Does any think these constant increases in shingle prices needs to be taken care of? It has already gone up what, nearly 40%ish from the beginning of this year and its going to go up more on the 15th of this month and first of august. Is anyone else having this problem or whats going on here?
Actual material costs wind up only being between 25% to 28% of the entire job cost, so a 10% material price increase is really only about a 2.5% overall in the whole scheme of things.
So, 40% for the year winds up costing 10% more on the whole quote, as compared to last year. That doesn’t really affect things as dramatically, when you look at it that way.
Currently @ $64+ tx for 30 yr dimensionals, from ABC in LA. Yesterday got notification of increase for August 1st GAF of 8-10%, Owens Corning…18-20%!!
Lee time on Mod Bit from Bradco N/Orleans, 6-8 wks.
All you homeowners out there saving for a new roof find a roofer and negotiate terms now, predictions of $100 a square by the end of the yr, and still rising.
I know that the homeowner paying for the shingles doesnt like paying the extra 13 dollars a square I have to spend just to get them. On a 30 square house thats an extra 390 dollars they dont want to spend. I hear what youre saying Ed though, from our end it isnt a noticable difference it but its sort of like the whole gas situation, no one really cared when it went to two, then to three because its not much more than 2.80. Now I just filled up for 4.25. I think we should start being concerned now.
I may be experimenting with “Allowances”, based on the current retail prices I pay, but be subject to the volatility in the marketplace, just to cover my butt and remain competitive, without committing business suicide. It is sort of like an “Escalation Clause”, but allows the price to fluctuate depending upon which product is chosen.
I have found it easier to be able to charge more due to the erratic increases…also to get people to say yes now, rather than to wait for a more convenient time…ALSO IT IS NOT MY FAULT THAT THE PRICES ARE GOING UP!
that 40% increase means an extra $200,000 cost to me!!! So yes its dramatic and has caused me to ask for 1/2 up front (used to ask for $50) and your shingles are getting delivered tommorrow and we will be here in 6 weeks.
I totally agree it will hit $100 by Jan. I recently stocked a year supply of Titanium, ridge vent, coil nails, step flashing, hook blades and other misc. stuff just to try to hold my price down somewhat.
Its not just shingles.
Coil nails will hit 50.00 per box by the end of the year, #15 and #30 felt will break the 30.00 per roll mark. Metals and everything will go similarly…
Most people that need a roof probably wont be able to afford one.
That being said, I am stockpiling shingles.
I just ordered 3 trucks of Timberline/Prestique 30’s and picked the shingles up for 50.00 per sq.
My primary concerns with pricing changes are in 3 areas:
It’s tradespeople like us who are usually the last to budge in our pricing. Vegetables cost more @ the store & so do a lot of other things everyone needs to buy on a daily basis… but plumbers, carpenters, lawn maintenance co’s… we all try to hold the line as long as we can due to customers shopping around & we want the job. It ends up hurting our bottom line, but over a long period of time until we finally kick the cost up.
I hate maintaining inventory. I’m a one man band, so to buy 500 squares & then sit on it hoping to sell this out isn’t a reasonable idea. Plus, I have to pay my guys for a hand load whereas Roofing Supply Group has conveyor trucks & they do all this for the 55.00 delivery fee (was 45.00 but they went up 3 weeks ago). Now, I can understand holding on for felt, nails, lead jacks, etc. however keeping up with all of that is a pain in the a$$ & one of the reasons I like roofing vs. any other kind of ‘self employed’ business where you’re always chasing employees to not eat too many fries or waste product.
I don’t have the space to hold any inventory even if I was going to try & buy a lot to try & avoid price increases.
My other concern is pricing changes related to insurance adjustments. Their pricing is only updated once a quarter (every 3 months) & in the past 5 weeks, shingle prices have changed 4x. I’m asking for parts supplementals on every insurance job I’ve taken & this has varied from ~ 350.00 to 750.00 on a larger house.
were all learning how important every dollar is.
actually a good thing for me.