Closing Rate Dropping

GoodPainter

My closing rate has been dropping.

It can be frome many things/factors

I have jumped my price to $40/50 int/ext from $30/40
and I have been adding all the extras rather than leaving them out

I Have been staying at estimates longer and doing a little too much blabbing
with the cust. saying yeah we like the price, we will give ya a call soon

I have started to say I am booked and busy, Please call asap to get scheduled sooner

I said please visit my website to see my pics of previous jobs(so I dont have to carry the pict book)

My time spent at an estimate hasnt changed(avg 1-1.5hrs) still way too long for me

I get most of my work from door to door flyers(no knocks)

I am thinkn of sending a postcard 1-3 days later after an est to remind
saying.... Thankyou for having us bid job, please respond quik to get u scheduled fast ...yada yada or similar

My closing rate has dropped

this is my 1st yr to the single day.

should I lower my price? or should I just do more =estimates?

either way dont matter but what do you think
Quit job 6+months ago ----This will be my first winter painting w/o job
I am Int specialist with alot of positive thoughts
I have wife and two kids, my painting brings the only income
I have 1-2 full time guys working with me all the time
just getting settled on the OH and per/hr amount

Please let me know any thoughts

__________________
Robert Good
It's Your Life-Make Fun Of It!
http://www.robertgoodpainting.com

GoodPainter

Is the vacation time innerferring or what?

Most of my clients have mentioned this,
The higher $$ (over $3k) have been closing but whats up with the
1-2 room repaints ($500-2000)

Will ==I be receiving a lot of calls after a while
they did say they like the price and are very happy to hear and see my work?

fourth generation painter and fabulous pictures.

__________________
Robert Good
It's Your Life-Make Fun Of It!
http://www.robertgoodpainting.com

PlainPainter

you wanna know a real good way to stay afloat? Get a bunch of inside work lined up - and when you're at the point you think you can finish the exterior season with one guy - lay off the other guy - then lay off your last guy before you start doing any interior. Sounds selfish - I know - but my life improved drastically when I layed off my last guy - now I make much more money - you have a wife and kids to look after. Everyone for himself!

Da Vinci

Whenever you increase your rates, it takes awhile for the market to catch up with you. What I mean by that is if you have a customer base that always paid you $40 and you've increased to $50, you automatically lose some clients that can no longer afford you. Their referrals often dry up too, because they were all in the same price point. It takes a little time to re-establish higher levels of work and referrals, but once you close enough of them you will be increasing your closing rates because referrals are from people that have paid a higher price.

Bay Area Painting Company

welovepainting

when I hear a customer say give me a good price do a great job I will recomend you to many people....that is BS. Honestly I can care less if I ever hear from them again. And to add to that the people that say that dont follow through. I would recommend to do your job at the price it cost, and to make a profit... Always do whats right and treat the customer fair even if your prices need to go up , or you take a loss in rare situations ( hell I get 5% increases a year from SW ever year for six years straight). The client will pay dont think they wont enen in tought times. Test your limits see how much you can charge, not every customer is the same ... feel them out, ask alot of questions.

__________________
House Painters Commercial Painting Contractors Cleveland, Ohio
http://www.welovepainting.com
http://www.cleveland-ohio-painting-contractor.com

BT006

Price is more an issue in the mind of the saleperson than with the customer in most cases. If you know you are bidding on the high side then you need to sell the value of your product. We use *** super paint. We will be priming and putting two coats on xx and this is why. We will be prepping the area like this which will make the job last xx years and will save you on your energy bills.

Don't rely on your website - use your portfolio book (and I say that as an owner of a web development company). Show pictures of the prep work you will be doing. Educate the consumer. Keep the chat to a reasonable minimum - focus on their education and asking them what they want and need (actually reverse that order - find out what they want and need then tailor your presentation to fit). Find out what their budget is - just nicely ask like you fully expect an honest answer. You will usually get it.

You have been trying to create a sense of urgency (we're booked) but if you don't do it right it will backfire. If it doesn't seem to be working try a different tack. Lowering your prices isn't the answer. Keep working on your sales techniques - which should mostly consist of finding out what they want / need and then solving thier problem. For small jobs 1.5 hours might be too long but not for larger jobs. Write out 20 reasons they should buy from you and go over every one of them in your presentation.

Try not to be stressed and don't act even the slightest bit desperate. You are very eager for their work but you don't NEED it. Project an aura of success - but be sincere. Not easy. Finally - yes - more appointments usually equals more sales.

welovepainting

I rely on prehistroic. and historic data. ( emplyee's or subs), performance, reliabiltity, dedication, and comitment. Who in their right mind would rely on marketing materiral?

__________________
House Painters Commercial Painting Contractors Cleveland, Ohio
http://www.welovepainting.com
http://www.cleveland-ohio-painting-contractor.com

Flacan

welove,

yer on sumthin'?

I've been asked that, although I wasn't, so don't take it personal.

__________________
Raimo Kumpulainen
Those who don't remember the past, are condemned to repeat it.

PressurePros

Why would you ask if you should lower your price (no) if customers are saying "we like your price" ?

You have to understand one thing.. you raised your prices 30%. You now only need half as much work to make the same net profit. Your closing rate is supposed to fall. Do you have effective closes? Are you asking for the sale?

Other good points brought up about keeping dialogue open but it doesn't sound like you need help with that. What are you talking about for an hour and a half? I'm not saying that is too long if you are "fact finding" and then selling the benefits of your service. But if you are using that time to tell the customer about yourself and your personal life.. don't do that. I interviewed a landscaper to do some work for me and he thought I was his counselor. it was a complete turnoff. told him the same thing "I like your price, let me talk it over with the wife" and sent him on his way.

__________________
Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

Brian

I agree with Ken.

I love it when a customer will engage me in dialogue. I have certain points that I want to make regarding the products I've proposed, my company, the value we offer, etc. Equally, if not more, important, is asking questions and listening to the answers.

For example: Why do you want to paint your house? What products are you considering? Have you ever hired a professional painting contractor before? And a lot more. The answers to these questions tell me a lot-- the customer's motivations, their hot buttons, what they really want or need, etc. I can then address those issues.

It sounds like you are doing a lot of the right things. Richard Kaller used to always say that if you do the right things, good results will eventually materialize. I agree.

Brian Phillips

__________________
Houston Interior Painting
Houston Exterior Painting
Houston Painting Contractor

Chris G

That's what stood out the most to me in your post. Unless painting is different than most trades, you should be getting more work though referrals, shouldn't you?

Do you have good relationships with your past clients?

Wolverine-Eric

I've got to wonder if leaving the picture book at home is a good move... I think that sometimes we need to remember 2 famous quotes:

A picture is worth a thousand words
People take the path of least resistance

How many of your customers are actually going to GO to the website and look?

I would be bringing picture books with huge 8x10 (before and after) pictures for them to see so that I could help them visualize what their house is going to look like when you are though...

__________________
Some things just shouldn't be mixed... like... Kids & Paint

http://www.wolverinecoatings.com/Pic...kids&paint.gif

GoodPainter

Hey guys,

Thanks for all the good help and responses.
I think after taking a big look at the picture it adds up to
pictures, and since I just started my rate hasnt dropped it
just found a happy medium at or above 50%
after the first 20 est. I closed over 15 of em and since then
I just have been getting a variety so the rate will change.

I admit there is alot of small talk with the HO since I live in a small
town we find out we know each other somehow. ((i will put and end to that)

I will continue to break out the pic book and show em my work.

I am booked out about 3 months and thats for me working alone,
I do have 1 full timer(he sent out letters today) and a few partimers
here/there. I am getting ready to tell the full timer that work will be scarce come mid-late OCT
(I already cut his hours from 40 to 25-30/wk)

Referrals are a few only because my custome base is around 50 +/-
since I only started one year ago form today

My name is def out there and I am receiving alot of calls.

Brian, I will start to heavily use the tactics you mentioned.

My price will continue to rise once I buy my new pickup and enclosed trailer
(I will be paying cash so no worry about closing rate dropping)

I have sent out referral letter to about 30 previous cust, giving Gift cert out
if they refer (that was month+ ago and no one yet)
I was told it was an excellent letter though, and all of my cust. are very pleased with my work

I had a lady call today and she was shocked that I was booked until late november saying "well I dont even know if i can afford it" but she still wants an
estimate? Ok fine

I will do more number studying and let you know what happens when I
raise my prices again ( very soon since I am getting booked easily)
maybe in a month?


Thanks for your help,

__________________
Robert Good
It's Your Life-Make Fun Of It!
http://www.robertgoodpainting.com