An important part of being a roofer is knowing how to give your customers an accurate estimate for a roofing job, as well as making a profit off it. The last thing you want to do is underbid a roofing job and lose a profit or your client’s trust. Your clients need to know that the price you charge is accurate and secure. To avoid uncomfortable situations where you might lose money from giving an unclear bid, there are some things you need to calculate to determine how to correctly price a roofing job.
Measure and inspect the roof
The first thing you should do to understand what the job may cost is to meet with the client and study their roof. Come prepared to ask the customer many questions, such as their budget, what type of roof they want, what kind of home it is, etc. You should be able to offer them more than one price estimate according to the different materials that you can use. While inspecting the roof, look for damages or additional features that may raise the cost. We suggest you take photos of these to show your client and keep a record of in your CRM.
After doing so, you must measure the roof to come up with the amount of roofing material squares you will need to install. This will be the majority of your roofing job cost, so make sure it is done correctly. Generally, 1 roofing square = 100 square feet. When measuring, calculate the roof base length and width, the roof pitch, and the number of roof squares. HOVER offers this roofing calculator to help you get accurate roof estimates step-by-step.
Estimate material, labor, and overhead costs
Once you have a clear idea of what the roofing job is, you need to come up with the materials you need for the job and what those will cost. Different roofing materials vary in price, and depending on your supplier, you can pay upwards of $7.00 per square foot for an asphalt shingle roof. Also, don’t forget other roofing costs including nails, vents, flashing, tools, underlayment, and more.
Next, you need to determine your labor costs. Look at how many hours your project is going to take and multiply it by the number of employees you’ll have working on the job. You can estimate this amount by tracking labor hours for previous jobs in your CRM. This calculation gives you your labor-hours, which you will then multiply by the hourly wage for your employees to give you a total labor cost.
After determining labor costs, you need to consider overhead costs for a roofing job. The price you charge for a roofing job must be able to cover these costs. Overhead costs for roofers may include whatever ongoing costs you have to operate your business, such as office rent, marketing, insurance, and more. Calculate your overhead costs for a week and divide it by your weekly labor-hours to come up with the amount you need to charge per hour to cover overhead costs. You can use an overhead cost calculator to help you with this step.
Finally, add material costs, labor costs, and overhead costs together to come up with a total roofing job cost.
Add your markup
Now that you know how much it costs to breakeven for the roofing job, you need to add your markup so that you can turn a profit. Your markup percentage depends on the profit margin you want to make on the roofing job. Your Profit Margin = (Net Income/Net Sales) * 100
Your markup percentage should be higher than your profit margin percentage.
Now that you know how you measure a roof correctly, estimate roofing costs and calculate a profit, you’re ready to create a professional quote for your customers and grow your business by doing what you do best.