Roofing contractors are experiencing similar challenges as other construction and home improvement providers: supply chain issues, increasing prices, materials delays, and more.
Even though the price of roofing supplies continues to increase, the costs are not fixed. As a roofing contractor, you can negotiate price with multiple suppliers. This saves you money, and affords you the ability to pass the savings onto your customers. Of course, this helps you close more jobs.
There a few different ways to tackle these problems and minimize their effects on your business. In this article, you are going to learn strategies every home improvement contractor needs to know to manage the inflation and supply shortage issues we are facing.
Tips for Opening Accounts with Suppliers
When connecting with new suppliers, remember that your pricing level varies depending on average job size and credit history.
You are working with someone on the supplier’s sales team most of the time. Your salesman ultimately decides your pricing and account levels. Therefore, be proactive about communicating with this person to show them why you deserve the lowest pricing.
Additionally, it is recommended to talk with all suppliers in the area. Even if you prefer a specific supplier, you never know when supply chain issues might affect their inventory. If there is a supply shortage, it’s always good to have a backup plan for getting materials.
How to Negotiate
You always have room for negotiation. Do not assume that you need to accept the terms the supplier offers. See if the supply company can offer better pricing if you only buy from them. While it’s not a bad idea to have accounts with several suppliers, the salesperson might offer a better price if you choose his or her company as your sole supplier.
Finally, when negotiating with your supplier, discuss your needs, such as the quantity and types of materials you will be purchasing. They use this information to determine the terms of your contract.
Overcoming Supply Shortages
When you need materials on-site, do not let the supply shortage problems hinder your ability to move forward with the roofing project. If you have established relationships with the suppliers, you should call all regional suppliers to find out which ones have the materials you need.
Be proactive with your communication. For example, call your point of contact regularly for updates. These salesmen are working with many other contractors, so it’s easy for them to get behind. Regular communication keeps you at the top of their mind.
Additionally, you can reach out to stores in other cities to see if they have the materials in stock. If the supplies are available, find out if they can transfer the materials to your local store.
Even though there is a supply shortage, you do not have to let these challenges hurt your business. Instead, a proactive approach helps you access the supplies and services you need, ensuring you stay ahead of the competition. Open several accounts, build relationships with salespeople, and keeping constant communication will put you in a position to succeed.