What’s a Roofing Company Worth?

Econ 101 taught me that high risk needs high gain. Meaning people who risk the most are or should be paid the most. Sounds fair, doesn’t it? Then what about professional loggers, miners, or roofers paid like so? Many such works are paid slightly higher than the minimum wage. This means their owners in those businesses are taking all the profits, or there aren’t any profits, to begin with.  If it’s the latter, why would an owner keep their business? Let’s see what a roofing company is worth… Being a roofer is one of the most dangerous jobs anywhere. Imagine dangling 100 feet in the air, balancing without a harness, trying to carry heavy tiles, and measuring the alignment. This is what they do 81-0 hours a day. Every day! To me, they are the gladiators of the American construction industry…

No wonder there are over 100,000 roofing companies in America making $45 billion, and employing 260,000 people.

There are

THREE TRENDS PUSHING THIS ANCIENT SKILL

into the future…

1. New Materials – evolution has upgraded our roofs from mud, palm fronds to wood, clay tiles, to shingles, metal to solar, and green/cool roofs. Contractors proficient in the latest roof building techniques and materials are at an advantage.
2. Technology – Technology is always the trend. Surprised? The Latest software help roofers with job assignments communicate internally and with customers, direct labor and materials to job sites, and even have bilingual options for the Spanish workforce.  Drones help roofers conduct safer inspections, measurements, quality checks, and pics for websites and showings.
3. Customer Success – online reputation affects our day-to-day lives. Customer word of mouth and online reviews are the main sources of recurring business.

 

How to Maximize Value

1. Referral Network – the life of a roof is 15-20 years. With new materials and technology, it could be 25-30 years. This means you have to find a new customer daily. But, do you? What if you can make your customers into your advocates? Businesses that have been in business thrive on customer referrals. Simple. If your neighbor talks about a good experience with a roofing company, you will hire them.
2. Trained Employees – trained and certified employees, who can work on different types of projects are a key asset.  The longevity of loyal staff keeps business running smoothly, and spreads goodwill in communities you focus on.
3. Insurance and Liability – managing insurance costs and liability claims are big burdens. But not if you consider them as part of doing business. Consider working with 2-3 insurance brokers and regularly reevaluate your insurance costs. If you have the liability of litigation claims, sort them quickly and quietly. Keep your employees and the long-term benefit of the community in mind.
4. Online Presence – up your game with an online presence. Read your online reviews. Respond to customer feedback. Showcase your work. Develop customer testimonials. Managing online reputation is a marathon. Start on this today.

Roofing contractors gain long-term. If you’re working with a roofer who has been in business for less than 10 years, it is most crucial to continue to build your reputation. The customers who may have purchased a roof from your returns for the second time, that is the real win here. The question is if your business is there yet? Bharat Kanodia – Founder and Chief Appraiser