Increased Home Value
First, I wanted to make you aware of an upcoming training opportunity through Dave Yoho Associates. On Thursday, December 15th, at 10:30 AM EST, Dave and his team will host a webinar titled, “Home Improvement Pros: How to Overcome the TWO Most Costly Mistakes Affecting Your Profit Margins!” Their studies show that 65% of companies are not earning the profits they hope for. Join them next Thursday to learn how you can increase the profitability and success of your business. You can register here.
I know most of you are incredibly busy working through your backlogs, but as we head into winter, soon you will hopefully have the chance to take a breath, and work on your business rather than in it. As we do every winter here at Isaiah Industries, I am sure you will take some time to evaluate your sales presentation and methods. To aide in this process, we thought it would be helpful to review the key benefits of residential metal roofing and hopefully introduce some new methods of leveraging them. If you ask a homeowner to invest in metal roofing, they are going to expect the level of detail and explanation they would from any other investment opportunity. You must be able clearly articulate the benefits and explain how they impact the return on investment. In this issue of the Residential Metal Roofing Executive Report, we will review the benefit of Increased Home Value.
For a typical metal roofing customer, their home is their single largest investment. They have the resources to live comfortably, but have had to work hard and save to achieve that status. A nice, comfortable home was likely the ultimate goal, so they have a deep emotional connection to their home and what it has meant for their family. When it comes time to replace their roof, they once again have to manage their resources and make a wise decision. This is not the consumer who has a million-dollar-plus home while leasing a new luxury vehicle every couple of years and taking elaborate vacations.
Do not underestimate the power of this emotional connection. Every day we receive calls from homeowners all over the country who have chosen metal roofing, whether our products or one of our competitors. If it was a positive experience, they are filled with joy and excitement, and take enormous pride in the wise decision they made. On the rare occasion we hear from an unsatisfied homeowner, they are deeply hurt and distraught. The magnitude of the original investment in their home and the resulting emotional connection, multiplies all emotions, whether positive or negative, and tears are not uncommon either way.
Specialty metal roofing resonates with this customer as, not only are we able to protect and beautify their home, we are able to increase the value of their investment. Historically, the Cost vs Value Report by Remodeling Magazine has found that high-end roofing (metal roofing serving as the baseline) adds over 60% of its cost to the value of the home. For a $35,000 metal roof, this means $21,000 is added to the home’s value. This amount is certainly insignificant to some, but not to a metal roofing customer. They see metal roofing as an opportunity to increase the value of all they have worked so hard for and the next wise step in managing their finite resources.
Sometimes homeowners doubt the 60% average – it just seems like too large of a number. When talking with homeowners, you can quote the corroborated 60%, but make the point that even 40 – 60%, at $14,000 – $21,000, is an incredible return, especially when considered as only one of the components of the total ROI. Below is the True Cost Analysis worksheet we use as a component of our in-home presentation. When comparing the True Cost or ROI of a lifetime metal roof versus an asphalt roof, subtracting $14,000 – $21,000 from the True Cost of a lifetime metal roof is dramatic.
Please email me if you would like a PDF of this True Cost Analysis. For those of you who are already conducting a True Cost Analysis, or if you plan to incorporate it into your presentation, we have found Homewyse’s Installation Cost Calculators to be helpful in generating market-specific average costs for asphalt shingles.
Regardless of the exact dollar amounts, I always make the point with homeowners that, when you do go to sell your home, having a lifetime metal roof will give you a significant advantage over other sellers on the market. If a potential buyer is considering two identical properties, but one has a lifetime, beautiful, maintenance-free metal roof, while the other has a traditional asphalt roof, which do you think they will choose? In a constantly turbulent home market, no advantage can be discounted.
We are also seeing more and more homeowners consider future generations when making their re-roofing decision. When they reach the stage in life to begin considering what they will leave for their children and loved ones, whether those loved ones will live in the home or sell it as part of the estate, metal roofing customers appreciate the opportunity to increase the value of what they will leave behind. Yet another highly emotional factor for homeowners to consider when making their decision.
So, as you evaluate your sales presentation, do not ignore the benefit of Increased Home Value and the deep emotional ties it has to your typical customer. They worked hard for their home and are looking for opportunities to multiply that hard work. They are conscious of their legacy and want to leave behind as much as they can.
The Metal Roofing Summit is the perfect opportunity to step away from the day-to-day of your business and explore ways to maximize growth in 2017. It is two and a half days of training on sales, marketing, and leadership, and the only event where you can network and share best practices with the leading residential metal roofing companies in North America. It will be held March 13 – 15, 2017 here in Piqua, OH. You can learn more and view the complete agenda on the website.
As always, please do not hesitate to reach out through the information below with any thoughts or questions. We are here to help any way we can!