CE Pro May 2021 - 53

ing my leads! "
They are dead wrong. Let
me tell you why.
Closing Percentage Is
More Cost Beneficial
to Tackle
First, leads don't send you
deposit checks; closed customers do.
Improving your closing
percentage is the quickest,
easiest and lowest-cost way
to increase your revenue. Before you think about adding
a salesperson, work on upping your closing percentage.
Salespeople take your time,
energy and a sizable investment to ramp up. I am not
saying don't hire a salesperson; just don't do it until you
master your close rate.
Based on all my anecdotal
evidence, I would estimate
the real closing percentage
of our industry is around
45%. The lower range is likely
30% and the sales dynamos
are closer to 60%-70%. This
means, on average, that for
every 10 proposals we create,
we close less than half. The
net result is nine projects for
every 20 proposals we create. Let's extrapolate that to
a more accurate yearly figure
of 100 proposals generated
and 45 projects closed (large
and small).
Now if an integrator wants
to grow, they think, " I need
more than 45 projects. I
need more leads! "
So if they want to grow by
15%, then they need approximately seven more projects.
They can achieve this two ways.
OPTION 1:
Acquire 16 new leads
At an average 45% close
rate, you would need 16

leads to generate seven
closed projects.
The process for accomplishing this? Make 75 phone
calls to set up 25 meetings
with architects, designers,
builders. This should net
about 16 new leads. Then
you will make 16 new client
meetings with an average of
20 follow-up/presentation
meetings. You will create 16
new proposals and approximately 25 total revisions of
those 16 proposals (a little
less than two revisions per
proposal). At the end of that
process, you will have closed
seven additional jobs.
Your time invested: roughly 250 hours.
OPTION 2: Increase your
closing percentage from
45% to 52%
By upping your close rate by
7%, you generate the seven
more projects that you need
to grow 15%.
Get better at winning
the birds in hand. Your time
invested: 0 hours (work
smarter, not harder).
So, here is question 1. Do
you have 250 additional hours
to spare? That is the equivalent of 6.25 work weeks!
Let's just say the answer is
no. You are already strapped
for time, and your wife and
kids often forget that you are
part of their family because
you are so busy keeping your
business running.
Question 2: Do you enjoy
creating and engineering
proposals that don't get approved? Another " No " ... unless
you are some sort of freak.
Increase Your Odds
by Learning Key Data
OK. With that out of the

Improving your closing percentage is the quickest, easiest
and lowest-cost way to increase your revenue.

way, we have a clear path
to success. Close more and
waste less time on creating
proposals that go nowhere
- and stop wasting time
with clients that aren't going
to write you a check.
Now, increasing your closing percentage is easier said
than done. You need to work
smarter, be strategic and
embrace competition.
Here are the steps to help
get you there:
Know the playing field,
find out these crucial pieces
of information.
1. What will it take to win? A
lot of integrators do not ask
this simple question because
they are afraid of the answer.
Ask your prospective client,
" What is the most important thing when choosing
a company? " and you may
be surprised by the answer.
Some may say they want
the best qualified company;
others may say they want
a guy that knows how to
explain systems to the wife;
some may say that they want
a company that is down the
street; others may say, " just
give me great price. " That last
one is the one we fear the
most. But the point is that
you don't know unless you

ask, and it's just as likely your
competition is not asking
that simple question. The
answer will determine your
next move and what you will
emphasize in your pitch and
proposal.
2. How many competitors
do I have? If they tell you
four or more, you may want
to run from this one. I have
bid on projects with seven
integrators competing. It
seems the lowest-price
trunkslammer always wins
those. If, on the other hand,
it is just you or you and one
other, you can devote more
focus on this close as your
odds are dramatically higher.
3. Who are my competitors?
This will be hugely helpful.
This gives you an opportunity to know if you are in
good company or competing
against a bunch of low-quality, low-ballers. Avoid the
temptation to disparage
your competition (it only
makes you look petty) and
take the opportunity to talk
about how you are different
and why that matters. If I am
competing against a bunch
of weak firms I sometimes
say, " I will be the most
expensive bid you get, but I

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CE Pro May 2021

Table of Contents for the Digital Edition of CE Pro May 2021

CE Pro May 2021 - Presentation
CE Pro May 2021 - Cover1
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