Increase Your Revenue By $100,000 This Year By Breaking It Down Just Like This…
Do you want to increase your yearly sales by $100,000?
I was just asked, “How do I increase my sales by $100,000? What do I have to do?”
The number sounds big, but what do you actually have to do?
So, we did a breakdown, this was a member of the DYB group that asked, and it was so easy once we had the numbers and once we had a plan in place.
I want to show you with roundabout numbers, how easy it is to attain that $100,000 if you look at it in smaller pieces. It’s like how we say, how do you eat an elephant? One bite at a time.
So, instead of just putting $100,000 extra amount of money that you want to gross this year, let’s make a plan on how to get that, it’s amazing how easier it looks once it’s all broken down.
So, I put on this whiteboard here… We are going to explain it as I go through, so you will see in the green on the top, it’s the $100,000, so I am going to get this straight so you can actually see it.
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The $100,000, what we have to know is a couple fact, not a lot. We need an average job size, I rounded all these numbers so the math would be a little easier, but you should know your average job size.
If you don’t know, you can look at your gross sales last year, or last month, how many jobs were completed and divide it, that would be your average job size.
In this example, we have a $4,000 a month average job size. As I said, I rounded this up so the math would be a little easier to show on the board here.
$100,000 divided by the $4,000 is 25. So, its 25 jobs extra done this year will bring us to our $100,000 increase goal. So we know right now, we know our $4,000, we know we need to do 25 more jobs.
Well, at least now, instead of just saying we want to make $100,000, we actually know how many jobs we have to do.
So, now we have to figure out how we are going to get these 25 jobs. So, the other very important number is your close ratio.
Your close ratio is, if you went on 10 estimates, how many of them would you land?
Some of us, depending on where the leads are coming from, where these phone calls are originating from, is sometimes where they are going to come.
If they are just finding you off your Google page, they are finding you as a flier that was stuck in a mailbox, sometimes if they are just finding you from your truck driving by, they don’t know what kind of company you are.
They don’t know what kind of work you do, so your close ratio might be lower if you are actually closing these people, your pricing might scare them off.
But if you are working for us, we work with a lot of past customers, past customer referrals, we actually screen our calls coming in, ask them questions before they are allowed to book an appointment.
Our close ratio is a little higher than 50%. So, we know our average job size is $4,000, we know we need 25 extra jobs this year to reach our additional $100,000 goal. We know we have a 50% close ratio.
So, we know now that, because the close ratio is 50%, so if you times the 25, we need 50 additional leads coming through the door.
And at 50% close ratio, so we are going to close half the leads that come through the door, so we need 50 leads, if we close half of those, that would reach our 25.
Depending on those, you can actually plug in your own numbers there, if you don’t know your close ratio, you should really take a look at that, you take a look at your average job size.
So, we know we have 50 additional opportunities to bid on things, to increase our $100,000.
So, at first, we were looking at, we needed an extra $100,000, now we are breaking it down, now we know we have to complete 25 jobs, and we need 50 leads, how are we going to get those leads?
Networking, Facebook advertising, depending on how you are going to get it, but what a great part is, is to increase that $100,000, you need to close less than 1 lead a week. That is pretty cool, that is more or less 1 lead every 2 weeks.
Now we are going to work on the additional crew to take care of that additional work, and if you want to increase this by $20s0,000, just double all of these.
Of course, you are not going to double your close ratio, you are not going to double your average job size.
You are going to double the amount of jobs you need to close, and you are going to double the number of opportunities that you need to bid on with your close ratio of 50%.
If you want to actually do less bidding, what you have to do is work on increasing your close ratio. I hope this little quick snapshot helped? I’d love to be able to go over this with you, tailor it to your own.
So, if you would like to reach out to me, I am firstname.lastname@example.org, it’s late at night when I put this up, I just thought of it right now.
You can also find me on Facebook, I’d love to chat with you, send me a message, and comment on this.
If you would like to go over and see if we could figure out how to increase your sales by $50,000 or $100,000 or maybe even close up your close ratio so it is a little higher, I would love to talk to you.
I am Ron Ramsden, and I am a DYB coach, I am also a painting contractor up here in New England, enjoy the day.
I help painters work on their business, so they don’t have to work in their business, have a great day, happy selling!