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View Full Version : what % of your referrals do you close?



huggytree
06-06-2009, 04:27 PM
i get alot of referral calls these days...its nice....after 2.5 years my name is all around....

i close 75% of the small jobs vs 25-40% of non referral jobs

i close around 50% of large jobs vs 50% of non-referral jobs

there are so many guys begging for work right now that im becoming a high price plumber just by keeping my prices the same as last year.

from talking w/ other business owners referrals are almost 100% work guarantee....ive never found that to be the case at all....better than average=yes, but not even close to 100%

my favorite referral calls is where they dont even discuss price...just 'come over and do it for us'.....thats a good referral!...i had 2 of those this week.

Steve B
06-06-2009, 05:57 PM
I close about 80% of referrals. If I don't close it - they usually are putting the job off completeley and not going with a competitor.

huggytree
06-07-2009, 08:58 AM
Steve B

do you normally find people have realistic idea's of what your fences cost? do your prices suprise them?

I find my costs to be about 2x what people would expect. I get alot of people who think you can remodel a bathroom for $4k when the national average is $15k

for an average city lot id expect to spend $4k on a fence around the whole yard...how far off am i?

that may explain why my small project referrals are the same as your overall referral %

i am just estimating the 50% close on large projects in my head...sometimes i get 100%, sometimes i seem to get 10%...it goes in spirts.

Steve B
06-07-2009, 09:28 AM
I'm guessing you are thinking I put up traditional fences. I put in the "invisible" type of fencing which requires burying an antenna wire - and training the dog to respond to a warning tone. You can visit my website for lots of detail.

Now, how much do you think I would charge for a typical sub-division lot of less than 1/2 acre? Let's assume 1 dog and no unusual obstructions. I'll give you the answer after you give me your answer.

I get all types of reactions to my price. Sometimes I've done the job for a customer that was referred to me and I realize we never talked about price yet.

Baseline
06-07-2009, 10:01 AM
Depends on the economy, as well. I'm in a Development related field. I used to get almost all referrels- now I get shopped for price, and it is way down. So in good times? 90-95%. Now? Less than 50%- and I have to gently let them know I'm cutting a deal for them.

orion_joel
06-08-2009, 03:25 AM
You have to be wary when people quote numbers that seem to good Huggy, eg if people are saying i close 100% of referrals, maybe they are writing off the referrals that were price shopping. Or maybe they believe if they close the sale they are a good referral, and they only get 10% of cold calls.

The danger in the low expectations comes a lot from some of the home design and development shows that you see. I mean i do not know how many times i have seen a story on some tv show sprouting that you can get your whatever remodel for a lot less then you think, and they do all kinds of different things for such low prices compared to what a proper tradesman will charge. But the Tv shows dont care because they get viewers, what they leave behind though is this painful mess that you have to try to deal with.

phanio
06-08-2009, 02:13 PM
I find my costs to be about 2x what people would expect. I get alot of people who think you can remodel a bathroom for $4k when the national average is $15k

Most of the time people think that if someone is referring them it is because they got a deal and want one too.

Could be good for you to spin the table and say that won't cost $4K but you will get the best $15K job you will ever receive.

Vivid Color Zack
06-08-2009, 04:35 PM
Most of the time people think that if someone is referring them it is because they got a deal and want one too.


Sometimes, but I think a lot of times it's someone who is competent and capable, rather than using someone you have never heard of before.

That's especially true for mechanics I think. I have gone with more expensive shops that have a solid reputation over a shop where a friend tells me he can get me "a good price." This is for major services or repairs though I do most of my work on my cars myself. I don't like people touching my car. haha.

huggytree
06-08-2009, 08:10 PM
id think invisible fencing for 1/2 acre would be $3k

i have NO IDEA what the cost could be....but i wouldnt be suprised if im 1/2 price on this one....

Steve B
06-09-2009, 05:40 AM
That 1/2 acre job for 1 dog would be $849.

I get all reactions. Some people are surprised at how little it is and others see the cheap systems at Home Depot for $129 and think it might be a couple hundred to have a professional system installed.

KristineS
06-09-2009, 12:54 PM
Personally, as a consumer, I like referrals, they're helpful. Right now, for instance, I'm thinking about getting my condo painted, and I'm talking to everyone I know in hopes of getting painter recommendations. I'd just feel more comfortable working with someone who has been recommended by someone I know and trust.

huggytree
06-14-2009, 09:54 AM
wow i was that far off...id up my price!

everyone can afford $850

to remodel a bath the national average is $15,000

not many people have $15k

just to swap out a bath tub and replace toilet/sink/valves its $2k+ to do it right....most people repipe the water/drain while they are doing it...so add $400-500

do they make the invisible fences for kids? maybe we could put to collars together to make them big enough?....a new market for you?
\

Steve B
06-15-2009, 07:43 AM
I get that quesiton a lot. It will work very well with kids - as long as they don't learn how to take the collar off.

Ad-Vice_Man
06-15-2009, 10:42 AM
Steve, that is a fantastic price. i would have guessed about $1200.

But I suppose it all depends on the dog your protecting. would i spend $900 on a stray that I adopted. Maybe maybe not depending on how emotionally attached and if I had kids or not.

But for the $1000 labradoodle i purchased.. you bet I would!