How to Close the Lead Cost Gap: One $18M Company’s Story

If you feel like you’re doing good work, closing solid jobs, and still falling short…you’re not alone. Many contractors track every metric, improve their sales process, and run solid teams – yet something still drags on the bottom line. 

Tim Brown from RGS Exteriors has experienced this firsthand.

At Qualified Remodeler’s Top 500 LIVE in Las Vegas, Tim joined John Kolbaska and me on the Build to Win podcast where he shared valuable insights that any home improvement business can use. 

In 2025, his company had projected they’d hit $18 million in total revenue. The only problem is, his lead costs crept up from $540 at the beginning of the year to $760 by the end of the year. Since they did not budget for such a steep increase, they are going to fall short at around $16 million. 

So, that $18 million goal is carrying over to 2026. But they have a plan to close the lead cost gap that stood in their way this year. Keep reading to find out what three levers a home improvement business can use to close more sales without increasing their marketing costs. 

Increase Ticket Size

Bumping up your average sale may seem like an obvious lever, but it’s not always an easy one. It doesn’t just mean raising prices. There are several ways to lift the value of each job without shocking the market or hurting your close rate. 

Here are a few to consider:

1. Present upgrades the right way.

Homeowners buy more when they clearly understand their options. Good-Better-Best layouts help them compare materials, warranties, and design choices without feeling pressured. Most contractors underestimate how much clarity improves decision-making. When you make upgrades simple and visual, your average ticket naturally goes up.

2. Package work instead of piecing it out.

Instead of quoting a base project and waiting for the homeowner to ask about add-ons, build packages that show the full value of doing everything at once. This helps homeowners see the long-term benefit and reduces decision fatigue. It also positions your team as the guide – not the order taker.

3. Focus on perceived value, not just price

When lead costs climb, the worst thing you can do is chase volume by discounting. Homeowners rarely buy the cheapest option. They buy the option they understand. Clear communication and professional estimates often do more to increase ticket size than any markup adjustment.

Ramp Up Rehash 

Rehash remains one of the most underutilized revenue levers in home improvement. Contractors often think they need more leads, when what they actually need is another 10–20% of the leads they already paid for.

So, why is rehash not implemented by more contractors? 

For most, it comes down to the dedication, discipline and consistency to see rehash through. It has to be systematically built into your business. 

Here are some ways to make rehash an everyday lead generator rather than an occasional “emergency button” that gets hit at the end of a slow month: 

1. Build a simple, repeatable follow-up schedule.

Most companies lose rehash opportunities because the process lives in someone’s head instead of on a calendar. Create a fixed schedule – day 1, day 3, day 7, day 14, day 30 – and stick to it. Your team shouldn’t guess what to do next; the system should tell them. Automate your follow-up for more predictable results. 

2. Use multiple touchpoints – not just one.

Homeowners respond differently to calls, texts, and emails, so a single-channel approach misses too many chances. Mix your outreach: call once, text once, email once…Then, repeat the cycle. Keep it friendly and value-driven, not pushy. A multi-channel workflow makes you visible without overwhelming the homeowner.

3. Track every attempt so nothing slips through the cracks.

Rehash fails when activity isn’t tracked. Your team might think they followed up when, in reality, three or four valuable leads fell off the radar last week. Whether you use a contractor CRM or even just a spreadsheet – make sure every touchpoint gets logged and reviewed. Accountability keeps your pipeline clean and helps you understand what’s working

Rehash works because it gives homeowners time to research, compare, and potentially wait until their finances align or their schedules settle. Stay present, polite, and consistent if you want to win more jobs without buying more leads.

Generate More Referrals 

Other than repeat customers, referrals are the highest-converting, lowest-cost leads in home improvement. If you’re like Tim and want to grow your sales without increasing your marketing costs – referrals are the most efficient lever you can pull. 

But referrals don’t grow by accident. They grow because you create a memorable experience and make it easy for homeowners to talk about your company. Tim’s team does this through a Brand Ambassador program. The ambassador visits customers after the job, checks in on satisfaction, gathers reviews, and keeps the relationship warm.

Even without a dedicated ambassador, you can build a strong referral engine. Here are a few ways to start:

1. Make asking for referrals part of your process. 

Bake the referral ask into your closeout process. When your team follows a consistent handoff – final walk-through, review request, referral request – you remove the guesswork and make referrals predictable and systematic. 

2. Offer small, thoughtful referral rewards.

You don’t need a big incentive. A modest gift card or a handwritten thank-you note is enough. The goal is to acknowledge the referral and reinforce the habit.

3. Stay visible in your customer’s world.

Most homeowners forget their contractor’s name within a year. A quarterly email, holiday message, or quick check-in text keeps you top-of-mind. When someone in their network needs work, your company’s name will be on the tip of their tongue. 

Referrals grow when you treat them like a system. And in a market where paid leads keep getting more expensive, a consistent referral engine helps you win more work while keeping your marketing spend flat.

A Stronger Contractor CRM Makes Every Lead More Valuable

Rising lead costs aren’t going away. The companies that will stay profitable are the ones that adjust quickly and tighten the systems they control. 

Increase the value of each job, follow up with discipline, and build a steady flow of referrals. Tim’s team is doing that now, and your home improvement company can do the same.

When you put the right processes in place and have the tools to support them, you protect your margins and get more out of every lead you’ve already paid for.

Builder Prime’s CRM helps support these systems by standardizing your processes, automating your touchpoints, and making sure every lead moves through your pipeline the way it should.

If you’re like Tim and you’re ready to maximize the value of every lead with an all-in-one contractor CRM you can count on, schedule a demo of Builder Prime today. 

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Frequently Asked Questions

1. How can contractors offset rising lead costs without increasing their marketing budget?
Contractors can offset rising lead costs by improving the value they get from every lead. Focus on increasing average ticket size, implementing a consistent rehash process, and building a referral engine. These three levers increase revenue without adding more marketing spend.

2. What is rehash in home improvement sales?
Rehash is the process of following up with unsold leads after the initial appointment. It includes scheduled calls, texts, and emails that stay in front of homeowners until they make a decision. 

3. Why do many contractors struggle with rehash?
Most contractors struggle with rehash because they don’t have a clear system. When companies build a structured workflow, rehash becomes reliable and profitable.

4. What’s the best way to generate more referrals for a home improvement business?
Referrals grow when contractors deliver a great experience and make it easy for homeowners to share it. Ask for referrals during project closeout, follow up consistently, offer small rewards, and stay visible with occasional check-ins.  

5. What should contractors focus on to stay profitable when lead costs rise?
Contractors should focus on the systems they control: increasing ticket size, improving rehash, and generating more referrals. These strategies strengthen margins and create more predictable revenue, even when lead prices go up.

6. How does a contractor CRM support stronger sales and follow-up systems?
A contractor CRM organizes leads, automates follow-up, tracks rehash activity, and standardizes sales workflows. It ensures that no opportunities fall through the cracks and helps teams stay consistent with every customer interaction.