We still have another month but I wanted to see what every ones close rates were for estimates in 2021. Out of the 544 estimates sent we converted 398 into jobs. So pretty close to %73 percent close rate. I’m pretty happy with that but it makes me ask what’s a good rate and what does it tell me about my business.
For example if it was much higher I’d be concerned that my prices are too low. But I’m almost wondering if there’s a little room to raise them and not leave money on the table. In my mind 70 percent was usually the sweet spot. However with the way the market is going it seems a decent price increase is inevitable to stay ahead. Which makes me wonder how that will translate to by close rate.
This is with the thought that I do plan to add 2 more trucks and 2-3 guys next season so I’m not looking for the approach of charge as much as I can and only pick the best jobs. I like to stay somewhere in the middle and make a decent wage for the work we do. All while bringing in more customers at a price they are willing to pay. Finding that sweet spot of charging right and also bringing in enough work to grow. And what % does that look like.
Anyway these are the thoughts I’ve been throwing around and seeing if anyone has similar thoughts or some input.
I still have to pore over the numbers, but we are usually around 40-50%
I raised my prices this past summer and my close rate actually went up lol
Edit - just looked at my CRM dash and our close rate for 2021 is just about 50%, not including things such as out of area, commercial / storefront, repeat customers and people calling for services we don’t offer. Not too shabby!
No clue how to measure that because a lot of customers accept via text, email or call but don’t hit the accept button then the customer factor doesn’t recognize it was an accepted bid but I’d guess about 80%
@ChrisTripleC mine is for all new bids we put out so including residential and commercial. We only do maybe 10 storefront type accounts it’s not really our focus. I don’t believe I can separate my reports for commercial and residential. Or if so I’m not sure how. As far as repeat percentages I’ll have to see if I can pull up that report. That I’m interested to find out. What percentage do you feel is healthy for a growing company to be at? This is under the assumption that we are all using a dialed in sales system and it’s based purely on price I guess.
@Narcos what software did you use to separate out your categories? Such as residential and commercial.
@Denver13 with house call pro that how it was for me too. My sales tracker was never accurate. When we switched to Jobber this year I was much more diligent about pushing all bids through the system to have accurate reports. It’s been interesting to see the real numbers.
there’s an old saying about assumptions and i think it would apply here. i don’t think that everyone’s sales system is equivalent to others or that price is the deciding factor in all or even most cases.
honestly, i don’t know our closing ratio right now but i do know the calls we get vary dramatically depending on how they have discovered us. many calls we get are pre-sold by our reviews, others we cannot close. i have had customers comment that i am expensive, reasonable, cheap you name it.
Isn’t that crazy some customers tell you your prices are fair and about what they were expecting. One customer has a heart attack and tells you you’re never going to grow a business because your prices are so high. The next customer pays you $300 for a job that takes 2 hours and says I can’t believe that’s all you charge me tips you $30 and brags to their friends about you.
I always try to have an 80% to 20% ratio. If I’m in the 90% then I’m just too low with my estimates. If I’m only 70%, I’m too high obviously.
Looks like I’m gonna fall right at 82% for the year and I’m ok with that. Good luck!
close rate will also have to do with how many of the right target market are finding you
a lower close rate could be more indicative of the wrong market coming to you, a higher close rate could indicate your talking to your target market better and more qualified already sold on you as the only choice leads are coming to you. more than just a price thing and where it should or shouldn’t be