The “what to charge” thread got me wondering…what is your rate of bids vs jobs secured recently? By recently I mean in the last year or so as the economy has changed alot of things around.
I used to get about 50% of the jobs I estimated but now its down to about 25% as foks are telling me they can’t get financing. And I think they are right as you go by the site a few months later and nothing has been done so they are not going with someone else.
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Replies
Mike, what I believe you want is the closing rate. From someone who used to sell, if you are closing 50%, your prices aren't high enough>G<
25-35% is a better rate that you should aim for. In todays world, I think a 25% rate is admirable!!
Thanks frammer, I couldn't think of the term....
Lol...I hate when that happens.
I've got four, now looks like maybe five, jobs that said that I got the job, they would call to schedule for a few final questions and contract signing, then never called back. I called a couple and was told, "We'll call you when we know something" - which I take to mean, money problems.
Closing rate vs. all leads that come in (including the junk) is about 20%
Closing rate vs. the good leads is about 50%
Closing rate when they have already decided to hire me is 100%!
My closing rate is around 75%. I work mostly referals. I realize anyone with a sales background would tell me my rates are too low if I close that strong, but I'm also told about 75% of the time that I was the highest bidder.. I'm most positive I have never, not once, been the lowest bidder.
Even the referals usually shop my price after I give it, as they're most always expecting something lower. Be honest and close hard. Vic
We average around 40% based on number of proposals versus signed contracts and around 35% if you look it from a dollar value of those proposals.