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Marketing tied to margins for electrical shops

Margin-based marketing starts with what each job type earns and works back to what you can afford to pay for one booked job. Every channel is then judged on gross profit, not clicks or calls.

Written by Ali Sedighi, MBALast updated:

Marketing tied to margins means one rule: never pay more to win a job than the job can afford. That sounds obvious, yet most electrical shops set a monthly marketing figure and hope. We work the other way. We start with gross profit per job type from your price book and service mix, decide the most you can pay for one booked job, and then build and measure every channel against that number.

We are a digital marketing and consulting service, not an electrical contractor. We market the work your licensed team performs; we never do any of it ourselves.

Who it suits

The answer: shops that have fixed, or are fixing, their prices and know which work they want. Marketing an underpriced job only loses money faster, so most owners come here after flat-rate pricing and service mix.

It suits owners who:

  • want more of two or three specific job types, not just "more calls"
  • have tried an agency and couldn't tell which jobs it produced
  • need marketing that can be turned up and down with crew capacity

The allowable cost per booked job

This is the core of the method, shown with example numbers.

Job type Gross profit per job Close rate from lead Max share of GP for marketing Allowable cost per lead
Level 2 charger $550 50% 25% $69
200 A panel upgrade $1,300 35% 25% $114
Standby generator $3,000 25% 20% $150

Take the panel row. You keep $1,300 of gross profit per job. If you're willing to spend a quarter of that winning it, you can pay $325 per booked job. With 35% of leads booking, that is about $114 per lead. If paid search in your city costs more than that per panel lead, the channel loses money unless the close rate improves. That is a decision, not a guess.

What's included

  1. Allowable cost per lead for each target job type, from your numbers.
  2. Google Business Profile and local search, set up around the services you chose, with service areas that match drive time.
  3. Paid search limited to the job types and areas that clear the allowable cost.
  4. A review program that asks every satisfied customer, by text, in a way that follows the platform's rules.
  5. Website pages for each target service, with clear package prices where you use a menu.
  6. Tracking of calls, texts and quote requests back to booked jobs and gross profit.

Timeline

  • Weeks 1–2: allowable-cost table, tracking set-up and account audit.
  • Weeks 3–6: profile, service pages and first paid campaigns.
  • Months 2–3: review program running, first full month of booked-job reporting.
  • Month 4 onward: monthly budget shifts toward channels that clear the target.

How we measure it

The monthly report shows, for each job type: leads, booked jobs, cost per booked job, gross profit won and marketing as a share of that gross profit. A channel stays if it clears the allowable cost over a full quarter. Calls and clicks appear in the report, but they never decide the budget on their own.

Results from our HVAC work show the same discipline: HVACDeal.ca produced 500+ leads at a 12:1 ROI. Those are HVAC figures, not electrical ones; the results page explains what transfers.

Mistakes to avoid

  • Judging marketing by call volume. Fifty calls for $90 service visits can earn less than eight panel quotes.
  • Running ads while the crew is booked out. Pause or narrow campaigns when backlog passes your target.
  • One budget for all work. Chargers and generators deserve separate budgets and separate reports.
  • No follow-up on quotes. Paying for a lead and never chasing the quote is the most expensive habit in the trade; see office systems.

For campaign execution focused purely on electrical lead flow, our sister site ElectricalTeam.ca goes deeper. See pricing or contact us to build your allowable-cost table.

Frequently asked questions

What channels do you use?

Usually Google Business Profile and local search, paid search, a review program and a website organised around the services you chose. We add other channels only when the numbers support them.

How much should an electrical shop spend on marketing?

There is no honest single percentage. Work it out per job type from gross profit and close rate, as the worked example on this page shows, then add a fixed amount for the website and reviews.

Can you promise a number of leads?

No. We set targets, track them openly and change what doesn't work. Results depend on your market, prices, reviews and how fast your office answers.

Who owns the ad accounts and website?

Ownership of the website, domain, Google Business Profile and ad accounts is written into your proposal before you sign. Read that clause and ask about anything unclear.