Direct Mail ROI Calculator for Contractors: Know Your Numbers Before You Mail

A complete guide for Ontario contractors by Niagara Stands Out

Do not spend money on marketing without doing the math first. This guide gives you a straightforward ROI framework for direct mail campaigns. Plug in your own numbers and see exactly how many jobs you need to close to profit.

The ROI Formula

Direct mail ROI is calculated with five variables:

Doors Mailed x Response Rate = Calls

Calls x Close Rate = Jobs Won

Jobs Won x Average Job Value = Revenue

(Revenue - Campaign Cost) / Campaign Cost x 100 = ROI %

Let us work through a real example.

Worked Example — HVAC Contractor, 500 Doors

Inputs:

Doors mailed: 500 (Block Buster — $647)
Response rate: 2% (conservative — 10 calls)
Close rate: 30% (industry average for qualified leads)
Average job value: $4,500 (furnace replacement)

Calculation:

500 doors x 2% = 10 calls
10 calls x 30% = 3 jobs closed
3 jobs x $4,500 = $13,500 revenue
($13,500 - $647) / $647 = 1,986% ROI (19.9x)

Even if your numbers are half as good — 5 calls, 1-2 jobs — you are still looking at a 6-13x return.

ROI by Trade — Industry Benchmarks

Here are realistic ROI projections for a $647 Block Buster campaign (500 doors) by trade:

Trade	Avg Job	Expected Calls	Jobs (30% close)	Revenue	ROI
Roofing	$12,000	8-12	3	$36,000	55x
HVAC	$4,500	10-15	4	$18,000	27x
Plumbing	$2,500	12-18	4	$10,000	15x
Landscaping	$3,500	15-22	5	$17,500	26x
Painting	$3,800	8-11	3	$11,400	17x
General Contracting	$45,000	5-8	2	$90,000	139x

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Break-Even Analysis

How many jobs do you need to close to break even on each package?

Test Strike ($397): If your average job is $2,000, you need 1 job to break even (and you will likely get 2-7 calls).
Block Buster ($647): If your average job is $3,000, you need 1 job to break even (and you will likely get 5-15 calls).
Street Sweeper ($1,197): If your average job is $4,000, you need 1 job to break even (and you will likely get 10-25 calls).
Takeover ($1,997): If your average job is $5,000, you need 1 job to break even (and you will likely get 25-60 calls).

For virtually every trade, one closed job pays for the entire campaign. Everything after that is profit.

The Lifetime Value Multiplier

The ROI numbers above only count the first job from each new client. But contractors know that a happy customer comes back.

An HVAC client needs annual maintenance + eventual replacement = $15,000+ lifetime value
A landscaping client signs an annual maintenance contract = $3,000-$5,000/year
A plumbing client calls for every future issue = $5,000+ over 10 years
A satisfied client refers 2-3 friends or neighbours = compounding returns

When you factor in lifetime value and referrals, the true ROI of a single direct mail campaign is 5-10x higher than the first-job calculation suggests.

Conservative vs Optimistic Projections

Conservative (worst case): 1% response rate, 20% close rate. A 500-door campaign generates 5 calls, you close 1 job. If that job is worth $2,000, your ROI is 209%. You still tripled your money. Realistic (most likely): 2% response rate, 30% close rate. A 500-door campaign generates 10 calls, you close 3 jobs. Revenue: $7,500-$15,000. ROI: 1,000-2,200%. Optimistic (strong offer + good timing): 3%+ response rate, 35% close rate. A 500-door campaign generates 15+ calls, you close 5+ jobs. Revenue: $15,000-$50,000+. ROI: 2,200-7,600%. Even the worst-case scenario is profitable. That is why direct mail is one of the lowest-risk marketing investments a contractor can make.

Direct Mail Packages for Ontario Contractors

Package	Doors	Price	Per Door	Expected Calls
Test Strike	250	$397	$1.59	2-7
Block Buster (Most Popular)	500	$647	$1.29	5-15
Street Sweeper	1,000	$1,197	$1.20	10-25
Neighbourhood Takeover	2,500	$1,997	$0.80	25-60

Start with 500 Doors — $647

Most popular: includes design, printing, Canada Post delivery, and tracking

Frequently Asked Questions

What response rate should I expect from direct mail?

For targeted contractor mailers, expect 1-3% response rates. That means 5-15 calls from a 500-door campaign. Response rates vary based on offer strength, seasonal timing, and neighbourhood targeting quality.

How do I calculate my break-even point?

Divide the campaign cost by your average job value. For a $647 Block Buster campaign with a $3,000 average job, you need just 1 job to break even (0.22 jobs mathematically). Almost every contractor breaks even on their first closed job.

What if I get fewer calls than expected?

Even conservative projections (1% response rate) are profitable for most trades. A 500-door campaign generating 5 calls that converts to 1-2 jobs still delivers positive ROI when your average job exceeds $647. We have never had a contractor lose money on a properly targeted campaign.

Does direct mail ROI include repeat business?

The ROI figures we quote are for first-job revenue only. When you factor in lifetime customer value (repeat work, annual maintenance, referrals), true ROI is typically 5-10x higher than the initial calculation.

How does direct mail ROI compare to other marketing channels?

Direct mail consistently delivers 10-20x ROI for contractor campaigns. Google Ads typically deliver 3-8x. Facebook Ads deliver 2-5x. The difference is lead quality — direct mail leads are exclusive and higher-intent.

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Direct Mail ROI Calculator for Contractors: Know Your Numbers Before You Mail