Storm versus retail mix

Definition

The split between chasing insurance-funded storm work and steady homeowner-paid work.

Why It Matters

Storm revenue follows the weather and nothing else, so it has to be discounted heavily against the steady retail base. A roofer that looks large on a hail year can shrink hard in a calm one, and the trailing twelve months will not tell you which you are looking at. Ask for five years, and find out whether the crews and the sales team were built for the storm year, because that cost structure does not shrink as fast as the revenue.