HVAC
HVAC Customer Acquisition Cost Calculator
Work out what it costs to win one customer and whether the first job covers it.
Result
Sales time is included because it is a real cost of winning work even though it never appears on an advertising invoice. Recovering under 100% on the first job is normal in the trades, provided customers come back.
Get a Free Business AuditWhat moves the number
- All acquisition spend, including the sales time that is often left out.
- Close rate, since unconverted leads are paid for too.
- Whether the first job covers the cost or the relationship has to.
Where this one goes wrong
Counting advertising spend only. The time spent quoting, following up and visiting is a real acquisition cost, and leaving it out makes every channel look cheaper than it is.
Questions
About this calculator
What should acquisition cost include?
Advertising, agency and directory fees, and the sales and admin time spent converting. The last is frequently the largest and is almost never counted.
Should the first job cover acquisition?
Ideally, because it removes the risk. Where it does not, the business is betting on retention, and that bet needs measured retention behind it.
How does this compare to lifetime value?
The ratio between them is the useful figure. A healthy ratio means acquisition is sustainable; a narrow one means the business is buying customers it barely profits from.
The formula
acquisition cost = (marketing + sales cost) / customers won
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How to use this calculator
- Marketing spend per month ($). Enter your own figure; the page starts at $3,200.
- Sales time and tools ($). Quoting time, CRM, call answering.
- Leads per month. Enter your own figure; the page starts at 70.
- Share that become customers (%). Enter your own figure; the page starts at 32%.
- First job value ($). Enter your own figure; the page starts at $620.
- Gross margin (%). Enter your own figure; the page starts at 48%.
The result updates as you type, so you can try a figure, see what it does to cost to win one customer, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Marketing spend per month | $3,200 |
| Sales time and tools | $900 |
| Leads per month | 70 |
| Share that become customers | 32% |
| First job value | $620 |
| Gross margin | 48% |
What comes out
| Result | Value |
|---|---|
| Cost to win one customer main result | $183.04 |
| Cost per lead | $58.57 |
| Customers per month | 22 |
| Gross profit on the first job | $297.60 |
| Recovered on the first job | 163% |
Each customer costs $183.04 to win, and the first job returns $297.60 of gross profit, 163% of the acquisition cost. The rest has to come from repeat work.
How sensitive the answer is
Holding everything else steady and changing only marketing spend per month, this is what happens to cost to win one customer. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Marketing spend per month ($) | Cost to win one customer |
|---|---|
| $1,600 | $111.61 |
| $2,400 | $147.32 |
| $3,200 example above | $183.04 |
| $4,800 | $254.46 |
| $6,400 | $325.89 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Marketing spend per month ($)
- A money amount, starting at $3,200.
- Sales time and tools ($)
- Quoting time, CRM, call answering.
- Leads per month
- A number, between 0 and 20000, starting at 70.
- Share that become customers (%)
- A percentage, between 0 and 100, starting at 32%.
- First job value ($)
- A money amount, starting at $620.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 48%.
What the results tell you
| Result | What it is |
|---|---|
| Cost to win one customer | The headline result. A money figure. |
| Cost per lead | A money figure. |
| Customers per month | A number. |
| Gross profit on the first job | A money figure. |
| Recovered on the first job | A percentage. |
Before you rely on this number
Sizing, capacity and load figures here are planning estimates. A real installation depends on the manufacturer's data for the specific equipment, the duct system it is going into, and a proper load calculation for the building. Use this to sanity-check a number or price a job, not to select equipment.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.