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Roofing

Roofing Customer Acquisition Cost Calculator

Work out what winning one roofing customer costs across marketing, inspection and sales time.

Your numbers

$
$
Quoting time, CRM, call answering.
%
$
%

Result

Cost to win one customer $183.04
Cost per lead $58.57
Customers per month 22
Gross profit on the first job $3,332
Recovered on the first job 1,820%
Each customer costs $183.04 to win, and the first job returns $3,332 of gross profit, 1,820% of the acquisition cost. The rest has to come from repeat work.

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.

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What moves the number

  • Inspection time and travel, which is spent on every prospect including those who do not proceed.
  • Marketing spend across all channels.
  • Close rate, since unconverted prospects are paid for too.

Where this one goes wrong

Leaving inspection time out. Roofing requires a site visit before a quote, and that visit happens for every prospect. It is frequently the largest acquisition cost and it is almost never counted.

Questions

About this calculator

What is the largest hidden acquisition cost?

Inspection visits on jobs that do not convert. Each one is travel plus a person on a roof, and at a typical close rate that is several visits per sale.

Should the first job cover acquisition?

In roofing usually it has to, because repeat purchase is rare. Unlike service trades, a roof is not bought again for decades.

Does that change how to value customers?

Yes, significantly. Roofing leans on referral and reputation rather than repeat purchase, so acquisition has to pay back on the first job.

How useful was this calculator?

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The formula

acquisition cost = (marketing + sales cost) / customers won

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How to use this calculator

  1. Marketing spend per month ($). Enter your own figure; the page starts at $3,200.
  2. Sales time and tools ($). Quoting time, CRM, call answering.
  3. Leads per month. Enter your own figure; the page starts at 70.
  4. Share that become customers (%). Enter your own figure; the page starts at 32%.
  5. First job value ($). Enter your own figure; the page starts at $9,800.
  6. Gross margin (%). Enter your own figure; the page starts at 34%.

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

InputValue
Marketing spend per month$3,200
Sales time and tools$900
Leads per month70
Share that become customers32%
First job value$9,800
Gross margin34%

What comes out

ResultValue
Cost to win one customer main result$183.04
Cost per lead$58.57
Customers per month22
Gross profit on the first job$3,332
Recovered on the first job1,820%

Each customer costs $183.04 to win, and the first job returns $3,332 of gross profit, 1,820% 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 $9,800.
Gross margin (%)
A percentage, between 0 and 95, starting at 34%.

What the results tell you

ResultWhat it is
Cost to win one customerThe headline result. A money figure.
Cost per leadA money figure.
Customers per monthA number.
Gross profit on the first jobA money figure.
Recovered on the first jobA percentage.

What this cannot see

Material quantities assume a clean rectangular plane and the waste factor you enter. Valleys, hips, dormers, penetrations and a steep pitch all raise real waste, and a tear-off frequently uncovers decking that was not in the quote.

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.