Updated: Apr 15, 2020
Roofing contractors are always getting beat up over price. Homeowners want contractors to waive deductibles, try to haggle over price, and always want more value from roofing companies—at the contractor's expense.
Roofing is a very tough industry; there is steep competition and not a lot of differentiation. This is why contractors undercut each other to win business.
This is a huge problem for roofing contractors because it eats into their bottom line; the profits they sacrifice should be being used for expansion, their employees, new equipment, etc...
So how can a roofing contractor eliminate this problem, make their business more profitable, and command a premium price for their service? First—you need to understand why roofing companies REALLY have this problem to begin with.
If you can identify the true source of a problem, you'll actually eliminate the problem instead of just masking it.
How to Market Your Roofing Business According to Classification
A roofing contractor needs to separate themselves with competitive differentiation.
In a market where a lot of businesses as selling the same products and services, in the eyes of your prospect all roofing contractors look the same. When a prospect interacts with your roofing business, the first thing they ask themselves is "Why should I buy from you?"
Understanding how your roofing business is classified will help you understand how to position yourself in the market and create some separation from the other 30 companies in your backyard. So...
When it comes to how a company is classified—any roofing business falls into 1 of 9 categories and should market themselves as such:
These roofing contractors create emotional attachment through strong branding, community involvement, donations to charity, etc..
Premium players offer high-end, prestigious products and services by design. In order for a roofing company to market themselves as a premium player, they would need to have an exclusive certification or product that other roofing contractors cannot provide.
A "Value Roofing Contractor" would rely on efficiencies and sustainable, scalable operations to provide lower-priced products and services. Larger companies could market themselves as a value player through bulk-purchasing (powerful buyer)
These companies rely on the innovation of other companies to quickly introduce products / services that compete.
These roofing contractors are viewed by the market as trustworthy and can charge a premium due to their reputation. Established, well-known roofing companies could market their business as a reputation player.
Regulation navigators find loopholes in regulatory boundaries and are able to offer customers dependable, well-designed products and services.
These companies consistently introduce new and creative products and services, which gives them meaningful differentiation in the marketplace.
A roofing contractor who wants to market themselves as a solutions provider would offer bundled products and services to supply an unmet need. (demand) This would be a company that offers interior renovations and flood mitigation services in heavy storm areas.
Platform providers would be like HomeAdvisor, Angies List, and the like. Not many roofing companies would fall into this category, but it is possible.
Now ask yourself, based on the products and services your roofing company provides, how you're positioned in the market, and how you're currently marketing your roofing business, which of these categories do you think you're in?
Too many roofing contractors are playing the Value-Provider card, and because of this many companies are in a race to the bottom. In order to change this and increase their prices, consider marketing your business as an Experience Provider, Reputation Player, Regulations Navigator, or Solutions Provider.
This will give you a different angle for your pitch, create meaningful differentiation, and allow you increase your prices.
Another way roofing contractors can increase their profits is by filling up their pipeline with prospects.
When a company has limited prospects, they're going to kiss up to the demands of those limited prospects because they're afraid the homeowner will walk or go with another company.
The best way to eliminate this problem is by having unlimited prospects actively pursuing a roof repair or replacement. When you have unlimited prospects, you eliminate the powerful-buyer problem; if that particular homeowner walks, you have 50 other homeowners who want what you have to offer. So how do you fill your pipeline with prospects actively pursuing exactly what you offer? At Churchill Consultations, we use pattern recognition Machine Learning to identify both commercial and residential property owners who are actively pursuing a roofing project.
Our technology allows us to know who is in the market, in real time, and to market and advertise to these people exclusively.
- If you have 100 people, and 3 of them are telling you "I want to buy a new roof," as a professional, who do you think you should be talking to? Those 3 people, right?
..and that's exactly what we do for our clients. We fill their pipelines with sales-ready leads, create more profitable marketing campaigns, and create better leverage for their marketing budget.
So if a roofing company wants to stop getting beat up over price, stop waiving deductibles, and make their business more profitable, they need to create some separation. By understanding what business-classification they fall into, they can give a prospect a reason to buy from them vs. their competitor, and command a premium price.
Roofing contractors also need a steady flow of qualified prospects actively pursuing exactly what they sell; having unlimited prospects puts the power back in the roofing contractors hands, and the roofing contractor no longer needs to kiss up to a property owner who wants a cheaper price.
By consulting with a professional marketing agency, creating a better marketing strategy, and utilizing our exclusive technology to generate unlimited prospects for your business, you'll create a more profitable roofing business.
Get a free consultation by clicking here!