Average Closing Percentage - Page 4 - Marketing & Sales - Contractor Talk

Average Closing Percentage

 
Thread Tools Search this Thread Display Modes
Old 06-05-2019, 08:53 PM   #61
back doors to hell put in
 
Irishslave's Avatar
 
Trade: Carpenter
Join Date: Jun 2010
Location: Google knows
Posts: 3,833
Rewards Points: 2,712

Re: Average Closing Percentage


Quote:
Originally Posted by KAP View Post



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...
Good/Fast/Cheap.....you can only pick 2
__________________
Television is fake...The internet is real
Irishslave is online now  
The Following User Says Thank You to Irishslave For This Useful Post:
overanalyze (06-07-2019)

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 06-05-2019, 08:59 PM   #62
Pro
 
pathbuilder's Avatar
 
Trade: General Contractor
Join Date: Jul 2017
Location: Michigan
Posts: 187
Rewards Points: 406

Re: Average Closing Percentage


Quote:
Originally Posted by DaVinciRemodel View Post
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.
This is the dream. I'm guessing whole home remodels, just not a kitchen or basement?

Sent from my Pixel 3 XL using Tapatalk
pathbuilder is offline  
Old 06-06-2019, 08:22 AM   #63
Pro
 
DaVinciRemodel's Avatar
 
Trade: Design/Build Remodeler
Join Date: Oct 2009
Location: Denver
Posts: 5,652
Rewards Points: 772

Re: Average Closing Percentage


Quote:
Originally Posted by pathbuilder View Post
This is the dream. I'm guessing whole home remodels, just not a kitchen or basement?

Sent from my Pixel 3 XL using Tapatalk
We started the year with a basement finish that ended in April. The current project is a whole house remodel (broken into three phases) that will carry us through April/May of next year.

My worst nightmare occurred yesterday. My largest client called with the idea to bulldoze the existing pool house and rebuild a two-story pool house with a man cave/office above. I told her that off the top of my head, I envision $250k and knowing her tastes/style probably closer to $300k. She said she’d talk to her husband over the weekend. Then finished the conversation with “Could it be done by next pool season?”

I have no clue how I’m going to pull this one off.
__________________
I love what I do and I'm very good at it!

Da Vinci on the web or Da Vinci On Facebook
DaVinciRemodel is online now  
The Following 4 Users Say Thank You to DaVinciRemodel For This Useful Post:
Calidecks (06-07-2019), Jaws (06-08-2019), KAP (06-07-2019), overanalyze (06-07-2019)
Sponsored Links
Advertisement
 
Old 06-07-2019, 02:44 PM   #64
The Sheriff

 
Jaws's Avatar
 
Trade: GC
Join Date: Dec 2010
Location: Texas
Posts: 23,304
Rewards Points: 4,916

Re: Average Closing Percentage


Quote:
Originally Posted by DaVinciRemodel View Post
We started the year with a basement finish that ended in April. The current project is a whole house remodel (broken into three phases) that will carry us through April/May of next year.



My worst nightmare occurred yesterday. My largest client called with the idea to bulldoze the existing pool house and rebuild a two-story pool house with a man cave/office above. I told her that off the top of my head, I envision $250k and knowing her tastes/style probably closer to $300k. She said she’d talk to her husband over the weekend. Then finished the conversation with “Could it be done by next pool season?”



I have no clue how I’m going to pull this one off.
No subs?

Sent from my SM-N920V using Tapatalk
__________________
"The sound of the saftey clicking off is the only warning your gonna get......., so cover your ears" Northeast Wyoming 2016

John
Jaws is online now  
Old 06-07-2019, 05:59 PM   #65
Radical Basement Dweller
 
Robie's Avatar
 
Trade: Whatever needs to be made or repaired
Join Date: Feb 2005
Posts: 15,055
Rewards Points: 4,190

Re: Average Closing Percentage


Quote:
Originally Posted by DaVinciRemodel View Post
We started the year with a basement finish that ended in April. The current project is a whole house remodel (broken into three phases) that will carry us through April/May of next year.

My worst nightmare occurred yesterday. My largest client called with the idea to bulldoze the existing pool house and rebuild a two-story pool house with a man cave/office above. I told her that off the top of my head, I envision $250k and knowing her tastes/style probably closer to $300k. She said she’d talk to her husband over the weekend. Then finished the conversation with “Could it be done by next pool season?”

I have no clue how I’m going to pull this one off.
You will.
__________________
When the debate is lost, slander becomes the tool of the losers.
Robie is online now  
The Following 2 Users Say Thank You to Robie For This Useful Post:
Calidecks (06-07-2019), overanalyze (06-07-2019)
Old 06-08-2019, 09:45 AM   #66
Pro
 
DaVinciRemodel's Avatar
 
Trade: Design/Build Remodeler
Join Date: Oct 2009
Location: Denver
Posts: 5,652
Rewards Points: 772

Re: Average Closing Percentage


Quote:
Originally Posted by Jaws View Post
No subs?

Sent from my SM-N920V using Tapatalk
Not sure what I can sub-out at this point. Phase 1 of project A is labor intensive (in-house labor – about $80k of cabinets/built-ins). Phases 2 & 3 are “work in process” designs that have my time virtually committed full time (actually scrambling a bit).

To meet a deadline of “next pool season” for Project B means I would need to have designs, community approval and permit by September 1st (this is a WAG considering I don’t have designs yet). To meet a September 1st start date, I need to start design full-time… right now!
__________________
I love what I do and I'm very good at it!

Da Vinci on the web or Da Vinci On Facebook
DaVinciRemodel is online now  
The Following 2 Users Say Thank You to DaVinciRemodel For This Useful Post:
Jaws (06-08-2019), overanalyze (06-15-2019)
Old 06-08-2019, 09:45 AM   #67
Pro
 
DaVinciRemodel's Avatar
 
Trade: Design/Build Remodeler
Join Date: Oct 2009
Location: Denver
Posts: 5,652
Rewards Points: 772

Re: Average Closing Percentage


Quote:
Originally Posted by Robie View Post
You will.
I’m going to fight like hell to get em both done. Just need some time to think it through.
__________________
I love what I do and I'm very good at it!

Da Vinci on the web or Da Vinci On Facebook
DaVinciRemodel is online now  
The Following 5 Users Say Thank You to DaVinciRemodel For This Useful Post:
Jaws (06-08-2019), KAP (06-08-2019), overanalyze (06-15-2019), Robie (06-08-2019), SouthonBeach (06-09-2019)
Old 06-08-2019, 09:58 AM   #68
The Sheriff

 
Jaws's Avatar
 
Trade: GC
Join Date: Dec 2010
Location: Texas
Posts: 23,304
Rewards Points: 4,916

Re: Average Closing Percentage


Quote:
Originally Posted by DaVinciRemodel View Post
Not sure what I can sub-out at this point. Phase 1 of project A is labor intensive (in-house labor – about $80k of cabinets/built-ins). Phases 2 & 3 are “work in process” designs that have my time virtually committed full time (actually scrambling a bit).



To meet a deadline of “next pool season” for Project B means I would need to have designs, community approval and permit by September 1st (this is a WAG considering I don’t have designs yet). To meet a September 1st start date, I need to start design full-time… right now!
Ah, remodel demo? I read it as a complete tear down and new construction. Figured maybe a demo company, foundation/framing subs etc....

If it is a complete demo check out a demo company. I never used them, we always did our demo and then a guy came by when I pulled a permit for a lake tear down/ rebuild. He said you'd be surprised how efficient and low cost, I have my own dumpsters. I said I got my dumpsters too, but throw me a bid of you want.

It was less than I'd have in the trash, 6k. He's done 4 since for 4-13k depending on size location. Less than. 5 days every time to a scraped lot.

Sent from my SM-N920V using Tapatalk
__________________
"The sound of the saftey clicking off is the only warning your gonna get......., so cover your ears" Northeast Wyoming 2016

John
Jaws is online now  
The Following User Says Thank You to Jaws For This Useful Post:
overanalyze (06-15-2019)
Old 06-08-2019, 12:07 PM   #69
Kowboy
 
Kowboy's Avatar
 
Trade: Countertops
Join Date: May 2009
Location: Sarasota, FL
Posts: 1,597
Rewards Points: 8,306

Re: Average Closing Percentage


You need to pressure clients, even good ones, to sign on the first call. If they accuse you of high pressure tactics, you aren't doing it right. They will thank you in the end.
Kowboy is offline  
Old 06-08-2019, 01:40 PM   #70
The Sheriff

 
Jaws's Avatar
 
Trade: GC
Join Date: Dec 2010
Location: Texas
Posts: 23,304
Rewards Points: 4,916

Re: Average Closing Percentage


Quote:
Originally Posted by Kowboy View Post
You need to pressure clients, even good ones, to sign on the first call. If they accuse you of high pressure tactics, you aren't doing it right. They will thank you in the end.
Why?

Every now and then I'll get somebody to sign an APS (agreement of professional services) on the first visit because we really hit it off, most of the time I asked them to think about it. It's a very exciting time and people will be naturally moved to get the process started right away without really thinking about all of the reactions to entering an agreement with me.

It's a big decision, and the thousands of dollars they pay me for the APS is nonrefundable. They will either be moving out of their house for 6 months to a year (90% of the time second home) or they will be waiting 6 months to a year for their new house to be built. They are going to be married to me for that time period

After they think about it they sign/scan and return etc... and when I get a check we begin pre construction

I have zero compulsions about asking them to wait and think about it, and more than once I have thought about it and decided not to take the projects for whatever reason, distance from the shop, distance from other projects, bad feeling with a client, too many jobs, opportunity cost of other jobs I have on the fringe Etc

Sent from my SM-N920V using Tapatalk
__________________
"The sound of the saftey clicking off is the only warning your gonna get......., so cover your ears" Northeast Wyoming 2016

John
Jaws is online now  
The Following 4 Users Say Thank You to Jaws For This Useful Post:
griz (06-08-2019), KAP (06-08-2019), Robie (06-08-2019), SmallTownGuy (06-08-2019)
Old 06-08-2019, 03:44 PM   #71
Pro
 
KAP's Avatar
 
Trade: Custom
Join Date: Feb 2011
Posts: 11,048
Rewards Points: 34,010

Re: Average Closing Percentage


Quote:
Originally Posted by Kowboy View Post
You need to pressure clients, even good ones, to sign on the first call. If they accuse you of high pressure tactics, you aren't doing it right. They will thank you in the end.
If you've removed the reasons they would have to not move forward, the decision usually takes care of itself without having to resort to pressure sales tactics... fake discounts, manager discounts, first night discounts, etc.

Pressure sales tactics still work for some though... those are usually guys who focus way to much on price as the reason to buy... but everyone's different...
KAP is offline  
Old 06-08-2019, 05:11 PM   #72
water re-locater
 
NYgutterguy's Avatar
 
Trade: Gutter installer
Join Date: Mar 2014
Location: orange/rockland ny NYC suburbs
Posts: 6,798
Rewards Points: 6,678

Re: Average Closing Percentage


I’ve been told over and over I was hired because all the others were too pushy with their one call sales pitch. They felt more comfortable with the personal non salesman approach that I have.


Sent from my iPhone using Tapatalk
NYgutterguy is online now  
The Following 4 Users Say Thank You to NYgutterguy For This Useful Post:
KAP (06-08-2019), META (06-08-2019), overanalyze (06-15-2019), Robie (06-08-2019)
Old 06-08-2019, 05:55 PM   #73
Pro
 
cedarboarder's Avatar
 
Trade: Workaholic
Join Date: Mar 2015
Location: BC Bring Cash
Posts: 2,590
Rewards Points: 384

Re: Average Closing Percentage


Quote:
Originally Posted by NYgutterguy View Post
I’ve been told over and over I was hired because all the others were too pushy with their one call sales pitch. They felt more comfortable with the personal non salesman approach that I have.


Sent from my iPhone using Tapatalk
Consumers are getting smarter.

Sent from my SAMSUNG-SM-G891A using Tapatalk
cedarboarder is online now  
The Following User Says Thank You to cedarboarder For This Useful Post:
NYgutterguy (06-08-2019)
Old 06-08-2019, 09:11 PM   #74
Pro
 
META's Avatar
 
Trade: General and Trades
Join Date: Apr 2015
Location: MI
Posts: 2,028
Rewards Points: 3,374

Re: Average Closing Percentage


BS always smells like BS, no matter how fast it's served, seasoned, or cooked.

Sent from my SM-N950U using Tapatalk
META is offline  
The Following 5 Users Say Thank You to META For This Useful Post:
DaVinciRemodel (06-09-2019), Jaws (06-09-2019), KAP (06-09-2019), overanalyze (06-15-2019), SmallTownGuy (06-09-2019)
Old 06-15-2019, 08:48 PM   #75
Registered User
 
JR-IP's Avatar
 
Trade: Painter
Join Date: Jun 2019
Location: Jacksonville, FL
Posts: 10
Rewards Points: 20

Re: Average Closing Percentage


Quote:
Originally Posted by DaVinciRemodel View Post
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.
If they paid you for the design, then how do you still own the copyright of the plans that you made on their dime? I get that you own copyright of design you make, but I don't think it works like that if you're paid for it. Correct me if I'm wrong.
JR-IP is offline  
Old 06-15-2019, 08:57 PM   #76
The Sheriff

 
Jaws's Avatar
 
Trade: GC
Join Date: Dec 2010
Location: Texas
Posts: 23,304
Rewards Points: 4,916

Re: Average Closing Percentage


Quote:
Originally Posted by JR-IP View Post
If they paid you for the design, then how do you still own the copyright of the plans that you made on their dime? I get that you own copyright of design you make, but I don't think it works like that if you're paid for it. Correct me if I'm wrong.
It's all in the contract. I reject any contract from an architect I hire under my design umbrella that says they own the plan. I own the plan.

I charge a percentage of the build for the design development, we do not on the plan. Our agreement of professional service or design agreement says they own all documents. If I hadn't turned their business by there and I don't want the project.

Sent from my SM-N920V using Tapatalk
__________________
"The sound of the saftey clicking off is the only warning your gonna get......., so cover your ears" Northeast Wyoming 2016

John
Jaws is online now  
Old 06-15-2019, 10:40 PM   #77
back doors to hell put in
 
Irishslave's Avatar
 
Trade: Carpenter
Join Date: Jun 2010
Location: Google knows
Posts: 3,833
Rewards Points: 2,712

Re: Average Closing Percentage


The bigger the bill the longer the massage. I personally want to keep the reconnaissance phase to a minimum anymore after decades of it you get burned out. So I pick and choose anymore. The volume of dog **** that comes across my phone and e-mail compared to what I actually end up doing is easy 10 to 1
__________________
Television is fake...The internet is real
Irishslave is online now  
Old 06-15-2019, 10:48 PM   #78
GC/carpenter
 
Calidecks's Avatar
 
Trade: Decking, Railing, Carpenter/General Contractor
Join Date: Nov 2011
Location: Anaheim Hills, California (OC)
Posts: 36,531
Rewards Points: 18,332

Re: Average Closing Percentage


Quote:
Originally Posted by JR-IP View Post
If they paid you for the design, then how do you still own the copyright of the plans that you made on their dime? I get that you own copyright of design you make, but I don't think it works like that if you're paid for it. Correct me if I'm wrong.


I may buy a book but it doesn't mean I own the copyright. Same thing.


Mike.
_______________
Calidecks is online now  
The Following User Says Thank You to Calidecks For This Useful Post:
DaVinciRemodel (06-16-2019)
Old 06-15-2019, 11:42 PM   #79
Pro
 
KAP's Avatar
 
Trade: Custom
Join Date: Feb 2011
Posts: 11,048
Rewards Points: 34,010

Re: Average Closing Percentage


And just like a book, it doesn't stop you from using the design with modifications...

There'd be no such thing as Hollywood otherwise...
KAP is offline  
Old 06-16-2019, 06:09 AM   #80
Registered User
 
JR-IP's Avatar
 
Trade: Painter
Join Date: Jun 2019
Location: Jacksonville, FL
Posts: 10
Rewards Points: 20

Re: Average Closing Percentage


Quote:
Originally Posted by Calidecks View Post
I may buy a book but it doesn't mean I own the copyright. Same thing.


Mike.
_______________
In the end, I'm willing to admit when I'm wrong.
Many clients assume that when they pay a designer as an independent
contractor to do work for them, the client will automatically own all
intellectual property rights in the designer’s work product. This is not
correct. The designer retains ownership of the intellectual property in
her/his work unless and until the designer signs a written agreement
that transfers ownership of the intellectual property to the client.

Instead of assigning intellectual property to the client, the designer can
keep intellectual property ownership and grant a license to the client.
A license is a limited permission given by a designer to the client to
use the intellectual property comprising the work product in a certain
way. The extent of the license you grant will vary based on the type of
work involved.
https://www.aiga.org/globalassets/ai...n-services.pdf

That was not what I was expecting, but I'm often wrong. Ask my wife

Advertisement

JR-IP is offline  
The Following User Says Thank You to JR-IP For This Useful Post:
Calidecks (06-16-2019)



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Typical size crew & average # of bricks laid... Lando Masonry 14 09-17-2015 05:01 PM
Great book on closing JBMagi Marketing & Sales 15 04-12-2011 06:31 AM
Average Remodeling Costs Keeyter Remodeling 9 03-13-2011 06:04 PM
My closing percentage is on the up... ruskent Business 16 06-06-2007 01:41 PM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?