Rob Parker

yeah sure i mean there's each has its pros and cons i mean there's a lot of value to be had in all three but if we just take a look at each one starting with let's say new construction new construction what's good about it is those jobs can be big i mean if you have if you get the chance to let's say the contract to install new garage doors in a brand new neighborhood

a poultry or there can be hundreds or thousands of homes in that neighborhood that is a massive contract so that scale leads to efficiencies uh those are a lot of let's say in the case of a1 there are a lot of a1 stickers that'll be on a lot of garage doors in a lot of new homes that can have value and that can convert over time to replacement business repair business maintenance business

a poultry or there can be hundreds or thousands of homes in that neighborhood that is a massive contract so that scale leads to efficiencies uh those are a lot of let's say in the case of a1 there are a lot of a1 stickers that'll be on a lot of garage doors in a lot of new homes that can have value and that can convert over time to replacement business repair business maintenance business

Or as those homeowners move to different places, they'll remember A1. So there's value in sort of being the incumbent. The tricky part about new construction is it can be lumpy. New home building fluctuates with the economy, with interest rates, with mortgage rates, with financing, with consumer sentiment. All these things can influence new home construction, and it can be a little bit lumpy.

Or as those homeowners move to different places, they'll remember A1. So there's value in sort of being the incumbent. The tricky part about new construction is it can be lumpy. New home building fluctuates with the economy, with interest rates, with mortgage rates, with financing, with consumer sentiment. All these things can influence new home construction, and it can be a little bit lumpy.

If you look at the commercial side, commercial can be very valuable and there's a lot to like about it. Commercial work tends to be a little bit more, like let's take roofing, for example. Commercial roofing can be a little more complex. The items in that commercial structure, let's say it's a data center. Really, the roof cannot fail.

If you look at the commercial side, commercial can be very valuable and there's a lot to like about it. Commercial work tends to be a little bit more, like let's take roofing, for example. Commercial roofing can be a little more complex. The items in that commercial structure, let's say it's a data center. Really, the roof cannot fail.

If there's a massive water leak, that's a very expensive equipment that gets damaged. So the cost of failure is very high. That work requires very steady maintenance, inspections, make sure everything is right. It's not going to fail. That part of it's really valuable. The downside to commercial can sometimes be

If there's a massive water leak, that's a very expensive equipment that gets damaged. So the cost of failure is very high. That work requires very steady maintenance, inspections, make sure everything is right. It's not going to fail. That part of it's really valuable. The downside to commercial can sometimes be

concentration, longer payment terms, and it's a maybe slightly more sophisticated buyer that isn't using emotion in their decision and is typically making their decision off more of a pricing spreadsheet type analysis. Then there's the residential side. The residential side, the best part about it, it's so fragmented, so big. many, many, many individual homeowners.

concentration, longer payment terms, and it's a maybe slightly more sophisticated buyer that isn't using emotion in their decision and is typically making their decision off more of a pricing spreadsheet type analysis. Then there's the residential side. The residential side, the best part about it, it's so fragmented, so big. many, many, many individual homeowners.

One of our former clients who we recently were with made a comment. He said, you know, I would way rather have 5,000 individual homeowner purchasing guys to deal with than one tough purchasing guy from Walmart. that fragmentation has a lot of value. It can sometimes be a slightly more emotional buy.

One of our former clients who we recently were with made a comment. He said, you know, I would way rather have 5,000 individual homeowner purchasing guys to deal with than one tough purchasing guy from Walmart. that fragmentation has a lot of value. It can sometimes be a slightly more emotional buy.

If you come in and you've got a very tight quoting process, it's done on an iPad, it's very clean, it's clear, it's organized, the homeowner understands it, the technician came in, they were polite, they were respectful, they took their shoes off, all these kinds of things. A homeowner can say, you know, they're more expensive. I trust this person. I think they're going to do right by me.

If you come in and you've got a very tight quoting process, it's done on an iPad, it's very clean, it's clear, it's organized, the homeowner understands it, the technician came in, they were polite, they were respectful, they took their shoes off, all these kinds of things. A homeowner can say, you know, they're more expensive. I trust this person. I think they're going to do right by me.

And you can get better pricing if you do some of those kinds of things. So the pricing can often be, and your margin profile, therefore, can often be a little bit better in the residential side.

And you can get better pricing if you do some of those kinds of things. So the pricing can often be, and your margin profile, therefore, can often be a little bit better in the residential side.

Your example with Dan Miller is a good one. I mean, I remember in my own business at Corton, when my partner and I started, we did everything. I was the one managing QuickBooks. There was one time I forgot to pay our health insurance bill, and my wife called me. She's like, the health insurance didn't work. So I went into QuickBooks and paid it. We were doing everything.

Your example with Dan Miller is a good one. I mean, I remember in my own business at Corton, when my partner and I started, we did everything. I was the one managing QuickBooks. There was one time I forgot to pay our health insurance bill, and my wife called me. She's like, the health insurance didn't work. So I went into QuickBooks and paid it. We were doing everything.

And over time, as we brought people in, and we had talented people in roles that they were well-suited to do, That's when our business really grew. And that's a small example. I think in a business like A1 or a lot of the clients that Eric and I deal with, having experts in a seat, in a role that they're well-suited to perform, and in many cases are way better to do that work than the CEO is.