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Average Closing Percentage

 
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Old 04-12-2019, 03:10 PM   #21
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Re: Average Closing Percentage


I will say that the only people who get a "discount" are family and good friends or organizations like Habitat for Humanity. They get it all for free, once we choose to do the job.

Charging family members can get messy real fast. Better to not do the job for them if I can't afford to do it pro Bono
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Old 04-12-2019, 05:08 PM   #22
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Re: Average Closing Percentage


Of the people who pay me to write a scope of work and selections Etc and what I call an agreement of Professional Services probably 99%. If the people who call maybe 5%, maybe 25 or 30% of the ones I actually go look at.

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Old 04-12-2019, 05:23 PM   #23
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Re: Average Closing Percentage


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I gave that up years ago, as well. For one, I think that it immediately cheapens myself and makes it obvious that we could have afforded to do the job for cheaper but overbid it. It sends the wrong message and immediately makes the deal about price. If a 5 or 10% discount is what got us the job, then I sold the thing wrong from the get go.

Secondly, my employees, my overhead, my mortgage company, Etc don't give me any discounts just because I gave a customer of mine a discount.


Pretty much the same thought process I had. Probably semantics, but I even switched from a discount for paying with cash/check to a service charge for cc payment
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Old 04-12-2019, 05:36 PM   #24
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Re: Average Closing Percentage


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Pretty much the same thought process I had. Probably semantics, but I even switched from a discount for paying with cash/check to a service charge for cc payment
Not just semantics to me. I totally get it. You get people in that discount mindset, and you might as well become the Walmart of contracting. We get hired all the time by past customers and they don't even ask our price. That's the end game.
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Old 04-12-2019, 05:56 PM   #25
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Re: Average Closing Percentage


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Charging family members can get messy real fast. Better to not do the job for them if I can't afford to do it pro Bono


Even pro bono for family can be messy, helped my brother in law put in a new deck, the old ledger wasn’t flashed, so replacing the ledger involved picking out new carpet .

I told my sister going in I was helping pro bono, but they because of scope creep they wanted me to bill them, and where offended when I wouldn’t, because they aren’t a charity.

No good deed I guess
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Old 04-12-2019, 07:37 PM   #26
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Re: Average Closing Percentage


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Originally Posted by pathbuilder View Post
Closing while there would be a dream. To be honest up front, I've never done that. Many times for new builds I can come up with the price on the spot in a few minutes. And it's accurate. Some times I share that with the homeowner, sometimes not.

Do homeowners really make a $20k decision on the spot? And that's great if some are able to do this once in a while, but can it be done systematically, 50% of the time as you've stated?

I can see it now..."let me think about it", "I need to talk to my wife", "I'm getting other quotes", "I need to see if I can get approved for financing", "I have one other quote and you're high". I've heard these all before.

I'd presume, to many of those, you could say I need to:
- Make sure husband and wife are there for the first meeting
- Offer financing
- During the pre-qualify phone call, what... tell them you're going to ask for their business during the first meeting? Prepare them for the impending ask?
- ?

But how would you go about, as you've stated, "if you ask for it". How do you ask for someone to make such a large investment on the spot? Do you offer a discount "today only you get 10% off if you sign now"? That would feel to me a hard sell, tricky sales tactics. What am I missing?

My normal Workflow:

Pre-qualify on phone, in person consult, email quote, call or email as followup every few days. Most of my sales, looking back, are with homeowners that followed up with me, not those that I've pestered every few days "hi, just following up as I haven't heard back".

I've heard different approaches:
- In-person 2nd meeting to give price (I'd feel, tho, I get the same responses: "ok thanks, this is higher than I thought a deck would cost, now I need multiple quotes")
- Call and give price over phone
- Ask the homeowner how they'd prefer to receive the quote (call or email)
- And now, from this thread, 50% of the time you should close a lead on the spot during the first meeting. Is closing on the first night for those with cheaper pricing? Those that target transactional sales, selling by price? Or can it be for those that are relational, not selling based on competitor pricing, but based on offering a value, and building that relationship?

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You're focusing only on price as your tool... Customers buy based on Company, Products, Service and Price... usually in that order... if you've established the first three and have a fit, the last is not as much of an issue... but you have to build it and set the expectations...

We do the exact opposite of what you're listing and the pricing strategy to close... we tell customers when we arrive that this isn't a high-pressure sales call like the may have experienced before or heard nightmares about; there's aren't going to be any sales gimmicks like "managers" or "first night" discounts... we've been doing this a long time and we know what's appropriate to charge without gouging customers... we've established our company to remove as much pricing fluff from the picture, so we can offer high-end products/service for a fair price... we manufacture many of the products we install so there's ONE place of responsibility if you ever have an issue during your warranty period... (here's the key) SO THIS WILL EITHER MAKE SENSE TO YOU OR IT WON'T... for most of our customers and referrals, it made sense, but don't expect a bunch of fake discounts where they raise the price only to lower it again or other sales gimmicks to try to get you to buy RIGHT NOW... you should KNOW your pricing and there shouldn't be any question of how high they raised the price only to lower it again... if what you offer makes sense, and is a fit, most people know right away... after all, how many 2 hours calls do you want to sit through if you've already found a match? If you're happy with our Company, the Products we offer and the Service we back it up with, the Price will be fair and most importantly it all makes sense and we can get the ball rolling... there's more to the meeting than that which builds upon it, but what you've done is removed the elephant from the room and they can now stop looking at you as a salesperson they've been instinctively taught to mistrust either through personal experience or nightmare stories to the craftsman you actually are... the rest of the meeting is a focus on that aspect expounding on Company, Product, Service and THEN Price...

Here's the crux of the whole thing... you're spending HOURS more EVERY WEEK driving back AFTER you have them in the hottest buying frame of mind, re-creating the wheel putting together a proposal, sending it out to the ether, not hearing back, going out for secondary appointments if you don't send it out to the ether... wouldn't you be better off to KNOW if you could close it that night and literally remove almost a days worth of time each week from the amount of appointments you are keeping? There will always be those who don't buy the first night for a variety of reasons, and those who will close after, but in our case, we close and remove from the market a rolling average of 33-42% the first night and another 15-20% or so in secondary closes..

But we'd close ZERO and remove ZERO from the market that night if we never asked... using those numbers, how much time and money could you save yourself?... I'm not there to entertain, or waste time... I'm there to make it EASY for them to say Yes so we can get the ball rolling, not give them reasons to "think it over" (although sometimes you just can't avoid it)...


P.S. - you NEVER sit a meeting unless all decision makers are there... that's a GUARANTEED waste of time and money...

Last edited by KAP; 04-12-2019 at 07:40 PM.
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Old 04-28-2019, 09:27 PM   #27
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Re: Average Closing Percentage


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Originally Posted by KAP View Post
Quote:
Originally Posted by pathbuilder View Post
I'm highly focused on what I call in person consultation to Sold ratio. So not leads to Sold ratio, or even qualified leads to Sold ratio. But projects I go out and spend 2 hours at talking with the homeowner, educating them, talking rough #s, and later email a formal quote.

My # is 30-40%. Cacluated by:

# of in-person consultations sold
divided by
(# of in-person consultations sold + # of in-person consultations lost)

I'd love to be at 50%, I admit an arbitrary #. Most times when I lose a job I'm told that I'm $2-$3k higher than the 2nd highest bid (new deck builds). To be honest, that's a super big bummer to me. I bum hard when I'm told that. When I thought I created a positive relationship with someone, just to be told they wanted the cheapest price. Ouch.

So I struggle with that a little. If I lowered my price by $3k, I'm barely making it. I'd rather close my doors and find a 9-5 job. But my in-person consultation sold ratio would probably be 50-75% if I lowered my pricing. But let's do the math:

It takes me 21 hours of my time to manage a deck project. It takes me 9 hours to sell one job (3 consultations at 3 hours each, including driving). So that's 30 hours.

If I can sell at a 50% rate, it would be 26 hours (20 hours + 6 hours to sell one job). At $3k less profit.

So now to make that loss of $3k profit, I need to work 78 hours (26 hours * 3 jobs).

Would I rather work 78 hours and make that $3k profit total, but have a 50% closing rate. Or, work 30 hours, still make that $3k profit, but have a 33% closing rate.

Let's do the math

$3,000/30 hours = $100/hr
$3,000/78 hours = $39/hr

I don't get why companies that are booking 8 weeks out for decks right now don't raise their pricing by $2k or $3k. Someone explain that to me. You're 8 weeks out, yet selling at high volume low margin, working your butt off. If we all did this, we'd all make more $ and stay just as busy.

I want to get my in-person consultation sold ratio higher, but not my decreasing my price $2-$3k.

By the way, if you were wondering: no, I do not make $3k profit on every job. These were rough #s for illustration. My definition of profit is also defined as gross profit, which includes covering for overhead costs, reserve account, my salary, and company profit. So not true profit.

Anyways, increase your price, make a higher margin, and work less.
You need to close the distance between initial consultation and closing... It's hard to understand how you're spending 2 hours with a customer for a new deck build and not able to walk out with an increased percentage of sales that night... IF you ask for it... they're at their peak buying interest at that point and as you've said, you've spent the time to build the relationship...

Final computer drawings, etc. can be completed and/or changed AFTER you've signed the contract if need be... I assume they've already got a visual with your hand drawing... They can made any changes they want, that's why we have Change Orders... the important thing is you've removed them from the market...

For a guy who seems to have a strong handle on your meeting/close numbers, I would think you'd be able to put together a price list for new deck builds, along with a contract that you can use that night and fill-in the numbers to take them off the market... I saw your other thread... have you considered that other companies maybe in fact, are closing them while there, and that's why you're not hearing back from them? They've made the choice and are moving on... How many two plus hour consultations do you think people want to sit through? In your case, you get them all hot and excited about your products/services, and then say "let me get back to you"...

Removing steps in the sales process will also allow you to have less meetings, etc. changing your profit needs (which should NOT include your salary - that should be in the Labor or Overhead numbers - Profit is what you pay your company)... but your Profit needs is determined by your business needs... that said, if you set yourself up to close that night, you've gone from needing 9 hours to 3... extrapolate that out, and even at a 40-50% close on the first night, I think you'll find it'll get you to your goal without sacrificing the needed Profit for your business...
This is the 3rd thing I've read in the last 5-7 days about closing the sale during the initial sales consultation is the best time to due so, and that the buyer is most involved and excited about the process. One on a website blog, another in a book, and now here.

Do a lot of you guys really do this? Do you just have set SQFT pricing, and add here or there for extra labor where needed? I am going to practice this with the customers I meet with this week, and pull away and put some numbers together, and see how close I get to actual price.
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Old 04-28-2019, 10:11 PM   #28
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Re: Average Closing Percentage


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This is the 3rd thing I've read in the last 5-7 days about closing the sale during the initial sales consultation is the best time to due so, and that the buyer is most involved and excited about the process. One on a website blog, another in a book, and now here.

Do a lot of you guys really do this? Do you just have set SQFT pricing, and add here or there for extra labor where needed? I am going to practice this with the customers I meet with this week, and pull away and put some numbers together, and see how close I get to actual price.
If you don't have a price-list or a very strong, in-depth, understanding of your numbers to be able to be even offer pricing to your customer the first night, that's the FIRST thing you should before attempting to close the first night.

Last thing you want to do is be successful on closing the first night but missing the mark on what you needed to actually charge... kinda' defeats the whole purpose...

As to a price-list, whether you realize it or not, you create one each time you generate a proposal. There are constants that you must cover (i.e. - hourly rate encompassing Labor and/or Overhead), materials (you can adjust pricing quarterly to allow for fluctuations but unless something unusual happens, generally stay within 10% (so charge by a factor of 1.1), and your profit. You should then be able to estimate your Labor hours there as you would normally, but can always multiply it by a factor of up to 1.25 until you get a more consistent labor hour estimate track record. And then you add Profit (i.e. - what you pay your company, NOT what you pay yourself - THAT should already be included in your Labor or Overhead costs) on top of all of it...

For any out of the ordinary items, treat them as a separate Change Order, or give an allowance, but that shouldn't stop you from signing the agreement. An example is, we provide the labor to install tile, but the customer hasn't picked the tile yet. That's not a problem... we tell them because there is a wide variety they can choose from (which they get to do so from our yard), we will provide an allowance for what the average is so as not to hold things up, and anything above that, we will initiate a Change Order to cover the difference or a credit. Removes the pressure to decide on everything that night. Most customers have no problem with that Change Order because they know their decision to upgrade the materials is theirs.

The goal is to remove them from the market while saving you time, effort and increasing your Profit (i.e. - unless you account for it as part of your annual costs or charged for services, travel, extra meetings, etc. ALL have to come from somewhere - and it's usually YOUR POCKET or your time because most guys don't even think about it as a CODB as opposed to the income stealer it actually is).

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Old 04-29-2019, 07:10 AM   #29
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Re: Average Closing Percentage


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Point being, you will find so many factors that impact your closing rate. Worry about closing the right deals than how many you are closing.
The ending of your commentary was the most important. My ratio was much lower when I was getting way to many unqualified leads, mostly my fault since the marketing was rather generic. Then over time I got tighter on who I was specifically marketing too. Yes, the leads slowed down but the percentage who became customers skyrocketed. Becoming better at your marketing for the right leads will eventually enhance the closing rate (assuming you are good at sales too).

By the way, is the OP ever coming back? You will see my earlier post reaching out to him since he is local. Never heard back, but that is a common theme here too in South Florida, unfortunately
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Old 04-29-2019, 06:23 PM   #30
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Re: Average Closing Percentage


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You're focusing only on price as your tool... Customers buy based on Company, Products, Service and Price... usually in that order... if you've established the first three and have a fit, the last is not as much of an issue... but you have to build it and set the expectations...

We do the exact opposite of what you're listing and the pricing strategy to close... we tell customers when we arrive that this isn't a high-pressure sales call like the may have experienced before or heard nightmares about; there's aren't going to be any sales gimmicks like "managers" or "first night" discounts... we've been doing this a long time and we know what's appropriate to charge without gouging customers... we've established our company to remove as much pricing fluff from the picture, so we can offer high-end products/service for a fair price... we manufacture many of the products we install so there's ONE place of responsibility if you ever have an issue during your warranty period... (here's the key) SO THIS WILL EITHER MAKE SENSE TO YOU OR IT WON'T... for most of our customers and referrals, it made sense, but don't expect a bunch of fake discounts where they raise the price only to lower it again or other sales gimmicks to try to get you to buy RIGHT NOW... you should KNOW your pricing and there shouldn't be any question of how high they raised the price only to lower it again... if what you offer makes sense, and is a fit, most people know right away... after all, how many 2 hours calls do you want to sit through if you've already found a match? If you're happy with our Company, the Products we offer and the Service we back it up with, the Price will be fair and most importantly it all makes sense and we can get the ball rolling... there's more to the meeting than that which builds upon it, but what you've done is removed the elephant from the room and they can now stop looking at you as a salesperson they've been instinctively taught to mistrust either through personal experience or nightmare stories to the craftsman you actually are... the rest of the meeting is a focus on that aspect expounding on Company, Product, Service and THEN Price...

Here's the crux of the whole thing... you're spending HOURS more EVERY WEEK driving back AFTER you have them in the hottest buying frame of mind, re-creating the wheel putting together a proposal, sending it out to the ether, not hearing back, going out for secondary appointments if you don't send it out to the ether... wouldn't you be better off to KNOW if you could close it that night and literally remove almost a days worth of time each week from the amount of appointments you are keeping? There will always be those who don't buy the first night for a variety of reasons, and those who will close after, but in our case, we close and remove from the market a rolling average of 33-42% the first night and another 15-20% or so in secondary closes..

But we'd close ZERO and remove ZERO from the market that night if we never asked... using those numbers, how much time and money could you save yourself?... I'm not there to entertain, or waste time... I'm there to make it EASY for them to say Yes so we can get the ball rolling, not give them reasons to "think it over" (although sometimes you just can't avoid it)...


P.S. - you NEVER sit a meeting unless all decision makers are there... that's a GUARANTEED waste of time and money...
That was an excellent well-written post.
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Old 05-01-2019, 01:38 PM   #31
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Re: Average Closing Percentage


How many are using an agreement of professional services? Or have looked at doing them?

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Old 05-02-2019, 08:23 AM   #32
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Re: Average Closing Percentage


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How many are using an agreement of professional services? Or have looked at doing them?
We frequently use a "design agreement" to get them committed to working with us and so we aren't working for free designing the job, getting through all of the details, and pricing out the project.
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Old 05-02-2019, 09:00 AM   #33
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Re: Average Closing Percentage


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We frequently use a "design agreement" to get them committed to working with us and so we aren't working for free designing the job, getting through all of the details, and pricing out the project.
Other than two jobs I have not done a single project in the last 2 years of any significance and was not for a past client that I did not charge something for construction documents, IE scope of work, selections documents, contract and table of allowances.

It makes it a hell of a lot easier to sell if you get the design as well, but even if it is already designed we sign an APS and they pay.

I generally phrase it is a down payment instead of a fee for a proposal. I ball park the job, we charge 1% of the low figure up front for the documents. 50% to initiate and 50% when documents are complete, if they enter into a contract for construction, which is virtually always, they get at least half of the second payment knocked off. Generally I just eliminate the entire last draw when they sign a construction agreement.

This keeps me from spending a lot of time doing feasibility for engineering, permitting Etc. I probably only get 20% of the jobs that I actually go look at as I said before, but I don't waste almost any time in the office or any of my staff time. I will take a lower sales percentage for higher margin projects

When it's a design/build (preferred) we more and it's easier to sell. We charge a percentage of the job for design and construction documents including a selection manager Etc to go pick these items out and then put them into the system and purchase them e ct.... so the final number for design cost will not be known until we finish design, my ballparks are usually pretty close though. Especially new construction

Anyone who is in the residential remodeling world's should check out remodelers Advantage if they are not using one. It is pretty reasonable to go to one of their conferences and in my opinion the round table groups are reasonable. They push the aps's pretty hard, so does the nari groups I've been around and you will read in remodeling magazine Etc where they are using them.

I did not think it would work and this rural Market, but even though it is unheard of it's really not that hard to sell once you work on your approach.

This is my way of doing the one-day closing that Kap is talking about, which would be virtually impossible for the projects that we do. I have used it for decks and even a horse barn that had plans already drawn once. I showed up with the price and a simple scope of work and a contract.

Either his way or the way I do it you waste zero time beyond the first visit. Something to consider anyway.

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Old 05-08-2019, 08:23 PM   #34
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Re: Average Closing Percentage


Been trying to sell one the first day for the last couple weeks. So far no takers. Sold a one a few days later, but everyone seems put off by me trying to sell them a project without them receiving everyone else's proposal yet.

Now granted it's only been 2 weeks, but it seems my closing percentage has actually dropped. Like I said, it's only been 2 weeks and I don't have a good time span to actually use, but out of 18 bids I landed 1. I go back every time to check my numbers, and I'm usually within $500 or so. I'm going to give it another month and see how things go.
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Old 05-08-2019, 09:16 PM   #35
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Re: Average Closing Percentage


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Been trying to sell one the first day for the last couple weeks. So far no takers. Sold a one a few days later, but everyone seems put off by me trying to sell them a project without them receiving everyone else's proposal yet.

Now granted it's only been 2 weeks, but it seems my closing percentage has actually dropped. Like I said, it's only been 2 weeks and I don't have a good time span to actually use, but out of 18 bids I landed 1. I go back every time to check my numbers, and I'm usually within $500 or so. I'm going to give it another month and see how things go.
So you've closed one the first night... how many after? Where are you placing your emphasis? If you're laying it out right, there's no reason for them to be put off by you asking first night, as you should have covered it in the beginning of the appointment...

It's a process, not hit and miss... give a sample layout of the typical call out of the 18 you've done...
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Old 05-08-2019, 09:25 PM   #36
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Re: Average Closing Percentage


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Been trying to sell one the first day for the last couple weeks. So far no takers. Sold a one a few days later, but everyone seems put off by me trying to sell them a project without them receiving everyone else's proposal yet.

Now granted it's only been 2 weeks, but it seems my closing percentage has actually dropped. Like I said, it's only been 2 weeks and I don't have a good time span to actually use, but out of 18 bids I landed 1. I go back every time to check my numbers, and I'm usually within $500 or so. I'm going to give it another month and see how things go.
Your acting like you need the job, train yourself to be indifferent about it. It's a formality, you might be doing them a favor.
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Old 05-08-2019, 09:39 PM   #37
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Re: Average Closing Percentage


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Originally Posted by HammerSwing View Post
Been trying to sell one the first day for the last couple weeks. So far no takers. Sold a one a few days later, but everyone seems put off by me trying to sell them a project without them receiving everyone else's proposal yet.

Now granted it's only been 2 weeks, but it seems my closing percentage has actually dropped. Like I said, it's only been 2 weeks and I don't have a good time span to actually use, but out of 18 bids I landed 1. I go back every time to check my numbers, and I'm usually within $500 or so. I'm going to give it another month and see how things go.
So you've closed one the first night... how many after? Where are you placing your emphasis? If you're laying it out right, there's no reason for them to be put off by you asking first night, as you should have covered it in the beginning of the appointment...

It's a process, not hit and miss... give a sample layout of the typical call out of the 18 you've done...
No, didn't sell it the first night. It was a handful of days later the customer called me back.

I'm not sure what you're asking with your sample layout question. I usually give my "presentation" about our company and show and teach them about different products - same as I did before. Only thing different now is I leave them a binder i put together with a little information about my company, and photos of previous work. I measure everything and write out a proposal on blank proposal forms I preprinted (same as my others, just with blank spaces for prices). I hand it to them and say something like "Here is my proposal for your project for the products and design we discussed. This time of year our schedule fills up fast, and I'd love to get you on our schedule if you're interested in signing today." If they seemed undesided on a few things things I might add "this is just to get you on the schedule. If you change your mind and would prefer to change to another color option, we can change anything you'd like through a change order." The phrasing may be different depending on who I'm talking to, but that's more or less what I say.

I usually get responses similar to "oh we still have other contractors to meet with" or "we aren't getting into a contract tonight, we have to consider all the options." I even had one customer (although he was bad from the beginning) tell me he didn't appreciate being pressured into a sale. I honestly don't think I'm pressuring at all. I try to do the opposite, and tell them the option is there.

Even met with a gentleman just this evening who was complaining about the first company he met with pushing a sale on him the same day. I didn't even attempt to get him to sign today...
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Old 05-08-2019, 09:43 PM   #38
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Re: Average Closing Percentage


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Originally Posted by JBM View Post
Quote:
Originally Posted by HammerSwing View Post
Been trying to sell one the first day for the last couple weeks. So far no takers. Sold a one a few days later, but everyone seems put off by me trying to sell them a project without them receiving everyone else's proposal yet.

Now granted it's only been 2 weeks, but it seems my closing percentage has actually dropped. Like I said, it's only been 2 weeks and I don't have a good time span to actually use, but out of 18 bids I landed 1. I go back every time to check my numbers, and I'm usually within $500 or so. I'm going to give it another month and see how things go.
Your acting like you need the job, train yourself to be indifferent about it. It's a formality, you might be doing them a favor.
I try not to, and right now I really don't need the job. Not to say there aren't times when I am desperate to get something rolling in! Right now the guys are busy, we have a comfortable cushion, and I'm not really pushing anyone (or don't intend to)
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Old 05-08-2019, 11:30 PM   #39
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Re: Average Closing Percentage


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Originally Posted by HammerSwing View Post
No, didn't sell it the first night. It was a handful of days later the customer called me back.

I'm not sure what you're asking with your sample layout question. I usually give my "presentation" about our company and show and teach them about different products - same as I did before. Only thing different now is I leave them a binder i put together with a little information about my company, and photos of previous work. I measure everything and write out a proposal on blank proposal forms I preprinted (same as my others, just with blank spaces for prices). I hand it to them and say something like "Here is my proposal for your project for the products and design we discussed. This time of year our schedule fills up fast, and I'd love to get you on our schedule if you're interested in signing today." If they seemed undesided on a few things things I might add "this is just to get you on the schedule. If you change your mind and would prefer to change to another color option, we can change anything you'd like through a change order." The phrasing may be different depending on who I'm talking to, but that's more or less what I say.
You don't read that as salesman speak with a dash of pressure?

At what point did you ask them about THEIR schedule (i.e. - when did they want to get it done)? If they're not in any hurry and is months out, of what benefit is it to them to even entertain it?



Quote:
Originally Posted by HammerSwing View Post
I usually get responses similar to "oh we still have other contractors to meet with" or "we aren't getting into a contract tonight, we have to consider all the options." I even had one customer (although he was bad from the beginning) tell me he didn't appreciate being pressured into a sale. I honestly don't think I'm pressuring at all. I try to do the opposite, and tell them the option is there.

Even met with a gentleman just this evening who was complaining about the first company he met with pushing a sale on him the same day. I didn't even attempt to get him to sign today...
So by not addressing it, you are actually feeding into the salesperson persona as opposed to the craftsman. I would've said to him...

"I totally get where you're coming from... Hey, I buy stuff too, and I can't stand when they use those sales pressure tactics with "manager" or "first night discounts"... that's not the way I work... instead we've developed our company to remove all the pricing fluff to be able to offer you higher quality products/services at a fair price, and if you're happy with our Company, Products and Service, the price should either make sense for you or it doesn't. I don't like wasting time anymore than you do. But you're not going to have to sit through multiple appointments with me to get to a decision because we've been doing this a long time, a great referral base, and know our prices and because we actually have a price-list, you're going to benefit from pricing integrity. You'll KNOW what it costs upfront for everything that we cover tonight. There's no raising the price, only to lower it again with some sales gimmick only to wonder how low it really goes. The price I'll give you today reflects what we can do for you. Don't you wish everyone made it that easy for you? or Sound fair?"


You have to approach this as if you don't NEED their business but would like to work with them on their project. It simply comes across different. Craftsmen versus Salesman. At what point do you ask how they're going to pay for the project? How do you zero in on their budget to even offer the CORRECT products/services you offer? (offer three levels of price range that includes the products that important to them then ask which level they're most comfortable with - it'll be the middle) How do you integrate those into the presentation?

Where you want to be at the end of the presentation after covering Company, Product(s), Service and then Price, is different than what you're attempting. With what you're saying your placing pressure on them because it relates to what YOU need (i.e. - OUR schedule is filling up, and YOU'd love to get them on YOUR schedule), not them.

Instead, if you've been building on it, the Price aspect is the kicker to what you've been presenting...

"Mr. Customer, like we discussed earlier, and as you saw from looking through the binder, been doing this for a while and have served *** of customers in the surrounding area (and if the case) including some of your neighbors. (if they're a referral) You have the added benefit of knowing Joe Shmoe, who referred me to you and you saw the quality our Company has to offer first hand (you can also refer to the binder)/ THAT'S COMPANY. What we have for your project is (name the products you're using, any manufacturers warranties, what makes them different)... THAT'S PRODUCTS. Where we stand out is and what we've found our customers appreciate (name what makes you different, discuss how you handle permit process, computer drawings once under contract, etc.). THAT'S SERVICE. (Review your hand drawings with them, confirm there are no changes they'd like to make, explain Change Orders and/or Allowances, if applicable) When we were focusing in on what you'd like to pay for your brand new deck, you mentioned that your budget was most comfortable in the middle price range (they 95% of the time choose the middle), but you also had some high expectations of wanting the best for cheapest amount. I suspect that hasn't change has it? Is there anything else we haven't covered that you need to consider about your deck? (Yes, discuss they're concern, No, Move On - you're trying to make it easy for them to yes and get them in the mind-frame that it's to their benefit. In Company, Product(s), Service, you're goal is to remove as many of the most common objections people have when dealing with your company) Well, as I mentioned earlier, over the years we've refined what we offer to be able to offer the high end products at a fair price. And that's what's happened here... Now you mentioned that you were looking to get this deck done by mid-summer and that you'd be paying cash for it or maybe getting a HOMEQ loan to cover it. As of today, that's a realistic time-frame for me to (and if a HOMEQ, enough time to get their ducks in a row), so we have a match there (and if not, tell them how far out and confirm that will still work) but I'm sure you understand that especially this time of the year, it's first-come, first-served. Assuming this all makes sense to you, once we get the paperwork taken care of, what happens next is we'll provide you with computer drawings and meet to review it and make sure there aren't any Changes you'd like to make, so we can finalize the design and order the materials within the time-frame needed. We then provide you with an Estimated Start Date, which we'll confirm a few weeks out so you'll be ready for us. I want to make it clear that we don't start a job until we have all the materials that were ordered for you because we don't want there to be any delays in getting your job done. I tell you this in advance because we want you to be another referral not an upset customer, and the fact is material delays sometimes happen this time of year because you're not the only one wanting a deck. But nothing to worry about there as we'll keep you in the loop. That being said, what day next week would be good to meet to go over the computer drawings so we can get things ordered? (If they answer and give a day and time), keep going. The reason I ask, is you'll be happy to know that not only did your project come in at a fair price within your budget, but you ended up with all the high end products you wanted to boot. So you got everything you wanted... The total price for your new deck is... $xx,***.00, which is actually $***.00 below the high-end of the budget. Congrats! Don't you love it when it all just makes sense? (big smile) Now, you mentioned you were paying cash, with the paperwork, we require 25% down to confirm that time-frame you wanted, and we'll get the other 25% of the price at next weeks meeting (you're assuming the close at this point). Check is fine for either, but these cover roughly 90% of the material & design costs. The next 25% will be due at the Start of the project on-site and the delivery of those products will be the day before. 20% is due after inspections, and the remaining 5% after you sign-off that you're satisfied with everything and not until then, and with your permission, we add you to our book and you become another referral for future customers looking for a new deck."


Then, unless they say anything, start filling out the paperwork. If they object to you doing so, drill down a little... think about what you've confirmed... They're happy with the Company, Product(s), Service (you know this because you verified it along the way) and you conformed that they didn't have any other questions or concerns earlier and the Price (you established the level of products they wanted and stayed within their budget range that was comfortable for them that they established). I would simply ask "I certainly want you to be happy with what we have to offer, what about this doesn't make sense to you?"

If they answer - "I don't like making decisions the first night" (one of the most common ones you'll get because they've been programmed to say it either through stories or experience) - Say -
"I can appreciate that... I really want to understand this because based on our time together it seems we have a great match... we've already established earlier you're happy with our Company, the Products and Services we have to offer and the total price for the project we designed here tonight together came in the budget range that was most comfortable for you with the products/services that were important to you to have... is there something we missed that we haven't covered that would have this make more sense for you to be comfortable getting your project going?"...
And you know what? Some people simply will not close the first night... it's why no-one has a 100% first-night close average... It takes time to learn to do it and put it in your own vernacular... the same way it took time to become a craftsman...

You learn by keep asking questions and applying what you learn... over and over again...

Last edited by KAP; 05-08-2019 at 11:35 PM.
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Old 05-09-2019, 01:49 AM   #40
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Re: Average Closing Percentage


I'd rather get one lucrative job than 5 bad ones. It's not how many you close, it's what are you making on them, how big of a pita it is and the quality of customers.


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