Hey it’s Brandon Lewis here, and I want to talk to you about inputs and outputs.
Man, was Thanksgiving good. I had three separate Thanksgiving meals, and I have been also digging into the leftovers, so I’m here at the gym to try to make sure I can get my input/output balance adjusted. Maybe you are measuring the wrong things, the outputs in your painting business when you really need to be casting your attention towards the inputs.
Let me tell you exactly how that works. I get on the phone all the time with owners of painting businesses, and they’re continually telling me, “Brandon, I need to get my sales numbers up. We really, really monitor closing rates. We really, really monitor average transaction sizes and ticket sizes,” or they may tell me, “Brandon, we’ve really got to get our profit margins up, and I’m really monitoring our material costs,” or, “I’m really monitoring how we come in on budget,” and things like that. That’s great that you measure the outputs, but let me ask you this. Are you measuring the inputs? For example, you can measure someone’s waist, you can measure how much they weigh, and you can measure it each and every day, but that’s not really what makes them lose the weight.
It’s not really what makesthem drop the inches. What makes that happen is how much time they spenddoing high-intensity interval training, how much caloric intake they’re taking in. If you measure the exercise, and if you measure how much they’re eating and what they’re eating, you can determine if and when they’re going to drop the weight.
Say, for example, in sales. Most people are constantly looking at their closing rates. What they need to be looking at is how often are we communicating with our past clients, and how often are we asking for referrals so that we can get the percentage of repeats and the percentages of referrals up, because those typically close at 65-70%, whereas net new leads off the internet might close around 25-30%.
You might also look at your sales process and say, “Okay, our closing rate isn’t where I want it to be, are we pre-positioning in advance of arrival? If so, how powerful is it? How often do we do it? Are we doing the estimate on the spot? Are we answering our phones live 100% of the time, or is there a certain percentage that it goes to voicemail?” Because if that’s happening, 60% of your calls are being abandoned before you ever get a chance to set up an estimate. Also, there are a couple of other things that you look at. Say, for example, labor budgets. We’re constantly looking to see if our guys are coming in on budget, but how frequently are we communicating with them about the labor budget?
Have we incentivized them to come in under budget? Have we made it clear to them what the budget is? As I get ready to go in here and shed some of these Thanksgiving pounds and hopefully feel a little bit better and relieve the guilt and I’m focused on the outputs, let me ask you this. In your painting business, are you focused solely on the outputs? That’s not what you need to do.
You need to understand what the inputs are because if you change those, the outputs will follow. That includes things like your personal income, net income, sales, and other important numbers that impact your bottom line.
I’m Brandon Lewis with Painter’s Weekly. Do me a favor. I give you lots of free information and content. In exchange, would you go to YouTube right now and subscribe to my channel, and also give this a thumbs up? It’d mean a lot to me.
Hope you had a Thanksgiving. Talk to you soon.