The Vertical by Michael Delguyd

AN EARLY LOOK

The Vertical

The Operator's Playbook for Building Leaders, Stronger Companies, and Lasting Value

Michael Delguyd

Build a company that can carry the standard when you are not in the room.

Introduction

Who this is for and what I am going to hand you

There is a version of this industry almost nobody talks about out loud.

We sell a homeowner a roof, a bath, a gutter guard, windows, a basement, a lighting system. Often in one visit, at a price that surprises people, with financing and a decision made at the kitchen table.

I love that arena. You walk into a stranger's house at six in the evening and have to earn the right to help two people make a decision. There is no hiding in that.

But strip an average home improvement company down to what it controls and you find a logo, a lease, trucks and relationships with companies that own much of what it depends on.

The product belongs to a manufacturer. The lead platform can reprice the opportunity. The lender's rate sheet can change the purchase. The software provider has priorities of its own.

And the actual process often lives in the heads of four good reps.

That is a company built on rented advantages.

I have built markets, led regions, helped launch offices and trained salespeople across the country. I have also had the doors of my own company padlocked and started over with a lesson I would rather have bought cheaper.

This book is for the person accountable for the whole operation. In a company doing five million to two hundred million dollars a year, that may be the owner or the executive trusted to run it. I am writing to that responsibility. A rep who wants that seat will benefit from understanding it now.

Four assets worth building

By the end, you will have a plan for four things.

A named installation process that gives the homeowner a reason to choose the company beyond the manufacturer's product.

A fair measurement standard that makes performance understandable and coaching specific.

Designed customer moments that carry the promise from the appointment through the finished work and the referral.

An intelligence layer built around this trade, using authorized, organized knowledge to help people do the next job better.

Together, I call those the Vertical Operating System. People make it work. The interview, the training room, the sales appointment and the relationship between departments are how the standard gets carried.

We begin with the ownership audit. Then the market and offer, the appointment sequence and the installation. We make measurement fair, develop the people, and only then put technology around work we understand. The last part gives you a first-ninety-days build order.

You will not own those assets because you finished reading. You will own something useful when another person can run the work correctly, prove what happened and improve it without needing you beside him.

One question before we start

If the next three years look exactly like the last three, is that a win?

If the answer is yes, you may already have the business you want.

If the answer is no, keep reading. We have work to do.

PART I · THE INDUSTRY AS IT IS

Chapter 1. Eight Forty in a Driveway

It is eight forty at night in a first-ring suburb. Not a poor street. Not a rich one. Three bedroom ranches and colonials built between 1958 and 1972, aluminum awnings on about a third of them, basketball hoops, one boat that has not moved in two years. The kind of street where the driveways are just wide enough for two cars if both drivers are being generous.

A rep is sitting in his car outside number 4418 with the engine off and the dome light on. He has been in there eleven minutes. He is not stalling. He is writing.

Inside the house, two people in their fifties are sitting at a kitchen table with a folder in front of them and a number in it that is bigger than their last car. Twenty minutes ago the wife said the sentence every rep in America has heard. "We need to think about it."

Here is what nobody outside this business understands about that moment. The rep is not the third salesperson those people have seen. He is the third salesperson those people have seen this month. One came out about the roof, quoted from a satellite image, never went in the attic. One came out about windows, spent forty minutes on a nitrogen-filled glass unit, and left a brochure. Our guy is the third, and he did something neither of the first two did. He went in the crawlspace with a flashlight, came out, and showed them a photo of what is happening under their own floor.

And they still said they needed to think about it.

So he is in the car at eight forty writing down, by hand, in a notebook, the exact words the wife used. Not his summary of them. Her words. Because in about fourteen hours he is going to hand those words to somebody who can do something with them, and if he paraphrases, the information dies.

That car, that notebook, that street. That is where this industry actually happens. Not in a conference room. Not on a dashboard. In a driveway, at night, with a flashlight and a folder.

I have spent twelve years trying to make that ninety minutes go better. It is the most leveraged ninety minutes in the whole company. Everything upstream of it, the marketing spend, the call center, the scheduling, exists to create it. Everything downstream of it, the install, the service, the referral, the reputation, is determined by it. And it is the part of the business most companies manage the least.

Let me tell you what happened in that house before he walked out.

What actually goes wrong in there

The appointment was set at six. He got there at five fifty-two and sat in his car for eight minutes, which is correct. He knocked at six on the dot.

He was good at the door. Warm, not loud. He said the husband's first name like he already knew him. They liked him inside of ten seconds, which is not luck and not personality, and I will tell you exactly how it is trained in the door step of Chapter 9.

Then he did an inspection, and this is where it started going sideways, because he did a thorough inspection of the wrong thing.

He documented the condition of the home beautifully. Twenty-six photos. Moisture readings. A little video of water tracking across a block wall. Genuinely excellent evidence, and if you put it in front of a contractor he would nod and say yes, that is a problem. The rep had proof.

What he did not have was their reason.

People rarely buy on a description of a condition alone. They buy a solution to a consequence they have already decided they will not tolerate. The wife's mother is moving in next spring, into the bedroom above the crawlspace, and she is on oxygen. That is the actual reason. That is not something the moisture meter picks up. That comes out because somebody asks, listens, and then stops talking long enough for the real sentence to arrive.

He found the problem. He never found the why. So when he put the price on the table, they were evaluating an expense instead of protecting something. And an expense always loses to waiting.

Then the second thing went wrong, and it is the more common of the two.

He gave them options. Three of them, on a printed sheet, in a column, side by side, with a header that said Good, Better, Best.

Every single reader who sells in a home just nodded. Of course he did. That is what everybody does.

Good, better, best is not an offer. It is a menu. A menu tells a person that any of these is acceptable to you, and then it asks them to do the hardest work in the transaction, which is deciding, by themselves, at night, in front of a stranger, with no framework for how to decide. Some percentage of people will take the middle out of instinct. Most will take the cheapest one and feel like they were smart. And a large number will take the fourth option, which is on no sheet and is always available, and that option is nothing.

There is a way to build three options where the middle-priced option is the destination and the homeowner walks himself there. It is not good, better, best. It goes in a fixed order for a specific psychological reason, and both of the flanking options get knocked out by the customer in his own words before the destination is ever shown. That is Chapter 10, and it is the most immediately valuable chapter in this book if you sell in a home.

And then the third thing, which is the one that made me want to write this at all.

When the wife said they needed to think about it, the rep did what he had been trained to do. He talked about the monthly payment. He had it ready, he had run it three ways, and he brought it out like a card he had been holding.

It landed like a man trying to make something affordable.

The moment you lead with payment, you have changed what the conversation is about. You are no longer helping two people make a correct decision about their home. You are helping them squeeze a purchase into a budget. Those are different conversations and they produce different outcomes. Financing matters. I will spend real pages on it, because used at the right moment with the right customer it is the difference between a sale and a shrug. But it is not the center of attention, and the second it becomes the center of attention you are selling affordability instead of the right answer.

And then there are two things that did not happen at all, which are the two I would fix first and which almost nobody in this industry is doing.

He never told them what he was going to be looking for before he went down there. He went down, found things, and came back up with evidence. Which sounds like the right order and is not, because a homeowner who has not been told what the early warning signs look like has no way to recognize her own house in what you found. Tell her first and she says I have that. Tell her after and she says how much.

And he never left the room.

He came up out of the crawlspace and went straight into presenting, which is what every rep in America does and what every sales trainer in America teaches. He never gave those two people four minutes alone to say to each other what they actually thought. So the only conversation they ever had about it happened three days later, on their own, with nobody there to answer anything.

Those two are Chapter 9, and they are the two steps that separate a process from a presentation.

So at eight forty he is in the car, writing down the wife's words.

Here is the part that should bother you. He did almost everything the company asked him to do. He was on time. He inspected. He presented. He offered financing. He followed up. If you graded him against the checklist he was handed on day one, he scored well.

He lost the sale on five things the company never taught him, because the company never wrote them down, because nobody in the company had ever been asked to.

That is not a rep problem. That is an architecture problem. And architecture is the owner's job.

The crew truck

Now let me show you the second half of the driveway, because most books about this industry stop at the sale and that is exactly the half where the money leaks.

Four streets over there is a crew truck, and it is 6:50 in the morning, and it is parked in front of a house where the sale closed eleven days ago.

Nobody in that house knows the crew is coming today.

Well. Technically they do. Somebody from the office called them, or tried to, and left a voicemail. There may have been a text. The homeowner thinks it is either today or Thursday. The wife took the day off work on a guess.

The crew lead gets out, does not knock, and starts pulling material off the truck. Twenty minutes later the homeowner comes out in a bathrobe and asks if they are the right company.

They do good work. That is the thing. The install itself will be clean, the product will perform, and that crew has been doing this for nine years and is genuinely skilled. At about two in the afternoon they will finish, load up, sweep some of the driveway, and leave. The homeowner will come out, look at it, say thanks, and go back inside not entirely sure whether what she is looking at is right, because she does not know what right is supposed to look like.

Nobody will ask her for a review. Nobody will show her the before photos next to the after. Nobody will ask her which neighbor has the same problem. The single highest-intent moment in the entire customer relationship, the afternoon a crew finishes good work in front of a happy person, will pass unused, the way it passes unused in office after office.

And two weeks later, when she gets a survey email from corporate with a nine-question form, she will not fill it out.

That is the industry as it is. Excellent work, delivered inside a customer experience nobody designed.

Now put those two scenes together.

Both of those failures can be addressed without buying a new product or adding a new location. Neither one requires a vehicle, a software purchase, a new vendor or a headcount you do not have. Both require somebody to sit down and design something, write it down, and then make it the standard.

That is what this book is. It is the design, written down.

The question this book answers

I want to be precise about what I am offering, because the industry is full of people offering a close.

I am not going to give you a better rebuttal. There are a hundred books of rebuttals and they have not moved this industry an inch, because the problem was never the rebuttal.

What I am going to give you is the answer to one question, asked at the level of the whole company.

What do you own?

Not what do you sell. Not what do you spend. What do you own, outright, that nobody can price-increase you out of, buy out from under you, or hand to your competitor across town next quarter?

For most operators reading this, the honest answer today is close to nothing. A logo and a lease.

This book gives you a plan for four things you can build. A named install process that is the actual differentiator instead of the product. A measurement standard your people submit to because it is fair. A designed set of customer moments that turns finished work into the cheapest leads you will ever get. And an intelligence layer built specifically for this trade, on your own data, that gets better every week you run it.

Those four things, in that order, are the moat.

It is eight forty at night. That rep is still in his car, writing down a woman's exact words, because in fourteen hours he is going to hand them to somebody.

The whole question is whether the somebody he hands them to has built anything worth handing them to.

What would you put to work first?

This is the introduction and first chapter of The Vertical. If you lead a team or run a home improvement business, I would like to hear what stood out—and what you would challenge.

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