$500–800
average value of a single HVAC service call
3–5x
return on ad spend achievable for local contractors
$500/mo
minimum effective starting budget for most trades
One of the first questions we get from contractors interested in running Google Ads is: “How much do I need to spend?”
The honest answer: it depends. But here’s a framework that will help you figure out the right number for your business.
Start With What a Customer Is Worth to You
Before you decide on a budget, you need to know your numbers:
- What’s the average revenue per job?
- What’s your average profit margin?
- How many jobs per year does a typical customer give you (including referrals)?
For an HVAC company, a new customer might be worth $500-$800 on the first call — but $3,000-$5,000 over their lifetime. That changes how much you should be willing to spend to acquire them.
Rule of Thumb by Trade
Here’s what we typically see for competitive markets:
- Plumbers: $800–$2,000/month to generate consistent leads
- HVAC: $1,000–$3,000/month (higher in competitive cities)
- Electricians: $600–$1,500/month
- Landscaping/Lawn: $400–$1,000/month
- General Contractors: $1,000–$3,000+/month depending on project size
Smaller, less competitive markets can often get results at the lower end of these ranges. Major metros like Denver, Dallas, or Phoenix require more.
What You’re Actually Paying For
With Google Ads, you’re paying per click — not per lead. In competitive trade categories, clicks can cost $8–$25 each. If your landing page converts at 10%, you’re spending $80–$250 per lead. That math only works if your average job value is significantly higher — which for most trades, it is.
The Minimum That Actually Works
In our experience, budgets under $400/month rarely generate enough data for Google’s algorithm to optimize effectively. You’ll get occasional leads, but you won’t be able to learn what’s working. We generally recommend starting at $500–$700/month in ad spend and scaling up as you see results.
The Key: Track Every Lead
The biggest mistake contractors make with ads is not tracking where their calls come from. Without call tracking, you have no idea which ads are working. We set up call tracking for every client so you always know your cost per lead.
Ready to get started? See our pricing plans — we offer fully managed Google Ads as part of every Growth and Pro package, with transparent reporting and no long-term contracts.
Want to know what realistic results look like in your specific market and trade? Book a free consultation — we’ll give you honest numbers based on real data from your area.
FREE FOR COLORADO CONTRACTORS
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Michael McVeigh
Founder, Blue Collar Bump
Built by someone who’s worked alongside operators, scaled teams, and driven real revenue in the field. Blue Collar Bump exists because trade businesses need marketing that understands how jobs actually get won. Every strategy is built for contractors who are too busy working to chase leads.