Roofing Industry Projection: Have you ever considered the idea of roofing companies going public on the stock market?
For many years, this was seen as unlikely to happen, but with a growing number of roofers deciding to focus on building long-term retail companies in their markets, it’s not a stretch to assume we might one day see roofing companies develop into titans on Wall Street.
There are a few companies already on their way to doing this. This year, Heath Hicks and AVCO Roofing are moving into an even bigger warehouse than the one Dmitry and Roofing Insights were shown a few months ago.
Apple Roofing in Nebraska currently operates out of a massive building, and each year the company’s branding efforts increase through their use of plastering the can’t-miss company logo onto one of their vehicles.
Also adding to this trend is that more storm chasers are ditching life on the road in favor of working for a solidified, local company.
But that doesn’t mean hungry and capitalistic entrepreneurs aren’t still out there trying to amass as much revenue as possible.
“We have this new breed of guys that just want to make money,”
Dmitry says, talking about guys in the industry who want to make quick money so they can buy Rolex watches, Range Rovers, and live a Wolf of Wall Street lifestyle.
One of these guys is Lee Haight, a self-proclaimed capitalist pig who wants to be bigger than Grant Cardone.
While Haight has built a very profitable company, most money-hungry storm chasers often go into bankruptcy because their businesses aren’t built to survive long-term.
“They’re really good at over-promising and under-delivering,”
Dmitry says.
Most of these companies also are poorly managed, and they never develop the infrastructure that is necessary to ensure that their business can thrive for years to come. Additionally, they operate under the belief that they are too big to fail.
Yet just like the now-defunct Blockbuster, a movie-distributing powerhouse in the 1990s and early 2000s, no one is too big to fail.
Right now, local businesses are better positioned to adapt to changes in the marketplace. They consistently have both a staff and reservoir of potential clients that allows them to navigate the market’s fluidity.
On the other hand, storm chasing outfits consistently rely on inclement weather to find work, and while storms and hail will always plague roofs, the inconsistency toward when these splashes of bad weather will happen leave storm chasing owners constantly on the lookout for good help.
“If your closing rate is about 20%, you suck,”
Dmitry then mentions during his recent monologue on Facebook Live.
His words are directed toward storm chasers who claim that a 20% closing rate works by their metrics.
But for most retail roofing companies, their closing rates are significantly higher.
For example, take Jim Klingbiel of Advantex Roofing in Chicago.
He doesn’t have a receptionist, yet he still closes between 40-60% of his leads.
Those numbers are not only a testament to Klingbiel’s outstanding quality, but also to the fact that he is a local guy who consumers can trust in times of need.
As we have mentioned multiple times on our channel, storm chasers are unreliable because they cannot service customers if their roof ever needs a repair, and that is preceded by the sad reality that many storm chasers will run away with money without doing any work.
Customer service is not part of a storm chaser’s M.O., but they thrive because according to Dmitry, “20% of people will buy from anyone.”
Are you a new roofer?
Focus on building your business from the ground up with a focus and commitment to customer service. Immediate growth is not guaranteed, but over time retail companies have proven to be much more successful than storm chasers.
As we have said all along, the market has shifted away from storm chasing and is instead rewarding local contractors.
This is a byproduct of what Dmitry terms the “reverse mushroom” effect.
The mushroom effect begins when you have an established company (i.e. Apple Roofing) who consistently grows. Then what happens is other people want to replicate the success of that company, and more people branch off and do that.
It’s a stark contrast from years ago, when many people left established businesses to do storm chasing.
But unlike in the past, Roofing Insights believes residential roofing companies are here to stay, due to not only the change in market, but also the fact that the roofing industry is attracting people from the corporate world who over time have seen how profitable roofing can become.
One of those guys is Jason Harley, owner of Eagle Eye Roofing down in Texas.
He was a staple of the corporate world before being mercilessly let go by his former employer. Harley is a great example of someone who is bringing a fresh perspective to the industry, and it’s also guys like him who are going to change the perception of what it means to be a roofer.
Dmitry’s Storm Group Roofing has also seen the same influx of talent walk into his headquarters seeking employment. Most people tell Dmitry they want to work for Storm Group Roofing because they see his content on YouTube.
The power of branding extends beyond generating leads and acquiring customers. By branding your business as reputable and reliable, talented people will want to be a part of your foundation.
These are just a few of the market trends that Dmitry has predicted for the upcoming decade.
What do you think? Did we miss any?
Comment below with your thoughts.
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