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Achieving your business’s revenue goals requires more work than simply setting and forgetting a target. It requires a deep understanding of the metrics that shape your profitability.
To reach your revenue goals, you’ll need a strategy to maximize these key metrics. In this blog post, we’ll go over what metrics impact your revenue goals and show you how to maximize these benchmarks.
Let’s dive in and discover how contractors can achieve high revenue goals by working smarter, not harder.
Maximize Efficiency to Reach Revenue Goals
To achieve your business's revenue goals, you need to understand the key metrics that impact your profits. You need to identify the metrics that will directly contribute to your revenue generation and help you reach your sales goal.
Looking at the Right Metrics
So, what metrics impact your goal? And how can you maximize your efforts? Let’s take a closer look at some metrics through an example.
For our example, let’s say you want to hit $10 million in annual revenue. This is a lofty but achievable goal for a roofing company. However, it will require a lot of hard work.
What Is the Average Job Size for Roofers?
To hit $10 million in annual revenue, you need to know your average job size (AJS). From there, you can calculate how many jobs you’ll have to complete during the busy season.
According to Forbes, the average job size for roofers was $11,500 in 2023. We’ll use this average for our revenue outline plan today, but keep in mind your business’s AJS may differ from this average.
To reach your $10 million revenue goal with an AJS of $11,500, you’ll need to complete an average of 870 jobs per year. However, the roofing season typically doesn’t last 12 months.
Instead, you realistically have about six active months of selling, depending on where you operate. That means you’ll need to close 140 average jobs per month to hit your goal.
Understanding the Impact of Your Close Rate
Your AJS isn’t the only metric that impacts your revenue goals. Close rates also play a huge role. The typical industry-standard close rate is around 25%.
Based on an average 25% close rate, you’ll need to complete 560 estimates per month to reach your goal of closing 140 jobs monthly.
Additionally, based on an industry average booking rate of 50%, you’ll need to generate 1,120 leads monthly to reach your goal of 560 estimates per month. This isn’t impossible for a hardworking contractor like yourself, but it is a lot of work.
The Right Tools Empower Your Business to Reach Revenue Goals
What if we told you that you could achieve these same results with about half the work? You’d probably be asking yourself how that’s possible.
With SumoQuote, contractors can boost their AJS and close rate. That means you won't have to close as many jobs, generate as many leads, and complete as many estimates monthly.
So, how exactly does this work?
Let’s compare these numbers side by side. In the following table, we’ve broken down how increasing your average job size and boosting your close rate can impact the numbers.
By using SumoQuote, contractors can achieve their $10 million revenue goal with significantly less effort.
In 2023, the AJS for SumoQuote users was $13,271, which is 15.4% above the national average. Additionally, SumoQuote users report a higher close rate of about 40%. These increases can have a huge impact on your bottom line.
Work Smarter with SumoQuote
Building a sustainable and profitable business won’t happen overnight. It takes dedication and a lot of hard work. However, you can maximize your efforts when you invest in the right tools.
SumoQuote’s features can be a game-changer in meeting your revenue goals. With features like eSignature, Price Lists, Calculations, and customizable templates, building estimates has never been easier.
SumoQuote users see an average increase of 64% in their competitive close rate. With upgrades, our users also report an average of $2,078 upgrades sold per signed proposal.
You can achieve the same results with half the effort, leading to a substantial boost in your business's profitability. Don't miss out on this opportunity! Book a demo with SumoQuote today and witness the transformative power of our tools firsthand.
