Mr Roofer

Clear as mud, VAT rules. Here goes. The VAT rules change each year. For domestic polyurethane foam insulation direct to the house owner we as a company have to recover 5%. For commercial installations of spray foam we have to add 17.5% VAT.

Now, to make it easy to domestic customers we always quote with the VAT included. For a commercial VAT registered business we would quote net withn the VAT to be added.

We also run domestic ‘VAT Free’ customer incentives where we quote net of 5% VAT. But we still have to account for 5% VAT to the VAT man, effectively we net the price down by dividing by 1.05 and the difference is the VAT we must account for. Effectively, the customer gets a 5% discount (the VAT they would have paid) and the taxman gets his 5% but on a reduced sum.

Polyurethane spray foam has two VAT rates, 5% for domestic, 17.5% for commercial. Clear now?

I often get a telephone call that goes like this: “Give me your best price per square metre for polyurethane spray foam”.

Well, leaving aside “best” for who, there is no one price for polyurethane foam I can quote per square metre since each job has to be priced based upon the amount of work involved to get a first rate (from the customer’s point of view) installation. The quotation has to cover all our direct costs of doing the job, contribute to running the running costs of the company else we would not have anyone here to answer the telephone, and also leave us with a profit, an acceptable return on capital invested in the business if you like. Without covering all 3 bases we would not have a successful company and we would not be here to provide a service for spray foam installing.

So, our pricing takes these points into consideration. And there is one more! We aim to be just not competitive but the most competitive installer for the simple reason we want our customers to know that they have the best deal in the UK and will therefore recommend us and consider us for more work in the future. We say, and we can say this with great confidence, we are the most competitive installer of spray foam polyurethane in the UK.

Into the pricing mix has to go application type, logistics, access, difficulty, remedial repairs required, masking off area, size, depth of foam required, type of foam required, time scale to install, etc. This does not make for one uniform square metre price for every job so the bottom line is that there is no square metre rate that will fit every job. Hence, we offer a free survey and quote for every enquiry with the addition we will still be the lowest priced installer on a like for like basis. And we guarantee this too!

Just a couple of other things. We do not take desposits, nor should you part with a deposit before having roof insulation or spray foam installed. We turn up on the day agreed so that you do not take time needlessly off work.

Location, location, location, is we all know, the only things to consider when buying a house and wanting it to be a sound investment. After location it used to be things like large garden, off road parking and garaging, luxury kitchen, good neighbours that would run through a buyer’s mind. But not any more it seems. Recent surveys conducted over 2005 reveal that these factors have now been superseded by energy efficient homes. More and more house buyers are more concerned with the energy efficiency of a home than any other factor apart from location. No longer surprising really, limiting what we contribute in green house gases seems like a good idea, it saves the world and it saves us money.

Making our homes more energy efficient by installing energy saving products like polyurethane spray foam insulation, not only helps reduce green house gases such as carbon dioxide, it also makes our homes more comfortable and, if the survey trend continues, more attractive to future buyers. Will energy efficiency supersede location when the world is about to boil over? Time will tell. But for certain, energy efficiency is high on buyers’ agendas and this will influence house prices, up for the more energy efficient home, down for those leaking green house gases all over the place.

Polyurethane spray foam roof insulation is the most effective way to reduce heating bills in both new and older homes and can save up to 70% of the heat being lost from the roof. Polyurethane is the best insulator and though still relatively unknown, Rooftherm (www.rooftherm.co.uk) urge all insulation installers to continue to educate and promote this product to their customers. Home owners will see direct and immediate benefits, a more comfortable home and lower heating costs. They will see the benefit when they come to sell their home if present trends continue. Well insulated homes will sell at a price premium as energy efficient homes rise up the buyer’s list of preferences. Touché to polyurethane spray foam.

We received this email from a customer of a competitor:

“Some help please… SOS.

I got in touch with a company and a “surveyor” came around. Pointed out that spray insulation was indeed essential, he was very convincing.

The job was to include tile straightening and foam application, and if I worked on his timescale I would get a discount….I fell hook line and sinker, and paid a deposit. This has left me with a bitter taste in the mouth.

Just the other day a technician came around to assess the job; he said that the spray would benefit my roof, but that the roof was in sound order and had had some recent attention. This has left me feeling sick (metaphorically). This job is going to cost me a lot, how much does it really cost to spray a small attic? Please offer me some advice. I also would like to know about funding help i.e. from the government. Many thanx.”

At risk of repeating myself, NEVER pay a deposit to any spray foam contractor. The weaker contractors require a deposit to buy materials and the stronger ones use the deposit to ensure you don’t cancel without losing your deposit. Be careful what you sign!

At Rooftherm we realise that the cost of having polyurethane spray foam installed is a commitment so we don’t hold customers with a deposit nor tie you up in knots with a signed contract that has lots of small print on the back. All we do is confirm in writing the work that is to be done, the price agreed and the install date. All very simple and easy for the customer who is free to cancel at any time because we do not believe that customers should have a gun to the head in the form of a deposit or signed contract.

There is also something known as “buyer’s regret” in direct sales. That is, if you have signed up to have a job done because of being emotionally induced then the chances are the following day you will regret the decision and cancel. Hence, to stop that they get you to pay a deposit, and you are more likely to if it is an emotional sale, and signed a contract with lots of small print then you feel that you cannot cancel even though you wish you could. So that leads me to my next piece of advice, never make your decision whilst the sales person ‘surveyor’ is still there. Always allow several days at least for reflection and always get 2 or 3 companies to quote. Ask what are their terms and conditions and what happens if you decide to cancel. At the end of the day you need peace of mind, an honest and fair competitive quote and a job done by a reputable company.

Now if the gentleman with the SOS had followed my advice he would have had 3 quotes, not have paid any deposit, and been very happy with his company of choice. To end the story we did in fact help him and saved him a good 1/3 off the competitor’s quote.