436: Markup vs. Margin: How to Price Roofing Jobs for Profit (with Michael Stone)

Summary / IntroMost roofing contractors think they’re making money — until they look at the numbers.In this episode, I sit down with Michael Stone, one of the most respected voices in construction financial education, to break down one of the most misunderstood topics in roofing: markup vs. margin. We explain why confusing the two destroys profit, how contractors accidentally underprice jobs, and what it really takes to price work correctly.If you want consistent profit instead of riding the gross profit roller coaster, this episode is required listening.Show NotesPricing mistakes are one of the biggest reasons roofing contractors struggle — even when sales are strong.In this episode, Dave Sullivan talks with Michael Stone about the financial fundamentals every roofing contractor must understand to stay profitable. The conversation centers on the critical difference between markup and margin, and why confusing these two concepts leads to chronic underpricing and cash flow problems.Michael explains how overhead, job costing, and pricing discipline all work together — and why “industry averages” are dangerous if you don’t know your own numbers. Dave and Michael also discuss warning signs contractors miss, how profit fade happens over time, and why many businesses look busy on the outside but are bleeding internally.This episode is about clarity. When contractors understand their numbers, they gain control — and control leads to profit, stability, and freedom.TakeawaysMarkup and margin are not the same — confusing them kills profitAccurate job costing is essential for pricing correctlyOverhead must be included in every pricing decisionGross profit should be consistent, not a guessing gameCash flow problems often start with pricing errorsKnowing your numbers gives you control and confidenceChapters00:00 – Introduction to The Roofer Show05:37 – Why Contractors Fail Financially12:37 – Understanding Markup vs. Margin18:33 – Overhead and True Job Costs30:22 – Accounting Red Flags and Embezzlement36:35 – Gross Profit Margins Explained45:51 – Job Costing and Financial Discipline55:22 – Coaching, Mentorship, and AccountabilityLinks Referenced in This Episodehttps://theroofercoach.comhttps://markupandprofit.comhttps://smasupport.ushttps://useproline.comCompanies MentionedRuby ReceptionistsSMA SupportProlineMarkup & Profit👉 Download free tools and resources attheroofercoach.com/resources