THR Meeting Recap
by Reese · 11 things on Twos
- Reese, Jack, Lynn, and Greg
- Michael Faul (CFO)
- Michael started off the call explaining what he was looking for with us. He stated that Angie is run by a group of IT leader ship and they are used to implementing changes and seeing results instantly. He mentioned that they have been happy with us as a partner and everything operationally as going to smooth as possible. He reassured us that he is not interested in the headaches associated with going to market for pricing. He also knows that people would try to buy the business and eventually go up in pricing. Michael acknowledges that we are in an inflationary economy right now and that cost rise across-the-board in fuel material and operational expenses.
- Greg reassures Michael that Owens corning and Deacon have done everything possible to keep Total Home Roofing at a competitive number. 
- Lynn mentions that we need to do an executive meeting to better help Angie leader ship understand the market conditions and how our financial statements do not fully speak to the degree of business that total home roofing is operating in. The executive meeting will lead to a better understanding impulse on the business.
- The removal of Owens Corning price protection leads to an increase of close to 20% across all previously protected items. These items include the shingle starter, hip and ridge shingles, and ridge vents.
- Michael spoke about how these increases have continued to push their margins lower. As they try to stay competitive within markets and has seen sales reps become disheartened and leave the company due to a lower close rate.
-  total Home Roofing is having trouble keeping bids in an accurate climate for their market as we have now sent out monthly increases the past two months. The February increase includes substantial jumps and some of their most used accessories. This leads Lynn to bring up the Ohio case with good better and best packages for their sales people. (I believe we could talk to them about Tri-Built as Michael seemed more concerned about their workmanship warranty than OC warranty)
- Pressure from their new corporate ownership has definitely pushed them to answer to the increases on material price and how they know that Beacon is offering the best deal. Dan has fought off most of the pressure but the issue still remains. Angi’s new CEO has ties to the roofing industry but doesn’t fully understand the climate. Dan and Michael are fearful of them making a high level decision without an understanding of how it can affect local markets.
-  Michael could not give us exact numbers but did mention that even an increase on rebates like we did in the sub period aren’t necessarily solutions to these problems. 
- The final ask is that we go back to lower some numbers where possible. Michael knows it will not be back to previous numbers but at least shows ANGI that we are willing to help. If OC could get us a national SAR on accessories like we previously had we could incrementally increase price and make it easier to forecast financially for Michael and their team. National SAR also gives THR pricing uniformity in all markets like they want.