The ongoing labor shortage in our industry is a constant source of frustration for roofing contractors. Whether you hire subcontractors or employ your own crew, the limited man hours available for your work puts a cap on the number of jobs you can book.
One way to buck this cap on sales is to explore upselling project enhancements that can increase profitability on the jobs you sell. We've explored opportunities in insulation, skylights, exteriors, and more on the blog this year. Another way roofing contractors can fight the labor shortage is to find ways to make your crews more productive with their time so you can allocate more man hours to additional jobs.
Increasing Productivity to Sell More Jobs
If you're not already using an unassisted rooftop edlivery service, then you have an opportunity to put your roofing material supplier to work for you. This can be a huge value for your company, because you can gain back some of your crew's precious labor hours - meaning you can sell more jobs. With some quick math we can see the annual lost profit from having your crew roof-load roofing materials for your jobs:
First let's determine the cost of having your crew do the roof loading. As an example, if you have 3 laborers, they are paid $15/hr including benefits, and it takes them 1.25 hours to load material on the roof, your cost to roof-load is $56.25.
Now say your crew can install shingles at 3 squares/hour. In the same 1.25 hours they spent loading the roof, they could have installed 3.75 sq. If you charge $300/sq, that's $1,125 worth of lost sales. For round numbers, if your profit margin is 33%, then your lost profit is $371.25.
To get total cost per job, we add the cost of roof loading ($56.25) to the lost profit that could have been earned on the crew installing shingles instead ($371.25) to get $427.50per job.
If you install 100 roofs in a year, then your annual lost profit for having your crew roof load material is $42,750 !
That's profit you could have made if all the time your crew was roof-loading material was spent installing shingles instead.
When you leave the roof loading to your distributor, you free up your crew's time to do what they do best - install more roofs! Maximize their labor time - and your profit - by asking for unassisted rooftop delivery on every roof job today.*
We developed a tool to help roofing contractors calculate the value of unassisted rooftop delivery for their own business. Try our online calculator to plug in your own values for crew size, speed, and labor rate and see what the value of unassisted rooftop delivery is for your company!
* Note that some distributors increase their delivery charges for unassisted rooftop delivery, based on the level of service requested due to equipment required or jobsite challenges. Wimsatt Building Materials charges a flat $25 fee for delivery regardless of level of service, from material delivered on the ground to unassisted rooftop delivery on a 3-story or 12/12 slope roof.
About Dave Karras
Dave Karras is the Marketing Manager at Wimsatt Building Materials.
September 09, 2019
August 08, 2019