What's a sold threshold?Last updated on 03/22/2022
A sold threshold is a job type setting that determines the dollar amount subtotal when a job is considered closed or converted. This helps you run reports on how effective your team is selling and performing jobs you consider to be valuable to your business.
How sold thresholds work
The sold threshold is a tool used to analyze completed jobs. It helps you focus on the jobs that help you stay profitable and not just any job with a positive invoice subtotal.
The sold threshold allows you to set the dollar value for when you consider a job to be valuable. For example, if a $50 plumbing repair is worthwhile to your business, you can set the sold threshold to $50. A completed plumbing repair job is considered an opportunity, but only jobs that meet or exceed the sold threshold are considered converted opportunities.
You assign different sold thresholds based on job type. For example, a $75 maintenance visit might be worthwhile, but a $75 HVAC install probably is not, so you would set a higher sold threshold for install jobs.
By setting sold thresholds for all your different job types, you can run reports to measure your sales team’s close rates and to measure your install, maintenance, and service teams’ conversion rates.
Sold threshold—A job type setting where you set the dollar amount that you consider a job is sold or converted.
Sold job—A sales job where the sum of all sold estimates meets the sold threshold. Sold jobs are also referred to as closed jobs.
Converted job—A service, maintenance, or install job where the invoice subtotal meets the sold threshold.
No Charge/Unconvertible by default—A job type setting that, when enabled, marks jobs as No Charge. Typically, this includes recall and warranty job types.
Note: You can add invoice items to No Charge jobs. If the total of sold estimates or invoice subtotal meets the sold threshold, the job is considered a closed or converted opportunity and is included in close or conversion rate calculations.
Sales jobs metrics
A sales job is any job where estimates are created and presented to customers.
Sales opportunity—A job that has the potential to become a closed opportunity. Basically, a job that is not No charge or Unconvertible.
Closed opportunity—A completed job where the total of sold estimates meets the sold threshold.
Close rate—Number of closed opportunities compared to the number of sales opportunities.
close rate = [count of closed opportunities] / [count of sales opportunities] * 100%
Service, maintenance, and install jobs metrics
Job opportunity—A job that has the potential to be converted. Basically, a job that is not No charge or Unconvertible. Also known as a demand call.
Converted opportunity—A completed job where the invoice subtotal meets the sold threshold. Also known as a demand money call.
Conversion rate—Number of converted opportunities compared to the number of job opportunities.
conversion rate = [count of converted opportunities] / [count of job opportunities] * 100%
Set your sold threshold to at least $1
If your sold threshold for a job type is $0, all completed jobs—including No Charge jobs—are considered to be converted, even if no work is performed.
With a $0 sold threshold, conversion rates are always 100%. This eliminates the value of reporting on opportunities.
By setting the sold threshold to at least $1, No Charge jobs that don’t meet the sold threshold are not included in opportunity reporting. This improves the accuracy of opportunity-related key performance indicators (KPIs).
For example, the Opportunity Job Average KPI shows the average invoice subtotal of job opportunities. When you set sold thresholds greater than $0, the KPI calculation removes No Charge jobs and you can expect opportunity job averages to increase.
Run reports on opportunities
Sold thresholds are used to run reports based on the Business Unit Performance or Technician Performance templates to measure how well your teams are performing:
Close rates show how well your technicians are selling estimates that meet the sold threshold.
Conversion rates show how well your technicians are completing jobs with invoice subtotals that meet the sold threshold.
Sold threshold strategies and examples
You want to set sold thresholds so that you can report on opportunities that have value to your business.
A good rule of thumb is to set the sold threshold for a job type to a minimum of $1 over your dispatch fee. The idea is that your dispatch fee covers the cost of sending out a technician. Therefore a valued job should have a subtotal that at least exceeds your dispatch fee.
If you’re unsure or the job type does not include a dispatch fee, set the sold threshold to $1 so your opportunity reports do not include No Charge and Uncovertible jobs.
Sales job types
A sales technician is dispatched to build and present estimates to a customer. The technician is expected to sell estimates and there is no dispatch fee.
Set the sold threshold to $1
Service job types
A technician is dispatched for a service job; for example, clearing a drain. The technician has the opportunity to upsell and there is a $49 dispatch fee.
Set the sold threshold to $50
Recall job types
Recall jobs, also known as callback jobs, are booked to fix a problem caused by an earlier job. No upsell is expected and the job type is marked as No Charge/Unconvertible.
Set the sold threshold to $1
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Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.