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I think our average roofing lead is $50 per lead but that depends upon source.

What's more important is return on investment. I would pay $1000 for a lead if I KNEW that I would sell the job and make $10,000 profit. Word of mouth is cheap and effective.
 

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I went to a few seminars on marketing over the past couple years and if your in the repaint business you would be shocked to see what each customer has really cost you. In some cases a good client could cost you a thousand dollars easy. If you have been in business a few years and calculate all your costs of advertising and marketing and divide it by the number of clients you have it shocking math. At one seminar a speaker tore up a fifty in little peices and told the audience its the very same as pissing off a customer.....but at a fraction of the cost. Something to think about for sure.
 

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Discussion Starter #5
Does anyone have an update on how much they spent last year on leads?

What was your average cost per lead in 2003?
 

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Nathan, I just did the "quick math" 553 estimates in 2003. Total marketing budget $12,500. That's about $23 per lead. Obviously this isn't 100% accurate because some estimates were from repeat customers, but I can guess we spent about $40 per lead.
 

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Good day. I'm a direct mail marketing specialist and would be more than happy to provide solutions to those in need. I do not sell "leads". I specialize in targeted direct mail campaigns at an average of about 100.00 per 1000 "prospects". You would be amazed how successful a targeted camapign to homeowners living in houses 10 years or older can be in your business. It's very cost effective as well.
 

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Grumpy said:
Daniel can you answer some of my questions? We do our direct mail ourselves, but for your firm what is your typical response ratio?

DO you do any other types of advertising?
you can expect a 1 to 2 percent response ratio on targeted direct mail. This is an average. So, for every 100 you send out expect 1 or 2 people to walk through your door or call your number. A mailing of say 5000 pieces should bring in a healthy amount of business. Calculate the LTV (long term value of the customer) plus referrals from a job well done, and you'll be quite happy with your investment
 
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