Unlocking the profit potential of roofing services

By Jesse Sanchez. 

Roofing services offer untapped revenue for industry professionals to take advantage of, says industry veteran.   

In this episode of Roofing Road Trips®, host Karen Edwards sat down with Tracey Donels, founder of Service First Solutions, to discuss the often-overlooked profit potential in roofing services. The conversation, while touching on many aspects of the roofing industry, primarily focused on how roofing contractors can increase their margins by investing in service departments. 

Tracey, who spent nearly two decades in commercial roofing, revealed how he helped grow the service department of a Dallas-based roofing contractor from $800,000 to $8.5 million in revenue. "We go around the country and help people recognize those same benefits from having well operated service departments and be able to reap all those benefits," Tracey said. 

According to Tracey many contractors hesitate to build service departments because they perceive it as complicated. However, he expressed that the margins in service work can often exceed 50%, compared to much smaller returns on re-roofing or new construction projects. "I definitely know of contractors that are making 70% routinely on their service work," Tracey stated. 

Throughout the conversation, Tracey used a compelling analogy to explain why many companies struggle with their service departments: they operate like a "food truck" when they should function like a "Chick-fil-A drive through." Companies that lack processes and dedicated personnel are often unable to scale, but those with streamlined operations can handle the work efficiently and profitably. “If six full cars pull up to Chick-fil-A, that's just another Tuesday at three o'clock. That's what they're built to handle,” he explained. With the right infrastructure and planning in place, companies can significantly increase their annual profits. 

Read the transcript or Listen to the podcast to learn more about insights and practical tips on how to build a profitable service department!