The Simple Math That Can 8x Your Marketing ROI in Home Service

Imagine this:
You put $1 into a machine and it gives you $8 back.
How much money would you try to shove into that thing?

That’s basically what we’re talking about when we dial in:

• What a customer is worth to you
• What it costs to get that customer
• And how to stop racing to the bottom on price

This is what Andy Walker of Stryker Digital and I broke down on the OWNR OPS Podcast, especially for roofers, land clearers, painters, landscapers, remodelers, and other local service businesses.

Let’s keep this really simple.

1. The 3 Numbers That Actually Matter

There are metrics you could track.
These are the ones that actually move the needle:

1. Average Order Value (AOV)

How much a customer spends with you on their first job.

Example:

• You do a land clearing job for $10,000.
• That customer’s AOV = $10,000.

2. Lifetime Value (LTV)

How much a customer spends with you over time.

Example:

• You clear their land this year for $10k.
• You come back 3 years later for more work at $5k.
• LTV = $15,000.

3. Customer Acquisition Cost (CAC)

How much it costs you in marketing + sales to get one new customer.

Example:

• You spend $3,000 on ads and agency fees.
• You get 6 new customers from that.
• CAC = $3,000 ÷ 6 = $500 per customer.

Bonus: Lifetime Gross Profit (LTGP)

This is what Hormozi talks about and what the real killers pay attention to.

• LTGP = Total gross profit (revenue minus cost to fulfill) from a customer over their lifetime.

This is more honest than LTV because it accounts for your actual cost to do the work.

2. Real Numbers from Bear Claw

Here’s what we looked at on the show using Bear Claw’s data over roughly 30 days:

• Ad spend (Facebook + Google): ~$3,000
• Add agency fees: total marketing = ~$6,000
• Jobs won from those leads: 11
• Average order value: ~$10,800
• Let’s assume a 40% gross margin for the example

Now the math:

• CAC = $6,000 ÷ 11 ≈ $545 per customer
• LTGP per customer ≈ 40% of $10,800 = $4,320
• LTGP : CAC = $4,320 ÷ $545 ≈ 7.92 : 1

In plain English:

For every $1 we put into marketing, we get about $7.92 back in gross profit.

That’s the ATM.

Once you know this, questions like:

• “Should we spend more on ads?”
• “Should we expand our service area?”
• “Should we keep this offer or kill it?”

…become a lot easier to answer.

3. Why High-Ticket Services Work Better with Ads

Andy and I both agreed on this:

Paid ads are hard to make work with low-ticket jobs.

If you’re charging:

• $65 for a lawn
• $90 for a simple clean-up

…it’s tough to profit from Facebook or Google ads unless you have a strong recurring setup (weekly, monthly, yearly contracts).

But for:

• Roofing
• Land clearing / fire mitigation
• Landscaping installs
• Exterior painting
• Remodeling

…you’re in a high-ticket world. That gives you room to:

• Spend more on ads
• Hire good help (agencies, setters, admin)
• Outspend cheaper competitors

If your average job is $8k–$15k and your CAC is a few hundred bucks with healthy margins, you can absolutely win big on paid ads.

4. How to Think About Lifetime Value in Home Services

Most guys treat work like this:

• Do the job
• Get paid
• Move on to the next one

And yeah, you should keep hunting new work. But Andy made a strong point:

You’re ignoring how much more that same customer could be worth over time.

Example: Roofing

• You do a roof for a family today.
• They live there 15–30 years.
• Storms happen.
• Roofs wear out.
• Their kids buy homes.
• They have neighbors and family.

You can turn that 1 roof into:

• Repeat work
• Storm damage replacement
• Referrals

If you stay in touch and store your data properly.

Simple ways to stretch LTV:

1. Use a CRM and actually fill it out.
   • Name, address, job type, date, details.
   • Tag big jobs and ideal clients.
2. Storm / season follow-up.
   • After hail or wind events, call past customers in those areas.
   • Offer quick inspections before door knockers hit them.
3. Long-term touchpoints.
   • 1–2 times a year:
     • “Merry Christmas!”
     • “Happy 4th of July!”
     • Quick text or email.
4. Upsell while you’re on-site.
   • Roof + new gutters
   • Pressure washing + gutter cleaning
   • Painting + minor repairs

The small stuff doesn’t always feel big in the moment.
But stretched over thousands of customers over 5–10 years, it can mean six or seven figures added to your bottom line.

5. Why You Should Still Track This Manually

When I first went deep on this, I didn’t have some perfect system.
I literally:

• Exported reports from Jobber
• Downloaded leads from Facebook & Google
• Spent two days in spreadsheets matching things up

It was painful. But it changed how I saw the business.

Now we’ve built a simple live dashboard on top of Jobber that tracks:

• Leads
• Quotes
• Jobs won
• Revenue
• AOV
• Ad source performance

Andy and his team still enter data manually once a week too.

Why? Because when you punch in the numbers yourself, you’re forced to think:

• “Why is this lower?”
• “Why did CAC jump?”
• “Why did our Facebook leads close better than Google this month?”

You don’t need a crazy setup to start.
A basic spreadsheet and a weekly check-in is enough to get insight most owners never have.

6. Stop Competing on Price

This is where a lot of home service owners get stuck:

“My competitor said they’d do it cheaper. Can you match their price?”

Andy’s stance (and I agree): dropping your price is almost always a bad move.

Here’s why:

• Once you cave on price, some customers feel like they can push you on everything else too.
• The people who fight you the hardest on price often become:
  • Your most demanding customers
  • Your loudest complainers
  • Your worst reviews

You end up doing more work, with more stress, for less money.

Instead, think like this:

“I’m not going to be the cheapest. I’m going to be the best value.”

7. Use Bonuses Instead of Discounts

This is straight from Hormozi and Andy:

Instead of:

“Okay, I’ll knock $1,000 off.”

Try:

“Our price stays the same, but here’s what I can add to make this a no-brainer.”

For example, as a roofer, your “bonus stack” might look like:

• Free yearly roof inspection for the next 2–3 years
• No-leak guarantee – if it leaks within X years, repairs are free
• Free gutter cleaning after 6 months
• Guaranteed timeline – “We’ll be done in X days or we refund you $1,000”

You reveal these when they push on price.

You’re not racing to the bottom.
You’re showing them why your offer is worth more.

Most of the time, they won’t even redeem all the bonuses—but they will feel safer choosing you.

8. Make Your Offer the “Easy Button”

Hormozi compares:

• Meditation (takes time and discipline)
  vs.
• Xanax (take a pill, feel better)

People naturally choose the easier option, even if the “harder” one has long-term benefits.

Your offer should feel like the easy button.

Practical ideas:

• Speed to lead: Aim to contact new leads in under 5 minutes, not hours.
• Simple process: Make it stupidly clear what happens next.
• Proactive communication:
  • Send photos/videos during the job.
  • “Here’s what we did today, here’s what’s next.”
• You handle the details; they only make decisions.

The less your customer has to think or chase you, the more likely they’ll choose you—even at a higher price.

9. Ask for Referrals When They’re Excited

Most people wait until everything is over and cold to ask for:

• A review
• A referral

It’s better to ask when they’re excited:

• You just wrapped a big job and they’re pumped.
• They’ve seen before/after photos and are blown away.
• They just told you, “You guys did awesome.”

That’s the moment to say:

• “Hey, would you mind dropping us a 5-star review? It helps us a ton.”
• “Do you know anyone else that might need this in the next few months?”

If they say no, no big deal.
But if you never ask, you’re missing easy, low-cost growth.

10. Content, Brand, and “No Excuses” Marketing

One thing we also talked about:

The companies making consistent content win more over time.

Andy sees it in SEO data all the time:

• Clients who post content regularly get more branded searches on Google (people searching the company name, not just “roofer near me”).
• That’s a huge sign your brand is strong.

Here’s the good news:

You don’t need a studio.

What I’m doing:

• Recording content on my phone
• Posting YouTube Shorts with:
  • Our business name
  • Our service
  • Our city / area
• Running low-friction podcasts and streams:
  • No heavy editing
  • Quick Canva thumbnail
  • Post and move on

You don’t need perfect.
You just need consistent.

11. Mindset: It’s On You

This is how we wrapped the conversation:

• If something is broken in your business, it’s your responsibility.
• Wrong clients, bad hires, no leads, lack of systems—that’s all on you as the owner.

That’s not meant to beat you up.
It’s actually freeing.

Because if it’s your fault, you can fix it:

• Learn the skills
• Find better mentors
• Implement better systems
• Say “no” to the wrong work
• Double down on what’s working

Success in this game is mostly:

Deciding you’re going to figure it out and refusing to quit.

You’ll take hits. You’ll make mistakes. You’ll waste some money.
Everyone does. That’s the tuition.

The people who win are the ones who keep going and keep learning.

Quick Checklist You Can Use This Week

If you want to apply this right away, here’s a simple “do this now” list:

1. Calculate your CAC for the last 30–90 days.
   Total marketing spend ÷ new customers from those channels.
2. Roughly estimate your LTGP.
   AOV × gross margin. Then divide by CAC to get your LTGP : CAC ratio.
3. Add one upsell to your main service.
   Make your average ticket a little higher.
4. Create a simple bonus stack you can use when people push on price.
5. Reach out to a few past customers this week—check in and stay top of mind.
6. Post one piece of content about your service and your city. Don’t overthink it.

Do those consistently, and you’ll be way ahead of most local home service businesses.

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