Podcast Episode Summary

Podcast: Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast

Episode: Is Direct Mail Back? The 2026 Growth Strategy for Service Businesses
Host: John Wilson
Guest: Sam Preston, CEO of Service Scalers
Date: February 17, 2026

Episode Overview

This episode tackles the timely question: Is direct mail making a comeback as a key marketing channel for home service businesses in 2026? Host John Wilson and guest Sam Preston dig into the practicalities, challenges, and opportunities of leveraging direct mail for real business growth in plumbing, electrical, and HVAC sectors.

The conversation explores why direct mail, often dismissed as an "old dinosaur" marketing tactic, remains both a hidden weapon and a proven winner for certain home service companies. The hosts break down what makes direct mail effective, who should consider it, the common mistakes, and the strategic nuances—from campaign design to offer selection—required to maximize ROI in today’s noisy marketing landscape.

Key Discussion Points & Insights

1. Direct Mail: Outdated Tactic or Untapped Goldmine?

• Direct Mail’s Reputation: Sam calls it “this old dinosaur marketing activity or ...the secret thing that nobody knows about, but it still works.” (00:02)
• Direct mail is often overlooked in today's digital-led marketing age, but can provide excellent returns when done strategically.
• Someone in every market is winning with this channel, even if many businesses dismiss it. (00:23)

2. Workshop Announcement & Service Business Growth (01:10)

• Sam promotes the upcoming "Book Solid" marketing workshop at John’s facility, focused on advanced marketing for service business owners.
• The workshop dives deep into multi-channel marketing, ongoing strategy iteration, and real-world campaign planning for 2026.

3. Why Direct Mail Still Delivers (06:51)

• John compares it to other legacy media: “Does TV still work? Well, yeah, of course it is. It's the cheapest way to reach the most amount of people.”

• Direct mail shares a direct response mindset with modern platforms like Meta or TikTok, but with less competition and distraction.

• A real-world example: Two top contractors in the same market running mailers—one achieved a 14x ROI, the other barely broke even, both mailing "the same people.” (07:46)

  “For one of them, they were getting a 14 times return on investment ...for every dollar... they received $14 of revenue... Matt from Caldad and Brandon from Preferred... same market... [while Bradon] was getting like a one times... might even be negative.” (07:46)

4. What is Direct Mail in 2026? (11:42)

• Defined as physical marketing delivered to homes (postcards, flyers, letters, bundled offers like Valpack).
• Success relies on experimentation and standing out visually or creatively in the mailbox, as one would try with Facebook ads—creative, size, and messaging are all levers to pull.
• Memorable moment: Friend sends certified mail—terrible customer feedback, but "open rate was a hundred percent." (13:32)

5. Common Direct Mail Mistakes (14:02)

• Biggest error: Running a single “blast,” seeing no results, and quitting (14:09)
• True ROI requires consistency and multiple touches. One-and-done campaigns almost always underperform.

6. Target Audiences and Results (14:24)

Four key segments:

1. Members (active subscription customers): highest ROI—up to 60 calls per 1,000 mailers.
2. Active customers (used in last 2-3 years): strong, but lower than members.
3. Inactive customers (one-time or very old transactions): lower response, but worth reengagement.
4. Net-new prospects: lowest conversion (1%-2%), best for mass campaigns.

“If I send a thousand letters to members, I'll probably get something like 60 calls ...to people who have never heard of me... maybe that's a 1% conversion rate.” (14:24)

7. Insourcing vs. Outsourcing Direct Mail (18:00)

• Best-in-class firms insource creative design and campaign management to rapidly iterate and optimize, akin to top-tier digital ad strategies.

• High-touch, high-effort campaigns—internal iteration drives better ROI.

  “It's very similar to meta ads. Like you have to be able to iterate fast...” (18:00)

8. The Strategic Edge in 2026: Go Where Others Aren’t (21:12)

• Mail offers less competition and authentic “local business” appeal—especially pronounced in underserved, rural markets.

• Opportunity to dominate geographic pockets with little-to-no competition in the mailbox.

  “The fastest growing businesses that I know are in the middle of freaking nowhere right now just because there's nobody competing with them.” (22:02)

9. Building Trust and Legitimacy (26:11)

• Customers trust mailers more: “someone mailed me, I know they're legit, they serve my area.”
• John credits landing his own landscaper via direct mail—mailer came “at the perfect freaking moment” when he couldn’t find anyone in his area (27:18).

10. Iteration, Design, and Offers (29:04)

• Test everything: shape, size, color, messaging, offer itself.

• Friend Isaac in Chicago: runs 20 campaigns/month, mailing 40,000 letters/week. Focused on one high-performing offer, iterates on copy, design, and segmentation for 9–11x ROI (29:05).

  “He found this letter and then he started just iterating and testing outside of that letter... runs 20 different campaigns a month... 40,000 letters a week.” (29:05)

• Sweeping up a neighborhood can “make you the mayor”—neighborhood blitz campaigns for route-based businesses can dominate entire areas for landscapers, pool cleaners, power washers, etc.

11. How and When Mail Works

• Consistency: Twice-a-month touchpoints often best; expect up to six months to see results with cold audiences (32:45)
• Audience size math: For net-new, 1–2% conversion. To generate 100 leads/week, a repeated universe of roughly 40,000 is a working estimate (34:21).
• High-ticket offers win: Products/services with $10K+ job value (systems install, sewer replacement) can support large spend; low-ticket offers (sump pump, toilet repair) struggle to break even (35:49)
• Key test: “How many of these do I need to sell to pay for this campaign? ... If it's 50, then, like, I'm probably doing the wrong thing.” (38:42)

12. Crafting the Right Offer & Copy (37:23)

• Focus on the customer’s job-to-be-done; speak to pain or need (“Make it easy to feed your family tonight”—not pizza specifics)
• Use both sides of the mailer: copy on the address side is as important as the primary offer side (39:40)

13. Data, Segmentation, and Tactics (42:00)

• Direct mail allows for deep segmentation by zip, income, credit, education—often more granular than digital targeting.
• “High touch,” “methodical approach,” and constant testing are non-negotiable for success.

14. When Should a Service Business Start Testing Direct Mail? (43:28)

• Realistically, once there’s a meaningful experimental marketing budget—typically at ~$10M revenue.

• Early-stage companies can be put at risk by the cash outlay; bigger organizations can sustain the cycles needed to find the killer campaign.

  “I think when you have testable marketing budget, which I believe happens later on. So probably like 10 million.” (43:41)

Notable Quotes & Memorable Moments

• “Direct mail is like this old dinosaur marketing activity or it's like the secret thing that nobody knows about, but it still works.” – Sam Preston (00:02)

• “For one of them, they were getting a 14 times return on investment... same market. And my friend Brandon ... [was] getting like a one times. Like we might even be negative some months and we're mailing the same people.” – John Wilson (07:46)

• “So you have a lot of, like, creativity has no end with direct mail. And I almost think you need—the more creative, probably the better.” – John Wilson (13:30)

• “You don't just get to delegate that.” – John Wilson, on why iterative, in-house management wins with direct mail (19:32)

• “Maybe direct mail in a more rural... pick a city ...that only has two plumbers and just mail the shit out of it for six months. You'll probably own the whole city.” – John Wilson on rural blitz strategies (22:10)

• “There's a spark of legitimacy with direct mail. ...In 2026, like, if someone's mailing me, I'm like, okay. Like, I know a couple of things about this business.” – John Wilson (26:11)

• “He found this letter and then he started just iterating and testing... now runs... 20 different campaigns a month... 40,000 letters a week.” – John Wilson on Isaac’s direct mail king strategy (29:05)

• “How many of these things do I need to sell to pay for this campaign? ... If it's 50, then... I'm probably doing the wrong thing.” – John Wilson (38:42)

Timestamps for Important Segments

• [00:02] – Direct mail: myth vs. reality in 2026
• [01:10] – Preview of the Book Solid marketing workshop; growth through advanced marketing
• [07:46] – Two contractors, same market, wildly different ROIs on direct mail
• [14:02] – Most common direct mail mistake: lack of repetition and iteration
• [14:24] – Segmentation: the four critical mailer audiences and why response rates differ
• [18:00] – In-house vs. agency management: why iteration speed matters
• [22:10] – Unlocking growth and market dominance in rural/underserved regions
• [26:11] – Mail as a trust-builder and legitimacy signal
• [29:05] – The science of iteration: Isaac’s 9-11x ROI strategy
• [35:50] – The importance of offer size: high-ticket wins, low-ticket struggles
• [37:23] – Writing copy for the job-to-be-done; offers that resonate
• [39:40] – Mailer design: why both sides matter and design tips
• [43:41] – When direct mail makes sense: revenue benchmarks for testing

Actionable Takeaways

• Direct mail isn’t dead—in fact, there’s less competition and higher trust in 2026 for those willing to innovate and execute at a high level.
• **Success comes from consistency, creativity, and relentless iteration—**as with digital channels, but with more tactile, direct techniques.
• Target segmentation, offer value, and campaign design are the critical drivers of ROI; test until you nail the combo for your audience and market.
• Dedicate sufficient budget and patience, especially for cold prospecting; do not expect instant wins with a single blast.
• Consider starting direct mail when you can risk $10k/month on experimentation—later stage for most, but a winning direct mail program can transform your growth trajectory.

In the hosts' own words:

“Someone in your market is killing it with direct mail right now. They're kicking your butt in it. So you should probably figure out how to do it.” – John Wilson (42:00)

Listen to This Episode If...

• You own, operate, or market for a home service business (plumbing, HVAC, electrical) and want to unlock new lead sources.
• You're tired of competing on crowded digital platforms and curious about "old school" channels that can still deliver.
• You're ready to move beyond marketing basics and inject creativity and scientific experimentation into your growth strategies for 2026.

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