Cash to Cut

A metal roofing business was doing great at sales–almost too good. They were seven  months backed up from taking orders to putting roofs on homes. Great credit goes to them for continuing to sign people even with such a long wait list.

To help this issue, we borrowed a tactic from Uber. Uber, the taxi-like car service, had implemented a demand-pricing model in which, during peak times, the price of getting a car went up four or five times the normal rate. The customer is made aware of this in advance, clicks “get the freakin’ car anyways”,  and then the ride shows up.

We took the same model to this roofing company. Knowing that they were seven months out, which can be a deal breaker, we now offered a new opportunity. We told the client they could “cut in line” for an additional $3,000. On a roof that cost around $65,000, this was not too much more to have it finished quickly. Old customers were made aware that they may be bumped, but no more than six months out.

This was a tremendous influx of free revenue toward the company. And with the cash came many lessons.


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