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.
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like you overcome the same sales challenges that you're probably facing.
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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.
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.