Mike Andes breaks down close rates into four bands to guide pricing and sales strategy. Over 70% means raise prices. Aim for 50-70% when chasing growth, 30-50% when prioritizing profit. Below 30% signals a problem in your follow-up or response speed.
If your close rate is over 70%, in other words, more than 70% of the estimates you send get accepted, you need to raise prices immediately. Now, if you're trying to grow the business, I'm usually going to target your growth rate between 50 and 70%. And if you're in profit mode and trying to optimize for profitability and you're raising prices, then I want your close rate to be around 30 to 50%. Now, if your close rate is under 30%, meaning that less than 3 out of 10 estimates that you send gets accepted, I really need you to diagnose your sales process. Your follow up Are you emailing? Are you texting? How quickly are you getting to the customer? These are all problems with your sales process that are causing you to have a very low close rate.
