Running a profitable roofing business depends on several factors, and an important one is how much you charge for your work. Many companies make one of two critical errors when estimating the cost of a roofing job.
One, they undercharge the roofing job, reducing profitability and causing issues with cash flow. Or two, they overcharge for roofing work, turning homeowners away so they end up choosing a competitor with lower prices or later payment requirements.
Optimal pricing helps businesses close more sales, maintain profitability, and experience steady revenue growth.
Wondering how to price roofing jobs to represent the reasonable expenses of a job, make a profit, and keep customers? Here are a few pointers to help you determine optimal rates for your roofing jobs. We also go over how you can leverage Roofr to maximize profits.
Know the scope of the job
Make sure you do your homework before pricing a roofing job. First you must determine the scope of the work in terms of how much time it will require.
You can do this by trying to understand the client's needs. Speak with them to get an idea of the issue they’re experiencing. For example, do they need a few shingles repaired, or do they have an issue that will require more resources?
After that, you may opt to go to the job site to see what you’ll be working with. Ensure you make thorough notes of the work required while you're there.
Once you clearly understand the work and the client's requirements, you can move on to the next step: measurement.
Measure the roof
Measuring a roof is essential to determining how to price roofing jobs. Luckily, roof measurements have never been easier to obtain. With technological platforms like Roofr, for instance, you can measure roofs using online tools, eliminating the need for you to have to drive down to the job site and climb the roof to measure everything by hand.
Modern roof measurement technology eliminates uncertainty from this process and consistently provides the most precise figures to contractors through aerial measurements.
With Roofr, you can obtain photos of a property through satellite imagery and accurately draw out a roof in seconds. This allows you to get reports out quicker so you can streamline the process of starting, finishing, and moving on to the next job.
Use measurements to determine the material cost
Once you know the dimensions of your roof, you can calculate the cost of the materials that will be required. But accurate material cost estimation requires more than just measurements. It's crucial to ensure that prices accurately reflect the current price of materials from your local distributor, with consideration to any special offers or reductions.
Fortunately, you can also calculate material costs with platforms like Roofr. Roofr auto-calculates material expenses from your measurement report and catalog. This is not only convenient, but can significantly reduce the margin of error when it comes to costing jobs. You can even compare options available from 5 major manufacturers.
After calculating your material costs, labor expenses are next. You can do this in a few simple steps. First, you’ll need to determine your labor hours—i.e., how many work hours the project will require. Then, multiply that figure by the number of workers working on the project.
While calculating your hourly cost, consider things like hourly wage, prospective worker's compensation, and taxes. Once you've combined those two figures, multiply them to determine your labor estimate. Remember that hourly salaries fluctuate from state to state. Make sure your pricing remains competitive.
When thinking about how to price a roofing job, overhead expenses are also important to consider. A roofing project will always incur overhead expenditures, including office rent, employee uniforms, insurance, and accounting. To profit from roofing jobs, your roofing estimate must consider these expenses.
Choose your markup
All the steps we've outlined so far will maximize your profit in the roofing industry. However, creating a markup for each job will help your business scale further. Start by pinpointing the profits you want to make on your task.
Choosing a marker depends on certain variables, including your competition's prices, the prices your customers will be willing to pay, and the general pricing trends in the industry.
Roofr lets you create estimates and quotes in minutes. From there, it’s easy to add on any documentation, photos, and markups.
Submitting a bid
You’ll need to be able to accurately quote roofing work if you want to grow your business. The best way to go about that is what we've outlined above.
Remember to professionally communicate details to prospective clients after you've estimated the task. Your bid should include a breakdown of prices, with the cost of every service, terms and conditions, and any information you feel is essential to mention.
All bids must also include a summary of products, charges, and services; the contractor's and client's contact information; your company's name and logo; the quote's expiration date; and whether a deposit is necessary.
When it comes to how to price roofing jobs, Roofr is the number one platform that professionals use for accurate measurements and better job pricing. Our platform gives you access to templates that allow you to customize your bids.
Price your roofing jobs more effectively so that your customers are happy and will continue to choose you as their number one choice for roofing. Register with Roofr today to maximize your business earnings!
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