# really big price increases coming very soon



## Grumpy (Oct 29, 2008)

Shingle prices are going nuts, like 2008. Approximately 30% higher than last year. Manufacturers are citing oil prices as well as major storms stating their productivity is at maximum limits. If youhaven't gotten the letters from your suppliers, you soon will be.
Not good.


----------



## Atlanta Roofer (May 2, 2011)

*Rising Prices*

Rising prices make me lose sleep - not just the price of the shingles, but the price of gas - after all, we have to travel to the jobsite. Do you add anything extra on your estimates to cover increase fuel costs?


----------



## Grumpy (Oct 29, 2008)

I lock my prices for 30 days. As my costs go up, so do my prices. If gas makes a signifigant enough increase the mobilization line item. really though I don't worry about gasoline prices nearlya s much as the rest of the country. From a business point of view it's so insignifigant when looking at all the other costs involved in a roofing job. 

I am however implementing a $5 temporary fuel surcharge on T&M jobs.


----------



## dougger222 (Aug 13, 2010)

Getting letters and emails from all the suppliers lately.

My lumber yard bought enough CT materials to get them deep into Summer. My cost is actually lower than last year. When the supply is out I will feel the increases though. My rep reasures me walk in customers pay all the price increases.


----------



## Grumpy (Oct 29, 2008)

Douger, my cost on Ct is actually lowet than it was at this time last year too. But next month I expect that to change.


----------



## dougger222 (Aug 13, 2010)

Who knows we may even find ourselves unable to get certain shingles again.

My friend used to haul for Certainteed and they kick up the machines to match demand. In the Winter they did what he was told was maintance on the machines that lasted as long as a month. In the Winter of 08/09 after the shortage they rented 13 acres from the race track and stock piles shingles though.

You would think when gas was down to $1.50 a gallon they would have bought tons of it and filed every square inch of storage with shingles.


----------



## PTurner (Jun 17, 2011)

Reading this a month after the last post, I was wondering if all of you guys costs are still lower and if you did start charging more to compensate for gas and other expenses?


----------



## apkole (Oct 31, 2008)

Prices increase about 8% for shingles on June 1. Some jobs submitted to supplier are locked in. Price increased on all quotes moving forward. Not much resistance to pricing.

Phone continues to be busy . . . have developed a strategy to keep up . . .

Duplicating self . . . 

Moving to 36 hour days . . .

Anticipating premature demise of self due to self inflicted disorganization:laughing:


----------



## charlotteroofers (Oct 4, 2010)

Im so tired of the increases this year we've had 3 so far and it really screws up our insurance restoration jobs because we have to supplement every job which means it takes even longer to get paid..........Im sick of this price gouging.....

charlotte nc roofing company | kannapolis nc roofing company


----------



## roof101 (Aug 28, 2011)

*price increases*

how much did your prices go up in July ? How bout Aug ?


----------



## Grumpy (Oct 29, 2008)

July was 5% as well as September another 5% only on low slope though. My shingle prices haven't changed. I've been doing alot more low slope than steep slope recently anyways. hard to make a buck in shingles.


----------



## TFaulkner (Apr 26, 2011)

It's too bad that prices increase, but doesn't it hurt the homeowner's more than us? We should be charging more if material prices go up...at least I do.

Only bummer is that some companies don't charge more because they don't read their books, but that just means they'll go out of business~


----------



## Grumpy (Oct 29, 2008)

It hurts us too since most people who think they are qualified to runa business in the roofing industry really are clueless and thus don't understand how to price a job and therefor kill the market with their low ball prices when the absorb the cost increases.


Furthermore most of my jobs are sold on the follow up, not on the first sit. nfact the average sales cycle is 2 months, meaning 2 months after I wrote the estimte I am selling it, and then 2-4 weeks later installing it. This leaves a lag time of 3 months on average from the day the job was priced giving alot of room for the price to go up. It's hard telling someone their price went up 10% when they call you telling you they want to hire you


----------



## apkole (Oct 31, 2008)

Pricing didn't move in July, but saw a 10% bump on shingles only about mid August. Pretty stable, for now . . .

Grumpy, I haven't let price situation bother too much. I just inform the customer on the 1st visit and at the follow up quote meeting that pricing is volatile and that the only way to lock in is to commit. My distributor is good about backing us up on locking the price . . . within reason. We aren't high volume, so for them to lock in six to eight jobs isn't particularly burdensome. 

I've always figured that if the job is really price sensitive, get the load paid for and delivered on site. Worry about the roof top logistics when the time comes if need be.


----------



## TFaulkner (Apr 26, 2011)

Sounds to me like price volatility will work as a closer as long as you're up front about it. 

"Material prices are subject to change, so if you're ready to get started now we can lock you in at this price and you'll be protected from any increase"


----------



## Grumpy (Oct 29, 2008)

Faulker, no doubt. Infact on all my proposals, I have a line "Save $x if this proposal is accepted within the next 15 days." But sometimes people just aren't ready for what ever reason. Case in point, I need some sewer work. It's about $8k. I am about $3k short. You can use what ever close you want on me, I am just not ready unless you're willing to wait for the last $3k. See my point?


Now put yourself in the customer's shoes. I price a job for $10,000. I'm probably the highest guy already, or maybe the 2nd highest. You as the customer scrape up the courage and the trust and the money to hire me, about a month or two after we met. You give me a call and I tell you the price has gone up $300. 

I'm in this situation frequently, and suspect most of my competitors are as well. This is why it too hurts the contractor not just the customer.


----------



## TFaulkner (Apr 26, 2011)

That's a good point, do you offer any kind of financing for people? It might help relieve that in some cases. I haven't incorporated that in yet, but I've been thinking about it.


----------



## red_cedar (Mar 9, 2009)

Shingles I bought for our home ( Timberline Ultra's ), not that long ago ( less then 60 days ) would sell now for $900 more. Prices have gone up.


----------



## Grumpy (Oct 29, 2008)

On every porposal in terms of payment is says "we accept visa and master card. Ask about our financing options." I currently don't have a financing plan because nobody asks. People occasionally use credit cards, and if someone asks for a discount the option to pay by credit card is the first thing to go and I'll discount 2%.


----------



## 1985gt (Dec 21, 2010)

Price valid for 30 days, after the 30 days is up this proposal can be withdrawn by us. No increase no problem then if there is an increase one can withdraw a proposal. Some times if its a job we 90% sure to get we will put something to the fact, This price is good untill (date) after that date the price will be $xxxx.xx some times this gets them to sign quicker.


----------

