Roofing Customer Acquisition Cost,the number that decides what you can afford to spend.
Most roofing owners know their cost per lead. Few know their true cost per customer. This guide walks the math, the benchmarks, and the budget rules that follow.
Executive summary
The short version for busy owners.
Customer acquisition cost (CAC) is everything you spent to land one signed contract, divided by the number of signed contracts in the same period.
Healthy residential roofing CAC sits between 8 and 15 percent of average contract value. Storm and insurance work can run lower, retail replacement higher.
If CAC is climbing while close rate is flat, you have a lead quality problem, not a marketing problem.
Key takeaways
What to remember when this page closes.
- CAC includes media, tools, sales payroll, and overhead allocated to acquisition.
- Always compare CAC to gross profit per job, not revenue.
- Watch CAC by channel, not in aggregate.
- Pre-booked appointment programs usually raise cost per appointment and lower CAC overall.
- Recalculate quarterly.
Section 1
What counts as acquisition cost
- Media spend (Google, Facebook, mailers, billboards).
- Lead and appointment vendor fees.
- Sales payroll for setters and closers, allocated to time spent on acquisition.
- Tools (CRM, dialer, reporting).
- Allocated overhead (sales management, software).
If you only count media spend, your CAC will look great and your bank account will not.
Section 2
The CAC formula
Total acquisition spend in the period divided by signed contracts in the same period.
Use a trailing 90-day window. Monthly numbers are too noisy for most roofing shops.
Section 3
Benchmarks by channel
| Channel | Typical CAC | Typical contract value | Notes |
|---|---|---|---|
| Pre-booked appointments | $1,500 to $2,800 | $12k to $20k | Higher per-appointment, fewer wasted touches. |
| Google Search ads | $1,200 to $3,000 | $10k to $18k | Quality varies by keyword set. |
| Facebook lead ads | $1,800 to $4,500 | $8k to $14k | Cheap leads, expensive customers. |
| Door knocking (storm) | $600 to $1,500 | $11k to $22k | Labor-intensive, weather-dependent. |
| Referrals | $200 to $700 | $10k to $20k | Best CAC, smallest volume. |
Section 4
Healthy CAC to gross profit ratio
A healthy shop spends less than one third of gross profit on acquiring the customer. Above one half, growth chokes the cash flow.
If your average gross profit per job is $4,500, you can spend up to roughly $1,500 to acquire that job and still build the business.
Three perspectives
How three honest reviewers would frame this.
Optimistic
CAC is the most useful single number an owner can compute. It turns marketing from an opinion into a budget decision.
Balanced
CAC alone is incomplete. Pair it with average gross profit and payback period to see the full picture.
Critical
Owners often exclude sales payroll from CAC. That makes the number look smaller and the business look healthier than it is.
Decision framework
A practical way to choose.
Find the row that matches your situation. Use it as a starting point, not a verdict. A short strategy call will sharpen the answer for your specific market.
| If this describes you | Recommended path | Why |
|---|---|---|
| CAC above 25% of contract value | Cut weakest channel, tighten qualification | Margin compression is imminent. |
| CAC 15 to 25% | Optimize before scaling | Room to improve before adding spend. |
| CAC 8 to 15% | Hold and scale carefully | Healthy band for most shops. |
| CAC under 8% | Consider increasing acquisition spend | You are likely under-investing in growth. |
Questions answered
What contractors ask before they start.
- Should I include owner time in CAC?
- Yes, at a market rate, especially if the owner still answers calls or runs appointments.
- How often should I recalculate?
- Trailing 90 days, recalculated monthly.
- Why is my CAC higher than the benchmarks?
- Usually lead quality or low close rate. Pre-booked appointment programs typically lower CAC for shops stuck at higher numbers.
- Is lifetime value relevant in roofing?
- Yes, but it works over decades. Most decisions can be made on first-contract gross profit.
Related guides
Keep reading where it helps you decide.
Cost Per Roofing Appointment
What a qualified appointment really costs.
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Pay Per Appointment
Why pay-per-appointment changes the math for owners.
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Roofing Sales Funnel
A funnel built from the homeowner's decisions, not yours.
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Roofing Sales Dashboard
The handful of numbers a real owner watches every week.
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Roofing Sales KPIs
Six numbers that decide if your shop grows.
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Pre-Booked Roofing Appointments
How a pre-booked appointment is generated and delivered.
Read guide
Book your strategy call
See if your market is still open.
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