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SaaS Magic Number · HVAC & Home Services

SaaS Magic Number for HVAC & Home Services.

Sales efficiency: ARR added per dollar of S&M spend.

Home service businesses that run like operators.

Finance & Strategy · HVAC & Home Services

Why hvac & home services operators use the saas magic number.

Calculate the Magic Number — net new ARR ÷ prior-quarter sales & marketing spend. Above 1.0 = invest more aggressively. Below 0.5 = pull back.

HVAC and home service businesses are some of the highest-velocity SMBs in Canada — and most are leaving 30–50% of their potential revenue on the table due to weak demand systems, broken dispatch, and missing follow-up. SAZ builds the demand, dispatch, and revenue systems that turn home service operators into category leaders.

Benchmarks

What good looks like — typical ranges to compare against.

< 0.5
Inefficient — pull back
0.5–0.75
Acceptable — tighten
0.75–1.0
Healthy — keep investing
> 1.0
Elite — invest more
The formula

How saas magic number is calculated.

Magic = (Net New ARR × 4) ÷ (Prior Q S&M Spend × 4)
Industry context

What changes when saas magic number is applied to hvac & home services.

Inconsistent lead flow across seasons

Dispatch and routing inefficiency

Missed follow-up and renewal revenue

Multi-location ops and franchise consistency

Run the numbers

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SaaS Magic Number · HVAC & Home Services

Want a senior partner to interpret your results?

Email info@Sedighi.ca or call (604) 632-4959. A senior partner responds within one business day.

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