# Money Talk



## markdrm1

What is a reasonable amount to expect to profit from a residential re-roof job? I know that's a broad question but im trying to figure out if its what I want to do for a living.The way I would have to start is by selling the jobs and hiring subs. I have a commercial roofer and a supplier I know from church that are offering to give out my name.I have knowledge of all of the products: felt, roofing, ventilation, etc. from selling it all for a long time but I lack the experience on the roof. I have several roofers that Im pretty sure I can trust to sub for me. I also have a wife who wants to know how much or how little money do roofing company owners make. Im just trying to find out how much money after insurance, subs, and other expenses should be going in my pocket to pay for house and food. What's a your typical range of net profit on a residential re-roof job? If you don't mind sharing!


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## pro exteriors

Where do you live/ where will you be working?


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## markdrm1

I live in Huntsville Alabama in the SE area. There is a mixture of older ranchers and newer homes too. Economically the town pretty stable and is growing. We have a decent average income in the area. At last count there were 133 roofer in the Yellow Book.


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## pro exteriors

I don't have any idea what you'll make there but I live in south Dakota and net about $60 per square if that helps.


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## Acubis

very broad question. Absolutely professional roofers with established business offering great personal and manufactures warranty's and track record of work can expect 45-55% gross profit margin if properly sold.

Just starting out of the garage we see a lot of contractors fail begging for work making in the 20% gross leaving nothing after appropriate cost.


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## markdrm1

I would have to keep my "real job" for a while to help get things started. I guess I will just have to back the numbers out. Sart with what seems to be a the average price per sq. roofers price in town and deduct all of the known expenses. That should leave me with some kind of an idea of what to expect.


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## LCG

I left allot of money on the table "learning" the business. 

Don't start with what you think is the average price. Surely you have friends. Use their homes and call some roofers A-Z and price check them. You want a price for whatever is popular in your market. 

Early to bed. Early to rise. Don't forget to advertise.

Henry Ford said "A man who stops advertising to save money is like a man who stops the clock to save time" Food for thought.

If your going into business get ready to spend some money and do allot of legwork. Try to find the most viable advertising options for your market. Don't be discougaged by all the names in the book.

Most of them suck!

Another thing. Your name in front of the word "construction" won't tell people you are a roofer. Your a roofing businees. "Roofing" is your name.


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## markdrm1

I had one of the bigger / more popular companies come by and give me a bid on my house. To tear off and reroof they are charging $169 a sq. for 25yr GAF and $196 a sq. for 30yr. GAF. I guessing thats leaving about $100 dollars after the cost of shingles alone. Seems like it would be hard to make a living after paying labor, insurance, fleet expense, advertising, felt, nails, etc. I guess its kinda like the old saying. They are loosing money on their jobs but they are making up for it with the volume! Does this sound anything like the way you guys are pricing your work?


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## Billy Luttrell

markdrm1 said:


> I had one of the bigger / more popular companies come by and give me a bid on my house. To tear off and reroof they are charging $169 a sq. for 25yr GAF and $196 a sq. for 30yr. GAF. I guessing thats leaving about $100 dollars after the cost of shingles alone. Seems like it would be hard to make a living after paying labor, insurance, fleet expense, advertising, felt, nails, etc. I guess its kinda like the old saying. They are loosing money on their jobs but they are making up for it with the volume! Does this sound anything like the way you guys are pricing your work?



I am from Birmingham and I would go straight out of business and straight to the unemployment line for those kind of prices.

The average "cost" for material per square for 25year 3tabs with fasteners, felt, ice and water shield, flashings, paint, silicone, and ventilation is going to run you just over 100 per square for premium materials with the bells and whistles. That is not including the price hike coming at the first of next month. Dump, taxes, permits, licensing, insurance all has to be factored in before your labor costs. Even if you have a dirt cheap sub at 55 or 60 per square..........

Dirt cheap is not the way to go by the way.


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## markdrm1

Billy Luttrell said:


> I am from Birmingham and I would go straight out of business and straight to the unemployment line for those kind of prices.
> 
> The average "cost" for material per square for 25year 3tabs with fasteners, felt, ice and water shield, flashings, paint, silicone, and ventilation is going to run you just over 100 per square for premium materials with the bells and whistles. That is not including the price hike coming at the first of next month. Dump, taxes, permits, licensing, insurance all has to be factored in before your labor costs. Even if you have a dirt cheap sub at 55 or 60 per square..........
> 
> Dirt cheap is not the way to go by the way.


Mr. Luttrell, what do you see being a reasonable sub fee in this area for tear off and re-roof? Lets just say that they are dumping old shingles and covering thier own WC insurance. Just trying to get an idea of what I should be charging.


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## Billy Luttrell

markdrm1 said:


> Mr. Luttrell, what do you see being a reasonable sub fee in this area for tear off and re-roof? Lets just say that they are dumping old shingles and covering thier own WC insurance. Just trying to get an idea of what I should be charging.



For a legal/American crew with their own wc/gl and dump trailer/truck you are probably going to be at MINIMUM 65-75 per sq. Remember the law that was passed in Alabama about illegal immigrants..

I have my own employees but I sub out bigger shingle projects so my guys can be on the flat commercial projects and metal projects. I pay 75-95 depending on the scope of work...and these guys have been doing my big shingle jobs for quite a while.


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## markdrm1

Billy Luttrell said:


> For a legal/American crew with their own wc/gl and dump trailer/truck you are probably going to be at MINIMUM 65-75 per sq. Remember the law that was passed in Alabama about illegal immigrants..
> 
> I have my own employees but I sub out bigger shingle projects so my guys can be on the flat commercial projects and metal projects. I pay 75-95 depending on the scope of work...and these guys have been doing my big shingle jobs for quite a while.


 
Thanks! I appreciate the info. Just trying to figure out the best way to transition from a 9-5 to running a buisness without loosing my pants!


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## Ezeksroofing

*bump*

i know this is an old thread but, @mark did you ever get into roofing?


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## emeraldstate

When you sub everything you are basically setting yourself up as an accountant, salesperson, human resources, etc. So you will be compensated at a rate commensurate with those tasks. I would say that this kind of overhead on a roofing contract is maybe 15% to 20% or my neck of the woods probably about $75 to $100 a square. Your mileage will vary based on competition.

Todd
Emerald State


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## TheRomanGuy

I'm making near 100$ per square in San-Francisco. It depends on your state/city a lot.


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## Silb

Not too bad at all for that rate


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## skintscot

Yeah, that sounds about right to me


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