Updated: Apr 16, 2020
One of the biggest challenges for roofing companies right now is getting their sales reps to stick around. Usually sales reps have a good compensation, so why are they leaving? Let's be honest—you're asking too much of them. Current sales reps go door knocking. Basically cold-calling, but with the added stress of face-to-face rejection. They're expected to walk up to a stranger's home—who has given no indication they want a roof repair or replacement—and convince them that they need to spend thousands of dollars, while increasing their insurance premium in the process. If you had a stranger try to convince you that you should spend thousands of dollars on something you don't want, what would you do? You'd tell them buzz-off.
And that's what's happening, and is exactly why they leave. Not only are we going to talk about how to solve this problem, but how this will save your roofing company time and money.
Let's revisit the problem.
Sally get's a new roof.
This neighborhood could have experienced a storm recently, and the roof in question could have been installed improperly, or could just be plain old and due for a repair/replacement anyway.
Sally was experiencing a leak, had an immediate need for a new roof, and so she got online, found, and called the best local roofer in her area.
She had an immediate problem, and was eager to fix it.
Normal sales process, right? Does this mean that every roof in that neighborhood needs fixed?
Not even close.
Unless there was a category 5 hurricane, the other roofs are more than likely fine. But your sales reps have the daunting task of walking the entire neighborhood in extreme heat, try to convince the neighbors "just because Sally needed a new roof, you do too," and sell them on something that is going to cost them a lot of money. And you're surprised your reps don't stick around? I would leave too.
The chances of success are slim, and in the reps eyes it's just not worth their time. You have to remember they're giving you their most valuable resource—time. People don't take this lightly, and expect to get something in return. They can only go on like this for so long until they're tired of it and search for something else. Not only that, but there is no chance for a pay increase even after years of performance.
They have to eat what they kill. This is leading to a high turnover. You then have to spend more of your limited resources hiring and training new reps.....and the hamster wheel continues.
The problem isn't with the reps. It's with the process. So what can you do?
At Churchill Consultations, we use an exclusive technology that allows us to identify people who are actively looking for a roof. These are people who know they have a problem, and are seeking a solution. They are your quickest path to profits, and focusing on these people is the best use of your limited resources. We are using our system to generate 5-15 jobs every single month. There is nothing like this on the market, and our client's are crushing it. Last month we generated 10 new inspections for our client Trinity Roofing & Restoration. He's expecting to close 6-7 of these inspections because we've already formed a relationship through our marketing activities. But we can talk about that later...
For now let's look at the numbers. It currently costs 10-15k to train a sales rep. Say you keep 25% of your reps, that's 60k just to find a good rep. Let's say your average job size is 15k, and you have a 40% profit margin. At 6k profit, the sales rep. would have to sell 10 roofs just for you to break even. This is not a good strategy.
Cost to Keep Rep = 60k
Average Job Size = 15k
Profit Margin = 6k
Jobs to Break Even: 10
You need to focus your resources (money) into marketing geared toward people who are actively looking to pursue a roof. If you were to train just two reps and invest the other 30k into our system, that would take your cost-to-train to only 30k and feed them people who ACTUALLY want a new roof. This will allow them to make sales, increase their skills with the easy ones, and boost their morale.
At a cost of 4k/mo. for 7 paying customers, this would result in 52.5 jobs with that 30k you now have available.
Results you could get with that 30k.
Average Job Size = 15k
Number of Jobs = 52.5
Total Revenue = $787,500
Profit Margin = 40%
Profit = $315,000
Here's a breakdown on an economic scale. I am not an economist, but it's something like this.
Your Current Sales Rep. With Turnover
Hiring 2 Sales Reps & Implementing Our System
Difference Between the Two
Your sales reps are leaving because you're throwing them to the wolves. You're having them try to convince people, instead of actually selling.
There's a big difference. So, if you utilize our system, you would profit an additional 315k from the money reinvested back into your business, and keep your sales reps. long term. - Numbers don't lie. Now let me ask you a question: Do you know who is actively looking to buy a roof in your area?
- We do. Do you know on a scale of 1-10 how ready to buy they are? - We do. Our system is proven. It's why our clients continue service with us, month after month. Not only do we know who is actually looking to buy, we can tell you the names, emails, addresses, and phone numbers of people who visit your website....even if they don't fill out a form. You can then use this information for other marketing activities.
In the eyes of your customer, roofing companies all look the same. It doesn't matter if you use a different material, or a different process. The only thing your customers truly care about is getting their roof fixed, quality service, and at a good price. So what you have to do as a business is get there first. Which is exactly what we enable you to do. We know who wants to buy, before your competition even knows these people exist. And by doing this, we are crushing markets right now. We are solving problems first, and making sales. Not to mention building relationships which lead to referrals.
Ladies and gentleman, if you are a serious business owner and you want to dominate your competition, this is the way to do it.
If you want to increase the profitability of your business, add an additional 5-15 jobs every single month, and grow your business—reach out. We would love to work with you! However we only work with limited contractors in each city/state to preserve the unfair advantage we provide our clients. Contact us today!