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Closing rate

This topic contains 40 replies, has 12 voices, and was last updated by  Rob 5 years, 7 months ago.

Viewing 20 posts - 1 through 20 (of 41 total)
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  • #89917

    Calidecks64
    Pro
    Anaheim Hills, Cali

    Out of 10 prospects I would say I will get 3 or 4 jobs. I get a lot of tire kickers.

    I can remember telling someone I don’t service your area it’s just too far to be worth my time.
    They still had the nerve to ask me if I can come out and give them a price anyway.

    Some people are very inconsiderate.
    I have a rule to not give prices for insurance work or real estate agents. Real estate agents are almost always tire kickers. In all the time I’ve been in business I can say I’ve never got a job for a Realtor. They just want to find out what they are going to have to take off the price at the sale, to replace a rotted deck. So you give them a proposal and they use give it to the party making them an offer. Then say I will take this price off the selling price of the home.

    Insurance jobs are almost always wanting three estimates so they can pocket as much as possible.

    #89931

    DirtyWhiteBoy
    Pro
    Honolulu,, Hi.

    Cali I’m wondering if you have a sq. foot price in your head for your jobs. Not asking what it is just if you go by the sq. foot?
    Great thread by the way!

    Dirty

    A Working Pro since 1988!

    Member since January 26, 2013.

    #89933

    Calidecks64
    Pro
    Anaheim Hills, Cali

    I always give sq. ft. Price for decks and lineal ft. Price for railing

    #89982

    redwood
    Pro

    I had the same experiences as you Cali, in regard to real estate agents. At some point, I decided fine, but I will charge you $ 75 to come out and expect your deck and give you my feelings on its condition. I figured that other fields received payment for their expertise, why not me. Surprisingly, I’ve gotten a lot of OK’s with this method and a few jobs.

    I don’t get insurance calls ever.

    Mark E.

    Pioneer, CA

    Working Pro 1972 - 2015
    Member since Jan 22, 2013
    www.creative-redwood-designs.com

    #90029

    parenos
    Moderator
    Honesdale, PA

    I can normally close 6-7 out of 10. But most of my calls are from referrals of previous work. I am working on expanding my advertising to get in front of more potential clients. Everyone I talk to tells me to shoot for a 40 percent closing ratio.

    #90032

    ChadM
    Moderator
    East Palestine, Ohio

    My closing rate with new clients is about 2 – 4 out of 10. I also get a lot of tire kickers and people who ask for an “itemized estimate with a materials list”. I explain to those people that I don’t line item my estimates and that I don’t include materials list in my estimate. I told the last guy that if he was just shopping for a materials list I would gladly put one together for him for $500 – he hung up on me.

    Chad

    A Working Pro since 1993

    Member since 12/07/2013

    #90142

    Rob
    Pro
    Birmingham, Alabama

    I was closing at over 90%.
    But I heard that 30% was ‘normal’ so I raised my prices.
    Then I was getting 60% and I heard that 10% was ideal for a growing business so I got a little more picky and got down to 30% closing rate.
    Nice pay, nice clients, I can live with not reaching my 10% goal.

    #90192

    kurt@welkerhomes.com
    Pro
    Owatonna, MN - Minnesota

    We close probably 50% ow what we “Bid” On a lot of jobs, we don’t have any competition. We have worked real hard to build a good name and reputation and provide a value approach. We are not always the cheapest but try to deliver the best value as a mix of price and quality.

    Of three new home builds we did last year, we did not bid against any one on any of them. We also have a few commercial clients that just have us do their work because we treat them fair and take good care of them.

    #90353

    DirtyWhiteBoy
    Pro
    Honolulu,, Hi.

    Maybe someday I’ll be legit enough to bid my own work?

    Dirty

    A Working Pro since 1988!

    Member since January 26, 2013.

    #90629

    Anonymous

    I don’t blame you guys for charging for an estimate because I know it takes time out of your day where you could be working and making money…But, On the other side of that in my personal opinion as a customer I would call the businesses that offer free estimates before I would pay for one. I think most people that are serious about getting some work done would appreciate putting the money into the job rather than into a piece of paper on how much the job will cost. JMHO ……With realtors I have the opposite opinion LOL. I would charge them as much as I could for an estimate for the same reasons some have stated above. Hmmm, Perhaps my dislike of realtors just popped up a bit again 🙂

    #90631

    Rob
    Pro
    Birmingham, Alabama

    We charge for all (pricing and design.)

    #90637

    kurt@welkerhomes.com
    Pro
    Owatonna, MN - Minnesota

    Unfortunately there are to many people around here that are willing to work for free. No one charges for estimates and the lumber yards will do design for their customers on the come hoping that it will turn into a job for their customer and sales for them.

    We typically do our own preliminary design for pricing. if we get the job we may do the balance of the design in house or sub it out depending on how busy we are.

    we get a lot of realtors calling for estimates to “fix” things on homes they are working with a client to buy. Typically the estimates are just used for their clients to get a better deal on the house and nothing is ever done with whatever we were asked to price.

    WE will only “Price” those things for realtors we have a good relationship with.

    #90660

    Rob
    Pro
    Birmingham, Alabama

    In order to get the nicest clients that are willing to pay a fair price for your service you will have to ‘kiss a lot of frogs’.
    So if you want a Million in new business your marketing plan better be good enough to bring in 10 million in leads.

    #90662

    redwood
    Pro

    Estimates are free designs are not

    Mark E.

    Pioneer, CA

    Working Pro 1972 - 2015
    Member since Jan 22, 2013
    www.creative-redwood-designs.com

    #90676

    mattryyc
    Pro
    Calgary, Alberta

    Design is a ton of work and also is a big part of your value, I wouldn’t ever give it away for free. Show some examples sure, but not perform a custom design ahead of time.

    #90693

    Rob
    Pro
    Birmingham, Alabama

    I spend days pricing a job and decided 20 years ago to start selling that service also.

    #90698

    kurt@welkerhomes.com
    Pro
    Owatonna, MN - Minnesota

    I wish I could do that. In our small town it would not fly. If I were in the Minneapolis metro about an hour away I think I could get by with it. We have to may “carpenters / handyman” here that are willing to work for wages only that it is tough enough to compete with their no overhead.

    #90699

    ChadM
    Moderator
    East Palestine, Ohio

    I wish I could do that. In our small town it would not fly. If I were in the Minneapolis metro about an hour away I think I could get by with it. We have to may “carpenters / handyman” here that are willing to work for wages only that it is tough enough to compete with their no overhead.

    Same here, too many guys who are willing to work for wages. The first thing most people ask when they contact me us if I give free estimates – I said no a few times just to see what the reaction was, I either got an “ok, thank you” and a hang up or just a hang up.

    Chad

    A Working Pro since 1993

    Member since 12/07/2013

    #90703

    Rob
    Pro
    Birmingham, Alabama

    I didn’t think that it could fly in my new small town either but I tried it anyway.
    It worked.
    By the way you do have to figure out how you are going to get them to say yes (make it valuable) but that learning curve can happen quickly.
    I wanted to say here that it CAN be done.
    Some years I make over 100K by just this service alone separate from my construction.
    So I figure that maybe others could do it also.
    I now know several others that have had success with charging.

    #90709

    redwood
    Pro

    Well I specialize in outside construction, decks, pergolas, siding, ect. Most people that contact me do not have plans yet. I tell them they need plans and that I can do them for a nominal charge, usually around $250. These are not for working drawings, conceptual only. Surprisingly, most are happy with this arrangement. Once they get the drawings, they are free to shop them around. Most do not and I get the job. It has worked out surprisingly well. I was skeptical whether it would work, but I was tired of doing things for free.

    Mark E.

    Pioneer, CA

    Working Pro 1972 - 2015
    Member since Jan 22, 2013
    www.creative-redwood-designs.com

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