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How to Calculate Your True Loaded Labor Rate as a Roofing Contractor (and Why Your Bids Are Wrong Until You Do)

Most roofing contractors are bidding jobs using a number that does not exist. Not the number on their invoice. Not the number their accountant uses. The number they write into estimates: the wage they pay their roofer per hour. That number is not what a roofer costs. It is what a roofer earns. There is a significant difference, and every job bid on the lower number is a job with a margin problem baked in before the first shingle goes up.

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Contractor Profit Margins by Trade: The Real Numbers for 2025

Most contractors know they should be making more money. Few know exactly how much more, or why the gap exists. Here are the real profit margin benchmarks for roofing, HVAC, plumbing, electrical and remodeling contractors, sourced from CFMA, NRCA and NAHB data through 2025.

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Why Remodeling Contractors Keep Losing Money on Jobs They Win

Most remodeling contractors are not losing money because of bad work. They are losing it because of five specific pricing mistakes that compound across every job they complete, costing the typical $1.7 million remodeling company more than $85,000 in profit every year.

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