Price per Square

That was very good Paul. You're on a roll lately.>>>

No, not the media. I believe it is the current economic condtions across the nation (unemployment rates, pay cuts, rising cost of utilities) that have people pinching that penny much more than before.

I find myself going to the grocery store and comparing prices more than I ever did. I have been hit hard by the rising costs. My husband has been out of work since last August due to bypass surgery and although he has been released to go back to work, he is having an incredibly hard time getting a foot in any door.

Many of our regular customers have been asking for a "loyalty" discount. Quite a few have shared with us the estimates they have gotten from other places asking if we could match it because they know our reputation for quality work but want the cheaper price. Unfortunately, some of these other places cannot be paying insurance and taxes and still breaking even. We have people calling for estimates claiming that their roof was damaged by a storm when it is clear that it is falling apart due to age. They are looking for anything that will get some help from their insurance. Yes, we have been asked to expand on the truth but refuse to do it. I think that people are afraid to spend unless it is an absolute emergency and they have no choice.

We are fortunate that we have work trickling in and I do mean it is a slow trickle. Just enough to keep our 5 best guys working for most of the week. Last year at this time, we had a backlog through October. Right now, I have enough work to keep 5 guys busy for 7 or 8 days. I am a perpetual optimist, I know that something will come in by the end of the week to keep them going through the next week.>>>

Paul, I enjoyed the slant of the last post. My thinking has evolved over the last four decades into something similar. What I would like to add is that it seems to me the key to long-term success is matching our story to their story. Basically, every roof project is a partnership. We want to make what we are entitled to and they want to receive what they are entitled to. We have to find out what they are willing to spend and what they want to buy. Then we have to decide if we can afford to provide it. They have to decide who they want on their property and what they want and need and how much risk they are willing to take. Then they have to decide if they can afford us. If we get a match, we're in business. In the best of worlds, we end up (customers and contractors) having the good fortune of being able to brag about each other.>>>

So aha Terry are you saying it's the media ?????? :laugh: :laugh: ;) B)>>>

WOW is Grey Goose vodka really the best? Someone left a bottle at my house and I liked the bottle so I kept it.

Long morning. No, that is not all I got out of your post Pgriz. Now if we can only convince the customers to pay more because we are the best and have been around for over a century. It seems that was the case just a few short years ago but now with the economy staggering as it is, many folks are opting for repairs trying to make that roof stretch just a few more years hoping that things will get better.>>>

"Price" is an entirely subjective property. Unless you are an oenophile, you will buy wine according to 1) price, 2) the pretty label, 3) the shape of the bottle. Unless you know clothing, you will assume that "more expensive" equals "better". Unless you know your gems, the $6,500 diamond ring is more "valuable" than the $650 diamond ring. And so on. Don't deny it. If your daughter brought home a guy that makes "$650,000 a year", you'd probably be more impressed than if the guy was making "$16,000" per year, everything else being equal.

When we don't know the underlying value, we usually rely on price to guide us. So a bottle of vodka priced at $650 is "obviously" better than the one priced at "$16". Yet, if you had a blind test, chances are 50-50 that you'd pick the cheaper version as the best. So why do people spend $650 instead of $16? Ah, now we get into the mental games that people play. Because they want to impress their friends (I got so much money, I can drop $650 and not blink), or they think that they are getting the best because the bartender told them that, or they read somewhere that Grey Goose is absolutely the best vodka money can buy, etc., etc., etc.

The point is that without personal knowledge, people substitute a good story for experience. Hence, you can be persuaded that the $7,200 suit is worth it because it is impeccably cut by trained gnomes from Italy, made of material that will feel like a lover's touch, and make you look 25 years younger and 50 pounds lighter. All this so that you can put some fabric between your bits and the curious world.

Scammers have figured out a long time ago that people buy the story, not the product. Sure, we're supposed to be fully informed about our purchasing decisions, but let's face it, there aren't enough hours in anyone's life to be fully informed about all the transactions we make. So we rely on proxies to help us decide whether something is worth it. These proxies can be advertising copy, referrals from friends, the salesman/woman's spiel, or the glitter wrap. Once you understand that you're selling a story, you're starting on the way to effectively market.

Now, is it "honest"? Ask youself that question when you buy your wife a bottle of perfume priced at $2,000 per ounce. All that product is, is an alcohol extract of various floral essences and light oils. The raw material cost is probably under $2. The packaging, distribution and marketing probably add another $20-50. The rest... is the margin.

So if you want to sell at a higher price, start thinking about who your customer actually is, and what they really want. They are not buying shingles. They are not even buying a roof. They are buying (depending on the customer) the look, or the security, or the value, or... And it is up to the company doing the selling to decide which element to emphasize, and how to wrap up the whole experience to ensure that the "customer experience" delivers.>>>

I would disagree with Roofrite on this one. ---In my area (Seattle) there are several large companies that advertise on the radio and have multiple crews doing residential. They each have multiple top notch salesmen who SELL at double the price that the rest of us charge. I have seen the written bids. They roll out all the bells and whistles most of which are useless. They create quality with these "extras" and demean the rest of us as bargain basement low-lifes. ---One of my employees worked for the largest for 8 months and got a partial view from the inside. They advertised on the radio with words like "craftsmanship..." Yet my friend watched them hire and fire crews almost on a weekly basis. They were A+ in advertising and salesmanship. They were mediocre on installation. ---The point I am making is that these companies doubled "the going rate" in our area and therefore such a definition could be quite varied. ---I talk to several friends who own roofing companies and we discuss among ourselves our own "going rates." We are fairly close on most things. But we are way low compared to "the big boys." They sell high prices simply with salesmanship & gimics. I applaud them for it and enjoy bidding against them. ---Also "the going rate" is coming down around here. I have been underbid by 20-30% recently on about 4 jobs and that has almost never happened to me. Actually I wonder if they are making anything at all or are just keeping their crews busy and making minimum profit. I have very low overhead and am hard to underbid so I can hardly believe some of these bids. Lanny>>>

luckly business not bad here>>>

We do mostly residential shingles and some EPDM. Business is steady.>>>

how about the chicago area>>>

thanks try to do all typs but the market is mostly asphalt shingles>>>

Welcome in Bobby. I'm in the Chicago area. What type of roofing do you do? Any employees?>>>

my name is bobby lic Fl roofing contractor>>>

quality roof Said: new to the forum whats going on

Lots of new guys lately. Why don't cha start a thread and introduce yourself?>>>

new to the forum whats going on>>>