Quick answer
The most you can afford to pay per lead is your gross profit per enquiry: average job value × the share of enquiries you book × your gross margin. At £450, 30% and 40%, that is £54. Pay less than that and each enquiry makes a profit; pay more and it loses money.
Your numbers
Change the figures to match your shop. The results update as you type.
Most you can pay per lead and break even
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Revenue per enquiry
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Your cost per booked job
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Gross profit per lead at your price
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Per 100 leads
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What your booking rate is worth
| If you book | Most you can pay per lead | Profit per lead at your price |
|---|---|---|
| 10% | ||
| 20% | ||
| 30% | ||
| 40% | ||
| 50% |
Key takeaways
- The most you can pay per lead depends on three numbers you already know: job value, booking rate and margin.
- Cost per booked job matters more than cost per lead, because it shows what winning a job really costs you.
- Your booking rate is the number you control most. Faster replies and clearer quotes raise what every lead is worth.
What should you enter?
- Average job value: the typical invoice for the work you want more of, excluding VAT. VAT is not your income, so leave it out.
- Gross margin: what is left of the job value after parts, paint, materials and the labour cost of doing the work, as a percentage. If a £450 job leaves £180 after those costs, your margin is 40%.
- Booking rate: booked jobs divided by enquiries. Use the last two or three months of your own figures, not a guess. If you have not tracked it yet, the guide on turning enquiries into booked jobs shows how.
- What a lead costs you: total spend divided by enquiries received. Include management fees, not just ad spend, or lead service charges per lead.
How does the calculator work?
It does four sums:
- Revenue per enquiry = average job value × booking rate
- Gross profit per enquiry = revenue per enquiry × gross margin. This is also the most you can pay per lead and break even.
- Cost per booked job = what a lead costs ÷ booking rate
- Profit per lead = gross profit per enquiry − what a lead costs
It also shows how the most you can afford to pay changes as your booking rate moves, because that is the number most shops can improve fastest.
A worked example
Take a shop with an average job of £450, a 40% gross margin and a 30% booking rate:
- Revenue per enquiry: £450 × 30% = £135
- Gross profit per enquiry: £135 × 40% = £54, so £54 is the most it can pay per lead
- At £40 a lead, cost per booked job is £40 ÷ 30% = about £133, and each enquiry leaves about £14 of gross profit
- If the booking rate slips to 20%, the most it can pay falls to £36, and the same £40 lead now loses about £4 each time
The lead did not change. How the shop handled it did. That is why response time and quoting matter as much as where leads come from.
How should you read the results?
- Profit per lead above zero: the source pays for itself on gross profit, before your overheads such as rent and admin.
- Below zero: either the lead costs too much, or too few enquiries book. Check your reply times before you drop a source.
- Cost per booked job: compare this with the gross profit on a job (job value × margin). If winning a job costs a large share of it, the source is expensive.
Test any new source on at least 20 to 30 leads before judging it. A handful of enquiries can mislead in either direction. The guide to bodyshop leads sets out what to ask a provider.
Frequently asked questions
What is a good cost per lead for a bodyshop?
There is no single figure, because it depends on your job value, margin and booking rate. Work out your break-even with the calculator, then aim to pay well below it.
Should I include VAT in the job value?
No. Use the job value excluding VAT, because VAT is collected for HMRC and is not part of your income.
Does the calculator include my own time and overheads?
No. It works from gross margin, so rent, admin and your own time are not counted. A lead that only just breaks even on gross profit will not cover them.
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