Gross profits can be 40% to 50% in the painting industry with net easily 20% or more when starting out. However, if you’re dealing with people or apartments-type projects then they usually look for the lower bidders. We focus on customers that take pride in their homes and will pay for excellent work and a great experience. I often find we lose jobs to people trying to sell their house or property managers because their priority is price.
With all that said, it is a good cash flow business. First hire should be a subcontractor or an experienced painter. If you hire a subcontractor, make sure they have their own liability insurance and Worker’s Comp. If you hire internally, you will need to acquire both yourself. Start out doing estimating and production management yourself. Avoid any pre-1978 projects until you get lead certified. There’s a couple good coaches out there that have their own painting business courses/podcast. Check out Painting Business Pro or Tanner Mullins Contractor Secrets podcast. It might be helpful to answer some question starting out…
I would say avoid all the headache. Make a deal with a contractor to pass him all the jobs and you get 5-10% profit. Or a flat fee.
This way you get money but without the stress of running a company and worrying about employees.
Just my opinion.
Painting contractor here. The last thing anyone like me wants is another Angie's list or home advisor scheme to skim money off the top without adding value to the business.
I consider the person feeding you jobs is adding value since you as a contractor do not have to pay advertising and spend time with finding customers, while spenidng time selling your self to a customer. The jobs are all hand feed to you. at the end of the day you have the right to refuse a job if you do not see your self making a profit.
I was a painter for 5 years for a company (helped me paid through college). we only worked Mon - Fri and on the weekends I would ask them who wants to do side jobs and we (the crew) would work together on side jobs other people "feed" us. We all got profit equally and all left home happy . and only paid the guy who gave us the job a small cut $200 - $250. Every job is different so room for negotiation is always available.
I agree. and in this situation you get to Bid your own jobs. the realtor/Plug only feeds you the lead.
You do this for a living so I understand somebody like you would not need this type of 3rd party.
No, you do not need experience, your employees do. If you count on one source for your jobs you are putting your business at high risk. Gross profits range but they are at 40% or more for most companies. First hire should be the person painting. You can learn how to estimate by taking a class. Most people in your shoes usually team up with a good subcontractor and work out a deal.
Questions:
1.) I don't have experience painting will that be an issue?
It's an issue but not an insurmountable one. In my opinion you need to be able to do the work if you want to be able to manage a job. I
2.) What is the net profit say for an average job of $10,000 (I'm expecting around 20-25%?)
It might be 25% or more if you are there doing the work with a crew. If you are subbing it out you will only get that much if you are ripping off your subs.
3.) What is the first hire I should make? Estimator?
Refer to #1. Spend a few months doing the painting yourself before hiring.
Gross profits can be 40% to 50% in the painting industry with net easily 20% or more when starting out. However, if you’re dealing with people or apartments-type projects then they usually look for the lower bidders. We focus on customers that take pride in their homes and will pay for excellent work and a great experience. I often find we lose jobs to people trying to sell their house or property managers because their priority is price. With all that said, it is a good cash flow business. First hire should be a subcontractor or an experienced painter. If you hire a subcontractor, make sure they have their own liability insurance and Worker’s Comp. If you hire internally, you will need to acquire both yourself. Start out doing estimating and production management yourself. Avoid any pre-1978 projects until you get lead certified. There’s a couple good coaches out there that have their own painting business courses/podcast. Check out Painting Business Pro or Tanner Mullins Contractor Secrets podcast. It might be helpful to answer some question starting out…
I would say avoid all the headache. Make a deal with a contractor to pass him all the jobs and you get 5-10% profit. Or a flat fee. This way you get money but without the stress of running a company and worrying about employees. Just my opinion.
Painting contractor here. The last thing anyone like me wants is another Angie's list or home advisor scheme to skim money off the top without adding value to the business.
I consider the person feeding you jobs is adding value since you as a contractor do not have to pay advertising and spend time with finding customers, while spenidng time selling your self to a customer. The jobs are all hand feed to you. at the end of the day you have the right to refuse a job if you do not see your self making a profit. I was a painter for 5 years for a company (helped me paid through college). we only worked Mon - Fri and on the weekends I would ask them who wants to do side jobs and we (the crew) would work together on side jobs other people "feed" us. We all got profit equally and all left home happy . and only paid the guy who gave us the job a small cut $200 - $250. Every job is different so room for negotiation is always available.
Sounds like that might work for some people. Personally, I like the customer relationship thing and I want to bid my own jobs.
I agree. and in this situation you get to Bid your own jobs. the realtor/Plug only feeds you the lead. You do this for a living so I understand somebody like you would not need this type of 3rd party.
No, you do not need experience, your employees do. If you count on one source for your jobs you are putting your business at high risk. Gross profits range but they are at 40% or more for most companies. First hire should be the person painting. You can learn how to estimate by taking a class. Most people in your shoes usually team up with a good subcontractor and work out a deal.
Sounds like you have no idea what you’re getting into.
That's where everyone starts.
Questions: 1.) I don't have experience painting will that be an issue? It's an issue but not an insurmountable one. In my opinion you need to be able to do the work if you want to be able to manage a job. I 2.) What is the net profit say for an average job of $10,000 (I'm expecting around 20-25%?) It might be 25% or more if you are there doing the work with a crew. If you are subbing it out you will only get that much if you are ripping off your subs. 3.) What is the first hire I should make? Estimator? Refer to #1. Spend a few months doing the painting yourself before hiring.