This morning, I got to speak to an awesome group of Fresh Coat owners in San Antonio, TX about closing rates and profit margins. Right now, I’m sitting in the airport… about to fly to San Diego and speak at the PDCA EXPO…
But I wanted to talk with you about closing rates and profit margins real quick.
Here’s the cold, hard truth… Your closing rates and what you can charge – your profit margins – has almost nothing to do with your local market or your low-priced competitors.
In every local market, you have people cutting hair for $12.00 and people cutting hair for $300.00. You have Kia dealerships and Mercedes dealerships on the exact same “automotive row.”
How can this be?
It’s simple: There is a large group of consumers in every market that value quality over price.
Here’s the problem: If you have high-quality painting services, but low-quality sales processes, you’ll end up selling “diamonds for dimes!” Why?
It’s because most painters spend all of their time “pricing” and very little time persuading.
They spend all of their time “scoping” and hardly any time “selling.”
4 Indicators of a WEAK Sales System That Robs the Owner of Money
• Pre-Positioning Is absent – This means there is ZERO communication between when the time estimate is set and when the estimator arrives.
• No Overview or Diagnostic Survey Upon Arrival – Essentially, the owner walks in, builds a little rapport, and says “Show me what we’re looking at…”
• Estimates Are Emailed – This using the weakest medium in existence to sell a service priced at $3,000 on average – it leads to spectacularly low closing rates (or money left on the table). But they can be useful.
• Flimsy Follow-Up – Once the estimate is written, a call or two may be made, but then the customer is written off (even though most customers can take a month or more to make a high-dollar decision.)
Do you have any of these warning signs in your sales system?
If so, email me. I’ll help you fix them.
Now, it’s time to fly the friendly skies. Talk to you soon!