![]() Every year.Īs you can see from the price above, the Crude oil price is now at $62.29 per barrel (as of February 19, 2018) which is $50 (FIFTY) lower than the high prices we had in 2011-2014. Rising cost of OIL, rising cost of LABOR, and this and that, and so on. But here is another “story” that we keep hearing from the manufacturers – rising costs. I get it – after all, a corporation’s main purpose is to make and increase profits. A company does not become that big by not making money. And at that time, ABC had $2 billion in sales every year. This is enough to cover costs and make a VERY good profit:ĪBC Supply’s former founder and CEO Ken Hendricks, before his death in 2007 (he died from a fall off a ladder – how ironic) had a net worth of $1.5 Billion, selling “roof shingles”. But, typical markup for distributors in ANY industry is 40% or less. I was enraged! Sure – a business needs to make money, and I have no problem with it. I noticed that right in front of me was a document that showed ALSIDE’s material cost, which was only 60% of what they charged me! Turn percentages around – that is a 67% markup on materials! Unfortunately, they no longer carry Tamko products in RI and MA, so I had to switch suppliers.īut back then, I was on good terms with my salesman, and one time he sat me down at his desk to fill out some paperwork. what they charged in 2008! Why Are Roofing Prices So High?īack in 2008, I used to buy TAMKO steel shingles from ALSIDE Supply. I know for a fact that the true cost of these products went up AT MOST at the inflation rate, but most likely much less! How do I know, you ask? One of my INDEPENDENT suppliers is charging only $10 bucks more per square of METAL shingles vs. That is more than a 50% increase in 7 years! Mind you, inflation is in theory only around 4%.
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