Why Your Roofing Company Isn’t Making Enough Money
Guest: Zach Exposito, Second-Generation Roofing Pro & Owner of Z Roofing and Waterproofing
Host: Jim Ahlin, Roofing Success Podcast
Listen to the Episode: https://roofingsuccesspodcast.com/podcast/249-zach-exposito-why-your-roofing-company-isnt-making-enough-money
🤖 Have a question? Ask this customized ChatGPT for the answer! Specifically designed for this episode, it’s here to help:
https://roofingpod.com/chatgpt-249
Building a Business That Doesn’t Break You
If you’ve ever felt like your roofing company is spinning its wheels despite growth, this episode is for you. Zach Exposito shares a no-nonsense look at the hiring mistakes, structural missteps, and financial blind spots that nearly derailed his company — and the changes that transformed it into a well-oiled, profit-driven operation.
From redefining project management to building reliable in-house crews, Zach’s journey is a masterclass in what it really takes to run a roofing business that scales and stays profitable.
Departments Are Built, Not Hired
Early in Zach’s journey, his company was running lean — sometimes too lean. One person juggled everything from permitting to payroll, and field teams were overextended. Over time, Zach realized that sustainable growth required structure.
“Every department needs defined roles, procedures, and the right people — and that takes time.”
He started adding departments slowly, hiring carefully, and learning from missteps. For example, their initial attempt at building a project manager role failed. The role lacked structure, expectations weren’t clear, and hires weren’t trained properly. The result? Bottlenecks and burnout.
The fix came through restructuring the role, writing out responsibilities clearly, and committing to slow hires and thorough training.
Why Hiring Isn’t the First Solution
Zach urges contractors to stop solving problems by “just hiring someone.”
“We used to hire because we needed help. Now, we hire because we’ve built a role designed to succeed.”
If the role isn’t clearly defined, the hire will fail — and the cost is more than financial. Poor hires create friction, extra work, and missed expectations. Instead, Zach recommends hiring after the process is in place and only bringing on team members who can elevate that process, not create more chaos.
Residential vs. Commercial: Why Crew Structure Matters
Zach’s company operates across residential, commercial, and new construction — but how they staff those services is intentional. They use in-house crews for residential work and subs for most commercial jobs.
Why? Because residential customers demand a personal, high-touch experience.
“Subcontractors don’t always go back and fix a stain on the driveway. Our guys do. That matters.”
Commercial work, on the other hand, is less personal and more deadline-focused. Subcontractors can bring more manpower to large-scale jobs, while in-house crews stay focused on responsive, high-quality residential service.
Financial Discipline: The Real Game-Changer
Zach came into roofing with a background in finance — and that lens has shaped his entire approach. Most contractors ignore financials until it’s too late. Zach watches his P&L, job costing, and cash flow like a hawk.
“You can have the best crews in the world, but if your financials are a mess, you won’t survive.”
He advocates for:
- Comparing year-over-year P&Ls
- Analyzing job-level costs
- Spotting rising expenses early
- Reinvesting profits strategically
What’s a Healthy Profit Margin?
Zach doesn’t sugarcoat it. He expects:
- Residential Net Profit: 20% minimum
- Commercial Net Profit: 30–40%
- New Construction: Lower margin, but manageable with volume and select clients
His philosophy? Know your numbers, know your worth, and price accordingly.
Reinvestment: The Most Overlooked Growth Strategy
Many contractors take profits too soon and fail to build long-term value. Zach emphasizes reinvesting in:
- Safer equipment (think ladders before lawsuits)
- Reliable fleet vehicles
- Staff training and retention
- Internal systems and software
“Pay yourself a salary. Reinvest the rest. That’s how your company becomes sustainable.”
New Construction: Quality Over Quantity
While many avoid new construction due to razor-thin margins and bid wars, Zach carved out a niche by being selective and building relationships.
“We don’t bid for everyone. We work with contractors who value quality and are willing to pay for it.”
He vets partners through real conversations — not just spreadsheets — to ensure mutual fit and avoid being just another number in a seven-bid pile.
Training Is the Competitive Edge
Whether it’s crews or PMs, Zach believes training is what turns a hire into an asset. Even experienced roofers coming from other companies need onboarding.
“Everyone says they know roofing, but our way is different. We train every new hire — no exceptions.”
He recommends 60–90 days of shadowing, documentation, and ongoing check-ins to ensure success. That patience pays off in retention, performance, and culture.
Final Thought: Look Inward, Not Sideways
Zach closes with a reminder that’s both refreshing and challenging:
“Don’t just copy what other companies are doing. Build your own roadmap and trust your process.”
Whether it’s creating departments, managing crews, or tracking profitability, the key is consistency and self-awareness. Zach’s story proves that with discipline, structure, and the right people, even a struggling business can evolve into a machine built for scale.
FAQs: Roofing Business Takeaways from This Episode
Topic: Operations-Management
Q: Why do some project managers fail in roofing companies?
A: Often, the role is created without a clear structure or expectations. Hiring for a role that hasn’t been defined leads to confusion and underperformance. Set expectations, document procedures, and train thoroughly.
Topic: People
Q: How do I avoid bad hires in new roles?
A: Hire slow. Build out the department first, define the role, and only then bring in someone who’s a fit for the culture and expectations. Don’t just throw bodies at problems.
Topic: Customer-Service
Q: What makes in-house crews better for residential roofing?
A: Residential jobs demand more attention to detail. In-house crews are trained to follow company standards, protect properties, and go the extra mile. Subs may not provide the same consistency.
Topic: Growth-Expansion
Q: Should I offer residential, commercial, and new construction services?
A: Only if you can support each with the right team and structure. Zach separates crews and sets clear expectations to manage quality across service lines.
Topic: Finance-Accounting
Q: What profit margins should roofing contractors aim for?
A: Zach recommends 20% net minimum for residential, and 30–40% for commercial. Always track profitability by job, not just overall.
Topic: Legal-Compliance
Q: How do I stay compliant with Florida’s changing laws and building codes?
A: Stay proactive. Read the new codes, calculate the cost of each system, and adjust sales strategies accordingly. Don’t assume what worked last year still works today.
Topic: Sales
Q: How do I compete in new construction without being the lowest bid?
A: Build relationships. Be transparent. Ask what the GC values. If they care about quality, communication, and reliability, you’ll stand out — even with a higher bid.
Topic: Technology-Innovation
Q: How can GPS trackers help manage crews?
A: GPS allows office teams to monitor truck locations, reduce call-ins, and ensure jobsite arrivals. It improves efficiency, transparency, and dispatching.
Topic: Education-Training
Q: What’s the best way to onboard new field crew members?
A: Even experienced hires need onboarding. Zach recommends a 60–90 day window for training, shadowing, and building habits that align with company expectations.
Topic: Niche Services
Q: Is it worth it to pursue new construction roofing contracts?
A: Yes — if you’re selective. Work only with GCs who value quality and pay on time. Focus on relationships over volume bidding.
253: Most Roofers Are Doing Referrals ALL WRONG—Here’s the Fix with Steven Ragsdale
Roofing Referrals Aren’t Luck…They’re a System. Here’s the Blueprint.
Guest: Steven Ragsdale, Co-Owner of Blacksmith Roofing
Host: Jim Ahlin, Roofing Success Podcast
Listen to the Episode: https://roofingsuccesspodcast.com/podcast/roofers-are-doing-referrals-all-wrong-steven-ragsdale-253/
🔗 https://blacksmithroofing.com/
🤖 Have a question? Ask this customized ChatGPT for the answer! Specifically designed for this episode, it’s here to help:
https://roofingpod.com/chatgpt-253
Referrals Aren’t a Strategy—They’re a Culture
Steven Ragsdale built a multi-million-dollar roofing company in a storm-heavy market without door-knocking, lead-buying, or storm chasing. How? Referrals.
But here’s the thing: referrals aren’t something you “do”—they’re something you earn, over time, through intentional culture, process, and people.
In this episode, Steven breaks down how Blacksmith Roofing in Broken Arrow, OK scaled a $6M+ business on almost nothing but word-of-mouth—and why most roofers have it totally backwards.
“We don’t buy leads. We don’t knock doors. We barely market. We just take care of people—our customers, our team, and our partners.”
The Three Referral Avatars: Customers, Agents, Realtors
Most roofers think of referrals as something that comes from past customers. That’s only one-third of the opportunity.
At Blacksmith, Steven trains his team to sell to three audiences—and understand what each needs:
- Insurance Agents want trust. Don’t file shady claims or put their reputation at risk.
- Realtors want speed. Help them get to closing—even if it’s just a repair.
- Homeowners want reassurance. Make them feel seen, heard, and valued.
“Roofing isn’t exciting. It’s not a kitchen remodel. But if you can make it feel like one, they’ll tell everyone about you.”
Hobby-Based Marketing: The Referral Secret Weapon
Cold calls and chamber mixers not your thing? That’s fine. Steven teaches his team to lean into hobby-based marketing—a term he coined that flips traditional sales on its head.
Each sales rep picks a personal interest (golf, cars, church groups, basketball) and builds relationships within that community. Because referrals happen more naturally when the walls are already down.
“When someone knows you as Steven the golfer or Steven the dad, and then finds out you do roofing—that’s a warmer lead than any ad will ever get you.”
The result? A steady stream of referral business, with reps who feel like they’re just living their lives—not begging for deals.
Build a Sales Team That Doesn’t Burn Out (or Bolt)
Steven and his partner realized early that the traditional roofing sales model—where reps wear every hat—creates high turnover and burnout.
So they flipped the script:
- In-house inspector handles all roof assessments
- Production manager runs jobs, warranties, repairs
- Office manager manages paperwork, insurance docs, and supports marketing
That leaves reps to focus on selling—and building the relationships that drive referrals.
“You can’t afford not to afford help. If you want to grow, you need to build a real team.”
By removing friction and giving sales reps their time back, Blacksmith turned $1M reps into $2M+ producers—and dramatically improved customer experience along the way.
Systems Over Superstars: How Blacksmith Scales Consistently
Steven doesn’t want unicorn salespeople. He wants a repeatable system.
So he built one:
- Weekly sales training with structured topics
- Defined processes in Acculynx for every role
- Standardized sales reports and inspection review
- Monthly goals tied to tangible rewards (not just cash)
This has created alignment across departments—sales, production, admin—and clarity on who does what, when, and how.
“We’re not trying to carbon copy a person. We’re building a repeatable model.”
And it’s working. March—typically a slower month—was a record-setter, with over $600K in closed sales.
Culture Isn’t a Buzzword—It’s a Business Strategy
Blacksmith’s biggest growth lever? Team culture.
Every hire is values-aligned. The office feels like family. Team outings, shared wins, and support during tough times aren’t the exception—they’re the norm.
“If I got a flat tire, any one of my team would show up to help. That’s who we are.”
This intentional culture reduces turnover, boosts performance, and makes Blacksmith a magnet for both talent and customers.
Stop Doing Business Like Every Other Roofer
Steven’s parting advice?
Be different. Most roofers try to grow by doing more of the same: more ads, more sales pressure, more chaos.
Instead, slow down. Focus on your team, your processes, and your referral network. Build a company you’d actually want to work at—and people will notice.
“If you want to go fast, go alone. But if you want to go far, go together.”
FAQs: Roofing Business Takeaways from This Episode
Topic: Marketing
Q: What is hobby-based marketing and how can roofers use it?
A: Hobby-based marketing is about networking through your passions—like golf, cars, or fitness—to create organic conversations and relationships that lead to referrals. It’s more effective (and less awkward) than traditional cold outreach.
Topic: Sales
Q: How do I train my team to generate more referrals?
A: Teach them to think in terms of three referral sources: past customers, insurance agents, and realtors. Customize messaging and follow-up to each group’s needs and pain points.
Topic: Operations-Management
Q: How can I prevent sales rep burnout in my roofing company?
A: Remove non-sales tasks from their plates. Hire an in-house inspector, office admin, and production manager to handle paperwork, logistics, and customer service—freeing reps to focus on selling.
Topic: Growth-Expansion
Q: Is it possible to grow a roofing business without buying leads?
A: Yes—if you build a strong referral engine. By focusing on customer experience, reputation, and community relationships, Steven Ragsdale grew Blacksmith Roofing to $6M+ without paying for leads.
Topic: Customer-Service
Q: How do I turn customers into raving fans?
A: Go beyond the job. Communicate clearly, follow through on promises, fix mistakes quickly, and make people feel cared for. Great service = more referrals.
Topic: Education-Training
Q: What should roofing sales training include?
A: Cover more than product knowledge. Teach communication skills, referral techniques, role-specific strategies for homeowners, agents, and realtors, and how to use your CRM effectively.
Topic: Finance-Accounting
Q: How do systems impact profitability?
A: Streamlined systems reduce waste, improve estimating accuracy, and increase capacity. At Blacksmith, process improvements in production and estimating led to higher margins—even with the same job volume.
Topic: Legal-Compliance
Q: How do I avoid issues with insurance agents?
A: Don’t file questionable claims. Make it clear you’re a team player, only filing when appropriate. This builds trust and leads to long-term referral relationships.
Topic: Technology-Innovation
Q: How does Blacksmith Roofing use technology to scale?
A: They leverage Acculynx to manage workflows, automate estimates, and ensure clear handoffs between sales, admin, and production—making the team more efficient and aligned.
Topic: Niche Services
Q: Can roofing companies add other services like windows without losing focus?
A: Yes—if it complements your core business and you have real expertise. Blacksmith added a window division because of existing relationships and experience in that area.
📚 Resources & Links:
🎯 Join Our Facebook Group: https://roofingpod.com/facebook
📱 Text Jim @ (612) 512-1812 – Say Hi!
💬 Leave Us a Review: https://roofingpod.com/review
🤝 Our Sponsors:
The Roofing & Solar Reform Alliance (RSRA)
Tired of predatory practices and shady players? RSRA is leading the charge to create a better future for roofing and solar contractors through education, community, and real reform.
JobNimbus Marketing
JobNimbus Marketing is the industry’s leading marketing agency, crafted exclusively for roofers and contractors. From strategy to execution, they’ll help you attract more leads, close more jobs, and experience the growth your business deserves.
PowerUp Agents AI
This AI tool helps your sales reps follow up faster, handle objections better, and close more deals. It’s like giving every rep a personal sales coach, on demand.
Day 41 Thrive
Day 41 Thrive specializes in coaching, mentoring, and consulting for entrepreneurs and home service companies. Whether you’re building your leadership skills or developing a stronger team, they help you lead with purpose, and thrive no matter the season.
