Last Chance to Fill Out The Survey

Hello once again. Good Friday to you. Thanks to all of you who filled out that extremely long survey about which estimating program you are using. What was it – 4 questions? About a minute? Anyway, the results will be out soon and they are very interesting. If you haven’t filled it out and want this valuable report, fill it out now and you’ll be one of the lucky ones.


A Bird’s-eye View of Your Business

This week we are going to be flyin’ high. Let’s climb to 10,000 feet and take a look at your business. What does it look like from that altitude? You can’t see way into the future from this height, but you can see how your year is progressing. 

In particular, take a look at your sales, presentations (sales calls), how many jobs you closed, and your projected gross profits on each project. I call this your Sales Overview Report.


A Better Way to Look at Your Metrics

One of the best ways to do this is to build a spreadsheet. Even writing the numbers on paper will work. How you enter this data is secondary to just doing it. What these numbers will tell you is how your sales force is performing, and what you can expect in gross profits on any month of the year that has data.


Here’s How…

Here’s how to build the spreadsheet. Start with a header row across the top with the months of the year and end the row with a Year-to-Date column where you will total all of the months on the last column on the right. (Leave the first cell on the left blank, then start your months; January, February, etc.)

Below the header, down the leftmost column, put the following fields:

1. Number of Leads – the cells in this row contain a formula – ‘Total Leads’ – this number will be gathered from the Lead Source totals below)

2. Number of Sales Presentations (Sales Calls) – you’ll enter this data manually

3. Lead to Sales Presentations – the cells in this row contain a formula – ‘Number of Sale Presentations’ ÷ ‘Number of Leads’

4. Number of Sales Closed – you’ll enter this data manually

5. Sales Presentations to Sales Closed Ratio – the cells in this row contain a formula – ‘Number of Sales Closed ÷ ‘Number of Sales Presentations’

6. Total Dollars Volume of Contracts Presented – you’ll enter this data manually

7. Total Dollars Volume of Contracts Lost – you’ll enter this data manually

8. Total Dollar Volume of Contracts Won – the cells in this row contain a formula – ‘Total Dollar Volume of Contracts Presented’ − ‘Total Dollar Volume of Contracts Lost’

9. Average Price per Job – the cells in this row contain a formula – ‘Total Dollar Volume of Contracts Won’ ÷ ‘Number of Sales Closed’

10. Projected Gross Profit – the cells in this row contain a formula – ‘Total Dollar Volume of Contracts Won’ × 0.33 (where .33 is your expected gross margin percentage)

11. Average Projected Gross Profit per job – the cells in this row contain a formula – ‘Projected Gross Profit’ ÷ ‘Number of Sales Closed’

[Note – on item 10 you can adjust the number, which is this case is .33, to any number that matches your margin expectations. A 33% margin means that you are marking up your hard costs 50% or using a multiplier of 1.5. For example, a hard cost of  $10,000 x 1.5 = $15,000 leaving you with a gross profit of $5000 or a 33% margin. If your multiplier is 1.25 then your margin in the formula is .2 – gross profit divided by sales price = your margin]

Below that create a column of Lead Sources, i.e., where each lead came from.

Here are some examples:

  1. Your Web site
  2. Newsletter
  3. Newspaper
  4. Home Show
  5. Business Card
  6. Flyer
  7. Repeat Client
  8. Radio
  9. Yard Sign
  10. Truck Sign
  11. TV
  12. Word-of-mouth
  13. Yellow Pages
  14. Billboard
  15. NAHB Remodeler’s Council
  16. NARI Chapter
  17. BNI
  18. Linkedin
  19. Twitter
  20. Facebook
  21. Pinterest
  22. Google+
  23. Houzz
  24. Total Leads – the cells in this row contain a formula – SUM(Column of lead source numbers)

Click on the thumbnails below to see an example of what your spreadsheet might look like. 


Sales Overview Report small

 Lead Source listSales Overview Report portion




The Benefits

If you are building 12-200 projects per year, entering this data is relatively easy. That’s only 1-18 projects per month. A spreadsheet like this will provide you with meaningful numbers that will keep you abreast of where you are and where you are headed. You’ll be able to see trends, seasonal spikes and dips, your sales performance, and even how effective your marketing is. With your projected Gross Profit data, you can assess whether you are selling enough jobs. All with a very simple spreadsheet. 

It won’t take to long to build this spreadsheet and it will pay off in spades. Spend a few hours this weekend and assemble yours. Customize it to your business. And literally watch it flourish. 


Premium Scientific Remodeling System Members 

Scientific Remodeling System Premium Members can download the complete spreadsheet in Excel format at Downloads>Sales on Email me if you need it in Numbers format.


Wishing you the best of fortune, Randall

Randall S Soules
Remodeling coach, adviser, and educator
My one-on-one coaching will take your remodeling business to new heights!

This article was written by Randall Soules, creator of the Scientific Remodeling System, showing you easier ways to advance your business, raise your profits, and improve your life, through the use of superior  remodeling processes. If you would like to learn more about this eCourse, click here.

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