Why the Right Marketing Strategy Should Support Both
Running a profitable HVAC business is a tough job. Whether it’s finding reliable techs, booking steady work, or keeping margins healthy, you’re not alone—64% of HVAC companies have fewer than 3 employees, and only about a third make it past the 10-year mark.
At Thrive Digital, we get it. A lot of these challenges stem from the way your business is structured. Many contractors believe service calls are the best way to build a customer-first model—and there’s truth in that. Service is essential for long-term relationships and seasonal consistency.
But if your entire growth strategy relies on service alone, you’re leaving serious money on the table.
To thrive (pun intended), you need a marketing strategy that fills your service pipeline and trains your team to recognize when a service call should become a replacement opportunity.
The Cost of Relying Solely on Service
Let’s break it down with the real numbers.
- The national average cost to acquire a service lead is between $380–$440
- The average revenue per service call is just $330
Even at a 42% gross margin, that gives you about $139 in gross profit per call. But with a marketing cost of $410 (the midpoint), you’re operating at a loss of $271 per call.
So not only are you overpaying for leads, you’re losing money on the ones that do convert—and you’re counting on the hope that the customer returns in 3–5 years for a potential future payoff.
Plus, lead sources like HomeAdvisor or standard PPC campaigns don’t help. With conversion rates averaging just 15% and 3% respectively, you’re fighting an uphill battle.
And let’s be real—pressuring every technician to “turn over” a replacement can backfire. Most techs prefer fixing systems, not pitching new ones.
Why Replacement Leads Change the Game
Now compare that to a replacement-focused approach.
- The average cost to acquire a replacement (sales) lead is about $500
- The average ticket on a replacement job is $8,000
- At 42% gross margin, you’re earning $3,360 in gross profit
Subtract your $500 marketing cost, and you’re left with $2,860 in operating profit—per call.
Even better? Replacement leads typically close in under a week, delivering fast, predictable ROI. No waiting 3 years to see a return.
Thrive Digital clients consistently see:
- 35–40% conversion from lead to sales appointment
- 35–40% closing rate from appointment to installation
These aren’t just leads. They’re ready-to-buy homeowners, looking for replacement systems now—not in three years.
Let’s Compare the Math:
| SERVICE LEAD | REPLACEMENT LEAD | |
|---|---|---|
| Revenue | $330.00 | $8,000.00 |
| Gross Profit (42%) | $139.00 | $3,360.00 |
| Marketing Cost | $410.00 | $500.00 |
| OPERATING PROFIT | -$271.00 | $2,860.00 |
Build a Balanced, Profitable Model
So what’s the best path forward? Don’t choose between service and replacement—align them.
- Service calls build loyalty and create steady work during slower seasons.
- Trained techs who recognize replacement opportunities add serious profit to your bottom line.
The most profitable HVAC companies use service to create opportunity and replacement to drive growth.