The Disney Effect: Successful Contractor Thrives with Lessons Learned from a Mouse (Ep #1)

00:08

Tom: Hi, I'm Tom Kraeutler, and welcome to the very first episode of the Profiles Podcast presented by LL Flooring. If you're a pro-remodeler or a contractor or a builder, this podcast is about you. It's about helping you manage your projects, your crew, your customers, and maybe even managing your stress in the process.

00:28

On the show, we seek out experienced successful pros and we find out what makes them tick. So, we're looking for tips and ideas to share that will make you more successful in your business. It's all about pros, teaching pros and sharing strategies and solutions that save time, increase profit, and improve customer satisfaction. If you've got some ideas for the show, we'd love to hear from you. Maybe you want to suggest a guest or a tip that you think might be useful. Please reach out by emailing us at profiles@llflooring.com.

00:57

And you can also follow our episodes on the LL Flooring Pro portal at llflooring.com/pro. Now let's get to work. My guest today says he aspires to deliver the Disney effect to each and every customer through a design build approach that provides an experience of a lifetime.

01:27

Ryan Otte of ROC Home Pros. Welcome to the program.

01:30

Ryan: Awesome. Thank you very much. Appreciate it.

Delivering a Once in a Lifetime Experience: Meet Ryan Otte

01:32

Tom: So, Ryan, what is the Disney effect?

01:35

Ryan: So, the Disney effect is, you know, if you think about construction, any construction project that somebody might be taking on, you know, sometimes it's a once in a lifetime opportunity kind of like going to taking your family to Disney. So, you know, you go to Disney, you expect everything to be perfect. You expect Mickey Mouse down the years on and look perfect. You expect the rides to be perfect, you expect it to be clean. You expect everything to be kind of a once in a lifetime experience because a lot of people can't afford to do these things more than once in a lifetime. So, we want to make sure, you know, when we go on to into a job like this, we want to make sure customer satisfaction has been met 100 percent by the time we leave that job, and everything is absolutely perfect.

02:15

Tom: Is that what you would consider one of the secrets to success, making sure that you don't leave any job with a customer? That is in doubt? Exactly right.

02:25

Ryan: You know, we want to walk our clients, our customers through every ounce of this job site, down to the smallest detail and make sure their expectations have been met. Whether it's through our, you know, our experience, our craftsmanship, and integrity to get the job done.

Communication Key to Customer Satisfaction

02:43

Tom: You know, one thing that I think is consistent across the construction industry is if there if there ever is a dispute or misunderstanding between a customer and a contractor, it almost always is based in communication and a lack of communication. Do you make every effort to kind of stay in communication with these customers every step of the way, maybe even communicating more than they think they need to know?

03:04

Ryan: Yeah, exactly right. We try to lay out a timeline and, you know, with some of the challenges today with COVID and materials and stuff, you know, that timeline is always changing. If something's back, ordered or waiting on something, or you normally lose an employee due to illness or, you know, something else has happened along the line. So yeah, we are constantly trying to update our clients and you know, you're always going to get the one that you're not going to please. But boy, we go above and beyond and try to make sure that we do everything we can, whether it's a text message, an email, a phone call, you know, whatever they prefer, we try our best to make sure that that they are in the know and know what is going on with their project.

Trade Education Helped Build a Future

03:44

Tom: So, you've been doing this for many years. I took a look at your background. It sounds like you started as a serious DIYer and then went from hobby to pro. Is that right?

03:54

Ryan: Yeah, exactly right. You know, I started this back. We built houses in high school, and we had a homebuilding class. I took that prior to going on working for local builders. But yeah, it was a hobby of mine originally. And now I've been, you know, in the business full time for the past seven years. I've been in the business my whole life, but the last seven years doing it professionally and a pro.

04:18

Tom: Now you got your start, as you mentioned through trade, education and today, trade education is even more important than ever before. We're all seeing the shortage of skilled trades in the industry right now. There's a big opportunity for those that don't want to go to college, that want to go into the trades to be very, very successful in these businesses. Have you been able to reach back to those trade programs and help some of those young men and women get a start in this business?

04:49

Ryan: Yes, we have. We've hired a few that way, but I also am a strong advocate of kind of growing your own. You know, you don't want to bring somebody in that's already got bad habits or, you know, maybe has something already set, or their mind set in a certain way or a certain direction. So, you know, in these challenging times of hiring somebody that's quality and wants to work. We've found good employees and just developed them ourselves and turned them from, you know, maybe having two left hands, so to speak, and into great carpenters and showing close attention to detail.

05:26

Tom: So, you've really given them a career in that. In that respect, you're not just, they're not just filling an apprenticeship, they're really getting a start on a career. And it sounds like there's a path if they choose to stay with you to continue to increase their responsibilities, increase their worth and increase their pay, I imagine.

05:42

Ryan: Yes, absolutely. Actually, I have since the beginning of I've never actually lost an employee that I've hired. They stay with us, and they grow with us. I consider my employees just an extension of my family.

05:54

Tom: Yeah, that's extraordinary that you've never lost an employee. What do you think makes you different than so many other contractors in this business that go through many employees every year?

06:03

Ryan: If my employees come to work and consider it a job any day of the week, that's on me. I kind of I create a lot of fun on the job sites. I'm easy and loving to get along with and. You know, kind of like Apple’s approach, with Apple’s business approach that they had, you know, where, you know, the office space was fun. I think they had a slide or a pole from one level to the other. You could take down, you know, fun stuff like that. We don't we don't go to those extremes. But, you know, we just keep our employment light. And, you know, we're never, I'm never heavy handed or anything like that. It's, we try to keep our job sites fun but yet productive. And you know, our attention to detail is second to none in my eyes.

Condo Projects Provide Interesting Challenges

06:46

Tom: So, what kinds of projects do you personally really enjoy taking on? What problems do you like to solve for your customers?

06:55

Ryan: Yeah. You know, one of the things we do a lot when area we do a lot of working is high rise buildings. We do a lot of condo renovations and stuff. And as you know, condos are generally smaller spaces. So, you know, to try to expand a kitchen, maybe or a bathroom where you can't go beyond the existing walls. But to try to create more usable space for somebody is very important, especially when the space is already small and limited. So, you know, to try to get the most out of the space, to try to give the most function. I guess out of that, given space is such a challenge, but it's so rewarding at the end of the day when you can come up with that perfect design that falls into their budget and they're so happy. I mean, client walking away from a job site or leaving a job site and having that customer satisfaction is huge. And it's what makes me tick and go around every area of my world go round. So that's very important.

How COVID-19 Drove More Business

07:56

Tom: Now, this past year, folks have been working from home more than ever before, spending more hours at home. That makes the use of that space and the efficiency of that space even more important. Has that changed the requests that you're getting, you're hearing from your customers, given what the country's been through these last 12 to 15 months?

08:16

Tom: You know, what's surprising about that? Yes. And in short, yes. But what's surprising about it is how, you know, everybody sitting at home is realizing maybe how unlivable or maybe ugly their current living space is in their current condition because we, the phone has not stopped ringing since the beginning of this pandemic. And it's interesting to me how many people are reaching out and doing rehabs and changing their space because it's going to be their new home office or it's going to be, you know, their home much more often they need two refrigerators versus one, because now they're cooking three meals a day versus one meal a day at home. So yeah, it's that's very interesting that you bring that up because has it changed? We've gotten busier. We've gotten much busier during this pandemic.

Tom: You're listening to the LL Flooring Profiles Podcast, I'm talking with Ryan Otte of RLC Home Pros.

09:07

Customers Fit Key to Successful Project Outcomes

Ryan, part of the success of any contractor is finding the right customers, and I think for the most part, we interview our customers as much as they interview us when we meet them to talk about a job. Do you have any tips for helping to select, you know, customers that you know, are really going to be a really good fit for you and your business?

09:36

Ryan: Boy, that's a tough question. You know, we're a referral-based business only. We only, our customers are all referral based. We don't advertise anywhere. So that really helps us to make sure our clientele is, you know, kind of on the same page as you and understanding of, you know, what a construction job consists of, I guess, you know, if you if you feel something funny in your stomach about somebody, you know, maybe you just passed them on, you say, Hey, you know, I'd love to help you, but I just can't, because it's probably true. We've all had a bad client, you know, now every now and again. And it's usually that one where if something feels funny, there probably is something funny and you should just pass them on to somebody else. Don't pass them on to your friend or whatever. Just, you know, pass them on to the internet. Maybe what we have been so blessed with, with having great clients over the years and just having good people to work for, that aren't overly difficult? Because that is a big problem in this business. It's dealing with difficult clients.

Importance of Supplier Relationships You Can Rely On

10:43

Tom: Now we talked about the communication between you and your customer. Let's talk now about the communication between you and your suppliers. I mean, a good supplier can make or break your productivity if the product is not delivered on time. If it's not on budget, if there's problems with the product, it can really set the entire project back. Tell me about some of the suppliers that you work with and the kinds of value that you find in those relationships.

11:11

Ryan: Yeah, well, let's use L.L. Flooring, for example. They're great, you know, they're a big company. I can't think of a single time where I've gotten called back after we've completed a job for, you know, the quality of the floor or the quality of the install. And you know, the associates L.L. Flooring are experts. They're wonderful at what they do. And you know, if I have an if I have a question or my client has a question that I can't answer, I just reach out to those guys. And if they can't answer it right, then and there they will give me an answer. Probably within 15 or 20 minutes, by within the time I'm still sitting there, probably with that client, that means a lot.

11:52

Tom: So, you're saying it's important to leverage the expertise that your suppliers offer? In other words, it's not just about placing an order. It's really about the entire experience of being able to trust the supplier to solve those problems, to get things done for you, to provide the information when there's a gap that really makes that relationship a success for both sides.

12:13

Ryan: It truly does. You know, as a pro, you're expected to kind of know something about everything, but you can't always know everything. And it's so nice to lean on your suppliers when you've got good ones and you've got to have good ones in this business. As competitive as it is today, you've got to be able to rely on leaning on those guys as often as you can for their detailed expertise, and that's huge in this business.

Journey From Worker to Manager: Tough but Necessary

12:40

Tom: Now, when you first got started in construction, it was right out of high school and then you opened your ROC Home Pros in 2015. Talk to me about the journey from doing all or most of the work yourself to running a business that does the work. That's a big step that I think a lot of contractors don't always get right the first time.

13:00

Ryan: Yeah. And you know, the hardest part of that is taking off the work boots, so to speak, and that doer hat and running a business because it's so hard to hand over, you know what you've built, to employees who now you have to entrust on the job sites to make sure that they are doing exactly what you would be doing at the same rate, at the same quality, you know, paying attention to detail. That was a tough journey for me and I, my partner told me for years that you got to get off the job, said, you've got to you've got to spend more time, you know, meeting with clients and putting together estimates and stuff like that. And it's just like, oh, no, you know, I've got to be on the job site. It's where I belong. And it is so hard to remove yourself from that daily grind of being on the job site to putting yourself in an office position or more of a management role. It took me almost two and a half years to finally just step back and start slowly investing in your business. That's what you're doing. Really, you're investing in your business. You're putting project managers in place, you're putting estimators in place, you're putting more boots on the ground and at the end of the day, you should be making more money. And if you're not, you're doing something wrong. But it's just so much more fun now. And you know, I get to go on job sites and, you know, kind of circling back to growing my own employees. You know, I get to go on the job site and see, "Hey, wow, you know you, you listen to me, you're doing that exactly the way I would do it." And it's really gratifying to walk away or, you know, to bounce around from a different job site in a day just to kind of catch up and check in on the guys because there's not a day I don't stop in and check on job sites, especially if I'm in the area. So that was that's a process to get yourself from door to door and keeping your hands off of things. And you know, what's funny about that is sometimes when I walk on to a job site, the guys are like "Ryan, there's wet mud on the wall", "Ryan there's white paint on the walls" or "Ryan, we just did that.".

15:07

Tom: They’re looking out for you. Yeah, here comes the boss. And he's going to mess up our work and we'll have to do it all over again.

15:14

Ryan: Yeah, exactly right. Exactly right.

15:17

Tom: You learn that lesson, even though you say it took it, took you two and a half years. I mean, I know, I know guys that, you know, I mean, they've been doing this for 10 haven't quite got it right. I always say there's a difference between swinging a hammer and running a business. of hammer swingers, you know, they're just not the same.

15:32

Ryan: That is very true. And it's, boy, once you're once you can step back and kind of look at what you've done and what you've created. It's really, it really makes you feel good and it's a load off your mind, even though you've taken on a whole different load. But that part of it, anyway, just knowing that you've put the right pieces, the right players in place. Man, you've done it and you've succeeded in that aspect.

Diversification: Wide Ranging Capabilities Drives Ongoing Opportunities

15:57

Tom: Let's talk a bit about diversification. You know, you seem like you've done a wide variety of projects. Did you find yourself spending too much time in one particular area of the business or type of project where you felt the need to diversify? Or maybe you felt you were too diversified, and you were more profitable and more focused by just really concentrating on one type of project? Where do you fall on that?

16:20

Ryan: Boy, we are all across the board. We do absolutely everything. You know, I look at the amount of equipment that we have and tools that we have. Really, I feel like I wouldn't be able to survive if I wasn't multi-faceted. And I'm probably 100 percent wrong by saying that because there are painters, are a drywaller, there are trimmers that you know, we're doing very well, but we come in and with our ROC Home Pros, we're a one stop shop. We bring in, I employ tile guys, painters, drywallers, trimmers, framers, everything there is. All my guys can install LL Flooring or, you know, any flooring, for that matter. We are very multi-faceted because I just always felt when I'm bidding these jobs and, you know, handing something off to a sub that just money out of our pocket where, you know, that's subs going to come in and charge me X. And, you know, I may as well just in retrospect, I can save that client, you know, a markup where we're contractors going to hire a sub to do something where there's going to be an additional cost. So I can save that client that money, too. So, is there one thing that we do more than others? You know, not really. It's funny how our job sites change, right? We'll be doing flooring for weeks on end. And next thing you know, we're doing nothing but bathroom rehabs or something or kitchen rehabs, and then it just totally switches to something different. So, it's wonderful being multi-faceted in this business and being able to, "yeah, we do that". And if I don't like, I don't carry any of the licenses. I don't carry HVAC or plumbing or electrical license. So, you know, I have wonderful subs that we always work with the same group of guys. So, my guys know their guys and we work very well together on a job site, which is huge and very important for a good job site, a functional job site.

ADA Projects Offer Rewarding Results for Customer and Pro

18:13

Tom: One of the areas that you do seem to specialize in is to take on A.D.A. jobs. How did you get into that line of work? Fairly specialized right? Something that everybody thinks they know, but once you get into it, you find out how much you don't know pretty quickly, right?

18:27

Ryan: Oh boy, yes. So, my first ADA compliant job was an individual with Lou Gehrig's disease. And you know, that is a debilitating disease where slowly you basically lose, you know, you see your body, it's just a horrible disease. And when I met him, he still had good use of his legs and he lived in a place where his bathroom was upstairs and he wanted me to put in a new bathroom that basically he could for a shower-wise he could walk through this thing and run the controllers with his feet basically give himself a shower and man, I struggle with that, I walked away from that opportunity or that home that day to bid it, I just was like, I can't do this, I simply cannot do this. The doctors and nurses are all saying he's going to lose his legs eventually. You know, it's not that he's not going to be able to walk. So, you know, I kind of drug my feet and put the numbers together to it. And then finally, it worked out that, eh, he's got to sell his place. His legs aren't going to work for him. So, we basically took it from that to remodeling his parents’ home for him and putting something together where he was able to stay there. And we built a wet room and a nice shower bathroom with a transfer station all on one level for him. And yeah, that is just changed to going into four or five different ADA jobs that we've got. While I guess we probably done more than that, think how many we've done, but you know, what we do is we go spend time with the client to understand their needs. You know, if they're in a nursing home or if they're in a transitional home, you know, we'll go measure their needs in their electric scooter or whatever their driving, whatever they're confined to, to make sure that we're building it to their needs and that's very specialized. When people find out that you do that and you're willing to spend the time to help somebody, it's really, really heartwarming and touching.

20:35

Tom: You know, another aspect of that work, accessible design work, is that we're all spending more time in our homes than ever before. We are not retiring to other places as much as we had in the past. We're growing old in our homes and that means there's a lot of opportunity for remodeling that just makes the home more comfortable. But it also makes it more comfortable for even those that don't have physical limitations. You know, something as simple as a lever door handle that you can operate with your elbow if your hands are full of groceries, you know, makes a difference. Do you find some of those sorts of accessible elements finding their ways into your projects for those that don't have any type of disabilities?

21:19

Ryan: Yeah, absolutely. Well, you know, that's one of my first questions when we walk into, you know, when we're looking at a home for remodeling it, you know, are you going to live here for a while? You going to grow old here? Because that changes things. If you're going to just rehab this thing to sell it, you know in a week or a month or even within five years then we'll kind of look at options where it's, you know, leave the door open to many buyers, you know, a larger pool of buyers. Versus if somebody's going to stay there and grow old, you know, then we're going to walk. We're going to look at, you know, walk in, curb-less type showers, you know, maybe it's a roll in at someday and yes, absolutely. The, get rid of the doorknob. And you know, like you said out of add a lever, you know, and the same with kitchens. Rather than putting that microwave over the top of the range where it's up high, where someone could possibly pull something out and drop it on themselves and burn themselves maybe we will do a drawer option, microwave in the island or something. So yeah, just little things like that that, you know, when you've been in the business long enough, you catch on too little details and you're able to offer those hints to your clients and take more. I didn't even think about that, you know, so it's nice having that expertise. And you know, again, I surround myself with experts in the business, whether I hire them or they're my subs and they bring that same stuff to the table.

One Thing I Wish I Knew Sooner? Customer Satisfaction is Everything

22:39

Tom: Ryan, you've been you've been very helpful and very instructive in all your tips. I want to bring you now into a final segment, and it's something we call one thing. So, I'd like you to I'd like you to sort of finish this thought. You know, when I started my business, I wish I knew blank and give me one thing and be specific, something about customer relationships, something about building your business, something about flooring. What are some of those little one things that, "Gosh, I wish I knew back when"?

23:06

Ryan: You know? Yeah, it's hard to really get specific into one exact thing, and I'm sorry for that, but I would complete that thought by saying everything I know about business today, the customer relationships, the customer satisfaction, and truly what quality work with integrity means to a customer. I feel like I've always brought that to the table with any customer that I've ever had. But understanding how much that means truly means deep down inside to a client when they've shown you through their reviews or, you know, an email that they write about you or your business, that's huge. And when you run a referral-based business, it's all you've got. I mean, that's you have to have that. And yeah, it's really knowing everything I know today. I wish, I wish I had known it seven years ago. I wish I had known it 20 years ago, you know. But you just don't get to. You got to walk before you can run.

24:06

Tom: Ryan, thank you so much for being a part of the Pro-Files podcast and continued, good luck with all your work. Ryan's website is R-O-C-HomePros.com