Being a Roofing Contractor with 20 years of experience I have to tell you that the business is tough. There are Roofing Contractors that really need a heads up on retail prices. Homeowners and Commercial property owners usually fall under the retail customer base. Having the right price is essential to surviving in the roofing business.
If you are giving your labor away in the retail arena then you are not getting ahead. Marketing is expensive and every sales lead generated is basically $70.00 per lead thrown right in the trash. $70.00 per lead?? How did I come with that number you might be asking yourself. Well in my business I know that I spend $210.00 per closed lead. That’s why I say that marketing is so expensive. Knowing that I have spent that is based on a 30% closing ratio as well. So I get told no most of the time. Usually because my price is right above or way above other contractors.
You have to develop a mindset that enables you to sort through the retail clients. You can always ask open ended questions like: Are you willing to spend 1 hour with me to help you understand how to reduce risks and hassles of replacing your roof? Or How many Estimates are you getting? My response to anyone that says no to the first question is that they may be better off with one of my competitors and if the prospect tells me that they are getting 3 to 5 estimates I usually respond the same way. You are asking yourself why I would do this.
Here’s why. If prospects are not interested in sitting down with me to go over how I can help them reduce risk or they are getting more than 3 estimates. Well this lets me know that they are just price shopping and that is why I usually send them to one of my competitors.
There are 2 Client types as well. Those types are Prospects and Suspects. Prospects first and foremost are people who know what they want and understand that quality cannot happen if the money is not there. Suspects are those who are just shopping around, just do not have any idea of what they want so they start calling every contractor they can trying to get prices and do no understand the value of the service we Furnish.
Lets talk just about the wholesale client now. The wholesale client is one of my favorites. After you have won the business, It will always be there for you. You have to learn to take care of the wholesale client in a way that keeps them coming back. It usually does revolve around price as well. I do not mind giving a lower price to someone who is going to feed me work year after year. This is filler work without a doubt and has always worked well for my business model. Remember this: Wholesale is work on a more consistent basis and retail is usually a 1 time job and if you do a great job then you’ll get referrals. That means more retail clients in the long run. Try to be priced in the middle as well. this will help in closing retail jobs.
To find out more about roofing please visit the following links: Atlanta Roofers or Atlanta Roofing Contractor.This article was authored by Joseph Vann Hamby. All editing and summaries are Authored by Joseph Vann Hamby in a corporate effort to encourage good business practices for the novice roofer.