Roofing Business Model Storm Chasing vs Residential Retail


Let’s first look at how storm chasing companies operate.

For more information about Roofing Insights visit https://roofinginsights.com
For business help and exclusive content check out https://roofing-school.com
For our One day classes near you check out: https://roofingclass.com
For business inquiries please text: “partnership” to 612-558-4881

1. War Room Mentality

Companies who believe in war room-type climates typically are more interested in sales than building a customer base. Think Leonardo DiCaprio’s character in Wolf of Wall Street. In that movie, DiCaprio’s character tries to sell as many stocks as he can. This is exactly how contractors who are more into storm chasing generate business, by trying to secure as many contracts as possible. This model has the potential to yield higher gains because you’re generally on the road more.

2. Independent Reps

If you have a storm chasing-type of company, you’ll likely hire independent reps to find leads. For example: Denver just got a huge snowstorm, so you then hire reps in that city to find customers and you bring your team out to do the job. This method is good if you’re willing to travel and perhaps pay a little extra to the independent reps in different cities.

3. Minimum Investment

Another positive to storm chasing outfits is they don’t need to invest much money into advertising. A simple company logo splashed onto your truck and a few professional folders will be sufficient.

4. Tenuous Work Climate

Most work done by storm chasers happens in seasonal fashion, meaning they only visit parts of the country at certain times of the year. For example: a storm chaser wouldn’t come to Minnesota in the winter because no roofing work will be done at that time of year, so they’ll likely head south, to a state like Florida. As a result, income can be inconsistent.

5. Always On-Call

Say a big storm just touched down in Dallas and houses were affected. A good storm chaser will then head to Dallas to find work. Seems like a good mode of business, right? Yes, but what if you have a family in Minnesota? They might not want you to jet off somewhere new. Storm chasing all depends on the life you want to live.

Now let’s take a peek at the ways residential retail companies conduct operations.

1. Managers Meeting

Instead of having a war room, residential companies typically have weekly meetings where they assess everything from income to the broken coffee machine. It’s a more family-friendly environment where consistency is the goal among owner and staff members. In this setting, employees are usually designated and assigned certain tasks.

2. Employees

Instead of hiring independent reps or subcontractors, residential businesses usually have a staff of people who handle different aspects of the business. Most residential companies have their own sales teams and better understand the overall objective of the company.

3. 5% Minimum Investment

Residential businesses funnel revenue back into the company’s advertising, which is typically about 5% of the income. This allows them to continue branding, where instead of trying to make a splash in the market, they opt for consistent and continued growth, the focus more on solidifying a reputation within their community.

4. Market Never Stops

As a residential company, you’re always inundated with phone calls from subs or prospective clients because of your status in the area. The downside to being residential comes when business is slow. Unlike a storm chaser, you’re unable to pick up and leave to go find work. This means the focus is on consistency at the craft, finding an equilibrium that allows the company to slowly build. Dmitry recommends striving for three years of steady growth (around 20-30% a year) before forecasting your company’s projected revenue.

5. Localized Customer Base

Similar to #4 above, the goal is to become respected in the community and building a brand people know and can rely upon. Dmitry encourages companies adopting this methodology to strive for consistency. For example: if you run your business in this manner, you should focus on making $250,000 consistently each year, as opposed to trying to max out and make $800,000 in one calendar year.

There is no right or wrong way to run your business. It simply depends on the lifestyle you want to live.

Choosing an Eco-Friendly Roofing Material

If you are building a new house or replacing the roof on your existing property, it is important to spend some time considering the type of roofing material you will use and its impact on the environment from sourcing through to waste. You will also want to ensure that the roofing material you eventually decide upon will be able to withstand all sorts of weather, including heavy rain and wind. Another consideration is the urban heat island effect, this is the phenomenon whereby urban areas heat up several degrees higher than the surrounding rural areas, during daytime and especially at…

Choosing the Best Roofing Contractors

Have you just moved into a new home, and one day you begin to wonder if you need to make home repairs? You might think that everything in your home is up to par, and that repairs are not necessary.

A Guide on How to Use Gutter Heaters Effectively

If you’re living in a place prone to experience snowstorms, then you probably have an idea about how inconvenient and dangerous such extreme weather conditions can get. The best way for you to protect your house from these perilous snowstorms is to install proper drainage and gutter systems to your rooftops. Both of these should be one of the main features of your house.

Why Is It Important to Have Your Roof Inspected by a Professional Roofing Contractor?

Are you buying a new or used home? Have your roof inspected by a professional roofer, don’t depend on the home inspector who is going to look at your roof across the street.

Roofing: New Warranties Benefit Home Owners and Installers

New, longer warranties on popular asphalt shingle roofing products are good for homeowners and contractors. But the longer warranties come with more stringent installation guidelines so hiring a qualified contractor is more important than ever if you want to receive the full benefit of extended coverage.

You May Also Like