Imagine what a contractor could do with extra money that resulted from simply closing more sales. It could be technology investments, new equipment, or even additional staff to give them a competitive edge.
Contractors willing to put the work in can do more than imagine it. In the first of three videos, RC Publisher Jill Bloom speaks with Ryan Groth, CEO of Sales Transformation Group, on how his sales method helps businesses identify their closing ratios and improve them.
Groth draws on a background of guiding more than 500 contracting, trades and building materials businesses to new levels of profitability to explain how contractors can improve their business by increasing their sales closing ratio.
He explains how knowing your closing ratio applies to all business models on both the residential and commercial sides. If a company can improve the number of sales it receives, that is money and time they can instead invest into their company.
“I think that the biggest fear that most of us have is do I have enough money and enough work coming in to keep my crews busy that I invested time, money and resources in; my salaried employees, the people I care about and the things I want to do with my business,” he said. “You have to know your closing ratio, and that’s just a fundamental fact.”
As an example, Groth shows how a residential company hoping to earn $10 million would have to knock on 12,500 doors if each contract averages $20,000 with a 20% closing rate. A company with a 40% closing rate, however, would only need to knock on 6,250 doors with those same parameters.