Ever wondered how much profit roofers and roofing companies make on each project/job? We did, and decided to create this page.
This page was last updated on the .
Don’t forget; this is just one several cost guides. See our full price list here.
Below we explain how roofers price up quotes for their customers, how they calculate their costs, overheads and profit margins. We also present you with some tips on how to negotiate a better price for yourself.
The figures below are based on a real quote that was sent to a customer in November 2015.
We have broken down the figure into segments so you can see where your money is being spent. We have also explained why larger companies need to charge more.
Example Quote – New Guttering: One Day Job
Below is a breakdown of a quote for new guttering to a property in the United Kingdom. The job will take two people one day:
Sole Trader
Materials: £175
Labour (installer): £150
Labour (labourer/assistant): £80
Other*: £50
Profit; £0
Total Cost: £455.00
Summary: A sole trader-type business will charge for the cost of the materials, labour and a reasonable fee to cover *waste disposal, advertising, vehicle costs etc.
Larger Company
Materials: £175
Labour (installer): £150
Labour (labourer/assistant): £80
Other*: £150
Profit: £300
Salesman’s Fee: £120
VAT: £175
Total Cost: £1150.00
Summary: A larger company will charge for the cost of the materials, labour and a reasonable fee to cover *waste disposal, advertising, vehicle costs etc. They will also have additional insurance policies, office staff, *Employer’s National Insurance payments, pension contributions, business rates and other costs to cover. They will also want to make a profit to pay any shareholders a dividend and leave enough funds to expand the business.
Notes:
As you can see from the examples above, sole traders have fewer overheads and can charge much less than larger companies who have many more expenses to cover.
How to Get a Good Deal
From the figures above you can see that VAT, salesman’s fees and overheads really do bump up the price.
You can save money by going direct to the company and sidestepping the salesman. If you know what you want then there is no need to pay 10-20% for someone to sweet talk you into buying their product.
Businesses that have a turnover below the VAT threshold are not obliged to charge their customers VAT. So you can save 20% by choosing a smaller business/sole trader.
You could also purchase the materials yourself and find a tradesperson that is happy to work for you on a “day rate”. Although you would be responsible for any faults with the materials such as mis-measurements. Every tradesperson charges more than they pay for the materials, there is a difference between “list price” and “trade price” but in reality, homeowners can get the same discounted price with a little negotiation.
The time of year you choose to have roofing work done is also a factor in the price you are charged. The simple truth is that roofers and other tradespeople are inundated with work during the summer months and often struggle to keep up with demand.
Why would a company offer discounts when they are so busy they are actually turning down offers of work?
If you want a good deal then consider having the work done in January or February. These are the quietest months for most roofers and with some negotiation, we believe you can get a good deal.
Read Reviews and Ratings of Local Tradespeople
We have a page on our site where you can discover ratings and reviews of local roofers and other tradespeople;