Alex Hormozi's Playbook for a $10M Service Business, Worked on a Roofer

Key points

1. 1

   Take the work other operators won't

   Hormozi puts gross profit on a replacement at about $7K and on a repair at about $1,100. He asks whether Caleb could sell three times as many repairs as replacements if repair profit reached $2,000. Caleb says yes. Repairs give volume and steady revenue in work the rest of the market ignores, with the ticket pushed toward $2K to $4K.

   “when there's something that's been cast aside by other people, right? Like no one wants to do this particular thing”

2. 2

   Two sales videos, one per sale

   He prescribes two sales videos. The first plays before the first sale. It runs intro, promise, proof from named neighbours with similar houses, the plan, old way against new way, then each objection answered with proof. The second plays before the follow-up call and sells the other work the house needs. Each objection block breaks one belief, so the rep walks back into a warm room.

   “So each one of those is basically that's just a belief breaking mechanism over and over again”

3. 3

   Close with a menu

   The script for the follow-up call has four steps. Unsell what the customer does not need, so they trust you. Prescribe what they do need. Offer a choice between A and B. Then charge the card on file. Hormozi calls this menu close his favourite chapter of his Money Models book. He says it fits any sale you can close in one conversation.

   “Step one is that Amanda's going to unsell what they don't need”

4. 4

   Pay reps per door knocked

   Hormozi tells Caleb to go all in on door to door, because it already works for him. He turns the 10% repair commission into a wage per door. A $4K repair pays the rep $400, and at one sale per 50 doors, every knock is worth about $10. The rep's target becomes a door count.

   “So, it's like how much money do you want to make? Just knock that many doors”

5. 5

   Sell a membership that buys repairs

   After the job, offer a VIP plan at $15 to $20 a month, paid yearly, with $2 of repair credit for every $1 paid and a yearly inspection. List it at $500 a year and drop it to $200 for a review. Hormozi says the money barely matters. The point is a booked visit where you sell more work. Ninety days later, Caleb admits homeowners are not signing up yet.

   “we put uh $2 for every $1 that you put on this into future repairs”

6. 6

   Charge to jump the queue

   When every job takes the same crew, let the customer who pays more go first. Hormozi scripts a 20% priority fee that guarantees the job by the end of the week or waives the fee. Caleb later sold a next-day slot to a commercial client for an extra $300, and that client bought the next job too.

   “So yeah, and I mean speed's all margin and in this business margin matters a lot”