Most roofing contractors think they know their customer acquisition cost.

They don’t.

In this episode, I break down why CAC is almost always higher than contractors realize, what most people leave out when calculating it, and how misunderstanding this number quietly destroys profitability.

If you’re spending money on marketing, salespeople, or agencies — and not truly tracking what it costs to land a customer — this episode will open your eyes and help you protect your margins.

Customer Acquisition Cost (CAC) is one of the most misunderstood — and most dangerous — numbers in a roofing business.

In this episode, Dave Sullivan explains why many contractors believe their marketing is “working” while profits continue to disappear. The problem isn’t leads — it’s the failure to understand the true cost of acquiring a customer.

Dave walks through what must be included in CAC, including marketing spend, sales costs, overhead, follow-up systems, missed calls, and poor conversion rates. He explains how small improvements in close rate can dramatically reduce CAC without spending another dollar on marketing.

This episode is essential listening for contractors who want to stop guessing, stop overspending, and start making decisions based on real numbers instead of gut feel.

• Customer acquisition cost is more than just ad spend
• Sales costs and overhead must be included in CAC
• Poor follow-up and missed calls increase CAC dramatically
• Improving close rate is often cheaper than buying more leads
• Knowing your CAC protects profitability and cash flow
• You can’t scale profitably without understanding this number

00:00 – Introduction

05:40 – Why Most Contractors Miscalculate CAC

13:12 – What Should Be Included in Customer Acquisition Cost

24:05 – How Missed Calls and Poor Follow-Up Increase Costs

34:18 – Improving Close Rate vs Buying More Leads

44:30 – Using CAC to Make Smarter Business Decisions

56:10 – Final Thoughts on Profitability

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