The short answer: 20-30% gross on retail reroofs; 30-45% gross on insurance-claim work. Insurance margin is higher because Xactimate scope + supplements capture items the homeowner doesn't price-compare. Net margin after CAC and overhead typically lands at 8-18%. The single biggest variable separating profitable from struggling roofers is acquisition channel — direct mail at $300-$600 CAC vs aggregator leads at $1,000-$2,000 CAC.
Gross margin by deal type
| Deal type | Gross margin range | Notes |
|---|---|---|
| Retail reroof (non-insurance) | 20-30% | Homeowner pays direct; price-shopped against 2-3 competitors |
| Insurance — initial scope | 25-35% | Xactimate-priced; consistent margin |
| Insurance — with supplements | 30-45% | Code-upgrade + missed-line supplements lift margin |
| Storm-response retail (within 48 hrs) | 30-40% | Urgency reduces price-shopping |
| Premium tier (designer shingle, metal) | +5-10% over base | Homeowners paying premium aren't shopping |
Why insurance work runs higher margin
- Xactimate scope captures code-required items. Ice-and-water shield, drip edge, ventilation upgrades — homeowners don't price-compare these line by line.
- Supplement work is carrier-priced. Items the initial scope missed (additional layers, hidden valleys, code-upgrade requirements) get supplemented at published carrier rates.
- Carrier pays — less price-sensitivity. The homeowner's deductible is the only cash they're exposed to; the rest is the carrier's check.
The trade-off: insurance work requires storm-zone presence + supplement-writing skill that takes years to develop. New contractors typically start with retail and add insurance after building scope-writing competence.
Net margin after CAC
| Acquisition channel | Effective CAC | Net margin impact |
|---|---|---|
| Storm-response mailings (within 48 hrs) | $250-$400 | 15-22% net |
| Mailed roof quotes (steady-state) | $300-$600 | 13-18% net |
| Storm-zone D2D (during 5-day window) | $300-$500 | 14-19% net |
| Warm-follow D2D (after mail) | $600-$1,200 | 10-15% net |
| Cold D2D (steady-state) | $600-$1,200 | 8-13% net |
| HomeAdvisor / Angi / Networx aggregator | $1,000-$2,000 | 4-10% net |
What drives the upper end
- In-house crews (not subbed). Subbed crews run 12-18% of project cost as overhead; in-house lifts net margin 5-8 points.
- Direct distributor relationships (GAF, Owens Corning, CertainTeed, Tamko factory-direct) save 5-10% on shingle materials.
- Supplement-writing competence. Strong supplement work lifts insurance margin 5-12 points vs basic scope.
- Neighbor follow-up automation. Same-block neighbor mailings after install convert at 6-12% vs 2-4% cold.
- Storm-response speed. Mailing the NOAA footprint within 48 hours captures urgency margin before storm-chasers saturate the market.
Target margin by year
- Year 1 (aggregator leads + retail-only): 5-10% net.
- Year 2-3 (adding mailed quotes + first insurance work): 8-14% net.
- Year 4+ (direct acquisition + insurance + in-house crews): 14-22% net.
The fastest lift to net margin is changing acquisition channels.
Free account, free rendering, $1 per mailed roof quote. Storm-response mailings return $50-$80 per $1 spent.
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