469: Why Roofers Stay Busy but Still Go Broke: Markup & Profit with Michael Stone

Always perform accurate job costing for every project to understand the true expenses before pricing.

Calculate your total overhead expenses and incorporate them into your pricing strategy, ensuring they are covered by your markup.

Use a consistent markup formula (e.g., Job Costs x Markup = Sales Price) rather than guessing or charging by arbitrary industry standards.

Focus on marketing to customers who value quality and reliability, rather than those solely seeking the lowest price, to avoid commoditization.

Implement clear, short payment schedules in contracts (down payment, progress payments, final payment within 3 days) to maintain healthy cash flow and avoid lengthy receivables.

Prioritize profitability over simply increasing revenue; being busy without profit leads to financial struggle and eventual business failure.

Be cautious of financial advice that suggests reducing declared profit for tax purposes if you plan to sell your business, as consistent, declared profitability is crucial for valuation.