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In this episode of Owned and Operated, we sit down with AJ and Noah—the powerhouse founders behind Premier Home Pros—to reveal how they scaled their home services business from $0 to a projected $174 million in just three years.
Launched from a dining room table in 2022, AJ and Noah built a home improvement juggernaut using proven sales systems, smart team building, and bold marketing strategies that fueled rapid growth. But their journey wasn’t without hurdles. From expensive ad failures to tough people problems, they open up about what it really takes to scale at lightning speed.
Whether you're aiming to grow your home services company, lead a larger team, or implement repeatable growth systems, this episode is packed with actionable insights, operator-tested frameworks, and real-world strategy breakdowns.
🚨 In This Episode, We Cover:
🔹 The $15M Year-One Playbook
🔹 How to Build a $174M Trajectory with Smart Systems
🔹 Hiring Mistakes and How They Course-Corrected
🔹 Why Product Differentiation Drove Explosive Sales
🔹 The Power of Data in Scaling Fast
🔹 Repeatable Sales + Marketing = Exponential Growth
🎙️ Hosts:
🗣️ John Wilson
🎙️ Episode Guests
🧠 AJ & Noah, Founders of Premier Home Pros
🚀 Huge Shoutout to SupplyHouse!
When it comes to fast turnaround times, SupplyHouse has our back! With 250,000+ SKUs covering plumbing, HVAC, and electrical, they make sure we get the right materials—fast and hassle-free.
💡Their Trademaster program offers free shipping, returns, and discounts, all with no membership fee. Use promo code SH5 for five percent off your first order— Code is valid through 9/30/2025.
🔗 Check them out & level up your supply game here
Shout Out to FieldPulse 🚀
FieldPulse is an incredible Field Service Management platform that helps you save hours each week while keeping your operations running smoothly. If you're looking to streamline your processes, stay competitive, and focus on what truly matters, FieldPulse is a game-changer!
📢 Enjoyed the episode?
✅ Like, Comment & Subscribe for no-fluff breakdowns on building in the trades.
Episode 199 Transcript
AJ Wadian: [00:00:00] We demoed at 91%. We closed at 82%.
Noah Jackson: Whoa. For 557,000. Our first month, our average project was like $11,700. That was wet and dry. Yeah, and we're up over 18,000.
AJ Wadian: We were the only company in home improvement history to ever do 15 million in their first year. We were the only company to ever do a hundred million in their first two years.
Noah Jackson: My opinion, you're not running your business. Your business is running. You. Hope is not a strategy, so you need to know everything about how your business converts because then you have a business plan.
John Wilson: Welcome back to Owned and Operated. Today on the show I have AJ and Noah from Premier Home Pros. Welcome to the show. Thanks for having us. Thanks for having us. This is gonna be a lot of fun. Um, yeah, I mentioned to a couple friends. I was like, Hey. This morning I'm having a, a bath company on that went from like zero to almost 200 in a couple years and everyone immediately knew, and these are people all over [00:01:00] the country.
They're like, oh yeah, it's Premier Home Pros. Here's what I would like you to ask them. It was kind of funny. I feel like you guys have done a good job distributing the message on LinkedIn of, of, uh, what you guys are doing. Owned and operated is proudly sponsored by supply house.com. Running a home service business is tough.
Uh, I'm in the grind every single day in my plumbing and heating business. What I look for is ways to make my life a little bit easier. And Supply house.com helps with that. Supply house.com has over a quarter million parts from all the brands that you and your team are gonna love, and all those parts are in stock and ready to roll so you can schedule your next job with confidence.
So supply house.com can also help you boost your bottom line with their free to join TradeMaster program. Over a hundred thousand professionals trust the TradeMaster program every single day for free shipping, free returns and discounts on the stuff that they buy. Use promo code SH five for 5% off your first order.
That's supply house.com, promo code SH five, and that code is valid [00:02:00] through September 30th, 2025. But I'd love to, I'd love to spend a couple minutes and dive into like, what the heck is Premier Home Pros and a little bit of the background, what do we do and, and, and what's it look like now? So
AJ Wadian: AJ Sure. Walk us through it.
Me and Noah became friends in 2018. Uh, we worked for a previous home modeling company, window Nation. Noah came in, uh, as a salesperson working in the office with me. Um, we gained a pretty good friendship that migrated over into a new company. We went and worked at Leaf Filter for a number of years. Um, and, uh, our friendship just continued to strengthen at that point.
So we both had that, that kind of burning entrepreneur itch, like, Hey, like there's a greater calling, like, let's do something bigger. Uh, let's do something together where, you know, we're kind of. The narrators of our own story. So, uh, in 2022 is when Premier kind of started, it really started nothing more than literally at like a dining room table.
We were like, what do we want to do? What kind of product do we want to get into? It was me, him, my wife, and [00:03:00] um, say, you know what? Let's, let's do bathrooms, so let's just try bathrooms. We were looking at the qualified remodel list and we're like. You know, roofing's very, very clouded. There's a ton of window companies in northeast Ohio.
Clouded being like, there's a lot of roofing. Oh, there's just so many companies that are doing roofing, you know? And then, and then the segment of a lot of it is insurance claims. And Yes. Yeah. So we are like, bathroom is a carve out that I think that we have a real opportunity to grow and scale this business.
And, 'cause we always had the bigger picture of Premier is not always gonna be a Northeast Ohio company. It's gonna, yeah. It's gonna grow across the country at least what our dreams were come from where we came. In 2022 December, we ran our first lead. Yeah. I had a background running bathrooms working at Erie.
You know, back in their 2012 to 14 range, Erie ran bathrooms. They, they, now, they're a metal roof company, but they were, at that time, they did everything. They did windows like Erie Roofing. Yeah. Okay. Okay. They were Erie Construction at the time before they branded the Erie Metal Roofing. Yeah. So I had enough background in bathrooms to be dangerous.
And you know, I, [00:04:00] I took a sales system that I wrote back in 2018 and I said, let's, let's implement this in the bathrooms. Mm-hmm. And then me and me and Noah really kind of built out this model of like from A to Z, what it was gonna look like. And a lot of it was on the fly. So 2022 December, we were on our first lead.
We went to Corland, Ohio. Youngstown. Mm-hmm. I literally turned on a home advisor program on a Thursday. On Monday we had our first lead. Me and Amber in the car together we're driving up there. He's like, what do you think this is gonna be? Like I said, honestly, I think we're gonna slam dunk this. Yeah. But I didn't think about what was gonna happen after we sold it.
Like Yeah, if we sold it, like where does it go from there? Like, who's installing it? What, what are we doing with the, the aftercare part of this? Right? So we get up there and it's exactly, we envision, like we sat with this lovely couple, we hammer 'em down, we saw for like $11,300. We get in a car and I go, so Noah, what do you think?
And he goes. I think we can do this. So we're in a car driving home and then, you know, then, then we're taking another guy that is still with our [00:05:00] company today, John Hopkins, and I said, listen, it's gonna be us three this month. Let's just turn on the leads. Yeah, let's knock it out the park in December, the month of Christmas, we demoed at 91%.
We closed at 82%. Whoa. For 557,000 our first month. Now all those sales kind of came in in the first month. I
John Wilson: wanna hit that for, I wanna double click on that for a second. Yeah. 'cause that's, that's crazy. I mean, just the demo rate alone. Yeah. Yeah. Is that exclusive to remodeling? 'cause it's a high interest that's extremely high.
Yeah. That's crazy. Like our demo rate's like 40%, which is considered best in class for our industry. Our, our demo rate
AJ Wadian: presently today hovers between 77 and 80%. That's crazy too. But it was, it was the elite mindset of being hungry. You know? It was, it was a, uh, three people that were running leads. Yeah.
Something fresh. We were rejuvenated of, you know, going from working corporate America to doing this. And, um, the mindset was everything, right? So we were like, we're gonna demo every opportunity we get and we're gonna close every one of them. So we ended with 5,550 [00:06:00] 7,000. And then I was like, this, oh, how to figure out how to install it, man.
And he is like, install it. Like, I don't know any about installation. I said, that's where you're gonna have to, like, you're gonna have to blend a little bit. So he is like. We're sitting in this room in our new office in North Canton, and he's, he's sourcing, trying to find a project manager. And we have this guy kind of an, you know, an intern project manager and we're sourcing installers and at the time we're sourcing products from all these different places.
So then I kind of fast forward and we get to April and, uh, this guy comes in this in our office, and I'm actually not there that day. And Noah's there, this guy named Jake Amron comes in his office. And he says, Hey, you know, uh, I just figured I'd stop by. I was making my runs today. I'm, I'm, um, I'm from Trumble, um, Trumble Industries in Kingstown.
Yeah. And, um, I know you guys do bathrooms, so I figured I'd stop in and see if you guys need anything from product wise. So him and Noah started talking. The guy goes, well, we actually offer this wall system and I, I think that you guys would love this wall system if you've seen it. A sterling wall type thing.
No. So we were [00:07:00] presently selling in our first four months of existence acrylic.
John Wilson: Yeah.
AJ Wadian: You know, high definition plastic, right? Yep, yep. We were selling it fine. Um, but this guy comes in and shows us this, this, uh, this manufactured stone product, which is just unbeliev. Oh, yeah. Unbelievable. Okay, so Noah's first question always is how much, how much it cost, how much is it gonna cost us, right?
The guy goes, well, you know, it's gonna be 40%, probably more than acrylic can like, turn you off like real quick, right? Yeah. So he follows back up a couple days later. It's like, just come out to Youngstown. Just, just come out, see our facility, sit down with the owner team and see if
John Wilson: there's a fit for you.
Do they control the manufacturing of this product? Yes. Okay. Okay. So this is a white labeled product through Trumbull. Correct.
AJ Wadian: Understood. So we didn't realize that we. I'll say it just like this. We didn't realize that like God's blessing was in the next door. Mm-hmm. Like we met this company, we go to this place and everything just kind of fits like a glove.
We, we, we walk in there and we meet the vp, the owner and Jake, [00:08:00] and we start talking about this product and I'm like, I'm wowed by this product. Oh yeah. We gotta make this product work. And at the time, the price of materials was a lot more so. Come to find out as we fast forward, you know, they're the manufacturer of our doors, of our bases, of our walls, of everything.
Interesting. Everything interesting. One company, one stop, seamless transition there, right? So we, uh, we're sitting in this room and towards the end of the conversation, and I, and I tell Chick, which was their bp, I said, I want you to realize something that the, the team that you had here today is gonna be your biggest client you ever had ever.
Mm-hmm. And he's like, well, we heard that before. You know, we heard it. I said, I'm telling you. You don't understand the people that are sitting in front of you. Mm-hmm. Like when we capitalize and commit to something, we're gonna be your best client. We fast forward six months from that day, we're the largest client in the country for.
Mm-hmm. So it's been a great relationship through, through, you know, premier's, evolvement, and as we've continued to mature. So we fast forward that we finished that year at 15 million [00:09:00] and, uh, so full year one full year, one 15 million. Yep. Gross sales. And that's three offices. That's Cleveland, Northeast Ohio.
Pittsburgh in
John Wilson: Philadelphia. What is, and we'll dive uh, more into this later, but what's inside an
AJ Wadian: office? So you have a sales manager, what we would consider an operations manager. 'cause he's kind of in control of the office in all the day-to-day operations. But like his, he's driven to be like a, he's vibes sales manager.
He's your sales manager, right? He's your leader of your, of your office and you have a project manager. He's the guy that runs the crews, the scheduling, the installation, the aftercare of the product, all those things. You have a service manager and you have a sales team and a team of installers.
John Wilson: Okay?
AJ Wadian: And that's your, that's your, that's your model that you have.
And, and from there you build on that. Right? So we fast forward to that year, we do $15 million. Noah stood up in front of, at the end of our, uh, award ceremony, and he said, I think that in 2024, we're gonna shoot for [00:10:00] 50. We're gonna shoot for 50 million. If I backtracked that two months before that award ceremony, me and him sat down and we, we were talking and we're like, listen, we're too intelligent minds, but we can only take this business so far because at the end of the day, we don't know enough about marketing to take it to the stratosphere where we want to go.
John Wilson: Yeah.
AJ Wadian: We need to find somebody that knows the business, that knows the marketing business. So as I'm thinking, and I'm, I'm going through my LinkedIn and I'm going through my network of all people I know in 16 years. I said, I got somebody, I know somebody. Mm-hmm. He worked at Leaf Filter. He was the SVP of Leaf Filter, senior Vice President of Marketing, and I was aware that he moved on from Leaf like a year or two before I left, but I didn't know where he was at in his career and at the time, the way that we left Leaf and moved to something different, I knew if I reached out to him, that was the first thing would come to mind.
He'd be like, huh. You know, I'm sure you guys are doing great, but God, I remember what happened when you left Leaf. It just didn't end well, right? So I didn't think it, he would know who I was. I wasn't sure [00:11:00] he would know who Noah was. So I said, Noah, reach out to him. Just reach out to him. So Noah turns on the sales mode and puts on the hat and he goes, listen, hey, you know, my name is Noah.
You know, we got this unbelievable company at Premier Home Pros. We're gonna do $15 million this year. We think we can supercharge this business to great heights, but we need somebody like you. And he goes, I appreciate you reaching out. Think it's a great opportunity. You guys are doing un unbelievable things, but I think at this stage in my career, it'd be a huge step back.
I moved on from Leaf. I'm now the CMO at, um, a RS.
John Wilson: Mm-hmm.
AJ Wadian: And I got kind of a, a cookie cutter job, but it's white collar and I, I don't really want to shake things up at what I've been chasing for so long, but I'd be interested in talking and Noah said, just have coffee with us.
John Wilson: Mm-hmm.
AJ Wadian: Just have coffee with us.
We sat there at this coffee table and it was a book of our, of our. Trumble samples. Mm-hmm. And it was me. It was me and Vince crammed in a seat together like this and Noah across the table. And I'm a big guy, so I had to sit, I had to sit along. It makes sense. It makes sense. We had this unbelievable, this unbelievable [00:12:00] conversation.
Really an unbelievable conversation. And uh, we left that conversation like, eh, I don't know what's gonna come of that, but yeah. But it gave us some more insight of kind of where the template of where to avenue from there. Right. Within two hours he calls. Calls Noah threw ways me in and he said, guys, when I left that day or two hours ago, I literally ran home to my wife.
Said, I got the itch. Like I gotta be part of this. Like I, I can't miss this opportunity. And I know it sounds crazy, Amanda, but I have to leave when I'm at and I wanna go work with these guys. Mm-hmm. Now, when we first reached out to Vince, we wanted Vince to work for us as an employee, not with us, right?
Mm-hmm. Because we didn't really see the vision at that point of like how we would make it all fit. It ended up being in that, it worked out better. They became in as a third owner, you know? Yeah. So we fast forward through 2024. Can we do $86 million? Yeah. We opened six more additional locations. Yeah, so now we're at nine at the end of [00:13:00] 2024, and then here we are presently chasing 174 million this year.
John Wilson: When you're sitting down, when you're like working through original product mapping, can you, I guess we should even talk about what the service is first.
Noah Jackson: So we do full service bathroom remodeling, uh, in as little as one day. Bathtub, shower, uh, replacements, walk-in tubs, aging in place. Products, uh, we will do flooring, we will do vanities.
We will do toilets on kind of a pull and replace model. Uh, but the bread and butter of our business is, you know, bath and shower replacements.
John Wilson: What is the average
Noah Jackson: order value? $18,300, uh, is our average contract. If you take, we, we delineate it into kind of two types of orders, a wet and a dry. So, uh, wet is always every, every tub that's a tub.
Yep. Tub or shower. Right.
John Wilson: Okay. And
Noah Jackson: then the dry would be outside of the wet area. Floor would be empty. Toilet, some combination that, that's, uh, almost $21,000. And then showers [00:14:00] by themselves are almost $16,000. So the dry
AJ Wadian: is 21 if they're combined or wanna shower and a vanity together. Oh. Floor wet and dry.
Every job has at least a wet.
John Wilson: Okay. What is the smallest, you guys mentioned something like your first sale was 11. Is that like a, the smallest? Well, yeah,
AJ Wadian: but sale has one up throughout the years.
John Wilson: Yeah. Yeah. I'm, yeah. I'm, 'cause I, I think what I'm, what I want to get to Sure. Is like, well, what, what is the service?
What's the timeline? Sure. But also, like, I think what makes this fascinating is probably the skew count seems pretty tight. We try
Noah Jackson: to keep it as, as, uh, as tight as possible. We, we do kind of pride ourselves on bringing a very customizable and. Almost a la carte process to the home. Yeah. Um, you know, you know, as a business you have a lot more skews than, than we have, but you wanna keep your skews as tight as you reason reasonably can while still keeping your customers happy.
Yeah. So we offer 14 different wall systems. It's 2D seven different colors, two different patterns essentially, and [00:15:00] yes, you know, four different bases and a handful of doors. And just let the customer kind of pick and, and choose their finishes and yeah, match it all together. Almost like a bespoke model where they choose what they want.
John Wilson: Um, and that's like 20, 30 combos, sounds like.
Noah Jackson: Yeah. I mean, or take, yeah. Give or take, you know, in terms of order value over the years in, in, we're in our third year now, we're starting our 29th month in existence and in May it's gone up con considerably and consistent. Consistently as we've grown. Yeah.
Some of it is, is growing into. More expensive markets or markets that have a higher cost basis for anything that you would buy in Philadelphia versus northeast Ohio. Right? Yeah. Um, but then Al also, you know, we had a, a cost bump when we switched from acrylic when we started to our engineered stone product now considerably.
Yeah. Um, and that was a calculated bet that we would have a higher average order value and yeah. That was 100% incorrect. Yeah. Um, but yeah, it's, it's, it's gone up considerably when we first started our first year. Our average project was like $11,700. That was wet and dry combined. Like [00:16:00] everything Total.
John Wilson: Yeah.
Noah Jackson: And we're up over 18,000 now. We're able to offer a few more higher quality things to our customers that they absolutely love. Um, but we're also getting better. I. At, uh, being able to, to find some of the really finer things that customers,
AJ Wadian: but talk about that, like don't, don't leave that part out.
Talk about the first year of like how we did everything and how we've streamlined this so we have a higher ticket, average sales price now.
John Wilson: Yeah. I think that's what makes it scalable. I mean, it's the, like the most you count, like that's my dream. I've always joked that like my dream scenario is all I do nationwide is install water heaters.
Sure. Because that's like six SKUs. Yeah, I would love to, I'd love
Noah Jackson: to hear about that. When we first started, we would sell anything in a and everything. Yeah. Okay. We, we had installers that do it, right? Like, we're not,
John Wilson: we're not, so like siding, like, oh, no, no,
Noah Jackson: no. Within the bathroom. Okay. Knocking out walls.
How far did
John Wilson: we
Noah Jackson: go? Yeah. Knocking out walls, widening doorways, moving van, uh, plumbing
John Wilson: advantages. So like really a construction company.
Noah Jackson: Yeah. At that point, a little too much. Right? Yeah. And, uh, we, we. We did it well, we did it right. We had the right people to install it. You can't sell [00:17:00] something you can't do, right?
Mm-hmm. So we always kind of focused on that, making sure that we could actually enact on the things that we promised homeowners. But as, as we got to the end of, uh, 2021 across three or 20, 23 across three offices, and we said, this is a little more complicated than a scalable model is going to allow for, we need to chill out on this.
So no more moving toilets, no more busting out walls left and right, and moving plumbing and vanities and all, and all this jazz and building walls. No more of that. Let's turn into a pull and replace company and get our skews down, but also get our labor items down as well. So our installers aren't trapped at a job for seven days, not making enough money.
We gotta make sure these guys can, can feed their families and yeah, can turn jobs. So we've got really, really good at not just marketing for the things that we want to do, uh, and more pull and replace model, which is really what we've started. I don't wanna ever say master. We've started to get very good at that.
Yeah. Yeah. We really simplified things that we won't do anymore as well.
AJ Wadian: Said no. A
Noah Jackson: lot
AJ Wadian: more said
Noah Jackson: no to our sales team.
AJ Wadian: And you know, those [00:18:00] houses in northeast Ohio and the Cleveland area that have the old sixties pink tile wrapping around the border of the walls that's going into the tub. We used to tear all that out.
I mean, we would tear all that border tile out and replace the dry wall. And, you know, you, you think about dryer replacement and sand and, and mudding and finishing, you're there three days and Yeah. Yeah. And then just so that's how we, we
John Wilson: used to do bathroom models. This was forever. Sure. Yeah. So when I bought the business, we were like a million total dollars of whatever to do.
And we were doing bathroom models and it was these $35,000, $40,000, like spoke bathroom ohs. And every single one would take like three to four weeks. Yeah. So, and I got out of it as fast as I could 'cause it was like. It's crazy. You're so bogged down. Yeah. You're bogged down. It, it, it doesn't make any sense.
And margin was terrible. Mm-hmm. So we've sort of avoided, uh, baths, but like this makes a lot more sense to me. Yeah. You
AJ Wadian: know, bathrooms and kitchens are those projects that people spend a lot of time in those rooms and they look at every single [00:19:00] fine issue that you could find inside the bathroom and they go, oh, that trim doesn't look perfect.
Or, you know. Yeah. So we were like, it's almost impossible to perfect this. Yeah. And execute it to where the customer's always happy. We just have refined the process and just made the process a lot more streamlined. It's easier to,
Noah Jackson: I like to say that we commonly, we've built the airplane while, while it's in the, in the air.
Yeah. Right. So
John Wilson: when, when you, it's been fun when you did that, the transition, um, maybe like saying no, I don't know if it was like a hard stop or like, you know, over a couple months, but I would assume the first concern was like, what happens with the closing rate? So like, what did happen with the closing rate?
Huh. Number one
Noah Jackson: more jobs. The question isn't when you say no to a customer, you know, are they all gonna say no? The question is when you say no to a customer, which that's not really our bread and butter, a customer really appreciates that. The question is how many of those customers are still going to say yes to what you can't offer?[00:20:00]
And we found a very large portion of them still say yes. And look, at the end of the day, the customers that don't wanna hire us because they want more of a full service model and a really complex build, we're probably not the right company for that. We're, we're probably not. You know, everybody is, is good at what they're good at, and we know what we're not and what we shouldn't be.
Um, and, and for us it was the clo, the closing percentage went down a couple percent, but that just accelerated our cash turn 'cause. I, I don't think we would ever say we don't have enough business. Mm-hmm. This is almost an insatiable market if you do it the right way. Um, and we just found ourselves into more of the jobs that we wanted that served us right.
Served our customers Right. But ultimately, um, accelerated our cash turn at the same time because when it stuck in homes for seven days or we're, we're, we're not having too big of a backlog. We're right in the meat and potatoes of what we wanna do. Yeah. Just accelerating that.
AJ Wadian: Yeah. We were able to. Scale down the expectations with the customer, recenter the focus on what was really [00:21:00] important to 'em, and most of the time it's the shower.
And then really train the sales team in the transition of how to communicate it properly.
John Wilson: Yeah.
AJ Wadian: So that the customers are okay with those expectations. Like let's not gripe about the 5% of the bathroom that we can't do, let's talk about the 95% of the bathroom that we can do.
John Wilson: Yeah.
AJ Wadian: And we found ourself as we went from like a 57 close down to.
A 53 and we were doing way more revenue.
John Wilson: Yeah.
AJ Wadian: And our installers were happy because they were making more money 'cause they were getting into four or five jobs a week versus two. Yeah. You know, so it was like, it ended up being a really, I would say, a win-win across the board in every aspect that we could check a box next to.
John Wilson: Yeah. Yeah. I mean, that makes total sense. So limited the SKU counts limited the amount of products were in place. And you guys, you guys are sort of the, what's the, what's the opposite of a mullet? You guys are like party up front business in the back, right? So like, yeah. Bangs. I don't know. I think it's what the, I think
Noah Jackson: it's what the teenagers have today with their curly hair down.
Yeah. Yeah. They can't say it on. I'm [00:22:00] just glad you
John Wilson: guys got what I was putting. Yeah, yeah, yeah. But, but sales and marketing and we're finding partner companies to install our products. Yeah, yeah, yeah. So what's it look like finding and sourcing vendors in like Pittsburgh, like you guys are here in Akron, like what did that look like?
Like it,
AJ Wadian: it, it's went through phases of, of growth. Obviously every department has broadened dramatically. Right. Our recruiting team now is, is a broad team. Um, in the beginning it was just my wife. She was the one person recruiting for the entire country that we had. Mm-hmm. It's really just going to the market, posting the ads on Indeed and all your, all your hiring platforms, vetting those calls up front.
Hey, listen, do you have tools? Do you have a trailer? Do you have a truck? Do you have reliable transportation? Do you have workers' comp and liability insurance? Yes, great schedule you for an interview, right? Project manager fields those interviews and filters out and um, I would say no market has been challenging.
Like no market has been overly challenging finding installers because. Premier pays well, we pay well. We believe that we would pay, we would rather pay great on our sales team and pay great to our [00:23:00] installers, and we will figure the other stuff out in the back that continue to be a profitable business, which we are.
Um, but when you pay talent, talent stays, right. That's just what it comes down to. Um, and when you're dealing with bathrooms and you're dealing with the intricacies of what the liability and risk of a bathroom can be, you better have good people installing it. Mm-hmm. Him saying, we simplified SKUs, we got into more systems.
We've created processes with how we install, which products we offer, what kind of sealants we're using, what all the different options on doors and niches and shelves. Just refine that so that we don't have a million different ways to skin the cat. Mm-hmm. Let's just, let's make it one or two different ways.
And it's a lot easier just picking colors and changing the colors. So I would say as far as getting the labor has not been difficult. We start every market with. Like I told you, an operations manager that controls the sales team, a project manager, which controls the install team, and then recruiting goes to work.
We fill and we build, we build around that. We got a sales leader and an install leader, and we build around [00:24:00] that. And, and there's a, there's a work through process where you're filtering out if the sales person's the right fit as they go through training. Each one of those departments go through a strenuous training.
We put 'em through a complete premier sales product training, complete sales process training. And then the same thing with install. They go through an install training. We need to know, I've been doing this for 20 years. That's great. Let's see you install the product, let's see you take the product and install it.
Making sure we know you know how to move plumbing and you know how to mess with the P trap and change the valve and do all the things that people say they can do. Let's make sure you know how to do that. Yeah. Before we send you out. We have a field trainer that takes these installers out for the first week and they shadow.
Yeah. Then each day of the install, we start to kind of pull the shell back a little bit and say, now you do this step, let's watch you do it. You know, before we kick 'em loose. So we know that by the end of that week that we've taken these people out, they're ready to go, we know they can do the job.
John Wilson: Mm-hmm.
Noah Jackson: And how, how, how we've kind of structured our business. 'cause when you ask, you know, how do you find installers and stuff, it's. We know it's a process to find the right, [00:25:00] uh, a collection of the right installers, right? So going back to the genesis of this company, we started the company with no debt. We still have no debt to today.
We're cashflow positive, fully profitable, and we haven't taken $1 a debt. And, and we built this p and l from the beginning to be almost 70% variable. So if we don't sell a job, we don't have any costs. Other than employees and some marketing costs that are recurring, we're going to sell jobs, right? Mm-hmm.
So, um, it allows us, when we greenfield a location, a lot of companies are doing m and a and they're taking out debt, buying other company's systems, processes, and kind of trying to merge 'em into a platform and make 'em all one. Um, for us, we have a 46 day pay payback period on any Greenfield location on average.
And the reason why is because our, um, our p and l is basically fully variable and. We're not out a ton of investment over time. 'cause the, the, the market starts cash flowing very quickly and so it allows us to buy time to find the right installer base. It allows us to, to find the [00:26:00] first two good installers.
Really work with them, get another one in there, and over time build the right collection of people so that when we can accelerate the marketing, when it really starts to dive in ninety, a hundred and twenty, a hundred and eighty days out, we have the installer base, we have the sales base, and we're ready to just, to just start moving business.
John Wilson: Inside the 70%. That's variable. What's the 30? That's not like base comps. DNA marketing Yeah. Two things, right? Yeah. Yeah. And, and variable. Are we counting cogs in variable? No. Okay. So that's like variable opex.
Noah Jackson: That's
John Wilson: interesting
Noah Jackson: because cogs only happen when the job actually only gets installed.
John Wilson: Right, right, right, right.
So we, we drop in a new manager, we greenfield. Sure. 48 day payback or six on six. Yeah. That's wild. What is, what is the dollar that it takes? Like a hundred thousand dollars to start a market? Yeah. For
Noah Jackson: us, less than that. If you look at the totality of the cost, it's like $96,000. I haven't updated in the last 30 days, but it's [00:27:00] typically right around a hundred thousand dollars to get a market started.
But in terms of cash flow or cash out to cash in, um, it feels like much less than that almost immediately because what we end up doing is. There's a premier way. We've coined this, this model of this is who we are, this is how we do business across, you know, 200, 300 people in this organization now. And we try to find the, the, the right people.
We always say, if you have the right person, you have the market right? And we've got marketing planned out for the next 30 markets. We already have the zip codes that we want to attack and the, and the type of homeowners we wanna go after. We're looking for the right operations sales leader, right? That can convert our spend into revenue.
And once we find that person, we get them through training, we get the lease, they get into the market and they immediately, three days before we actually wanna start running leads. We buy the marketing, we buy the leads, they start coming in, call center, starts qualifying them, getting a scheduled, built together for a couple in-house sales leaders to go out to the market with that new sales manager.
And start, uh, selling projects and generating revenue at that [00:28:00] point. We have our sales trainer in-house that is this training, the first team of sales reps to go out in the field in, you know, a week or two, uh, to join that sales manager. And then we just kind of get it started from there. So almost from day one, when we're running leads inside of a market
John Wilson: mm-hmm.
Noah Jackson: We're starting to generate revenue. It's because we have the right leader to get out there and, and grow it from nothing. We have the system, the playbook.
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That's Field, E-U-L-S-E. Head to their website to learn more. Field pulse.com. Something that's been really interesting, uh, as we're looking to, uh, Greenfield, our next spot is a like industry standard, which I, I'm curious if it's the case with what you guys have seen. It probably is with roofing. But industry standard, um, for Greenfielding Plumbing, HVAC electric is, uh, I'm gonna come in and I'm gonna drop 80 grand a month of like branded.
Sure. Spend. That's the difference. Yeah. I mean, that's crazy. And, and then so then it becomes this like, race. You know, first off, you're already down a million dollars. You know, I was talking to someone, um, I was talking to someone Monday and five location shop in Pennsylvania, a hundred and. 30 of revenue.
So like that's, you know, [00:30:00] that's a lot. And they're getting ready to greenfield their next spot and it's half a million dollars in the first 90 days. Yep. All brand. And it sounds like that's not the place, like we're buying leads. Yeah, absolutely. Yeah.
AJ Wadian: It's the best way to keep your comm low. Yeah. Yeah, for sure.
I mean, you're going to have, you're gonna have to weed through a lot of fat. You know where, where you're paying for a branded lead that is calling you specifically your brand. They're calling you. Probably not shopping you and your conversion rate to convert that to an appointment, it's probably like 95%.
Right? Unless you hear some kind of a red flag on the call that says, yeah, we're not a good fit for you, or we can't help you. That's such a high conversion rate where when you're dealing with affiliate marketing, you're, you're weaning through a lot of things that the customer's window shop and the customer thinks that they're, that we just do repairs.
We're outside the work scope. So are you guys branding, I mean, it sounds like you're buying the leads directly. We do both. Okay. We do both. The, the, the weight of percentage is much higher with affiliate marketing than it is with branded. You know, what, what does affiliate marketing mean to [00:31:00] you? You know, you're, you're, you're buying leads from like, you know, like Angie's List?
Yeah. Okay. Angie's List. I've, I've never heard that, called a affiliate market. And affiliate marketing can be a non-branded lead, or it can be a branded lead. Okay. A non-branded lead is, Hey, I'm just interested in a bathroom, and I just put my name in there and three or four companies call me. Mm-hmm. And first one there probably wins the job.
Right. You can close 'em on the spot. Uh, a branded lead is, um, the affiliate marketer creates a campaign that has your logo on the lead, whether it's a social ad or a banner ad, and they're running it and saying, this is premier. You know, we're, we're advertising for a bathroom. And people are clicking that and they're only, you're only getting their form.
So it's, you're converting at that at a higher clip. Cost per lead on that is a lot more expensive than just buying it for a pool, you know, but there's a place in time for each one of them. Yeah. You know, we, we run a lot of non-branded ads that. Um, with affiliates that happen to be our best cost of marketing conversions, like, you know, sub 15%.
So, yeah. So it's, it's a, it's a great lead source. But yeah, there was definitely, I think it's way more difficult to scale a [00:32:00] business going with brand leads way. Oh yeah. A longer timeframe. Yes.
John Wilson: Well, it's a longer timeframe and it's un. The front end prohibitively expensive. Yes.
Noah Jackson: Our, our bet was always to buy the demand that exists while we work on generating demand through our brand.
John Wilson: Yeah. And
Noah Jackson: that's, that's a, I
John Wilson: think that's what makes sense to me too. I, I think, and I, I'm wondering if it's a generational gap of, uh, like the folks that I'm seeing doing the branded spend tend to be like, that worked 10 years ago, so that's how we're gonna do this. Um, but like. It, what's your funnel now for, for just buying leads?
'cause the leads are there. Mm-hmm. I mean, the leads are there for bathrooms, but you have to be able to convert, like everybody needs a water heater. Yeah. And I, I think that's a problem in our industry. Like you guys don't have, I I think it's kind of funny to compare industry sometimes because, and Vince probably has this perspective too, from like dealing with plumbing and like our industry is so drunk on hot leads.
That they don't know what to do with an Angie's list, [00:33:00] should, like, they don't even know what to do with it. Uh, they don't know what to do with like door knocking or like, uh, events because everyone's always expecting that bottom of the funnel, my toilet just broke, my furnace didn't turn on today. And I mean, you can get pretty far, like you can get to 20, $30 million on emergent leads, high close rate.
Uh, but no one has like. Very few people have that funnel dialed in on acquiring leads the way you guys have had to acquire leads since day one. Yeah. Your, your, your industry
Noah Jackson: is, uh, and Vince can speak to this a lot more, but it, it's a need industry more than a want. Right. And ours is a, we have a need. We definitely have a need.
Uh, there's a lot of want. People will look at their pink tile bathroom and say, I, I want a new updated bathroom. Yeah. Yeah. So we're able to capitalize on that a little bit. It's a little bit of a different type of consumer process. Um, but part of the, part of the thing with like the, the, the payback period kind of goes back on [00:34:00] on a green field of market, kind of goes back to chasing branded or chasing like current demand with affiliates is part of the reason that he was so excited to come over to Premier Home Pros, um, and, and make it happen is because, I mean, he was the chief marketing officer at a RS that's a $2 billion plumbing in HVAC conglomerate.
Right, right. I think they have 120 brands or 50 brands, something like that. Huge. So just a larger version of what you guys are Yeah. Much. Right. And he's like, it's a two year payback period. Yes. Because we have to get in and anytime we open our markets, its two year payback period are millions of dollars.
'cause we have to get in there and saturate our brand.
John Wilson: Yeah.
Noah Jackson: And wait for the phone to start ringing at this time. You need trucks, you need
AJ Wadian: just, they're almost all m and a though. And they're hovering at a 10 as 12% ebitda. Yeah. So they're heavy and, but they also do affiliate marketing. Sure. They have a, there's, I think it's like about 20, 25% of their business Yeah.
Is affiliate marketing. So yeah. Like I said, there's a place in time, but I think, no, I mean, 46 day payback is wild. Yeah. That's amazing. It's 'cause there's real
John Wilson: want generat or demand that, that that's a hell of a flywheel buy and convert. Yeah. Like, yeah. That's incredible. [00:35:00] Back to, um, I, I accidentally skipped this, but I'd love to understand it a little bit more.
So like we're sitting at, we're either sitting at the kitchen table mm-hmm. Or we're at a, at a cafe, but we're setting the tone for what we're gonna do. Mm-hmm. We're gonna launch a bathroom model company. Yep. What, what was the original vision like, is this original vision? Are we, are we surpassing where we thought we would be at this point?
Like. Yeah. I mean, because this is crazy. Yeah. From the outside, looking at, we're dreamers, number one being,
AJ Wadian: being a hundred percent transparent and upfront, like we dream big, like Yeah. Yeah. From the get go, like we came from two jobs working at lease, making absurd amounts of money.
John Wilson: Mm-hmm.
AJ Wadian: Where most people would never leave that job.
They would never even consider leaving the job, you know? Mm-hmm. When you're bringing in 600,000, a million dollars a year, you're not leaving that job. Mm-hmm. But it wasn't about the money. Mm-hmm. It was just about. Like, I got to that point in my career where I knew I could serve better doing something different on my own.
And, and he was in the same alignment. [00:36:00] We're like, this may end up epically failing, or we're gonna be like, we're gonna transcend the industry. Right. Uh, one of the two things are happening here. It's either we're going bankrupt or we're we're gonna be extremely successful and. You know, I'll tell you every time I'll bet on myself, I'll bet on myself every time.
If my back's against the corner, I, I believe I'll fight my way out. And he feels the same. So when we envisioned Premier, yeah, we envisioned Premier to be a national footprint. Mm-hmm. Like from the get go now, there was a lot of like stepping stones and like getting off the road and coming back on and there was multiple break points.
We're like, whew, are we gonna get through this? Lot of luck. You know? Yeah. A lot of good things had to happen. And what, what were some of the break points? It it's a people element, right? There's a people element and, and, um, you know, people that you believe are loyal to you or that are gonna come through and do their part and, you know, you're paying for talent and they fail you or, um, or.
People leave you high and dry [00:37:00] and you know, you're dependent on one person, run a market, you're a leader, and, and that person leaves and now you get this gaping hole. Yeah. Or your sales team ends up depleted or, or marketing market doesn't come through. Yeah. Or marketing's failing in a market for a short period of time.
Um, or, you know, installation just can't get up and run at the speed that you want 'em to get to. So there's, this is a human capital business. Like I was asking in the hallway. I'm like, is this an asset driven business or is this a human capital? This is human. Yeah. We're a human business all day. And you rely on people to.
Deliver the message and execute for you. And, and, uh, that's part of it, right? So when we sat down our, our vision was let's create this to be, uh, just a monstrosity. Let's create this to be something great and let's do something that no bathroom company's been able to do. There's plenty of other companies that have done this and other industries in the home improvement industry, but maybe not bathrooms, like, let's do this.
And, uh, that was always the goal. So. I would say yes to that answer that when we sat down, when we pitched it to Vince, it wasn't, Hey, we plan to be a $15 million [00:38:00] company. No, we took it to zero to 15. We were the only company in home improvement history to ever do 15 million in their first year. We were the only company to ever do a hundred million in their first two years.
Let's continue that pace. Like let's not stop there, right? We don't begin with that end
Noah Jackson: in mind. We try to set up systems and processes and people and put 'em in the right. Lane to do things and then we just, we dream really big. It's almost like an irrational self-belief. I don't know, but, and I al, I, I al I told you this before we started, we're just, I guess, dumb enough to try it where it's not that we're irrational wi risk takers where we, we take risks that we shouldn't take or anything like that.
It, it's, um, we just. Always wanna build it bigger and bigger and bigger and go and go and go. And there's not a natural stop sign in our heads, uh, for this. And your business will tell you what you can or can't do. And, and you gotta push, you gotta push the limits, like to get a little bit uncomfortable and it'll tell you when it's time to, [00:39:00] to kind of slow down a little bit and, and focus on quality.
We could have done $120 million in, in sales last year in 2024. We landed the plane at $86 million because it was the right thing to do for our customers and right thing to do for our infrastructure. But. You know, during that time we bought ourselves time to build it up to do a hundred seventy five, a hundred eighty this year.
So we didn't ever begin with any ends in mind. You know, when I got in front of the, the, the entire company at the end of 2023 to celebrate our successes in year one, and he, he mentioned, I had said, Hey, I think we're gonna do 50 this year. We had modeled that out, um, but we didn't put a cap on it, and we found ourselves at, at 86.
We didn't say, this is our business plan, Jan one. This is what we're doing this year, and we're not deviating. It's like, no, this is a living, breathing ecosystem. You never stop acquiring talent. You never stop building around your talent. Uh, and then at the end of the day, it'll consistently tell you what you should or shouldn't do.
And you need to listen to your business.
AJ Wadian: And the unique thing is, is that. I told you earlier that all the owners are very different, right?
John Wilson: Either
AJ Wadian: Noah falls almost [00:40:00] into the conservative category with a lot of things like where he's like, oh, pause time out. Like, and me and Vince are like, pedal to the metal baby.
Like, we're going, let's push this gas all the way down. Mm-hmm. Like, we're, we're driving this to the moon. He's like, slow it down. Let's slow. We're not ready for this. You know? So there's a good balance there because that happens all the time. You know, where I'm like, dude, let's do. 200 million a series. Oh, hold on, let's, let's shoot for one 50 or same thing with the 50.
Like, let's, let's shoot for 50. I'm like, I think we can do a hundred. You know, and, and then it's usually because of we can't because of this, this, this. Correct. All
Noah Jackson: first it's not just stop to
AJ Wadian: stop. Yeah, yeah, yeah. And then we still end up getting there. But it's a good way to like Regear and look at it through a different lens and say, okay, what's the, what's the bumps in the road on the, on the way there.
Right. Um, but to go back to this premier story where we kind of found like. I guess I'll use the word like the unicorn of the business was that you have to have a couple things that, that happen in line to scale any business. The first one is, is you better have a [00:41:00] documented, well-trained sales process, like it has to be to a t, A to Z, completely trained through and through your company.
It's still, it's the living, breathing thing through your business, right? You have to then cultivate that in every other demo, every other division, your call center has to have a script. They need to know how to do rebuttal training. There needs to be a process of how you, how you, you know, uh, harness all the leads and where do they go and where do they store.
There needs to be a CRM that talks to, you know, an automation and everything needs to kind of funnel together, right? But the biggest thing is, is you gotta have a, a, a unique selling proposition. If you're not, if you're selling a product. For you to scale to the way that we wanted to scale, you had to have a unique se selling proposition, a product that was unique, that's different from everybody else in your category.
If we would've stayed in the acrylic world, we would still be successful. One, the margins wouldn't be there. Two, the average sale would never be there. And three, I believe our turnover inside our infrastructure would be high because we're competing with a lot of companies that do the [00:42:00] exact same thing.
You can only do it so well. People are gonna buy at that point, your process. They're not buying your product. We wanted people to buy our product and then our process was second, right? Our process got us to the product, but the product is what makes us unique. So is this a lesson learned from Leaf 'cause that feels like a portion of the Leaf strategy?
It's been my process for 16 years in every company I've ever worked at. Like when I look at every company I've ever worked at, that was three of the top five companies in the qualified remodeler, and they owned their distribution. They have a unique product. Yeah, they have a unique product, right? Yeah. So we were lucky enough.
With this product to find that. Mm-hmm. To have to go with the state of the art selling system. And then we bring in this marketing who that can get the leads. And it was like all those things jelled. And then there was one missing element in the business, finding the right install leader.
John Wilson: Mm-hmm.
AJ Wadian: Finding a person that could take your company to the next level.
And we happen to have deep networks and it was a person that I've worked with for. We on 13 years that was at [00:43:00] Leaf and mm-hmm. You know, was looking to grow in his, in his, in his career. He wanted to take the next step. So timing's everything too, right? Like, that's part of it is where are people at in their career?
Are they willing to take a bet on you? Because that's what they're doing. They're taking a bet on us. Mm-hmm. We're, we're young and ambitious, and you are knowledgeable, but we don't have a brand, we're a young company. Right. At that stage, people were taking bets on you and, um, we were lucky enough to be able to tap into a network that.
I had for a long period of time in the sales industry that people took a bet on us, and that's how these markets became great markets was we had the right person. He made that, that saying to you, he said, if you have the right person in the market, mm-hmm. That's what it starts with, having the right person.
So we were lucky enough to have good people around us to build the business. That's where it starts, that end process. Yeah.
John Wilson: There's, you said 200 people on the team. Is that inclusive of contractors?
Noah Jackson: Like, yeah, and I 90 nines with, with 10 90 nines. I think it's over 300 now. Yeah. Okay. Yeah.
John Wilson: What's the, what's the org chart like, [00:44:00] look like?
Noah Jackson: Um, what, what facet, I mean, you know,
John Wilson: how many sales, how many frontline leaders, what senior leadership? Yeah.
Noah Jackson: So we've got look like, you know, obviously head finance, head of install operations, head of marketing. Um, head of call center. Uh, and then he heads up sales. And then we have several senior seasoned sales leaders that run regions, uh, kind of manage managers, if that makes sense.
And then, you know, we got managers in the call center. We got managers all along, you know, ordering and, and, um, and, and, and installation. And so it's. How many corporate employees inside the building? Gosh, over almost 600. No, almost a hundred now with all the call center inside sales reps.
John Wilson: Yeah. And inside sales reps for your industry.
That's like an inbound lead and outbound lead. Like that's rehash. That's rehash its own. Yeah. We've rehash in its own, but like inside sales for you guys, like that's an Angie's list lead would go to inside sales. Yep. Okay.
Noah Jackson: Anybody, [00:45:00] uh, that fills out a form or sees a commercial calls, anything like that?
Yeah. Yeah. And then we call and try to be the first person on the phone with them and get out there today, if not tomorrow. Yeah. Yeah.
John Wilson: Okay. Okay. I'm imagining all the friction of growing an org chart that quickly. Mm-hmm. Um. Obviously people, but like as we're thinking about growing leaders inside the organization, is that, has that been the path?
Like how much of it has been growth inside versus obviously clearly we talked about some really key pivotal outside hires.
Noah Jackson: I think we've, uh, defined your, your top leaders. We had to go outside right. And then let them start cultivating people on the inside. Yeah. We're really starting to get to that pipeline where Yeah, people know the premier way they came up through the work.
Um, and we want to get to a culture where we only promote from within.
John Wilson: Yeah.
Noah Jackson: Uh, and we're almost basically there. Uh, but to start it from the genesis of it, you gotta find the right person that's probably done it elsewhere and then Yeah. And let them kind of start the systems processes and in their department [00:46:00] and then yeah.
Put people in there and let them work, work up underneath
John Wilson: them. That's kind of been our model. Yeah. We, we've seen that for us too, like heads of departments have come from outside. Sure. Some director from somewhere else that's been able to sort of. Convert their frontline leaders into, into more, how large is the recruitment team?
I just gotta know that. Yeah, they're, they're a team of five really. Team of five. That doesn't even seem like that much. No. But for the
AJ Wadian: amount of hiring you guys are, they're, they're broken into divisions and markets, you know, so, like region? Yeah. So like, um, you know, Audrey will take, she'll take the Midwest, she'll take Chicago, Detroit, Cleveland, and Dayton.
And with those, she'll handle all the facets of operations there. She'll handle the installers. Yeah. We don't circulate project managers. They stay where they're at. Mm-hmm. People are happy in their jobs. Same as service tech and field trainers. It's not a heavy circulation position. A lot of installers constantly, constantly bringing more people in the door and salespeople.
Yeah. So that's really your two areas of recruiting that you're spending a [00:47:00] majority of your workflows on is those two areas. Yeah. And then the same thing with, um, you know, and then we just, and if we add a region, like if we go to Minnesota, which we're gonna go this year, she'll take on that part of her region as well.
And each one of those five people have, have a region and, and. A number of duties to, to do. So
Noah Jackson: they'll set up interviews for the leaders that are going to interview those mm-hmm. Candidates for those positions, and then they'll choose their person. So sifting through resumes, having an initial calls and setting up initial interviews and then they take it from there.
John Wilson: Yeah. When you guys are in this current state, uh, hopefully perpetual state of hyper growth, how much are, I mean, tracking, like gross margin and net margin has to be a moving target. I would assume, how, how are we dialed in on that? Or is that like we will take care of that in a year or two years and just try to get better?
I
Noah Jackson: mean, we're, we're always tracking it, uh, month by month. You know, the really cool thing is [00:48:00] we've been, I don't know how we've done this or if it's different from other companies, but we've been able to calculate almost down to the dollar or down to the percent within a plus or minus a 2%. Um. Our conversion rates down to how, how it plays into net profit in the end.
So, um, we've got, so walk,
John Wilson: walk me through that. Like 53%. Yeah. So 54%, like what happens
Noah Jackson: with net? For us, our model starts with marketing, um, modeling outta market and then sending the zips that we will and we'll not, um, buy leads in out to our marketing partners. They will tell us. Then how many leads that they can get us per month.
John Wilson: Estimated.
Noah Jackson: Estimated. And then from there we'll take all of our conversion metrics and we'll dial the business down to a net profit percentage at the end of the day and damn near land the plan every single time near it. Um, so it, it's a constant moving target. We know what we've modeled this year to look like.
John Wilson: Yeah.
Noah Jackson: Uh, last year we didn't try to make money. We ended up making money. We didn't try to. Because when you're in [00:49:00] a green fielding six locations and you're not even within 24 months of opening, it's like you're not trying to make money, you're just trying not to lose it. We did that. We made some money.
It's very, very happy to say that. Um, it's almost hilarious that we did. But, uh, and this year is a year of doing it much more profitably. We are doing that now. Uh, and we have a finance team and they model it out and we. We know our business inside out because we're not silent owners. Mm-hmm. We know the, the heartbeat of what's going on in every department and what we can and cannot enact on in terms of a business plan.
And so we're able to model out month by month what the profit will be based on how we've built the p and l cogs, all that good stuff. And then pretty much land pretty closely to it. So, yeah. So yeah. I'm you, I think you can say that we're pretty calculated with it. Yeah. You gotta know your conversion metrics.
AJ Wadian: The data gives us, gives us the answers, right? Yeah. Like the historical data.
John Wilson: And you can ru like, do you run, uh, [00:50:00] a demo rate? Like is demo rate pretty consistent? Yes. Like at the 87%.
AJ Wadian: All, all the KPI metrics are very, very consistent within a few percent. When I say fee, like two to 3%. So when he's talking about like cost per lead, like we know, okay, this is the average cost per lead of all of our marketing team, all of our marketing sources.
Here's the average cost per lead. Here's the estimated raw leads we're gonna get in the market. Here's the estimated set percentage that we have off historical data. Out of that set percentage, how many of those are gonna net set to an appointment Of those net appointments, how many are gonna occur into a demo?
And based on historical data, how many are gonna occur to a sale? Our average selling price. Take the overall leads that we got as net appointments. Mm-hmm. Divide that by that revenue. It gives you your net volume pretty should lead. We know from that point on exactly all the metrics as it just flows down the chart.
And then from there we can basically say, we know that for the year last year we installed 91% of our net revenue as a team. So if we put our net target at 92 or 93%, we know that Detroit's gonna install X amount of dollars at [00:51:00] the end of month. And that's how we set our targets every month. But you know.
Crazy as numbers are. It's like we are within the first Q1. We were within like $200,000 of profit. Wow. In the surplus. Yeah. That's how close it was to them most. Yeah. That's fascinating.
John Wilson: Yeah. That's fascinating.
Noah Jackson: Yeah. If you, um, if you don't know your metrics as a business owner, the inside out conversion rates across the entire organization, you're not my opinion.
You're not running your business. Your business is running you. Mm-hmm. Hope is not a strategy, so. Um, you need to know everything about how your business converts because then you have a business plan.
John Wilson: Guys, thanks for the, uh, thanks for the deep dive. Sure. Into the sort of founding 24 months. Like what a hell of a story.
Uh, this was, this was awesome. I feel like I learned a ton, brain spinning a little bit, but I, I can't wait to, you know, go back across the parking lot and, and drive some of this stuff forward. Sure. Uh, if someone's thinking about, you know, launching, uh, [00:52:00] or like. If someone is thinking about an entrepreneurial venture, like what's a, what's a quick hit from each of you on how they should be approaching this?
Noah Jackson: Gosh, I always say, to be honest with you, I always say don't, um, it's, it's crazy. It's nonstop. It's relentless. It'll take every ounce, uh uh, but if you're built for that, um, you need to do everything within your business. You need to do everything, know everything within your business. You need to have a system and a process for how the playbook of how this is gonna go.
Um, otherwise, I I, I probably wouldn't do it personally, have done this if we didn't know what the playbook was going to be, if that makes sense. It's the most rewarding thing in the world. Uh, it's punishing when it doesn't go right, you know, a lot of sleepless nights and, um, a lot of stress. Uh, but it all, at the end of the day.
Starts with people as a business owner. Don't ever, for one second think [00:53:00] that you're special 'cause you're not. Um, it, it's about the people that you have working for you. Uh, the one team, one dream. And if you don't have good people working for you, you're not gonna get where you want to go.
John Wilson: Second,
AJ Wadian: I would say that everything starts in a business.
That you're gonna start in this industry at least, or any, really any industry. It starts in sales and marketing. So if you have those two things planned out. The rest of the business can formulate to the way it needs to do sales drives your business, marketing gets you in front of the audience, right? So you need to have those two things dialed in.
And then I would say build a business that is repeatable. Mm-hmm. If, if, if, if it takes you to do every facet of your business, rethink the business plan. If you have to physically go execute the service or sell the product yourself, I. Revisit the business plan because you want to be able to teach someone a process or a system that you can repeat and take some of that workload off of you to be able to scale your business.
Yeah. And make businesses from the top line looking down [00:54:00] on your business so that you're not missing all the things that end up turn into losing profit or possibly going on business. Right? Yeah. And it happens quick. So if you don't know your numbers and you don't have the time to reflect and look back and look at the things that are going on in the business.
It does, it happens quick. That's why so many people go outta business so quickly. Mm-hmm. You know, because they're having to do too many things inside their business. So find a process, find a system, make sure that you can repeat that process. And that's the start of a business plan.
John Wilson: Yeah. Yeah. I think, uh, for both of our industries, I think that roughly tracks.
'cause I think everybody starts with, Hey, a i I think about your industry specifically. Like I, I can't count how many bathroom remodelers that I know. They're all like, you know, a million dollars of revenue and it's because they're not sales like they're installation. Minus, yeah, they're installation. It's a fulfillment crew.
Yeah. Correct. Yeah, I agree. I agree. You wanna hear more Go down to own and operated.com. If people wanna get ahold of you guys, how can they do it?
Noah Jackson: WW dot premier [00:55:00] home pros.com? Yeah.
AJ Wadian: Active on LinkedIn. Both of us are active on LinkedIn. Yeah. And then both, both of us individually are actively on LinkedIn, correct?
Yeah.
Noah Jackson: A stream me a message. Awesome. Thanks guys. Happy to give advice to anybody.
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