Tony Gee • August 24, 2022

ROI Formula for Advertising

Marketing ROI For Plumbers: Everything You Need to Know


As a plumbing business owner, you should know that establishing your plumbing company is merely the first step. If you want to get more plumbing calls and grow your plumbing business you need to invest in marketing. Whenever you launch a new plumber marketing campaign, you should test whether the cost of the project is helping or hurting your plumbing company. One of the best ways you can measure the performance and impact of your marketing campaign is by calculating the marketing ROI. In this blog, we will discuss everything you need to know about marketing ROI for plumbers.


What is Plumber Marketing ROI?


At the most basic level, plumber marketing ROI compares the amount of money you spend on a specific plumbing marketing campaign with the amount of revenue you generate from it. Typically, marketing ROI is used to determine the amount you should invest in ongoing and future marketing and advertising campaigns. 


Why Should Plumbers Calculate Marketing ROI?


As a plumbing business owner, calculating the return on marketing investments can help guide business decisions and optimize plumber marketing efforts. The following are 3 reasons why you should calculate your plumber marketing ROI:


Measure Your Marketing Campaign Success


An important part of any plumber marketing campaign is the ability to measure its performance and impact on your sales. By accurately calculating your marketing ROI, you can better identify the right mix of online and offline plumber marketing methods.


Distribute Marketing Budgets


There are many possible plumber marketing mix combinations. However, each plumber marketing technique will require funding. The best way to determine how to distribute funding for each plumber marketing method is by calculating its return on investment. The campaign with the highest ROI will certainly get the highest funding.


Justify Marketing Spend


When it comes to plumber marketing, you’ll notice that some campaigns will spend more than expected. The only way you can justify such spending is by calculating the marketing ROI of the campaign. This will help you know whether you are generating more revenue from the marketing campaign.


ROI Formula for Plumber Marketing


To accurately calculate your plumber marketing ROI, follow the steps below:


Step 1: Pick one marketing channel, e.g. Google Ads

Step 2: Determine the amount you spend per month on this marketing channel.

Step 3: Calculate the percentage of calls that you get from this marketing channel compared to EVERY other marketing channel.

Step 4: Calculate the average monthly sales


Example:

Marketing Channel: Google Marketing

Monthly Budget: $1,500

% Of Calls: 30%

Average Monthly Sales: $50,000

-----------------------------------

What is 30% of $50,000 = $15,000

$15,000 divided by cost of monthly budget = $10

$15000/ 1500

$1 ROI = $10


That means; for every $1 you invest in Google Marketing, you get $10 back. This can be considered very profitable for your plumbing company.


Types of Marketing ROIs


As a plumbing business owner, it is important you understand the three types of Marketing ROIs, so you can make informed business decisions:


Positive Marketing ROI


Positive marketing ROI occurs when the revenue generated from a marketing campaign is higher than the total marketing and advertising costs.


For example: Tony’s Plumbing Inc. made $50,000 in one month and spent only $10,000 on marketing and advertising costs. They determined their average sales growth to be 10% of their total earnings, meaning $5,000 of that income was not influenced by marketing. The Marketing ROI formula for Tony’s Plumbing Inc. would be:


(Total Monthly Sales – Average Baseline Sales Growth- Total Marketing Cost)/ Total Marketing Cost

( $50,000-$5,000-$10,000)/$10,000 = ROI of 3.5%. This means that the company is making a profit.


Negative Marketing ROI


A negative marketing ROI occurs when the total marketing cost is higher than the total revenue. When you get a negative ROI, it means that the company is losing money through the given marketing campaign:

For example: If Tony’s Plumbing Inc. spent $10,000 on marketing and their sales growth is 10% and then made $5,000 that month, they would have a negative ROI as shown below:


Marketing ROI= Total Monthly Sales – Average Baseline Sales Growth- Total Marketing Cost / Total Marketing Cost


($5,000-$500-$10,000) $10,000 = ROI of -55%


Neutral Marketing ROI


In some cases, your plumbing company may have a break even, where the marketing ROI is equal to zero. A Neutral Marketing ROI means that company is not losing or gaining from a given marketing campaign.


For Example:


If Tony’s Plumbing Inc. has spent $ 3,000 on marketing in a month and made $3,000 sales with no baseline of monthly growth, their Marketing ROI formula would be: ( $3,000 - $3,000)/ $3,000 which equals to zero. If the same company had a 10% sales growth rate, then their adjusted marketing ROI, the number would end up being negative.


As well as understanding marketing ROI as a whole, along with the best ways to calculate it is important, thinking of ways to boost your Marketing ROI can prove invaluable.  So how do we offer better ROI for your plumbing business and a more view of success? Schedule a Plumbing Business Coaching appointment with Tony Gee today to learn the expert-proven ways to grow and scale your plumbing business.

 

 

 

 


AI SEO For Plumbers

The Strictly Plumbers Guide to AEO & GEO: Why Your Business Can't Afford to Wait

By Tony Gee • March 10, 2026
Answer Engine Optimization (AEO) and Generative Engine Optimization (GEO), and show you why immediate implementation is critical for your company's survival and growth.

PlumbLine: Revolutionizing Plumbing Businesses One Call At A Time

By Tony Gee • March 6, 2024
In the competitive world of plumbing services, standing out and offering unparalleled customer service can make all the difference. That's where PlumbLine comes in, a game-changing answering service designed specifically for plumbing companies. What sets PlumbLine apart is its innovative pricing model: charging exclusively per booked call. This approach not only ensures cost-effectiveness but also aligns directly with the success of your plumbing business. Tailored for Your Success Understanding the unique challenges plumbing companies face, PlumbLine offers a bespoke solution that caters specifically to the needs of this industry. Our service ensures that every call is answered with professionalism and expertise, acting as an extension of your own business. The per booked call model means you only pay for results, making it a risk-free investment in your company's growth and customer satisfaction. One of the standout features of our service is the ability to book appointments directly into your company's scheduling software. This seamless integration ensures that the booking process is as efficient and error-free as possible, further enhancing the customer experience and streamlining your operations. How PlumbLine Works PlumbLine employs a team of highly trained professionals 24/7/265, who understand the nuances of the plumbing industry. When a potential client calls, our representatives handle the call with the same care and knowledge as if they were your own employees. They are trained to not only answer general inquiries but also to effectively book appointments, ensuring that potential leads turn into actual business. This efficiency boosts your conversion rate and, ultimately, your bottom line. Cost-Effective and Efficient By charging only for booked calls, PlumbLine ensures that your marketing dollars are spent wisely. This pricing strategy eliminates the concern of paying for services that don't directly contribute to your revenue. It's a straightforward, transparent approach that benefits your business by directly linking our success to yours. This model encourages us to work harder for your business, as our growth is directly tied to your success. Benefits Beyond Savings Aside from the obvious financial benefits, partnering with PlumbLine brings numerous advantages to your plumbing business: **24/7 Availability:** Missed calls are missed opportunities. PlumbLine ensures you're always available to your customers, capturing leads even outside of regular business hours. **Professional Representation:** First impressions matter. Our team handles each call with the professionalism and courtesy your customers expect. **Direct Booking into Your Scheduling Software:** Streamline your appointment setting process with our direct booking feature, ensuring efficient scheduling and customer satisfaction. **Increased Conversion Rates:** With expert handling of inquiries and appointment bookings, you'll see a significant increase in conversion rates, driving more business your way. Join the PlumbLine Family  PlumbLine is more than just an answering service; it's a partner in your business's growth. Our unique pay-per-booked-call model, combined with our industry-specific expertise and direct booking capabilities, makes us the ideal choice for plumbing companies looking to enhance their customer service and increase their revenue. With PlumbLine, you're not just hiring an answering service; you're investing in a tailored solution that grows with your business. Contact us today to learn more about how we can help elevate your plumbing business to new heights.

How To Implement KPI’s Into Your Plumbing Business

By Tony Gee • January 19, 2024
How To Implement KPI’s Into Your Plumbing Business Are you feeling overwhelmed trying to boost your plumbing business's efficiency? Key Performance Indicators (KPIs) might be the solution you need. As a plumbing business owner, understanding and leveraging KPIs can significantly transform your operations. KPIs are insightful data points that offer an objective outlook on your plumbing business's performance, spotlighting areas that need enhancement. They serve as your guiding beacon towards achieving your business goals. By implementing KPIs, you can join the 60% of plumbing businesses that have seen a boost in their efficiency. But how can you accomplish this? In this blog, we’ll cover the various types of KPIs you should integrate into your plumbing business. Marketing KPIs A crucial aspect of running your plumbing business involves keeping an eye on your marketing efforts . Specifically, marketing Key Performance Indicators (KPIs) offer insights into the effectiveness of your marketing strategies and are critical in making informed business decisions. Here are some marketing KPIs that you should consider implementing in your plumbing business: Cost Per Impression: This KPI measures the cost incurred for every individual who sees your advertisement. It helps gauge the financial efficiency of your marketing campaigns and assists in budget optimization. Cost Per Click: This is the cost an advertiser pays each time a user clicks their online ad. It's an essential KPI for digital marketing as it helps assess the cost-effectiveness of your campaigns in driving user engagement. Cost Per Lead: This KPI quantifies the cost of acquiring a prospective customer. It's crucial for understanding the effectiveness of your lead generation efforts, helping to identify the most cost-effective marketing channels. Cost Per Conversion: Cost per Conversion or Cost per Acquisition, measures the cost associated with converting a lead into a paying customer. This KPI is crucial as it directly relates to the profitability of your marketing efforts. Acquisition Costs: This encompasses all costs incurred to acquire a new customer, from marketing and sales expenses to any additional costs associated with onboarding. It’s crucial to track this KPI to ensure the profitability of your customer acquisition strategies. Marketing KPIs serve as critical tools for evaluating the success of your marketing strategies, providing tangible metrics to assess cost-effectiveness, customer acquisition, and overall profitability. By regularly monitoring and analyzing these KPIs, you can make data-driven decisions that optimize your plumber marketing efforts, improve your lead generation, and ultimately increase your customer base. Dispatch KPIs Effective management of your dispatch operations is another crucial area where Key Performance Indicators (KPIs) can make a transformative impact on your plumbing business. Monitoring dispatch KPIs helps to manage your resources efficiently, ensuring jobs are completed promptly while minimizing costs. Here are some important dispatch KPIs to consider for your plumbing business: Total Daily Cost: This KPI calculates the total expenditure of your dispatch operations in a day. It's essential for tracking your daily operational costs and identifying opportunities for cost reduction. Type Of Plumbing Calls With Dispatch: This KPI categorizes the type of plumbing calls received and dispatched. It provides valuable insights into the most common issues your business is called to address, allowing for targeted training and resource allocation. Plumbing Appointments: This KPI tracks the number of plumbing appointments scheduled in a period. It provides a snapshot of your business activity level, helping to manage resources effectively and plan for peak periods. Cost Per Conversion/Scheduled Appointments: This KPI measures the cost incurred for every appointment scheduled through dispatch. It helps assess the cost-effectiveness of your dispatch operations and is useful for optimizing scheduling and improving profitability. Cost Per Acquisition/Sales And Invoicing: This KPI gauges the cost of acquiring a customer through the dispatch system, from the initial call through to invoicing. It offers insights into the cost efficiency of your sales process and aids in identifying areas for improvement. Cancellation Rate: This KPI calculates the percentage of scheduled appointments that are canceled. A high cancellation rate may indicate issues with scheduling or customer service, making this an essential KPI for improving customer satisfaction and retaining business. Regular monitoring and analysis of these Dispatch KPIs will enable you to manage your dispatch operations effectively, leading to improved customer service, operational efficiency, and profitability. Sales KPIs In the realm of plumbing business, sales Key Performance Indicators (KPIs) provide in-depth insights into your business's profit-generating performance. They help you understand the effectiveness of your sales strategies , identify opportunities for improvement, and maximize your profitability. Let's delve into some of the crucial sales KPIs that your plumbing business should consider: Plumbers KPIs: This KPI tracks the performance of individual plumbers in your team. It can include measurements like the number of jobs completed, customer satisfaction rate, and the value of invoices generated. Monitoring these metrics can help identify star performers and areas where training may be needed. Leads Run Per Day: This KPI quantifies the number of potential customers or leads engaged in a day. It's crucial for understanding the effectiveness of your lead generation efforts and can help in planning and resource allocation. Estimates And Invoices: This KPI records the number of estimates provided and invoices issued. It provides insights into your business's sales activities, helping to track your conversion rates and measure the effectiveness of your sales process. Type Of Plumbing Job: This KPI categorizes the types of jobs your business handles, such as drains, water gas, water heaters, spot repairs to reroutes and repipes, and water line spot lines converted to a reroute or a repipe. This data can help you understand your market better and optimize resource allocation based on demand. Drain Cleaning Converted To Drain Repair Or Trenchless: This KPI measures the conversion rate of drain cleaning jobs to drain repair or trenchless jobs. A higher conversion rate indicates successful upselling, contributing to increased profitability. Water Filtration Systems Sold: This KPI tracks the number of water filtration systems sold over specific time periods (daily, weekly, etc.). It's a key indicator of your product sales performance and can help identify trends and plan for inventory management. Average Invoice And Monthly Sales: This KPI calculates the average value of your invoices and total monthly sales. It's crucial for tracking your revenue performance and identifying any trends or potential issues impacting profitability. By implementing these sales KPIs and regularly monitoring them, you can gain valuable insights into your sales operations. It can help you streamline your processes, improve decision making, and ultimately drive your plumbing business towards success. Growth KPIs For a progressive plumbing business, growth Key Performance Indicators (KPIs) are of paramount importance. They provide insights into the success of your growth strategies and the return on your investments. Here are some crucial growth KPIs you should incorporate: Average Invoice Marketing VS. ROI In Marketing: This KPI compares the average income generated from invoices against the return on investment in marketing. This metric offers substantial insights into the effectiveness of your marketing efforts and their contribution to your business income. Number Of Jobs by Plumbers Per Day/Month: This KPI tracks the productivity of your workforce by quantifying the number of jobs handled per day or month. It can help monitor individual performance, plan work schedules, and identify areas for improvement. New Hires: Counting the number of new hires shows the expansion of your team, which reflects your company's growth and the need to meet increased demand. Number Of Plumbers: Keeping track of the size of your team gives you insights into your operational capacity and helps in manpower planning. Overhead VS. Profit: This KPI calculates the proportion of your income that goes towards overhead costs and compares it to your profit. A lower overhead-to-profit ratio indicates healthier business performance. Gross Profit Margin: Calculating your gross profit margin as a percentage shows the proportion of your revenue that remains after subtracting the cost of goods sold (including materials and gasoline). This KPI is vital for understanding your financial health. Operational Costs: This KPI tracks costs related to daily business functioning, such as materials, gasoline, etc., helping maintain cost efficiency. Growth Rate Percentage Per Year: This KPI measures the annual percentage increase in your business, providing an overall sense of your company's growth and helping set future goals. Utilizing a competent Customer Relationship Management (CRM) system like Jobber or Housecall Pro can significantly simplify tracking these KPIs. These CRMs facilitate easy monitoring with just a click of a button. They are essential tools to help track job tags and leads, providing valuable insights to assist in growing your plumbing business. In conclusion, the implementation and diligent tracking of KPIs is an essential step to unlocking the potential of your plumbing business. Leveraging these metrics allows for improved strategic decision making, enhanced operational efficiency, increased profitability, and robust growth. However, navigating these KPIs can be challenging without expert guidance. Tony Gee is a trusted plumbing business coaching expert. With over 15 years of experience as a plumber and a proven track record of helping over 450 businesses flourish, Tony offers valuable insight and practical methods for KPI implementation. Don't miss this opportunity to turbocharge your plumbing business' growth. Schedule an appointment today to grow your plumbing business and make more money.