Why a 90% Close Rate is Killing Your Home Service Business

Aim for a 70% close rate: If your close rate is significantly higher, raise your prices; if it's lower, refine your sales process and follow-up.

Recoup customer acquisition costs (CAC) within 30 days: Use interest-free credit cards for marketing and ensure initial customer revenue covers these costs quickly.

Assume a 20% profit margin for quick calculations: To cover a $100 CAC, you'll need to generate $500 in revenue from the customer within the first 30 days.

Implement an upsell culture: Train crews to identify and propose additional services (e.g., treatments, mulching) during initial visits to increase first-month revenue.

Utilize technology for upsells: Use mobile apps to capture and send video-based upsell suggestions from the field directly to customers, streamlining the process.

Require prepayments or deposits for services: Especially for larger projects, ensure customers pay a significant portion upfront to cover direct costs and improve your cash flow, rather than financing the job yourself.

Avoid financing growth with your own money: Leverage customer payments (prepayments, upsells) to fund marketing and expansion, creating an 'infinite money glitch' for sustained growth.