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"What's a good close rate?" is one of the most-asked questions in home improvement sales, and published answers are all over the map. That's not because someone's lying. It's because "close rate" means different things to different companies — and because trade, ticket size, lead source, and sales model change it dramatically. Before you compare yourself with anyone, make sure you're measuring the same thing.
Four different "close rates"
| Name | Formula | Typically used by |
|---|---|---|
| Lead close rate | Sales ÷ leads received | Marketing teams |
| Appointment close rate | Sales ÷ appointments booked | Appointment-driven companies |
| Sit or issued close rate | Sales ÷ appointments that happened | Most in-home sales teams |
| Demo close rate | Sales ÷ full presentations given | One-call-close sales organizations |
The same company can have a lead close rate in the single digits and a demo close rate several times higher — both accurate. Comparing your sit close rate with someone else's lead close rate tells you nothing.
Why published benchmarks mislead
- Different definitions, as above.
- Different trades and tickets. A gutter guard and a full kitchen remodel are different sales.
- Different sources. Referrals close better than shared leads almost everywhere.
- Different timing. Some count only same-visit sales; others count sales within 90 days.
- Selection bias. Companies that publish their numbers tend to be the ones proud of them.
Build your own benchmark
Pick one definition — sit close rate is the most useful for in-home sales — and calculate it consistently:
- Choose the window. Count sales that close within a set period after the appointment (for example, 60 days).
- Segment. Calculate close rate by lead source, by rep, by project type, by one-leg vs. two-leg, and by month.
- Use enough data. A rep's close rate over 10 appointments is noise; over 100, it's information.
- Track over time. Your trailing 90-day close rate is your real benchmark.
Illustrative example of a segmented view:
| Segment | Sits | Sales | Close rate |
|---|---|---|---|
| Referrals | 40 | 18 | 45% |
| Exclusive appointments | 120 | 36 | 30% |
| Shared leads | 90 | 15 | 17% |
| Two-leg appointments | 150 | 54 | 36% |
| One-leg appointments | 100 | 15 | 15% |
Numbers like these immediately tell you where to spend and what to fix — far more than any industry average.
What a "good" close rate means for you
A good close rate is one that makes your acquisition costs work. Use it in the break-even cost per lead calculation: if your current close rate supports profitable acquisition, you're in good shape; if it doesn't, improving it is the cheapest fix. Then watch trends — a falling close rate is an early warning about lead quality, pricing, or rep overload.
Improving the number
The levers that typically move close rate: better qualified appointments, all decision-makers present, options instead of one price, clear financing, and disciplined follow-up. They're covered in how to close more in-home estimates. Put close rate on your weekly sales KPI dashboard alongside show rate and revenue per appointment.
Frequently asked questions
What is a good close rate for contractors?
It depends on how you define close rate, your trade, ticket size, and lead sources. Calculate your sit close rate consistently, segment it by source and rep, and judge it against what your acquisition costs require.
How do you calculate close rate?
For in-home sales, divide sales by appointments that actually took place, counting sales that close within a set window after the appointment.
Why is my close rate lower on some lead sources?
Sources differ in intent, exclusivity, and qualification. Shared leads often close lower because several contractors compete for the same homeowner.
Should close rate include sales that happen weeks later?
Yes, within a defined window. Many in-home sales close after follow-up, and ignoring them understates your real close rate.
RunsForYou Team
Written by the team that runs outbound calling, homeowner qualification, and appointment booking for home service contractors at RunsForYou (Runs For You LLC).
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