Do not assume that your competition is slow. I see it every day, one roofing contractor is busy and the roofer down the street can barely afford to keep the lights on.
Do you know where your business stands in relation to your competition? This is an important part of your marketing strategy. You need to know who your real competition is and what share of the available work you are getting. How can you calculate your market share?
1 - One good way is to define your service area and go each month to the local building department and look at how many roofing permits were awarded for the month.
2 - Ask your roofing distributor how many jobs they shipped that month and who they shipped them to.
Compare the number jobs done to the number of jobs you did. If there were 35 jobs done in your service area and you did 2 of those jobs you can figure out your percentage of the available roofing jobs.
Here is how to figure your percentage of market share:
35 Jobs Total – You did 2 of those jobs
Divide 2 (#of jobs you did) by 35 (total # of jobs)
2 / 35 = 0.057
Take that result and multiply by 100
0.057 x 100 = 5.7%
This is your market share – 5.7%
Now you can look at this and see if that is a reasonable amount for your roofing business. It would also show that your competitors did 94.3% of the available roofs that month.
This information can help you identify missed opportunities and show who is your real competition. This is essential information for Roofing Contractors to have in this very difficult economic climate.
Part 2 will identify ways you can act on this vital information.