Inflation, the general increase in prices of goods and services over time, can have a significant impact on roofing material prices and labor costs in Calgary, as it does in any other location.
Over the past week, many distributors have advised of a price hike of 5-7% happening on April 15th 2024. In the lieu of this announcement, we have noticed that many companies are choosing to advertise an increase in their prices somewhere around the 7-10% range on the total amount.
Now, does this make any sense?
Mathematically, for examples sake, let’s assume a roof costs $10,000 and in the Calgary roofing industry about 50% of that is the cost of material. That material cost would go up from $5000 to $5250 (5% increase). But if the contractor increases their prices 5% to “reflect” this, their price would go from $10,000 to $10,500. Where does the extra $250 come from?
Ultimately, what we as a company have noticed is that in a largely unregulated industry such as Calgary roofing, there isn‘t an exact formula to the prices contractors set. However, in tough times like the ones we are going through now, it does show who has integrity and who truly is in business for the people.
As the great Michael Scott once said on The Office ; “People will never be replaced by machines. In the end, life and business are about human connections. And computers are about trying to murder you in a lake. And to me the choice is easy.” (Season 4, Episode 3)
All in all, when you choose a contractor this roofing season, it is best to make sure they truly do care. We here at Lumina Roofing & Exteriors are people in business for the people! “People, Ryan. And people will never go out of business.”
