Roofing Contractor Spread Model

Nick discovered that roofing companies operate as general contractors, making significant spreads by managing jobs rather than doing the physical work themselves. When he received a $70k bid for a 10,000 sq ft warehouse roof, he found the actual hard costs were only $45k ($30k labor + $15k materials), meaning the roofing company makes a $20k+ spread in just two days.

How It Works:

• Sell and Quote the Job:
  • Quote customers at full retail pricing (e.g., $70k for the warehouse roof)
  • Handle customer relationships and billing
• Hire Subcontractors:
  • Find subs to do the actual labor for significantly less (e.g., $30k)
  • Purchase materials directly (e.g., $15k)
• Manage the Work:
  • Show up and oversee the crew
  • Ensure quality work is completed
  • Carry insurance and put your name on it
• Collect the Spread:
  • Make $20k+ profit in a two-day job
  • Pay the sub and move on to the next job

Key Insight:

• Not sexy or exciting, but roofers in every town in America are making $5-10k+ per day using this model
• The value is in sales, customer relationships, insurance, and quality management—not the physical labor