What a Booked Plumbing Job Actually Costs

The cheapest lead is rarely the cheapest customer. Thirty seconds will tell you which of your channels is overcharging you.

Key Highlights

  • A lead is not a job; focus on the cost per booked customer by dividing spend by the number of paid jobs

  • Use your own business data—spend and paid jobs—to accurately measure channel performance instead of relying solely on industry benchmarks

  • Cost per booked job does not account for ticket size, lifetime value, or capacity, so consider these factors for comprehensive analysis.

Most plumbing contractors can tell you to the dollar what a lead costs. Far fewer can tell you what a customer costs. That difference is not trivia. Depending on which channels you buy from, the same $5,000 of monthly marketing can put nineteen jobs on the board or seven. Same money, same trucks, same month. The numbers behind that spread are below.

The reason is simple. A lead is not a job. Leads turn into jobs at very different rates depending on where they came from, and that rate varies far more between channels than the price of a lead does. So the channel with the cheapest leads can easily be selling you the most expensive customers in your market.

No spreadsheet required. A napkin and thirty seconds will do it.

The Napkin Math Nobody Runs

Take any channel you spend money on. You need two figures.

1.     What you pay for a lead from that channel.

2.     What share of those leads turn into paid work.

Divide the first by the second. That is your cost per booked job.

Say a lead costs $50 and one in ten becomes a paying customer. Ten leads cost $500 and produce one job, so that job cost you $500 to win. Now say a different channel charges $120 a lead but three in ten close. Four leads cost $480 and produce roughly one job. The second channel charges more than twice as much per lead and still delivers the cheaper customer.

That is the entire method. No attribution software, no modeling, no data scientist on payroll. Cost per lead divided by close rate.

Nobody skips this because it is hard. It gets skipped because the two numbers live in different buildings. The lead price sits in an ad platform that would like a bigger budget. The close rate sits in ServiceTitan or Housecall Pro, in the CSR's call log, or in a manager's head. Neither system knows the other exists. The ad platform counts leads and calls that success. The field software counts jobs and never asks where they came from. Nobody is forced to put the two together, so almost nobody does.

What the Numbers Say for Plumbing

We pulled published benchmark data across the channels most plumbing shops buy from. These come from large samples of working contractors. Where a figure is an industry estimate rather than a measurement, it is labeled as one.

Google Local Services Ads. A plumbing lead runs about $57, and roughly 44 percent of those leads become a booked appointment. Measured across a sample of 760 businesses, the cost per paying customer comes out around $263, on an average ticket near $1,700. A more recent update of that same dataset puts the median at $319, which is a useful reminder that these numbers move.

Google Search ads. Across 524 plumbing contractors and roughly 96,000 leads, the median contractor turned 18.4 percent of Google Ads leads into paying customers, at about $333 per customer on an average ticket of $1,680. That is a return of a little over five to one on ad spend. One wrinkle worth knowing: leads from non branded searches, where somebody is looking for a plumber rather than for you by name, run about $183 apiece. Your blend of branded, non branded and Performance Max traffic moves the customer number a great deal, which is exactly why the benchmark is a starting point and your own numbers are the answer.

Shared lead marketplaces. This is where the math turns. A plumbing lead from a shared marketplace can be had for $30 to $100, which looks like the bargain of the group. But those leads are sold to several contractors at once, and industry estimates put the close rate on shared leads between 5 and 15 percent. Run the division. At $65 a lead and a 10 percent close, a booked job costs about $650. At the unfavorable end of both ranges it is considerably worse than that.

Organic. No lead fee at all, and industry case data puts a mature organic channel somewhere between $20 and $50 per booked job. The catch is that organic is a fixed investment with a slow ramp, not a tap you can open next week.

Shop on the low end of those lead prices and the marketplace looks like the smart buy. Rank the same four channels by what a customer actually costs and it falls to last. Same spend, opposite conclusion.

A Shared Lead is a Raffle Ticket

A $650 job from a $65 lead sounds like somebody is cheating you. Nobody is. The marketplace is doing exactly what it is built to do: selling one homeowner's request to several contractors at the same time. Every shop that bought that lead paid the same price, and only one of them gets the job. You are not buying a lead. You are buying a raffle ticket, and the losing tickets cost the same as the winner.

That is also why speed decides so much on those channels. The first contractor on the phone usually takes the work, so every minute a shared lead sits unanswered raises the real price of every lead you already bought.

Run it On Your Own Numbers

You do not need our data, and you do not need every number in your business. Two will do, for each channel you buy from: what you spent last quarter, and how many paid jobs that spend produced. Divide spend by jobs. That is your real cost per booked job.

The lead count earns its place the day a channel looks expensive and you want to know why. Pull it and you get one of two stories. Either that channel sent you piles of leads and almost none became paid work, which is a lead quality problem and often a speed problem in your own office. Or it sent you very few leads and most of them booked, which means your team is converting fine and you are simply paying a premium for every door it opens. Those two look identical on the cost per job line and call for opposite responses. Rank every channel by that number, set the list next to the one in your head, and look for where the two disagree. Most owners who run this are surprised at least once.

One warning before you trust the jobs number. Count paid work, not appointments. An appointment that never becomes an invoice feels like progress and spends like a loss.

What This Does Not Tell You

Cost per booked job is not the whole picture, and anyone selling it as the whole picture is overreaching.

It says nothing about ticket size. A channel that produces expensive customers on large jobs can be worth more than a cheap channel producing small ones. It says nothing about lifetime value, and a first job that turns into a maintenance agreement is worth more than its invoice. It says nothing about capacity either. The cheapest channel in the world is useless if it cannot fill your trucks.

And these are benchmarks, not verdicts. A well run shop beats them. A struggling one does not reach them. They are a place to start an argument with your own numbers, not a place to end one.

Here is the whole piece in five lines. A lead is not a job. Spend divided by paid jobs is what a channel really charges you. The cheapest lead in town can be the most expensive customer, because shared leads close at a fraction of the rate of exclusive ones. Count invoices, not appointments. And run the ranking on your own numbers this quarter, because the channel quietly winning on your books is probably not the one getting the credit.

About the Author

August Severn

August Severn is the founder of Capitol Data Analytics, which builds reporting and analytics systems for home services companies. His work focuses on connecting marketing spend to booked and collected revenue, the gap where most contractor reporting breaks down. The full dataset behind this article is free, no email required, at capitoldataanalytics.com/data/home-services-cost-per-booked-job.

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