EGIA
Cracking the Code Podcast
Author: | March 30th, 2025

Earn Homeowner Confidence with Third-Party Certifications

How do you differentiate yourself in the market and stand out as a quality provider?

Having high standards isn’t enough. Getting third-party appraisals and certifications can dramatically increase your number of closed deals and average ticket price.

In this week’s episode of Cracking the Code, Drew Cameron sits down with Cynthia Adams, the CEO of Pearl Certification, to discuss how their certifications have helped contractors stand out from their competition. Plus, there is added exposure with partnerships and integrated directories!

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Make your value visible to homeowners on today’s show.

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Today we have a special segment from Drew Cameron and Pearl certification. They’re going to discuss the value Pearl brings to the contracting world, and why they teamed up with Eagle to bring even more value to their members. Take it away, drew. Hi, and welcome to Contract University Studio powered by Eagle. I am Drew Cameron with Flow Odyssey, and I’m going to be your host for today’s session in which we’re going to be talking about Pearl certification.

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Each has partnered with Pearl certification to basically bring our members all the tools and resources that Pearl certification has, that we’re going to get to have an opportunity to learn about today. And so I am joined by the CEO and co-founder of Pearl certification, Cynthia Adams. Cynthia, welcome to the studio. Thank you. Drew. Pleasure to be here. Great to have you.

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So I’m very familiar with Pearl certification, but many of our members probably are not. So why don’t you tell us a little bit about what Pearl certification is and how it kind of came to be? Okay. I’d be happy to. I think I’ll start with how it came to be. Back in the 2010, 2012 timeframe, my co-founder, partner and I, had the great opportunity to find ourselves sitting next to each other at a dinner related to the stimulus package.

00;01;19;16 – 00;01;54;17

And all of the grant dollars that were were coming through there. And the dinner consisted of us actually finding a lot dysfunctional and wrong with the energy efficiency industry and the way that the government programs were going at engaging contractors and engaging homeowners. There seemed to be an idea that if we just throw enough rebate and incentive dollars at people, we will miraculously have the homeowner wake up one day electing to do a $40,000 deep energy retrofit, and contractors will become vertically integrated, and we’ll all fly over a rainbow happily ever after.

00;01;54;20 – 00;02;32;22

And of course, that isn’t at all what happened. Now, at the same time, it was really apparent when you looked at the commercial building sector that Leed buildings and Energy Star label buildings were renting for more. They were assessing for more. They were appraising for more, and they were selling for more. And here’s the really clever thing that those systems did as a part of earning the certification or the label, you could get additional points, say, for Leed, if in the lobby of that building, you put an informational kiosk and what that kiosk would do is it would it would be able to explain to the property managers, to the real estate agents and

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anyone they were bringing through the building, the benefits that you got from the features the building had. So we’re not just talking about an alphabet soup of letters and numbers and all of those performance characteristics, but we’re talking about what it feels like to work in that building. We’re talking about how much money we save as as we own the building.

00;02;53;19 – 00;03;21;11

It really translated, like I say, these features into benefits, but when you look at the existing home and all of the building stock there, there was no certification, no national certification that could translate those features into benefits so that a real estate agent, an appraiser, a lender, a buyer could really value them and therefore help the seller get more money and a return on the investment that they put into their house.

00;03;21;13 – 00;03;43;14

Pro certification is meant to solve those problems. We work directly with contractors to help them. Third parties certify their installations so that they can bring an equity benefit to their homeowner customer. As a result of that third party certification. So talk to me about a little bit more about that, because basically what you’re telling me is we’re not going to put a kiosk on the front lawn about the house.

00;03;43;15 – 00;04;00;10

No. Right. No. So how are we going to get that information out, you know, to the public? I mean, number one, to the consumer who owns that house, who’s maybe owning it and holding on to it or looking to possibly sell it and make more money on it. That’s a great set of questions. So we have a certification report package.

00;04;00;12 – 00;04;22;12

It includes not only the report itself, which, talks about the different high performing features in the house. And it does a comparable statement. So I know that, hey, my home’s air conditioning system is in the top. You know, 5% of homes in my state. So it gives me another data point there to understand. Okay, well, how special is what I’ve got?

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It takes, that particular feature and it talks about the benefits in the certification report in language that consumers understand and can relate to. So it’s not just that I have an ACH 50 of, you know, three air changes per hour. It’s that I have less dust, less bugs, less insects, greater comfort. So again, making that translation from features to benefits, the certification package also includes a completed appraisal addendum that we have a licensing agreement with the Appraisal Institute to complete their green and energy efficient appraisal addendum as an independent third party.

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And this is the information that the appraiser can then use to assign additional value to the house for being high performing. But don’t stop there, okay. We also have a full marketing package for the real estate agent. That includes everything from an MLS listing report. So the agents know exactly what data fields to check off in the MLS and a full marketing package.

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And I should note that we have actual documentation that pro works. We see, on average, a 5% premium for homes that have our third party certification. And we documented that in two. Not one, but two independent appraisal studies written by appraisers using a paired sales analysis. Okay, so it’s all good stuff, but it’s very comprehensive. Yeah. So it sounds like a lot of this is really kind of geared towards, you know, the resale of the home.

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Like the house is going to appraise for more. Right. And then and that’s obviously going to make the house hopefully because you’re also putting in, some data about the features of this home, the, health and comfort and efficiency improving features of this home. It’s going to make that house number one appraised for more like you’re saying, as well as make it more marketable.

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It’s going to sell faster probably as well, right? Yes. Yes it does. Yeah. And but that’s kind of on the resale market as a contractor as we all kind of like. Well everybody says they’re going to move, but not everybody typically does move. But the idea is I think from a contractor’s perspective. Let’s talk a little bit about what the benefit of that report and that certification is to the contractor.

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In this moment where a customer isn’t looking to sell their house. Yeah. Yeah. So as a contractor, I’m guessing that you probably care about differentiation. What we hear from the network contractors that we do business with is that they lose half to two thirds of their business to what we affectionately refer to in the industry as the two trucks and a truck, or a Dan and a van that show up with their booties on and their truck wrap and then proceed to undersell you.

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Because they’re putting lower quality equipment and they do a lesser quality installation. So we only work with the best contractors in the industry. We take the accreditation seriously for contractors to even be in the network. Just because you have a credit card doesn’t mean you get to play. So for those high quality businesses that do meet our standards and do third parties certify their work, they get differentiation in that sales conversation.

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And it goes something like this. Miss Jones, we’re so confident in the quality of our work that we third parties certify every installation that we do. And I recognize you make it multiple bids. I encourage you to ask any other company that comes in here, if they have that confidence in the quality of their work, to help you turn this home improvement into a home investment with the return on that investment, should you decide to sell or refinance down the road.

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Now, I love that, and because we talk about it in the home, as far as the importance of number one pulling a permit right? That’s because in order to get a permit, you have to be licensed and insured, and then you close out that permit with a third party inspection. However, you’re getting a third party certification and that the work that you did meets a certain standard.

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And most importantly, I think if you didn’t really pick on what a pick up on what Cynthia said in that moment, she said you actually had to be hands selected. Not everybody in the market can even qualify. And so again, you get to push push this out there as a as a talking point for yourself that, hey, there’s other people out there, I don’t have to bash anybody.

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But guess what? They weren’t worthy. Right. And you are. So that’s important because ultimately, at the end of the day, that’s going to help you. I think, close more business. Right. You get more jobs, are going to connect with more people. You can probably have a higher average ticket, right? Yes. You’re going to probably get better reviews and probably some more referrals become that expert in that marketplace.

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Is that fair statement? Oh, it’s absolutely fair. Those are exactly the bullet points that that we talked to contractors about. So on average, we see a 5 to 10% increase in close rates on average a 15% increase in ticket size. Wow. And we love it when we get that, customer review that talks about how my contractor offered to certify my work.

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We also love it when we get inbound, from contractors that are interested in working with Pearl because they just lost a deal to someone who could third party certified their work and as well. And if and when they ultimately, like I say, do sell this house. You know, the you know, the work that they paid for now basically will impact that resale and marketability of that particular house and gives you that credibility as a consumer who’s selling your house, that your house is better and different than your neighbor who might be for sale as well?

00;09;35;19 – 00;10;10;28

Absolutely. And you just made me think about another benefit that I would really want to mention, and that is that every customer that gets a third party certification from Pearl has access to their homes profile through our consumer facing app called Green Door, and they are forever connected to you as the contractor of Record in Green Door. So if they go back into their homes profile and they’re thinking about doing some additional improvements, we will message to them, hey, congratulations, you’re already working with a contractor that can replace your water heater or that can do your installation.

00;10;11;05 – 00;10;34;26

So it reinforces that relationship that the contractor has with the customer so that they can have greater lifetime value out of that relationship. And if you could I mean, we’re dealing with a kind of a very unique place and time in this moment is we have this interesting program coming along or the Inflation Reduction Act. So talk about how Pearl certification and working with Pro certification can kind of prepare contractors as well as their customers for the Inflation Reduction Act.

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Sure. So within the Inflation Reduction Act, there’s a particular rebate program called homes. It’s a whole House rebate program. It is a requirement of that program that a third party certification is delivered to the homeowner on behalf of the contractor, capturing the information on that installation to help improve the home’s value. Like that’s almost verbatim the language from the legislation.

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So we do that today. If you, as a contractor, want to get ahead of that program coming out, you want to establish yourself as a market leader. You can third party certify your work today and be ready to go when the homes rebate program rolls out. There will probably be I can’t say this for certain, but there will probably be more than one certification that’s allowed.

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We’re not trying to say that we have, you know, a, a mandate or anything like that. But what I can say is that we do it today. We do it well, and the contractors are seeing benefit. If you want to get ahead of that. You can reach out and talk to us. Yeah. Hi, I’m Daryl, you shensky.

00;11;38;26 – 00;12;04;11

I am Bob Larkin. Many of our contractors meet with us monthly. And you. Chances are I’ve met with us monthly. We found that members have deeper and greater needs. So we came up with next level coaching, which is we meet a lot more often. And there is accountability to deal with some of the issues of money growth, finding employees and having an exit strategy to get off this roller coaster.

00;12;04;12 – 00;12;31;12

These are the issues the contractors want answers to, and we can provide those answers. The next level coaching. When you join next level coaching, you’re going to find solutions that are easy to implement and logical. Most importantly, we hold you accountable to specifics. We’re going to meet twice a month and have specific to do’s. And with those specific to do’s, we’re going to discuss and dive into your financials in a very granular way.

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You’re going to have a clear budget will be able to establish pricing. We’re going to help you create leadership programs to build your people. We’re going to help you find people. You may think of differing ways to engage employees that will keep them more involved by joining next level coaching. So if you’re interested in making more money, growing your company, finding good employees, and developing them as a strategy, give Dale on our call.

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We’ll be happy to talk to you about next level coaching, and we’re going to see you on the next level. And that’s an opportunity, right? Certainly. But what are some of the challenges, some of the biggest challenges that you see Hvac and solar contractors and maybe even those that do other energy efficiency upgrades such as insulation and air sealing, what are some of the biggest challenges that they face that Perl can help with?

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Oh boy. Well, I think that one of the things that we provide contractors is some really good Intel on marketing and messaging. So we have many thousands of homeowners that are in our Green Door app. Some are finding their way there. You know, they’re having to do with the contractor because we do market directly to homeowners as well.

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And so we can we can help contractors kind of craft what their messaging should be for their, for their customers with a greater, you know, sort of nuance around it. We have also developed, or in the process of developing some software that’s related to the Inflation Reduction Act that will make the collection of data and the reporting and things like that a lot simpler and easier for the contractor.

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How can we remove some of those friction and some of those pain points? So, as those programs get up and rolling, we too will get up and rolling with the software that currently, is in build to help contractors take advantage of that program in a more efficient manner. Gotcha. I know some of the information you have out there, as well as tools that are great tools for marketing, as well as tools that your CSRs, your technicians and salespeople can use on in the home as well.

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Yep, yep. We have scripts. We have FAQs. We have marketing materials. It’s a whole bunch of tools, really, to make a contractor’s life easier and also keep them on the cutting edge of what’s happening, in their market and in particular with the Inflation Reduction Act. And we actually have a module, you know, in a learning management system online idea in which we basically looked at a deep, deep dive on the Inflation Reduction Act and all the things you need to do within your business.

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Yep. That’s right. Check it out. Now, I did say that not everybody is worthy. Right. And so you want to know if you are worthy and if you’re not, maybe you can make it a goal to become worthy of being a pro certified contractor. So talk to me a little bit about the qualifications of what your typical Perl certified contractor looks like.

00;15;09;29 – 00;15;33;13

Sure. So typically a pro certified contractors are doing 3 million and up in annual revenue. They have a CRM in place, so they’re tracking their customers. They have a four star or better ranking on the consumer social channels. You know, Google and things like that. Also we look at what accreditations the contractors have in place.

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So do you have a certified technician, for example, on staff? We do talk to contractors about what typical installations they do, what additional professional development they provide for their teams. And we look at what community engagement and service they have. We have definitely found that companies which take their reputations seriously and give back to the community are ones that typically take greater care on how they do the installation and how they treat their customers.

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So, we have sort of a checklist of things that we we work into our sales conversations to identify whether or not we’re a good fit for that company, and whether or not that company is a good fit for Perl. And one of the thing I’ll mention is that we have, APIs in place, and or we can take an export out of the contractors CRM for data, because one of the things we learned really early on is that contractors don’t have time to do double entry on different softwares.

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So we work with the tool that you already have in place and can and can pull the certification data that we need out of that to make your lives much simpler. And so that you talked about APIs, I my next question is what products has pro developed in the API, which is an API program interface to your CRM software, which allows you to extract that data.

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So you’re not doing that entry. You know what other tools that you have do you have that can help contractors that you guys have developed. So aside from the the certification app, if you are a solar contractor, we have what’s known as a solar equity calculator. And that creates a discounted cash flow value that an appraiser can use when they’re trying to figure out, okay, what’s the system worth?

00;17;15;25 – 00;17;40;09

We are developing an energy efficiency equity calculator that we expect to launch by the end of 2024. So we’ll be able to create that, that discounted cash flow value for the contractor as well, along with projected energy savings. And a way for that contractor to really message potential additional home value with the higher efficiency package. I think those are two important tools.

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And you mentioned the green Door. Talk to me a little bit more about what that is and what does that user experience about. So Green Door is our consumer facing app. It’s designed to help a homeowner manage, maintain and improve their house. We recognize that most homeowners do home energy upgrades as kind of a slow motion remodel. It may not be again, vertically integrated contractor $50,000 upgrade all in one package.

00;18;04;29 – 00;18;31;28

So maybe I come in to pro certification because, I’ve done a solar installation and now I see that my energy bill hasn’t gone completely down all the way. Well, maybe it’s because you have an inefficient system and you need to be thinking about insulation or air sealing or Hvac replacement. So within green door, we can create a customized home investment plan, which is basically that homeowners roadmap to certification.

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And and it talks to them about what sorts of improvements they should be thinking about and why. And that’s a really important tool for the homeowner to continue on their home improvement journey. And it brings them back to contractors and network. Yeah. In addition, we have a rebate finder and information about tax credits. So if you put in, you don’t even need to put in your home zip code.

00;18;53;28 – 00;19;15;05

It’s customized to the user. We will tell you what rebates would apply to the home investment plan that we’ve created, as well as what tax credits you can take advantage of. So there’s a whole bunch of information in in Green Door that really helps the homeowner get educated and ultimately, again, reinforces their relationship to the contractor that they’ve done business with.

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Yeah. And and for the new members that are members of AIA, you know, and have come through the classes, sales classes, you hear me always talk about how to be compelling, and I talk about, you know, it’s math facts, science data, it’s evidence based approach to what it is that you do. It’s no longer just your opinion.

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And now you’ve got this third party that’s standing behind you, that’s saying, yes, you’re a good resource because you’re doing the right things the right way. And, and they’re basically certifying that your work is credible. So again, that’s a way to be compelling when you talk about when we talk about the sales execution class that we’ve, we’ve done.

00;19;52;09 – 00;20;19;29

So all that kind of leads us to basically what you’re saying here is, in essence, we’re putting a score on a house, right? To some extent. Right? We’re we’re rating a home and giving it a grade, if you will. So talk to me a little bit about how does home scoring or, grading work. So we have a point system that, assigns points to individual features based upon how much they contribute to the home’s energy efficiency or indoor air quality or comfort.

00;20;20;01 – 00;20;38;24

We do certify the solar, but but we don’t have points assigned for the solar. Our our concern in getting out the gate was that folks could slap a six kilowatt system on the roof and hit like a platinum certification because they were using that much less energy. But the rest of the house still had all kinds of problems.

00;20;38;27 – 00;21;02;07

So we really wanted to make sure that we we do this and then produce. So let’s make sure that we address the various systems in the house. In addition to that, though, we have an electrification badge. That is something that we’ve recently launched. And, we think that’s going to be powerful in conjunction with the electrification rebate program that will be coming out from the Inflation Reduction Act.

00;21;02;09 – 00;21;30;26

We also are developing a resilience certification, which we expect to launch in the beginning of next year. And we look to partner with either some folks in the insurance or in the mortgage industry around that, because you’re seeing a lot of a lot of pushback happening now in those two industries for homes that are in, weather related, I should say risk areas, whether it’s wildfires in California or flooding in Florida.

00;21;30;26 – 00;21;51;25

So we do think that there’s an important role for a resilient certification to play as well. So, yeah, I think our certification is meant to be comprehensive, but ultimately the focus is on the performance features of the house, whether it’s energy, water, durability, etc.. Yeah. And I think it’s important. And I want to make sure that we have an opportunity to clarify this.

00;21;51;25 – 00;22;10;02

You spoke a moment ago about how this is, you know, this type of work is not something that most homeowners, can either afford or are going to even do all at once. Right? Even though there are incentives out there and special financing programs as well to kind of support contractors and homeowners in this endeavor, this is something that probably is going to take place over time, right?

00;22;10;03 – 00;22;28;22

Yep. And I use the term build the perfect home environment over time, whatever that may mean to this particular consumer. You know, we’re basically talking about let’s do a little bit today. Maybe we take a baby step and we go and address maybe air quality, maybe it’s it’s, you know, building efficiency and then it’s Hvac and then it’s solar and then it’s water heating and and so forth and so on.

00;22;28;22 – 00;22;48;23

Right. And so you can kind of build this, you know, perfect home environment over time. And I think that’s an important because again, I think sometimes, when we think in certification, it’s like I did what I did and I got certified and I’m done. Right. And this is something that a homeowner can actually add on an upgrade over time.

00;22;48;23 – 00;23;18;16

Right, 100%. And I think that’s the main differentiation for what we provide versus a score or say, even a certification for new construction. It is more like a label, like it’s like a one and done. And that’s great if you’re starting from scratch, you know, ground up with new construction. But given the variety of building stock we have out there with existing homes and the different economic situations that those owners are in, it may take, you know, multiple goes at that apple, you know, before we actually get to the high performing home.

00;23;18;23 – 00;23;39;22

And I should note that the data that we have on the home is, is we guard that data jealously. We recognize that contractors proprietary data around their customers and their work needs to stay within their ecosystem. So we have a lot of checks and balances in place to ensure that you stay connected to your customer, and that information doesn’t go somewhere else.

00;23;39;24 – 00;23;58;20

But a benefit, again in Green Door is that if that homeowner sells, the new buyer of the home, then can take possession of that home’s record and guess who’s connected to it? You are right. So maybe you get to keep a customer as they go to a new house, and you get to keep your relationship with that home and the equipment as a new buyer comes in.

00;23;58;23 – 00;24;23;17

Yeah. And I and I always tell my contractors are all certified, make sure you work with your homeowner customer right. When it comes time to sell, so that you provide them with some information that can lay out on the table in the house so that when people come walking through the house, you know, they’re fully aware of not just what the realtor is telling them, but there’s some information out there about the work that you’ve done, where you’ve left off, and how this homeowner of this home might actually get engaged in this.

00;24;23;17 – 00;24;42;07

Because I think there’s a a gamification element to this. Yes. Some experience. Yeah. With that point system, there is definitely, definitely a gamification element. And we have a lot of, you know, sort of prompts built into the green door experience that is, you know, encouraging homeowners to take that next step and get more stuff. Yeah. And I think that is really appealing to the millennials and Gen Z.

00;24;42;07 – 00;25;02;06

Is this gamification on my goodness, I’m a I’m a Gen Xer myself and baby boomers. And we get we got to get into a little bit of the gamification, but not to the level that these next two generations are and will become. So I think that’s important. So kind of evolving from the direct with the homeowner. How are you embracing and engaging with the real estate, you know, kind of community.

00;25;02;08 – 00;25;25;28

So our brand promise is that with third party certification, you can in fact, capture more value from these home investments that you’re making. And part of the way that we get there is by making sure that those within the real estate community are educated on how to use the certification report and the appraisal addendum. And we have a whole division that’s devoted to our relationship with the real estate community.

00;25;26;00 – 00;25;58;19

You know, in addition, as a company, we participated in the National Association of Realtors Technology Accelerator, and now we actually made an investment in our company at the time because they valued the benefits. We were going to bring their agents by making their lives easier and helping them do a more professional job and selling high performing homes. So we have a unique relationship with the real estate community, and we have customer service folks that connect your customers to a qualified real estate agent in your market to help your customer sell the house.

00;25;58;21 – 00;26;20;05

We can do trainings for real estate agents that you may have a business relationship with. Maybe you pass some leads back and forth with that company. So there’s a lot of ways that we support not only the customers that contractors have, but the contractors themselves in getting more B2B synergies going with the real estate community. Okay, great.

00;26;20;12 – 00;26;41;09

Well, as you can see there, that’s a lot of information about certification. And as you can understand, no surprise and no secret as to why Edge and Contract University partnered with Pro certification because our mission at edge well over 90 years has been to promote energy efficiency into the marketplace. And we found, obviously no better partner to do that when than with Perl certification.

00;26;41;09 – 00;27;07;18

So as we kind of close this out, Cynthia, any any questions I forgot to ask. Any last parting comments? You think it’s important for our members to know about Perl? I guess I would just say that we take very seriously the success that our customers have leveraging certification in their business. So it’s not like we just turn on an instance of a software license and say, go forth, God bless.

00;27;07;18 – 00;27;28;26

We have a customer service team that will work with you, your marketing team. You know, we’ll work with making sure we get the data set up effectively in terms of that, that transfer. So I just want contractors to understand that we’ll we’ll make this easy on you. This is not like a huge lift. And we really value the success that you have with it.

00;27;28;26 – 00;27;47;07

So we’re going to be there to support you all the way. I think it’s important for folks to know that both from a sales training to marketing to a data, we got you. We’re going to help you. We’re going to help you grow. Yeah. And I can I can echo that because, I’ve, I’ve worked with the organization, I’ve worked with some of their contractors as well.

00;27;47;07 – 00;28;19;09

And they, they make sure that you completely understand it because it’s not about getting you signed up for pro certification. It’s that throughput to the customer. Because if they’re not, you know, helping you engage the customer, then they’re not successful in their ultimate mission, which is that engaging aim of making sure that this stock of housing that’s out there is doing what it’s supposed to do, that we are saving, you know, energy that we are reducing the load on the utilities, that we are reducing carbon emissions, and we are giving homeowners a better experience and that customers are getting actually what they pay for.

00;28;19;11 – 00;28;38;01

And the best contractors in the market. You we know sometimes when the customer goes and does business with somebody else for less, they don’t even get what they’re paying for, even though it is less. Yeah. And you’re sometimes more because you’re different and you’re better and you’re offering a better solution. And therefore, yes, it is a larger price point.

00;28;38;08 – 00;28;56;29

But now you have a way to basically make that value visible in the customer’s eyes. And I think that’s what allows most contractors to do. Yeah. So that being said, if you’re looking for more information about Perl certification, where can they learn about you? I think the easiest thing to do would be to go to our website, Perl certification.com.

00;28;57;01 – 00;29;13;09

We have a whole section in there for contractors, and you can now fill out a quick form. And one of our sales reps would be happy to be in touch with you. And, I just want to I want to say, too, that we’re very cost effective. This is not a high ticket item on a per install basis.

00;29;13;11 – 00;29;38;17

It’s basically a rounding error for most of the jobs that you’re doing. So we are affordable, we boost your close rates and we help you increase your ticket size. You should definitely be talking to us, no doubt. Definitely pays for itself, in all facets of your business. So that being said, you also continue to see more resources, more content kind of put out in a partnership way between edge and pro as we go forward.

00;29;38;17 – 00;29;57;24

So we look forward to helping you grow your business as a member. You are the mission. That’s why we’re here and we’re happy to be joining, joined on this journey with Pro certification. So thank you very much. Thank you. Thanks so much. Ju. Until next time. Awesome content right there from Mr. Drew Cameron. As usual, be sure to share this on Facebook.

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