Do You Know Your True Overhead?

It is very expensive to run a roofing company. We have crazy high liability. It's a pass through business, right? It's not what you make, it's what you keep. This is a super common path. New companies try to recruit with the competitive advantage of, we'll pay you more, right?

Which is very similar mentally as saying, I'm gonna quote my roofs at cheaper prices to win more business, which great, like that's the foot in the door. It gets you going. There's no shame in doing that to get started. At some point it becomes unsustainable.

I would calculate your true overhead cost. This is fixed bills that you pay every month to keep the lights on, everything down to your phone bill, the rent, utilities, internet yard signs, all the intangibles. That's all overhead. I will look at that in comparison to your top line revenue. There you have your true percent of overhead costs.

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