$1M Roofing Company Failing! (TURNAROUND)

[@jacoblarue5326]

I’m a Sales Manager for a roofing company and we do about $1.5 million per month in sales with 6 sales reps. 95% of that is roof replacements. It’s all about having a sales process and the right crews. I’m sure a lot of those repairs could be flipped to a roof replacement with a good sales process. The pricing structure could also be improved a lot to make roof replacements more profitable every time

[@jeranueldelgado3053]

Wow, dude 18 million you guys are killing it😮

[@randykoehler4556]

Are you commercial?

[@jacoblarue5326]

@@randykoehler4556no those numbers are strictly residential. My commercial team is a separate section of the business that I don’t deal with

[@danielleston2182]

How can I get in contact with you?

[@Gruerradetitaneslopez13]

Fake news

[@landmarkcreations1183]

I absolutely love this series! As a business owner and been in the fence trade close to 2 decades, I’ve learned from Mike and his videos. Thanks to the production team and Mike!

[@PremiumFuelOnly]

When are you going to invite him over?

[@landmarkcreations1183]

@@PremiumFuelOnly he’s actually 3 and half hours north of us. Would be fun to meet up with him.

[@kerryhettick9701]

1) they need to mark up the roof more. 2) they just need real subcontractors 3) The repairs are only more profitable because they are using left over materials. You do give some good advice though But they definitely need to continue to replace roofs.

[@nickcarroll5868]

This guy said it himself, he knows nothing about roofing, I make up my full roof replacements 66% 40% profit margin. I quote all repairs to make $1000. The roof tune ups i do for free. great referrals. I have insurance and realtor relationships, But this is 100% a B2C customer.

[@kodyeicholtz7774]

I sell 130k new roofs a month myself. Re roofs are the best way to go. These guys need to master insurance claims and they can do plenty.

[@BGmoneymaker]

Hey! In which state are working?

[@opossumgrylls3275]

Ugh storm chasers. Sucking on the insurance teet. Exactly why I got out of roofing. But yeah in a place that has hurricanes, they need to learn to deal with insurance work. I just personally never found it to be worth the extra stress.

[@nickcarroll5868]

dude did you see how bad the hail cooked that one roof in there shorts. @@opossumgrylls3275

[@Jbmc65]

I watched another video of Mikes about a roofing guy and the insurance companies think they can pay when ever they want. The deal should be 50% up front and balance on completion. Or 100% on day it’s finished.

[@natemanley8944]

@@opossumgrylls3275you probably weren’t very good at it then. Storm restoration is the most lucrative trade hands down.Ask around

[@davideggleston4793]

MY concern is he missed something critical. They said that repairs was the money becuase they had the left over materials from doing whole roofs. So if they stop doing whole roofs they will have to start buying the supplies for the repairs. That could seriously change the profit margin on a repair given all the overhead the business has.

[@soulsreaper7145]

thats the problem with having a guy that does lawn, trying to teach u about roofs

[@opossumgrylls3275]

Even if I had the materials, i would still charge the customer for the materials. Firstly storage costs money whether they realize it or not. Second, just because I have it when i bid the job doesn't mean i will have it when we the repair.

[@savageinstitute9569]

​@opossumgrylls3275 yeah you don't stock everything for repairs, you go get materials specifically for the job, not using old roof trash

[@upscaledyards]

It's a good thing I started following your channel a couple years ago as we grew to be profitable and focus on our core services. Thanks for all your videos!!!!!

[@JamesSzojka]

What an episode !! Love the advice about reoccurring revenue vs. One time jobs. Great job Mike and Top Dogs ! You guys will kill it !

[@csuiteunfiltered]

These guys have tons of potential and drive. If they are willing to learn and push themselves to keep growing, the sky is the limit! Great video!

[@richardstone5241]

The problem is SALES! I was in this business and sold $100,000 a month of new roofs myself. Repairs is NOT where the money is. And last, they need to raise their prices and have an excellent sales plan / training.

[@opossumgrylls3275]

Your mindset is wrong as a salesman. You look at revenue. Anyone can sell low pofit new roof. I'm not saying you did but a loss is still revenue. Profit keeps businesses alive, not revenue. Repairs is where the profit is.

[@ace9resistance]

Jeeze the editing and audio on your vids are top notch keep up the good work

[@eddybergman9782]

I was on my roof a week ago. As for TopDog roofing. They should focus on the repairs and tune-up services. Then once they are completely full up on those and have to hire to continue growth. Then add in a new roof/re-roof team to scale even faster.

[@opossumgrylls3275]

I wonder if on their payroll they are able to multiclassify their employees. For example, i used to do roofing, siding and gutters. Roofing had a comp rate of 42% but carpentry 25%. We would track on the time sheets and enter into quickbooks so at annual audit we could show what %. Also, my philosophy was everyone is a salesman and if my repair crew upsell a new roof or a roofer sold a roof, they would get a commission. Outside sales reps were like a 1.5% comp rate. All this got tracked for the WC audit.

[@reggiejenkins6458]

I am a general contractor and use 5 classifications varying from 8 to 25%. It takes me maybe one hour every two weeks to keep track and do the math, but it saves me $15-20k per year, because they would be billing me out at 25%.

[@RobG-z9f]

As a roofing contractor myself, Mike is spot on about the repairs being the most profitable. BUT what he missed was the fact that you can hire subcontractors just make sure they issue you a workers comp certificate for every job you use them on. You cant be held liable for the comp after.

[@savageinstitute9569]

Correction you can be held liable, you just aren't the first in line in regards to liability

[@nickcarroll5868]

My takeaways as a roofer. Use subs with insurance, you deserve to lose 50k if someone fell off the roof you would have lost everything. Full replacements are the name of the game. Make $500 for a repair and make a $5000 replacement They need to charge more, they should win every job charging what they do, they are at least 2k cheaper than everyone else. Content is always a great idea They look professinal they probably only need a solid sales presentation to get to 3m a year in business. hope these guys make it

[@vendingservices8900]

I also want to recommend these guys consider upselling roof washes with their repairs.

[@scott8193]

Their revenue halfed in the last 2 years because of the economic boom was 2 years ago in 2020. Now things are back to normal lol. Nice video but this was needed from day 1. They just didnt realize it because so much business caused from stimulus money circulating etc

[@opossumgrylls3275]

And storms.

[@MoneyMindMusic]

Metal roofing is a big business if your in the right area. Most companies deduct 30% from sub if no workmans comp. all your new jobs you could tell your customer about your tune up services to extend your roof life so you can keep old customers as customers for roof maintenances. You should always maintenance clean roof every season. If in tree areas alot need leaves removed off roof to stop back up water damning we get alot people who rott out walls cause more damage because they dont clean roof or gutters every season.

[@aleshavinson]

For workers comp Ins, if your subs don't have work comp on their workers, then you charge them 3%-30% or whatever your Ins Co will charge you on audit. Getting rid of work comp altogether is terrible advice. 1 injury and 1 lawsuit and you're out of business without Ins.

[@ericbstudios9807]

You're not understanding the roofing game in the 2020's. I'm sure you have experience as a general contractor but let me enlighten you about the current situation in the US. All the 20 year old American men are too weak to learn a trade. So now there's a bunch of roofing companies held hostage by illegal immigrants who are the only crews around that can actually complete the jobs. They do it for dirt cheap as well! They don't carry insurance...they don't even have ID half the time. One of them can take checks. That's the sad situation my friend. It's a disgrace.

[@opossumgrylls3275]

​@ericbstudios9807 it is been like that for 20 years. Nothing new. Still, you must have insurance.

[@ericbstudios9807]

@opossumgrylls3275 you live in the SW? Cuz in my area, 20 years ago, every local kid who got good at roofing bought a big truck and started subbing. The difference was that they could carry a policy and additionally insure the people they worked for. I'm not being racist. Im just pointing out that American youth has become weak since. Guys in their early 20's are uninterested in the trades, so illegals have filled the gap.

[@scott8193]

24:49 why'd you jump cut over the amount their massive labor law FINE was that almost broke their business?

[@ghost_nap8631]

Love this video man thanks for helping other business it’s good to see you helping a different industry

[@xxdeadlocksxx]

Hey Mike and his team! I notice he does many episodes recovering certain businesses. I’d love home to help me out and come evaluate my business and point out my weak points. Now I’m not sure if I have to apply in some sort of way or he does the company search himself so that’s why I decided to try and reach out. My name is Alex Garza, I am only 23 years old and have been in business since 2021. I have a pressure washing/exterior cleaning company, I do roughly 80k per year and have been stuck there for the past 2 years. Looking to elevate and have multiple projects and vehicles working at once! It would truly be a great opportunity and I can assure you it would make a great episode haha! Just kidding, but it would really be an amazing experience. Have a great day and I look forward to hearing from you! Alex, Advanced Pressure Washing

[@tractor629]

If they offered a inspection and repair service in my area “Whatcom county” I would absolutely have them come out…

[@opossumgrylls3275]

I am not sure how gutter cleaning is by them but they can set up maintenance agreements for gutter cleaning and roof tune ups. We used to get 3x the regular rate of what people charged because we would include a roof and gutter inspections and include free caulking and photos. This was amazing filler work for days where maybe it rained a half-day and we could send a few guys out for maintenance agreements. And most of our maintenance agreements stuck around for years.

[@hydrodude2948]

I’m still blown away how little of views this channel gets.

[@signal7]

Probably because it's just acting and made up companies and problems??? 🤷

[@lawnsandbeyond]

Great content. Lots of takeaways for my business!

[@Tynamite843]

Mike , thank you again for always pushing me when I need it most. Your videos always find a way to re lit my fire for success! Thank you!!!!

[@sterlingking1243]

They can add on gutter cleaning and/or gutter repair and they can definitely increase their reach. Great job and great content’💪🏾💪🏾💪🏾

[@bloomingtonmowandsnow]

As soon as they started talking about basic repairs door hangers I immediately thought the service had a great potential differentiator/specialty in a very busy market like they described

[@moldsquadrestorationcontra6252]

$199 FOR ROOF TUNEUP???? IN MICHIGAN, CHICAGO, INDIANA, WISCONSIN - YOUR LOOKING AT LEAST $499 FOR ROOF TUNEUP

[@opossumgrylls3275]

The cost of living is like double in Chicago what it is in Louisiana. But yeah they should increase it slightly.

[@savageinstitute9569]

Yeah $199 is a sign that a company may not be in business for long or they are brand new

[@AcidDaBomb]

Used to sell advertising, knew a roof repair company that completely rejected all my services and said they have 6-7 inspectors who send them business.

[@mdwait]

Will there be "follow-up" videos on this business that you visited?? New to the channel, just trying to follow the stories

[@MikeAndes]

Yes, we have done a couple (see Urban Roots Lawn Care) and will continue down the road.

[@stkrrauch1]

the government is the biggest challenge to running a business

[@abfjunkremovalandlawncare6256]

ABf Junk removal and lawn care Toledo Ohio. Amazing video

[@jtmcfarland3512]

When I've hired contractors, they have a clause in their legal agreement that the subs are liable for all labor and associated costs. With good contracts and legal documentation, these guys should have never been in the position of finding themselves surprised with a $50k bill.

[@LARaised]

Nice watching from Baton Rouge

[@brandonward2187]

It really feels like the 1 brother does all the work and the other 3 are just clinging to him lol

[@jlach100]

Great episode. Can you explain further how he could be fined for a subcontractor not paying their employees appropriately in regard to the insurance. If he is subcontracting the work out to a different company wouldn’t that just make him essentially a lead generator for that company and not liable? Maybe in those cases he should implement some type of protection like a contract stating his exemption from any liabilities in addition to the up charge he may tack on that you mention near the end of the video.

[@Clashroyal272]

Yeah the contract should work but even better they should ask for they insurance for workers comp and liability and the beginning that’s how is normally done with subs that way you are not involved with the insurance or any fine like the one they faced which was because they weren’t careful or didn’t know at the beginning basically they should ensure that the subs are insured

[@Themenwithtools]

Every successful roofing contractor I know uses a roof tune-up as a means to get in the door to upsell a re-roof. The problem here is that they are not charging enough at $400 per sq. Unfortunately, Eduardo and these guys will most likely be out of business in a few short years unless they raise their prices and learn to sell. Good luck!!

[@Stubzgaming]

Great episode 😀👍

[@goodguysgeneralcontractors4200]

These guys need to get more revenue. They're selling jobs at 28.3% gross margin which is decent margin. 28.3x2Mill is 566k less 100k for rent and insurance is 110k each partner. They don't have margin issue they have a sales issue. You should be no less than 500k/head in roofing and ideally need to be over 1M/head.

[@Mr.Torres-Mr.Towers]

My parents house got quoted for 4K patch repair. I did the repair myself spent $300 bucks on materials.

[@tylersmith9868]

Yep should be leaking at any time now

[@OU81TWO]

​@@tylersmith9868 That's an asinine assumption. It's the guy's parents place. He's got skin in the game and isn't going to screw them over. He probably did a better job than the "professionals". It's roofing for fk's sake not brain surgery.

[@opossumgrylls3275]

Workers arent free. Trucks arent free. Taxes arent free. Ladders and equipment arent free. Insurance isnt free. These things cost money. Costs get passed to the customer.

[@savageinstitute9569]

​@@OU81TWO😂 I would say 99% of the homeowner and handyman repairs I see are done incorrectly and around half are making the problem worse. You're right it is not brain surgery but people are not very smart

[@johnantonine4505]

Brilliant video love it

[@marshallhelmsMW3]

Are y’all planning on doing follow-up videos in six months?

[@RoofingFormulaLLC-xo4wg]

Hes not hiring subcontractor for $80sq. He has w-2 employees thats for sure. Thats the reason he paid all that insurence. Subcontractors got have license, insurence and bond. They usually charge around $120sq + .

[@MGMG007]

Roof repairs are overlooked by most roofing contractors because they want the jobs with the bigger numbers that come with full replacements but the ones that focus on repairs take over their area because most big companies turn down the repairs. 2 guys can easily do 2-5k in roof repairs a day and most repairs will turn to full roof jobs.

[@opossumgrylls3275]

And, you can do two or three repairs on the same roof before it can't be repaired anymore and it must be replaced. This is how you maximize profit overall, and limit competition. If they've been happy with your repairs, it is unlikely they get 4 bids on the new roof.

[@savageinstitute9569]

Zero companies in the 7 metro areas around me have taken over or gotten big. 😂

[@mrmurdx8956]

All those roofs are massively big and long so it will take more material to replace it which of course means it will cost more time more hour thus more money. But i see a lot of brand new trucks an storage units is that were the profit is going to???

[@opossumgrylls3275]

I wish you were around when I had my roofing company.

[@drew22]

How about a new business that hasn’t been open a year yet? Still trying to get the word out. The takeaway I got from this video was I’m going to start doing the shorts because it applies to any trade. Here is the problem and why it’s bad, here is the solution, here is the final product and hopefully a shot of the happy customer if they are comfortable being in a video

[@jonsanchez9938]

Loved this episode!

[@estelamagbual6683]

Love it!!!

[@csrsonstanley5818]

Discontinued shingles is something to look for

[@jleighgod8149]

You also want to get the lumber companies to refer you and get scaffolding and a small dump truck!

[@opossumgrylls3275]

You are absolutely wrong on the wc insurance. They will still pay wc if their 1099 subs dont have wc! And if their 1099 sub falls off rhe roof they will lose their entire business. They need to keep their WC and convince their subs to get their own WC.

[@paulpoco22]

Canada, Strata Townhouses pay Wolf & Wolf a yearly contract to inspect the roofs and fix anything wrong.

[@miklomorales4768]

Guy provide ls value to real business while filming content ✅🌎🌎🌎

[@CarmeloAlbino]

Hey I have a quick question I have a food stand what is the quickest way for me to get customers to my

[@savageinstitute9569]

Park in front of a dispensary homie

[@slayz1515]

I haven’t been on my roof in almost 2 years

[@RussellD11]

subbing out work is dangerous imo.. as your responsible for others work, and that often bites you in the butt..

[@Thebluesky0311]

If you do it right, you take the time, vet and figure out the good sub contractors and as time goes on you have good subs you can use.....ideally.

[@michaelwalker4905]

90% of roofing is done this way.

[@eag8999]

You HAVE to have legitimate specs and a project manager on site to enforce them. Also a good relationship with the crew head

[@husnain_ahmad_roof_rise]

Damn Bro Sheer Value!!

[@markherring3513]

Or only contract new roofs out to whoever HAS insurance and is handling their taxes properly.

[@VylDZN]

Mike you're a GOAT!

[@Budgetfishing530]

Sounds like a huge conflict of interest issue!

[@Bambamlynch704]

Love these episodes

[@MR.TOYBOX]

Any Metal Roof Supplier that does not unload the material needs to be out of business. A couple of them around here do the same Crap. There just lazy and greedy.

[@biggritz2003]

Mike if you come back to the 225 and I see you ima come give you a big ole smooch

[@jaybemis3946]

I’m watching this late of course. However, they got hit with that massive insurance audit invoice because they were clearly hiring unlicensed sub contractors and claiming them as employees. It’s that simple. This dude casually brushed over this major fact. Augusta guy, I like you, but you need to pierce these facts better to help these businesses. There was a couple times where the business owner tried to tip toe around this major fact. UNLICENSED SUB CONTRACTORS!!! This is or was their business model. Hit me back Augusta. I like your content.

[@johnowolabi1943]

Can you come to Canada for a turnaround?

[@nicholasmendoza6159]

That has to be the roughest way to make a profitable estimate.

[@williamking3523]

That job should sell for $15,850.

[@ryandeyoung6135]

What is the rule about that suncontractors cant wear your uniforms. Heard you mention it

[@Noel-Perez]

They are 1099 not W2. For example if you 1099 someone then they aren’t supposed to use your business uniform because they themselves are there own business

[@grumpus1403]

Most of us who run a business learn from our mistakes. Failing to understand payroll withholding nailed me years ago. My accountant kept giving me this government form every 3 months and I would just file it away. Found out later after getting a bill from the IRS ($20 grand) that the form was my 1040 and was supposed to have been paid every quarter. After I got on a repayment plan, I started doing my own payroll and now keep up with all the fun stuff. Sorry to get long winded here, but I would love to follow a company on KZbin that shows the actual behind the scenes of what it takes to keep up with the red tape of operating a small business. Good episode Mike.

[@ericbstudios9807]

Government doesn't want you dodging costs by using subcontractors who are expected to act like employees

[@jrh928]

if i was them i would offer a $140 a year ongoing yearly checkup subscription after the 1st $199 check.

[@tanthony298]

Whatever happened to Aaron?

[@EdisnFox]

3:31 Property (Manger) Manager

[@atnruban8899]

Love him

[@EricV259]

Workers comp is very unforgiving

[@BrainJuice123]

Anyone in the roofing industry care to dig deeper into the insurance workman’s comp thing? Not 100% sure I understand this

[@opossumgrylls3275]

You pay a % of payroll whether they be w2 or 1099. It doesn't matter if they are a sub or employee. The sub should carry their own insurance! If the sub doesn't have insurance and falls off the roof, your insurance will pay. It is also illegal where I am to operate without WC. It was NOT a fine or penalty. WC rates are based on projections and then you are audited annually to ensure the projections are accurate. If you exceeded projections, you owe. But, if you fall short on projections you get a refund. It really sounds like their agent put them at a low projection to get them a low monthly premium. In other words, screwed them.

[@robrob3402]

Hey guys if you want to oversimplify things all four of you go door to door once the leaves are done in the fall early too late October to November depending on where you are and do 10 gutter cleanings each a day $2,000 profit of day 30 days for the month and make $60,000 a year each that's to oversimplify things

[@handyscapersllc]

9:50 split up in different neighborhoods

[@BoZo-lh4oo]

I sold a 12 square, double layer and throw one chimney fot 9,400 n my cuz telling me cheap n this dude do 30 sq for 12k kind of cheap

[@celularphone]

Why hire these jokers and not just hire their sub contractors if they are actually sub contractors.

[@stevehughes7224]

Would you come to the UK😊

[@MikeAndes]

It’s worth applying for 😀

[@FinancialMaintenance]

I do roof washes so I spend way too much of my time on them.

[@vendingservices8900]

I’m in exterior cleaning too. Having a low lifetime customer value, due to mainly selling one-time services is killing my business from scaling past 250k.

[@FinancialMaintenance]

@vendingservices8900 my best reoccurring comes from offering reoccurring services like gutter blow outs every fall and spring. How about reoccurring commercial work?

[@vendingservices8900]

@@FinancialMaintenance Commercial work is starting to come in gradually. I think I’m doing 20k/year in commercial work, have added all that in the past 5 months. That’s all window cleaning. I don’t do anything else commercially. Gutter cleaning christmas lights, window cleaning should all be marketed as annually because they need done often. I just have yet to go that way. I honestly don’t give a damn about the pressure washing services being marketed. Always nice upsells, but less reoccurring or less often, and that’s what I’m leaning towards learning to focus on.

[@equirino34]

😢

[@sshaw1015]

His margins are too low…

[@oberweiss7190]

Roof tuneup lol… Clownery