Let's be honest: How often do you sit at your desk in the evening, writing quotes, meticulously calculating everything – and then never hear back from the customer? This is frustrating, consumes valuable resources, and robs you of time you should be spending on the construction site or with your clients. The most important lever to solve exactly this problem is your conversion rate.
What is the Conversion Rate – and Why is it So Important?
The conversion rate (or order conversion rate) shows you in black and white how many of your sent quotes actually turn into a paid order. The calculation is simple: If you submit ten quotes and secure five orders, your rate is 50 percent.
Why do you need to know this number? Because a low rate means you're doing a lot of unpaid office work, as your quotes go nowhere. A strong conversion rate, on the other hand, saves you an enormous amount of time, makes your calculations more reliable, and brings predictability to your business.
How to Calculate Your Conversion Rate
The formula for this is simple and can be quickly calculated in your head:
Anzahl der gewonnenen Aufträge / Anzahl der abgegebenen Angebote * 100 = Abschlussquote in Prozent
An example: Last month, you sent 25 quotes. Of these, 15 became confirmed orders. Your conversion rate is therefore: 15 / 25 * 100 = 60 %
What is a Good Order Conversion Rate in Skilled Trades?
The exact number naturally varies depending on the trade, region, and market situation. However, as a solid guideline: an order conversion rate between 40 and 60 percent is absolutely healthy in skilled trades. If you consistently fall below the 50 percent mark, you should take a closer look – there's an urgent need for action here. Top businesses in the construction trades even achieve conversion rates of 70 to 80 percent according to the handwerk magazin. So there's plenty of room for improvement!
Improve Your Conversion Rate with These 5 Levers
There are some clear adjustment screws you can turn immediately to turn more quotes into actual orders.
1. Be Quick and Precise
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The 48-Hour Standard: Ideally, send your quote within two days of the on-site measurement. Quotes that only reach the customer after more than a week drastically lose relevance. The customer often changes their mind or the project cools down.
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Quality Over Quantity: A quote is your professional business card. It must convince, not just state a price. Pay attention to a detailed service description, exact material specifications, itemized labor and travel costs, as well as clear net and gross prices.
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The Extra Tip: Address the customer directly. At the beginning of the quote, briefly summarize their wishes and show how your service precisely fulfills them. This immediately builds trust.
2. Following Up is a Must, Not an Option
Many tradespeople shy away from picking up the phone. Yet, active follow-up is the most important step to securing an order. It has nothing to do with begging; it's professional service.
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The 3-Day Check: Get in touch briefly three days after sending. Simply ask if the quote was received well and if there are any initial questions. This comes across as engaged and unobtrusive.
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Bring in a System: A quote rarely sells itself. A fixed follow-up plan (by phone or email) is mandatory.
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quidly helps you with this: Digital assistants like quidly take this work off your hands. They automatically and reliably remind you to follow up, without you having to clutter your mind with sticky notes. This way, you always catch the customer at the perfect moment.
3. The Right Price – Transparently Calculated
Your price must be fair, cover your costs, and yield a healthy profit. A solid calculation is the foundation. Equally important, however, is transparency for the customer. Clearly demonstrate how the sum is composed without getting lost in technical jargon. Anyone who clearly separates material, labor, and travel costs builds trust and signals: There are no hidden costs here.
4. Utilize References and Guarantees
Customers buy from businesses where they have a good gut feeling. Especially with large budgets, they want to know that their project is in professional hands.
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Show Successes: Have you successfully completed similar projects? A quick reference to portfolio images or customer testimonials on your website works wonders.
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Provide Security: If you offer special guarantees on your work, clearly state this in the quote. This eliminates final concerns and strongly sets you apart from the competition.
5. Employ Digital Helpers
Office work consumes time. Digital tools provide valuable leeway here.
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Tradesperson Software: Helps you create quotes error-free and quickly by directly accessing stored material prices.
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CRM Systems: They give you the perfect overview of all customers and the status of open documents. If you integrate modern tools like quidly into your daily routine, you optimize the entire process and see exactly where untapped potential still lies.
Legal Aspects of Quotes: What You Need to Know
In skilled trades, there are a few legal ground rules you should be aware of:
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Binding Nature: As soon as the customer accepts your quote, you are legally bound by it (§ 145 BGB). The price and service are then fixed.
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Cost Estimate vs. Quote: A cost estimate (§ 650 BGB) is usually non-binding. Price increases of 15 to 20 percent are often tolerable here. If it gets more expensive, you must inform the customer beforehand, otherwise, you will bear the costs yourself.
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Set Deadlines: Specify a validity period in every quote (e.g., 4 to 8 weeks). Without a deadline, the legal provision (§ 147 BGB) applies, according to which a quote is valid for as long as a response would be expected under normal circumstances (often 5 to 7 days). A clear date specification saves you from this gray area.
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Retention Obligation: Quotes that later result in an invoice must be archived for 10 years (§ 147 AO). All others must be retained for at least 6 years (§ 238 HGB).
Caution with Door-to-Door Orders: Your Right of Withdrawal!
If you conclude a contract with a consumer outside your business premises (for example, directly at their home or on the construction site), special consumer protection has been in effect since June 13, 2014. Your customer then has a 14-day right of withdrawal and can withdraw from the contract without stating reasons. You must inform them about this right! Don't forget this, otherwise the customer can still withdraw later.
GDPR and Customer Data
When writing quotes, you process sensitive data. Adhere to the basic rules of GDPR: Only store the data you truly need for processing, and use it exclusively for this specific purpose.
Note: This article is not legal advice. In case of doubt, your Chamber of Skilled Trades or a specialized lawyer can help.