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Closing Percentage.

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#2 ·
Where are your leads coming from? Yellow Pages vs past customer would be a reason closing ratios can't always be compared. You'll have to do the math.

What do leads cost you? What's your average sale? What's your margin?
What's your marketing cost as a percentage of sale? You'll have to figure out what the minimums are based on your own numbers.

I am not a young man, but if I were a young hired gun for a gutter company, I'd make a nice sample of an 18" piece of .032 gutter with leaf protection on top and knock on doors in nice neighborhoods. I'd set a goal of talking to 25 live prospects per day and selling 5 per day...four days per week. If that works, I'd tell you I don't want any company leads and not to be late with my 15% commission checks.

But then, what do I know?
 
Discussion starter · #3 ·
Bill Z said:
Where are your leads coming from? Yellow Pages vs past customer would be a reason closing ratios can't always be compared. You'll have to do the math.

What do leads cost you? What's your average sale? What's your margin?
What's your marketing cost as a percentage of sale? You'll have to figure out what the minimums are based on your own numbers.

I am not a young man, but if I were a young hired gun for a gutter company, I'd make a nice sample of an 18" piece of .032 gutter with leaf protection on top and knock on doors in nice neighborhoods. I'd set a goal of talking to 25 live prospects per day and selling 5 per day...four days per week. If that works, I'd tell you I don't want any company leads and not to be late with my 15% commission checks.

But then, what do I know?
Click to expand...
Ok i guess i should have said i close at anywhere from 49%-58%. Should i expect a new sales guy to close 10% less than me +/-?
 
#4 · (Edited)
Before I started on my own I had a 28% close rate that included all leads given to me. That included everything that came in. We were a GC with 40 full time employees and did not qualify much.
Average sale was around $8000. I was highest for sales with 28%.
 
Discussion starter · #5 ·
silvertree said:
Before I started on my own I had a 28% close rate that included all leads given to me. That included everything that came in. We were a GC with 40 full time employees and did not qualify much.
Average sale was around $8000. I was highest for sales with 28%.
Click to expand...

That's what im trying to figure out. If i hired some one and they where only closing 28% that would hurt. I would have to spend a lot more on adverting.
 
#6 ·
Hi Josh,

My personal closing ratio (for gutters) hovers at about 60%. Keep in mind that our pricing is also the highest in the area. These are also all advertising leads & referals - I don't have time to knock on doors or cold call.

If I hired a salesman for our gutter division, I would expect them to be at 50% after 30 days. I have hired tons of salespeople (different occupation) over the years & one thing that I have learned is - If they don't start closing deals quickly, they never will. I spent a lot of time & my ex-employers money trying to beat a dead horse.

Now, that said, if you find a "star" that is willing to drum up their own leads that don't cost you any (or very little) money - that's a whole new game. In fact, I would pay that person a higher % of GP, due to the "low cost" of that person. Remember, always pay a percentage of Gross Profit, not Gross Sale - I would figure 20% of GP.
 
#8 ·
28% was good enough for me to win sales awards 6 months in a row. That's 28% on everything they gave me. No speak English, no money, no contact.
Everything counted as a lead. That's how they did it and that was my average. My best month I was double the other 4 guys put together.
The problem when doing percentages is what qualifies as a lead?
Working for Home Depot lets say, if you closed over 60% they would probably have your shoes bronzed. And I sold remodeling, so I couldn't learn a product line. I had to be able to answer broad questions.
I think if you got 50% out of a guy you keep him and pay for some schooling so he becomes a 60% guy. Also lots of guys say they sell high and close more sales than their competitors, that turns out to be true, if you have a well branded company for your area. Do you have that? If not, your going to have a hard time duplicating what some of the posters have said.
 
Discussion starter · #9 ·
Home Services said:
Hi Josh,

My personal closing ratio (for gutters) hovers at about 60%. Keep in mind that our pricing is also the highest in the area. These are also all advertising leads & referals - I don't have time to knock on doors or cold call.

If I hired a salesman for our gutter division, I would expect them to be at 50% after 30 days. I have hired tons of salespeople (different occupation) over the years & one thing that I have learned is - If they don't start closing deals quickly, they never will. I spent a lot of time & my ex-employers money trying to beat a dead horse.

Now, that said, if you find a "star" that is willing to drum up their own leads that don't cost you any (or very little) money - that's a whole new game. In fact, I would pay that person a higher % of GP, due to the "low cost" of that person. Remember, always pay a percentage of Gross Profit, not Gross Sale - I would figure 20% of GP.
Click to expand...
I think 50% would be reasonable. I just dont want them burning up too many leads at $100 bucks each.

I was just gonna do 10% of gross sales and make sure all my bases are covered and they can't lowball. We are just about the most expensive in the state as well and quite often have people be less than half my price. so i need a good salesman. And will supply all leads if necessary.
 
#10 ·
silvertree said:
28% was good enough for me to win sales awards 6 months in a row. That's 28% on everything they gave me. No speak English, no money, no contact.
Everything counted as a lead. That's how they did it and that was my average. My best month I was double the other 4 guys put together.
The problem when doing percentages is what qualifies as a lead?
Working for Home Depot lets say, if you closed over 60% they would probably have your shoes bronzed. And I sold remodeling, so I couldn't learn a product line. I had to be able to answer broad questions.
I think if you got 50% out of a guy you keep him and pay for some schooling so he becomes a 60% guy. Also lots of guys say they sell high and close more sales than their competitors, that turns out to be true, if you have a well branded company for your area. Do you have that? If not, your going to have a hard time duplicating what some of the posters have said.
Click to expand...
Did you get a plaque or a trophy? I need to see proof. Lots of one time closing, sales guru, I am the greatest sales man on the planet posters on CT today. :laughing::laughing:

Are you from Kentucky by chance Mike I mean Silver tree:w00t:
 
Discussion starter · #11 ·
Also lots of guys say they sell high and close more sales than their competitors, that turns out to be true, if you have a well branded company for your area. Do you have that? If not, your going to have a hard time duplicating what some of the posters have said.[/quote]


Don't know if i close more than most of my competitors but know i'm a lot more expensive(i hear it on every estimate).

Yes i'm fairly well branded. I spend a lot on advertising and if you are looking for gutters in my state you will find my ad their.
 
#12 ·
nlgutters said:
Ok i guess i should have said i close at anywhere from 49%-58%. Should i expect a new sales guy to close 10% less than me +/-?
Click to expand...
I found the difference between expectations from the owner and an employee is a minimum of cut it in half. Whether we are talking sales, production, whatever.

If somebody working for you can do 50% of what you would do as an owner who has the most skill, the most motivation, then you're sitting pretty.
 
Discussion starter · #13 ·
silvertree said:
28% was good enough for me to win sales awards 6 months in a row. That's 28% on everything they gave me. No speak English, no money, no contact.
Everything counted as a lead. That's how they did it and that was my average. My best month I was double the other 4 guys put together.
The problem when doing percentages is what qualifies as a lead?
Working for Home Depot lets say, if you closed over 60% they would probably have your shoes bronzed. And I sold remodeling, so I couldn't learn a product line. I had to be able to answer broad questions.
I think if you got 50% out of a guy you keep him and pay for some schooling so he becomes a 60% guy. Also lots of guys say they sell high and close more sales than their competitors, that turns out to be true, if you have a well branded company for your area. Do you have that? If not, your going to have a hard time duplicating what some of the posters have said.
Click to expand...


By the way i didn't mean to offend you.
But in my world 28% would make it hard to stay in business.
 
Discussion starter · #14 ·
Mike Finley said:
I found the difference between expectations from the owner and an employee is a minimum of cut it in half. Whether we are talking sales, production, whatever.

If somebody working for you can do 50% of what you would do as an owner who has the most skill, the most motivation, then you're sitting pretty.
Click to expand...

I don't know if that is 100% true. My installers do damn close to what i can do in a day.
 
#15 ·
rbsremodeling said:
Did you get a plaque or a trophy? I need to see proof. Lots of one time closing, sales guru, I am the greatest sales man on the planet posters on CT today. :laughing::laughing:

Are you from Kentucky by chance Mike I mean Silver tree:w00t:
Click to expand...
Damn, I knew that was the wrong thing to post, would you accept a note from my wife? My real wife!:shutup:
 
#16 ·
nlgutters said:
By the way i didn't mean to offend you.
But in my world 28% would make it hard to stay in business.
Click to expand...
Then I sugest raising your prices. i have worked as a salesman like silvertree and I never got over 30%. Believe me, I knew how to close.
As a owner of a business I was able to close close to 50% and then I raised prices. I found that anytime I closed 50% I was selling my product at too low a price.
 
Discussion starter · #18 ·
Framer53 said:
Then I sugest raising your prices. i have worked as a salesman like silvertree and I never got over 30%. Believe me, I knew how to close.
As a owner of a business I was able to close close to 50% and then I raised prices. I found that anytime I closed 50% I was selling my product at too low a price.
Click to expand...

I have heard that before, but I'm no where near too low. I hit my desired net profit every year.
 
#19 ·
nlgutters said:
I don't know if that is 100% true. My installers do damn close to what i can do in a day.
Click to expand...
Subs or employees?

If their subs that's what I would expect. Employees, you better keep em around, they are golden.

(or you suck as an installer) :laughing:

Just kidding!
 
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Mr. Mike
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