Scale or Fail: Moving Company Owner Gets a Reality Check

These eight business owners are competing for $100,000 and this golden ticket, which gives them access to an entire year of guidance from myself and the team behind my $250 million per year portfolio. They each have 60 minutes with me to explain their business and by the end, I'll decide if they scale or fail. For those who are chosen to scale, I'll give them a personalized 90-day blueprint on how to grow their business and 90 days later,

whoever grows the most wins and walks away with the grand prize. My name is Alex Hormozi and I've been in business for 15 [music] years and I recently broke the Guinness World Record for the fastest-selling nonfiction book of all time, making over $106 million in a weekend. And this is Scale or Fail. >> My name is [music] Nass. I'm the founder of Flex 100 Moving and Delivery. We're based out of San Diego, California. The journey to

this business was very accidental. I was a broke college student athlete. My friend from Austin came up one time and he just said you should be making some extra money and all it takes is just posting an ad online. >> [music] >> Took me about 11 months out of fear to post my first ad. From there, I just realized how much you can grow this business and what's actually possible to do. I found out about the

Scale and Workshop here in Acquisition.com and I came in 2025 [music] and since then the journey to this has been growing. Growing this business is really important [music] to me. I just want to show myself that I could actually do this. Good morning, Alex. >> Good morning, man. >> How are you doing? >> Good. >> Great to see you. >> Good to see you, too, man. So, tell me about the business. >> My name is Nass.

I'm 29. Um I'm the founder of Flex 100 Moving and Delivery. We did about $300,000 over the last 12 months, profit being 62%. Our goal is really to expand to um multiple locations with um 2 to 4 million dollars per location in the next 2 to 3 years. We'd love to paint the map pink with our pink trucks. >> Walk me through the the business model. >> Most of our business come through local residential moves that

represents about 90% of the revenue. We charge based on an hourly rate. It's $165 for two professional movers plus $150 for the truck and equipment. >> Are you the cheapest? >> No, absolutely not. >> You're the most expensive? >> Up there. >> Okay. And how do you get customers? >> So, being the second highest and best rated moving company in San Diego, as you can see, like most of the revenue would be from Google Maps and

SEO. It's kind of like organic. Um cost about $1,000 to $1,200 a month for SEO. And the main winner right now that we've been testing with would be the realtor outreach. >> Tell me about this realtor thing. >> So, we'd reach out to them and then we'd tell them, "Hey, if you have anybody like moving out, we'll give them that little offer of like anybody over $2,000, then we will, you know, give them $250 off them."

So, for the realtors, the job is like they pay so much. For example, this month out of out of 17 jobs on Google, we made $16,000. >> Mhm. >> Okay. And out of six jobs with realtors, we made $15,000. >> Yeah. >> So, it's over $3,000 per job with realtors compared to any other channel. >> Okay. Anything else that's stopping you from scaling? >> Just not enough leads. Uh we could easily double up the business, but

as of right now, it's just not enough leads. >> Okay. Why do you even want to grow the business to begin with? Like, you're already making money, right? >> There's different reasons. Number one is that my wife just quit her six-figure job about five days ago to bet on me. >> [laughter] >> I know you heard that a lot, but this one is real. So, she quit her job. She's betting on me. She trusts me on

doing this. I'm not going to let her down. >> Okay. >> And then two, I've had guys that have been working with me for the last few years. And these guys, all they're asking for is just stable work so they can feed their families. Three would be my mom, who worked extremely hard for us to be here coming from Morocco. Her only dream in life is to own a house. And I would be the reason make

that, you know, dream a reality. My mom has worked extremely hard [music] her entire life, uh you know, for me and my sister to be where we are today. My mom's [music] only dream is to just own her own house. Which does not even require much. It's quarter of a million dollars, 250,000. I could possibly regret that forever if I don't work harder enough [music] to just get her that little thing that she has dreamed about.

I I really [music] don't care. I don't care for a house. I don't care for a car. I just care for that cuz I it's in me for me to pay back uh people that have stuck with me when I needed it the most. And if anything, she's the only person. Last but not least, it's kind of like a little bit personal. People that have been against us, it's not really to show them that they're wrong,

but just to prove myself that I could go a lot further. >> you're right. >> Yeah, sure. [laughter] >> No, I dig it. Okay, cool. This seems pretty straightforward. I've got a I've got a handful of things that I think we can do. So, let me just walk you through how I how I kind of think of this large-scale. So, I think we'll we'll start with the offer, all right? And then I want to work on

the sales process a little. And then we'll talk about this realtor's thing. And then we'll go traffic. So, if you think about fixing a business, I always fix things from back to front. So, it's like the thing you sell, how we sell it, who we're going to sell it to, and how we get them to find out about it, right? Okay, if we're talking like big picture basically, you will become a commodity if you're using the

exact same measured unit, right? You're like cuz they're they're just asking, "What's the hourly?" I'm guessing a lot of people you get on the phone right? >> What's the price? Yes. >> Right. And so, I think if I were you, I would break that frame and just say, "We don't do it by hourly. We just do it by job." And I can give you an estimate because at the end of the day, cuz how someone might

respond back, "Well, I just need to know what the hourly." It's like, "I could have the guy drag ass and take all day." You'd rather get done quickly rather than take a long time, right? And you want it done well. Well, that's what we'll do. >> Yeah. >> Cuz that'll get you out of this kind of like it's 120 here and they're at 125. It's just like it doesn't matter cuz they could take 8 hours and

I could take four. >> Yes. >> You know what I'm saying? >> The only issues with that is that a lot of these people would like to tell you what they have and you can't really estimate that if you do a flat rate. >> Think about like this, like in order to scale the business long-term, it's like we want to have something unique that's that's somewhat right if we can. Now, if we're also selling a commoditized

product, which is just sheer labor right now plus a truck, there's not a lot of differentiators there besides maybe like pink. I'm trying to think of a way to get you out of the hourly race if possible. Look, cuz right now you're servicing kind of the lower end of the market, right? If you're if you're servicing renters and kind of smaller homes. Because like I'll tell you, when I moved I honestly have no idea what I

paid, but I'm guessing it's probably in the neighborhood of like $25,000. I have no clue. But the idea was I'm going to leave my house and then I'm going to show up at the other house and it's done. That was what happened. >> Yeah, that's for the rich. >> Yeah. No, exactly. Well, have you heard my stuff? >> Yeah, yeah, yeah, yeah, of course. >> You know where the money is? >> Yeah, yeah, exactly. Sell to

the rich. >> Right. And so my point is not like I'm not saying you all of a sudden overnight become ultra diamond, you know, whatever. But if you what you realized was the realtors it's not that the realtors are special, it's that they're get you got a taste of selling to people who have more money. >> Of course. >> Right. And so you made way more profit on those deals than you did on the on the

kind of generic. And so that's why I asked about the offer because to me there should be a white glove offer. To me, that's what's missing. >> Mhm. >> So I thought about that. I did it. Um it worked. >> Mhm. >> It worked a couple times, but then I kind of just turned it off. >> Okay. >> Why? Cuz it wasn't selling well. >> Okay, that's fine. Then the offer wasn't good. So I'm not I'm

not thrilled right now. Um >> [laughter] >> cuz you're just like I'm a little bit more expensive and people get a little bit more value than they would with other people and it's very hard to claim anything that's different besides the trucks being pink and the guys being better. >> And no hidden fees. >> Sure. >> Cuz material is included like shrink wrap and moving buckets and all that stuff is included compared to other companies they

would just throw an extra $600 at the end of the bill and you have to pay for it cuz you have absolutely no option. But they don't tell you that. >> Mhm. >> Until it's done. But people still see the hourly rate to be cheaper somewhere else it's what's going to save the day. >> No, I know. I know. I know. Don't love it. I'm going to shift gears. Let's talk about this realtor thing. So, why

don't we say let's just for for fun for shits and giggles, right? >> Yeah. >> You can have a VIP moving level, right? And then you have your standard moving level. I think that the realtors would be better served. They probably don't care about the $250 cuz if they sold that house then they made way more than that it's irrelevant. They want the referral and they want the people to know that it was a great experience.

And so I think you probably get way more referrals if you said I'll give everybody who you send a VIP service for the price of standard. That will probably mean more to them than getting $250. >> Oh. >> And then for them they'll be able to be like, "Hey, if you go through me he'll give you the the VIP level service at the at the standard rate." >> Got it. >> To me I think that's a

lot more compelling. >> But what would the VIP be? Just what we create? >> Yes, let's make it up. >> Okay. Okay. Okay. Yeah, that makes sense. >> [laughter] >> In the cloud. >> Yeah, well I mean you could have offered unpacking and if everybody says no then that's that, right? Like it's like we'll even unpack it and then people might just opt out. If you know most people do then it's great. It's almost like a

false offer. >> Okay. >> Because you know more about the the customer than they do which is the whole point. >> Or the VIP could be I can give you like movers with 10 plus years of moving experience that would take care of this entirely. >> Only reason I don't like that is from a model perspective that'll be more difficult to scale. And I don't know how much that will matter. So, I'll tell you a different

version of this, which is like instead of doing 10 years, it'd be like every mover has over 50 moves. >> Okay. >> And so, I'll give you an example. So, like when I had my trainers at my gyms, anyone can be a trainer. Literally anyone can be. Like you, I have low-skilled labor. And then you can have a certified trainer, which they go through accreditations versus not. And you can also internally certify. >> Mhm. >> And

so, what I did is I created three levels of internal certification. I'd be like, you're going to have a level three master trainer. >> Mhm. >> Most people are like, oh wow, that's awesome. But it's just like they just had to do some stuff. And for me, a level three was like they'd done a thousand sessions. >> Fair enough. >> Or whatever. And so, for you, you can be like you have a level three mover. So,

we have different moving movers different for different skill levels. And so, you'll have all level three movers. Cuz what you're trying to do, when you're selling a commodity, you're basically sowing seeds of doubt against the competition. So, part of what you said was, well, they're charging 120 an hour, but that's because they're going to nickel and dime me over here. I'm not going to do that. That's basically sowing some seed of doubt saying, I'm actually different.

Right? That's basically what you're doing. You're saying, we're not the same. >> Yeah. >> Basically, how many other things can we do there? So, we have speed, risk, and ease. Like so, speed, since you're charging hourly, is probably not going to be the thing. Now, you could do speed in terms of like we can come tomorrow. But they probably have a moving day that they like are planned out doing. >> A lot of times you do

a last minute moves, and we charge a couple of little bit. Yeah. Oh, yeah, people call like today for today. It's like my movers bailed on me, and that's the reason why a lot of people would go with cheaper movers, and then >> Do you have a same-day premium? >> Um not premium. We kind of like to avoid this. >> no, no. >> Yeah, cuz like cuz sometimes they're so desperate for a job, so I'm like,

yeah, whatever. I'll I'll just take it, you know. I know. I >> [laughter] >> Got it. Okay. >> Um >> Um okay, so you have the fee that that that other people are nickel and diming. And then so, then another a kind of seed of doubt, right? So, there's risk, speed, and ease. Right? And so, what we're hitting on with this kind of like master mover, if you will. Actually sounds kind of nice, master mover. Is

the risk component. Which is, listen, believe it or not, a lot of my competitors, they can win on price cuz they're just literally going to take someone off the street. When I say literally, I mean literally. And then you don't know if they have a record, you don't know like what's going on, right? None of my guys are, you know, ex-cons and on Your Move for VIP, you get all level three master movers who've done at

least 50 moves or 100 moves. Whatever, make make whatever you want, right? So, how does that sound in terms of the VIP? It's going to be around risk. So, it's like we're going to have this higher tier of mover and uh no there's no extra thing besides the labor and we're going to include all the materials. >> If you do full-service moves, that's like packing and unpacking. I love that a lot. >> Okay. So, that to

me is what you give these guys, the realtors, and you already use master movers as is, right? >> Yeah. >> So, there's really no change between that and standard. It's just that if you have standard, you have the option of using cheaper movers. If all your guys are already equipped master movers, then great. So, I'll just go here, but basically our VIP, right, is going to be pack plus master, you know, master movers plus material. And

then standard, I would say it's still pack, but it's just not master movers plus anyone. So, that's probably not too big of a cost for you. >> For me, no. >> Okay, perfect. Well, then that's about the $250, but this feels significantly more premium than just doing a 250 bucks off or 250 back to the realtor. >> Okay. >> Do you like that better? >> I love that a lot. >> Okay. So, also when you're when

you're getting on the phone, I think you can just basically have these these tiers. Now, I would start with VIP. >> That's how you would sell it. >> Yeah. >> To anybody or just >> No, I would do it to everybody. I always start high. >> Okay. >> Cuz the thing is is when you get on the phone with somebody who has money, they don't care. They just want it done. >> Yes, I agree. >> And

so, you have to give that up that person the opportunity to buy. Now, as soon as someone says, "No, I'm on a budget." You're like, "No worries, then just do standard." >> Perfect. >> So, most people use this, but if you're on a budget, we have this. And then if someone still objects, then you basically have to walk down the seeds of doubt. So, I this feels like it's worth diving into a little bit. The issue

that you brought up is that Yelp you didn't like and Ads you didn't like, right? >> Right. So, to me that's not a leads issue, it's a sales process issue. >> Okay. >> So, we have to make you different in some way compared to everybody else. Okay. So, we have our factors. So, we have Master Movers, we have that, we have materials, we have that. Do you have insurance or anything like that? >> Yeah. >> Okay.

Do you talk about it? >> insured. Yeah. I mean, as an operator moving company, you're supposed to have license and insurance. >> Great. Great. These are These are These are elements, right? We We need We need components to the offer, right? Cuz they Again, think risk. So, this is risk, this is ease, this is risk. What else do we have? We have speed. So, I do think that if someone does same day, you can just say

we have a same day surcharge of 10%. >> Okay. >> Just cuz I want you to get used to charging it, because speed is one of the biggest things people pay for. If someone had someone back out, and they need something to be moved today, that's when you can charge. >> Yeah. >> Right? And this might not sound like much, but again, when you hit 20 locations, this will add up. Because your margins aren't going to

be 70%. You might be at 30, and all of a sudden a 10% lift, or 20% lift, all of a sudden you're like, "Oh, shit." And it's all margin. >> Yeah. >> Right? So, I'll say a date premium, start at 10%, but I want you to go to 20% over time. And you can basically keep moving up until they say no. So, these are different components. We have our A, we have B, we have C. See,

we're getting We're getting little pieces that we can talk on the phone, right? >> I have not tapped into every single piece of this business. I'm not even capped out yet. I haven't even done the obvious stuff that other businesses are doing. Um that's why I think I really have a huge advantage that we could grow the most. And that's really the only advantage that we have is that we're small enough to scale the most. >>

Okay. What about a cap? >> Meaning? >> It's not going to cost more than this. Let's say they do an estimate. >> Yeah. >> How likely is it that they're off by 2x? >> Not by 2x, no. >> Okay. >> But at least a 30%. >> Okay. So, I mean, what if we say 50%? So, I'm saying I want to give you a buffer. I'll tell you why I'm saying this. If you get on the phone

and say, "Hey, did the other guys give you a cap?" And they'll be like, "No." And you're like, "Oh." Well, yeah, that's how they're going to get you. And then they're like, "Wait, what?" And you're like, "Oh, yeah. I mean, like, I can just take 20 hours to to move one thing from here to there. There's not much you can do when somebody's on site." And they're like, "Oh, I didn't really think about that." It's like,

right. So, we'll be this, and we won't exceed this. >> Got it. Okay. >> Unless there's a huge issue when we arrive on site, but that's basically I agree the type person who's going to be lying about this. No, okay, great. Then it's fine. So, it will not be more than this. >> Got it. Okay. >> And then that way, cuz again, we're trying to sow seeds of doubt. Like, if they have two things and they're

both 100 hour 90 an hour, they're going to pick the 90. >> Of course, yeah. >> So, we have to be like, "Oh, okay, got it. So, what insurance do the other guys Oh, they didn't mention. Oh, yeah. Well, for sure, if you're uninsured, then yeah, I mean, that's that's a cost, but I'm assuming is nothing you have valuable?" >> Uh, you know, like, >> "No, I have I have some valuable things that matter to me."

It's like, great. Well, we have insurance um that we can include. Do you know what I'm saying with with this sale here? >> Yeah, it's going to come It's going to come down. >> Yeah, and we're going to We had to get this part here so that when we move to the sales process, >> brain is going like all over. >> Yeah, yeah. I hear you. Okay. But fundamentally, cuz this is going to ladder into this,

but we have our VIP, and we have our standard. We're going to start everyone here. >> Yeah. >> And then we're going to If they say, "I'm on a budget," we'll say, "No worries. We can do this for you." >> Yeah. >> Okay. You all right? >> Yeah, yeah, it's opening up my mind. >> All right. So, sales process. So, you were able to talk to all the people who came in on the on the Google

leads, right? >> Yes, everybody. Immediately. >> The main objection we have is always price. >> It's always price if they don't know what else to talk about. Customers will always go to price if you don't give them any other variables to consider. >> Okay. >> And this is what we're trying to do. Like, that's the point of the offers book. It's like, how do I How do I break these two things of price and value? >>

Yeah. >> Right? If if there's apples and apples, you want apples and oranges. And even though you build the same way, we it like fine, I get that. Can we still make it different enough on all these other things that they're like, [ __ ] I didn't even think about that. >> Yeah. >> So, when someone when someone calls in, what's the first question you ask them? >> The day of the move. When are they moving? Just to

make sure we have availability. >> Okay. So, you ask for the day, and then let's say that you're empty. Now what? >> Now, I do ask how much stuff they're looking to move. Like, what's the size of the move? >> Okay. And you say the size of your what's the square footage of your stuff or what? >> No, how many rooms? We go by the rooms. Like, is it a one-bedroom, two-bedroom? And then the time is

For example, it's a two-bedroom. I'm like, great. Like, what are we looking to move? >> Yeah. >> And then I ask stairs or no stairs just to have an idea like like how long the job will take, and then where the truck is going to be parked. >> We still want to walk through these other pieces, which is okay, got it. Do you care about the the qualifications of the movers that you have? They're like, I

never thought about that. You're like, oh, okay, cuz a lot of the guys uh they have like ex-cons. Some people are like very uncomfortable with that. Believe it or not, it's actually 20% of the industry. I put some stats right? >> Yeah. >> Um all right, so yeah. >> No, no, for sure. Right? So, it's like, do you care about the Well, I don't want ex-cons in my house. And you're like, great. So, and you're you're

in your mind you're like, okay, they want master movers. You're like, okay, so um do you already have all the materials? To get all this stuff packed up and all that? Oh, no, you don't? Okay. >> Packing. >> Got it, right? And you're like, okay. You're like, got it. So, do you have anything that's valued over $500? >> Obviously, yes. >> And they say yeah, and you're like, okay. >> Insurance. >> You're just listening, right? Yeah,

and you're like, okay. Now, is this isn't today. So, if it was if if it was today, then we'd include the day premium. If it's not, then we're like, okay, got it. So, this is what we can do. We're 165 an hour, and if you go with us today, I'll include the master movers, I'll include materials, and I'll include the insurance. >> If they do full if they do a full full service like packing. If we

get packed with them, then we can include the materials for free. So, that is the offer you were talking about earlier. >> Okay. >> And if they're like, "Oh, I can't do that." Then it's like, "Okay, we can still do it, but we're going to be at standard. What's your I don't If this is going to be the new VIP, make this one 95, make this one 65. Whatever." Okay. Uh so this is VIP, and this

is going to be standard, right? You like that? >> Yeah, I love it. That's fantastic. It's awesome. >> Cuz that way that way again, we're already having a conversation with more detail. >> Mhm. >> I just want to give you bullets so that again, we want to get on the phones cuz how many How many are you losing to price? >> A lot. Like 40%. >> Yeah. Okay. So So this is important. Right. So we want

to make sure that they don't think that they're getting the same thing for less. We want them to know they're getting way less for less. >> So the way we've been selling is that if they kind of hit us with the price issue, I'm like, "Hey, if you find anybody in this industry in San Diego right now that would match our reviews, we'll beat their price." And cuz they don't exist. But I can't That's not >>

but that's not They're like, "Yeah, but whatever. Yeah, yeah, yeah." If you can find somebody else that does insurance, has has level three movers, uh includes materials, you know, it has a cap, by all means uh I'll I'll price match it. But like, I've never been in the price matching game my whole life. I'd rather just be in the value surpassing game. Which is if these things matter to you, we're the only shop in town that

does it. If you don't care about having ex-cons in your house, and again, I have no beef with ex-cons, but people have perceptions, right? Uh if you have no issues with ex-cons and you plan on doing the packing yourself and you're okay with them potentially breaking it because they're not they're not insuring anything, which honestly, it happens in 25% of moves. >> Yeah. >> And if you're the three out of four, it's great. If you're the

one out of four, it's pretty tough. >> Yeah. >> Right? And if you have no cap and you don't care that cuz I can come in at $10 now if you want, I'll just take a week. >> [laughter] >> That's fair. >> Again, it's like we have to We have We have to explain the whole the whole system, right? And so what this is called is I call it shifting from local to global. Right? So like

you're thinking about this. >> I am. >> I'm thinking about this. Not me, but the the consumer, right? And so all of a sudden you give them way more variables than they thought about because you know more about it than they do. And that's point of a good sales process. As they're like, I didn't even think about these things. And I was like, right. That's okay. That's what education is for. I'm educating you right now, right?

And so, this is what it sounds like you really want, and that's what I can deliver for you. Cuz at the end of the day, if you get everything on time, nothing breaks, you have a great experience, I was like, is that worth the extra 50 bucks? >> My god, yes. >> Right. >> It's like >> Oh, good. Good, man. So, this is what I Once you walk through it, it's like, this will get you the

the deals you're losing. You're losing to price because they have nothing else to say. They're doing apples to apples. You're like, no, it's apples and oranges. But it's totally fair that they're they're charging less because they're not doing all this stuff. Which, by all means, if you want us to not do that stuff, I can't because I have to have a level of service and you see our reviews. I'm not willing to I'm not willing to

sacrifice my reputation for that. Some people are, though. Cuz they're they're in and out of the industry. >> Yeah. >> They they come in, they just they just start moving, you know, for short periods of time, and then they get out. >> Yeah. I'm here for the long run. >> Right. >> Yeah. >> Now that we have a better idea of what our offers are, what we need to say is, I would include we'll give them

a free VIP upgrade or free white glove, if you want to use that term, for anyone who you refer just so they like think good things about you. >> Okay. >> They need to gain from referring you. Their customer has to see them better because they have the hookup, right? People go to realtors because they're you're supposed to know the area better, and they've done this more times than they have, right? If you knew everything, you

wouldn't need a realtor cuz you already know the houses, you already know how to do the deal, >> [clears throat] >> right? So, saying, oh, my my guy I've got an amazing moving moving company, they give all my customers free upgrades. That makes them look great, right? >> Got it. Okay. I love the offer. So, we we did try um SMS, we also tried emails. Emails did not get us absolutely zero conversion. >> That makes sense.

>> Yeah. So, SMS is what would give us some traction, and then what we've been trying lately is that we would just go follow them on Instagram. >> I think following and DMing would probably have a higher conversion than anything else. >> we tried is that SMS, if absolutely any response in a positive way, even like liking the text, I would find that person on Instagram, like go look them up, and then follow them like, "Hey,

I saw you liked the message. Would love to tell you more about what we have going on." >> I mean, I think start there, but I would take that list, feed it into AI, and have an agent search online, find the Instagram, and then follow them from my account. >> Okay. >> And so, every day I would DM 10 or 20 of them, because you can't you can only, you know, DM so many. Now, if they

follow you back, then you can DM as many times as you want, right? So, we could do There's two two two considerations. So, one is we could say follow everyone, and then anyone who follows you back, then you DM. That's one option. Or, you just automatically DM 10 or 20 cold independent of whether they follow back. >> Okay. So, you would actually do massive outreach instead of just like picking up the top 100 producers in San

Diego? >> I mean, we should do that. Should mean, start there. >> Yeah. >> That's when my Okay. My wife could have just up to actually take care of this realtor. >> So, you're going to do your SMS. This is what you're currently doing. I don't think you necessarily change any of that. That's fine. The second is the follow to DM. And I would say like, "Do you know anyone? Uh we have a realtor special, which

is VIP upgrade." >> I like that word upgrade. >> Yeah. Or white glove, whatever you want to Yeah. >> Yeah. Yeah. >> And so, that would be my auto DM back. Now, the third thing that I would do, because this is like a lot of the realtor offices, the brokerages, right? They have 5, 10, 20 agents, right? I would want to go to the head of the brokerage and say, "Hey, I'll do a brokerage level deal

for you. We'll give everyone who's an agent of yours VIP, like for free, if we can just be the first people people first people you call when you have a move." And ideally, it's like, "Can you integrate us into your packet?" Because that's the thing is like, they give people packets for Right, exactly. So, it's like, "I want to be the only one in the list, and I'll give all of your customers VIP upgrade. You can

look at our reviews, really good." That's where, because you want integration. Because as soon as you get integrated in their sales process, as long as you could do a good job, they'll just they're not going to look anywhere else. >> Yeah. I have two that I can like literally call up today and set up an appointment for this upcoming like tomorrow. >> Yeah, cuz like one brokerage might sell >> 20 agents. >> Right. Well, yeah, 20

agents. And then each agent might sell, you know, let's say a house a quarter on average. I'm just making it up, right? So, it's like every brokerage is five houses a month. >> Okay. That's $15,000. >> Right. >> On an average of 30 grand. >> Per. Right? [laughter] And so, it's like, okay, well, how many brokerages are there? Plenty. >> A lot. >> Right. And so, I'd rather you sell one to sell 60 a year. >>

Mhm. >> Like that's what's worth your time. Like let Jacob take the individual calls, but you should be going out and getting the brokerage who's going to get you 60 houses a year each. And then like every week you bring another brokerage on, and that means like every week you're bringing another five deals a month on. And it stacks. >> Right. >> And then what's going to the next bottom neck is going to be you're not

going to be able to manage the relationships. It's not there yet, but that's what's going to happen. And so, you're going to need to hire one person to full-time manage the realtors. >> Developer. >> Yeah. Exactly. It's just a farmer. >> My wife is going to be doing that for now. >> Great. So, I think we target brokerages. Because this is the long-term play. Like you like it's good to have the reviews you do, and that's

going to continue to compound and all that stuff. >> [clears throat] >> But, where I'd like you to get is in the future at some point you start turning deals down that are too small. >> Like one bedrooms and small deliveries. >> like, it's just not >> And >> We're not there. >> Yeah. >> I'd like you to get there. Because there will be a day where you don't do deals under 3K or under 5K. Yeah.

>> They exist. I know. I I like trust me. I I have to believe that they exist. >> They do exist. I promise you. Okay. So, we have our offer. We have our VIP and our standard. Now, what's the key thing to differentiate us? We itemize all the elements inside of the sales process. So, again, we can further differentiate from the hourly. If we're going to stick with hourly, then we still have to have as many

different colors as we can here. All right? >> Okay. >> Then, um and also, I'm very flexible on this. This might be able to be 225. Like like continue to keep pushing this VIP envelope until people stay say no, cuz you always have your backup. You can always fall back on a standard. >> Standard, yeah. >> But the people who have money will just they'll spend more. It's just it's a different monster. Uh realtors we keep

doing this, but I think these two will give you more leverage. This one is the biggest one. >> Okay. Can I ask one question? >> You want to show up in person here. >> How many times? >> Here's how I do it. This is the process. Once you get any realtor thing, you need to show up in person to their office to meet all the other realtors in their brokerage. Come come with donuts, come with whatever.

Meet the head guy and say like, I had you know, I set up Kelly was was that a good experience, Kelly? Great. I can give every single one of your agents VIP upgrades for all of our moves for free. That's on me. Just cuz she was so great to work with and it gives you something that you can kind of have as a as a nice experience. >> Yeah. Okay. >> What was the question? >> The

question is about the SMS like cuz now I have a list about 12,000 agents. What do you think the first SMS should be like? Is it should it keep it the same or it doesn't really matter? >> you're going to you're going to see what the response rate is. >> I wouldn't send the same thing to all of them. >> The smart cookie move would be look up the agent. AI can do all of this. >>

Yeah, yeah. >> Do all of this AI can do. >> I mean it's cloud, yeah. >> Yeah. So, hook up AI to the list, create an Excel sheet that has personalized information. >> Okay. >> And then have a template for it to then out output what you think or what it thinks the personalized first text should be and it'll give you the whole list of all 100. You read them real quick to make sure that they

sound like they make sense and click go. >> Got it. >> Cuz then they could all be personalized. That's what I would test against just the generic opener. >> Got it. >> And if you want to be wild, you could probably Are you doing it from a you're doing it from a true SMS, right? >> No, I was using Mailchimp. >> Is that does it have like a an iPhone like a blue thing? >> bubble, no.

>> Okay. >> Would you recommend the blue bubble? >> I would give it a shot. So, I would say for blue bubble. And I would say just test it cuz it's going to be more, but if you have a higher response rate, then it's worth it. >> With an With an area code that's local. >> Yeah. And then five for this SMS here. Oh, I got to put it up over here. Is AI personalization for that

first message. It'll also make it less likely that you get put into spam. >> Perfect. >> Because if the carrier see you send that same thing to 100 people, they they spam the number. Yeah. So, traffic. So, there's a couple couple smaller things that I I think are worth doing. So, right now, how are you getting the reviews? What's the review process? >> So, as soon as we finish the move, the guys just ask for a

review immediately. It would be doing me a huge favor. Takes 30 seconds. Helps us tremendously. >> So, what's the script for the guys to ask? >> If you guys think we did a great job, then would you mind leaving us a five-star review? We'd highly appreciate it. Takes 30 seconds. >> So, I would just add one little piece in, which is um there's probably a leader on each job site right? >> So, the foreman goes over

and says, "Hey um you know, was this a good experience?" If yes, "Okay, well, um the guys get a little spiff from ownership for five-star reviews. So, if it if it means anything to you, it'd mean a ton to those guys." And then you can just take who got the most reviews at the end of the month and give 100 bucks. It doesn't matter. But like, the likely that they'll just leave a review, six out of

10. If it's like these guys it actually makes a difference for them, the likely that they'll leave it way higher. And it's better when it's not you cuz you can't be like ownership. I mean, you can, but like >> Yeah. This is >> Yeah, yeah. [laughter] Right. >> That's true. >> But it's easier for the foreman to just be like, uh the owner gives um an extra spiff to the guys um if if they get a

five-star. >> Okay. >> So, one is foreman review. Foreman owner. I'll say spiff. How about that? >> Perfect. >> And then two, do you do any social media? >> Barely. >> Okay. So, I'll bet you you're losing to people who have better socials than you are because obviously search is one thing, but the next thing you look at is well, let me see if I can find these people on social and that'll make a big swing.

And so, can you maybe have the foreman do like a before and after? >> Um like house full and house empty? >> Yeah. And then also, empty to full. So, basically it's four it's it's before after at site one, before after at site two, clipped into one. >> Okay. >> Cuz you can just post those. Just before and afters. And if you get the review, put the five-star review at the end. >> Got it. Okay. >>

So, it's like you're posting before and after review. Before and after review. Before and after review. >> Got it. Okay. >> So, the organic is before, right? After. At site one, and then again, before after at site two, and then review. So, it literally shows the full Right. End to end. Like this is what it was. This is what we did. This is where we went. This is what happened. And they said it was awesome. >>

Over and over and over and over again. Okay. >> Yeah. And then if you can, I would get the realtor reviews cuz that's going to matter more again for um And when I say reviews, I mean really testimonials. >> Like on a video. >> Yeah. >> Okay. Yeah, I can I can definitely do that. Yeah. >> Yeah, and also, because the thing is is the bigger the bigger your organic following gets, right? When you go to

that brokerage and you say, "Hey, we're good movers. We've been in the area for a while. We just made a partnership with XYZ Realty. Um if you're looking to sell a house, check it out." Like they love that. It's free promotion for them and you just throw it in if they do the deal with you. >> Beautiful. >> Now, when you have 100,000 followers that are local, makes a bigger difference than when you have one. So,

cuz big picture, if if we need the the business to grow, right? One is we're having a more premium offer. So, for the people who want to spend money, we allow them to do it. Right? >> And we're including things that other people are not mentioning. Which are these elements. Which then when we get into the sales process, we ask them no more questions, but then we ask their preferences, which they didn't think about, to differentiate

our our versus everyone else's. >> Mhm. >> And then we can step down from VIP to oh, you don't actually care about these preferences. Oh, you're more on a budget and you don't care about that stuff, fine. Cuz I promise you're not going to find these things at a different price. Got it. Then with our realtors, we're adding in the personalization for the AI. This is going to be more lead gen. This is going to be

big, especially when it's paired with these, right? Brokerages is what I think you should do. This is the highest leverage thing that you can do. Is you go and get 20 agents at a time. As soon as you get one realtor who responds back, I would go in person. Got it. Because then it's like you don't just get them, cuz they're already a unit that can send you business every month. But they have five other people

or 20 other people in their brokerage that would be what I would go. That's this is my my big 20X lever. This is just to enhance that. This is the this is the smallest piece of this. I wouldn't even obsess about it, but these are the bigger ones. Got it. So we can just boost the guys reviews, just run the Spitfire. And then from a long-term perspective, we can build up our organic doing before and afters

um in every single site with a review at the end. I think we do all this stuff. This is going to be your your biggest one. That's the biggest lift for you. This is probably going to be like this these guys are going to be your second biggest lift. And then this whole sales process that I outlined here is going to help you win those other 40% of deals. Long-term that'll compound too. >> Thank you so

much. Appreciate you. >> Yeah, congrats. All right, see here. So if we're looking at where you're at on the scaling road map, you're between three and four, mostly on the four side cuz you got six employees. You're acting as a manager, right? It's your first full team. And so from a product perspective, you were saying yes to everyone who would pay. >> Yes. I mean, this spread, you know. >> Right. No, you're good. This is the

transition. You were getting feedback from different customers, so you were like, oh, do I do the cheap thing or do the expensive thing? I've got these very different. So to graduate, we have to specialize the product which creates our V2 which is the VIP, and we price to serve that richer customer. >> Mhm. Score. >> And just for for the magic of the audience here, it's not like I I had this and I wrote this after

we talked. >> No, I it put me here when I did the whole thing with line. It put me here. Yeah, >> But now you're here, right? >> Yeah. >> From a marketing perspective, you're talking to many unqualified leads, which is what we're dealing with, and so we have to make more content, which is what we're doing on the before and after side, right? And we're adding more qualifications and friction, right? Which goes into these elements

of what we can do to kind of differentiate what we're selling. Which from a sales process, speed to contact. Now, you haven't had a drop yet cuz you still need to get more lead volume in, right? And so we have to start tracking a little bit more on this side >> Yeah, yeah. >> than you probably are. Now, from a customer success perspective, um you've been doing fine, but as we scale, quality is going to be

that's going to drop. And so to move from here to here, we're going to have to have a quality assurance loop that's going to happen. That's not a problem yet, it's going to be. >> Okay. Thank you so much. >> Appreciate it. Thank you. >> This is great. Thank you. Just looking at back at all these other business owners, looking at them, I'm like, they're bigger, they're very mature. I can't tell that they have tapped into

some pieces of life that I haven't gotten to. >> And do you for sure [music] think that Naz has youth on his side, so full of energy, and so full of [music] optimism and excitement, and definitely strikes me as an action taker. >> He was very positive, [music] very enthusiastic, and very young. That was my first impression. >> His his niche is super accessible, especially where he's at, so I think he can he can really have

a lot of success in what he's doing. >> I think the biggest advantage that I have out of everybody is that I'm small enough that I could grow the fastest. >> [applause] >> THE IDEA BEHIND THIS is who do we want to scale with over the next year versus necessarily where someone could potentially kind of fall off. The business is very straightforward. I think the biggest thing that I don't like about the business is I hate

selling hourly with a vicious passion. And so I would do everything in my power to transition to only these realtors and only selling by job so that we can get out of this kind of like rat race and dealing with these high volume kind of BS. Also the competitors that are going to compete at the bottom aren't going to be legit and the customers you're selling to aren't going to appreciate the difference because they are truly

bargain shopping and they might not have things of value. So they might not care if they break and things like that. I Dude, my heart can't do it. I honestly can't do it. I'm supposed to scale or fail and the fail has nothing to do with whether or not the business will fail. This plan will succeed. The reason that I particularly wouldn't want to do it yet is because I think you're too far away from getting

to multiple locations, which is where I would gain more interest. Does that make sense? And so for only the purpose of our big big term discussion I will fail. But from a short term angle you're going to do great, dude. >> Thank you. >> All right, this this will work. Once you get this dialed and you can move up the avatar, this is one step towards not selling for hourly and we can start selling packages, we

can start selling turn key moves. That's where this becomes more interesting and you can start getting into new markets with a clear differentiated product, which then will allow you to really scale. Cool? >> Sounds great. >> appreciate you so much. Appreciate you. Thank you. >> The one moment where I really felt like we were going to scale is when we mentioned the realtors and how much value we could get out of it in the next few

months. Um but the moment when I knew it could be a fail is when I said in the very beginning the goal is to grow to multiple locations. That was really stupid of me. I probably shouldn't have said that at at all, but it is what it is and we're just going to take the plan and work through it. The way I feel right now is I feel I feel amazing. At the end of the day,

it's his opinion. Uh I'm very tenacious, so I'm just going to go back, take that plan that he just put on that beautiful white piece of paper, and we're going to go ahead and execute it for the next 90 days. And let's see how we do. And we'll we'll we'll scale the business. We will absolutely scale the business. >> Physically, it's like I want to be able to apply what we're good at to the business that

can get the most out of it. And all of these things have to happen in the model for it to kind of get nailed before it can scale. And so right now I think he's in the nail-it phase more than the scale-it phase. And so that's why all of these changes are really nailing the model before we scale it. >> To be fully transparent, I really did not have any expectations. Was I really surprised? Just a

little bit. So, in the next 90 days, I have already put a plan. I have already talked to somebody to get a second truck since we've been getting more of the bigger jobs with the realtors. My wife is that's that's what she does all day now. It's just realtors implementing with AI. So, >> [music] >> yeah, as soon as I go back, uh I'm I'm going to have to tell my wife the truth. Can't lie to

her. Um I'm sorry. I did not I did not think this would be like this. Honestly, had they not come here, the business would have grown a little bit, but not at the level it's about to be to be launched. And the reason why it's because I always keep this thing in my [music] heart every single time somebody says, "You can't do this thing." Sorry, I'm getting a little bit emotional there. Every single time, every single

time somebody said I [music] couldn't do certain things, I would just go and do it faster and better and stronger every single time. But I really think that Roadmap is absolutely priceless. Priceless. Cuz we'll make that in again $100,000 that we didn't get, we'll make it in 2 months even before this guy comes back to the show. Maybe he'll change his mind. >> [laughter] >> So, two things. One, I I reference the Scaling Roadmap. Wherever you're

at, you should check out where on there like it's pretty spot on and it's because businesses are not as unique as we think they are. Patterns exist across all of them. So, that thing's free, you can go grab it. But inside my Offers book, um I talk about I think the first chapter is that you're selling a commodity, the commodity problem. And if a customer can look at two things and say these are the same, they

will always take the cheaper item. And so, our goal as business owners, unless your entire strategy is to be the cheapest, which is you want to compete in the commodities game and you built your whole business to be cheaper than everyone else, unless that's your goal, which it rarely is and it probably shouldn't be for service, then you want to be on the other side of the spectrum, which is you want to be the value leader.

And value leader is thinking about all the different components that a customer and all the problems that you could potentially solve for a customer, break them down kind of like I just did, and say, "Okay, these are all the elements that a customer is not thinking about, but once I present them, they realize that these are actually two very different things, which then allows us to price for the right customer at a much more premium price."

Thanks for watching and we'll see you in the next Scalar Fail. Next time on Scalar Fail. >> I'm M Jenkynson and I teach crafters how to make stickers. >> If you double the amount of customers you have, does it break anything? >> No. >> Okay. So, this is a pure demand issue. >> Right. Yeah. >> This would be a higher risk test, but one that I would strongly consider. >> I'm not risk averse. >> Okay. >>

We won't be talking hundreds. >> We have to. How many stickers do people make? >> Oh, thousands. >> Question is, do I want to spend a year working with you to scale this, or do I think there's something that's going to get in the way? So, the verdict is