How to Calculate ROI on Marketing for Plumbers: A No-Fluff Breakdown

At Mammoth Marketing for Plumbers, we talk to contractors every week who are investing in ads but aren’t exactly sure what they’re getting in return. Maybe they’re seeing leads roll in, but profits? Not so much.

That’s where understanding return on investment (ROI) becomes essential. It’s not just about getting more calls—it’s about tracking the journey from marketing dollars to actual revenue. And when you nail this, you stop wondering if your ads are working and start knowing exactly what’s driving your business growth.

Why Plumbers Must Track ROI (Even If Numbers Aren’t Their Thing)

Let’s face it—most plumbers didn’t get into the trades to crunch spreadsheets. But here’s the truth: if you want to stop guessing and start scaling, understanding ROI is non-negotiable.

At Mammoth, we’re not just here to help you get leads—we want you to convert those leads into booked jobs, closed sales, and actual profit. That requires looking at more than your cost per click. It means analyzing your entire customer journey.

The $5,000 Marketing Simulation

To make this real, let’s break down what a $5,000 marketing investment could look like in a typical plumbing business.

  • Marketing Budget: $5,000

  • Cost per Lead (CPL): $50

  • Qualified Lead Rate: 50%

  • Answer Rate: 70%

  • Booking Rate: 70%

  • Closing Rate: 80%

  • Average Job Ticket: $800

This example isn’t perfect, but it’s a realistic starting point for many plumbing businesses.

The Truth About Cost Per Lead

Cost per lead (CPL) refers to what you pay for someone to raise their hand and say, “Hey, I might need your help.” That doesn’t mean they’re a perfect fit.

At $50 per lead, a $5,000 investment yields 100 leads. But spoiler alert—not all of them will be a match.

Not All Leads Are Created Equal: Qualifying Matters

Half those leads might be outside your service area, speaking the wrong language, or asking for services you don’t offer. We call these “unqualified leads.” That leaves you with 50 leads that are truly worth your team’s time.

And yes, this part hurts—because you paid for those other 50, too.

Answer Rate: The Silent ROI Killer

Now we’re down to 50 solid leads. But if your call answer rate is only 70%, you’re only speaking to 35 of them.

Most plumbers don’t realize how much money they lose by simply missing phone calls. Nights, weekends, or overwhelmed CSRs can tank your answer rate—and your ROI. That’s why we often recommend an answering service to pick up what you miss.

Booking Rate: How Well Are You Scheduling?

Let’s say you book 70% of those answered calls. Now we’re looking at 25 appointments scheduled from your $5K ad spend.

Not bad—but again, there’s room to improve. Proper CSR training and follow-up systems can help you push that number even higher.

Closing the Deal: Salesmanship Still Matters

Of those 25 booked jobs, if you close 80%, you’ve landed 20 paying customers. That’s where marketing ends and sales takes over.

Your team’s ability to close strong estimates plays a massive role in how well your campaigns ultimately perform.

Let’s Talk Revenue and ROI

Those 20 closed jobs at an $800 average ticket generate $16,000 in revenue. After subtracting your $5,000 investment, you’re left with $11,000 gross. But what does that mean in terms of ROI?

ROI = $2.14 for every $1 spent.

Better than zero? Absolutely. Enough to scale sustainably? That depends on your overhead.

Boosting ROI Through Operational Improvements

Here’s the cool part. Let’s keep your cost per lead and lead quality the same but bump up the operational metrics:

  • Answer Rate: 90%

  • Booking Rate: 80%

  • Closing Rate: Still 80%

Now you’re bringing in $23,000 from the same $5K budget.

New ROI = $3.61 per $1 spent. That’s a 68% increase—just by improving how your business handles the leads you already paid for.

Raising Your Average Ticket = The Secret Weapon

Here’s where many plumbers fall short: average ticket price. If you’re stuck at $700–$800 per job, you might be working hard just to stay afloat.

At Mammoth, we encourage our clients to aim for an average ticket of $1,200. It gives your business room to absorb costs, pay your team well, and reinvest in growth.

Yes, raising prices feels scary. But we’ve seen what happens when companies do it the right way—and the impact is huge.

Your Marketing ROI Depends on More Than Ads

We can optimize your campaigns, target better audiences, and lower your CPL—but if calls go unanswered or jobs don’t get booked, your ROI suffers.

That’s why we encourage every client to look beyond marketing and improve internal operations too. High-performing plumbers win not just because of great ads—but because they have tight processes behind the scenes.

How Mammoth Measures It All

Our team builds ROI calculators to help clients visualize what’s working and what’s leaking. We track:

  • Lead source quality

  • Estimate-to-close ratios

  • Missed calls

  • Job revenue

We also integrate tools like SearchLight, which connects directly to your CRM and benchmarks performance against top-performing companies in the industry.

Don’t Chase Averages—Outperform Them

Industry “averages” are fine—if you want average results. But most plumbers come to Mammoth because they want more.

Through partnerships with groups like The Wealthy Plumber, we’ve seen benchmarks that are high—but attainable. We use those same standards to push our clients into the top tier of their market.

Ready to See Where Your ROI Stands?

If you’re ready to finally see where your marketing dollars are going—and how to get more out of them—Mammoth Marketing is here to help.

👉 Schedule your free consultation today.
We’ll walk through your current numbers, identify your biggest opportunities, and show you what to focus on next.

There’s no pressure—just practical advice and a roadmap to grow smarter.

Picture of TYLER WILLIAMS

TYLER WILLIAMS

Tyler has been marketing small businesses for over 20 years. When don't quit, you get good. He's from Alaska, where the cold and a darkness molded him into an indoor kid with lots of communication prowess. That's how an advertiser was born. You can find more on him at https://tylerwilliams.net

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