Business Results Survey: Sales

Remodeling companies are running small sales operations

Jonathan Sweet, Senior Editor
April 1, 2009
Professional Remodeler

Lean sales operations

Most companies are running small sales operations, with an average of less than one salesperson besides the owner. In fact, 58 percent report no salespeople besides the owner. That number increases to 74 percent for firms under $1 million in sales. More than 90 percent of companies have three or fewer salespeople.

Ninety percent of owners spend at least some of their time selling projects. Those owners who do sell spend an average of 34 percent of their time on sales.

More than half of companies reported a drop in leads in 2008, compared with only 36 percent who saw leads drop in 2007. Still, 23 percent of companies did see lead activity increase in 2008. There was a strong correlation between lead activity and revenue. Of those that saw an increase in leads, 70 percent had higher sales in 2008, while 79 percent of companies that had a decrease in leads had lower or unchanged sales.

About half of qualified leads become sales. Companies reported converting 49 percent of qualified leads to sales in 2008. (We defined qualified as someone the remodeler met in person or at least provided a ballpark price.)

To read more of our survey, click the links below:

Examining the depths of the downturn

Revenues take a plunge

Labor is top expense

Small workforce the norm

The amazing shrinking job

Repeats and referrals dominate

Lean sales operations