If you are closing more jobs then ever at the same price level as last year then skip this column.

Customers still have the itch to improve their homes, some if not most, are scared about committing large amounts of their money during these uncertain times. Your choice, you can push for your normal sale, maybe even offer a large discount “to keep the cash flowing” and see a decrease in your close rate. Or, after careful consideration you could, like many successful remodelers around the country, choose to reduce your average sale by offering partials or offering your lower priced products first, thus potentially raising your close rate and preserving your profit margin.

The reasons for preserving you margins and broadening your customer base are quite simple. If a company is going to lose revenue, it must be done in such a way that there is still margin left over to position your company for significant growth as the recession ends. The No. 1 reason that companies fail is that they did not change their business when the market changed. That may sound simple but ask yourself, “Have I changed my business in the face of this changing market?”

Consider this example:

Company A:

Holds fast to its premium product as the main offering to customers. Close rates go down and costs go up as discounts increase. Here is what happens to the numbers.

Company B:

Changes tactics during recession to offer customers partials or offer their lower priced products first. Close rates hold steady. Margins are the same. Note that lower cost leads are an important but not necessary part of this approach.