While running a roofing company isn’t easy, building a successful roofing brand that makes a serious bank is much more difficult. Fortunately, there are some things that you can do to increase your chances of success in this highly competitive industry. Here are some effective tips on how to make your roofing company more profitable.
This video talks through key things to do in your estimates that make for more profitable jobs (while still playing by the insurance companies rules.)
Be More Selective
You might think that doing as many roofing jobs as possible will be a sure way to increase your profit. However, sometimes being more selective about what kind of jobs you choose is the way to go.
If you have an offer for a job, but you can see it’ll be a drain on your company, your staff, and your profit margins, there’s no shame in turning it down. If you’re worried that turning down a job will cost you work in the future, consider this: why take a job you know will go poorly over one that might pay less, but you can do well?
Smaller jobs that you excel at will get you the reputation of an excellent company. And if you do turn jobs down, explain why. Give reasons as to why a particular job might be a risk to your company and crew.
Good reasons will help you gain the reputation of a safe roofing contractor who does things correctly and by the book. Homeowners will be more likely to seek out your services if you have this kind of reputation. They won’t be as eager if they assume you do sloppy, rushed work.
Don’t Get “Romantic”
If one of your employees is underperforming, you can’t get too misty-eyed about whatever issues they might have outside of work. Though it’s hard to have conversations about performance or termination, sometimes letting an employee go is what you need to do to increase your profit margin.
Whether you just can’t justify paying an extra person, or if they simply don’t meet your standards, it’s better to shrink your team for more effective jobs.
Write Thorough Estimates
Any time you write an estimate, it must look professional, it must be accurate, and it must be coherent. If it looks like you just made up a bunch of fees and plastered them together haphazardly, you will brand yourself as unprofessional and end up with a reputation for sloppy work.
Well-written estimates that explain why and what you are charging for will help both homeowners and insurance agents understand what you need from them. Have correct information, make it easy to read, and explain everything so they know you’re knowledgeable and you understand how to make something up to code.
Sometimes different areas will require additional costs due to differing government requirements. Explain this too for any extra fees that exist because of government standards.
You can also write your estimates in a similar language that insurance agents use. Often, agents might throw out a claim because they don’t understand roofing jargon. But if you tweak the words to something an agent would be more familiar with, they’ll recognize the claim as legitimate and won’t wrongly dismiss it.
Look Into Complex Jobs
If you want to specifically increase margins with an insurance company, look into more complex jobs. A simpler roof can be easily profitable, but claiming more expensive shingles or additional labor will bring more profit through the insurance company.
These claims are especially legitimate if there are solid reasons for them. For instance, if the roof is hard to access and you need a bigger crew to accommodate it, you can successfully claim this in your estimates.
Keep Your Marketing Costs Low
Putting too much of your revenue into marketing can put a financial drain on your company. Although marketing can help you get more jobs and more potential revenue, anything more than five percent takes away from you and your staff.
If you find yourself constantly chasing your next job, you’ll end up in a vicious cycle of paying to get paid. This will only result in burnout and exhaustion. Limit your marketing spending and focus on other aspects of the work to increase your profitability.
Always Be Professional
No matter what, always be professional. Whether it’s in your job selection, employee discipline, or writing estimates, remember to give good reasons for your decisions and explain your process to help others help you.
Get Hooked up with Serious Profits By Partnering with a Serious Agency
Here at Hook Agency, we believe that any roofing company can maximize its profits. All it takes is a little help from agencies like us. While we work our magic, you will get to see your profits climb ever higher as they reach new and exciting heights.
We offer VIP-grade service for all of our clients and work tirelessly in their service. All you need to do is pick up the phone.
When you want to go big and grow fast, Hook Agency is where it’s at. Give us a call today!