Weldon Long

Yeah.

Yeah.

Plan B? William Sonoma, kitchenware company, a high-end kitchen for people that are really good at cooking and stuff, knives, pots and pans, all that kind of stuff. A number of years ago, they wanted to put a bread baking oven in their stores. It was going to be a thing. People want to bake their own bread. They go out and find this high-value, great-priced, nice bread-baking oven.

Plan B? William Sonoma, kitchenware company, a high-end kitchen for people that are really good at cooking and stuff, knives, pots and pans, all that kind of stuff. A number of years ago, they wanted to put a bread baking oven in their stores. It was going to be a thing. People want to bake their own bread. They go out and find this high-value, great-priced, nice bread-baking oven.

They put it in all those stores. They can't give them away. If I'm like, well, maybe our customers want something a little – expect more because we're William Sonoma and maybe higher end. They go out and source another bread-baking oven, more expensive. They start swapping out the inventory. Some of those stores accidentally leave both on the shelf.

They put it in all those stores. They can't give them away. If I'm like, well, maybe our customers want something a little – expect more because we're William Sonoma and maybe higher end. They go out and source another bread-baking oven, more expensive. They start swapping out the inventory. Some of those stores accidentally leave both on the shelf.

What do you think starts happening to the lower-cost one? Start selling hotcakes. Right. It's a concept of compromise choices. When you give somebody one option, you're giving them an all or nothing option. Yeah. And then a lot of times they take nothing. When you give them something else, we all go to the middle. Right. It's just common sense. It's just human nature. So you're exactly right.

What do you think starts happening to the lower-cost one? Start selling hotcakes. Right. It's a concept of compromise choices. When you give somebody one option, you're giving them an all or nothing option. Yeah. And then a lot of times they take nothing. When you give them something else, we all go to the middle. Right. It's just common sense. It's just human nature. So you're exactly right.

You're exactly right. It's an ultimatum, as you call it, which is completely accurate. Buy this or nothing. Well, fine. I'll take nothing. Yeah, I'll get another estimate. Compromise choices.

You're exactly right. It's an ultimatum, as you call it, which is completely accurate. Buy this or nothing. Well, fine. I'll take nothing. Yeah, I'll get another estimate. Compromise choices.

It's the scarcity mentality that a lot of the owners have. You just mentioned it, financial transparency. And my company, talk to Krista and my speaking company, other people that work with us and HVAC companies, they know how to read an income statement. They know what cost of goods means. They know what gross profit means. They know what overhead means.

It's the scarcity mentality that a lot of the owners have. You just mentioned it, financial transparency. And my company, talk to Krista and my speaking company, other people that work with us and HVAC companies, they know how to read an income statement. They know what cost of goods means. They know what gross profit means. They know what overhead means.

They know each department gets allocated overhead. So if everything goes perfect in an HVAC company, The average. I mean, not the elite, not the brass ring guys, you know, 20% EBITDA. The average guy that's doing two or three gets to 10%, let's say, 12% EBITDA.

They know each department gets allocated overhead. So if everything goes perfect in an HVAC company, The average. I mean, not the elite, not the brass ring guys, you know, 20% EBITDA. The average guy that's doing two or three gets to 10%, let's say, 12% EBITDA.

And that means on every dollar of brain damage, every dollar of financial risk, every dollar of service install, every dollar of everything, when it's all said and done, the company, not even the owner, gets to keep a dime of it. And probably half of that's going to get reinvested into your new trucks. That doesn't seem like absurd profitability.

And that means on every dollar of brain damage, every dollar of financial risk, every dollar of service install, every dollar of everything, when it's all said and done, the company, not even the owner, gets to keep a dime of it. And probably half of that's going to get reinvested into your new trucks. That doesn't seem like absurd profitability.

And I think when people understand it, when they see the books, listen, if we go out and make a few hundred thousand dollars, I'm not ashamed of that either. I'll say, hey, guys, we made some money. They're going to know when we're doing well and when we're not doing well. And I think there's a scarcity mentality. A lot of our ownership, like you said, they don't want to share the information.

And I think when people understand it, when they see the books, listen, if we go out and make a few hundred thousand dollars, I'm not ashamed of that either. I'll say, hey, guys, we made some money. They're going to know when we're doing well and when we're not doing well. And I think there's a scarcity mentality. A lot of our ownership, like you said, they don't want to share the information.

Educate these dudes. Educate them about cost of goods and overhead and all these different things. And they're going to see, like, man, it's all you can do to make 10% of this business. Yeah.

Educate these dudes. Educate them about cost of goods and overhead and all these different things. And they're going to see, like, man, it's all you can do to make 10% of this business. Yeah.