Wrap Shop Talk
This podcast is a place for Vehicle Wrap Shop Owners to increase their knowledge of the BUSINESS side of the industry.
Wrap Shop Talk
Youre Doing Everything So Why Isnt Your Vehicle Wrap Shop Growing
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It's RDQ2 in 2026, and let's be honest for a second. We started off this year saying that this was gonna be our year. We're gonna work on our business, we're gonna escape the chaos, we're gonna finally turn this into a business and not a job. And it got busy. And all of a sudden, all that chaos becomes accepted. And we are super busy doing the menial work every single day rather than doing the things that need to move the needle in the business to push us forward towards our goals. And if that's you, stick around because in this video, we're gonna be going over exactly what's going to be required of you to hit your goals by the end of the year. And we're gonna break it down in a systematic mathematical approach so that we can identify exactly what we need to do to get there. Now, why should you stick around and take advice from me? My name is Brent Knott. I own design at Wraps in Jacksonville, Florida, and after 14 years in business, I finally, in the last three years, have made more progress in my business than all 14 years combined. And the reason for that was I finally unlocked what working on the business really meant. And I want to help you remove that, and I want to help you do it in a much faster time than myself. In fact, I want to have this first time I'm stating this, I want to help 100 wrap shop owners cross the seven-figure mark. That is my goal, and so that is why you should stick around, is because that is my mission, and I'm not going to stop until I do it. Now, what is the problem in your business right now? You're busy. That's the real problem, is it the year spins off, we come out of the end of the year, finally, people in the service industry just starts getting warm, whatever it may be, and then all of a sudden we get really, really busy in our businesses. And we very quickly forget all of the goals and all of the things that we had set out to do this year, and we start to feel like there's not any time. In fact, I was just onboarding a guy uh on a Torx CRM the other day. He's about a$700,000 shop, and and he's looking to grow and go to the next step, and he he doesn't have a lot of uh systems and processes in place. He was struggling to find the time to do the tiny bit of homework that I had signed to him to get to that next step uh through the onboarding process. And he says, you know, I'm just really, really busy right now. And so I took a moment and I kind of prefaced it to it so he didn't under so he understood the point that I was trying to make. And it was that I just said, Hey, my shop's about three times larger than yours currently. And am I not busy? And he said, Yeah, you're probably really busy. I was like, I'm super busy, but I'm still getting the things that need to be done to drive the needle forward. So, based on our chats, your goal is X, right? And he said, Yes. And I was like, So then are your actions of what you're doing today reflecting like going in the direction of the goal that you want? And he goes, You're right. So sometimes we have to slow down. Now I didn't say that to be egotistical, I just said it to have proof, right? And that's the only thing I could leave right at the time whenever I was I was talking to him, because he was kind of in a panic. But slowing down to sharpen the axe, if you will, to chop down the tree or to do the task that we need to do is very effective and often overlooked. So if you're running around answering all the text messages, you know, ordering your materials, doing every single little thing in your shop, and you have anybody on your team, if you're alone, understandable, you got to get to the first hire. But if you have one to three people on your team, what is it that you hired them to do? And you're not allowing them to take that responsibility off of your plate. You know, running a business is a lot like going to a buffet, except you only have one plate, and that's your time. And you can stack food on that plate, but eventually, like you can't really fit any more on the plate. Things are just gonna start falling off, and that's you missing follow-ups, missing sending out estimates, missing billing people, missing ordering materials, etc. So, what are you going to take off your plate in order to give yourself time to put the cheesecake of working on your business so that you can actually, you know, taste that really good cheesecake. A lot of us spend about 80% of our day just being super busy because it feels, you know, like we completed something. But 20% of our day is actually working. In fact, I would challenge you if you have never done this, and I would rather run a 250-mile ultra again than to do another time study, but do a time study. Uh, the first time I ever heard this was from John Duver and then my other coach Thomas Keenan. But basically, you start a spreadsheet, and every 15 minutes you write on that spreadsheet exactly what occurred. Whether it was you wasted time, you had a conversation with staff, you were on the phone with uh a spouse, whatever it may be that you were occurring, even if it was work or not work, doesn't matter, whatever you got accomplished in the last 15 minutes goes onto the spreadsheet. You plug that in for two weeks straight on any moment that you're working. And what you'll realize is actually you have a lot of time. There's there's like spurts that you work, and then the rest of it in many cases is distraction. Uh, I'm guilty of this myself, even to this day, and I find myself to be pretty disciplined, but I still get distracted. Uh, it's very easy to get distracted nowadays. So do a time study and identify what of those tasks or gaps or things are causing your distractions and remove it off your plate. If there are certain administrative duties that you're doing and you have an admin on your staff, then like get it off your plate, give it and assign it to that person and ask them, can I rely on you to see these responsibilities all the way through and not just report on it? Meaning that they're not going to come to you and ask you every single question possible, that they're actually going to use the brain that they were born with, and they're probably very intelligent as well. Give them permission to use their brain. Some of us, as business owners, we micromanage people, we actually compress their ability to think for themselves and we make the decisions for them, and then they just come to you for the questions, and then you validate their questions, etc., so on and so forth. But get things off of your plate and start to give yourself at least 30 minutes a day that you can actually work on the things that you need to work on. Minimum, 30 minutes a day. Pick a number, whatever number that you're gonna try to end the year with in your sales goal, you gotta pick one, whether it be a million dollars, 750k, 500,000, 250,000, 100,000, if you're just getting going, whatever it may be. And then I want you to take that and I want you to break it down. Now, for example, if you're$250,000 and for you to see a$500,000 target, it's daunting. I don't care who you are, if you're any double$250k to$500k is very daunting when you're just looking at it from the end result, right? But when I do ultra runs, like I'm doing one this Friday, I don't look at the event in 100 miles. Oh my god, that's that's that's a lot. Instead, what I look at it as what do I need to do just to get to the next aid station? What do I need to do just to get to the next checkpoint so that I can recover, make decisions, and then get back out and do it again. And I do that over and over and over and over and over until I arrive at the end destination. I never actually focus on the end goal or the end target. So the 500k is not what I'm looking at. I'm gonna be looking at what do I need to do right now to get there. So let's break that down in uh so let's break that down. So if you were to do$500,000 a year, forecast$500,000 a year, and you divided it by 12 months, that's$42,000 that you need to bring in. Now, what's your close rate when you get when you finally get a customer and you actually procure them an estimate? What is the close rate in which you receive a deposit? Uh, for simple math, I'm gonna use 50% uh close rate. But if you think that you're at 30%, 20%, then replace the number with whatever that would be, and you can redo your math. So here's where it gets fun. We can now start to turn our goal into be broken down either in per units of vehicles wrapped or into quotes. In this case, I'm just gonna say how many quotes do we need to have? So uh what is your average job size first? I'm gonna just put uh you know, wrap jobs vary anywhere between$2,500 to$5,000. So we're gonna use$3,500 for this example. And out of every 10 quotes that you send out, you're closing five. Then you need to take your monthly target of$42,000, divide that by your average job size of$3,500, and then that would be 12 jobs a month. Now, if you need 12 jobs a month, then you need to send out 24 estimates, right? So if we take our 24 estimates and then break it down by four weeks of the month, we only need six quotes a week consecutively, every week over week over week, based on this math, to hit our five hundred thousand dollar goal. Now, of course, there's a reason that you're not already at$500,000. This is what's going to identify what is the constraint. If you're sending out uh 20 quotes a week and you're still not hitting your revenue goal, then your close rate's not really 50%. You need to modify your sales process and identify: am I getting leads out of the dumpster? Am I really bad at sales? What is the constraint in that case? Now let's flip it on the other extreme where you're like, Brent, I can't even quote six quotes a week right now. I don't have enough people that know that I exist. Fantastic. That's your constraint. You need to go find leads. And we've done multiple videos on this, but let's let's recap again. If you don't have leads, then the very first thing that you should do every single day, period, is go sit at the gas station. 7 a.m. to 9 a.m. Every one of your customers there are out at the gas station getting their big gulps before they go do their work for today. So, and what's really funny is you literally it's like the highest levered activity that you could ever do because you can actually survey the vehicle and have the photos on file of exactly what the vehicle looks like before it even uh is sold, and you're prepared, like you are ready whenever that customer converts. So uh you know exactly what their wrap looks like, exactly the layout. If you happen to be able to recreate it, then fantastic. You just need to color match it. You are a rock star in the eyes of your customer. Now we've broken down your organic deal flow, but there's a couple other ways that we can also acquire more revenue in our business. So let's say we're doing marketing, for example, and I'm gonna pull up some real client numbers here. We had a customer who uh so we had a customer who that we've been working with for the last three months, their ad spend was five thousand dollars, so it's four thousand eight hundred and sixty-six dollars. They generated ninety-six thousand four hundred and fifty-five dollars from that ad spend. Now, they obviously had some pretty good luck. They also, more importantly, have massive systems in place. They have an appointment setter, and then they have three sales reps ready to go at all times that are doing outreach and follow-ups and closing deals. Now, out of that five thousand dollars in ad spend, they received 51 leads. And out of those 51 leads, they closed 14 jobs. So these figures are all based on our$500,000 goal, but uh the average job size or average job ticket in this case, because he does wraps plus upfitting, is six thousand eight hundred eighty-nine dollars per job. His close rate was twenty seven. Okay, so one in four of the deals that came into his ecosystem, he closed from the ad spend. And the effective cost per lead was approximately$95 per lead. So if we were to reverse engineer it, then how many jobs does he need to hit$500,000? He needs 73 projects based on this math. And how many leads do you need at a 27% close ratio? He would need 270 leads. Therefore, he would need, in order to go from$0, and this is extreme case, but if he needed to go from$0 to adding$500,000 revenue in his business, he would need to spend$25,000 in ad spend plus all of the administrative costs of making and selling those deals. And so on the screen here, I'm going to put a uh a sample table of a couple other metrics because uh you can blend these methodologies, but if we wanted to add an extra$100,000 of revenue in this particular business by the end of the year, then we would need to generate an additional 54 leads and/or spend an additional$5,100. So every$100,000 revenue that we add to this business, we're going to need to spend$5,000 of ad spend approximately based on this three months math. Now, another way that you can go in and begin to uh generate additional revenue is just flat out cold calling. Now, if we were going to add$250,000 in revenue to our business and our average job size was$3,500, and let's just say because this is cold outreach, we're not paying anything to receive these leads. Therefore, we need to be right place, right time, and we need to be planting seeds to nurture, water, and grow them until they become jobs. Okay? So our close rate with that in mind is most likely going to be about 3%. So in order to add$250,000, so in order to add$250,000 in revenue to our business, we're gonna need 72 jobs. Now, how many calls do I need to make to get 72 jobs at a 3% close ratio? That's 2,400 calls. Now that sounds really scary, but here again, if we break it down per month, we need to make 200 phone calls per month. We need to make 50 calls per week of outreach. The issue with many of us is our customers that we want to serve, and that you probably are the right answer for in regards to solving their problem, they don't know you exist, and you've done a really poor job at letting them know that you exist. So, whether it be through marketing, organic, word of mouth, or cold calls, this is exactly what you can do to grow and scale your wrap shop and how you can approach it mathematically. Now, I want to get into the reason why this video is so fun. Um, this is how my brain works nowadays, and it it took a long time for all this to register, but it's embarrassingly simple. Uh, let's do the final way that we can add$250,000 in revenue in our business. And everybody says, I don't advertise, I just do word of mouth. But you don't even have a post-sale referral process. You just allow the customer to give you a reactive word of mouth rather than farming the word of mouth yourself. There is absolutely zero reason. You you get what you ask for. Okay, so if we ask our customers for the referral, we can actually expedite word of mouth. So again, your average job size is$3,500. Your referral rate is one referral per four customers that you do. Okay, that means that somebody has somebody with something in need at that moment. And then conservatively, if your referral close rate was 50%, similar to the beginning of this uh video, these are warm leads, they already trust you, their friend referred them to you, etc. Then if we wanted to add an additional$250,000 in revenue to our business, what do we need? We need 72 jobs, right? Which means we need 144 referrals. This can happen very quickly, regardless of your revenue target, because it could be sticker projects, it could be signage projects, it could be all kinds of different little things that you can then ask for a referral towards your main service to try to get more uh revenue. Now, the best part about all of this is each one of these were broken down individually. Imagine if you just did like you executed on all three. If you were to run some ad spend to where you were able to um you know start farming leads that you don't have already, you did the work for them, okay. Let you regardless of what they cost you, let's say they cost you$250 per lead or or$400 per transaction of closed sale. Some people are like, man, that's a lot of money. Yes, it is. But if you ask them for referral on the back end, then now you actually water down your$400 in ad spend and it becomes$200 if you just get one referral. And then don't forget the lifetime value of the customer as well, where down the road that customer comes back and uses you again, and you paid$200 for that lead after you got the referral, and then they bought again. Now that that lead is worth$100. And then what if they buy again? Now that lead is$50. So you water down your ad spin and your marketing efforts by getting uh higher lifetime values out of your customer, getting them to repeat buy, um, setting up nurture campaigns so that they remember you when they do need to buy again, so that when they buy the next vehicle wrap, it comes straight to you. And then you can also, if you don't have money andor if you only have a little bit of money, you can do cold outreach. There's absolutely zero reason that you shouldn't be doing cold outreach if you can't afford to do marketing. And you should aim to do cold outreach for as long as you can until you can get to marketing, and then you do marketing until you can get to a salesperson, and then that salesperson has all their bandwidth is toward sales, and they blend cold outreach plus leads that you generate for them. So you need to plug in your numbers to understand how this math works for you. Now I'm happy to uh give you a revenue forecasting calculator. Click the link below, and uh you can download it and you know work on figuring out what you need to do in your business to hit your revenue target. Here's the biggest shift or the change that like when it finally unlocked in my mind, it it's where I've seen the biggest growth from not only myself but also from my business and the opportunity of the people that are within it. And that's gamifying working on your business. You should set some form of reward system up. Many of us, when we first start working on our businesses, we don't have the identity of the business owner. No matter how much we think we do, we usually end up devolving back into installer or designer or whatever, because that's what we've done habitually. So uh I remember seeing in my memories the other day, it was a really funny picture because my reward system is a lot different now. But I had a memory on Facebook where it said, I spent 30 days not holding a squeegee, and so this is my reward to me. And it was me allowing myself to wrap two trucks. So before that, I would only work with a squeegee once I received or once I completed my duties of working on the business. Uh, and what did that look like at the time? So I would do something like make my 30 contacts for the day for my sales and then do my follow-ups. Once I did those outreaches for the first hour to two hours in my office, then I was allowed to go do the fulfillment and the fun things, the things that I really enjoyed. In fact, I actually really love installing. A lot of people get that wrong about me. I really liked installing, but I like creating opportunity as a business owner more. So uh I just did not realize that at the time, and so my brain would always be like, Hey, you really need to get in the back, you really need to go do this install. And while that was true, I also really needed to be growing my business. So I challenge you if you've fallen behind on Q1, let's get after it. You still got three more months. In fact, you got two of the best months ahead of you, and then December can be amazing too if you actually prime it on Q3, but you're gonna need time to prime Q4 and Q3. So start working on your business now so that you can like go ahead and build out some of these systems to actually get this going and start getting better at asking yourself better questions. Questions. What is my constraint today? Why do I feel like this? If your business feels like chaos, then why? Truly, like stop for just a minute and ask yourself why. So uh keep on, keeping on. I'm super proud of everybody that uh sticks around for these videos. I love making them and I'm excited to keep delivering value. Uh, if I've impacted you in any way, or if you happen to cross the seven-figure mark and you feel that I've impacted you, please let me know. I'm literally going to start a board in which I am going to document and track my progress from zero to a hundred shops to seven figures. Um, reach out to me if you need anything. I am here to serve. I will hop on a call with you. Let's make this industry great. It's already the amazing, but I feel strongly that there is massive opportunities coming in the near future for this industry. So let's make it beautiful. We'll see you on the next one. Peace.