Product-Market Fit in the Trades: 4x in 2.5 Years

The home services, which of course have been so popular for the last half decade or more.

Yep.

Which is it? And then like, yeah, just kind of talk, talk through the quality of revenue in a commercial H vac business as. As distinguished from residential H Vac, which is basically a lead gen game and converting those leads and just, you know, duking it out on Google AdWords sort of thing.

Yeah, the one thing that I found fascinating about our business so far, and mind you, like, there's gonna be other stages that I'm sure we get to, but we've spent $0 on sales and marketing and the company, as I bought it, had $0 in sales and marketing. That was really fascinating me. And it's primarily because a lot of it's a relationship game.

So for example, like in our business, we really focus on any kind of customer that has commercial refrigeration equipment and they also have H vac equipment. And most of the time that's restaurants. Right. And so our kind of target Persona is a restaurant group or a corporately owned restaurant where they have a facilities team, maybe that's one or a handful of people and they manage 20, 30, 40…

And so a lot of our business is coming from that. So, you know, some big accounts that we have that usually kind of roll up more or less into like one relationship with one team is like the Bob Evans of the world, which is a bigger chain up in this area of the country. Corporately owned Dunkin Donuts, large franchise groups that own Buffalo Wild Wings or Wingstops or seven Brews or things like…

That's kind of our target Persona. The way that revenue really works is you basically work with those sites and they all, for the most part, want to keep their equipment up to spec so that they don't have downtime, so that they have longevity of their equipment, they can reduce their expenses. And so they have preventative maintenance packages.

So those preventative maintenance packages might, you know, have us in the store two times a year or four times a year, but essentially you're taking care of all their equipment, making sure it's operating.

And if there's any additional service or install work that has to come from that, you're working then with that, that group of facilities folks and, and bringing that to their attention kind of more or less being a partner for them versus just being a contractor. And that's how the business is working. So you really set. You sell a preventative maintenance contract, and that's where your…

Those maintenance contracts could be set up where they're paying you monthly or they're paying you quarterly, or they're just paying you on the time of service, but you can count on that revenue. And then there's additional revenue that could be generated from the service work or the install work that comes from that. So it's, it's.

And those maintenance contracts, Pat, are they a material amount of revenue though?