[CALLSPC]

I'm looking for help with pricing. My business consists mainly of painting, siding, and remodeling. We are branching out into shingle re-roofing projects. Our company is based in Atlanta but we work throughout Georgia, Alabama, S Carolina, and Florida.

Our current sub-contractors have given us pricing as follows on a 3/12 to 7/12 pitch roof

$0.45 per sq ft for tear-off and re-felt (labor & material)
$0.45 per sq ft for a three tab 20 year shingle
$0.10 per sq ft for misc (ridge vent, flashing, etc
$200 for the dumpster and haul away
***Add $0.20 per sq ft for 8/12 to 16/12 pitch
***Add $35.00 per 4'x8' sheathing if needed (material & labor)

For Example: A customer has a 7/12 roof and wants the old shingles torn off and new felt/shingles installed. Our vendors will charge us $1.00 per square foot plus a $200 rool off container fee.

Is this a fair price?

What should we mark up the sell price to be?

Thanks,

Pete

 

[AaronB.]

OMG THe industry goes another step into the marsh.

 

[Grumpy]

Aaron let's help this guy improve his pricing instead of criticising. Until I realized I was giving away my services at cost, I thought I was making a good living.

I pay my subs 40% more than you, BY CHOICE. I could easily find the guys willing to work for $45 a square but to be honest I don't want them on my roofs.

Let me ask you, why would you charge by the SQUARE foot for a linear applied application like ridge vent? That's never made any sence to me. My former boss used to do that and it erked me every time.

Only you can know your markup. Please see this thread: http://www.contractortalk.com/showpost.php?p=20872&postcount=5

As a professional roofer the first thing I will tell you is that you are breaking laws if you operate as a roofer with painting insurance. One other thing is to make sure licenses are not required in your areas of operation, or again you will be breaking the law.

 

[CALLSPC]

Thank You Grunpy for having the maturity to reply instead of leaving a lame one liner.

Regarding pricing to subs, I had (4) long term roofers reply to my RFQ and the average in Metro Atlanta is $1.05. That said, I do not charge by the square foot for ridge vents. We charge actual price plus, $x.xx margin.

That said, what do you recomend for margin?

Off the subject, I've read various threads by you and you stated that most of your leads come from the web.

Any help or hints are welcome. :Thumbs:

 

[letscut]

pricing

depends on how good you are like here in kansas around my area i have one of the highest mark ups around and people pay it for the simple fact is my reputation there are always the ones who try to under bid me but that never works a little advise and i do not know your situation but here it is if you are a painter and thinking of hiring crews for roofing you better be real familiar with the roofing side of things cause here is what will happen you will hire a crew you think knows what there doing and not know what to look for and it will become a nightmare it will cost you in the long run hell if my wife would get 3 jobs i would become retired lol not a good chance of that happening we do not have the mark ups here in kansas but here are my prices heritage shingle 145 turn key and 3 tab 135 a square that includes tear off , felt shingles , flashing's and all metal work high dollar shingles like gaf are more but are dumps are free , and insurance is not bad but like i said if your not a roofer think twice about being one the best advice i can give is get what you can in terms of money make sure you have the proper insurance and sub crews make sure they have there own insurance and for gods sake do not use the motto it won't leak if it does not rain my motto is hire the best or leak like the rest hope i have helped....

 

[Grumpy]

callspc, where are ya from?

I too have a pretty high markup. Search the forum for "a gift for my friends" or "a present for my friends".

Yeah I hired a crew that I thought knew what they were doing and a 10 square lay over ended up taking 5 days and wasn't completed properly. I spent about 6 hours redoing things. Had I not known how to make those repairs I dunno who I could have hired to do it.

 

[CALLSPC]

Pricing cont.

callspc, where are ya from?

I too have a pretty high markup. Search the forum for "a gift for my friends" or "a present for my friends".

Yeah I hired a crew that I thought knew what they were doing and a 10 square lay over ended up taking 5 days and wasn't completed properly. I spent about 6 hours redoing things. Had I not known how to make those repairs I dunno who I could have hired to do it.

Hey Grumpy...I'm originally from Detroit but have been living and working in Atlanta since 1998. I use two sub-contractors who have been in the business for over 15 years each and have a very good reputation. To that end, both carry $2 million general liabilty and $1 million in Workmens Comp.

 

[AaronB.]

MAy I ask why you are getting into contracting roofing if you know nothing of its costing?

 

[darryl]

If your coming down to Florida beware of the licensing laws, if your writing contracts on your paper then your company has to be licensed in the city or county that it works in, this is for all building trades.
Prices that we use now are inflated due to the 4 storms that came blowing thru last year, shingle roofing was selling for $ 250 per sq and up after the storm, in some areas they are back to pre storm prices 150 per Sq and up I would think that by this summer prices will stablize and be back to normal. 3 tabs 135 to 150 30 yr 180 to 220 Right know we are paying 70 per sq tear off and go back to 6/12 add another 10 per sq for 7/12 to 12/12 our average pitch in our area is 5/12 After we finish up another couple of hundred houses we will be back to our normal type roofing mainly commercial flat re roof work , our prices start at 450 per sq

 

[Hammer01]

AaronB, what is the recommended PSI for your head?

Callspc, if you continue to have trouble here is an easy way of coming up with close, but not exact pricing. take the cost per square (materials only) and multiply by 4. There is a minimal margin of error here, but like I said it will get you close without knowing all of your specific overhead charges.

to give you an idea we get for 3-tab 20-year shingles $175 per/sq

 

[AaronB.]

Ok, your system would put me around 280 a square. I sell at higher prices than most of my competition, and on a walker, I do not think I could land it, and on a stick, it is too cheap.

 

[jproffer]

DAYYUM...Aaron, where do you get shingles for $70/square??? It may be time for a new supplier. Maybe it's location, but around here (about 6 hours south of you), we pay around 35-38 for dimensional and about 28-30 for 3-tab

 

[Grumpy]

30-year archi's are 42 plus tax
25 year 3 tab's are 32 plus tax

Aaron was probably adding shingles plus accessories times 4.

 

[AaronB.]

Yes, Grumpy, 8d nails for the roofdeck (we always re-secure the roof deck), ice barrier, felt, felt fassteners (usually plastic caps), shingles, hip and ridge, shingle nails, tins, caulk for flashings (corners and tops usually), new lead soil stack flashings (rubber boots dry out at the pipe in about ten years and leak), new ventilation, the occasional retro fit pipe boot for electric feed pipes, dump fees, did I miss anything? Generally 70-100 per square depending on the type of shingle. This is why per square pricing is usually so far off base.

 

[Grumpy]

You just listed everything I do, since I use subs I am at $125 before over head and profit. Steep is more, you know the routine.

 

[AaronB.]

Jproffer,

Where are you located? What brand of shingles are you using?

 

[Hammer01]

The formula I presented does not include steep 8/12 + charges or additional layer charges. Just a starting point. Again, in order for this to work, your overhead has to be in balance.

 

[AaronB.]

Please describe overhead in balance.

 

[Answer Man]

THe most important thing all you experts have missed is the fact that if the prime contractor does get a workmans comp certificate from the sub he will be required to pay for it at the end of the year. In virginia the roofers workers comp is 22% which is the insurace premium per $100.00 of payroll. Average price for labor & materials with no tear off or steep roof is 200 to 250 per sq. Profit should be 20 to 40%. Get your own dumpster its cheaper & most states require permits.
For marketing, stress the importance of insurance & don't warrante work which is not torn off.

 

[mdshunk]

THe most important thing all you experts have missed is the fact that if the prime contractor does get a workmans comp certificate from the sub he will be required to pay for it at the end of the year

I'm a little puzzled why someone who proports to be the "answer man" wouldn't know that this is not true in all states?