One Year, 3x Revenue, and a Clear Path to $15M

Say again about the fact that the bigger you get, the bigger the margins are. Is that because there's less competition for bigger jobs and so you can command bigger margins? Because that's counterintuitive.

Usually the bigger the company margins compress as you get bigger is generally what you see.

Right, but they're also dangling a $10 million job so they can push you down on price because it's such a big piece of work. You'd be willing to... come down on your own.

For example, I can't, I can't compete on it. I can't be at a $10 million job. So there's a moat. If you're a certain size, if you don't have the manpower, for example, I, I have a buddy in the data center industry and he told me, Hey, I got this job.

It's replacing a bunch of ATS switches, the transfer between generator and, and, and line voltage and utility voltage. It's, it's a, it's something small maintenance, basically a maintenance job. If you can do it, it's yours.

But the data center construction is very smart, and they know how many guys you need when you need them. They would buy the equipment, but they're like, oh, you'll need 26 guys working from 9 p.m. to 9 a.m. for six weeks. I don't have 26 guys.

I can't take that job. I'm limited at my size. And there's a gap in the middle market for electrical contractors.

So there's very large ones. And there's a lot around my size, a little bigger, but there's not much, there's less competition.

So for certain size jobs, you actually have pricing power, which is not something we associated with construction.

There's a lot of pricing power the larger you are because less companies can do that size job. You need hundreds of people. You need a full staff of engineers to work through the details.

You need a handful of project managers, you need such a large workforce to do a large project like a data center. People can't, you know, very few competitors. Yeah. What is bonding and how does it work?