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How to Run a Successful Roofing Business: Estimating Business Costs and Setting Prices

what are the costs of roofing business?

If there’s one thing every homeowner will always need, it’s a watertight, sound roof. It’s why the roofing industry is said to be worth over $52B annually. Whether you’re an experienced construction professional or an entrepreneur looking for information about running a successful roofing business, you need a solid plan before meeting with your first customer.

Business costs and pricing can make or break any successful roofing business. To get the best margins and improve customer satisfaction, make sure you’re asking yourself the right questions to run a successful roofing business.

How Much Does it Cost to Work as a Roofing Professional in Your State?

Figuring out your overall costs is always step one of working for yourself. In order to run a successful roofing business, you need to do some homework in your region. Every state and individual cities often have different licensing and insurance requirements for all construction businesses, including roofers. Step one: Do some research to determine what steps you must follow before hanging your shingle as a roofing business.

Does Your State Require Roofers to Carry a License?

Many states require you to maintain a contractor’s license (and keep it in good standing) to operate a roofing business. Licensure typically requires that you can prove you’ve been employed in the industry and working under a licensed contractor for a specific period of time.

Contact your state’s contractor’s board (a simple internet search will likely point you to the right state and local resources) to determine the initial application fee and the cost to keep your license current. This could include an initial, one-time fee for taking (and passing!) a licensure exam.

Bonded and Insured: Cost of Carrying Insurance

Working on a roof can be dangerous, or at the very least, there is risk involved. To protect yourself and your employees, you typically need to carry liability and worker’s compensation insurance. Your insurance indemnifies you from personal loss should any incidents or injuries occur while you’re working on a home. Additionally homeowners are usually advised by their insurance policies to review all insurance riders and valid insurance certificates before allowing any work to be completed on their homes.

If your state requires a license, that state likely also requires you to maintain an insurance bond. This bond essentially protects consumers in the event a contractor performs faulty work or doesn’t complete a job per an agreement.

Reseller’s License

Remember, when you start a successful roofing business, you’re essentially a retailer. Because you will have to collect sales tax, you’ll also have to register with your state’s tax authority and acquire a reseller’s certificate.

The First Question Any Owner of a Successful Roofing Business Asks: How Much Up Front Capital Do I Have?

You will need to have more than a skillset as a construction professional to start up a roofing business. Even if you can supply some of your labor needs, don’t forget you’ll also need money for everything else, from marketing to ensuring you can sustain your lifestyle while the company gets up and running. This could include:

  • Advertising

  • Bookkeeping

  • Equipment insurance

  • Rent and utilities (more on that below)

TIP: Don’t forget about transport! You’ll need a fleet (even a small one) to haul materials from your warehouse to job sites. Ask about onsite parking, too, and loading areas for your suppliers.

Establishing Relationships with Reliable, Trustworthy Suppliers

Trust in the roofing business is everything. This also means that you have to trust that you have access to a roster of suppliers to provide the right materials every time you place an order.

It will take time to develop those relationships, too, and time is an expense! It’s critical you don’t underestimate the amount of time you need not just to meet with those suppliers but also to apply for lines of credit, and ask the right questions about shipping and fulfillment lead times.

Critical For a Successful Roofing Business: Fair and Competitive Prices

Today’s homeowner is likely to get multiple bids from different contractors. As a roofer, that means that your bids need to be both fair and competitive. How can you set prices that ensure you’re keeping the lights on, paying your staff, absorbing the rising cost of insurance, and putting enough in your own pocket as a business owner?

Consumers are terribly smart when it comes both to pricing and quality. That’s why at Honest Abe Roofing we guarantee the full cost of the roof for a year after installation, and match pricing on like-for-like bids from competitors (for both labor and materials charges). We’re so confident in that pricing guarantee that we reward customers $50 if they find a roof of comparable quality at a lower price.

Our innovative pricing and quality guarantee is one of the many reasons that our franchise owners can become successful roofing businesses.

Investing in a roofing franchise could help accelerate the time it takes to set up your company as well as reduce the costs of running a successful roofing business. Honest Abe Roofing provides you with a turnkey solution for getting your roofing business off the ground with the marketing, HR, and sales resources you need immediately.

Our team can work with anyone of any skill level and the drive to be a successful entrepreneur. We also offer financing packages, so you don’t have to worry about getting other funding sources.

Contact us today to learn more about how we can support your dreams of running a successful roofing business a reality.


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