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Average Closing Percentage

 
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Old 05-09-2019, 07:37 AM   #41
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Re: Average Closing Percentage


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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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The customer that can actually afford to support what your business needs to make to pay you AND make a profit for your company... everyone else, not so much and therefore are not your customer... one of the biggest transitions most have trouble making because we like to think everyone is a customer...

It's funny (sorta) when you look back and realize how much time you wasted chasing those with champagne tastes with beer budgets who end up making you starve.

One of the best tools for weeding them out is the three levels of products/services with budget ranges...
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Old 05-09-2019, 07:51 AM   #42
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Re: Average Closing Percentage


Went 0-8 and recently on a 6/10 streak. Can never figure it out.


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Old 05-09-2019, 01:24 PM   #43
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Re: Average Closing Percentage


Since we do a lot of sub-contractor work, I basically get everyone of my proposals approved. It's steady work, I don't have to sell. It's almost all labor dollars. And it's all commercial.

One thing I have done is to charge for screwing up my schedule. That is: we show up with the crew for a project, the date has been set for weeks, and, may have even been changed around some. If we show up and the guy running the show --i.e. the client's contractor/site supervisor---didn't bother to tell anyone that they are running behind or the site is not yet set up for our installations....that is an immediate $500 added charge to the estimate. Each time they screw up, that's another $500 charge.

Luckily for us, we usually have an overabundance of service calls to do, so I redirect the guys to do service calls and other pending installations until sites are ready. If by rare chance we don't have something else to do, then it's clean and organize the warehouse. Either way, the $500 covers my overhead and employee costs for that day.

From what little residential we do, I get about 30% of those projects.
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Old 05-22-2019, 09:11 AM   #44
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Re: Average Closing Percentage


0%

haven't done a bid estimate or proposal since February
decided it's waste of time, just send people a contract these days ask for a deposit and then I'll look at their job and provide a budget

stopped returning phone calls


have plenty of appointments I set up and then "forget" to show up to

just got one of those "emergency" calls the other day for a house closing, that's touching, you want me to do what? By friday?

play tough, you'll get what you want

this business will kill you or you can kill it, pick one
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Old 05-22-2019, 09:21 AM   #45
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Re: Average Closing Percentage


If you get enough calls you can close less percentage wise and make more. In other words you have a much bigger cherry tree to pick from.

If I only get two calls and close 1 I'm closing at a 50% rate. That sounds good but if I'm getting 50 calls and get 10 jobs that's only a 20% closing rate.

But those 10 jobs were charged a premium because I charge a premium for all my jobs. My closing rate is less but I don't need it to be anymore.


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Old 05-22-2019, 09:34 AM   #46
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Re: Average Closing Percentage


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If you get enough calls you can close less percentage wise and make more. In other words you have a much bigger cherry tree to pick from.

If I only get two calls and close 1 I'm closing at a 50% rate. That sounds good but if I'm getting 50 calls and get 10 jobs that's only a 20% closing rate.

But those 10 jobs were charged a premium because I charge a premium for all my jobs. My closing rate is less but I don't need it to be anymore.


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Yep. I bet I don't look at 95% of the calls we get past the first phone interview, and many are eliminated prior to me talking to them

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Old 05-22-2019, 01:51 PM   #47
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Re: Average Closing Percentage


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Yep. I bet I don't look at 95% of the calls we get past the first phone interview, and many are eliminated prior to me talking to them

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I wouldn't count that as closing ratio, closing ratio is on jobs you bid on, not work you blow off on the phone.

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Old 05-22-2019, 01:54 PM   #48
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Re: Average Closing Percentage


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I wouldn't count that as closing ratio, closing ratio is on jobs you bid on, not work you blow off on the phone.

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The amount of leads you get depends on how quickly you can blow them off. That is what Mike is discussing. If you get 5 calls a month instead of 50 you would probably be a little more selective about who you blow off.

I stated my assumed close rate of first sales calls, APS etc... above.

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Old 05-22-2019, 03:15 PM   #49
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Re: Average Closing Percentage


My closing ratio went to chit back in April. For the first time since 2009 someone didn’t close.
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Old 05-22-2019, 04:25 PM   #50
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Re: Average Closing Percentage


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My closing ratio went to chit back in April. For the first time since 2009 someone didn’t close.
10 years no losses? Damn....

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Old 05-22-2019, 07:01 PM   #51
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Re: Average Closing Percentage


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10 years no losses? Damn....

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When they are properly vetted and you're design-build... How the phuck can you lose them?

I lost one in Jan 2018. They just delayed until September... project complete. Not really a loss.

The one I lost in April... My guess is that they will have their brother-in-law build it for half the price. I did make $7k on the design.

Can't wait till I get the call on how to raise/flush the beam in the basement. I'll remind them of the copyright on the plans.
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Old 05-22-2019, 07:06 PM   #52
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Re: Average Closing Percentage


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Originally Posted by DaVinciRemodel View Post
When they are properly vetted and you're design-build... How the phuck can you lose them?



I lost one in Jan 2018. They just delayed until September... project complete. Not really a loss.



The one I lost in April... My guess is that they will have their brother-in-law build it for half the price. I did make $7k on the design.



Can't wait till I get the call on how to raise/flush the beam in the basement. I'll remind them of the copyright on the plans.
Ah I hear you.

I thought you meant pitching the design build. Lol

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Old 05-22-2019, 07:06 PM   #53
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Re: Average Closing Percentage


I hope they actually call. It is so nice lol

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Old 05-23-2019, 06:03 PM   #54
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Re: Average Closing Percentage


Quote:
Originally Posted by DaVinciRemodel View Post
When they are properly vetted and you're design-build... How the phuck can you lose them?

I lost one in Jan 2018. They just delayed until September... project complete. Not really a loss.

The one I lost in April... My guess is that they will have their brother-in-law build it for half the price. I did make $7k on the design.

Can't wait till I get the call on how to raise/flush the beam in the basement. I'll remind them of the copyright on the plans.
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I hope they actually call. It is so nice lol

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heheheheh. yup.
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Old 05-23-2019, 06:24 PM   #55
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Re: Average Closing Percentage


How does the copyright work. Do you retain the copyright on the (3D? Blueprints?) that they purchased from you? What do they get as part of the "design" part then?

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Old 05-23-2019, 06:27 PM   #56
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Re: Average Closing Percentage


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How does the copyright work. Do you retain the copyright on the (3D? Blueprints?) that they purchased from you? What do they get as part of the "design" part then?

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Read this: The drawings don't have to be by a licensed person either.

It's one of those protections too many contractors overlook.

https://www.legalzoom.com/articles/h...nical-drawings
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Old 05-23-2019, 07:18 PM   #57
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Re: Average Closing Percentage


who cares what your closing percentage is so long as you are keeping enough quality work on the books that you can responsibly complete.
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Old 05-23-2019, 07:48 PM   #58
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Re: Average Closing Percentage


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who cares what your closing percentage is so long as you are keeping enough quality work on the books that you can responsibly complete.
When cutting to the chase, you are correct. That is all that matters. But I use it to identify my phone vetting skills, my pricing and my marketing program.

In all honesty, I don’t close 100%. But if I go to 10 “first calls” (first meetings) and I walk away empty on more than 2, I’m not phone qualifying well enough.

If I sign 10 of 10. I raise my prices.

If I turn away 100 of 100 while phone vetting, I look at our marketing to find out why were attracting unqualified prospects
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Old 05-23-2019, 07:52 PM   #59
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Re: Average Closing Percentage


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When cutting to the chase, you are correct. That is all that matters. But I use it to identify my phone vetting skills, my pricing and my marketing program.



In all honesty, I don’t close 100%. But if I go to 10 “first calls” (first meetings) and I walk away empty on more than 2, I’m not phone qualifying well enough.



If I sign 10 of 10. I raise my prices.



If I turn away 100 of 100 while phone vetting, I look at our marketing to find out why were attracting unqualified prospects
I'm not there yet but I get better all the time.

I'd say I close close to a third of the ones I look at in person. Decline to offer design agreement or A PS on many (need to get better with vetting) and only about half I turn a design agreement on (usually 3%) take it. About 30% I'd guess

Keeping the coffers full for a PM and two supers but it's still a decent market

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Old 05-23-2019, 08:08 PM   #60
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Re: Average Closing Percentage


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I'm not there yet but I get better all the time.

I'd say I close close to a third of the ones I look at in person. Decline to offer design agreement or A PS on many (need to get better with vetting) and only about half I turn a design agreement on (usually 3%) take it. About 30% I'd guess

Keeping the coffers full for a PM and two supers but it's still a decent market

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You’re doing more volume than we do. If I had to turn more projects per year, my closing rates would be different.

We only do 5 projects a year (on average). Three of those come from past customers (they know the process and I better not lose them). One will come from a referral (really rare to lose one of these). I only need one net new project a year.

We get, on average 1.2 calls a week from our marketing (58 a year – we only operate 48 weeks a year). Of those 58 calls, I will phone screen out 54 of them and go look at 4. We’ll design three of those and do one… sometimes two.

Just as an example, we’ll only do two projects this year (both from marketing). If a past customer calls, they will be SOL until May of next year. I have called my best customers and let them know.

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