# Starting a roofing consulting business



## roofy (Jun 26, 2015)

Hello all,

I am currently a sales rep for a roofing company and have worked for 3 different roofing companies doing sales for the last 5 years. I have done both residential and commercial. I am unhappy with my current boss and want to go out on my own, here is my plan, tell me what you guys think-

I want to start a roofing consulting business. What I would do is go to a business that needs a new roof and I would sign them the same as a normal sales person. I would then shop the job around to commercial roofers finding the best deal and best roof option for the customer, as well as educating the customer on what they want. This would be helpful to the customer because they would only have to deal with one person and me as the consultant would be able to negotiate a lower price because I know how low the roofers can go. I would make my money by taking a commission from the roof (paid by the roofing company). 

Is this a good idea or not? I know roofs, I know how to sell, I know how to close.

What would be a fair commission? I am thinking around 15% percent.

Thoughts?


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## BamBamm5144 (Jul 12, 2008)

Terrible idea.


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## Builders Inc. (Feb 24, 2015)

Not to be harsh, but let me get this straight. You want to take a licensed contractors honest bid and cut cost down to bare minimum so his/her profit margin is slim to none so you can still be competitive against other roofers who aren't paying you 15% commission, while you hold no liability on the project? 

You should just start a website that has a set annual cost to be a member and find honest roofing companies for the consumer. That way you can make membership fees. Oh wait, thats Home Advisor, they already exist. Sorry. :whistling


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## Builders Inc. (Feb 24, 2015)

Whats wrong with you getting licensed and doing it your self, Seems like you could make more money and be competitive still. 5 years experience right? Thats enough as project manager?


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## ASInsulation (Aug 25, 2010)

I don't do roofing, but your 15% "finders fee" with no risk to you would need to be added to the price of the contract, which will increase the bottom line quite a bit and still leave me holding the bucket if there are any problems. I mean, would your employer pay you a 15% commission on the project if you found it on your own and took it to the table front to back? 

If you are set on going out on your own, I recommend you start a business, licensed and insured, and either hire a crew or sub contract the work. 

I don't mean to cut you down or stop you from trying to achieve what you are looking for, but I would also caution against that route without more research. There is great reason to believe that you haven't grasped the concept and expenses associated with operating a business outside of strictly sales if you believe the plan in the original post is going to benefit anybody. The customer would receive just what he paid for, a bottom dollar job. The contractors will be working for pennies, which will lead to them either blacklisting your jobs or going out of business. And in the end, this will hurt your reputation on both ends of the spectrum. It is a lose/lose/lose business model for the long haul.


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## roofy (Jun 26, 2015)

*Re: Starting A Roofing Consulting Business*

I have thought about starting my own contractor, but my problem was I wouldn't necessarily start with enough work to keep a crew busy. With be a consultant, I would pretty much be a sales rep for all companies I would work with and help select the best contractor for the job. 

I also decided that it would probably be a better idea to have a set amount that I get paid for the roof instead of taking a percent. That way I would select the best contractor not the one that makes me the most money. 

The company I work for currently nets around 30% before they pay me, so I wouldn't think most companies would complain when someone says bid on this roof and split your profits with us. 

I would also be a licensed business, be insured, and warranty all work done by companies we work with. I am not trying to make a ton of money and screw over contractors. I am a people person, I enjoy working with customers and selling roofs, I can manage projects but I think my time would be better spent selling. That is why I had this idea, but since it wouldn't work I will look into other options. 

Thank you for the input


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## ASInsulation (Aug 25, 2010)

Is that 30% after material and labor alone, or after all overhead and taxes? Because if they are operating at a 30% profit margin, that would be impressive. 

A flat fee may work better for your cause, but that is still an expense tied to the project. Essentially, if you are going to sell the job, sign the contract to a company, why not just reverse your payment process? Allow the client to pay you as your entity and then make payment to the contractor after completion. At least this funnels the money properly, the contractor is giving you a price without the knowledge of what your taking off the top, and the only added work to yourself is keeping a tab and 1099'ing appropriately. 

As you said, your time would be more appropriately spend selling jobs. However, you also stated you wouldn't have enough work to keep a hired crew busy. I said before, I don't want to shoot you down, because we all start somewhere. Sub-contracting will take a little pressure off your shoulders while you proceed to learn how business operations go, fine tune your forecasting, and begin truly planning.


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## Builders Inc. (Feb 24, 2015)

I would also make sure your not breaking any laws about "contracting" roofing services without being a licensed contractor, subbing out or not. Might want to check up on that. Make your advertising and wording of your contracts legal before you get slapped with a felony for contracting without a license. Even if your roofing sub has the license. He would not be an employee of your company or have ownership percentages in your company so that would be working without a license, at-least in Florida it would be. Do your due diligence, call your state corporate filing, local city business licensing, department of revenue, department of workers compensation, find general liability quotes, look into several marketing strategies and price them out too. Then you will have a basis of what you will need to at-least start. Go to the bank and set up a business account, buy quickbooks, find an accountant. etc... Theres a lot to do but it CAN be done. Just have to be smart about it.


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## FrankSmith (Feb 21, 2013)

Just what the world needs. Another middle man trying to get a piece of the pie with out getting his hands dirty.


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## ASInsulation (Aug 25, 2010)

There is a place for every position in the business. If he is going to go out and provide a consulting service to clients and bring quality jobs to quality contractors, we are in no position to point a finger.

I've dealt with quite a few "middle-men" over the years that put some excellent projects on the table for me, and met all my financial criteria. Hopefully, they got a slice of the cake too and I can look forward to another phone call from them down the road.


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## FrankSmith (Feb 21, 2013)

ASInsulation said:


> There is a place for every position in the business. If he is going to go out and provide a consulting service to clients and bring quality jobs to quality contractors, we are in no position to point a finger.
> 
> I've dealt with quite a few "middle-men" over the years that put some excellent projects on the table for me, and met all my financial criteria. Hopefully, they got a slice of the cake too and I can look forward to another phone call from them down the road.


If his goal is to shop the price down to justify his 15% no one benefits.


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## fast fred (Sep 26, 2008)

FrankSmith said:


> Just what the world needs. Another middle man trying to get a piece of the pie with out getting his hands dirty.


thats the wave of the future!!!!!! Get some! All these internet companies and people trying to be the middle man make some easy cash off the backs of everyone else and not lift a finger hmmmm sounds pretty darn good to me

This guy also wants to beat the price/cost down as low as he can so the customer feels like they got a great deal, the walmart way, lowest price, lowest wages, lowest quality, yet he makes 15% for doing absolutely nothing

your a salesman............ thats nice, but have you ever ripped off an old roof installed a new roof or is everything you've done just been on paper, pushing paper is bs, shingling a roof in 80 degree weather being paid low wages because some middle man took money for nothing 

everything is so easy on computers and paper good luck


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## 1985gt (Dec 10, 2010)

Depending on the area it may be hard to be an independent consultant. What are you going to focus on residential or commercial? 

We have a similar relationship with a what you could call a consultant. Basically he finds the jobs, writes the specs, ect. The thing is you have to use his manufactures material. So we all have a set price list, so it's who ever is cheaper on labor then other other materials should be close to the same (we all figure up our own materials). Then there is a bid meeting all of our bids are opened in front of the customer, lowest price wins for the most part. Now the manufactures rep/consultant get paid by his manufacturer a percentage on the materials. From what I understand the percentage he gets paid is very nice, he works 6-8 months a year. If your a hell of a salesman this is the route I would go.

FYI The manufacture is Garland, Tremco is another that I believe works in a very similar fashion. This is commercial only. 

I honestly thing it would be a hard sale to try and be a consultant in the residential aspect.


Also I should add. If your going to do this, don't beat the contractor down on price. Let them give you a price and mark it up your percentage. 

IMO Your percentage is directly related to how much you are involved. 15% IMO you wouldn't be very involved. We generally do 25% for the shingle work we kick to our shingler. for the 10-15% I'd rather just give the guy the job then have to have our name on it, inspect it and all the other rigmarole.


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## Anti-wingnut (Mar 12, 2009)

Builders Inc. said:


> while you hold no liability on the project?


He actually would hold all the liability, and his name would appear first on any lawsuit


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## BradingCon (Dec 17, 2010)

As others have said here, if you can find the jobs and have competent people lined up to do the work, then start a legit roofing company and sub all the work out to subcontractors. That is essentially what you are trying to do but you will be managing and assuming at least some of the risk which will justify your mark up.


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## Metro M & L (Jun 3, 2009)

I think the op should go a step farther, partner up with home Depot and sell roofing franchises for 20k and 30 percent of gross.


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## jaydee (Mar 20, 2014)

Why on earth would I split my profit with you.

Because you think I'm the best roofer for the job.

Your a salesman, acting like a salesman, trying to convince yourself your idea is better than really working.

As a contractor I would never cut my profit for a job..

As a homeowner or customer, I would rather deal directly with the contractor or business I hired.

So, your idea isn't for me...


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