Within the service sector -whether it be tree care, landscaping, concrete construction, home remodeling, ect, etc - it is generally accepted by those who have done research on the subject of bidding, that 20-30% is a reasonable goal to aim for. That is, of course, if the customer has no particular preference towards the individual contractor and is simply looking for the lowest bid to complete the job according to a particular set of specifications given. In other words, these numbers only apply to bids you give to first-time customers who know little or nothing about you or your business and the same about your competition.
With that in mind, if you're getting less than 20-30% of your bids, it probably means you're not being competetive within your market (bidding too high) and you need to look at ways to reduce your overhead, material costs, etc so that you can get the job finished at a lower cost to the customer while still preserving your target net profit on the job.
If you're getting more than 20-30% of your bids (again, keeping in mind that we're talking about situations where the client has no preference in whom he hires), then it likely means you are bidding too low within your market and that you should consider raising your prices. This, of course, only applies if you are turning away business because you are backlogged with work. It does not necessarily apply if you are getting most of your bids but still don't have enough work to keep you busy.
When dealing with customers who know something about you and your company's reputation, I personally aim to get a much higher percentage of those bids - between 50-75%. That's when your abilities as a salesman to push expereience and professionalism vs lowest price comes into play.
These are two general scenarios for two different kinds of clients. Also, one has to bear in mind that the economy is a huge driving force and will always throw a wrench in the calculations.
Hope this helps.
Gofigure.
