Determining how much it costs to acquire a new customer is integral to an effective pricing strategy for all construction companies. While every business is different, across residential construction, $200-$400 can serve as a baseline estimate for average Customer Acquisition Costs. Using the calculator above will help you determine how your sales and marketing strategies align with your pricing model.

Sales + Marketing Spend - Includes all expenses directed toward the promotion of the business or a specific service. It’ll include ads (Facebook, LinkedIn, paper publications, Google search placements, etc.), commercials, content sponsorships, etc.

Sales + Marketing Salaries - All salaries and wages (plus Burden) applied to sales and marketing projects. The costs associated with employees extends beyond their salaries; make sure to use our Burdened Labor Calculator to determine the full cost of your workers.

Software, CRM, etc. - Make sure to include all of the digital tools that the team uses to market and generate sales for the business.

Content Creation (and Consultants) - Often times, builders will ‘sub-out’ a portion of their content creation efforts to third parties. This may include SEO optimization, video editing, marketing strategies and additional consulting services.

Summing Up:

For builders of all sizes, determining the costs of customer acquisition is an important management function. And, while it may look a little daunting, the truth is that the information may be easier to access than it appears. The key to determining the true cost of customer acquisition efforts lies in the accurate tracking of business expenses. By systematizing accounting and bookkeeping processes, locating the correct expense categories above is a breeze. If you’d like to learn more, call us at 413-597-8928.