“He’s a Jerk and There’s a Payroll Problem”

Рет қаралды 28,105

Күн бұрын

In This Episode:
• A leader in a company who has to deliver bad news to the owner, who is also his girlfriend’s dad
• A business owner wondering how to share profit with his team
• A business owner who is discouraged by making over $1,000,000 but not having any profit
• How to structure benefits and pay to attract and retain team members
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Пікірлер: 80

@scottmcgillivray4229 4 ай бұрын

I'm a customer of Jerry's 4x4 shop in Burnaby, British Columbia. They do fantastic work, whether it's bolt-on upgrades or metal fabrication, they're the only place I take my Toyota truck. I'm honestly not surprised to hear him on this show. I'm no entrepreneur, but each time I have work done, I crunch the numbers in my head and wonder how the business survives. It feels like they invoice too few hours at too low a shop rate. If Jerry billed 30% more time at $30 more per hour, I wouldn't even blink, and I still think he'd be below market value. Dave is spot-on at 28:00, the pricing model needs a change. If I buy a suspension upgrade, I'm also buying a proper installation from a good mechanic and chunk of the invoice will be labour costs. This may sound crazy, but I want to pay more so that I know a 4x4 expert has taken the time to do the job right. If I wanted a cheap back-yard job, I'd get my weird uncle to do it. I hope Jerry takes the perspective that he's not just selling parts, he's also selling the time and skill of his expert team.

@coltreaper5593 4 ай бұрын

Deamm I have that same situation but i the other side of the table. My sad has mechanic shop and maybe we are in our heads... But I am 90% sure (based od other people's stories about other mechanics) that we are the best. Like we do all the risky or high responsibility jobs. And when customer goes through every other mechanic he ends up at our shop and we get it done... But we do engine rebuilds at the same rates as others do brake jobs... 30€ hour. And since I know what is happening backstage, I know we don't charge 20-30% of the hours we actually spent on the wehicle because my dad (boss) is afraid it will be too expensive. Or he just tries to help people ..

@HH-le1vi 4 ай бұрын

That's called a charity. @@coltreaper5593

@robertcosta6967 4 ай бұрын

Best advice : don't mix your career with your personal life. So, he either should stay with her and find a new career / job or.... break it off and stay working there. Personally, I lean towards option one. You get the girl and you have no work conflict and.... probably make more than $22.00 per hour....

@scottmcgillivray4229 4 ай бұрын

@@coltreaper5593 That's too bad your dad runs the shop that way. I wonder how many of your customers even need the help? In Jerry's case, he's dealing with toys for people with enough money to buy a good truck and upgrade it with high end parts. Most of British Columbia can only be accessed with the right vehicle. You need something capable enough to get you into the remote places, and reliable enough to get you out of them.

@joshdh46 4 ай бұрын

Man, the first call is very relevant. Nice to know that these generational transfers are issues for many others!

@andrewroyer3090 4 ай бұрын

I've done the custom truck game. Don't ever bill by the job on custom work. Bill by the hour with an estimate with a 20% wiggle room on top of your target profit, then apply that 20% to each individual portion of the total custom job. Then you have a chance of turning profit. The money is in parts sales, not the work itself. The margins are super low on the work.

@Dave872010 4 ай бұрын

That last lady was something else. Did she really ask if bringing on new drivers for more than current ones would be a problem? Think about that. If you bring them on for even the same it’s going to be a problem. Where is the pay for their loyalty to your business? Dave talks about the small business atmosphere being about family and caring about you in lieu of some pay and benefits. She wants to treat them as bad or worse then a big corporation for less pay and little to no benefits. Which one are you? Pick one. Any driver who isn’t a problem child will skip right over this job for a better paying one with good benefits. Your current drivers will too if they have any respect for themselves. I work as a driver for corporate America. Some parts of it do suck but small business ran by people like this is even worse. Difference is I make 50k more per year and a great benefit package for my family with a $1500 out of pocket max costs me $29 per week. There is no illusion that small business has anything to offer the average worker. Only way I’ll ever work for one is when I’m the owner of it. Currently working on that.

@jimbobjim2310 4 ай бұрын

We didn’t need a novel length explanation

@Dave872010 4 ай бұрын

@@jimbobjim2310 Must own a “small business” and don’t even try to compete with corporate America. Just like me not even trying to compete with Jason Momoa in the dating market lol

@DiscoFang 16 күн бұрын

@@jimbobjim2310 If that was novel length to you, you must be Gen-TLDR. Maybe Dave will run a txt based show.

@TJBarranger 4 ай бұрын

Did anyone else hear Dave tell the second caller that $150k is 1% of a $1.5M bottom line? By my math, $150k would be 10%. Not sure if he misspoke or I misheard. The point is valid, but the way he framed it makes it sound like small potatoes for the owner.

@Greg_Chase Ай бұрын

Dave's business acumen applied to the businesses who call in - it's amazing. Most of us aspire to having that depth of knowledge/experience because some of the issues callers have - are intense. As an example, the caller who is dating the daughter of the unfriendly-to-employees owner, and the 2nd owner in the business being 'not on the same page' - wow. As if business wasn't challenging enough. Dave always knows what to do though. Great episode! .

@papabeard7705 4 ай бұрын

I got 30 seconds into the first caller and I’ve just been singing for the last five minutes that he needs to quit. Just please leave you being there is not helping and it’s probably gonna kill your relationship in the long run.

@silverreverence6176 4 ай бұрын

Brought in and pushed up the ladder as he’s dating the owners daughter, probably so the owner has leverage over him. Co owner annoyed that the kid is trying to make changes after six months. Other workers annoyed at the blatant nepotism. Fun.

@apileofrocks5142 4 ай бұрын

21, making $22 an hour, and dealing with this type of conflict resolution in a family-run business? I was making $50/hr dealing with similar issues and I thought I was underpaid for it then! I'm with Dave, there is no good answer here for Mike. You report it straight, as is, but there is ZERO chance for change. Leave the company either way.

@michaelwoods4495 4 ай бұрын

He uses the term "corporate America" meaning, I suppose, big publicly traded firms. But most businesses are incorporated, even small ones. It's rational to protect an owner's private assets by using a corporate form.

@Abdulaziz2003 4 ай бұрын

That’s not at all what he’s talking about. He’s not talking about the legal structure of a business, but rather the scale and culture of “corporate America”.

@PN-ve9lf 4 ай бұрын

Dave covers 90% of employees health insurance, not bad at all!

@ZeikCallaway 4 ай бұрын

Genuinely impressed by this. I don't always agree with the man, but I do respect a lot of his business/leadership advice.

@mwhe3111 4 ай бұрын

Last caller - Why on earth would you not pay current employees as much as you'll be paying employees hired on new? What a slap in the face. She sounds like she wants to be a good boss, but get real here.

@John-du2mq 26 күн бұрын

My old job did this and they were shady people up top. Companies that do this are always terrible places to work

@cooleobrad 4 ай бұрын

23:56 I was under the impression that non-competes were just made illegal by the FTC.

@USMC6976 4 ай бұрын

Yeah, but it's being challenged in court. So it is not being enforced, yet.

@PeytonOver 4 ай бұрын

Unenforceable I think was the word they used but same thing

@dontdoxmebro 4 ай бұрын

I believe only for basic workers not c suites or executives, but the lady mopping the floor? Hers doesn’t count iirc

@cooleobrad 4 ай бұрын

@@dontdoxmebro Pretty sure it is non-competes across the board. Is there anything I can look up to see what you're referencing?

@mwhe3111 4 ай бұрын

First caller - I'd quit. Bad is gonna get worse.

@kaizenborntowin 4 ай бұрын

Thank you, Dave!

@TheDjcarter1966 4 ай бұрын

No,no no...tell both of them right now I am happy to be an employee and even a supervisor but all I'm going to do is promise to be the best employee you have, all my projects will be done on time and on budget and I will do whatever work you need, but I'm not getting involved with how the company is run or whether people are paid or any other aspects of management outside managing the project and people you give me. Now on the side start looking for a job because this toxic crap is going to blow up your life professional and personal.

@realestatejunkie0414 7 күн бұрын

21 year old got trapped in the middle of a sucky situation. The gf dad probably wants him there to have a 2-against-1 dynamic vs the other owner. The guy is like a pawn

@takeastandorbeenslavedby-left 4 ай бұрын

The first caller is a project manager, not preventive maintenance guy. AV companies pay way more then this. This company sucks or he doesn’t have any real talent. Most likely both.

@ZeikCallaway 4 ай бұрын

I think this is where I greatly disagree with Dave. If you're someone's sole source of income. You're the one giving them full time employment, you have some responsibility to make sure they have health coverage. Until we have affordable public options or M4A, employers should be expected to provide it. If you can't afford a fair pay and benefits then you shouldn't be hiring.

@jlaw1901 4 ай бұрын

Tons of jobs would be lost with that mentality at scale.

@ZeikCallaway 4 ай бұрын

@@jlaw1901 That's kind of the point. If a full-time professional job can't give a person the basic foundation, it shouldn't exist. It's one thing if it's part time work. But fully employed means treating people with enough dignity that they can afford to have a roof over their head, food on the table and be able to go to the Dr when necessary.

@DiscoFang 16 күн бұрын

Agreed. I don't know the US tax structure but is there tax relief or exemptions for healthcare as an employment benefit? The company paying for it should be more cost effective than paying employees extra for it and that income being taxed.

@chrishardin4725 4 ай бұрын

(36:00)Paying by the job helped streamline my crew down to the hard working, trustworthy help. I went to subbing work on an individual, part-time basis. Now I get a handpicked crew per job that pays about 4 times industry standard and I feel like I've been on vacation since starting this. Turns out, with an optimal group with no company truck driving chair-warmer parasites, all of us can make in a day what took a week to earn last year doing the same work. Best decision I've made in a while.

@DiscoFang 16 күн бұрын

I've worked similar way running my own projects for myself and for clients. Yes, it leads to higher pay, shorter hours all round. But I think the key is pricing correctly and getting the right clients matched to that. This last year I decided to help a friend out by taking a job in his business as skilled labor, designer and general quality control. Unfortunately the problem is he's simply under-estimating/quoting. I get the impression that is the main problem with this 4x4 shop - underpricing.

@zacharyfair6738 4 ай бұрын

To the first caller - assuming everyone knows acronymous is silly. Use plan language when speaking to a large audience. BUT he is 21. Still sounds like a lost child. 2nd caller - he probably walks around this shop complaining how they aren't making money like his employees are his friends. They then think, I'm never going to get a raise/lose my job....

@joelharris5083 4 ай бұрын

9😊😊😊😊😊😊😊😊😊😊😊😊😊😊😊😊😊😊😊

@JacobsNews 4 ай бұрын

I also wish she asked him what salary he's taking off of the million dollars because I've been looking at a business to buy and I see that the smarter owners take a large salary and then claim a small loss

@getinthespace7715 4 ай бұрын

Going to work for your future father in law... that's rolling the dice. McDonald's pays $20/hour in our town. They are going to go out of business unless they can improve pay rates and retain employees. Dave's right. Kid needs to meet with both owners and see of they to hear what he found out. If they do. He's in good shape. If they don't.. He needs to find another job and move on.

@JacobsNews 4 ай бұрын

He needs to learn blue-collar runs of using guys for a few years . And they are all telling the future father in law every thing he is talking about, and that's why the guy is treating him differently .

@getinthespace7715 4 ай бұрын

@@JacobsNews , yeah. I got the impression this kid was running his mouth behind the scenes, or talking crap to the girlfriend and stuff is getting back to the father. It also sounds like he met with the other owner at least once without the father and that was SUPER stupid.

@BrianLyke 4 ай бұрын

The crypto market has been unfavorable for months and I keep losing my money selling-off during dips, I'm very scared of holding right now,how do you guys still make so much….?

@TristanLegard 4 ай бұрын

VENTURING into the trading world without the help of a profesionals, trading and expecting profit is like turning water into wine you would need a miracle...

@JustinClawson-ix1ic 4 ай бұрын

It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast. I will also suggest investors to get yourselves a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.

@TristanLegard 4 ай бұрын

Following you has been an amazing journey , you have shown me the best way to earn much better profits despite the bad economic situations, God bless you with more knowledge sonia campbell...

@Lionadmike 4 ай бұрын

Great to see you guys talking of sonia, Trading on your own can be very dangerous i can testify to that. This woman changed the game for me

@BrianLyke 4 ай бұрын

Any info on how i can liaise with her, i'm new at this

@davinasquirrel7672 4 ай бұрын

First caller. It was messy listening him describe which co-owner was stepping down, I am still not sure, but either one sounds like it will not make much difference. Given the "one day" speech (taking over) sounds like the future FIL staying on? He is very young and still at boyfriend level with the bosses daughter, I feel it could be an empty carrot. The business sounds like a screwy family business, possibly won't even be there when succession time comes around.

@EmpressMermaid 3 ай бұрын

It's very likely an empty carrot. It's a way to keep your young and eager but naive worker putting in maximum work for way below market pay in the hopes that "one day" they'll get their share. It even guilts the young worker out of asking for full pay because that would be "greedy" and "we're all in this together." Meanwhile, that "one day" never comes. I've seen many friends fall for this.

@coderider3022 2 ай бұрын

5:39 1st guy, shame. Way above your pay grade. You just need to tell him what general feedback is. Look after yourself. Accept it, don’t fix it.i worked in many businesses like this, 2 owners on different planets. You lose, not them.

@tonipearce971 4 ай бұрын

Let's start with asking why is this employer reduced to this? Maybe he is dealing with useless gen z employees. They are not worth the wage they are getting if and when they bother to show up.

@Abdulaziz2003 4 ай бұрын

Don’t write off an entire generation. Just because you can’t afford the good ones doesn’t mean they’re not there.

@ZeikCallaway 4 ай бұрын

@@Abdulaziz2003 This. People like the last caller are the reason people "don't want to work anymore". They're tired of being given scraps or not treated with a modicum of respect.

@DiscoFang 16 күн бұрын

Are you referring to the 4x4 guy? Just read a comment on here from an actual customer who knows the business. Says the work is high quality but is being way under priced and charged. But don't let that stop you using it as GenZ rant leverage.