# Oil Prices down why isn't shingles



## Hardt Roofing (Feb 7, 2015)

I have been told for quite sometime now that crude oil prices indicate what shingles cost. For example: When I started roofing shingles were $40 something per square and fuel was $2 per gallon so everything made sense gas went up to $4 per gallon and shingle prices went up to $80. Now I have waited awhile to see if they would drop and I don't think they are even going to drop a single penny. Nope, I'm guessing they will increase. 
Are you guys surprised or shocked at this or maybe even a pissed? 
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David
www.hardtroofing.com


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## Trippconst (Aug 1, 2013)

Shingles wont go up and down with oil prices, sure they will go up with oil prices but once you set a landmark the shingle companies arent going to start handing money back, they will stick with where it sits. Its all about inflation, people need money to live and the dollar is worth less and less. 

If you were pricing at 300 a square, and the shingle prices dropped in half. As long as you were still getting jobs at 300 a square and your competition was doing the same, you wouldn't out of the goodness of your heart start pricing at 250 or 275 a square. You take the money while you can


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## Hardt Roofing (Feb 7, 2015)

Thanks for the comments 
__________
David
www.hardtroofing.com


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## Joetheroofer (Sep 6, 2014)

Crude is just one of many raw materials used in the manufacturing process..

Additionally, you have millions of dollars in fixed equipment costs, wages, insurance, depreciation, and etc..

Manufacturers need to cover all of their product costs + the desired profit margin.

Because one of your raw materials gets cut in half does not = total cost of shingles being reduced by the same amount. You might see a 3-4% reduction in price, but this will probably be "hedged" into future price increases.

Raw materials + Manufacturing Operating Costs + Labor + Distribution cost + Overhead + Profit = cost to the public.


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