ROAS Benchmarks
Local Services ROAS Benchmarks
What a profitable ROAS actually looks like for local service businesses, based on typical margins and cost structures.
Typical Gross Margin35% – 55%
Break-Even ROAS1.8x – 2.8x
Target ROAS Range4.0x – 7.0x+
Why This Number
High labor, fuel, and material costs compress margins compared to digital services, but high average order value (like a $10,000 roof replacement) means one closed lead from modest ad spend results in a strong ROAS.
Common Mistake
Failing to account for operational capacity — scaling to a 10x ROAS is wasted money if the business is booked out for months and can't fulfill new jobs.
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