![]() Every year.Īs you can see from the price above, the Crude oil price is now at $62.29 per barrel (as of February 19, 2018) which is $50 (FIFTY) lower than the high prices we had in 2011-2014. Rising cost of OIL, rising cost of LABOR, and this and that, and so on. But here is another “story” that we keep hearing from the manufacturers – rising costs. I get it – after all, a corporation’s main purpose is to make and increase profits. A company does not become that big by not making money. And at that time, ABC had $2 billion in sales every year. ![]() This is enough to cover costs and make a VERY good profit:ĪBC Supply’s former founder and CEO Ken Hendricks, before his death in 2007 (he died from a fall off a ladder – how ironic) had a net worth of $1.5 Billion, selling “roof shingles”. But, typical markup for distributors in ANY industry is 40% or less. I was enraged! Sure – a business needs to make money, and I have no problem with it. I noticed that right in front of me was a document that showed ALSIDE’s material cost, which was only 60% of what they charged me! Turn percentages around – that is a 67% markup on materials! Unfortunately, they no longer carry Tamko products in RI and MA, so I had to switch suppliers.īut back then, I was on good terms with my salesman, and one time he sat me down at his desk to fill out some paperwork. what they charged in 2008! Why Are Roofing Prices So High?īack in 2008, I used to buy TAMKO steel shingles from ALSIDE Supply. I know for a fact that the true cost of these products went up AT MOST at the inflation rate, but most likely much less! How do I know, you ask? One of my INDEPENDENT suppliers is charging only $10 bucks more per square of METAL shingles vs. That is more than a 50% increase in 7 years! Mind you, inflation is in theory only around 4%. Architectural asphalt shingles were about $70 per square, and now they are at $110 or more.Now, my cost is $470-550 for metal shingles, and $280-310 for GAF DeckArmor. In 2007, I used to pay about $220-275 per square of metal shingles (with basic accessories) and $130 per 10 square roof of GAF DeckArmor underlayment.Recently I picked one up for $69 (tax included). In 2008, a gallon of EPDM Primer from Harvey was about $18-20.That is a 43% increase in less than 3 years, or 14% annual increase, which is far ahead of the highest CPI reading of 9.1% that we had in July 2022, and 3 times higher than current 5% inflation (as of May 2023). In late 2020, when the COVID XIX construction boom was in full swing, 1 square (100 sq. Beginning March 1st, the cost of ABC Product is going to increase by 7%, and most accessories will go up 3-8%… blah blah blah…” XYZ Manufacturer has increased the selling price of their product, and we have to pass the added cost on to you. This includes the shingles themselves, as well underlayment, and all kinds of other necessary accessories.Įvery spring, distributors send out notices to pros that read something along the lines of: I have had my roofing business for the past 18 years, and for the last 13 years, I’ve been amazed and frustrated with the fact that the cost of roofing materials continues to rise. I would like to shed light on it here: contractors’ costs for roofing materials keep increasing! While there are a number of reasons for this spike, there is one that most consumers are not aware of. People who are doing any kind of renovation, including re-roofing, often face the fact that today contractors are charging at least 15 -20 % more for the job than what their friends or neighbors paid only a few short years ago. These two stores always have some random color shingles on sale, and you get additional 10% off for orders over 24 or 36 squares. Second option – go to Home Depot or Lowe’s website and search for “Roof Shingles”. For example, Alside in Massachusetts is selling off their Tamko roof shingles – officially for $100/square (GAF Timberlines are $120), so that is a nice almost 20% saving. ![]() That might be a good time to get your roof replaced, as contractors and suppliers will be more willing to give discounts.Īnother option – if you are not dead set on a particular roofing brand or color, most suppliers usually have “clearance” items. Obviously it’s better to do it in a lower price environment, and according to many economists, US will have a recession in late 2023. At some point, if you need a roof, it’s better to just do it. Unfortunately, our dollars get devalued, and prices will keep on rising. On top of it, because of Covid payments to anyone who didn’t want to work (thanks Joe), the labor cost is up about 30% since before Covid began. How to lock in low(er) roof replacement price?Īs you will see below, roofing shingles prices are going up in some instances as much as 15% per year.
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