TLDR;
This video features Nathan Popa of PDX Holiday Lighting, who shares his journey of building a successful Christmas light installation business while being a full-time student. He discusses how he started, the strategies he used to attract customers, and the common mistakes entrepreneurs should avoid. Nathan emphasizes the importance of quality, customer service, and confidence in pricing.
- Starting a Christmas light business can be done with minimal startup costs (under $500).
- Word-of-mouth and yard signs are effective marketing strategies.
- Confidence in pricing and service is crucial to avoid undervaluing your work.
About the biz [0:54]
Nathan Popa, owner of PDX Holiday Lighting, installs Christmas lights on houses with a focus on quality and making homes look beautiful. He started the business to fill the slow winter months when his soft washing business slowed down. A customer's request to install lights sparked the idea, and he found people were willing to pay well for the service.
But, why Christmas lights? [1:13]
Nathan initially did soft washing but needed a winter business. Customers asked him to install Christmas lights, which led him to realize the demand for this service. He started without knowing what to charge but quickly learned people were willing to pay significant amounts for quality Christmas light installations.
Prepping the lights [2:18]
Nathan prepares the lights by screwing bulbs into clips on the wire. The clips attach to gutters or slide under shingles, ensuring secure placement. This method allows for customization and the use of commercial-grade products.
A unique touch (for guaranteed quality!) [2:52]
Nathan buys his own lights and assembles them to customize installations with various colors and commercial-grade materials. This approach allows him to guarantee the quality of his work and offer free service, justifying his premium pricing. He uses thousand-foot stringers that cost around $300 each.
Revenue [3:58]
Nathan's business generated around $60,000 in revenue the previous year, starting from mid-October. He initially underpriced his services but realized the potential when a customer accepted a $12,000 quote. Currently, the business is making around $50,000 in two to three weeks, with a goal of reaching $125,000 for the year.
Startup costs [4:58]
The startup costs for a Christmas light business are low, with a bare minimum of $500 to get started. This covers the cost of a ladder, ratchet straps, and initial marketing efforts like door-to-door knocking. Securing a deposit from the first job allows for purchasing materials and reinvesting in marketing.
A winning spiel [5:30]
When potential customers call, Nathan immediately states that his company is not the cheapest, with prices starting at $800 and averaging $1,200. He emphasizes that they provide custom-cut lights, free service, take down, and storage under one price. This upfront approach helps him filter out price-sensitive customers and focus on those who value quality and service.
Investing on a trailer [6:55]
Nathan invested in a trailer with a wrap costing around $2,500 to enhance his company's branding and appear more premium.
Attracting customers as a newbie [7:12]
Initially, Nathan attracted customers by knocking on doors and buying leads. He emphasizes that while there will be many rejections, persistence is key. One positive response can lead to more opportunities through word-of-mouth and social media.
Rejection is a redirection [7:47]
Nathan views rejections as valuable data points to understand why people are saying no. By analyzing the demographics and careers of those who reject his services, he can refine his ideal client profile and tailor his services accordingly.
Fan blitz [8:18]
Nathan starts booking for Christmas lights in August. The most challenging installations are on steep roofs or houses on the lake. He unwinds by spending time with family, staying away from social media, and engaging in devotions. The coldest weather he has worked in was around 17 degrees. His biggest purchase after making money was a truck and trailer. He typically decorates two to three homes a day with a crew of two, working from 7 AM to 8 or 9 PM during the busy season. A memorable client reaction was surprising a family with extra lights on their garage during a tough time. He wishes he had put God first in his company sooner. The most rewarding thing about running his business is having time to spend with family and take vacations outside the busy season.
The best strategy for the best ROI [11:04]
Yard signs provide the best return on investment (ROI). Nathan pays about two dollars per sign, and one sign can lead to a $1,200 job. He gets permission to place signs in customers' yards by offering a discount.
Marketing and ad spend [11:50]
Nathan spends around $3,000 per month on marketing, which is a significant increase from the $3,000 spent for the entire previous season. He emphasizes the importance of spending money to make money and keeping marketing simple.
Avoiding common pitfalls [12:19]
A common mistake entrepreneurs make is undervaluing their services. Nathan advises against being the cheapest option and emphasizes confidence in pricing and service. He keeps his phone calls short, under 30 seconds, if potential clients are not interested in his pricing.
Cold calling: Three possible outcomes [13:06]
When cold calling, Nathan states that his company is not the cheapest. The conversation can go three ways: the client respectfully declines, the client becomes angry and threatens a bad review, or the client accepts and wants to discuss the services and products offered.
Trailer setup [13:51]
Nathan's trailer is equipped with shelves and a hot glue gun for touch-ups. He doesn't offer clients the option to leave the lights up year-round; instead, he leases the lights and removes them after the season. The trailer was purchased with shelves already installed and was modified to suit his needs.
An absolute must-have [14:54]
Having a trailer is essential, especially in rainy areas like Portland, to protect the lights and equipment. The trailer allows for smooth operations and provides a covered workspace. It is stocked with lights of different colors.
Top tip for starting out [15:30]
Nathan advises using online resources like YouTube and UpFlip, and reaching out to people in the industry for networking and learning. He offers to help others get started with Facebook ads, Google ads, and general advice.
Background [16:13]
Nathan's parents, immigrants from Romania, instilled a strong work ethic in him. They started with very little and eventually opened their own companies. His father's hard work and dedication inspired him to research, learn, and take action in his own business ventures.
Cheap (but effective) installation tricks [18:10]
Nathan recommends using GFI protectors to prevent electrical damage when cutting live wires. He also suggests using fishing vests to carry equipment like plugs and pliers, reducing the need to climb up and down the ladder.
Light installation vs. Pressure washing [18:57]
While Nathan's pressure washing business generates over six figures, he prefers the Christmas light business due to its fast-moving nature and the satisfaction of seeing quick financial returns and happy customers.
Overhead expenses [19:31]
Nathan's overhead expenses are minimal, as he runs the business from his parents' home and doesn't have to pay for a shop or utilities. His main expenses include the cost of lights, app fees, and payroll. He likes to keep around 5,000 feet of lights in stock, mostly warm white bulbs.
(Almost) Everything can be decorated! [21:07]
Nathan decorates various types of houses and is not limited by size. He offers services for trees, stake lighting, and any other envisioned decorations. He is willing to learn new techniques to fulfill customer requests.
Getting suited up… as Santa! [21:37]
Nathan uses a Santa suit for advertising, particularly in Facebook ads, to grab attention. He has been wearing Santa hats from day one, which customers love. The Santa suit and hats add a festive touch to his brand.
Bagging the biggest job (yet) [22:55]
Nathan's biggest job was a $5,000 commercial project for an assisted living facility, and he has a $16,000 job booked for November. He closes big jobs by answering the phone promptly, being confident, and meeting with clients in person to explain his services.
Keeping customers happy [23:56]
To enhance customer experience, Nathan provides a full design rendering of the house and gift baskets with holiday treats. He also gives baskets to neighbors as a marketing strategy.
Sourcing part-time help [24:28]
Nathan finds help by reaching out to friends and family or their connections. He looks for hardworking individuals, pays them well (around $25 an hour with incentives), and teaches them what they need to know.
An average job site [25:19]
A typical job involves installing 125 to 150 feet of lights on the front of a house, which takes about an hour and a half and costs around $1,600. The take-home pay for such a job is approximately $1,300. Nathan uses commercial-grade materials and circle clips that are versatile and durable.
Estimating new jobs [26:40]
New jobs typically take one to three hours to estimate, while reinstalls can be done in 15 minutes to an hour. After taking down the lights in January, everything is labeled and packaged for easy reinstallation the following year.
Commercial vs. Residential [27:10]
Nathan prefers residential jobs because he can charge higher prices and complete three to four houses a day. Commercial jobs involve consistent work with lower prices per foot but a larger volume of lights.
Installing male plugs [27:47]
Installing male plugs involves cutting the cable, inserting it into the plug with the ribbed side aligned correctly, and closing the cap. This process is simple and doesn't require an electrician.
Standing out from competition [28:34]
Nathan differentiates himself from competitors by using high-quality LED bulbs, hiding cables effectively, and paying attention to small details like peaking the bulbs at the top and ensuring the lights reach the end of the gutter.
The roadmap to success [29:17]
To start a Christmas light business, Nathan advises door knocking to secure one or two jobs, using the deposit to buy materials, and ensuring the job is perfect to get footage for marketing. He recommends reinvesting the earnings into marketing and more materials. Once jobs are coming in, he suggests forming an LLC and getting insurance.
Staying motivated [30:03]
Nathan stays motivated through his faith in God, making people happy, and providing for his future family.
Installation packages [30:58]
Nathan offers different installation packages, including ground lighting, windows, garage, and roof lighting. Most customers opt for roof line lighting, while about 30% also choose windows and garage lighting. He tailors his services to meet the customer's vision and offers additional options.
Grab that first win—It’s your launchpad! [32:48]
Nathan believes anyone can start a Christmas light business with drive and hard work. He emphasizes that the most common limiting belief is the fear of starting. He encourages people to take action, do the first job, and not get bogged down by paperwork or business names.
Outshining competition in a seasonal market [34:06]
To handle competition, Nathan focuses on charging a premium, using high-quality lights, branding, and connecting with clients. He brings energy to the job, makes clients feel special about their homes, and suggests lighting options that enhance the house's features.
The hardest lesson [35:11]
The hardest lesson Nathan learned was time management. He emphasizes the importance of having proper systems in place to manage clients and processes. He uses an app called Your Leads Keeper to automate follow-ups and manage opportunities.
Growing pains [35:59]
The biggest challenge with scaling is finding good help. Nathan is fortunate to have hardworking individuals from his church. Managing growth involves handling more jobs per day, requiring better organization and processes.
Handling dissatisfied clients [36:55]
Nathan guarantees his work and addresses any customer dissatisfaction by going back to the job and making changes until the client is fully satisfied. He ensures clear communication and shows clients the design ahead of time to avoid misunderstandings.
Embrace the fear, but knock anyway! [37:53]
Nathan advises those nervous about door knocking to embrace the fear and do it anyway. The worst that can happen is someone says no, and each rejection is a learning opportunity. He emphasizes that confidence is built by getting out there and facing those rejections.
A big misconception [39:06]
The biggest misconception about running a business is expecting the phone to ring automatically after forming an LLC. Nathan emphasizes the need to actively market, present the brand well, and put in the work to attract customers.
