ABC's pricing policy is opaque and antiquated. ABC Supply has different prices for every contractor that buys from them. And it's not just them. It's Beacon, SRS and many other roofing materials distributors across the country. As of late 2022, input prices (the cost to acquire the raw materials) has been dropping. Meaning, that ABC's, Beacon's and SRS' prices that they get things for, has been steadily dropping.
For the second time this year, ABC Supply sends you (roofing contractors) a letter. The letter states that as of August 1st, for any new orders or any orders that have not been shipped out before, that your prices are going to go up by a minimum of 5% to 10% for all steep slope roofing products. That's on top of the multiple times that they increased prices the year before and the year before that.
So let's compare prices for like (similar) products. And I say “like products” because it's really pretty much the same product. We all share the same manufacturing plants in China for similar products. The only difference is that we private label the coil roofing nails with our own information on the outside of the box and they're our brand. That's the only difference. 1 1/4 Inch Coil Roofing Nail Boxes:
ABC is selling 1 1/4" Coil Nails for the high price of $52.99, and that's just one price. Some contractors are paying more, some are paying less. Who knows? The Roof Store has the same product for $28.95 with Free Shipping plus a very reasonable minimum of 96 boxes. Let's move on to Cap Nails. Boxes of 2000 count per box. 1 inch Ring Shank Electro Galvanized Cap Nails. ABC Supply sells them for $27.99.
The Roof Store has them for $10.95. That's a 61% difference between The Roof Store and ABC Supply (3x higher price). What added premium is worth paying more than double for exactly the same product? 1 1/4 Inch Hand Drive Nails, 50 pound size boxes, Smooth Shank Electro Galvanized. ABC Supply sells them for $64.99 while The Roof Store has them for $49. You can buy them at https://www.theroof.store for 28% less than your current distributor.
It doesn't make any sense to pay a premium for the convenience of having ABC deliver Coil Roofing Nails to your jobsites. You can have your salesperson or your project manager, which is already going to be there. Have that person responsible to take polyurethane sealant, vents, Bullet Boots, Coil Nails and just take them to the job site. Keep more of your money, make yourself more profitable, start taking more control of your roofing business and restructure your roofing business for future growth.
And it's not just their pricing policy that's antiquated. It's also ABC's ordering system. At The Roof Store, You log on to the website (https://www.theroof.store) at any time of the day or night with any device that you want. Click on the product, add it to cart, go through the checkout process. We begin processing your order immediately and get free shipping delivered to your home, or to your office.
As long as you have the ability to receive commercial shipments. Alex Hormozi says, "Make your offer so good that your customer would have to be out of his mind not to buy from you". And that's the approach that we've taken. We have a very modest and fair profit margin and we pass on the rest to the roofing contractors so you can increase your profits.
It is impossible for ABC Supply to compete with The Roof Store at the prices that we're selling. In order for them to keep certain accounts they might match or even come close to matching our prices. But if everybody at once went to them and said, Hey, we want you to match The Roof Store prices, they would not be able to.
They will selectively cherry pick one, two, three, four of their accounts to match prices. But again, they cannot do it. Their overhead due to their inefficiencies is absurd. Our mission is to be a valued resource to your roofing organization. Let me know how we can continue to serve you at the highest level.