Could this tool double your profitability?
We recently posted an article on the . We established the importance of cutting soft costs to ensure a profitable business operation, and introduced PVsell as a tool that helps you cut soft costs and improve profitability. In this article, we’re going to share some survey results that illustrate the plight of the average PV retailer when it comes to commercial PV. Along the way, we’re going to demonstrate how PVsell can increase business profitability by as much as 50%.
In mid April, SunWiz surveyed its readers on their Commercial PV retailing experience. The results were very interesting:
- The success rate of the typical solar retailer when it comes to commercial PV sales is 20%. This means 4 out of 5 pitches for commercial PV sales are unsuccessful. If you’re doing better than this, pat yourself on the back – 25% of companies reported a success rate of 33% or higher, and 25% reported a success rate of 10% or lower.
- The typical solar retailer spends 6 hours on each proposal they put together for commercial PV. (PVsell can cut this to 5 minutes). Interestingly, 25% of respondents spent 3 hours or less, and 25% spent 10 hours or more. The typical solar business is therefore spending a lot of time preparing proposals that are mostly unsuccessful.
- Now, when they are successful, the typical business has a 22% Gross Profit Margin – and 50% of businesses have a GP in the range of 20%-25%.
- The typical business pays its commercial salespeople $70,000, through some combination of salary and commission, though again there is a large variation in the amount paid.