In this blog, we will be exploring the different factors that affect the profitability of a roofing business, as well as strategies for improving profit margins. We will discuss cost factors such as labor costs and materials, and also look at marketing strategies to increase revenue.Also, we will explore the various governmental regulations and taxes that may affect profitability. Through this blog, we hope to provide helpful information on increasing profit margins in a roofing business and enabling business owners to achieve greater success.

The profit margin in a roofing business can vary significantly depending upon the size, scope and specialization of the business. Generally, roofing businesses have a profit margin in the range of 10-20%, but may be higher or lower for certain types of projects.

How much is the income?

Before we go deep into the profit-making side, knowing exactly how much the business can pay you is important. Sticking on to the reports and researches, it is found that the lowest income of a roofing business is $35000 per year and the highest is $200000.

Here, when you see the lowest income value, it does not really refrain you from entering into the business. If not as a main source of income, the business can be taken for a side income if you find the profits it could give you are less.

What are the factors that makes a difference in the profits made?

A blunt knowledge on the profits that can be generated in the roofing business is just not enough to assess if the business is right for you. You will have to gain a thorough knowledge on the factors shaping the profits so that you can spot the areas in need of improvement.

Also Read:- Profitable Roofing Business Plan Sample

Source of contract

The sources from where you receive contracts matters more when it comes to profits. The sources can be of two types,

  • Residential contracts
  • Commercial contracts

Residential contracts

Residential contracts occur more often, but less valued in money. They do have a great scope for roofing, but when compared to commercial contracts the income is quite less. As residential areas will have either small-sized buildings or medium-sized buildings, the coverage of the same with roof is also less. Labour charges will be more here since they are paid for each contract. This means, they will be paid frequently. As a result, less profits are made by covering lesser area with roof.

Commercial contracts

Commercial contracts deal with information contradicting the information mentioned in residential contracts. The number of contracts is less and rarely occurring. But, the value carried by one contract covers the initial investment of the business. Commercial buildings will have a huger building demanding coverage of high measurements. Automatically, the income generated will also be high.

Roofers salary in the market

When you have a roofing company, make sure you set a standard way of all the activities that has to be performed in your business. In the same sense, the salary which you will be paying your roofers should also be planned and standardised. Before you appoint a roofer, study the pay scale for them in the market.

After the study, fix the charges for your labour considering certain conditions and labour policies. Ultimately, there is a role for the roofer’s salary in adjusting the profit margin. The more you pay, the less you have in your hand.

Cost of the materials procured

Coming to the direct expenses, there will be a huge difference in the profits you make if the direct expenses are wisely planned. This is the place where nearly 60% of the investment is used. It is indeed an important thing to be taken care of. Of all the direct expenses, the cost of materials that are brought into the business for roofing purpose can be altered to increase the profits.

It is a known fact that as quantity increases, the cost of the product goes down. Procuring the necessary raw materials in a considerable quantity will give you opportunities to enjoy discounts. But, this does not rule out the fact of maintain the stock of raw materials at an optimum level.


Depending on where you are looking to start a roofing business, there are several locational factors that will play into how much the company will likely earn. First and most important is climate and weather. While someone roofing in New England would need to be privy to repairing damage caused by snow and cold temperatures, a specialist looking to make a living mastering roofing in Owens Cross Roads would need to be familiar with common Alabama roofing issues, such as handling tornado damage and much higher average temperatures.

These factors not only change how much these two roofers would each make based on the types of work they would mostly handle but also what time of year is their busy season. This changes when they can can earn the most as well as the types of jobs they can expect.

Competitor’s pricing strategy

In a business, survival is also as important as the profits that the business could give. While planning to hit the highest profit, do not forget that the business has to survive. For a business to survive, there is a necessity to involve customer’s as a primary focus. This certainly means the pricing strategies that can be adopted to satisfy the customers. Your competitor will also aim at the same objective to defeat you.

In such a case, you will have to adopt a pricing strategy which will help you gain a number of loyal customers. Following a pricing strategy favourable to the customers might put you with less profits, but once you acquire a considerable number of customers, you can make a rise in the margins. The reason for increasing profits at a later time is that, loyal customers will always stick to one company despites of the price increase.


Please enter your comment!
Please enter your name here