Running a roofing company isn’t easy. In fact, it’s among the toughest jobs in the world, according to research by the global recruiter Career Addict.
While the physical strain of working on a roof in summer is itself a challenge, roofers face a more subtle challenge: getting clients.
The problem is, most people don’t use roofing services often. Even if you have a solid base of loyal customers, only a handful of them will use your roofing services more than once a year. How do you make more money as a roofing contractor in such a tough industry?
Keep reading to find out! In this guide, we’ll discuss the critical things you can do to increase your roofing business profit margin.
Industry sources show that roofing contractors earn an average salary of $84,500 a year. That’s quite high, considering the median annual salary across the US is $59,428.
According to Roof, 23% of roofing businesses earned a maximum of $50,000 annually in 2022. 40% of businesses earned between $50,000 and $100,000, with the top percentile netting over $150,000. So, if your roofing company generates less than $50,000 a year, you’ll need a rock-solid strategy to improve profitability.
Ready to make some roofing dollars for your business? Follow these tested and proven strategies to win more roofing jobs in a saturated market.
Profitability in roofing businesses comes down to one critical aspect: Lead generation.
No leads means no sales, no business, and no profitability. But how do you win clients in such a competitive industry? One way to stay on top of the lead generation game is to partner with a reputable roofing leads generation agency, like 33 Mile Radius.
Such companies allow you to generate valid roofing leads at a flat fee. You get leads as either phone calls or text messages. Better still, the leads that come your way are qualified and have met certain criteria to be deemed valid.
It’s a good business practice to never rely on a single client or industry for more than 20% of your revenue. Should that customer switch to the competition, you’ll likely run into cash flow problems. Likewise, in business, diversifying helps you get more income streams.
Do you market yourself as a residential roofing contractor? Why not expand to also offer commercial roofing services? This way, your client base will consist of homeowners, builders, and business owners, and you’ll significantly grow your profits.
Partnering with a lead generation agency is a surefire way to get a stream of quality leads. But it’s not the only way to get roofing leads.
Did you know that top blogs get 67% of their traffic and leads from organic search?
With a well-designed and SEO-optimized website, you’ll never have to pay for leads. Give your website a makeover, and potential clients will come to you.
Make sure your website is optimized for mobile and loads fast. Also, ensure the content sells and positions you as an authoritative force in the industry. If you have earned any roofing awards, ensure they’re clearly displayed on your business website.
Upselling and cross-selling are powerful strategies to improve roofing sales.
When you engage with customers—whether on your website or social media—identify opportunities to upsell. How do you do that? By offering them a better roofing solution with more features than their initial choice.
For example, if a client is considering standard asphalt shingles, you could propose a premium designer shingle roof that’s more durable and aesthetically pleasing.
For cross-selling opportunities, offer complementary products/services that align with their project. For example, if you’re replacing an old roof, you could cross-sell by offering new siding or gutter replacement. This way, you get double projects, which translates to more profits.
By following these clever roofing strategies, you’ll be on your way to overcoming one of the biggest challenges faced by roofing contractors—getting sales. Roofing can be tough, but with the right strategies, you can double your profits and build a solid base of loyal clients.