Dreams Can Come True

A#1 Services Has Grown in Four Years from $80,000 in Sales to $4 Million Thanks to Owners Daniel & Delana Castillo, Gonzalo Zapata & Cara Goldberg’s Commitment to Hiring the Right People, Nurturing Their Abilities & Inspiring Them to Reach & Achieve Their Dreams

by Bob Houchin

“You have to be able to talk about your dreams. To hear them. You have to be able to feel them. If you don’t speak about them, they don’t come true. When you share them, they can become a reality.”

Those are the impassioned words of Daniel Castillo, owner of A#1 Services Heating & Air Conditioning in Palm Desert, California. “Here, we talk about our vision with our people, what we want for our company—and them,” he continued. “We want to make money, sure. But we really want to see other people grow, that’s our real vision.”

“We want to see the families of the people that work for us prosper,” Gonzalo Zapata added. Gonz, as he’s affectionately known, is another member of the ownership quartet at A#1, along with Daniel’s wife, Delana Castillo, and Daniel’s aunt, Cara Goldberg.

“Daniel and I came from a company when we would get slow, they kept you home and gave the guys making less hourly the work,” Gonz continued. “That’s no way to make a living. We wanted to treat people better.”

“We treat people like we treat each other, like family,” Delana quickly interjected.

This culture of family oozes from their words; it’s not cheap lip service spoken on for the benefit of an interview. These four believe it. It drives them. It’s that culture which has propelled A#1 Services’ sales from $80,000 in 2013 to a projected $4 Million by the end of 2017, a 500 percent increase in only four years.

“I come in very early in the morning before all the guys get here. I pray for them. As we’ve grown, our responsibilities have increased. We have a lot of employees and this company affects a lot of lives,” Cara thoughtfully reflected. “We want to be able to continue to serve them to the best of our abilities.”

Given the company’s meteoric rise, it’s almost shocking to think about A#1 Services’ beginnings—just two friends and a truck.

Two Friends & a Truck

Zipping along I-10 or Highway 111 in a little, black 2000 Ford Ranger, Daniel and Gonz could often be found hustling back and forth between jobs. These two somehow, someway, ran service calls simultaneously while sharing the vehicle. “Oh yeah, they were riding together for years,” Delana said while breaking into a subtle laugh. “Dispatching them wasn’t easy! It was pretty funny.”

“Hey, hey! We know how to make a dollar out of a dime!” Daniel said as he burst into laughter.

It was dollars that Daniel and Gonz needed. As Gonz insinuated earlier, the partners had spent the previous eight years working for another contractor. Daniel did HVAC work, and Gonz plumbing. By 2007, the recession had seemingly strangled all business from the Coachella Valley. Daniel and Gonz spent more time in their own homes than with customers, averaging only 10 to 15 hours a week. The two had always talked about doing something on their own. The economy and their employer forced them to make the jump.

Service calls managed to find them, thanks to connections and hustle. “Word of mouth started getting bigger and bigger,” Delana explained. “I was a stay-at-home mom, but I had to start answering the phones. We had a little office in our house. I’d be texting the guys their next calls and customers’ information. We got so busy, so fast.”

“We’ve always been 24 hours, too. [Delana] was good at keeping me out all night!” Daniel said with a chuckle. “We did what we had to get things rolling. Hard work has never scared us.”

Delana spearheaded the effort to formalize the company, which meant a name. “We brainstormed a lot of good names. When we went to get our license, all our names had been taken,” she shared. “In our small valley, there’s over 500 licensed contractors for A/C alone. That’s not including plumbers. A#1 was sort of our last resort. Now we’re in the process of a gradual rebrand to A#1 Service Heroes. Eventually, we’ll drop the A#1.”

Name in place, Delana went about spreading A#1 Services’ brand throughout the Valley as best she could. “I created our first website and did all the advertising myself in those early days. I spent hours upon hours creating an online presence for us. It took that kind of time because we didn’t have the money to do it,” Delana explained.

“After a number of years, we realized we had no idea how to structure a business. We didn’t have finance or tax backgrounds. That’s why we reached out to Daniel’s Aunt Cara. We said to her, ‘What do we need to do?’ She ended up being the perfect fit.”

Aunt Cara Arrives

Aunt Cara anticipated her part-time role with the company would maybe last a summer. She was in between jobs and figured on finding something in accounting or finance soon. Cara quickly grew to understand the potential in A#1 Services, even though it only generated $80,000 in revenue at the time. She could see the potential in the people. Cara chose to stay with A#1 Service as a full partner.

“I have to tell you, my very first meeting with them was in August of 2013 at a children’s playroom in a Burger King. I see them pull up in that 2000 Ranger! I thought, ‘Oh, my goodness!’” Cara said with a snicker. “Pretty quickly I realized this could be a very profitable business. When you see everyone’s work ethic and the quality of the guys’ work, I knew this could be something special. We had to get some infrastructure in place.” Among the first infrastructural moves included protecting the principals by incorporating the company.

“I should probably interject something,” Cara said. “Daniel and Delana lived in Texas for a bit; all of our families were there for a while. Daniel worked for an AirTime company there. He loved it. He loved the structure, the model, the ideals, how it was run. That’s what he wanted for us. It was his dream and goal.”

Only a month later Cara and Delana spent some time brainstorming about business, and in the background Daniel began not so subtly mentioning AirTime. “In my mind, I always felt like we should be a million-dollar business before joining. For some reason, Delana and I jumped online and saw that AirTime was having a [Profit Day] meeting in Vegas. I told Delana, ‘Oh, my gosh! It starts Thursday, let’s go!’” Cara said and laughed. “We drove out there knowing we were going to join.”

Profit Day didn’t leave the two disappointed. “I’ve been around small businesses, around the $10 million to $15 million range. I’ve learned that you should always have the mindset of being open to learn new things,” Cara explained. “I anticipated [at Profit Day] to be a lot about marketing and finding leads. It’s really about maximizing the potential of the current jobs you have. That really impressed me. I thought, let’s run with this.”

The ladies then found out the next bit of news: the next Executive Perspective meeting, where they would learn the bulk of the Success Group International system, was in four days; of course, it was across country in Sarasota, Florida. “Cara and I just signed up for it right then and there,” Delana said. “We came back, packed our bags, got tickets, and flew out.”

Make Things Happen

Delana and Cara left Executive Perspective ready and willing to make immediate changes to A#1 Services. “We didn’t have many employees, it was mostly us. We figured, let’s get as much of the business structured the way we want it,” Delana reasoned. “It will be easier to do it now than when we hire more people.”

Augmenting the company’s image was among the first adjustments. Today, the company utilizes truck wraps and a uniform service, but back then money was tight. They purchased Dickie shirts, which they embroidered, and work pants. Floor savers and red carpets for inside customers’ homes also became a part of the new A#1 Services’ image. “Delana really pushed a corporate image even in our first office, which I didn’t think we’d be in long,” Cara said. “She had it painted and looking sharp and clean. We felt like a professional company, even though we were small.”

Small also could be said of their service fee. Everyone agreed it needed to be elevated. “Before, we were trying to make a name for ourselves and didn’t charge much for it. We wanted to get in the door. We realized that’s not the proper way,” Delana admitted.

Pricing on service and replacement also needed to be higher. As part of the pricing overhaul, the company printed StraightForward Pricing® books and invoices, and they converted their service contracts, expanding their offerings and rebranding them as club memberships. “We used to feel like we had to be competitive with our pricing. AirTime made us realize it’s more about setting the price you want and backing it with value,” Cara stressed.

The additional value A#1 Services began offering included incorporating all the AirTime guarantees, including the 100 percent satisfaction guarantee. “We make sure the guys let the customers know about them. They don’t help you if you don’t sell them,” Delana said. “We assure our customers that we live by those guarantees, too—24 hours a day, 7 days a week.”

Shortly after attending Executive Perspective, Daniel and Gonz attended Success Group International training for both technicians and sales professionals. They have also sent other team members. “We were all about maximizing each call, that was our biggest thing back then. We had to make sure we knew how to do that,” Cara explained.

“We had no money. None of us were taking salaries. There wasn’t anyone we could go to for money. We had to make things happen. We had to be efficient,” Cara added. “That’s what we did.”

Selective Hiring Process

Business steadily began picking up for A#1 Services at the end of 2014 heading into 2015; so much so they needed to start hiring more technicians. Rather than bring aboard seasoned service techs, Daniel and Gonz hired recent graduates from the local technical school and trained them how to deliver proper service. “We’re actually on the school’s board now. They have an externship program and send us techs all the time so they can get their hours,” Cara shared.

“We’ve had quite a few externs over the years. We don’t hire all of them; we’re very selective,” Delana added. “We are very particular about their quality of work, the work ethic they must show, and how they fit in our team environment. They must meet all of that criteria to be hired.”

The A#1 Services interview process follows three steps. Technicians first point of contact is with Cara. She reviews applications looking for any red flags, namely people who’ve bounced around a lot. If they meet her approval, Daniel and Gonz will meet with an applicant for 15 minutes. If they don’t like the individuals, they feel homeowners will feel the same.

The final step is the most comprehensive. An applicant will meet with Cara and Delana. They ask the prospective employee to complete a background check, have a drug test, and complete a personality profile. “We’re obviously looking for the right type of attitude [in using the test],” Cara said. However, the test proves to be enlightening in other ways, too.

“We give them hardcopies to complete in the office. I like to see if they can complete the profile without asking me a bunch of questions. If they can do the test in 10 to 15 minutes, it tells me they’re pretty bright. It also shows they can follow directions and complete paperwork,” Cara said. “This entire hiring process can take two weeks, but it’s necessary.”

“Now, we’re getting more experienced technicians coming in,” Delana said. “Our guys have been the best [advocates] for us. They enjoy the family atmosphere and they tell their friends about it. I mean, we know our guys. We know their families. Their families know our kids.”

“Our vendors and the supply houses, they refer techs to us all the time because they see how happy our guys are,” Cara added. “They say to other techs, ‘Check out [A#1 Services]. It’s a great company that cares about its people.’”

We Give Our Customers the Best

Even when A#1 Services hires experienced technicians, they must earn the keys to a service vehicle by completing an onboarding process. “We have a mandatory training period so they learn exactly how we expect the job to be done—quality means everything to us,” Delana steadfastly stated.

A few years ago, every new technician rode along with either Daniel or Gonz. Today, new hires ride with two of the company’s most seasoned and trusted techs. They’re responsible for showing new technicians how the company expects repairs to be done and communicate with the customer. The experienced techs are in constant contact with Daniel and Gonz on the new techs’ progress.

“When they think they’re ready, [new technicians] must ride with Daniel or Gonz to determine if they’re ready to go out on their own,” Delana shared. “It can take up to a year, depending on experience. If they’re right out of school, that’s typical. For someone experienced, at least two weeks, usually a month. It really comes down to when we feel the quality of their workmanship is up to our standards. We believe in giving our customers the best.”

What’s trained in the truck is supported by what’s trained in the office. A#1 Services meets every single morning. Training includes lots of role-playing from how to greet customers to overcoming objections. They also cover any topics or red flags as they surface. Sessions usually last an hour. Even when slammed in the heart of the summer, A#1 Services makes time for at least 30 minutes of training every day.

Daniel works at least once or twice a week with A#1 Services’ comfort advisor and two selling technicians. They utilize a considerable amount of training from their equipment dealer. Their local rep even comes into the office frequently to assist.

A#1 Services puts a heavy emphasis on financing training for everyone. Upon starting, Cara gives technicians a cheat sheet on how to calculate dollar amounts with financing as a resource until they’re comfortable. Their financing vendor makes it a point to visit A#1 Services’ offices every Wednesday to provide additional support, including showing them how to use the app on their iPads to role-playing with individuals one-on-one.

Manage Workmanship & Customer Responses

These days Daniel and Gonz don’t run service calls regularly—unless a heatwave demands it. Today, the owners spend their time ensuring what they’ve trained their technicians to do is being executed in the field. They essentially act as field supervisors, assisting on jobs, offering insight, and more.

“We pop into jobs all the time checking to see how the guys are doing. If they have a technical question, we’re here for them,” Gonz said. “If it’s a bigger job on the plumbing side, I’ll be sure to be there. I know Daniel does the same. We are always making sure to hit our margins.”

The last six months, Daniel and Gonz have been quality controlling every installation of a new system. “Our [techs] have been doing so well and have been so busy, we didn’t want to take them off calls to do [the inspections],” Delana explained. “So, we thought, how many owners actually go to customers’ homes after the work is done? Not many. It’s a great chance to continue to build rapport and give it a little extra personal touch.”

Delana makes sure to put a personal touch on every online comment about A#1 Services, too. She personally responds to every review, good, bad, or in-between. With the company’s attention to detail, it’s no surprise almost all are very positive. Their invoicing software also automatically generates a survey that’s emailed to customers. Should a customer have an issue, it’s handled immediately.

“We direct Daniel or Gonz to take care of it as fast as possible,” Delana said. “We respect our customers’ homes and their time.”

Invest in Your People & Their Dreams

Expectations for employee performance are high at A#1 Services, but it’s a standard the team embraces. They’re willing to work those late-night emergencies or Saturday-afternoon calls because their employers recognize their contributions and reward them for their sacrifices. All four owners—Daniel, Gonz, Delana, and Cara—stress how much they value their people and how much they want for them and their families’ futures.

“We remember what it’s like to have too many people and everyone’s fighting for hours,” Delana said. “We’ve been careful not to overstaff. So, there are times when we have a lot of work, and there’s not a lot of time off. But in everything we do, we try and show everyone how much we appreciate them.”

A#1 Services hosts a Christmas party each year. The entire family is invited. Each child gets a present, and there are games and activities for them to enjoy. They also throw barbecues and organize bowling events; again, families are always invited. They’ve recently talked about doing paintball. “I think the guys just want to chase me,” Daniel said with a hearty laugh.

“We also like to celebrate birthdays,” Daniel continued. “We celebrated one this morning. We bring breakfast in for everybody. It’s a good way to start the day. We also do some dream-building every morning.”

Each morning for about 15 minutes, Daniel discusses the importance of dreams with the entire team. He makes everyone at A#1 Services talk about their dreams, too. “When you’re a kid, everyone had dreams. Often, people discourage those dreams. They say you can’t do this or that. Not here. We’re in the business of talking about our dreams and making them come true.”

The A#1 Services team has bought into Daniel’s message because they can see the differences in their lives since coming to work for the company. “Some of the guys when they started didn’t have two pennies,” Cara shared. “Now, you see them come in with their Starbucks and they have a bounce in their step. They’re excited. They’re happy.”

“We have a bunch of young guys who are having their first babies. They’re looking into buying their first home. That’s a big deal, to be able to buy a home in California. It’s so expensive. They’re participating in our 401K plan and saving money. They’re building futures,” she added.

“Then we have one guy whose dream is to buy a Lamborghini and live in a hotel,” Daniel said with another laugh. “But if that’s what he wants, we’ll help him get there.”

That’s precisely what A#1 Services is doing. Not only do they talk about dreams; they’re helping their people reach them, beyond simply paying them well. “We’ve helped guys get connected with the right people if they’re looking to buy a new car. For some of them, that’s a big first purchase,” Delana explained. “We have friends in real estate. We have them come in and talk to the guys about the housing market. What they need to do to move forward with a home purchase. How much money they should have saved, that way they’re ready.”

“The guys see how much we are concerned about their well-being,” Cara jumped in. “It’s so rewarding when you see them buy in. For example, we’re working to get health insurance now, and you hear them say to each other, ‘They’re getting us health insurance, so we have to make X, Y, and Z happen.’”

Investing in people extends beyond helping them attain material possessions, this is a fact the ownership team at A#1 Services recognizes. It entails being a support system often for employees, too. “One of our plumbers came in looking down. I read it right away. I talked with him about what was going on and talked to him throughout the day. He asked how I knew something was wrong. I told him that’s my job,” Daniel said plainly. “I know each of you guys. I’m watching you. I know when you’re up and when you’re down. I’m here to help you when you need it.”

A#1 Services’ Future

“Dan likes to do the dream stuff because that’s what he does and who he is,” Delana said with a smile. “He’s been talking about us becoming this big company with all these vehicles and this big beautiful office since we had one employee.”

It appears Daniel’s dreams are coming to fruition. Six months ago, A#1 Services moved into a new, beautiful 5,000-square-foot facility. The company now owns 12 vehicles, most of which are wrapped with the company’s new A#1 Service Heroes branding. Daniel, Gonz, Delana, and Cara have come a very long way with the business in only four short years: from meeting in Burger King playrooms to the guys sharing one service truck. “Hey, that Ranger is still making us money!” Daniel was quick to point out with a laugh.

Larger goals can be seen on the horizon. Recently, they invested in a Plumbers’ Success International membership. “We were on a waiting list. Once a membership opened up, we jumped on it,” Delana shared. “It’s helped with bundling, offering inspections, and overcoming objections.”

“We found out we were priced too low, too,” Gonz was quick to add.

A boost in plumbing revenue and profitability, combined with the ever-increasing air-conditioning business has A#1 Services poised to achieve even greater feats. The four owners can’t quite agree what their next benchmark should be. “My goal would be at least six million, if not eight, by 2020,” Cara said.

“Let’s do $10 million! Fifteen million even!” Daniel quickly interjected while laughing.

While Daniel may have been having some fun with projections, considering A#1 Services’ trajectory, those lofty numbers may be within reach. “Those goals are constantly changing, to be honest, because we keep growing so quickly. We have to keep resetting them,” Cara said.

“In all honestly, there’s plenty of time to dream about what we’re going to do [in terms of revenue] in the future. Right now, we’re focused on getting our guys up and running and helping them reach their dreams. If we do that, we know our time will come.”