Most HVAC owners guess at their marketing budget.
I spent years crawling attics and running duct work before I ever touched a marketing plan.
Back then, marketing meant a truck wrap and a phone book ad.
That world is gone.
Today most HVAC companies should spend 7% to 10% of revenue on marketing. Don’t take that number and run with it. You’ll want to consider whether you are trying to grow, the season, and your close rates before setting a marketing budget.
This guide breaks down exactly how to find your number and where to spend it.
What This Guide Covers
The Quick Answer Most HVAC Owners Want
Spend 7% to 10% of gross revenue on marketing.
That range comes from HVAC industry groups and dozens of home service agencies.
7% to 10% is perfect for companies doing steady, healthy growth. Companies seeking more market share will want to spend more, while those that already dominate their market can spend less.
The rest of this guide shows you how to adjust that number for your business.
Step 1: Find Your Growth Stage
The age and growth mindset of your HVAC business should guide your percentage more than anything else. A brand new company needs visibility fast, while an established company just needs to stay visible.
| Growth Stage | Marketing Spend | Why |
|---|---|---|
| Maintenance Mode | 3% to 5% | Fully booked, strong referral base, just replacing normal churn |
| Steady Growth | 7% to 10% | Healthy demand, building brand and rankings over time |
| Aggressive Growth | 10% to 15% | New company or new territory, buying speed |
Be honest about where you actually are before you set a number. Most HVAC companies sit in steady growth.
Step 2: Turn Your Percentage Into Real Dollars
A percentage means nothing until you see it in dollars. Here is what 8 percent looks like at different revenue levels.
| Annual Revenue | Marketing Budget (8%) | Monthly Spend |
|---|---|---|
| $500,000 | $40,000 | $3,300 |
| $1,000,000 | $80,000 | $6,700 |
| $3,000,000 | $240,000 | $20,000 |
| $5,000,000+ | $400,000+ | $33,000+ |
Notice the monthly number climbs fast. Fragmented spending gets dangerous at scale.
Step 3: Split The Budget By Channel
Don’t dump your whole marketing budget into one channel.
Spread it based on what each channel is good at.
Some things to include in your split:
- SEO and content
- Google Ads
- Local Service Ads
- Direct mail to past customers
- Branding
- Reputation management.
A simple starting split looks like 35 percent digital acquisition, 25 percent direct mail and retention, 20 percent SEO and content, and 20 percent brand and production.
Adjust based on your market and your current lead flow.
Step 4: Weight Spend Toward Existing Customers
Don’t make the mistake most HVAC companies make and chase new customers with your whole marketing budget.
According to Harvard Business Review customer retention marketing costs 4% to 20% of what it costs to find new customers.
Your existing customers already trust you. Consider using the following strategies to encourage repeat customers:
- Send maintenance reminders.
- Run seasonal tune up offers.
- Reactivate customers who have not booked in over a year.
Step 5: Front Load Spend Before Peak Season
HVAC demand spikes in summer and winter along with advertising costs. Most contractors boost the marketing spending during the peak season, but smart companies boost it beforehand so that their HVAC SEO and content has time to build authority before the peak season.
Let organic rankings carry the load once summer hits. Save your paid ads for capturing overflow demand during the rush.
Step 6: Build Your Budget From Capacity Instead Of Just Percentage
Percentages are a good starting point.
But they are not a real budget.
A real budget starts with what your team can actually handle.
Ask yourself 4 questions.
- How many more jobs can my crew complete this month?
- What is my average gross profit per job?
- What is my close rate on booked estimates?
- What is the most I can pay to acquire one job and still profit?
That last number is your allowable customer acquisition cost.
Once you know it, use your revenue percentage only as a sanity check.
Signs Your Budget Is Actually A Structure Problem
Sometimes the number is fine.
The structure around it is broken.
Watch for these signs:
- Multiple vendors who never talk to each other
- No shared definition of what counts as a lead
- Nobody accountable for booked jobs instead of click
- Reports full of impressions with no revenue tied to them.
Impressions do not dispatch trucks, but booked jobs do.
Fix the structure before you add more dollars.
FAQ
How much should a small HVAC company spend on marketing?
Companies under 1 million dollars should budget 5 to 10 percent of revenue.
Start at the low end with Google Ads and Local Service Ads.
Is 10 percent too much to spend on HVAC marketing?
Not if you are in a growth stage.
10 percent is standard for contractors actively taking market share.
Should I spend more on new customers or existing ones?
More of your budget should go to retaining existing customers than acquiring new ones. Retention marketing returns far more per dollar than new customer acquisition.
When should I increase my marketing budget for the year?
Increase it 4 to 6 months before your peak season. That gives your SEO time to rank before demand spikes.
What is a common mistake HVAC owners make with their budget?
They spend the whole budget chasing new leads and ignore the customers already in their database.
Your Marketing Budget Should Fit Your Stage
Every HVAC company should have a different marketing budget. The best way to establish what your marketing budget should be is to follow this 5 step process:
- Find your stage.
- Turn your percentage into real dollars.
- Split it across channels.
- Weight it toward your existing customers.
- Then check it against your actual capacity and close rate.
What percentage of revenue are you currently spending on marketing? Under 5 percent, 5 to 10 percent, or over 10 percent?
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