Mike Andes says a 90% close rate means your prices are too low. In profit mode, aim for 30-50% instead. If you're closing almost every estimate, raise prices until you hit that range and can stay at capacity without chasing leads.
you're going to obsess over your close rate. And you might have heard, well, you said obsess about close rate. What close rate should I be if I am a solo operator and I am in profit mode? Between 30% and 50%. Okay. I don't want you to have a 90% close rate and you're like, well, I'm in profit mode and I'm focused on my close rate. Okay. Profit mode means that I'm able to get enough customers on a regular basis from Google Business Profile, from my ranking automatically on Google because I have a great design. From all the reviews that I have, I'm drawing in enough traffic and referrals to replace my churn. I do not need to have a super high close ratio. I don't need every single estimate saying yes. If they're saying yes that often, 90, 95% of the time, your prices are too low. And so I've got to raise my prices to the point, 'cause I'm in profit mode, between 30 and 50%, I want people saying yes. And if you're like, well, I can't do that, I've got to keep my schedule busy, then we're not in profit mode. Because we're not to capacity. The whole objective is we get enough work to where we're at capacity, and then we raise prices, and by raising prices, you reduce your close rate. And so for someone to say like, oh, I have a 90% close rate, but I'm in profit mode. No, no, you have not raised prices enough to be able to reduce close rate to the point of 30 to 50%. And make sure that you're at this close rate because I've gotta be in profit mode and making money.
