What is Sold Threshold?
Sold Threshold is a conceptually difficult setting to fully grasp, but it's one of the most significant to ensure accurate numbers in Dashboard & Technician Scorecard Reporting.
Sold Threshold is a setting that lives within each individual Job Type settings and is the dollar amount at which a "Close" and/or "Conversion" will occur.
Sold Threshold acts on both the "Close Rate" and "Conversion Rate" at the same time.
* * * * *
Close Rate & Conversion Rate / Terms & Definitions
"Close Rate" and "Conversion Rate" are two separate metrics associated with their own categories.
There are two categories we can associate metrics with: Estimates/Sales & Invoices/Revenue
Estimates/Sales:
Sales Opportunity = A job that has the potential to become a Closed Opportunity (any job that is NOT "No charge/unconvertible by default")
Closed Opportunity = Any job where the total of sold estimates is greater than or equal to the Sold Threshold
Close Rate = Number of Closed Opportunities compared to the number of Sales Opportunities
Close Rate Calculation = [count of Closed Opportunities] / [count of Sales Opportunities] * 100%
Invoices/Revenue:
Job Opportunity = A job that has the potential to become a Converted Opportunity (any job that is NOT "No charge/unconvertible by default")
Converted Opportunity = Any job where the total of the invoice is greater than or equal to the Sold Threshold
Conversion Rate = Number of Converted Opportunities compared to the number of Job Opportunities
Conversion Rate Calculation = [count of Converted Opportunities] / [count of Job Opportunities] * 100%
* * * * *
What is No Charge/Unconvertible by default?
No Charge/Unconvertible by default is a job type setting that, when enabled, marks jobs as "No Charge" by default.
This option removes jobs from being considered a Sales Opportunity and/or Job Opportunity unless the Sold Threshold has been breached*
* If you have a No Charge job where the Sold Threshold is breached by the total of a sold estimate, it becomes a SALES OPPORTUNITY.
* If you have a No Charge job where the Sold Threshold is breached by the invoice total, it becomes an OPPORTUNITY.
* If you have a No Charge job where the Sold Threshold is breached by the total of a sold estimate & the total of invoice, it becomes both a SALES OPPORTUNITY & OPPORTUNITY.
* * * * *
Why the Sold Threshold should never be $0
A $0 invoice is considered breaching a $0 Sold Threshold. Therefore, a job that has a $0 Sold Threshold will ALWAYS be considered a Converted Opportunity by the system.
As an extreme example to illustrate this point:
- If all Job Types have a $0 Sold Threshold, EVERY Technician's conversion rate would be 100% regardless of their performance.
- Since a "No Charge" job will become an Opportunity if the Sold Threshold is breached, every "No Charge" job with a $0 Sold Threshold will then count as a conversion.
- And because you cannot have a converted job without that job being considered an Opportunity, all of those "No Charge" jobs will also become an Opportunity.
In essence, $0 Sold Thresholds makes that "No Charge" job setting completely useless in all Opportunity metrics.
* * * * *
What can you expect to see when changing the Sold Threshold to above $0?
When changing the Sold Threshold to above $0, that update will apply retroactively towards reporting so you can expect to see some changes towards your metrics, both POSITIVE and NEGATIVE.
POSITIVE: "Opportunity Job Average" INCREASE
We can expect this metric to increase as all of the "No Charge" jobs with a $0 invoice that became an Opportunity (because of the $0 Sold Threshold was breached) will now revert to "No Charge" jobs and be removed from the calculation.
NEGATIVE: "Opportunity Conversion Rate" DECREASE
We can expect this metric to decrease since all $0 jobs will no longer be considered conversions as the $0 invoices no longer breach the $0 Sold Threshold.
* * * * *
What value should I change the Sold Threshold to?
The Sold Threshold should be considered the bar you are setting for all Opportunity jobs and is generally recommended to be $1 more than what should be the minimum amount on that invoice by default.
Opportunities with amounts below the Sold Threshold bar count AGAINST a Technician, while amounts above the Sold Threshold bar count in FAVOR of a Technician.
The Sold Threshold bar for most shops is reached when the Technicians has done something to earn the conversion. It is important to properly set the bar for Job Types that have a default service, including dispatch fees.
General Examples:
"Present Estimate" Job Type
- No dispatch fee
- Sales are expected to be made making this a Sales Opportunity
- Sold Threshold = $1
"Clear Drain Service" Job Type
- $49 dispatch fee
- Upsell beyond the dispatch fee is expected to judge a conversion making this a Sales Opportunity
-Sold Threshold = $50
"Call Back" Job Type
- No dispatch fee
- No upsell is expected; this Job Type has the "No Charge/Unconvertible by default" option checked
- Sold Threshold = $1
* * * * *
Still have questions? Reach out to your Customer Success Manager for more assistance! 🙂
