As time goes on, prices for just about everything seem to increase, right? However, one industry that has seen a significant decline in pricing over the years is sealcoating. The average cost to sealcoat a 700 sq.ft. driveway has dropped by 45% in the last two decades. This may seem surprising, but it’s a reality many contractors are facing. Here’s why it’s happening, despite all the rising costs involved in running a sealcoating business.
Increased Costs in the Industry
Several key expenses in the sealcoating business have dramatically increased since the early 1990s:
- Labor costs have risen by 70%
- The price of sealer per gallon has surged by 115%
- Gasoline prices have climbed by 230%
- Insurance premiums have more than doubled
Fear of Losing Business
Many residential sealcoating contractors are hesitant to raise their prices because they fear losing clients to competitors who offer lower rates. Unfortunately, there’s always someone willing to cut corners and offer a cheaper price, even if it means using diluted materials or providing subpar service. Often, these low-cost contractors operate with minimal overhead and, in some cases, are not even properly licensed. Once the job is paid for, they can be difficult to reach if something goes wrong.
The Consequences of Going Cheap
The old saying “you get what you pay for” holds true in this case. Opting for the lowest price often means accepting a job that uses diluted sealer. Since sealer is water-based, adding more water reduces the cost per gallon for contractors, but it also reduces the quality of the job. The result is a shorter-lasting sealcoat that will need to be reapplied sooner.
Raising Prices for Quality Work
The cost of sealcoating has to rise for contractors to continue providing quality work. When the contractor you’ve trusted for years raises their price, understand that it’s necessary to maintain the quality and reliability of the service. Unfortunately, customer loyalty is becoming harder to find, but it’s time to start rewarding the honest contractors who are committed to doing the job right.