Leadership Lounge with guest Brett Ringland

spk_1:   0:10
five is Jack Tester. Welcome to another episode of Leadership Lounge. I am in ST Paul. It's a beautiful late summer day. And across from me is somebody who's not for United States. I have got Brett Richland from Jmt Dale Plumbing in Australia. How you doing? Good. Thanks, Jack. Thanks for having me. What brings you the same? Paul?

spk_0:   0:30
Advanced sales and service record at two styles. Tex, attending an arm. There was an observer.

spk_1:   0:36
So you just get the three of you came here just for this class. That's right. Just give people some idea. Where you from? In Australia. How long it take you to get here?

spk_0:   0:44
So where from? Al Adela. New South wiles. Astray. Which is about three hours south of Sydney. Okay, we flew out of city on Saturday. 50 and 1/2 hour flight to Houston. We actually landed before we took off on Saturday. And then a three hour flight to to Minnesota. So we got to go hear about mid afternoon on the on Saturday.

spk_1:   1:04
Okay? Jet late and then are you going backward in this class ends on Friday.

spk_0:   1:08
We got back side and watch. We fly back. Okay, so you have a little time, then? Yeah. Just have a little look around on on Saturday during the day.

spk_1:   1:15
Yeah. What's interesting is ah, um, you know, you're starting to see a lot more Australians joined next star and come to these events. And and you're not the first Australians I've seen here, But I were talking at lunch and I started hearing some of your story about some of the smaller business, which you had a lot of success, and I and I think could be interesting for me at least to understand what it's like to do business in our trade down under. Sure enough. Yeah, that's good. What we'll do is we'll do that kind of threw through your eyes in the lens of your experience. Is that okay? That's for all right, man. So you started with this business? Not not that long ago, Right?

spk_0:   1:54
Two and 1/2 years? Yeah. Talk about 27 8

spk_1:   1:57
So the business. What kind of small when you got there, right? Relatively speaking. I'm not six employees. 6 16 seeks six. You're an employee number seven or

spk_0:   2:07
always employed on the sea. Okay,

spk_1:   2:08
it is. That is that's a small.

spk_0:   2:11
Yeah, way didn't even keep track without revenue back then. We didn't have a monthly revenue record or anything. We just flew by the seat of our pants. Really?

spk_1:   2:21
Yeah. What were you doing when you're there?

spk_0:   2:22
So I first came on board Is Ah, CSR decide. Invoicing. A little bit of accounts. Where? House seems

spk_1:   2:28
nice. Trades guy? No, not a wrench turn. Not

spk_0:   2:32
a qualified plumber. It'll

spk_1:   2:33
all right? Do you need a license over there to do plumbing? Certainly do. Okay. Yeah. I don't know. I know this stuff, but I don't.

spk_0:   2:39
Okay, they do. Three years it like a school. This is a theory school on. And then you employees saw in you off after you've passed the school so out of it. And with your field experience, how much field of screams you need with within the 33 years you've completed the school at the same time?

spk_1:   2:54
Okay. All right. So what did you do prior to arriving at a company that does plumbing

spk_0:   3:01
always at a plumbing supply store for just to go over 11 years? What'd you do there? I was the assistant manager of a man in charge of stock control.

spk_1:   3:09
Okay, so you saw a lot of plumbing companies come through that place, right?

spk_0:   3:12
Yeah. Where is based in L. A L A is about 44th plumbers in an area of a bet. 24,000 people's

spk_1:   3:19
something United States. A lot of competition is what you're saying, right? Yeah. Absolutely. What was a typical company like? Let's talk about I know you guys. There's probably new construction guys, But when we talk about the service replacement side of the business, describe it for me. The industry

spk_0:   3:35
out of those four year old plumbers in the area, one of them were just one man bands. That was maybe 45 businesses with more than one employee. And a lot of them did both new home construction and maintenance. Some guys just deconstruction. But Jamie and Tommy, the time giant id our plumbing though one of the only ones that just eat maintenance Just what we would call service here. Yes, right. That's correct.

spk_1:   3:58
And your business is focused on Is it residential

spk_0:   4:02
residential? About 20% commercial, which is property management. Uh huh. We live on the coast lot of beaches. So we do have a heavy holiday property presence in the area.

spk_1:   4:14
All right, so you're you're of the industry of these 40 companies. How many of them were This is say, we're doing up from pricing none. Zero. And, uh, did they have fully stocked trucks? You know, uniformed technicians, you know, foot covers when they walked in the home. It sounds like America a number of years ago, and I'm not saying we're better than Australia, but it's what it sounds like.

spk_0:   4:39
Yeah, absolutely. Definitely. Probably lost all thing for the area as well. If the surf was on all the Fisher body, no one else was really working

spk_1:   4:47
suit Luger. Plumbers to the surf

spk_0:   4:49
Luger plumbers You lose copping as you'd lose. Electrician's Tyler's everyone over actually. Absolutely

spk_1:   4:55
one of those people that went served on fishing

spk_0:   4:57
bones. I was a bit more of a country boy. Couldn't really say

spk_1:   5:00
Okay. All right, well, it sounds like maybe what some of our members might experience living on the coast here.

spk_0:   5:07
Yeah, outside. So,

spk_1:   5:08
yeah, you know, I get so so a lot of lifestyle people move there for the lifestyle you got, and then you get a couple jobs. Is the one truck guy and there's no service up was take a day off.

spk_0:   5:18
Yeah. Yeah, that's pretty much night. Walton Island head there, I think.

spk_1:   5:21
Right is end you. So let's just talk about seed. So when you came to the business, your employee number six, Um, why, what attracted you to this company? Why did you leave the supply business?

spk_0:   5:33
Settles there about 11 years, is looking a little bit stale where I was going to get offered a job into state. But I had a young family. I wasn't in position to move and

spk_1:   5:42
interstate means to move. Yeah.

spk_0:   5:44
Yeah. Kind of state sales. Got a job in Victoria. Okay. I wasn't willing to to relocate my young family that stage. Okay, Jamie approach me or no, Jamie for about nor in use

spk_1:   5:55
is the owner of the company right

spk_0:   5:57
out of the company. And it went from there.

spk_1:   5:59
Okay, So why'd you do it? He was getting stale on dhe. Why them? You would be a lot of jobs around their

spk_0:   6:06
jobs. Pretty readily available if you look for them. They had a good named already doing a lot right in customer service. Okay. One, A couple of local business awards. That was just a younger company. Okay? At the moment, as were four Dane employees and the oldest is 33. So it's a young, very young change

spk_1:   6:24
That's the oldest.

spk_0:   6:25
Yes. Really? Yeah, it is young. Yeah. So it was pretty paling to work for a team with everyone around a similar rage. It's reliable. It's really it's good atmosphere just to come to work every day.

spk_1:   6:36
Yeah. You wouldn't want an old guy like me. They're

spk_0:   6:38
way actually had one older guy as a technician at some stage, and he didn't last that long. Marriages because of a culture. You have a truce with what we're crowding in the company,

spk_1:   6:51
right? Feel? Think some old right now break. That's alright. So good for you. All right, so So what caused you guys to look across the ocean to an organization like next star? Let me tell you, we don't give you guys a price break or anything, right? No, I definitely don't know. There's not like a special Australian price that's different. You don't have access. You know, you're a completely different time frame. You know, it's a really haul to get here for a classes. We just Yeah. No, no. 19 hours difference. Yeah, that's brutal. So, what happened? Why'd you do it?

spk_0:   7:28
So at that stage, which was started, start of 29 we had five beans on the road and every go. I was roughly doing between 8 to 12 jobs a day. Okay, we'll just pumping through the jobs as quick as we can, hoping that revenue would improve. And we just realized we were just gonna burn everyone out if we just kept going down that road. So we actually sit down with current plumbing. Who are another next? I remember

spk_1:   7:52
one of our men have been one of the two members. We had no Australia at that time.

spk_0:   7:56
That's correct. Yeah. Yeah, they're about two hours north of us. Okay, so we went up to them a couple of times set, and we see it patent Carrie. And

spk_1:   8:03
how did you know of them?

spk_0:   8:06
Just Tom actually went through tape, I believe with seed. So they were in the same age. So you went to what if that's the study program of the apprentices. Okay. So they actually went to the Taif together. Same age. Gotta have kept in contact.

spk_1:   8:21
All right, So they met each other that way. So you want to talk to him? What happened?

spk_0:   8:26
They pronounced Betts said, Well, they've been doing for two or three years, and so we're in a position where we had to do something different. So we thought, Why not?

spk_1:   8:34
Why'd you feel? Because you're you're you're working hard, young guys hustling right and you felt like you were in gaining ground is that we were going on.

spk_0:   8:42
That's exactly what was going on wayward. Just money was coming in and money was gone, and we just did a production, even flat lawn for died. At least the ambulance proves that I would be in there because you guys are so young and experience. Yeah, absolutely, definitely would have played a part. We had no one had any experience in any one of running a business at all. Right? We met with a few business coaches, but it's hard localizer locally. We actually met with someone that did a little bit of work with big corporate companies in Sydney, but to set and she did hope it's a lot, But just to get that trade specific training that we knew we needed we had. We took the plunge.

spk_1:   9:19
Yeah. Decide to join the hard decision. Remember, sitting talking around about? It

spk_0:   9:23
wasn't a long discussion, Really. We knew we needed to do something. Something drastic. So actual. The margin on a material probably kept us afloat for at least 6 to 8 months.

spk_1:   9:34
Okay, Just what you're marking up material on you guys. That's right. Okay, Very cool. So tell us what's happened since you've joined.

spk_0:   9:44
That's what's been incredible. Incredible. 12 months, a massive 12 months. What's happened? So we had probably 982 no employees at that stage. 14 and full time and too casual. So we've had a massive staff growth. We actually bought the warehouse next to where we were located. Okay, so we may want to set warehouse, and we built officers in the training room in the second office just so we can implement the next our training without without team.

spk_1:   10:12
Okay, group, that's awesome. How is the translation, Ben, you know, because we people are watching next start training, you know, there's no mate and you don't know cultural Sheila John Conway's, but I'd understand, but I trust you.

spk_0:   10:30
But most other trainers were Okay. I think it's more Iran has trouble understanding off.

spk_1:   10:35
Does anybody say there when you introduce us to your staff? Well, this is not America. Our customers air different Australia's different brands, you know, this won't work here. Did you get any of that kind of pushback from my customers know from your employees first?

spk_0:   10:54
No. No. I was probably the most worried about that morning working out area. But because of the age of the tame, the it the adaption thio get onto everything that we need that we were doing when we started doing with next. I was really easy to get everyone on board

spk_1:   11:14
because they hadn't been embedded in other behaviors.

spk_0:   11:17
Correct. Way Got a lot of gossip. 23 another pretty seeks 23 under. Say, I don't really know any different, right? Yeah.

spk_1:   11:27
So that's in under the no pushback about. This is a U. S. Thing. And, you know, they just they just got on get it, um, and then from a customer side, what did you experience? But what changes? Let me ask you a question in a different way first. So if I'm a customer of J anti Dale Plumbing and I did business with you three years ago. Now I'm I call you back and do business with you this month. Yes. What's that? What's what I experience? It's different.

spk_0:   12:00
The massive, massive, different softly agenda card we sent in expectations early prices increased significantly have held on to a lot of customers. We did have three years ago as well. We haven't had a drop off of customers. We get more custom customer complaints about process. What we did died eight months ago.

spk_1:   12:20
Did the price change Absolutely screaming. He's grinning at me like and we had We had to do some things there because you did. You go up front pricing. We were

spk_0:   12:28
up front before that, but the local right was right round about $88 an hour. We sort of worked a little bit more than that. Plus my couple material. Yeah, we had a bit of a buying power because of the revenue. We were doing so well on material a little bit cheaper than

spk_1:   12:43
pushing hard by mature pretty good in a house. That was Yeah, that was inside my O that I had something I helped a little bit Yeah, I bet you did. Yeah, I bet you did. So So you you went to a complete upfront pricing schedule, and, you know, he's still the only one doing it in your town. Yes, that's it. Yes. How did How do your competitors treat you what they say about you guys?

spk_0:   13:06
Oh, we do get a little bit of work from some of the competitors. I said a lot of the new construction guys. They do recommend us for maintenance jobs because because they they know if they were for us to some of the wall answer the fire. Yeah. We've got the capacity to handle those those amount of calls and that those tops of jobs off the plumber's probably aren't too happy about it. They Do you hear anything? Nothing. Nothing really direct.

spk_1:   13:31
No reason I asked. This is his years ago. I remember when this industry went up front. Pricing back in, uh, you know, 1990 Right in there, maybe 89 when it was brand new. And it was a shock to a lot of companies. So So there we always had the early adopters, right, And I could remember there being some of the established companies in town that were time material. Um, we're we're not happy with it. They thought it was not a good way to do business. It was a It is amazing reflecting back on it. But it felt really very real at the time that there was people that were upset and said was unethical that you're selling customers and you're charging too much and you know you don't get any of that.

spk_0:   14:21
Not Not really. Oh, it's wonderful. Trades probably think way are expensive because we're a lot dearer than what they are, others unethical. I don't think it's unethical. It'll because before that you're going to someone's house, do a job and then email, and we'll post them an invoice in that job's being done 45 days early. I think that's a little bit more unethical than writing them across upfront,

spk_1:   14:43
right? Yeah, they're kind of That's right. That's that's cool. What? So what else has changed from a customer perspective in your company?

spk_0:   14:51
We've grown grown out the territory that we cover okay. With expand. We had about 40% of the market share in the local area, and out of that 40% about 75 to 80%. It was word of meth and existing customers. We've grown about 74 80 kilometers north, about 50 miles north.

spk_1:   15:11
Thanks for making the conversion for that earlier. And

spk_0:   15:17
that's obviously increased our population a lot more. The man of households that we can attend, revenue has took a massive jump last year. Well, what happened? Just under 34%.

spk_1:   15:30
There was your growth in one year. Yeah, well done, man.

spk_0:   15:33
We just I don't want saying two million because we didn't make it so Well, one point No, and four. Wait. We didn't make to you. Sort of like signing.

spk_1:   15:44
Okay, that's good. It's honest, man. Yeah, that's so as you let me ask about a question. Um, if you look back on that 35% growth and it sound like you're flat line for a while before that just kind of I don't see muddy. And along with your we were, you know, just kind of average and not growing. Not shrink and just do anything. What would you

spk_0:   16:08
attribute the growth too? Why? Just doing a lot of things better than we were before and then doing a lot of new things that we hadn't even considered before.

spk_1:   16:20
Give me three new wth me three things better. Three

spk_0:   16:23
things. New spending the time with the customer. You know it's going to two or three jobs a day, not 8 to 12. Radio today there was a massive difference. A za new member. Business coaches hate bets, and we couldn't get enough from him to start with or just always trying to ream email. And he's probably sick of us off the first couple of months, which is one and Mork Mork Mork, because we knew we had a change. Well, very came to implement everything as soon as we could. And to be completely honest at cross went too hard, too quick, the price went up, but as service hadn't really changed it because we hadn't done the training with all the texts. So I had to Ryan that right, that back in for a little wall? Tom, One of the hunters myself attended Ladyship Monastary in April last year in town. Yeah, yeah, with Kate. And that was that was it was a massive Aha! Three nights. Was it Absolutely, absolutely. So we got back. We included a lot Maur. And once we have the text trained through service season, we did affording wait course twice a week for 14 weeks, just in house.

spk_1:   17:24
You did what? For? 14 weeks service system in house. You trained it yourself, using our content? Yes. Well, man,

spk_0:   17:31
we might attract training, calendar up and implemented through about 14 weeks, twice a week. And then we were able to justified that. The process we were and what we are worth. Yeah, before we before we did ever trying there were so he'd be a little bit hit and miss where I would execute.

spk_1:   17:50
So that was that was something that major growth go

spk_0:   17:53
yet? Absolutely. And then as we went again, another three months will be Came out to Australia. Lost. You

spk_1:   17:59
had one of our trainers come over there for official class?

spk_0:   18:02
Yeah. First time. Current organ current plummy. I organize that. I think four strain members attended. Okay. Yeah. We thought it was maybe 20.

spk_1:   18:11
How'd that go? Over? We brought. We brought next door to you.

spk_0:   18:14
Yeah, that was really cool. Bobby was awesome with Bobby Hamilton. Yeah, he actually came down to our area for a couple of nights. Got him a motel right on the beach. He was I could kind of give him enough price for his time. He's over with his wife, Sam, and minutes out for dinner. I had a few drinks, and he could have done any more help during during that time he was in Australia. Don't. That's so cool. S so then after that, we were then went to a sales install structure. So for the four months before that, using the next our next our methods are being tracking individual texts and their sales conversion rates, dollar values. And we just found our best to. And after that, suicides courts out of the best to attended that we went to two sales teams and three in store teams.

spk_1:   19:02
Okay, that help? Yeah, that that then helped again. Okay, Yeah. Another bounce.

spk_0:   19:08
Yeah. Yeah. We were losing opportunity, sending. So it takes a certain Georgia. So we just We just just refined that. We're making sure we're getting the most opportunity of every job. Came in.

spk_1:   19:20
Very cool. Very cool. What else and everything starting. That is cool. And then So what? Why did you decide to come for this? Why come back for more advanced training now

spk_0:   19:33
because Adam and deigned to sales tax because it's they're responsible for essentially the company's revenue. We definitely feel we need to put the training and the investment into them into them to get better. And so frost, the advanced Silent, said This course was, we thought was the next step in the next part of their growth as well.

spk_1:   19:51
So the u three came here? Absolutely. They're very cool. Very cool. Well, what's next? What do you excited about in 2020 for

spk_0:   19:59
you guys? Further growth for the growth. We have few revenue targets. He mourned the area that we're expanding too. For the north side of revenue target in that area as well. Hopefully possibly a new shop front in that in that error as well. If we hit at revenue targets.

spk_1:   20:18
Okay. So kind growing your footprint little bit? Absolutely. Do you find now that our is anyone starting a copy? You guys yet? We know. Thanks. Yeah, thanks. Crazy. Really? No one's no one's saying that. What? What's going on at Jayanti? Dale and I was suddenly I mean, you don't see that?

spk_0:   20:35
No, no, not at all. the drive between the where we're located on the dollar and the suburb further north of said about 50 miles and there's no suburbs in betweens. Press straight drive along the highway. We talked to a lot of people who reckon they can't drive between the dollar and narrow, which is the town. Further north. We have seen one of their friends on the road, so that's that's been pretty cool. I've lost 12 months.

spk_1:   20:58
So that again, the heavy accent there's one more time

spk_0:   21:01
say so. The two towns away, bisphenol a dollar in the town for the Northeast, coordinate error, huh? To random people or new customers will kill us. They just passed Alvin between there and Al Adela so many times over the lost six months. That's where you're going to Yeah, yeah, that's that's being that's being pretty cool to say that

spk_1:   21:20
that's that's that's exciting alongside of you guys.

spk_0:   21:23
It's really, really, really for the next two years. Yeah, yeah,

spk_1:   21:27
well, you know, it's it Sounds like, you know, I I know there's a lot of American companies listening to this right now. That's it all, man, I'd like to be in a market where I was the only one doing some of this stuff, right? This would be so fun, you know? And I know it's It's it's It's not easy to be the pioneer, you know, but it sounds like you guys are doing a good job that you're not taking the arrows that a lot of pioneers take.

spk_0:   21:50
And I know we've been lucky. We'd actually probably lock a few more companies in the area to do to be doing something similar.

spk_1:   21:58
Okay, that'll happen as you guys become successful is your suppliers. You know, the person that used to be in your job starts talking about what you guys were doing, and they start hearing about it as a couple of your employees leave, maybe by force, and go to someone else will start talking about you. What were you doing over there?

spk_0:   22:18
Yeah, we've been lucky. Our employees, you caught, we don't really go on calling them employees. We call over on a team member, so that's pretty cool. Yeah, just so it's just there's no really ranking system without company. We try. Keep there are several. It's on par with everyone else, right? So the team member mentality we find a lot more productive. But with your two team members and lost yet go on off. You

spk_1:   22:43
really yet? That's also you guys must run a good take chip there. Well done. Okay, so we've

spk_0:   22:48
got a culture that said the age of the age of the team. Yeah. We like to think way. Look after them as well out of work. So I think that helps a lot of them stay. And we want them to have Caries, a giant it all plumbing.

spk_1:   23:00
Do you have your competitors? Guy's not gonna adore yet.

spk_0:   23:03
We've had a couple, but nothing

spk_1:   23:06
of in big

spk_0:   23:07
No, not an influx or a queue at the door. Anything. All that

spk_1:   23:11
another. Okay, These things happen, though. I'm predicting it. You know, word gets out. You know, things were gonna be a little different.

spk_0:   23:20
Yes. With with the growth will probably need a few more techs in the next 6 to 12

spk_1:   23:24
months. Sure, sure. What's fascinating story, Brandt. Well done. I was just and again I was sitting talking at luncheon. You know, it's always interesting to have somebody from Australia here, and I enjoy the accent and we're talking about the business and I just thought, you know, it might be interesting for our listeners Just understand what life is like down under in the same industry that we're in right now.

spk_0:   23:43
Very outside. Be very similar in the plumbing. Yeah, I'm industry. Just the area and competition you've got. But rights at the joining next. I was definitely something we needed to do something, and they probably got us. Ever did get us out of massive ha little training towards.

spk_1:   24:00
Well, maybe if we keep growing, remember, Count there. We could put a next door in Australia. Yeah, maybe it's super. Maybe that'd be pretty cool for mating in Sydney. Casino there is here. Okay, well, I don't know if I remembers up for a 14 hour flight, but you never know. We come out, he's That's right. It's only fair. It's only fair. Well, I sure appreciate your time, Brett. Thank you. You stepped out of this class for observing and, uh, appreciate your time and sharing us and all the best man. Congratulations. Thank you very much for the owners over there, man. Well done. It sounds like you guys got it going on. And, uh, I got a great young guy here who's engaged in what's going on. And, uh, I predict great things. They already have good things. Thank you. Thank you. All right. And thank you all for listening. Very interesting episode. Leadership lounges, Jack test or down Under with Brett Ringling. We'll talk to you soon. Thanks so much.