3 Easy Steps to Plan Roofing Sales Like a Pro
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Every year so many roofers either fail to hit their goals, or worse, didn't have any to begin with. Ask someone what their revenue goal is and a typical response might be to make more than last year. Ask them what their lead conversion rate is and you might get a blank stare...
A goal without a plan is simply a wish and if there isn't a defined target, with a successful way to get there, then the rate of success plummets drastically.
In our culture it's so easy to fall into the trap of spending time being busy rather than being productive happens which eventually leads to frustration, burn out and quitting. Sales is hard, owning a business is hard, but when you're harder on your self then life is much easier.
With just a bit of organization, being intentional with your actions, and setting a routine to plan your year you can achieve way more than you may have originally thought.
It starts with having a plan, which can be made in just 3 easy steps:
- Know you're numbers
- Determine how much you need to sell
- Decide how much you're going to make
Know your numbers
Key Performance Indicators, or KPIs, are like a scoreboard for a business, team, or project. Just like in sports, you use the scoreboard to see how well you're doing in the game, KPIs help people check how well they are doing at reaching their goals.
For example:
- If you’re trying to win a race, your KPI might be how fast you can run.
- If a business wants to sell toys, a KPI could be how many toys they sell each week.
- If you're a student, a KPI might be your grades on tests or how much homework you finish on time.
KPIs are numbers or facts that tell you if you're on track or need to work harder to hit your target. They’re simple ways to measure success!
For roofing sales the 5 most common KPIs are:
- doors knocked
- pitches
- leads
- contracts
- revenue
This is your sales funnels and if you're experienced in roofing sales and have got a track record already built up then you can either build on what your typical performance is or shoot to stretch yourself further.
If you are brand new or just getting started don't worry. Use company averages if they are known or Google industry averages for your area.
Heck, in all honesty, you can simply make up your assumptions although just make sure they are realistic. Just make sure it's an educated guess.
For this exercise to work you'll need the following KPIs:
- Quantity of leads
- Close rate
- Average contract value
Leads
Start with how many leads you will need or aspire to achieve throughout the year.
Let's say you have no earthly idea so let's choose 400 for example purposes. Figuring out how to get those leads is another matter altogether but most people stick to door knocking as their primary activity.
Of course, you've got to knock a lot of doors to get some opportunities to then pitch/offer your services that will then eventually result in them becoming a lead.
For example, we'll say that for every 100 doors knocked then 15 people will give you an opportunity to pitch your services. From there let's say that 30% of those people will actually be open to possibly buying your services and therefore become a lead.
In this case, if the goal is to get 400 leads for the year then it will take 8,889 doors knocked, with 1,333 pitches (15%) being made, that on average will result in the amount of leads needed.
Sounds like a lot right?
Well every goal worth working towards does until you break it down into it's most basic manageable chunks. In this case if you knock 34 doors a day, pitch 5 people, and get 2 leads then you'll hit your overall goal. Easy right?
Close rate
Alright we've got our leads figured out of what we can reasonably expect to acquire. Now the next step is to determine how many contracts we can sell for the year.
This is going to be determined by your sales close rate.
A sales close rate is like keeping track of how many times you win when you’re trying to sell something. Imagine you're trying to sell lemonade at a lemonade stand. Every time someone comes by, you ask if they want to buy a cup.
- If 10 people stop by and you sell lemonade to 3 of them, your close rate is 3 out of 10, or 30%.
- It’s like a score that shows how good you are at turning “maybe” into “yes.”
A higher close rate means you’re really good at convincing people to buy, and a lower rate means you might need to work on your sales pitch!
Average contract value
Your average contract value is like figuring out how much money, on average, you make each time someone buys something from your. Let's say you're selling the following:
- One person buys a roof replacement for $15,000
- Another person buys a repair for $20,000
- A third person buys gutters for $10,000
To find the average you add up all the sales:
$15,000 + $20,000 + $10,000 = $45,000
Then, divide that by the number of people who bought:
$45,000/3 = $15,000
So, your average contract value is about $15,000. It's just a way to see how much each sale is worth on average.
How Much Do You Need To Sell
Now let's say your close rate is 30%. We multiply that close rate by the number of leads which means we should aim for about 120 contracts for the year (400 leads x 30% close rate = 120 contracts).
Finally, we find out how much revenue we can shoot to generate by multiplying the number of contracts by the average contract value.
120 x $15,000 = $1,800,000
Your plan would look something like this:
- Revenue: $1,800,000
- Leads: 400
- Close rate: 30%
- Contracts: 120
- ACV: $15,000
Now you can just break these down into manageable chunks to hold yourself accountable for monthly, weekly, and daily targets.
How much do you want to make?
The beauty of roofing sales is that the income opportunity is uncapped. The only limiting factor is your beliefs and the reasonable skills you have to achieve your goals.
Other than that you have the opportunity to make in week what many people in our country make in a month.
What motivates you and drives you?
Is it providing a certain lifestyle for you and your family, or buying that dream home, or taking that big vacation?
There's a reason why you're going to dedicate yourself week after week to hit your sales targets. It might simply be to make more than you ever have before. Maybe it's $100k or $200k+.
Dream big and challenge yourself.
Tweak and play with the numbers. You may be pretty good at sales and so you increase the close rate. See how big of a difference of just 5% in your close rate affects your income.
For instance, if you took the same example and increased the close rate from 30% to 40% then that means an additional 40 contracts. That's a massive $600,000 increase in revenue!
Think of how big of an impact that would be on your life.
Maybe your ACV is can be increased by offering higher end products or upgrades. Perhaps you can be a MARKETING MACHINE and drive leads like no other.
Skills truly pay the bills.
Take action now
You've got the vision, you've made your goals realistic, now it's time to do the work.
Using a sales tracker to stay organized, focus your efforts, and identify trends and areas to improve will be a huge benefit in getting you to your next level. You can use a physical planner, such as the performance planner plus, or create a spreadsheet.
Track your activity because that's truly the only thing within your control. You can only measure what you manage. The results will come naturally as a byproduct. Whatever else you think is key to your success then go ahead and track it but keep it simple at first.
Now go out and SMASH your income goals and live the life that you deserve!
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