Every once in a while, I encounter someone who transforms my perspective on what is possible in business.
Tommy Mello is one of those people.
After reading his book, Elevate, and interviewing him, I find myself waking up early in the morning eager to implement new ideas for my business.
If you don’t know Tommy, he is the founder and CEO of A1 Garage Doors, a 200-million-dollar company based in Phoenix, Arizona. A1 Garage Doors is now in 22 states and growing at an insane pace.
If you can read Tommy’s books and meet him, you can see why he has succeeded. He works hard, cares for his employees, and constantly seeks knowledge. He consistently maintains a bigger vision for his company and thinks differently than most business owners in the home service industry.
It was a pleasure and an honor having him on the podcast. Give this episode a listen, and I guarantee you’ll find something you can apply to grow your business.
Here’s what we discuss in this episode…
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How he went from painting garage doors to building a 200+ million dollar garage door company.
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The value of asking for help and how to get other contractors to help you.
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How to increase your booking rate (turn more calls into jobs).
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How A1 Garage Doors closes 62% of jobs they quote.
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Insights into his company’s structure and each employee’s roles in the sales process.
- Why you should offer financing to your customers and how to do it.
- The tools Tommy uses to run his business.
- Recommended books and much more.
HS045 – Full Interview with Tommy Mellow: How to sell your services, book more jobs, motivate employees, get help from other contractors, and grow a $200 million home service business.
About Tommy Mello
Tommy is the founder and CEO of A1 Garage Doors, the largest privately owned garage door company in the nation that does over $200 million in revenue and operates in 22 states.
Tommy has been in the home service industry for 17 years. He’s also the host of The Home Service Expert Podcast and the author of two Amazon Best Sellers, Elevate and The Home Service Millionaire.
Tommy is a genius at building systems, scaling businesses, motivating employees, and creating a culture that attracts top talent. When it comes to growing a home service business, few can rival his expertise.
Books, Links, and Resources Mentioned In the Interview
Notes and Key Takeaways
- Tommy mentions that he is quick to ask for help and seek people smarter than him, which is a big part of his success.
- How to create a vision – Whiteboard sessions. Figure out what you need to do to get to your goal. Everybody’s vision should be within five years, and part of the goal should be to sell part of your business. If you don’t sell, your hair will turn gray, and your relationships will suffer.
- A good CFO can do wonders for your business.
- 30% of all jobs financed. When a customer finances a project, they are more likely to choose a more expensive option.
- “When you only give one option, you give an ultimatum.” Give at least three options to customers. Six is ideal.
- 60% of revenue from service, 40% from installation.
- Technicians T up the sale of a new garage door, and product specialists close the deal on the phone.
- After the product specialist explains the options, they say – “do you want to use your money, or do you want to use our money?” Then, present financing options.
- Closes 62% of jobs they quote.
- He charges a $39 trip charge (which he’ll waive in some situations).
- Doesn’t teach his guys much sales. Smile, Listen more, be a good human being. Ask them about their life and work.
- Doesn’t sell everything at once because it creates sticker shock. First, he’ll get the door working. He’ll fix whatever they need. Then, he’ll try to sell the keypad, bottom rubber, surge protector, etc.
- The average home service company is booking 43% of the calls; they are at 87%. To increase it, pay your CSR based on the booking rate (performance pay), have an online chat on your website, and respond instantly to Angi and Home Advisor leads. Pay a CSR to take calls at night. Script: “Look, Mr. Jones. we really want to earn your work today because we know you will tell your friends and family all about us. What is going to take to earn your business?”
- A1 Garage Doors has its own signature springs called “Max-Life Springs.” Tommy believes all service companies should be developing their IP.
- He plans to go public and then buy everything. “Roll up the other garage door companies.”
- KPI for service techs
- Lifetime Revenue
- Conversion rate
- Gross Close – Service to sales
- Average Review (most guys sit at 4.7)
- Recall Rate (below 2%)
- How much did you use for financing?
I’ve only captured some of the valuable information Tommy shared with me. I recommend listening to the full episode and investing in his books.
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