What does the future of roofing sales look like? Here's what I believe are our BIGGEST threats and changes that we will likely face over the next 36 months.
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Hosted by Adam Bensman
- Started in D2D roofing sales in 2011
- Former Roofing Company COO (multi-state)
- Creator of the Roof Strategist Sales System (used nationwide for retail + storm)
- Founder of The Roofing STRONG Alliance by TAMKO™ (formerly known as the Roofing & Solar Reform Alliance)
- Author of the #1 Best-Selling Book: The Roofing Sales Survival Guide: Beat the Odds, Overcome Yourself, and Win Big
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What does the future of
roofing sales hold for?
Well, in this video I'm gonna share
with you my three predictions on the
future of roofing sales, and I believe
that these changes are going to be
occurring within the next 36 months.
That's right.
These three big changes will impact you
and me both over the next three years.
Now, as I lay these out, some of
the stuff might be a little scary,
but I don't want you to feel afraid.
And the reason.
With change, we can either jump on the
wave and surf it and be in the forefront,
or we can let that wave crash through
us and we're left there tumbling on the
bottom of the ocean, getting smacked into
the, into the sand or into the coral reef,
and watch everybody else coasting that
wave, having a good old time pass us by.
And by the way, being slammed
on the bottom of the ocean
under a wave, not very pleasant.
Been there.
Hey, welcome or welcome back.
My name is Adam Besman, the roof
strategist, and everything I do here on
my channel is designed to help you and
your team smash your income goal and give
every customer an amazing experience.
And I've had the opportunity to
help thousands of sales reps just
like you overcome the same sales
challenges that you're probably facing.
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Every video I've ever
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Great for the seasoned veteran
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Great for owners and managers.
Looking for some content to train
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Look no further.
Go to the roof strategist.com
right now, or click the link
in the video description below.
All right, my prediction of the few,
uh, the, the biggest three changes that
we're gonna face and, and I invite you,
please drop a comment, share your thoughts
whether you agree, whether you disagree,
and what items that I may have missed.
Now, full disclosure, I've shot
this video about five times.
And I've trimmed it to the, to the main
three that I think are, are really the
things that we need to be focused on.
So let's skip the fluff and
jump right in, shall we?
All right.
Number one prediction.
I see an emerging trend in private
equity in corporatization coming
into the roofing industry, we
see people gobbling up companies.
We see other companies merging
with other companies, and.
I believe just like our utility
companies are trying to create
these, uh, monopolistic practices,
I see this coming with the.
Roofing industry, there's all
of this money coming in, and
with that money, we see massive
technological advancements now.
So the future of roofing sales, you're
like, Dude, you just wrote the word
technology, so I wanna break this down.
What kind of technology
am I talking about?
I believe in the next three years, we
are going to see people moving into
systems to, to try to sell a roof online.
We're looking for ways to cut the, they're
looking for ways to cut sales people out.
How do we eliminate our, one of our
biggest expenses, which is roofing?
Salespeople that earn a commission.
And I know that there are
people developing in, working on
methods to sell a roof online.
And again, remember I said
there's nothing really to be.
So I want to ask, especially to all of
my storm restoration contractors out
there, think I want you to ask yourself
this question, What percentage of the
roofs that I sell does the homeowner
say when you first approach them?
I don't have any problem with my roof.
I dunno what you're talking about.
Now for most companies, that's between 70
to 90%, which means 70 to 90% of people
don't even know they have a problem.
We're in direct sales.
We show up at their house to
help them identify the problems
they weren't even aware of.
And this is why I think, and it drives
me nuts, I see people that are like,
Adam, oh, storm sales isn't real sales.
And I'm like, Oh, it's not.
You mean?
Anyone can show up at a stranger's house
unannounced with no brand recognition
and get an opportunity to hop up on
the roof when they think the roof
is fine, show them that they have a
problem, and then get them to take
action on that problem and end up with
a contract for 20 some thousand dollars.
That's pretty wild, in my opinion.
Some restoration contractors, they
have cut their teeth in one of the most
challenging types of sales, yet for some
reason, people push back on me and I
always wanna say, Oh, it's not that hard.
Then by all means, teach me the way.
Show me.
They're just afraid to do it and
people, it, it, I could go on and on.
So my point is, yes, this will happen.
There will be a new Amazon Roofing
is getting commoditized and people
will be able to shop for roof.
And those people, that market
segment on the, uh, level of
awareness, if we look my, my.
Estimation of the market is that
about 70% of the roofing industry
in the US is driven by severe
weather, hail, wind, or hurricane.
When we see pretty much everywhere from
Arizona and Utah, all the way up through
the Midwest, through the Dakotas in every
single state up until about Pennsylvania,
straight south, that main segment.
Majority of the market
is driven by storms.
We get states like California,
Washington, Oregon, and in the northeast.
Those places don't get storms
in the same frequency, but they
still get some specifically
severe weather being on the coast.
Now, the reason I say that is if we
look at the market, I'm gonna say
that, oops, let me erase that here.
I'm gonna predict, and, and by the way,
this is where I'm looking for, for you
to say, agree, disagree, push back.
That's all good.
If we were to carve out a
segment, I'm gonna say that storm.
takes up about this much of the market.
Here we've got retail, These
are elective roof replacements.
And then again, we've got,
within retail, we can grab out
a sliver of new construction.
So in fact, let's do that right now
because the buy roof online people,
that's not gonna impact new construction.
That's a whole different kele of fish.
These systems are designed
to sell, um, sell roofs to
people who know they need it.
So we got retail and then we
have, I'm just gonna write new.
Construction there.
So this technology I don't believe is
gonna impact the store market as much.
Emerging technologies to
identify damage, speed up the
process, all that will impact us.
But I'm not super concerned about the
technology to cut the sales person out
because generally speaking, these folks
don't even know they have a problem.
We got the retail market.
People who jump online need a
new roof, New roof replacement.
Yeah, this could.
Retail folks more, which
again, we still serve.
But I just wanted to paint this picture
of what I see in the market and why people
that say Adam do more stuff on retail.
I do a lot on retail, but I'm gonna be
frank with you on YouTube, it doesn't
perform as well cuz most people are
capitalizing on storms and the only
time they're turning into retail is
when there's not a lot of storms.
And a good company should
be able to handle both.
All right, so there's my prediction on
the technology side, the main thing.
A bunch of money coming in, private
equity coming in, technology companies
growing, and the capability of companies
that are out there now exceeding
to make the process faster and to
cut the salesperson out, all right?
That's the main thing.
Cutting the salesperson out.
How do we sell a roof online?
How do we estimate on autopilot?
How do we present automatically?
And how do we give the homeowner control
to, to select their options and go?
And again, I do believe this will
be often a race to the bottom
because on a big decision for
someone being in someone's home.
I think there's gonna be some
market adaptation until people
are even comfortable saying,
I bought this roof online.
I didn't talk to anyone until I literally
gave a deposit for a $20,000 system.
10 grand Uhuh.
I just, there's gonna be some
human element involved and I think
that we've got some time to adapt.
So there we have it.
Number one is technology Now, number.
. And by the way, again, drop in the
comments if you agree or disagree.
If you think this number is totally
skewed, I'd love to hear from you.
This is my, what I've seen from
serving folks in every state, but,
uh, your opinion matters, so drop it.
All right.
When I say drop it, I mean in the
comments, not drop your opinion.
All right.
Number two, what I see is price pressure.
Now I'm gonna break this down
to both storm and retail.
What do I mean by price pressure,
uh, at today's current, at
the time of this record?
, we've got some supply chain issues.
We have material availability issues, and
we have the cost of roofing skyrocketing.
When I got into the business in
2011, we were fighting to get 300 a
square and that same market today is
selling at six 50 to 6 75 a square.
Now that doubling more than
doubling of that price took a
bit over a decade, but in today's
economy, we are seeing seven to 12.
Percent price increases on raw
material per quarter, which means
that the cost of roofing is compound.
Pretty much four times faster
than the stock market, and who
knows what that's gonna look like.
The result of this is that the
price of roofing is going to
double is two x per five years.
That's about the projection that I've
shaken out with the math meaning.
If someone decides today, Hey, I
don't wanna do my roof, I can get
five years more out of it, you're
gonna see that the cost of that
roof will double in five years.
Uh, at today's rates, a $15,000
roof is going to be about $5,000
more if they wait a year at 7%.
And then at 12%, that number shoots
up to almost $9,000 on a $15,000 roof.
Yeah, you heard me right?
And if you want more on that, click up
here and watch this video on urgency.
Creating real urgency true to life.
Urgency and getting homeowners
to take action now and not
punting the roof down the road.
We'll do it later.
We'll do it later.
Cuz the truth is they're gonna be
spending just in a year, five to
$9,000 more for the exact same roof.
And it's not like they're getting
some fancy new phone, right?
Same roof, same color options.
So those price pressures.
I believe are going to impact the roofing
space because we're gonna have to get
creative on our financing solutions.
But then we have storms,
so let's talk about that.
I believe that we are going to see
pressure from insurance companies both
on policy coverage and deductibles.
Okay.
What we're already seeing, by the way,
is coverage on the, um, uh, roof surface.
We're seeing exclusions, we're
seeing special deductibles
for hail, wind, or hurricane.
Um, and I do do believe
that's gonna gonna continue.
D Duck de bull.
Sorry, I can't spell and
talk at the same time.
This price pressure is
gonna have to, to, to.
Have us adapt on how we serve and what
we offer, including financing as well
as option number three, which I'll
be talking about here in a minute.
Price pressure, retail
price pressure insurance.
We got pressure on the retail side from
the, the industry at large, and then we
have pressure on the insurance side due
to these rising costs and rising claims.
With coverage and deductible issues,
the insurance companies are trying
to cut themselves out, and we're also
seeing that they're trying to pay less.
Right?
We're seeing this a lot on carriers, the
common claims, and in fact, uh, at the
time of this filming, we're bringing a
special guest into the Pitch Pro movement.
Uh, drew subtle with total scope to
talk about dealing with this stuff.
So, um, yeah.
It's common.
I post it in the group.
What do you want Drew to cover?
Main thing, coverage,
disputes, lack of coverage.
Playing games on not paying
out, moving to other platforms
outside of Xactimate to estimate.
So if you're interested in that, by
the way, and you do end up becoming a
Pitch Pro movement member, if there's
links in the description, um, that
recording will be available for you.
So that's number two is price, pressure.
And then the biggest threat.
Number three is, it's funny, it's a
threat, but it's also an opportunity.
And it starts with an ask.
Can you guess it?
Solar.
All right.
Now I'll tell you first.
I was very resistant.
I, I posted, in fact, in some of the
industry Facebook groups do believe in
solar to the people who are selling it.
And surprisingly to me, I was shock.
Most salespeople didn't believe
in the economics of solar
to do it on their own home.
I sat through presentations,
I'm like, Ah, I ain't into this.
And it wasn't until I started to uncover
a new way to do solar, to integrate
solar with a roofing company for both
retail and storm that it really clicked.
And through learning this have helped
the company, uh, end up doubling their
revenue in 90 days, going from 1.2.
Per month to about 2.5 million per month
end growing by integrating the two.
And in fact, we actually just had a
gentleman inside the Pitch Pro movement.
Cause we had our first solar
sales training session in
the pitch pro movement.
And I'm pulling up this,
uh, this image right now.
He says to me, he goes, uh,
another 22 kilowatt system closed.
That's 42 kilowatts in two days.
Check this out.
Uh, homeowner.
Homeowner getting a
roof paid by insurance.
After he called me out to look at it,
the repair job turned into $120,000 sale.
You see that pretty, pretty nuts.
So what we see is through these
financing vessels provided by solar,
we're able to have a competitive edge
by integrating not roof and solar, but
I want you to think of roof with solar.
But the problem is the confusion.
Sales reps don't know what
to sell, how to sell it.
Am I pitching solar or
roofs and integrating these?
Usually ends up where companies fail.
The sales rep runs around,
what do I sell today?
Do I lead with roof?
Do I lead with solar?
And then the deals fall apart
and they don't have a hook.
There's no urgency.
And it truly is an art cuz this is,
the solar sale is a bit more complex.
It really, it's financial arbitrage.
It's that simple.
But you can't say to homeowner, Don't
worry, I got a great arbitrage product.
They don't get that.
So we need to learn how to communicate
and, and I think that in the next
three years, if companies aren't
doing solar with their roofs,
they're gonna start losing deals
to competitors who can offer better
financing options opened up by solar.
Who homeowners are gonna want solar
due to the new tax credits at 30%?
And due to the domestic manufacturing
tax credits, that can bump that up to a
40% tax credit, if that, uh, system is.
, um, excuse me, if the, uh, uh, raw
manufacturing is done in the us.
So if panels are made in the
US and there's all these little
nuances, but uh, again, that's
a deeper discovery for later.
And then you have state tax incentives
on top of it, which means, like in
Illinois, there are some circumstances
that you can get at 50 or above 50%.
Tax deductible systems.
So if your company or you are not in a
position or know how to sell solar, offer
solar the right way to win more business
and, and truly double your business.
I do think that you will struggle in our
market because again, solar, when we can
turn an insurance claim into a roof solar
combo, we're really in an amazing spot
for that homeowner and I'll share more.
And in fact, I have my new solar sales
system, uh, being released very, very
soon now, we've been behind the scenes.
Rolling this out with this one company,
again, going from 1.2 million a
month to, uh, 2.5 million a month in
rising, You saw what what Marcos was
able to do by bringing a repair into
$120,000 sale for roof solar combo.
And in fact, the last company, we just
rolled this out, they sold a $39,000
solar system on top of a $35,000 roof.
And that was also an insurance claim.
So there you have it.
My three big predictions for
what I think we're gonna see
putting pressure on our in.
Don't worry, we can't adapt.
Number one is gonna be technology
attempting to cut the salesperson
out by automating certain processes.
I do believe that we have a large part
portion of the market that will be the
last to adapt, and I don't think that the
human element will be removed entirely.
I do think that our roles might
change in time, but time will tell.
Number two is price, pressure
from the retail market.
With the cost of goods skyrocketing
through inflation, material
availability, and oil prices.
Then on the insurance side, we
got our coverage issues and we're
gonna need to adapt on that front.
And the final piece here is solar.
We'll need to, at some point
jump on board and learn how to.
Integrate this model or we're gonna get
left behind as our competitors offer
solutions that we simply cannot touch.
And there you have it.
Now what did I miss?
What predictions do you have
over the next three years?
How do you think our
industry's gonna change?
And what, what threats
do you think we face?
Share your comments below so we
can use this to all grow together.
And that's what I love
about the community here.
And thank you for being such a
valuable part of it in investing
your time with me today.
Now, just cuz our time here is about,
Up doesn't mean your and my time has to.
So if you haven't yet done it,
hop in right here and download a
free copy in my pitch, like a pro
roofing sales training video library.
And if you didn't do it, watch
this video here on urgency to talk
about those price increases to get
homeowners over the edge to buy a
roof now and not wait a year or more.
And believe me, you're gonna
provide better service, have happier
customers, and win more business.
That's all for now, and I
will see you on the next one.