Work out your own number
- Profit per jobRevenue minus labor, parts and overhead.
- Close rateShare of leads that become paying jobs.
- MultiplyProfit per job times close rate.
- Set a targetAim below break even to earn a profit.
Why industry averages mislead
Published averages mix national brands with small shops, and cheap services with costly ones. A $200 lead is expensive for a $150 cleaning and cheap for a $15,000 roof. Your own profit and close rate matter more than any average.
Count repeat business
Many customers buy more than once. A pest control customer on a quarterly plan, or a family that returns to the same dentist, is worth more than the first job. Use lifetime value if you can measure it, and first-job value if you cannot.
A worked example
- 40LeadsAt $75 each, $3,000 spent
- 12JobsA 30% close rate
- $9,600ProfitAt $800 profit per job
Here the break-even cost per lead is $240, so $75 leaves plenty of room to grow.
Good example. A pool service tracks its close rate and finds $120 leads pay off well. It raises the budget with confidence.
Bad example. A pool service cuts its budget because $120 feels high, without checking how many leads became contracts.
Our PPC management reports cost per lead and cost per job every month.