I’ve never met a roofer who would turn down the opportunity to make $100,000 per year, yet getting to that figure isn’t easy. You need to learn how to make money in roofing. One huge obstacle is limiting yourself by becoming too comfortable in your current role.
“You cannot become complacent,”
advises Paul Kirkwood of Rapid Roofing, a Michigan-based company that knows a thing or two about what it takes to install a roof.
Says Kareem Hunter from H1 Roofing out of Indianapolis:
“I did almost $300,000 subbing for $52/square back in 2012.”
So, how do we get to the hallowed $100,000/year threshold?
Depending on your position as a roofer, there are certain steps one must take.
To help, I’ve broken the process down into three different categories of roofers: sales, labor, and ownership.
Let’s start with sales.
Quite simply, if you’re a salesperson, you need to sell $1 million to make $100,000.
These numbers assume a few things:
- That an average job is $10,000. Obviously, this number is subject to change, depending on where you live and the size of the home, but $10,000 is a safe number to use for our template.
- For the average $10,000 job, you need to sell 100 roofs to reach that $1 million benchmark.
- This also assumes that you’re generating 4 leads a week, and that you’re closing 50% of those leads.
In summation: if you sell two roofs at $10,000 every week, you’ll earn $100,000 over the course of a calendar season.
When it comes to labor, making $100,000 isn’t an impossibility.
“It’s totally doable,”
says AVCO owner Heath Hicks
“When you actually break down what a crew makes,”
Apple Roofing’s Dustan Biegler says,
“people are shocked. They do pretty well.”
Adds Kareem Hunter:
“I’ve always told guys, don’t get paid by the hour. Get paid by the job.”
Here are a few benchmarks you need to hit if you’re planning on earning $1 million as a laborer:
- Do 100 jobs per year while being paid $1,000 per job.
- Complete 200 jobs while making $500 per job.
- Do 400 jobs at $250 per job.
Keep in mind: most roofers have an average of 250 working days in a calendar year. Also, there is a huge market for roofers who are willing to do repairs because big companies only want to do full replacements. Conversely, smaller companies can’t do the repairs because they can’t devote the staff to filling those appointments.
So, if you’re a subcontractor looking for quick money, you should absolutely explore the repairs side of the business.
Get in touch with a few companies in your area and tell them you’re available for repair calls.
Lastly, if you’re an owner, to make $100,000, your goal should be to gross $2 million per year.
This model will yield owners $100,000 in salary, PLUS an additional $100,000 in profit that SHOULD be reinvested back into the business.
“You have to be disciplined. You have to be dedicated to yourself,”
Paul Kirkwood tells business owners, adding that revenue needs to continue being recycled through the company to ensure that future business can be attained.
“Leads cost money. Period.”
Says Dustan Biegler:
“Every position and how you’re compensated for that is really dependent on how much value you’re bringing,”
he says, advising that owners shouldn’t take money out of the business unless they’ve added more value to their company and are thus deserving of a raise.
“When people start a business, a lot of times they are having big visions, and that’s good, but you need to keep the vision in the company and out of your personal life,”
“The business owner is last,”
deadpans Paul Kirkwood, meaning everyone else in the company has to get paid before the owner does.
Ergo, if there is no money left over for the owner, he/she can’t liquidate assets, otherwise his/her business will soon be in a freefall of financial trouble.
What do you think is the most profitable position in roofing?
Sales? Labor? Ownership?
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