by Chris Hunter
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One of the most challenging and controversial topics every roofer must confront is how to price their services for both competitiveness and profitability.
Getting the pricing game just right is essential to keep sales moving; however, getting it wrong can be detrimental to profitability and the growth of the whole business.
From trying to undercut other contractors to simply charging too much in a particular community, roofers without a system for generating sales and profit will struggle to reach their business goals.
No amount of marketing and new sales can replace effective pricing using a system that supports growth.
Using a Profit First approach, roofers can figure out what their service rates should be and how they can maintain their company at those rates.
Why Don’t Common Pricing Methods Create Profitability?
Though it might seem like the most common sense way to figure out pricing for roofing services, the typical sales equation can prevent business growth and keep contractors fighting to achieve their profit goals.
The standard sales minus expenses equals profit may be the standard formula used by business owners all over, but this method often fails to produce enough profits for roofers to create growth.
The Profit First method flips this equation around to elevate profit as a priority, turning it into sales minus profit equals expenses.
Based on this formula, roofers can create a cash management system for their company that generates the profit they want and need, allowing them to actually achieve their business goals.
Why Is It Essential to Flip the Profitability Equation?
Flipping the profit equation may not make sense from the onset, but by understanding the change it creates, its effectiveness becomes obvious.
Essentially, when profit is taken first, it creates the need to generate enough income to cover all the expenses.
Whether that occurs by getting more sales, adjusting pricing for roofing services, improving business practices to minimize waste and boost productivity, or all of these, the two variables are sales and expenses with profit as the one permanent factor.
Learn How A Profit First System Can Help Roofers
In this week’s Roofer Growth Hacks episode, Chris from RoofingSites.com talks with Profit First business coach Shawn Van Dyke about how roofers can price their services correctly using the Profit First approach.
Make Sure the Price is Right With Profit First
The connection between pricing and profitability is completely interconnected, but probably not the way that many roofers believe it to be.
To choose the right pricing for their roofing services and actually be able to build their businesses, contractors should consider the Profit First method of managing their cash flow.
Putting profit first, roofers can then address how their company functions and how to rate their services to generate the most profits without letting money or customers go out the door.
Learn about Profit First management, digital marketing, and much more by visiting RoofingSites.com.
Schedule a free marketing call with Chris and also get a free copy of of his book, “The Ultimate Guide to Digital Marketing for Roofers,” by clicking here!
Confused About Marketing for Roofers?
Contact RoofingSites.com For Roofing Marketing Services!
Call 888-308-2168 To Consult With Us!
The post How to Price Your Services Using Profit First with Shawn Van Dyke! first appeared on RoofingSites.com.
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