Rising roofing costs eating your profits? Learn contractor strategies for protecting margins, handling price spikes, and closing deals despite material cost increases.

Last updated August 12th, 2025

By Stephanie Day

Shingle prices jumped 6–10% in the first half of 2025, due in part to new tariffs on common roofing materials like copper, steel, and aluminum. That’s on top of the price increases contractors have been absorbing for the past three years. What are you supposed to do when your suppliers keep increasing prices… and your customers still expect quotes that match what their neighbor paid last year?

The price volatility hitting roofing contractors goes beyond typical inflation. Every material category faces pressure, from oil-based asphalt shingles to tariff-impacted metal panels. Depending on the material, roofing costs have climbed 10% to 60% in recent years.

The contractors who are thriving right now have completely rethought how they quote, buy, and communicate.

Quoting strategies that protect your business

Gone are the days of honoring quotes for 60 or 90 days. Today’s successful contractors have adapted their quoting practices to match market realities.

1. Create bigger buffers

Build in 10–15% cushions into bids to cover potential material cost upticks before installation. This buffer was largely unnecessary two years ago, when prices moved predictably, but today’s volatility requires extra padding.

2. Shorten your quote validity

Rather than guarantee prices for months, consider limiting quote validity to 30 days or less. Include language like: “This quote reflects current material pricing and is valid for 30 days. After this period, we’ll need to confirm current costs before proceeding.”

3. Use escalation clauses

An escalation clause will trigger a price adjustment if material costs rise beyond a set threshold (often 5% to 10%) after signing. Your clause might read: “If material costs increase by more than 5% between contract signing and material order, the contract price will be adjusted accordingly with documentation provided.”

4. Lock in prices immediately

After winning a project, purchase critical materials immediately using client deposits if needed. This secures current pricing and protects both you and your customer from future increases.

Handling mid-project price spikes

Despite your best planning, material costs can still jump between quote and installation. Change orders aren’t uncommon—they happen on about 1 in 3 roofing jobs—but your customer may still be frustrated by the price increase. That’s understandable. But there are ways to soften the shock.

First: Prepare yourself in advance. Escalation clauses are extremely helpful in these situations, because your options directly depend on your contract terms:

With an escalation clause, document the price increase with supplier invoices.
Without an escalation clause, absorb overruns to maintain trust, if you can.

Still, extraordinary increases may require a change order.

“One of the important elements for our company is integrity. So we don’t want to hide anything from the homeowners and we want to be super transparent,” says Aleksey Krylov, owner of Stern Roofing in New Jersey.

Many contractors now share supplier memos with clients. When a shingle manufacturer announces a 6% price increase, showing that letter validates why their roofing quote is changing.

Risk mitigation strategies

Protecting your margins when material costs take wild swings requires more than hoping for the best. You need concrete strategies that work whether prices go up 5% or 15% next month. Here are four proven approaches contractors are using right now to stay profitable.

1. Strategic purchasing and supplier relationships

Contractors hedge against volatility by bulk purchasing materials when prices are favorable. Join buying groups for collective negotiating power, secure bulk rate agreements, and relationships with multiple suppliers.

2. Diversify your offerings

Add services like siding, windows, or insurance restoration work to spread risk. A broader portfolio means you’re less exposed to any one material’s cost swings.

3. Adjust your material mix

Some roofers switch to alternative brands that offer similar performance at lower cost. But never cut critical components. Skimping on underlayment or flashing voids warranties and destroys reputations.

4. Offer financing

Financing helps both contractors and homeowners manage cost uncertainty. When prices spike, offering financing through Acorn Finance helps homeowners who can’t afford to shoulder the cost increases caused by volatility.

Financing also helps bridge timing gaps. One homeowner Krylov worked with was facing a decision to replace the roof very quickly and had confidence that insurance money would come in—but because of delays, they needed to bridge several thousand dollars.

Thanks to financing, “We were able to convince the homeowner to actually move forward with a replacement project,” Krylov says. “They were willing to spend a few hundred dollars paying that interest for a few months, then they paid off the outstanding loan once the insurance money became available.” This protected their home from ongoing water damage while waiting for insurance proceeds.

When a roof replacement jumps from $12,000 to $14,000 due to material cost increases, monthly payment options keep the project moving forward. You get paid in full upfront, protecting your cash flow and eliminating the risk of further price increases during the project. Meanwhile, your customer gets the roof they need without waiting for prices that may never drop.

Sales conversations in volatile times

Your sales approach needs updating when materials cost 20% more than last year. The old playbook of competing on price won’t work when every quote triggers sticker shock.

Shift from defending your prices to educating customers about market realities to close more deals at higher margins.

Lead with market reality

When you’re first chatting with customers around the kitchen table, state upfront that roofing costs are up due to factors like oil prices and tariffs. Are you expecting another supplier increase? Let them know. This creates natural urgency without high-pressure tactics.

Focus on total cost, not just today’s price

Help homeowners see beyond the immediate price tag:

Waiting penalty: “Based on recent trends, today’s $12,000 roof replacement could easily be $13,000 in six months. By moving forward now, you’re essentially saving $1,000.”
Delayed payments: “That $2,000 repair might buy you two years, but you’ll still need the full $12,000 replacement—which could be $14,000 by then. Why pay $16,000 total when you could invest in a new roof now?”
Insurance renewals: “More insurance companies are refusing to renew policies on roofs over 20 years old. One client just lost coverage on their 22-year-old roof. A new roof protects both your home and your insurability.”

Here’s one script to combat price objections: “I understand the sticker shock. Here’s what’s happening: Asphalt shingle manufacturers raised prices 6% just last month. Waiting won’t make it cheaper. Based on the last three years, that $12,000 roof will likely cost $13,000 or more by summer.”

Provide options and solutions

When prices exceed expectations, present multiple paths forward rather than a take-it-or-leave-it quote.

“If it’s bad news, we try to give the homeowners various options,” Krylov says.

This might include showing three tiers of shingle quality with honest price-to-value comparisons, offering a partial replacement now with planned phase two next year, or explaining how financing can lock in today’s price while protecting against future increases. The key: let customers choose their solution rather than feeling cornered by costs.

Common contractor mistakes to avoid

Rising costs pressure contractors into decisions that backfire:

Eating costs to win bids. In one survey, 81% of subcontractors said high material costs hurt their business, and 57% saw profitability decline despite higher revenues. Increase your bids according to the market so that each won job doesn’t push you further into the hole.

- Cutting quality to compete. Don’t use subpar materials or omit items to lower bids. This may lead to voided warranties and damaged reputations. Customers will remember the contractors that maintained quality during tough times.

Poor communication about changes. Contractors who spring huge change orders late in the project face upset clients. Be proactive and transparent to avoid disputes when costs spiral and compassionate and understanding when customers are upset.

Preparing for continued uncertainty

Material costs won’t stabilize soon. Successful contractors accept this reality and build businesses that thrive anyway.

Monitor supplier announcements regularly. Update estimates monthly based on current costs. Communicate openly about market conditions. Maintain cash reserves for opportunities. And keep your eye out for new projects.

The bottom line: Material costs have permanently changed the roofing game. The contractors thriving despite 10% price spikes made three key moves: shortened quote windows, added escalation clauses, and offered financing to close deals at full price. Your next profitable project starts with updating that quote template today.

Today’s thriving contractors made smart choices—and many are using financing through Acorn Finance to close more deals at full price despite rising costs.