell 90% of the time.

320
00:11:04.800 --> 00:11:06.080
What about the team?

321
00:11:06.080 --> 00:11:08.320
Probably do less than 50.

322
00:11:08.320 --> 00:11:09.240
They don't even ask.

323
00:11:09.240 --> 00:11:10.240
They don't even ask.

324
00:11:10.240 --> 00:11:11.480
I mean, I guess they're good.

325
00:11:11.480 --> 00:11:12.800
You know, they have 50, it's not bad.

326
00:11:12.800 --> 00:11:13.880
This is not terrible.

327
00:11:13.880 --> 00:11:15.440
Also, in terms of close rates,

328
00:11:15.440 --> 00:11:17.360
I, you know, like 99% closer for people

329
00:11:17.360 --> 00:11:19.440
who walk in the door, I probably wouldn't,

330
00:11:19.440 --> 00:11:20.280
I don't even know if I would track,

331
00:11:20.280 --> 00:11:22.760
I mean, it's worth tracking to see if it falls off,

332
00:11:22.760 --> 00:11:24.200
but what I'd be more interested in seeing

333
00:11:24.200 --> 00:11:25.920
is the close rate on upsells.

334
00:11:25.920 --> 00:11:28.480
Because the $99 thing is not where you're going to,

335
00:11:28.480 --> 00:11:29.800
not where you make your money.

336
00:11:29.800 --> 00:11:32.480
So she's got a really big opportunity here

337
00:11:32.480 --> 00:11:34.120
where she's saying that, you know,

338
00:11:34.120 --> 00:11:36.920
they close 100% but it's basically pre-closed people

339
00:11:36.920 --> 00:11:38.480
who already checked out on a page.

340
00:11:38.480 --> 00:11:40.560
And so when someone walks in already having spent the money

341
00:11:40.560 --> 00:11:42.520
or knowing that they're going to spend this money,

342
00:11:42.520 --> 00:11:44.320
they already know the price there of the card down,

343
00:11:44.320 --> 00:11:45.840
those are like, in my opinion,

344
00:11:45.840 --> 00:11:47.320
just absolutely assumed closes.

345
00:11:47.320 --> 00:11:48.640
Like you're not going to mess those up.

346
00:11:48.640 --> 00:11:49.760
The real opportunity, though,

347
00:11:49.760 --> 00:11:51.400
is that these are essentially lead magnets.

348
00:11:51.400 --> 00:11:52.920
They're front end promotional offers

349
00:11:52.920 --> 00:11:55.240
that are not designed to make money.

350
00:11:55.240 --> 00:11:56.720
The offer that's designed to make money,

351
00:11:56.720 --> 00:11:59.480
the profit maximization component of it is the upsells.

352
00:11:59.480 --> 00:12:01.440
If she's not getting a huge percentage of people

353
00:12:01.440 --> 00:12:04.080
to take the upsells, those are all the missed opportunities

354
00:12:04.080 --> 00:12:05.480
because think about like this.

355
00:12:05.480 --> 00:12:07.400
Let's say she breaks even functionally

356
00:12:07.400 --> 00:12:09.800
in terms of cost after payroll and taxes

357
00:12:09.800 --> 00:12:13.040
and materials and rent and labor and all that stuff

358
00:12:13.040 --> 00:12:14.400
on these promotional offers.

359
00:12:14.400 --> 00:12:15.920
Because if she only did promotional offers,

360
00:12:15.920 --> 00:12:17.920
she wouldn't have any profit in the business.

361
00:12:17.920 --> 00:12:20.400
So the real business is the upsell.

362
00:12:20.400 --> 00:12:23.240
And that's what we have to be focusing all of our attention on

363
00:12:23.240 --> 00:12:27.080
so that we can maximize that step one to step two take rate.

364
00:12:27.080 --> 00:12:29.440
What's the incentive for the girls to stay?

365
00:12:29.440 --> 00:12:30.680
The last artist.

366
00:12:30.680 --> 00:12:33.240
Because I'm assuming that you could lose them pretty easily.

367
00:12:33.240 --> 00:12:37.920
I'd offer training and to advance their techniques,

368
00:12:37.920 --> 00:12:38.760
but mostly.

369
00:12:38.760 --> 00:12:39.760
Which the other people aren't delivering on.

370
00:12:39.760 --> 00:12:40.600
Money.

371
00:12:40.600 --> 00:12:41.440
Yeah.

372
00:12:41.440 --> 00:12:44.440
So do you lose them to other competitors?

373
00:12:44.440 --> 00:12:46.920
Or do you lose them more to them just going out on the road?

374
00:12:46.920 --> 00:12:48.240
Going out on it.

375
00:12:48.240 --> 00:12:51.000
That's one huge problem that I have is I don't know

376
00:12:51.000 --> 00:12:53.800
how to prevent them from taking out clients either.

377
00:12:53.800 --> 00:12:54.800
Yeah.

378
00:12:54.800 --> 00:12:56.280
Mm-hmm.

379
00:12:56.280 --> 00:12:57.880
I have ideas.

380
00:12:57.880 --> 00:12:58.880
Rudy Diven.

381
00:12:58.880 --> 00:12:59.380
Yeah.

382
00:12:59.380 --> 00:12:59.880
OK.

383
00:12:59.920 --> 00:13:00.520
Come on over.

384
00:13:00.520 --> 00:13:01.760
So here's how we're going to do.

385
00:13:01.760 --> 00:13:04.240
Number one, we're going to talk about pricing.

386
00:13:04.240 --> 00:13:05.880
I think you have a little bit of an opportunity there

387
00:13:05.880 --> 00:13:07.840
that I'll walk through in terms of search pricing.

388
00:13:07.840 --> 00:13:10.280
Number two, membership.

389
00:13:10.280 --> 00:13:11.560
That you're trying to put together.

390
00:13:11.560 --> 00:13:14.320
I have a lot of ideas on what we can do to make that better.

391
00:13:14.320 --> 00:13:17.400
Three is going to be the upsell process.

392
00:13:17.400 --> 00:13:21.160
Next one is going to be career path for your team

393
00:13:21.160 --> 00:13:23.680
so that you can try and keep more of them.

394
00:13:23.680 --> 00:13:26.200
Ads plus attribution.

395
00:13:26.200 --> 00:13:27.880
How do we know we're getting what we're spending for?

396
00:13:27.920 --> 00:13:30.320
This is going to be a big one.

397
00:13:30.320 --> 00:13:33.480
Partnership.

398
00:13:33.480 --> 00:13:36.720
Man, it's hard for me to even talk about the other five

399
00:13:36.720 --> 00:13:40.080
without going into this because I think that this is the one

400
00:13:40.080 --> 00:13:41.640
that feels the heaviest to me right now.

401
00:13:41.640 --> 00:13:44.200
Because fundamentally, if we don't nail a partnership,

402
00:13:44.200 --> 00:13:45.920
then none of the executions going to happen.

403
00:13:45.920 --> 00:13:49.600
That's what happened after I went back from the event.

404
00:13:49.600 --> 00:13:51.800
Like, hey, this is all the things I want to do.

405
00:13:51.800 --> 00:13:53.640
But they're not really on board.

406
00:13:53.640 --> 00:13:54.160
Yeah.

407
00:13:54.160 --> 00:13:55.000
OK.

408
00:13:55.000 --> 00:13:55.760
Check this out real quick.

409
00:13:55.760 --> 00:13:58.040
So this is the $100 million scaling roadmap.

410
00:13:58.040 --> 00:14:01.760
Laila and I spent 200-ish hours going over all the companies

411
00:14:01.760 --> 00:14:04.840
that we've own invested and scaled and tried to break down

412
00:14:04.840 --> 00:14:06.440
where were the points that we got stuck

413
00:14:06.440 --> 00:14:08.480
and then what do we do to break through.

414
00:14:08.480 --> 00:14:09.920
And we broke it in these 10 stages

415
00:14:09.920 --> 00:14:12.200
and Ani is at stage six optimized.

416
00:14:12.200 --> 00:14:14.840
So let's look at some of the problems that she's dealing with.

417
00:14:14.840 --> 00:14:17.120
She has to run more ads than she currently is.

418
00:14:17.120 --> 00:14:19.080
So to graduate here, she's got to implement the ad

419
00:14:19.080 --> 00:14:20.360
assembly process to increase volume.

420
00:14:20.360 --> 00:14:21.360
If you're like, what's that?

421
00:14:21.360 --> 00:14:23.680
I have a whole video on it if you're at stage six.

422
00:14:23.680 --> 00:14:25.800
She has to install a product improvement process

423
00:14:25.800 --> 00:14:26.600
for both products.

424
00:14:26.600 --> 00:14:29.080
Because the second product here is the membership product, right?

425
00:14:29.080 --> 00:14:30.560
And so we need to put a process in place

426
00:14:30.560 --> 00:14:31.720
so that we can continue to improve it

427
00:14:31.720 --> 00:14:34.400
so we can decrease turning, get more people to take that upsell,

428
00:14:34.400 --> 00:14:36.360
which also goes hand in hand with installing

429
00:14:36.360 --> 00:14:38.120
sales training systems and individual coaching

430
00:14:38.120 --> 00:14:40.240
and a team cadence to make sure that they're maximizing

431
00:14:40.240 --> 00:14:43.280
that upsell at step two when they come in for that promo offer.

432
00:14:43.280 --> 00:14:45.280
We need to get more people to take that upsell, both in terms

433
00:14:45.280 --> 00:14:47.760
of just the immediate upsell, but also the membership upsell.

434
00:14:47.760 --> 00:14:49.360
And the only way we're going to do that is through training.

435
00:14:49.360 --> 00:14:50.400
And I think Ani says this.

436
00:14:50.400 --> 00:14:52.280
She's like, you know, the team's not as trained as well

437
00:14:52.280 --> 00:14:53.240
as they should be.

438
00:14:53.280 --> 00:14:54.560
And if we're thinking about like, what layers is this?

439
00:14:54.560 --> 00:14:55.560
She's got two layers of management.

440
00:14:55.560 --> 00:14:56.680
She has full team of managers.

441
00:14:56.680 --> 00:14:58.200
Every one of these locations says a manager.

442
00:14:58.200 --> 00:15:00.880
So these are the problems that she's dealing with right now.

443
00:15:00.880 --> 00:15:02.960
And for her long term, right?

444
00:15:02.960 --> 00:15:06.360
She almost shortcut the idea of getting good managers

445
00:15:06.360 --> 00:15:08.680
by just partnering, but was she really needed here?

446
00:15:08.680 --> 00:15:10.080
Like, what was the constraint?

447
00:15:10.080 --> 00:15:12.560
Was that the number and type of role she needed

448
00:15:12.560 --> 00:15:14.440
exceeded her current network, right?

449
00:15:14.440 --> 00:15:17.000
And the thing is is that she just used her current network

450
00:15:17.000 --> 00:15:20.200
to just pull people in and that has become an issue.

451
00:15:20.200 --> 00:15:22.760
And so these are all problems that happen

452
00:15:22.760 --> 00:15:25.000
all the time at stage six.

453
00:15:25.000 --> 00:15:26.840
And so if you're like, man, I would love to know

454
00:15:26.840 --> 00:15:28.720
what stage of business I'm at so that I can know

455
00:15:28.720 --> 00:15:31.320
what the constraints are and what I need to graduate.

456
00:15:31.320 --> 00:15:33.200
And so this is 100% free.

457
00:15:33.200 --> 00:15:35.200
You got acquisition.com forward slash road map.

458
00:15:35.200 --> 00:15:36.480
You type in your business information

459
00:15:36.480 --> 00:15:38.480
and it'll it'll figure out what stage you're at

460
00:15:38.480 --> 00:15:39.840
and give you the potential solutions

461
00:15:39.840 --> 00:15:41.160
that might help you get through that stage

462
00:15:41.160 --> 00:15:42.000
with your business.

463
00:15:42.000 --> 00:15:45.440
And if you'd like my team to actually work with you

464
00:15:45.440 --> 00:15:47.920
in person to make sure that this is a stage you're at

465
00:15:47.920 --> 00:15:50.240
and these are the things that can help debottle neck

466
00:15:50.240 --> 00:15:51.920
your growth, then on the thank you page,

467
00:15:51.920 --> 00:15:53.400
you can schedule call their team and we'd love to

468
00:15:53.400 --> 00:15:54.960
potentially see out here in Vegas.

469
00:15:54.960 --> 00:15:56.560
Well, then I don't normally do this,

470
00:15:56.560 --> 00:15:58.760
but let's talk about the partnership first.

471
00:15:58.760 --> 00:16:00.920
Let's resolve that and then we can talk

472
00:16:00.920 --> 00:16:02.040
about all the downstream stuff.

473
00:16:02.040 --> 00:16:03.360
You have three sets of partners.

474
00:16:03.360 --> 00:16:04.640
You have two that work full time

475
00:16:04.640 --> 00:16:07.720
and then one that you've done multiple partnerships with.

476
00:16:07.720 --> 00:16:09.160
Which one do you want to tackle first?

477
00:16:09.160 --> 00:16:10.200
The big yes.

478
00:16:10.200 --> 00:16:11.880
Yeah, the reason I wanted to talk about her

479
00:16:11.880 --> 00:16:14.880
partnership structure is because all of these things

480
00:16:14.880 --> 00:16:16.760
that I'm going to go over are wonderful ideas

481
00:16:16.760 --> 00:16:18.400
and they're great things that she could do

482
00:16:18.400 --> 00:16:20.240
to potentially grow the business.

483
00:16:20.240 --> 00:16:24.160
But if she's using up 80% of her mental bandwidth

484
00:16:24.160 --> 00:16:25.320
on these partnerships,

485
00:16:25.320 --> 00:16:27.360
then she's never going to be able to execute any of this.

486
00:16:27.360 --> 00:16:29.560
I want to maximize the likelihood she succeeds

487
00:16:29.560 --> 00:16:31.440
and part of that is de-constraining the biggest time

488
00:16:31.440 --> 00:16:33.000
during she has, which is these partnerships

489
00:16:33.000 --> 00:16:34.400
that she hasn't visited yet.

490
00:16:34.400 --> 00:16:35.760
Which is one of my favorite quotes is

491
00:16:35.760 --> 00:16:37.560
everything you want in life is on the other side

492
00:16:37.560 --> 00:16:38.800
of a few hard conversations.

493
00:16:38.800 --> 00:16:39.880
You know, my heart goes out to her

494
00:16:39.880 --> 00:16:41.320
with the partnership situation

495
00:16:41.320 --> 00:16:44.200
and I know that firsthand having nine filled partnerships.

496
00:16:44.200 --> 00:16:45.960
All the big jumps in my career happened

497
00:16:45.960 --> 00:16:48.560
after I had tough partnership conversations.

498
00:16:48.560 --> 00:16:49.920
If she doesn't deal with this thing,

499
00:16:49.920 --> 00:16:51.680
it's just going to get bigger and nastier.

500
00:16:51.680 --> 00:16:53.880
And so you might as well deal with it now.

501
00:16:53.880 --> 00:16:55.400
And so this is me also talking to Ani

502
00:16:55.400 --> 00:16:57.040
and her potential partners.

503
00:16:57.040 --> 00:16:59.480
Please try and resolve whatever concerns you have

504
00:16:59.480 --> 00:17:01.400
and set up clear expectations.

505
00:17:01.400 --> 00:17:02.920
Don't leave it in the gray.

506
00:17:02.920 --> 00:17:04.240
Don't leave something there

507
00:17:04.240 --> 00:17:06.480
because you don't want to confront the issue.

508
00:17:06.480 --> 00:17:08.520
Like whatever you say to your husband

509
00:17:08.520 --> 00:17:10.960
or you say to the people behind one another's back,

510
00:17:10.960 --> 00:17:13.320
just say to each other, get it out there,

511
00:17:13.320 --> 00:17:14.760
be clear about what you want.

512
00:17:14.760 --> 00:17:16.200
And then ultimately, I think it's going to be better

513
00:17:16.200 --> 00:17:17.640
for all parties.

514
00:17:17.640 --> 00:17:20.520
I think that your initial inclination is right,

515
00:17:20.520 --> 00:17:24.200
which is that you have option one is that there's a role

516
00:17:24.200 --> 00:17:26.040
that doesn't exist within the business,

517
00:17:26.040 --> 00:17:27.600
which is to do this level of work.

518
00:17:27.600 --> 00:17:28.600
And so I'll tell you a story.

519
00:17:28.600 --> 00:17:30.600
So when I had my first partnership ever,

520
00:17:30.600 --> 00:17:32.160
I or second partnership ever,

521
00:17:32.160 --> 00:17:34.000
I had two people come into the business

522
00:17:34.000 --> 00:17:36.200
and so they were all one third partners.

523
00:17:36.200 --> 00:17:38.080
But I was the one who ran the gym,

524
00:17:38.080 --> 00:17:39.240
but I didn't get paid anymore

525
00:17:39.240 --> 00:17:40.720
than the other two partners you never said.

526
00:17:40.720 --> 00:17:43.160
Not really, didn't step from the gym comparatively

527
00:17:43.160 --> 00:17:44.200
to the amount of hours I did.

528
00:17:44.200 --> 00:17:46.680
The big issue that I had was that I never asked

529
00:17:46.680 --> 00:17:49.200
for basically what I should have probably been paid,

530
00:17:49.200 --> 00:17:51.720
which would have been what a manager would have been paid.

531
00:17:51.720 --> 00:17:54.360
And so the actual business has artificially high profit

532
00:17:54.360 --> 00:17:57.280
margins because there's a role that I'm doing as owner,

533
00:17:57.280 --> 00:17:58.880
but I'm also doing the role of somebody

534
00:17:58.880 --> 00:17:59.880
who would be working the business.

535
00:17:59.880 --> 00:18:01.680
Because long-term in order for it to really scale,

536
00:18:01.680 --> 00:18:03.360
you can't work in it.

537
00:18:03.360 --> 00:18:06.160
So you're basically running as manager probably

538
00:18:06.160 --> 00:18:07.960
for multiple locations right now.

539
00:18:07.960 --> 00:18:09.600
You're basically doing as an unpaid manager,

540
00:18:09.600 --> 00:18:11.360
which is not uncommon in the very beginning.

541
00:18:11.360 --> 00:18:13.400
But over time, so I guess cash flow is there,

542
00:18:13.400 --> 00:18:14.560
you really want to have that role.

543
00:18:14.560 --> 00:18:17.000
So that later, you can say, I'm going to hire someone,

544
00:18:17.000 --> 00:18:19.280
and we're going to pay them the same amount that we paid me

545
00:18:19.280 --> 00:18:20.120
to take this role.

546
00:18:20.120 --> 00:18:22.600
And so it should be the rate that somebody else

547
00:18:22.600 --> 00:18:24.400
would be able to do the same work for.

548
00:18:24.400 --> 00:18:28.080
It's super important for Ani or anybody who has a model

549
00:18:28.080 --> 00:18:31.720
that they intend to scale to pay what would be market rate

550
00:18:31.720 --> 00:18:34.480
for the role that they're fulfilling within the business.

551
00:18:34.480 --> 00:18:36.320
And the reason that's important is because if you want

552
00:18:36.320 --> 00:18:38.680
to open up more locations, you're going to have to leave

553
00:18:38.680 --> 00:18:41.240
that location, which means you're going to have to backfill

554
00:18:41.240 --> 00:18:43.000
your skillset there.

555
00:18:43.000 --> 00:18:44.080
There's a couple of components to this.

556
00:18:44.120 --> 00:18:45.960
One is, if you're doing like four different things

557
00:18:45.960 --> 00:18:48.920
at 25%, then that means there's something wrong with the model.

558
00:18:48.920 --> 00:18:50.960
We need to better organize the team and the roles

559
00:18:50.960 --> 00:18:52.600
so that all of that work gets covered.

560
00:18:52.600 --> 00:18:53.800
And if somebody else is going to come in

561
00:18:53.800 --> 00:18:56.720
and do those four, 25% roles fine,

562
00:18:56.720 --> 00:18:58.800
but we need to make sure that that's factored into

563
00:18:58.800 --> 00:19:01.080
our return on capital in terms of how much it costs

564
00:19:01.080 --> 00:19:02.800
to open up to the location versus how much we're going

565
00:19:02.800 --> 00:19:03.640
to make from it.

566
00:19:03.640 --> 00:19:05.000
And so let's say that we've got a location

567
00:19:05.000 --> 00:19:06.640
that's making $300,000 in profit,

568
00:19:06.640 --> 00:19:08.000
and it costs us $50,000 open.

569
00:19:08.000 --> 00:19:10.080
We'd be like, oh my God, let's open a ton of these.

570
00:19:10.080 --> 00:19:13.320
But we then find out that it costs us $200,000.

571
00:19:13.400 --> 00:19:15.280
For example, to pay somebody who's good enough

572
00:19:15.280 --> 00:19:16.960
to be able to execute the business model there,

573
00:19:16.960 --> 00:19:19.720
all of a sudden now we're making only $100,000 in profit

574
00:19:19.720 --> 00:19:21.480
per location, all $50,000 invested.

575
00:19:21.480 --> 00:19:23.120
Now mind you, that might still be a good return,

576
00:19:23.120 --> 00:19:25.280
but we still have to factor all of those pieces in

577
00:19:25.280 --> 00:19:28.640
as is this the real return or is this artificially inflated

578
00:19:28.640 --> 00:19:31.560
because people are acting as owners

579
00:19:31.560 --> 00:19:33.640
and just getting a profit share of it.

580
00:19:33.640 --> 00:19:35.440
It's not really built into the overall economics

581
00:19:35.440 --> 00:19:36.280
of the model.

582
00:19:36.280 --> 00:19:38.080
And this is why we say nail it then scale it.

583
00:19:38.080 --> 00:19:39.760
That's option one.

584
00:19:39.760 --> 00:19:41.440
The other option is if you decide that you don't think

585
00:19:41.440 --> 00:19:43.400
the partnership's going to work out long term,

586
00:19:43.400 --> 00:19:46.160
that I do think it makes sense for you to split the partnership.

587
00:19:46.160 --> 00:19:47.680
Now there's two paths there.

588
00:19:47.680 --> 00:19:49.440
So path one is that she buys you,

589
00:19:49.440 --> 00:19:51.640
the other path is you buy her, right?

590
00:19:51.640 --> 00:19:53.480
Now I think the fairest way to approach it

591
00:19:53.480 --> 00:19:55.280
is to do something called a shotgun offer,

592
00:19:55.280 --> 00:19:57.520
which is like I will buy you off for this,

593
00:19:57.520 --> 00:20:00.320
but I will also accept that for you to buy me out.

594
00:20:00.320 --> 00:20:02.720
And so you can basically make the price in the term,

595
00:20:02.720 --> 00:20:04.040
so it's like pay me over two years,

596
00:20:04.040 --> 00:20:05.880
pay me over three years, don't have to pay it upfront.

597
00:20:05.880 --> 00:20:08.320
But when that happens, you're gonna be running this business

598
00:20:08.320 --> 00:20:10.760
and I'm gonna be running my locations.

599
00:20:10.760 --> 00:20:12.680
I think that if we get this right,

600
00:20:12.680 --> 00:20:13.920
I think the locations that you have

601
00:20:13.920 --> 00:20:16.080
will continue to grow even better.

602
00:20:16.080 --> 00:20:19.640
It's just a problem is what if they say no

603
00:20:19.640 --> 00:20:22.000
to the buying out part?

604
00:20:22.000 --> 00:20:25.320
Well, the thing is is that you have leverage,

605
00:20:25.320 --> 00:20:26.920
which is if you're the working partner,

606
00:20:26.920 --> 00:20:28.840
you can say well then I'm not going to work anymore.

607
00:20:28.840 --> 00:20:29.760
Okay.

608
00:20:29.760 --> 00:20:31.120
So there's leverage.

609
00:20:31.120 --> 00:20:33.080
And to be fair, they have the equal opposite leverage,

610
00:20:33.080 --> 00:20:36.360
but if they already are not working, then there's less leverage.

611
00:20:36.360 --> 00:20:37.920
Being the person who works and brings it in

612
00:20:37.920 --> 00:20:39.000
always gives you leverage.

613
00:20:39.960 --> 00:20:43.280
The idea here though is that I think the fairest offer is,

614
00:20:43.280 --> 00:20:45.920
I will buy you out at this, but I'll also accept that.

615
00:20:45.920 --> 00:20:47.800
But either way, I don't think this is gonna work long term

616
00:20:47.800 --> 00:20:49.240
because we have different goals.

617
00:20:49.240 --> 00:20:51.760
And also because you have multiple locations together,

618
00:20:51.760 --> 00:20:54.560
you might be able to do just a straight equity swap,

619
00:20:54.560 --> 00:20:57.280
which is like your 50, 50 here and 50, 50 here.

620
00:20:57.280 --> 00:20:59.520
Let me just take this one, you take that one

621
00:20:59.520 --> 00:21:00.560
and we just go our separate ways.

622
00:21:00.560 --> 00:21:03.800
And that's super smooth because then it's an in-kind transaction.

623
00:21:03.800 --> 00:21:07.000
There's no taxes and you basically just swap equity for equity.

624
00:21:07.000 --> 00:21:08.320
Yeah, I've actually done a deal like that.

625
00:21:08.400 --> 00:21:09.880
That might be the cleanest thing for you to do

626
00:21:09.880 --> 00:21:10.800
because it's a clean break.

627
00:21:10.800 --> 00:21:12.040
And now all of her focus is like,

628
00:21:12.040 --> 00:21:13.840
I just have to make this one profitable.

629
00:21:13.840 --> 00:21:16.280
And then you just get the other full one.

630
00:21:16.280 --> 00:21:17.760
And if you want to be really generous about it,

631
00:21:17.760 --> 00:21:19.240
you can sell it at your Bitcoin tool.

632
00:21:19.240 --> 00:21:20.080
Okay.

633
00:21:20.080 --> 00:21:22.120
If you want to be really generous with it.

634
00:21:22.120 --> 00:21:23.840
How do you think she thinks you'll take that?

635
00:21:23.840 --> 00:21:25.560
I think it's a pretty reasonable offer.

636
00:21:25.560 --> 00:21:26.400
Yeah.

637
00:21:26.400 --> 00:21:27.640
Well, I give you three different paths.

638
00:21:27.640 --> 00:21:29.840
I think the salary thing is gonna be hard given what you said.

639
00:21:29.840 --> 00:21:32.040
It sounds like a clean break is the way to go.

640
00:21:32.040 --> 00:21:34.640
So either buy me out or let's just trade.

641
00:21:34.640 --> 00:21:37.120
So we have Path A.

642
00:21:37.120 --> 00:21:39.480
You do an increased profit share.

643
00:21:39.480 --> 00:21:42.320
Path B, which is shotgun offer.

644
00:21:42.320 --> 00:21:44.520
Path C is we just consolidate.

645
00:21:44.520 --> 00:21:45.760
I take the other half of this one.

646
00:21:45.760 --> 00:21:47.080
You take the other half of that one.

647
00:21:47.080 --> 00:21:49.000
Which one do you think you'll offer?

648
00:21:49.000 --> 00:21:50.600
I'll put the first one first.

649
00:21:50.600 --> 00:21:52.160
And then they say no.

650
00:21:52.160 --> 00:21:54.720
Because I still want to have the relationships.

651
00:21:54.720 --> 00:21:58.200
I still want to run this business together if they onboard.

652
00:21:58.200 --> 00:22:00.520
How many years have you done this with them?

653
00:22:00.520 --> 00:22:02.080
Five.

654
00:22:02.080 --> 00:22:03.480
But it has been working.

655
00:22:03.480 --> 00:22:05.480
So before we just kind of...

656
00:22:05.480 --> 00:22:06.400
We were friends.

657
00:22:06.400 --> 00:22:08.400
We would just let it be.

658
00:22:08.400 --> 00:22:09.560
Yeah.

659
00:22:09.560 --> 00:22:11.920
There's not a lot of growing the business.

660
00:22:11.920 --> 00:22:12.760
Right.

661
00:22:12.760 --> 00:22:14.000
It's just more like hiring and...

662
00:22:14.000 --> 00:22:14.880
You're different goals.

663
00:22:14.880 --> 00:22:15.720
Yes.

664
00:22:15.720 --> 00:22:19.960
Now it's like I want to make each customer be happier

665
00:22:19.960 --> 00:22:20.800
with the service.

666
00:22:20.800 --> 00:22:21.640
Sure.

667
00:22:21.640 --> 00:22:23.440
I want to improve our employee.

668
00:22:23.440 --> 00:22:25.000
You have higher goals than what you want to do.

669
00:22:25.000 --> 00:22:25.840
Which there's nothing wrong with that.

670
00:22:25.840 --> 00:22:27.440
Just family, she has another career, whatever.

671
00:22:27.440 --> 00:22:28.280
Yeah.

672
00:22:29.280 --> 00:22:30.600
Real quick, guys.

673
00:22:30.600 --> 00:22:33.720
I have a special, special gift for you

674
00:22:33.720 --> 00:22:36.520
for being loyal listeners of the podcast.

675
00:22:36.520 --> 00:22:39.280
Layla and I spent probably an entire quarter

676
00:22:39.280 --> 00:22:41.920
putting together our scaling roadmap.

677
00:22:41.920 --> 00:22:45.200
It's breaking, scaling into 10 stages

678
00:22:45.200 --> 00:22:47.600
and across all eight functions of the business.

679
00:22:47.600 --> 00:22:49.000
So you've got marketing, you've got sales,

680
00:22:49.000 --> 00:22:50.800
you've got product, you've got customer success,

681
00:22:50.800 --> 00:22:52.600
you've got IT, you've got recruiting,

682
00:22:52.600 --> 00:22:54.080
you've got HR, you've got finance.

683
00:22:54.080 --> 00:22:56.760
And we show the problems that emerged at every level of scale

684
00:22:56.760 --> 00:22:58.200
and how to graduate to the next level.

685
00:22:58.200 --> 00:23:01.720
It's all free and you can get it personalized to you

686
00:23:01.720 --> 00:23:04.280
since about 30-ish pages for each of the stages.

687
00:23:04.280 --> 00:23:05.320
Once you answer the questions,

688
00:23:05.320 --> 00:23:07.240
it will tell you exactly where you're at

689
00:23:07.240 --> 00:23:09.320
and what you need to do to grow.

690
00:23:09.320 --> 00:23:12.240
It's about 14 hours of stuff, but it's narrowed down

691
00:23:12.240 --> 00:23:13.760
so that you only have to watch the part

692
00:23:13.760 --> 00:23:16.080
that's relevant to you, which will probably be about 90 minutes.

693
00:23:16.080 --> 00:23:17.520
And so if that's at all interesting,

694
00:23:17.520 --> 00:23:20.560
you can go to acquisition.com forward slash road map,

695
00:23:20.560 --> 00:23:22.640
R-O-A-D map, road map.

696
00:23:25.320 --> 00:23:27.680
Can I give you my descents?

697
00:23:27.720 --> 00:23:30.120
I think you should do the equity swap.

698
00:23:30.120 --> 00:23:31.120
The thing is that I think you'll be able

699
00:23:31.120 --> 00:23:33.200
to keep the relationship longer term.

700
00:23:33.200 --> 00:23:35.240
Basically, because if you have an ugly end of the partnership,

701
00:23:35.240 --> 00:23:37.520
which the profit share percentage,

702
00:23:37.520 --> 00:23:39.560
then there's like, well, now I feel like I'm getting paid even less

703
00:23:39.560 --> 00:23:41.360
and you're really just doing what you're already doing

704
00:23:41.360 --> 00:23:43.720
or just being greedy, there's the shotgun offer,

705
00:23:43.720 --> 00:23:45.360
which then one of you is writing a text

706
00:23:45.360 --> 00:23:47.080
to the other person for the next two years

707
00:23:47.080 --> 00:23:48.880
and that kind of stings every month.

708
00:23:48.880 --> 00:23:52.080
The equity swap is a very clean, clean way to end it.

709
00:23:52.080 --> 00:23:53.920
And it's just unique to the situation that you have

710
00:23:53.920 --> 00:23:57.120
because you both have multiple locations together.

711
00:23:57.120 --> 00:23:59.280
And so I think consolidating that is very clean.

712
00:23:59.280 --> 00:24:02.480
And then at that point, you can be 100% friends

713
00:24:02.480 --> 00:24:04.400
and you can share all the secrets that are working

714
00:24:04.400 --> 00:24:07.680
with one another, but she can choose to do whatever she wants.

715
00:24:07.680 --> 00:24:08.520
With her location.

716
00:24:08.520 --> 00:24:10.120
Right. And that way you can still talk business.

717
00:24:10.120 --> 00:24:11.520
You can still talk all the things normally do,

718
00:24:11.520 --> 00:24:13.040
except the stakes are less.

719
00:24:13.040 --> 00:24:14.680
And if she doesn't want to do so much as I've done.

720
00:24:14.680 --> 00:24:15.920
Yeah.

721
00:24:15.920 --> 00:24:17.560
That's my advice.

722
00:24:17.560 --> 00:24:18.920
Because I think that you want to run faster

723
00:24:18.920 --> 00:24:22.040
than someone else does and that's very hard to keep long term.

724
00:24:22.040 --> 00:24:23.360
Yeah.

725
00:24:23.360 --> 00:24:25.680
That's what I would do for partnership.

726
00:24:25.680 --> 00:24:31.000
How does it work if, let's say, she picked the one

727
00:24:31.000 --> 00:24:34.360
that's the second location?

728
00:24:34.360 --> 00:24:36.800
It wouldn't be the same at the equity

729
00:24:36.800 --> 00:24:38.680
of the last revenue ones.

730
00:24:38.680 --> 00:24:41.400
Yeah. It depends how bad you want to get up.

731
00:24:41.400 --> 00:24:42.600
I'm serious.

732
00:24:42.600 --> 00:24:45.200
I gave my best location to a partner

733
00:24:45.200 --> 00:24:47.120
so that I could split.

734
00:24:47.120 --> 00:24:49.960
You said earlier that you have about the same level of margin

735
00:24:49.960 --> 00:24:51.120
between the two locations.

736
00:24:51.120 --> 00:24:52.160
You've got two and three.

737
00:24:52.160 --> 00:24:53.800
It's like if you got three and she got two,

738
00:24:53.800 --> 00:24:56.400
that would be an unfair deal for you.

739
00:24:56.400 --> 00:24:57.400
OK.

740
00:24:57.400 --> 00:25:00.640
It would be that then you're not going to be restrained anymore

741
00:25:00.640 --> 00:25:03.000
and you can go do all the things and you'll be in $550 or $600

742
00:25:03.000 --> 00:25:05.440
or $700 in the next 12 months because you want to do more things.

743
00:25:05.440 --> 00:25:06.200
Yep.

744
00:25:06.200 --> 00:25:07.000
So then fun.

745
00:25:07.000 --> 00:25:08.000
OK.

746
00:25:08.000 --> 00:25:08.840
This is a small business.

747
00:25:08.840 --> 00:25:10.800
You can very quickly change the numbers.

748
00:25:10.800 --> 00:25:11.840
That'll be the easy part.

749
00:25:11.840 --> 00:25:12.800
This is the hard part.

750
00:25:12.800 --> 00:25:13.280
Yeah.

751
00:25:13.280 --> 00:25:14.440
The rest of this is straightforward.

752
00:25:14.440 --> 00:25:15.240
Yeah.

753
00:25:15.240 --> 00:25:16.240
Do you feel all right with that so far?

754
00:25:16.240 --> 00:25:16.640
Yes.

755
00:25:16.640 --> 00:25:17.360
OK.

756
00:25:17.360 --> 00:25:18.240
Let's talk pricing.

757
00:25:18.240 --> 00:25:21.560
I think that you should probably consider a plus 20%

758
00:25:21.560 --> 00:25:24.000
price raise on weekends.

759
00:25:24.000 --> 00:25:26.800
And that's because that's when demand is the highest, right?

760
00:25:26.800 --> 00:25:29.120
If somebody wants off hours, then they get off our prices.

761
00:25:29.120 --> 00:25:31.560
If they want peak hours, then they get peak prices.

762
00:25:31.560 --> 00:25:33.760
And so that'll smooth out the demand within the facility

763
00:25:33.760 --> 00:25:36.480
so that you can actually just get more utilization out of it.

764
00:25:36.480 --> 00:25:39.680
And over time, what will happen is that you'll smooth out the weekdays

765
00:25:39.680 --> 00:25:41.600
but then you'll have even more people in the weekends.

766
00:25:41.600 --> 00:25:42.920
You'll just end up making more.

767
00:25:42.920 --> 00:25:45.360
And I think that'll have a big difference on your profitability.

768
00:25:45.360 --> 00:25:48.400
And so this is where I would experiment with having a weekend search price.

769
00:25:48.400 --> 00:25:49.400
OK.

770
00:25:49.400 --> 00:25:52.000
You're having people just come back whenever.

771
00:25:52.000 --> 00:25:54.080
At the end of every single appointment,

772
00:25:54.080 --> 00:25:57.840
we needed to have a band fam, which is book a meeting from a meeting.

773
00:25:57.840 --> 00:26:00.880
So when they finish with the lashes, they walk them to the front.

774
00:26:00.880 --> 00:26:01.800
And they say, cool.

775
00:26:01.800 --> 00:26:04.520
Your lashes are going to be done in two weeks or three weeks.

776
00:26:04.520 --> 00:26:07.840
Let's just get that on the calendar now because I'm getting booked out pretty quick.

777
00:26:07.840 --> 00:26:09.680
Is there any reason you can't do that?

778
00:26:09.680 --> 00:26:12.840
We do have clients who book their appointment right away.

779
00:26:12.840 --> 00:26:13.760
But not all of them.

780
00:26:13.760 --> 00:26:14.760
Not all.

781
00:26:14.760 --> 00:26:16.800
But if we had all of them do it, we would make more, for sure.

782
00:26:16.800 --> 00:26:20.040
Because even at basic level, if they're coming back every four weeks,

783
00:26:20.040 --> 00:26:23.920
or every five weeks, and we just get them always to come back every three weeks,

784
00:26:23.920 --> 00:26:26.040
you double the amount of times they come back in the year.

785
00:26:26.040 --> 00:26:27.040
Yeah.

786
00:26:27.040 --> 00:26:28.800
That's a lot.

787
00:26:28.800 --> 00:26:30.840
So do you think your team can do that?

788
00:26:30.840 --> 00:26:33.760
Do we get them in the center of two book, three book?

789
00:26:33.760 --> 00:26:35.960
You can, or you can make it the job.

790
00:26:35.960 --> 00:26:40.240
So we do ask them and we do ask the client every time.

791
00:26:40.240 --> 00:26:41.280
Yes, every time.

792
00:26:41.280 --> 00:26:42.560
OK.

793
00:26:42.560 --> 00:26:44.760
Just some of them, you know, they're like, oh,

794
00:26:44.800 --> 00:26:46.560
obligatory, busy.

795
00:26:46.560 --> 00:26:47.040
Yeah.

796
00:26:47.040 --> 00:26:50.480
We would do basic sales training around this because it is fundamentally a sale.

797
00:26:50.480 --> 00:26:53.640
And so if someone's like, hey, I'm not sure it's like, well, totally.

798
00:26:53.640 --> 00:26:55.800
If you want, I'm here and you're here, let's just pull up our calendars.

799
00:26:55.800 --> 00:26:57.200
And that way we can just get it sorted right now.

800
00:26:57.200 --> 00:26:58.680
It's enough to worry about it later.

801
00:26:58.680 --> 00:27:02.000
So it's just like a couple of lines that you can overcome with somebody that,

802
00:27:02.000 --> 00:27:05.400
I mean, if you just train them on like two things to say, if someone says,

803
00:27:05.400 --> 00:27:06.600
I can't do it right now.

804
00:27:06.600 --> 00:27:08.720
And maybe like, I don't have my card on me.

805
00:27:08.720 --> 00:27:10.080
You're like, don't worry, we have the card on file.

806
00:27:10.080 --> 00:27:11.840
And if you want here, let me just pull it up.

807
00:27:11.840 --> 00:27:15.400
This next Saturday work, this is Saturday after that work.

808
00:27:15.400 --> 00:27:19.240
Now, you might find that you have a better time booking the next appointment

809
00:27:19.240 --> 00:27:21.160
before you do the lashes.

810
00:27:21.160 --> 00:27:22.080
OK.

811
00:27:22.080 --> 00:27:23.760
Because I'm sure when they have their lashes done,

812
00:27:23.760 --> 00:27:25.400
they like want to get out the door, right?

813
00:27:25.400 --> 00:27:26.160
Yeah.

814
00:27:26.160 --> 00:27:30.160
But if you book it while they're doing it or before, it's like, they're just sitting there.

815
00:27:30.160 --> 00:27:30.840
Yeah.

816
00:27:30.840 --> 00:27:32.960
So you've got how long does it take to do lashes?

817
00:27:32.960 --> 00:27:33.840
Like an hour.

818
00:27:33.840 --> 00:27:34.520
Right.

819
00:27:34.520 --> 00:27:36.280
So if they're like, I don't have time to figure this out now.

820
00:27:36.280 --> 00:27:39.520
It's like, we have 60 minutes to just get one thing done,

821
00:27:39.520 --> 00:27:41.640
which is like, let's just book the next time you're in.

822
00:27:41.680 --> 00:27:42.520
OK.

823
00:27:42.520 --> 00:27:43.760
Do you feel like that's more reasonable?

824
00:27:43.760 --> 00:27:46.720
Yeah, we can try before they get the lashes done.

825
00:27:46.720 --> 00:27:46.920
Yeah.

826
00:27:46.920 --> 00:27:48.040
That's a good idea.

827
00:27:48.040 --> 00:27:52.400
I prefer to sell before because once someone has gotten the value, they want to leave.

828
00:27:52.400 --> 00:27:52.680
Mm-hmm.

829
00:27:52.680 --> 00:27:55.920
And so I want to do it before they've gotten the value because they're like,

830
00:27:55.920 --> 00:27:57.000
I mean, I want to get this done.

831
00:27:57.000 --> 00:27:57.520
And you're like, great.

832
00:27:57.520 --> 00:27:59.920
When this, these are going to run out in three weeks.

833
00:27:59.920 --> 00:28:01.360
Let's get the next one on the calendar.

834
00:28:01.360 --> 00:28:01.680
OK.

835
00:28:01.680 --> 00:28:07.800
So band thing, we'll just say before, before slash during.

836
00:28:07.800 --> 00:28:12.880
Getting a customer to come back and buy again is absolutely a sales conversation,

837
00:28:12.880 --> 00:28:17.880
though it walks and talks like an administrative conversation, a scheduling conversation.

838
00:28:17.880 --> 00:28:21.880
But a lot of sales conversations look, walk and talk like that, but they're not.

839
00:28:21.880 --> 00:28:25.840
And so we need to treat this conversation and outcome of getting them

840
00:28:25.840 --> 00:28:29.320
booked back in with the proper respect it deserves for the business.

841
00:28:29.320 --> 00:28:32.800
Because if all of a sudden we got 80 or 90% to rebook,

842
00:28:32.800 --> 00:28:36.200
it would dramatically change the outcome of the business.

843
00:28:36.200 --> 00:28:39.440
If that's the case, then we should put a lot of attention to this.

844
00:28:39.440 --> 00:28:41.840
And the nice thing is, is this doesn't even seem that hard,

845
00:28:41.840 --> 00:28:43.840
which are my favorite types of implementations.

846
00:28:43.840 --> 00:28:45.720
Not that hard, hugely impactful.

847
00:28:45.720 --> 00:28:47.680
Now, I do want to talk about the career path.

848
00:28:47.680 --> 00:28:50.000
Does everyone come in and start at 50%?

849
00:28:50.000 --> 00:28:53.120
No, so they start at 40.

850
00:28:53.120 --> 00:28:56.160
Not not, it depends on their experience, OK?

851
00:28:56.160 --> 00:29:00.320
The way that I like organizing something like this is, here, I'll draw it out for you.

852
00:29:00.320 --> 00:29:04.440
Let's say somebody can make eventually, you know, 55%, OK?

853
00:29:04.440 --> 00:29:11.240
So say like 55%, and then we've got 50%, and then we've got 45%.

854
00:29:11.240 --> 00:29:15.960
And then we've got 40%, 35%.

855
00:29:15.960 --> 00:29:17.240
And then third.

856
00:29:17.240 --> 00:29:21.320
All right, let's just say that that's hypothetically our little path here, all right?

857
00:29:21.320 --> 00:29:26.600
So they might start here and they're going to be junior, lash,

858
00:29:26.600 --> 00:29:28.560
you know, technician, whatever.

859
00:29:28.560 --> 00:29:31.960
Now, we can, intermediarily, give them a bump.

860
00:29:31.960 --> 00:29:35.000
But I like to have this basically every three months.

861
00:29:43.480 --> 00:29:48.200
So this gives you almost a two-year time horizon of improvements, where you say cool,

862
00:29:48.200 --> 00:29:54.520
I'm going to get you go from junior to lash tech.

863
00:29:54.520 --> 00:30:02.480
And then you get the raise, and then you go senior, lash tech, tech.

864
00:30:02.480 --> 00:30:07.160
And then you get the raise, and then you get what's another word for technician?

865
00:30:07.160 --> 00:30:08.360
Lash artist.

866
00:30:08.360 --> 00:30:10.200
Perfect, so it's like technician is the first three.

867
00:30:10.200 --> 00:30:16.440
So you go junior, normal senior, and then you go same thing, junior artist,

868
00:30:16.440 --> 00:30:22.440
and then you go artist, and then you go senior artist.

869
00:30:22.440 --> 00:30:27.880
So that gives you six title changes, and six different compensation changes,

870
00:30:27.880 --> 00:30:29.520
and you just do it every three months.

871
00:30:29.520 --> 00:30:33.120
And then when they hit there, they're three month, they're six month, they're nine month,

872
00:30:33.120 --> 00:30:39.880
what you can do is that with the increase of pay, you also unlock training.

873
00:30:39.880 --> 00:30:43.160
As you unlock these new things, we're going to give you another skill,

874
00:30:43.160 --> 00:30:44.680
which you can charge even more money for.

875
00:30:44.680 --> 00:30:47.760
So it just unlocks the earning, because not only do they get higher income,

876
00:30:47.760 --> 00:30:51.080
so basically when you give them the title, they're still at their old pay,

877
00:30:51.080 --> 00:30:53.120
so you give them another skill they can charge more for.

878
00:30:53.120 --> 00:30:54.120
Yeah.

879
00:30:54.120 --> 00:30:55.120
Does that make sense?

880
00:30:55.120 --> 00:30:56.120
Yeah.

881
00:30:56.120 --> 00:30:57.280
And so that way, they're making more money to every level.

882
00:30:57.280 --> 00:30:59.120
One is they just literally get better economics.

883
00:30:59.120 --> 00:31:01.120
The other is that they learn another skill that-

884
00:31:01.120 --> 00:31:02.120
How different title.

885
00:31:02.120 --> 00:31:03.120
Yeah, that they can exactly.

886
00:31:03.120 --> 00:31:04.120
Okay.

887
00:31:04.120 --> 00:31:06.240
Do you feel like you're breaking into like six pieces?

888
00:31:06.240 --> 00:31:07.240
The training?

889
00:31:07.240 --> 00:31:08.240
Yes.

890
00:31:08.240 --> 00:31:09.240
Cool.

891
00:31:09.240 --> 00:31:12.280
And then that gives you a career path that they can work into.

892
00:31:12.280 --> 00:31:16.800
So what we're talking about here is deconstraining a supply-based constraint, which is how she

893
00:31:16.800 --> 00:31:20.080
is going to get more good technicians in each of her locations.

894
00:31:20.080 --> 00:31:22.160
And this is a super common constraint.

895
00:31:22.160 --> 00:31:25.240
And so if you're a business owner and you're being limited either by demand or by your

896
00:31:25.240 --> 00:31:29.640
ability to deliver on the demand, aka supply, we run workshops here at our headquarters

897
00:31:29.640 --> 00:31:30.640
here in Vegas.

898
00:31:30.640 --> 00:31:34.680
And if you like my team to just directly take a look at your business, then you could

899
00:31:34.680 --> 00:31:36.760
just schedule a call with my team.

900
00:31:36.760 --> 00:31:39.920
And as long as we understand the business and we think we could help you out, we'll

901
00:31:39.920 --> 00:31:40.920
invite you out.

902
00:31:40.920 --> 00:31:41.920
So that's interesting.

903
00:31:41.920 --> 00:31:42.920
You can click the link below this video.

904
00:31:42.920 --> 00:31:43.920
Otherwise, enjoy.

905
00:31:43.920 --> 00:31:44.920
I think-

906
00:31:44.920 --> 00:31:45.920
What happened after two years?

907
00:31:46.280 --> 00:31:47.280
Good question.

908
00:31:47.280 --> 00:31:50.720
I like the idea that you had where you have the one girl who's 33%.

909
00:31:50.720 --> 00:31:52.720
I think you just gave too much.

910
00:31:52.720 --> 00:31:56.040
And I think that you gave ownership rather than a profit share.

911
00:31:56.040 --> 00:31:59.560
And so the way that I explain this is- and you can draw this for them or you can have

912
00:31:59.560 --> 00:32:01.360
them watch this, right?

913
00:32:01.360 --> 00:32:03.360
Is that there's four things that you get with ownership.

914
00:32:03.360 --> 00:32:06.520
You've got risk, which I don't know if they want that.

915
00:32:06.520 --> 00:32:09.840
There's control, which right now you're not giving up.

916
00:32:09.840 --> 00:32:15.680
You've got profit, and then you've got a sale, like if you sold the whole business.

917
00:32:15.680 --> 00:32:17.640
Those are the four components of equity.

918
00:32:17.640 --> 00:32:20.200
Now they don't probably want this.

919
00:32:20.200 --> 00:32:21.760
They're not going to get that.

920
00:32:21.760 --> 00:32:25.760
And so what you can do is just give them the profit from the facility, but not ownership

921
00:32:25.760 --> 00:32:26.760
per se.

922
00:32:26.760 --> 00:32:30.120
So it's like, I'm just going to give you this profit share in the form of a bonus.

923
00:32:30.120 --> 00:32:32.680
And you can bonus them out every month.

924
00:32:32.680 --> 00:32:35.800
And so if we want to say, like, what's the end goal?

925
00:32:35.800 --> 00:32:38.600
What do you think would be enough for them to be like, this is cool?

926
00:32:38.600 --> 00:32:39.960
Like, is it a hundred thousand a year?

927
00:32:39.960 --> 00:32:41.840
Like, what's the amount of money that they'd be like?

928
00:32:41.840 --> 00:32:42.840
That's a lot.

929
00:32:42.840 --> 00:32:43.840
I think so.

930
00:32:43.840 --> 00:32:44.840
Okay.

931
00:32:45.200 --> 00:32:49.640
So what we do is I always back into what my on target earnings, it's called OTE, but

932
00:32:49.640 --> 00:32:50.880
I want my own target earnings to be.

933
00:32:50.880 --> 00:32:54.200
So if they're going to be a true owner, then they're not, are they going to be doing

934
00:32:54.200 --> 00:32:55.200
lashes or not?

935
00:32:55.200 --> 00:32:56.200
Yes.

936
00:32:56.200 --> 00:32:57.200
Okay.

937
00:32:57.200 --> 00:33:01.000
I'll tell you where I'm going with this is that I want to create a path where they can

938
00:33:01.000 --> 00:33:03.960
get 20% of the profit of the facility.

939
00:33:03.960 --> 00:33:06.400
And so what you can do is say, cool, you're going to have the opportunity.

940
00:33:06.400 --> 00:33:11.560
Once you pass 24 months, once you pass two years, when I have my next locations that

941
00:33:11.560 --> 00:33:14.760
I'm opening up, I'll be able to place you in one of those new locations.

942
00:33:14.840 --> 00:33:21.040
You can have one of your own, but all for all the money, you'll work.

943
00:33:21.040 --> 00:33:24.600
And you're going to get 10% year one and 20% year two.

944
00:33:24.600 --> 00:33:29.000
So that's four years, but you have to do this extra work.

945
00:33:29.000 --> 00:33:31.040
That's associated with that.

946
00:33:31.040 --> 00:33:34.880
Now the cool thing here is that it's not equity per se so that if they're not doing a good

947
00:33:34.880 --> 00:33:38.200
job, you could say, you know what, maybe you should just be a full time tech.

948
00:33:38.200 --> 00:33:41.160
This much money has to go to getting somebody to run this thing.

949
00:33:41.160 --> 00:33:43.400
And it's either going to be you or it's going to be somebody else.

950
00:33:43.400 --> 00:33:46.000
So I'd rather give it to you because I trust you and I know you.

951
00:33:46.000 --> 00:33:50.240
But this gives you a very long-term career path for that.

952
00:33:50.240 --> 00:33:52.840
So it's like, put your two years in, you're going to continue to make more.

953
00:33:52.840 --> 00:33:56.560
You'll be fully trained up so that eventually you can train other people, which then you

954
00:33:56.560 --> 00:33:57.640
can open the new locations.

955
00:33:57.640 --> 00:34:01.080
And hopefully by two years of every location, open up cash fluid, open another one.

956
00:34:01.080 --> 00:34:02.080
Okay.

957
00:34:02.080 --> 00:34:03.080
For this.

958
00:34:03.080 --> 00:34:04.080
Mm-hmm.

959
00:34:04.080 --> 00:34:05.480
I'd start them at 40 though.

960
00:34:05.480 --> 00:34:06.480
Okay.

961
00:34:06.480 --> 00:34:08.480
I can't start it less.

962
00:34:08.480 --> 00:34:09.480
40%.

963
00:34:09.480 --> 00:34:10.480
Per se.

964
00:34:10.480 --> 00:34:11.480
Yes.

965
00:34:11.480 --> 00:34:13.800
So the new ones, okay.

966
00:34:13.800 --> 00:34:15.600
The new ones you can start lower.

967
00:34:15.600 --> 00:34:16.600
Mm-hmm.

968
00:34:16.600 --> 00:34:19.400
And when you say, stretching out the time, you mean like, instead of three months, can I

969
00:34:19.400 --> 00:34:20.720
do a V6 months?

970
00:34:20.720 --> 00:34:21.720
You could.

971
00:34:21.720 --> 00:34:23.480
I like having more frequent, more frequent bumps.

972
00:34:23.480 --> 00:34:28.800
I'd rather, I'd rather you go 40, 42 and a half, 45, 47 and a half, 50 if you need to break

973
00:34:28.800 --> 00:34:29.800
up the increments.

974
00:34:29.800 --> 00:34:30.800
Okay.

975
00:34:30.800 --> 00:34:32.240
That it's, I actually like the cadence a lot.

976
00:34:32.240 --> 00:34:34.800
I like three months because it's always, it's, it's right there.

977
00:34:34.800 --> 00:34:35.800
Yeah.

978
00:34:35.800 --> 00:34:36.800
Six months sometimes it's too far away.

979
00:34:36.800 --> 00:34:37.800
Okay.

980
00:34:37.800 --> 00:34:38.800
Yes.

981
00:34:38.800 --> 00:34:39.800
Mm-hmm.

982
00:34:39.800 --> 00:34:44.040
Like, if 50, you can just break it into, that's four chunks, plus the four title changes,

983
00:34:44.040 --> 00:34:45.040
that's eight chunks.

984
00:34:45.040 --> 00:34:46.040
Okay.

985
00:34:46.040 --> 00:34:47.040
Does that work okay?

986
00:34:47.040 --> 00:34:49.000
And you could do it every four months and that still gets to your two years.

987
00:34:49.000 --> 00:34:50.000
Yes.

988
00:34:50.000 --> 00:34:51.000
That's doable.

989
00:34:51.000 --> 00:34:52.000
Yes.

990
00:34:52.000 --> 00:34:53.000
Do you like this?

991
00:34:53.000 --> 00:34:54.000
Yes.

992
00:34:54.000 --> 00:34:55.000
Okay.

993
00:34:55.000 --> 00:34:56.000
And to be clear, you're saying, I'm not going to give you a facility when you get here.

994
00:34:56.000 --> 00:34:57.000
I'm going to see you qualify.

995
00:34:57.000 --> 00:34:58.000
Yeah.

996
00:34:58.000 --> 00:34:59.000
But you're going to compete against all the other girls who are at two years.

997
00:34:59.000 --> 00:35:00.000
So you've got to be the best one.

998
00:35:00.000 --> 00:35:01.000
Yeah.

999
00:35:01.000 --> 00:35:02.000
Because I'm going to give it to the best person.

1000
00:35:02.000 --> 00:35:03.000
Yeah.

1001
00:35:03.000 --> 00:35:04.000
That way there's some competitiveness.

1002
00:35:04.000 --> 00:35:05.000
Mm-hmm.

1003
00:35:05.000 --> 00:35:06.000
Cool?

1004
00:35:06.000 --> 00:35:07.000
Yeah.

1005
00:35:07.000 --> 00:35:08.000
Okay.

1006
00:35:08.000 --> 00:35:09.000
Great.

1007
00:35:09.200 --> 00:35:10.600
Let's talk about the membership.

1008
00:35:10.600 --> 00:35:14.200
What ideas you currently have for the membership that you want to sell on the back of?

1009
00:35:14.200 --> 00:35:20.000
Right now we have a monthly membership, a six months and 12 months.

1010
00:35:20.000 --> 00:35:21.000
Okay.

1011
00:35:21.000 --> 00:35:22.000
Are they paying up front?

1012
00:35:22.000 --> 00:35:23.000
Yes.

1013
00:35:23.000 --> 00:35:25.000
They pay up front for the whole six months?

1014
00:35:25.000 --> 00:35:26.000
Yes.

1015
00:35:26.000 --> 00:35:27.000
No, I love it.

1016
00:35:27.000 --> 00:35:28.000
No, I love it.

1017
00:35:28.000 --> 00:35:29.000
It's great.

1018
00:35:29.000 --> 00:35:31.000
So for the monthly one, they're not...

1019
00:35:31.000 --> 00:35:32.000
What do they pay for six?

1020
00:35:32.000 --> 00:35:33.000
And what do they pay for 12?

1021
00:35:33.000 --> 00:35:35.000
Depends on the type of fields that they're getting now.

1022
00:35:35.000 --> 00:35:36.000
Mm-hmm.

1023
00:35:36.000 --> 00:35:38.000
And we'd multiply it by six months.

1024
00:35:38.000 --> 00:35:39.000
Okay.

1025
00:35:39.000 --> 00:35:40.000
What's the discount?

1026
00:35:40.000 --> 00:35:44.000
Five to six months is 10% and 12 months is 15%.

1027
00:35:44.000 --> 00:35:45.000
Okay.

1028
00:35:45.000 --> 00:35:48.600
And then 15% got it.

1029
00:35:48.600 --> 00:35:50.000
You a lot of people do this?

1030
00:35:50.000 --> 00:35:51.000
I haven't.

1031
00:35:51.000 --> 00:35:52.000
Okay.

1032
00:35:52.000 --> 00:35:53.000
You haven't done it yet.

1033
00:35:53.000 --> 00:35:54.000
No.

1034
00:35:54.000 --> 00:35:55.000
Okay.

1035
00:35:55.000 --> 00:35:56.000
Just.

1036
00:35:56.000 --> 00:35:57.000
So let me give you some ideas on this.

1037
00:35:57.000 --> 00:36:00.000
So first off, I would rather you give away free stuff than discount if you can.

1038
00:36:00.000 --> 00:36:01.000
Mm-hmm.

1039
00:36:01.000 --> 00:36:02.000
Because one, it'll be cheaper for you.

1040
00:36:02.000 --> 00:36:03.000
Yeah.

1041
00:36:03.000 --> 00:36:04.000
Because your costs are so low.

1042
00:36:04.000 --> 00:36:10.000
The value of whatever it is, more than 10% off, which you can do for less than the 10%

1043
00:36:10.000 --> 00:36:11.000
of the cost.

1044
00:36:11.000 --> 00:36:16.000
Because I'll get you a bet that the actual cost of stuff is, I don't know, nothing.

1045
00:36:16.000 --> 00:36:17.000
Almost for the lashes.

1046
00:36:17.000 --> 00:36:18.000
I'm guessing.

1047
00:36:18.000 --> 00:36:19.000
Yeah.

1048
00:36:19.000 --> 00:36:20.000
Right.

1049
00:36:20.000 --> 00:36:24.000
So what kind of free thing could you add in that would be like, you know, valuable for them?

1050
00:36:24.000 --> 00:36:29.000
Well, I already add in the free facials for those.

1051
00:36:29.000 --> 00:36:30.000
Okay.

1052
00:36:31.000 --> 00:36:35.000
For the monthly one, the price don't change, but I do have a lot of benefits.

1053
00:36:35.000 --> 00:36:38.000
So you give them facials for free when they come in?

1054
00:36:38.000 --> 00:36:39.000
Mm-hmm.

1055
00:36:39.000 --> 00:36:40.000
Okay.

1056
00:36:40.000 --> 00:36:41.000
What else do you give them?

1057
00:36:41.000 --> 00:36:42.000
Just discount products.

1058
00:36:42.000 --> 00:36:43.000
Okay.

1059
00:36:43.000 --> 00:36:48.000
And we also increase our referral from $10 to $50 if they are a member.

1060
00:36:48.000 --> 00:36:49.000
Okay.

1061
00:36:49.000 --> 00:36:50.000
Okay.

1062
00:36:50.000 --> 00:36:51.000
I like all that.

1063
00:36:51.000 --> 00:36:56.000
And then just anniversary gifts and birthday gifts.

1064
00:36:56.000 --> 00:36:58.000
Really good.

1065
00:36:59.000 --> 00:37:00.000
Do you look at our stuff?

1066
00:37:00.000 --> 00:37:01.000
This is good.

1067
00:37:01.000 --> 00:37:02.000
Yeah.

1068
00:37:02.000 --> 00:37:03.000
Yeah.

1069
00:37:03.000 --> 00:37:04.000
No, it's good.

1070
00:37:04.000 --> 00:37:05.000
A anniversary and then birthday.

1071
00:37:05.000 --> 00:37:06.000
Well value, but don't.

1072
00:37:06.000 --> 00:37:07.000
You don't have to change the price.

1073
00:37:07.000 --> 00:37:08.000
Yeah.

1074
00:37:08.000 --> 00:37:09.000
No, I love it.

1075
00:37:09.000 --> 00:37:12.000
So I want to understand what makes this membership that you want to roll out compelling.

1076
00:37:12.000 --> 00:37:15.000
Because sometimes people just roll out memberships that are just discount based memberships.

1077
00:37:15.000 --> 00:37:18.000
And like, not my favorite way to roll out a membership.

1078
00:37:18.000 --> 00:37:20.000
I want to add some significant benefits.

1079
00:37:20.000 --> 00:37:23.000
So it's like, you want to take away bad stuff, which would be money and add good stuff, which would be value.

1080
00:37:24.000 --> 00:37:31.000
I want to make it a dare I say dare I say an offer so good people would feel stupid saying no.

1081
00:37:31.000 --> 00:37:34.000
And so what I'm going over here is what are the bonuses?

1082
00:37:34.000 --> 00:37:37.000
And so if you're like, ah, I'd love to know how to structure bonuses.

1083
00:37:37.000 --> 00:37:43.000
The good news is I have an entire chapter on how to structure bonuses inside my offers book on page 117.

1084
00:37:43.000 --> 00:37:47.000
So how do you splinter stack what you have, pull out the different components,

1085
00:37:47.000 --> 00:37:52.000
order them in such a way that they're the most compelling as possible to each avatar.

1086
00:37:53.000 --> 00:37:59.000
And I will say this, I think people kind of sit on this continuum of like they have no bonuses or they offer like 100 bonuses.

1087
00:37:59.000 --> 00:38:08.000
I think the magic is actually in the middle is you want to have each bonus in and of itself be worth the same value as the overall price.

1088
00:38:08.000 --> 00:38:11.000
And so that someone could just say, I would do it only for this.

1089
00:38:11.000 --> 00:38:13.000
I would do it only for the free facials.

1090
00:38:13.000 --> 00:38:16.000
Now, would they do it only for the bump and referral bonus? Probably not.

1091
00:38:16.000 --> 00:38:18.000
Would they do it only for the discount? Maybe.

1092
00:38:18.000 --> 00:38:27.000
But to me, up to this point, the most compelling thing she brought up was that they would get facials every time they come in, which I think is not a bad, not a bad thing.

1093
00:38:27.000 --> 00:38:29.000
Let's see if there's something else that we can put up.

1094
00:38:29.000 --> 00:38:32.000
So one other thing that you could consider doing and I think this makes it kind of fun.

1095
00:38:32.000 --> 00:38:40.000
It's up to you is you could have a little sweepstake or every month they're entered into kind of a giveaway where they get something cool.

1096
00:38:40.000 --> 00:38:46.000
And then that way when you select the winner, you can then advertise it kind of all over the place.

1097
00:38:46.000 --> 00:38:52.000
And also if the person who if they were referred by somebody, the person who referred them wins too.

1098
00:38:52.000 --> 00:38:58.000
So that'll give them a really strong incentive to refer as many people as possible because those get as many chances as possible win.

1099
00:38:58.000 --> 00:39:05.000
And so I think you should be like, say, I'm thinking like something like $200 to $500 of it has to be enough that they should be excited about it.

1100
00:39:05.000 --> 00:39:13.000
So just like one last thing that like maybe, but like I think if you was like $500 with like whatever the full suite, you know, deal is you give it to one person a month.

1101
00:39:13.000 --> 00:39:16.000
I think that's very exciting from marketing perspective thought he's got the business.

1102
00:39:16.000 --> 00:39:17.000
Yeah.

1103
00:39:17.000 --> 00:39:18.000
So work.

1104
00:39:18.000 --> 00:39:19.000
Yes.

1105
00:39:19.000 --> 00:39:20.000
Okay. So how are we going to sell it?

1106
00:39:20.000 --> 00:39:26.000
So someone comes online, they put their card down, they show up in person for, you know, the $99 promo, right?

1107
00:39:26.000 --> 00:39:30.000
While they're there, we're going to try and book their next appointment before they even start or during the during the appointment.

1108
00:39:30.000 --> 00:39:31.000
We're going to get them booked for the next one.

1109
00:39:31.000 --> 00:39:32.000
Okay.

1110
00:39:32.000 --> 00:39:33.000
Okay.

1111
00:39:33.000 --> 00:39:37.000
Where are we going to do the upsell for the service or the membership membership?

1112
00:39:37.000 --> 00:39:39.000
Now I'm starting with the clients who are already coming.

1113
00:39:39.000 --> 00:39:40.000
Okay.

1114
00:39:40.000 --> 00:39:41.000
So they're recurring.

1115
00:39:41.000 --> 00:39:42.000
Yes.

1116
00:39:42.000 --> 00:39:43.000
Okay.

1117
00:39:43.000 --> 00:39:45.000
And I say, why don't you try the memberships?

1118
00:39:45.000 --> 00:39:46.000
You're paying the same amount.

1119
00:39:46.000 --> 00:39:48.000
You're paying now every two weeks.

1120
00:39:48.000 --> 00:39:49.000
Should you get all this stuff?

1121
00:39:49.000 --> 00:39:50.000
Yeah.

1122
00:39:50.000 --> 00:39:51.000
But then now you get all this stuff.

1123
00:39:51.000 --> 00:39:53.000
And then you also get a free facial.

1124
00:39:53.000 --> 00:39:54.000
Yeah.

1125
00:39:54.000 --> 00:39:55.000
Just I up today.

1126
00:39:55.000 --> 00:39:56.000
Yeah.

1127
00:39:56.000 --> 00:39:58.000
I only ask like a handful of clients.

1128
00:39:58.000 --> 00:39:59.000
Okay.

1129
00:39:59.000 --> 00:40:01.000
And how many people said yes?

1130
00:40:01.000 --> 00:40:02.000
One, two.

1131
00:40:02.000 --> 00:40:03.000
Out of.

1132
00:40:03.000 --> 00:40:04.000
Out of like five.

1133
00:40:04.000 --> 00:40:05.000
Okay.

1134
00:40:05.000 --> 00:40:06.000
It's not bad.

1135
00:40:06.000 --> 00:40:08.000
The one thing that I would do is the facials right now, if they say yes.

1136
00:40:08.000 --> 00:40:09.000
Mm-hmm.

1137
00:40:09.000 --> 00:40:10.000
Okay.

1138
00:40:10.000 --> 00:40:11.000
That's good.

1139
00:40:11.000 --> 00:40:12.000
Immediate bonus is strong.

1140
00:40:12.000 --> 00:40:14.000
I mean, if we percent's not bad.

1141
00:40:14.000 --> 00:40:17.000
I would like it to be like 70 though.

1142
00:40:17.000 --> 00:40:19.000
I want to have more reps you just need.

1143
00:40:19.000 --> 00:40:20.000
Yeah.

1144
00:40:20.000 --> 00:40:21.000
I think just offer more.

1145
00:40:21.000 --> 00:40:22.000
Yeah.

1146
00:40:22.000 --> 00:40:26.000
Because it's because basically I think you have to get into the conversation and kind of learn the flow of it.

1147
00:40:26.000 --> 00:40:29.000
But I would imagine if you say, hey.

1148
00:40:29.000 --> 00:40:31.000
Did you want to get like some of these free things?

1149
00:40:31.000 --> 00:40:32.000
And they'll probably say yes.

1150
00:40:32.000 --> 00:40:33.000
And it's like cool.

1151
00:40:33.000 --> 00:40:34.000
It doesn't cost you anymore.

1152
00:40:34.000 --> 00:40:35.000
And then be like, oh, great.

1153
00:40:35.000 --> 00:40:36.000
How do I do that?

1154
00:40:36.000 --> 00:40:37.000
It's like just out of the membership.

1155
00:40:37.000 --> 00:40:44.000
And the way that I'd start it is say, you've been here.

1156
00:40:44.000 --> 00:40:50.000
Especially if you're upselling existing customers, you know, six times in the last, you know,

1157
00:40:50.000 --> 00:40:51.000
whatever, six months.

1158
00:40:51.000 --> 00:40:52.000
Yeah.

1159
00:40:52.000 --> 00:40:53.000
Doesn't really matter.

1160
00:40:53.000 --> 00:40:54.000
So just look up the CRM.

1161
00:40:54.000 --> 00:40:55.000
How many times have you been here?

1162
00:40:55.000 --> 00:40:58.000
So like, hey, Charlie, you've been here, you know, six times the last six months.

1163
00:40:58.000 --> 00:41:01.000
I realized that you haven't been getting any of this free stuff.

1164
00:41:01.000 --> 00:41:03.000
Did you know that you were supposed to get that?

1165
00:41:03.000 --> 00:41:04.000
And I'm like, I didn't know.

1166
00:41:04.000 --> 00:41:07.000
It's like, yeah, all you have to do is just sign up as one of the members.

1167
00:41:07.000 --> 00:41:09.000
You pay nothing more than you're currently paying.

1168
00:41:09.000 --> 00:41:12.000
But you just get all of these things that you should already be getting because you've already.

1169
00:41:12.000 --> 00:41:15.000
Because like if we can frame it on the fact that they should have already been getting it,

1170
00:41:15.000 --> 00:41:19.000
it's kind of like a default close rather than trying to get them to opt into something.

1171
00:41:19.000 --> 00:41:24.000
I want the positioning to be like, you've already been paying for it and opted in for it.

1172
00:41:24.000 --> 00:41:26.000
Now we just need to formalize it.

1173
00:41:26.000 --> 00:41:33.000
I remember reading a study in a book called, I think it was like 50 scientific ways to get to yes.

1174
00:41:33.000 --> 00:41:40.000
And one of the things they talked about in the book was that one country was able to get like 80% of people to opt in to be organ donor.

1175
00:41:40.000 --> 00:41:43.000
Whereas other countries average like 10%.

1176
00:41:43.000 --> 00:41:49.000
And the one thing that that country did is they had people opt out of being an organ donor rather than opt into it.

1177
00:41:49.000 --> 00:41:54.000
And so to me that almost permanently changed how I saw upselling.

1178
00:41:54.000 --> 00:42:01.000
Which is how do I make the thing that I want someone to do appear like the default option as then they have to opt out of it.

1179
00:42:01.000 --> 00:42:07.000
And so the way that I'm trying to frame this upsell for any is that, hey, you've already opted into this membership.

1180
00:42:07.000 --> 00:42:09.000
You just haven't been getting the bonuses.

1181
00:42:09.000 --> 00:42:15.000
So let's just like formalize you getting what you already should have been getting rather than do you want to do this new thing.

1182
00:42:15.000 --> 00:42:18.000
So upsells in a true new sale scenario.

1183
00:42:18.000 --> 00:42:22.000
You might be at 30-ish percent, 20 to 40, whatever.

1184
00:42:22.000 --> 00:42:24.000
And that's the numbers that she's getting, which is fairly typical.

1185
00:42:24.000 --> 00:42:30.000
But if we can structure it so that it feels like a default close or an assumed close based on past behavior.

1186
00:42:30.000 --> 00:42:34.000
We might overnight be at those 80, 90% close rates, which is where I want it to be.

1187
00:42:34.000 --> 00:42:37.000
More you can get it to be like, oh, you should already have this.

1188
00:42:37.000 --> 00:42:41.000
And the less pressure it is, the more likely than they're like, yeah, okay, sign me up.

1189
00:42:41.000 --> 00:42:43.000
How are you actually facilitating the transaction?

1190
00:42:43.000 --> 00:42:45.000
You have the card on file, right?

1191
00:42:45.000 --> 00:42:46.000
Yes.

1192
00:42:46.000 --> 00:42:50.000
So do you say, hey, we can just use the card you haven't filed?

1193
00:42:50.000 --> 00:42:51.000
Do you say that?

1194
00:42:51.000 --> 00:42:54.000
No, because I haven't asked that many.

1195
00:42:54.000 --> 00:42:58.000
Okay. Well, I would have that as my actual final CCA.

1196
00:42:58.000 --> 00:43:02.000
Is that way you can say, hey, if yes, I'll give you the official right now.

1197
00:43:02.000 --> 00:43:04.000
And we'll get you booked for the next time you're out here.

1198
00:43:04.000 --> 00:43:06.000
You also get a facial then too.

1199
00:43:06.000 --> 00:43:07.000
And you get some of these other things.

1200
00:43:07.000 --> 00:43:08.000
And we come to the front.

1201
00:43:08.000 --> 00:43:09.000
Card on file work.

1202
00:43:09.000 --> 00:43:10.000
Great.

1203
00:43:10.000 --> 00:43:13.000
And then that way when they check out, boom, it's done.

1204
00:43:13.000 --> 00:43:14.000
They're on recurring.

1205
00:43:14.000 --> 00:43:16.000
And they just sign the thing and then they're in.

1206
00:43:16.000 --> 00:43:17.000
Yeah.

1207
00:43:17.000 --> 00:43:18.000
Seemless.

1208
00:43:18.000 --> 00:43:19.000
What if they don't rebook?

1209
00:43:19.000 --> 00:43:21.000
They don't rebook to be fair.

1210
00:43:21.000 --> 00:43:24.000
The rebook is an easier sale than the membership.

1211
00:43:24.000 --> 00:43:26.000
We have to first be able to get close to people on rebooking.

1212
00:43:26.000 --> 00:43:29.000
If someone's not going to come back again, they're definitely not buying a membership.

1213
00:43:29.000 --> 00:43:30.000
Yeah.

1214
00:43:30.000 --> 00:43:34.000
So we got it like, like we, we put in the door, like get the small win.

1215
00:43:34.000 --> 00:43:35.000
Yeah.

1216
00:43:35.000 --> 00:43:37.000
And then offer free stuff and then go for the membership.

1217
00:43:37.000 --> 00:43:38.000
Okay.

1218
00:43:39.000 --> 00:43:40.000
Do that make sense though?

1219
00:43:40.000 --> 00:43:41.000
Yes.

1220
00:43:41.000 --> 00:43:42.000
Okay.

1221
00:43:42.000 --> 00:43:45.000
So that's how I would pitch it for the existing people.

1222
00:43:45.000 --> 00:43:48.000
Do I bother to sell those six and 12 months at all?

1223
00:43:48.000 --> 00:43:50.000
Or I'll leave people asked.

1224
00:43:50.000 --> 00:43:52.000
So that's a different sale.

1225
00:43:52.000 --> 00:43:56.000
So the way it actually would work is that after they say yes to the membership.

1226
00:43:56.000 --> 00:43:59.000
You then say, would you want to save some money?

1227
00:43:59.000 --> 00:44:00.000
Okay.

1228
00:44:00.000 --> 00:44:03.000
And then you say, cool, if you want to save some money, you can prepay it today.

1229
00:44:03.000 --> 00:44:05.000
Would you prefer 12 or 6?

1230
00:44:05.000 --> 00:44:06.000
Like you're getting into a sales business.

1231
00:44:06.000 --> 00:44:07.000
Yeah.

1232
00:44:07.000 --> 00:44:08.000
That's how it works.

1233
00:44:08.000 --> 00:44:12.000
The reason prepayment for membership is so valuable is one, people who prepay turn at a significantly

1234
00:44:12.000 --> 00:44:13.000
lower percentage.

1235
00:44:13.000 --> 00:44:17.000
Number two, it pulls cash forward for the business, which allows you to grow more rapidly.

1236
00:44:17.000 --> 00:44:19.000
If you want to, pay people more aggressively.

1237
00:44:19.000 --> 00:44:22.000
And fundamentally, cash today is always worth more than cash in the future.

1238
00:44:22.000 --> 00:44:27.000
And I would say third and maybe more importantly, if they're prepaying for the year, it's unlikely

1239
00:44:27.000 --> 00:44:28.000
they're going to go somebody else.

1240
00:44:28.000 --> 00:44:31.000
So you basically lock in the customer for all of the future business.

1241
00:44:31.000 --> 00:44:34.000
Rather than maybe they're only going to come four more times this year.

1242
00:44:34.000 --> 00:44:37.000
And they're going to mix and match between you and two other places.

1243
00:44:37.000 --> 00:44:38.000
I'm going to draw this up.

1244
00:44:38.000 --> 00:44:39.000
I think it's worthwhile.

1245
00:44:39.000 --> 00:44:41.000
So first we bamfam the appointment.

1246
00:44:41.000 --> 00:44:43.000
We have to get the next booking.

1247
00:44:43.000 --> 00:44:44.000
Then we have our free offer.

1248
00:44:44.000 --> 00:44:45.000
That's kind of the beat.

1249
00:44:45.000 --> 00:44:46.000
Right?

1250
00:44:46.000 --> 00:44:47.000
We have our free offer.

1251
00:44:47.000 --> 00:44:49.000
They say, yes, I want the free eyebrows.

1252
00:44:49.000 --> 00:44:50.000
And we say, cool.

1253
00:44:50.000 --> 00:44:51.000
So we already know when you're coming back.

1254
00:44:51.000 --> 00:44:53.000
So you might as well just sign up for the membership.

1255
00:44:53.000 --> 00:44:54.000
Yes.

1256
00:44:54.000 --> 00:44:55.000
So now we have our membership.

1257
00:44:55.000 --> 00:44:58.000
Yes, if they say, we're already in on the membership just from one tip.

1258
00:44:58.000 --> 00:45:00.000
This happens separately from when they check out.

1259
00:45:00.000 --> 00:45:02.000
So this is at the station.

1260
00:45:02.000 --> 00:45:05.000
When they go up to check out, then we say.

1261
00:45:05.000 --> 00:45:07.000
I want to save somebody.

1262
00:45:07.000 --> 00:45:11.000
Save whatever $150.

1263
00:45:11.000 --> 00:45:13.000
Now they're going to be looking at their bill.

1264
00:45:13.000 --> 00:45:14.000
And it's almost the whole bill.

1265
00:45:14.000 --> 00:45:16.000
So they're like, yeah.

1266
00:45:16.000 --> 00:45:17.000
I want to save $150.

1267
00:45:17.000 --> 00:45:18.000
It's like awesome.

1268
00:45:18.000 --> 00:45:20.000
Pre-pay.

1269
00:45:20.000 --> 00:45:23.000
The next 12th.

1270
00:45:23.000 --> 00:45:25.000
And if they're like, oh, I don't want to do that.

1271
00:45:25.000 --> 00:45:27.000
You're like, oh, if you want, we could just pre-pay to six.

1272
00:45:27.000 --> 00:45:30.000
You want to do six?

1273
00:45:30.000 --> 00:45:31.000
That way you can save them one.

1274
00:45:31.000 --> 00:45:32.000
Yeah.

1275
00:45:32.000 --> 00:45:33.000
But to make it really sexy.

1276
00:45:33.000 --> 00:45:35.000
Is you say, oh, do you want the data to be free?

1277
00:45:35.000 --> 00:45:36.000
Because they're out to check out.

1278
00:45:36.000 --> 00:45:37.000
They're right there.

1279
00:45:37.000 --> 00:45:38.000
The cards on file.

1280
00:45:38.000 --> 00:45:39.000
They're about to leave.

1281
00:45:39.000 --> 00:45:40.000
Do you want the data to be free?

1282
00:45:40.000 --> 00:45:41.000
Oh, cool.

1283
00:45:41.000 --> 00:45:42.000
Just sign up for the next 12.

1284
00:45:42.000 --> 00:45:43.000
Okay.

1285
00:45:43.000 --> 00:45:44.000
We already have the next time you're here.

1286
00:45:44.000 --> 00:45:45.000
So you're good to go.

1287
00:45:45.000 --> 00:45:46.000
Just check the box.

1288
00:45:46.000 --> 00:45:48.000
Now that to be clear is going to be off.

1289
00:45:48.000 --> 00:45:50.000
What you're going to save for the next year.

1290
00:45:50.000 --> 00:45:52.000
But we'll apply the first discount tonight.

1291
00:45:52.000 --> 00:45:53.000
Feel aware of that?

1292
00:45:53.000 --> 00:45:54.000
Is that too complicated?

1293
00:45:54.000 --> 00:45:55.000
No, I'm not good.

1294
00:45:55.000 --> 00:45:56.000
But it's just...

1295
00:45:56.000 --> 00:45:57.000
It's just awarding.

1296
00:45:57.000 --> 00:45:58.000
Yeah, for sure.

1297
00:45:58.000 --> 00:45:59.000
This is training.

1298
00:45:59.000 --> 00:46:00.000
This is how you train stuff to do this.

1299
00:46:00.000 --> 00:46:01.000
I need the recording.

1300
00:46:01.000 --> 00:46:02.000
Yeah.

1301
00:46:02.000 --> 00:46:04.000
So I can learn it and then train other people.

1302
00:46:04.000 --> 00:46:05.000
Yes.

1303
00:46:05.000 --> 00:46:06.000
The training of the people's hard part.

1304
00:46:06.000 --> 00:46:08.000
Well, why don't we just cover the training right now?

1305
00:46:08.000 --> 00:46:11.400
So if you're in a service business, you're in the recruiting hiring and training business

1306
00:46:11.400 --> 00:46:12.400
for the most part.

1307
00:46:12.400 --> 00:46:15.000
Because selling lashes to me is not super hard.

1308
00:46:15.000 --> 00:46:19.600
Like, beauty in general, it's not difficult to sell because people just go in and they

1309
00:46:19.600 --> 00:46:20.600
look better.

1310
00:46:20.600 --> 00:46:24.400
So it's a very easy sale compared to like, hey, work out for a year and wake up early

1311
00:46:24.400 --> 00:46:26.000
and stop eating the foods you love.

1312
00:46:26.000 --> 00:46:27.000
Much harder sale.

1313
00:46:27.000 --> 00:46:31.640
The real thing that will scale this brand is her ability to scale training to new people

1314
00:46:31.640 --> 00:46:32.880
who come in the door.

1315
00:46:32.880 --> 00:46:36.680
And the arbitrage of the business is being able to get someone in who has low scale, train

1316
00:46:36.680 --> 00:46:41.000
them up on your system and then be able to charge a higher rate for what that skill commands

1317
00:46:41.000 --> 00:46:42.000
in the marketplace.

1318
00:46:42.000 --> 00:46:46.280
And so basically the arbitrage of, I can train someone in a week and take them and pay

1319
00:46:46.280 --> 00:46:50.240
them what I got them to say yes to on the way in.

1320
00:46:50.240 --> 00:46:55.240
And then with the added training that I'm paying for, I can now make this spread on what

1321
00:46:55.240 --> 00:46:57.320
the market now values this new skill at.

1322
00:46:57.320 --> 00:47:01.840
And fundamentally that arbitrage is what exists in service businesses and how service businesses

1323
00:47:01.840 --> 00:47:02.840
make money.

1324
00:47:02.840 --> 00:47:05.080
So she's got to be able to teach other people how to do this.

1325
00:47:05.080 --> 00:47:09.120
The way that you have to train this is that you have to basically have them come in 30

1326
00:47:09.120 --> 00:47:12.480
minutes early or whatever, you know, whatever the gaps are during the day.

1327
00:47:12.480 --> 00:47:14.720
And honestly, like, this is going to sound crazy.

1328
00:47:14.720 --> 00:47:17.720
Like every day for 30 minutes, they roleplay with each other.

1329
00:47:17.720 --> 00:47:21.720
If you have four girls there, it's two and two and one person's in the chair and they

1330
00:47:21.720 --> 00:47:22.720
do the first part.

1331
00:47:22.720 --> 00:47:23.720
Pay so it's time to come in.

1332
00:47:23.720 --> 00:47:25.840
And then you have to, well, I'm not sure.

1333
00:47:25.840 --> 00:47:27.840
And then it's like, well, let's pull up your calendar.

1334
00:47:27.840 --> 00:47:32.160
Like, I'll tell you what days I have open, if you want to do it with me, then they should

1335
00:47:32.160 --> 00:47:33.760
be incentivized to do it because they want to get the money.

1336
00:47:33.760 --> 00:47:36.400
And they only have to train the front desk.

1337
00:47:36.400 --> 00:47:37.400
One good, one looking.

1338
00:47:37.400 --> 00:47:38.400
That's fine.

1339
00:47:38.400 --> 00:47:39.400
Then it's even easier.

1340
00:47:39.400 --> 00:47:40.400
So you just have to roleplay with them.

1341
00:47:40.400 --> 00:47:43.080
Don't just say here, say these words, it's not going to work.

1342
00:47:43.080 --> 00:47:45.400
It's just repetition over and over and over again.

1343
00:47:45.400 --> 00:47:46.400
It's just MS up.

1344
00:47:46.400 --> 00:47:47.400
Say cool.

1345
00:47:47.400 --> 00:47:48.400
Say like this, try it again.

1346
00:47:48.400 --> 00:47:49.400
Say like this, try it again.

1347
00:47:49.400 --> 00:47:50.400
You did great.

1348
00:47:50.400 --> 00:47:51.400
Do it five more times.

1349
00:47:51.400 --> 00:47:52.400
Right?

1350
00:47:52.400 --> 00:47:53.400
And we'll chart for the top again.

1351
00:47:53.400 --> 00:47:54.400
It's just a ton of repetition.

1352
00:47:54.400 --> 00:47:55.400
Yeah.

1353
00:47:55.400 --> 00:47:58.400
And then when somebody comes in, they'll probably say it the right way.

1354
00:47:58.400 --> 00:47:59.400
Okay.

1355
00:47:59.400 --> 00:48:00.400
Okay.

1356
00:48:00.400 --> 00:48:01.400
All right.

1357
00:48:01.400 --> 00:48:02.400
So last piece is really just the ads and attribution.

1358
00:48:02.400 --> 00:48:05.400
So this is actually very integrated into the brick and mortar.

1359
00:48:05.400 --> 00:48:06.400
Okay.

1360
00:48:06.400 --> 00:48:10.720
So when someone walks in, so this is during, right?

1361
00:48:10.720 --> 00:48:15.200
This is after, which is these ones.

1362
00:48:16.200 --> 00:48:17.360
That's after.

1363
00:48:17.360 --> 00:48:20.920
And then I know this is looks weird, but this is before.

1364
00:48:20.920 --> 00:48:26.120
So when someone walks in the door, what we want is we want to immediately get their ID.

1365
00:48:26.120 --> 00:48:27.720
So hey, do you have your ID on you?

1366
00:48:27.720 --> 00:48:31.760
As soon as they walk in, that confirms the appointment.

1367
00:48:31.760 --> 00:48:32.760
Then you say great.

1368
00:48:32.760 --> 00:48:36.800
Do you have the card that you want to put down today for to pay for the thing?

1369
00:48:36.800 --> 00:48:39.640
So they already have that quantify when a book.

1370
00:48:39.640 --> 00:48:40.640
Good.

1371
00:48:40.640 --> 00:48:41.640
So we're just confirming it.

1372
00:48:41.640 --> 00:48:42.640
Yeah.

1373
00:48:42.640 --> 00:48:45.960
The next piece is great sign in.

1374
00:48:45.960 --> 00:48:50.920
And on the sign in, we want to have the drop down of where they came from.

1375
00:48:50.920 --> 00:48:53.960
That way we can have our attribution for the marketing.

1376
00:48:53.960 --> 00:48:57.640
And the referral code if someone's getting some sort of referral benefit.

1377
00:48:57.640 --> 00:49:00.840
The longer you stay in business, the more you are compensated by the quality of your

1378
00:49:00.840 --> 00:49:03.440
decisions, not how hard or how long you work.

1379
00:49:03.440 --> 00:49:07.760
As you increase leverage in your career, you want to make better and better decisions.

1380
00:49:07.760 --> 00:49:11.680
And one of the easiest ways to make better decisions is have good clean data.

1381
00:49:11.680 --> 00:49:15.200
And so you can always just do posted notes and duct tape in the beginning.

1382
00:49:15.200 --> 00:49:16.200
And that's how a lot of people start.

1383
00:49:16.200 --> 00:49:17.200
There's nothing wrong with that.

1384
00:49:17.200 --> 00:49:22.000
But at some point, you have to make bigger and bigger bets on where you're going to invest,

1385
00:49:22.000 --> 00:49:24.720
where you're going to grow, how you're going to expand.

1386
00:49:24.720 --> 00:49:28.680
And in order to make these irreversible bets, we need to collect the data so we don't

1387
00:49:28.680 --> 00:49:30.680
bet the farm on something that's a loser.

1388
00:49:30.680 --> 00:49:33.160
So that way when every single person walks in, it's like, great.

1389
00:49:33.160 --> 00:49:34.160
You have a right, Daniel.

1390
00:49:34.160 --> 00:49:35.160
Awesome.

1391
00:49:35.160 --> 00:49:36.160
Cool.

1392
00:49:36.160 --> 00:49:37.160
Is this the card you want to use for today?

1393
00:49:37.160 --> 00:49:38.160
Just confirming.

1394
00:49:38.160 --> 00:49:39.160
Because sometimes people want to change their card out.

1395
00:49:39.320 --> 00:49:40.520
You're like, awesome.

1396
00:49:40.520 --> 00:49:41.840
Can you sign in right here?

1397
00:49:41.840 --> 00:49:42.880
Where do you hear about us?

1398
00:49:42.880 --> 00:49:43.880
Great.

1399
00:49:43.880 --> 00:49:44.880
Did anyone send you?

1400
00:49:44.880 --> 00:49:45.880
Cool.

1401
00:49:45.880 --> 00:49:46.880
Let me know who.

1402
00:49:46.880 --> 00:49:47.880
If not, then there you go.

1403
00:49:47.880 --> 00:49:48.880
So then you got your referral tract.

1404
00:49:48.880 --> 00:49:49.880
You got your ad attribution tract.

1405
00:49:49.880 --> 00:49:51.520
You got the right cards on file.

1406
00:49:51.520 --> 00:49:53.280
And you have confirmation.

1407
00:49:53.280 --> 00:49:54.280
That is the person.

1408
00:49:54.280 --> 00:49:56.520
The reason I asked for ID first is because it's less intimidating.

1409
00:49:56.520 --> 00:49:57.840
This is just like, it's a checklist.

1410
00:49:57.840 --> 00:50:00.360
And they just follow it for every single person who walks in the door.

1411
00:50:00.360 --> 00:50:01.360
Yeah.

1412
00:50:01.360 --> 00:50:05.200
Like, the fact that you have this waiting area is the biggest advantage for most service

1413
00:50:05.200 --> 00:50:07.200
businesses that are underutilized.

1414
00:50:07.200 --> 00:50:08.520
Because you can check off all things.

1415
00:50:08.520 --> 00:50:09.760
You can get your reviews.

1416
00:50:09.760 --> 00:50:11.040
You can get your next deployment done.

1417
00:50:11.040 --> 00:50:12.160
You can get the card on file.

1418
00:50:12.160 --> 00:50:13.520
You can find out where they came from.

1419
00:50:13.520 --> 00:50:17.120
You can get all of this stuff done before they walk in and get their service.

1420
00:50:17.120 --> 00:50:19.120
That's the big stuff.

1421
00:50:19.120 --> 00:50:21.600
But I think we have to do the partnership thing.

1422
00:50:21.600 --> 00:50:22.600
I think that's the big deal.

1423
00:50:22.600 --> 00:50:23.600
Yes.

1424
00:50:23.600 --> 00:50:24.600
That's wonderful.

1425
00:50:24.600 --> 00:50:25.600
Let's hold it in my back.

1426
00:50:25.600 --> 00:50:26.600
No, it is.

1427
00:50:26.600 --> 00:50:27.600
Okay.

1428
00:50:27.600 --> 00:50:28.600
So let's recap all of this for you.

1429
00:50:28.600 --> 00:50:30.400
Let's go easiest and fastest.

1430
00:50:30.400 --> 00:50:33.640
So I use ice as my little moniker.

1431
00:50:33.640 --> 00:50:34.880
So impact confidence ease.

1432
00:50:34.880 --> 00:50:36.600
So how likely is it this is going to work?

1433
00:50:36.600 --> 00:50:37.600
How easy is it?

1434
00:50:37.600 --> 00:50:38.960
And how big of an impact is it going to make?

1435
00:50:38.960 --> 00:50:42.360
So something that's really easy, really fast and high impact you do this first.

1436
00:50:42.360 --> 00:50:45.840
And some things that are high impact like the partnerships, but it's going to be not

1437
00:50:45.840 --> 00:50:46.840
easy.

1438
00:50:46.840 --> 00:50:47.840
Right.

1439
00:50:47.840 --> 00:50:48.840
Okay.

1440
00:50:48.840 --> 00:50:52.080
So ice is a really common investor framework.

1441
00:50:52.080 --> 00:50:55.920
And it also maps pretty closely to the value equation, which is like what are the four

1442
00:50:55.920 --> 00:50:56.920
elements of value?

1443
00:50:56.920 --> 00:51:00.880
You have the dream outcome, which ice is the eye of impact.

1444
00:51:00.880 --> 00:51:03.600
You have the perceived like of achievement, which is the confidence score.

1445
00:51:03.600 --> 00:51:05.440
How likely is this to occur?

1446
00:51:05.440 --> 00:51:09.760
And ice just says ease, but I split that into how fast and how and how much effort is

1447
00:51:09.760 --> 00:51:10.760
there.

1448
00:51:10.760 --> 00:51:11.760
So there's four variables in mind.

1449
00:51:11.760 --> 00:51:14.080
If you want to use ice, you can use three, whatever.

1450
00:51:14.080 --> 00:51:17.200
But the point is that we have to make these appraisals based on what expect to return

1451
00:51:17.200 --> 00:51:21.240
do we have for the resources we plan to allocate into the business?

1452
00:51:21.240 --> 00:51:22.640
What bets are we going to make?

1453
00:51:22.640 --> 00:51:27.120
And so zooming all the way out, I define strategy as prioritization of resources.

1454
00:51:27.120 --> 00:51:29.320
There's a lot of things we could do to honest business.

1455
00:51:29.320 --> 00:51:32.120
But the idea is that we want to allocate our resources to the fewest things that are

1456
00:51:32.120 --> 00:51:34.920
giving us the highest probability of high returns.

1457
00:51:34.920 --> 00:51:40.600
And so this is how we reorder these things that we went over so that she can get the most

1458
00:51:40.600 --> 00:51:41.600
out of it.

1459
00:51:41.600 --> 00:51:47.240
Number one is I do think weekend pricing is just like easy profit that will make a huge

1460
00:51:47.240 --> 00:51:49.480
difference for the business.

1461
00:51:49.480 --> 00:51:54.040
All you have to do is just have two sets of pamphlets or whatever that you have on the

1462
00:51:54.040 --> 00:51:55.040
counter.

1463
00:51:55.040 --> 00:51:57.000
And when it goes Thursday, then you have Thursday through Friday pricing or Thursday

1464
00:51:57.000 --> 00:51:58.000
through Saturday pricing.

1465
00:51:58.000 --> 00:52:03.880
So regular clients get annoyed, up so bad.

1466
00:52:03.880 --> 00:52:08.880
Well, if you want to, I can grandfather you in, if you have a message, also create

1467
00:52:08.880 --> 00:52:09.880
two.

1468
00:52:09.880 --> 00:52:10.880
Another great way.

1469
00:52:10.880 --> 00:52:11.880
Right.

1470
00:52:11.880 --> 00:52:12.880
And actually, that's amazing.

1471
00:52:12.880 --> 00:52:13.880
Hold on.

1472
00:52:13.880 --> 00:52:17.200
That is probably the biggest benefit that we can put in this thing for the mind of the

1473
00:52:17.200 --> 00:52:26.120
chef is you have same pricing, yeah, non surge pricing.

1474
00:52:26.120 --> 00:52:27.120
There we go.

1475
00:52:27.120 --> 00:52:28.760
Now it's meaty.

1476
00:52:28.760 --> 00:52:31.880
So one of the beautiful things is that you can create a problem and solve it.

1477
00:52:31.880 --> 00:52:34.640
So we're going to raise the price, but if you set it for membership, you're not going

1478
00:52:34.640 --> 00:52:35.640
to have a price risk.

1479
00:52:35.640 --> 00:52:36.640
Well, it's only for weekends.

1480
00:52:36.640 --> 00:52:41.120
So if you want to come on peak hours and not pay peak prices, just try the membership.

1481
00:52:41.120 --> 00:52:42.120
I like that.

1482
00:52:42.120 --> 00:52:43.120
That sounds good.

1483
00:52:43.120 --> 00:52:44.120
That feels solvable.

1484
00:52:44.120 --> 00:52:45.120
Okay.

1485
00:52:45.120 --> 00:52:55.600
So weekend pricing, which will then pair with the membership offer.

1486
00:52:55.600 --> 00:53:05.200
And then I think we have our before process or five, we have our during process or five,

1487
00:53:05.200 --> 00:53:21.640
we have our after process, six, we have career cap and then seven finally, we have our partnership

1488
00:53:21.640 --> 00:53:22.640
issues.

1489
00:53:22.640 --> 00:53:23.640
Okay.

1490
00:53:23.640 --> 00:53:27.920
So weekend pricing, I think for you is going to probably, I think it's going to be a huge

1491
00:53:27.920 --> 00:53:30.560
difference because it's going to flow people right in the membership.

1492
00:53:30.560 --> 00:53:34.920
So I think you probably be able to see a 10% ish increase in revenue without really doing

1493
00:53:34.920 --> 00:53:38.200
anything else because 50% of the time you get a 20% bond.

1494
00:53:38.200 --> 00:53:45.720
Do you think 20% is too high for a, do you want to do 10% think we can start with 10?

1495
00:53:45.720 --> 00:53:46.720
You have to be sold on it.

1496
00:53:46.720 --> 00:53:49.960
If you're not sold on a second, so if you feel good with 10, I'm good with 10.

1497
00:53:49.960 --> 00:53:50.960
All right.

1498
00:53:50.960 --> 00:53:54.840
So by 10, which means you'll probably have something like a 5% increase in revenue, but that

1499
00:53:54.840 --> 00:54:02.120
5% increase in revenue given your 28% margins goes from 28 to 32, sorry, 28 to 33.

1500
00:54:02.120 --> 00:54:05.160
And so it's closer to 20% profit increase for you.

1501
00:54:05.160 --> 00:54:06.960
So even though it might sound small, right?

1502
00:54:06.960 --> 00:54:07.960
Yeah.

1503
00:54:07.960 --> 00:54:08.960
It's a whole nother location.

1504
00:54:08.960 --> 00:54:09.960
Right.

1505
00:54:09.960 --> 00:54:10.960
Not bad.

1506
00:54:10.960 --> 00:54:11.960
Membership offer.

1507
00:54:11.960 --> 00:54:15.200
So the thing here is that you said the, a lot of customers stay past three months, right?

1508
00:54:15.200 --> 00:54:16.200
Yeah.

1509
00:54:16.200 --> 00:54:17.200
What percentage do?

1510
00:54:17.200 --> 00:54:18.200
About 50.

1511
00:54:18.200 --> 00:54:22.800
So if we can get that to something like 70% plus that will probably be one of the largest

1512
00:54:22.800 --> 00:54:25.360
changes in the business because you don't have to pay to acquire those customers and they

1513
00:54:25.360 --> 00:54:27.760
just basically are always profitable going forward.

1514
00:54:27.760 --> 00:54:33.560
And so that's probably some of the neighborhood of like a 20 to 30% lift in the business.

1515
00:54:33.560 --> 00:54:38.960
So now the before process, this is just going to allow you to increase your ads because

1516
00:54:38.960 --> 00:54:43.000
you're going to finally be able to attribute where these people coming from, right?

1517
00:54:43.000 --> 00:54:47.000
So we're going to have that plus we're going to get more people to come back because we're

1518
00:54:47.000 --> 00:54:52.800
already booking their next appointment from right as they walk in, right?

1519
00:54:52.800 --> 00:55:00.080
Then here's where we have our upsell to membership is at the chair, because that's when they

1520
00:55:00.080 --> 00:55:03.720
have to do the eyebrows, unless we can stuff it before that's up to you.

1521
00:55:03.720 --> 00:55:05.360
I feel like it'll work better in the chair.

1522
00:55:05.360 --> 00:55:10.320
I think it's well, not in the chair because then they won't be talking.

1523
00:55:10.320 --> 00:55:13.320
They need to keep the eyes closed and get the service done.

1524
00:55:13.320 --> 00:55:14.320
So you think it should do before?

1525
00:55:14.320 --> 00:55:15.320
Yeah.

1526
00:55:15.320 --> 00:55:16.320
Okay.

1527
00:55:16.320 --> 00:55:40.160
So that's all loaded before afterwards is basically second shot and prepayment.

1528
00:55:40.160 --> 00:55:44.160
So they've already agreed, remember earlier that they were going to sign up for the membership

1529
00:55:44.160 --> 00:55:49.480
on the way out, we say, hey, you want to have today free because today free is basically

1530
00:55:49.480 --> 00:55:51.440
what they would get off if they sign up for a year.

1531
00:55:51.440 --> 00:55:54.040
But remember, you're not actually giving them today free, you're just going to say, like,

1532
00:55:54.040 --> 00:55:55.040
that's what you're going to say in discounts.

1533
00:55:55.040 --> 00:55:56.040
Yeah.

1534
00:55:56.040 --> 00:55:57.040
Okay.

1535
00:55:57.040 --> 00:55:58.040
Cool.

1536
00:55:58.040 --> 00:55:59.320
So that's what you're going to go and that'll pull up cash, which I think will be another

1537
00:55:59.320 --> 00:56:03.080
probably 20% that you can get from the business.

1538
00:56:03.080 --> 00:56:07.360
The career path thing, this is just going to decrease the term, right, for your staff.

1539
00:56:07.360 --> 00:56:10.720
And ultimately, the thing is, if you keep the staff, then you want to keep retraining

1540
00:56:10.720 --> 00:56:11.720
people.

1541
00:56:11.720 --> 00:56:14.320
And often margin of the business is just naturally improved because the girls get better,

1542
00:56:14.320 --> 00:56:16.800
they get more return customers, they have more repeats.

1543
00:56:16.800 --> 00:56:20.360
And then finally, the partnerships.

1544
00:56:20.360 --> 00:56:25.320
So you're going to have to have basically three conversations, really just two, because

1545
00:56:25.320 --> 00:56:29.080
one, you're fine with, which need to increase the ad spend, which we can do once we actually

1546
00:56:29.080 --> 00:56:30.800
have tracking.

1547
00:56:30.800 --> 00:56:36.080
The hard conversation, I think you should do the equity as well.

1548
00:56:36.080 --> 00:56:38.600
Even if it means you're getting the smaller one, because you're going to be able to go

1549
00:56:38.600 --> 00:56:39.600
all in on it.

1550
00:56:39.600 --> 00:56:42.120
And just I'm sure that you'll be able, if you're fully focused, you'll be able to turn

1551
00:56:42.120 --> 00:56:44.400
it around in two seconds.

1552
00:56:44.400 --> 00:56:48.160
And then the one girl who has her foot out the door, I'll just give her some sort of

1553
00:56:48.160 --> 00:56:52.200
buy out so that she has some sort of stability over the next 12 or 18 months.

1554
00:56:52.200 --> 00:56:53.200
Okay.

1555
00:56:53.200 --> 00:56:56.000
And then it's like, Hey, just do one, one favor and exchange for this.

1556
00:56:56.000 --> 00:56:57.000
Just help me replace you.

1557
00:56:57.000 --> 00:56:58.000
Yeah.

1558
00:56:58.000 --> 00:57:00.000
That's it.

1559
00:57:00.000 --> 00:57:01.000
How does this feel?

1560
00:57:01.000 --> 00:57:02.000
Good.

1561
00:57:02.000 --> 00:57:03.000
Feels like work.

1562
00:57:03.000 --> 00:57:04.000
Yes.

1563
00:57:04.000 --> 00:57:05.000
I like it.

1564
00:57:05.000 --> 00:57:11.640
The little bonus one, 2.5 is follow up with leads.

1565
00:57:11.640 --> 00:57:16.140
So you could probably pay someone $40,000 a year to do one thing, which is just call the

1566
00:57:16.140 --> 00:57:17.640
leads that come in.

1567
00:57:17.640 --> 00:57:18.640
Do nothing else.

1568
00:57:18.640 --> 00:57:19.640
You have to do anything else.

1569
00:57:19.640 --> 00:57:21.880
You can stay at home, call the leads within one minute.

1570
00:57:21.880 --> 00:57:25.080
So what we're going to do is we're going to make that number one.

1571
00:57:25.080 --> 00:57:28.320
So oh, by the way, maybe make that zero.

1572
00:57:28.320 --> 00:57:32.760
This one is a two to three X for the business.

1573
00:57:32.760 --> 00:57:34.000
That solves your lead genition.

1574
00:57:35.000 --> 00:57:38.440
So you're going to hire somebody who's going to call the leads.

1575
00:57:38.440 --> 00:57:42.040
We're going to roll out the membership offer with the weekend pricing.

1576
00:57:42.040 --> 00:57:43.720
We're going to train the team on the new pricing.

1577
00:57:43.720 --> 00:57:46.600
The reason it's going to make sense is because they're going to have this career path.

1578
00:57:46.600 --> 00:57:49.320
And then you're going to have this conversation with the partnership because now you're going

1579
00:57:49.320 --> 00:57:50.320
to have a more trained staff.

1580
00:57:50.320 --> 00:57:51.840
They're going to need to pay there.

1581
00:57:51.840 --> 00:57:52.840
Okay.

1582
00:57:52.840 --> 00:57:53.840
So when do we call the lease?

1583
00:57:53.840 --> 00:57:58.680
We say, hey, we saw that your book tried to book an appointment and then go through.

1584
00:57:58.680 --> 00:58:01.160
I'll just say, Hey, saw that you booked our $99 promo.

1585
00:58:01.160 --> 00:58:02.160
What's on you want to come in?

1586
00:58:02.160 --> 00:58:03.160
Okay.

1587
00:58:03.320 --> 00:58:05.520
And then great, what card do you want to use?

1588
00:58:05.520 --> 00:58:07.480
And they're going to say, sure, here's my card.

1589
00:58:07.480 --> 00:58:09.160
And if they don't say it's like, why do you need my card?

1590
00:58:09.160 --> 00:58:11.000
You say it's how we've always done it.

1591
00:58:11.000 --> 00:58:12.000
That's how we always do it.

1592
00:58:12.000 --> 00:58:13.000
That's how you say it.

1593
00:58:14.920 --> 00:58:16.240
All right, awesome job, honey.

1594
00:58:16.240 --> 00:58:16.760
Thank you.

1595
00:58:16.760 --> 00:58:17.440
Yeah, you bet.

1596
00:58:17.440 --> 00:58:20.200
If you liked this cash guys episode, which we keep making because you guys keep asking

1597
00:58:20.200 --> 00:58:25.800
for them, we have another one of a female stylist who is a little bit smaller in the business

1598
00:58:25.800 --> 00:58:27.080
about 300,000 years.

1599
00:58:27.080 --> 00:58:28.080
And I think you'll love it.

1600
00:58:28.080 --> 00:58:29.520
So go check that one out and enjoy.