Staying Afloat - Running A Painting
Business!
I was at a house the other day giving a
quote on all the ceilings in the house, it was a rare
occurrence in that another "contractor" was there at the
same time I was. The "popcorn" texture has not been painted
in over 12 years. Nicotine laden, as well as smoke damage
from the furnace. I informed the customers that the entire
ceiling would need to be sealed using "Kilz" sealer. Then
two coats of paint.
The other guy said "No, the Kilz isn't
necessary, two coats of latex will suffice" I said, "oh,
really, so the nicotine, and smoke will not bleed through
the paint?". He said "No, it will be OK". I wrote my quote
as I always do on my laptop and printed a detailed quote in
my van. I gave the quote to the homeowners, and was hired. I
asked what the other guys bid was, and they said it was 1/3
of what mine was. Nuff said.
Overhead:
As a legal contractor I have overhead that
has to be met in order to stay in business. Payroll,
liability insurance, marketing cost, fuel, an upkeep, to
name a few. Many contractors today (I use the word
contractor loosely here) cut corners, they don't carry
insurance, they pay as little tax as possible, and they use
cheap labor. If I should happen to put an extension ladder
through your window, it's covered, that should mean a lot to
most homeowners. I pay my men well, because I want to keep
top quality men working for me. Overhead is 80% of my
cost of business.
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General Liability Insurance
-
Federal/State Taxes
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Matching Social Security Tax on all
employees.
I carry a $2 million liability insurance
policy, if something should happen to your property, and it's my
fault, you are covered. When you're dealing with ladders,
pressure washers etc.. this should ease your mind a bit. I
contribute to the tax base, I pay ALL my tax liabilities as well
as complying with the law and matching my employees social
security tax.
This is all involved in being a
legit painting contractor.
Make sure when comparing bids that you ask the "hard" questions.
Do you have liability ins.? Is everything clearly defined in a
written contract? If not, why not? Are all the materials to be
used clearly defined? (the actual name brands)
Cost:
Cost isn't the same as overhead, cost involve
things like sundries that can't be attributed to a particular
job. Ladders, brushes, tape, caulk, putty, drop cloths, and the
list goes on. Cost are 15% of cost of business.
Profit:
Profit is what is left over at the end of
every job after overhead, and cost are taken care of. My average
profit on any given job is 5%.
3 types of customers:
1.The customer that understands that nothing
is free, and that if a price is too low, there's a reason for
it. This customer wants a quality job on their largest
investment, and is willing to pay a little more for the peace of
mind that Shimmerz provides.
2.The customer that understands price only. Their logic is that
the lowest price is best. period! I have been called in after
these low priced contractors have finished.
3. The "tire kicker". A customer that either wants to get 10
bids and try to decipher what's involved in all these bids. This
customer is usually not even interested in getting their project
done, they just want to know how much it would cost....just in
case.
Free quote cost:
I give free quotes as a service to my
customers. My quotes are written on a laptop and printed in the
van. They are also detailed including how much material, the
cost of the material and the labor cost. My typical commute to a
quote site is 20 miles, it takes me about an hour to look
through the job, then write the quote. I have figured that it
cost me $75.00 for every quote written, that's why I detest
"tire kickers". If I am willing to come to your home, and write
a quote, please at least be serious in your inquiry.
Last week I went to give a bid on a home. The
home was located in an upscale development in Winston. Paint was
peeling everywhere. Windows, eaves, fascia, doors, there was
flaking paint on almost every surface. Upon closer inspection I
find that none of the wood had been primed behind by the
previous contractor.
I asked if the owner still had some of the
paint used previously. He had, it was a very low end paint from
a "big box" store. All the while I'm inspecting and evaluating
the job for a quote the owner is going on and on about how bad a
job the previous contractor had done. I agree, it was a bad job.
I ask how long ago it was painted he said 2 years!! Two years,
and it looked as if it had not been painted in 10-12 years.
I asked if he remembered what the cost for the
job was. He actually still had the quote, and showed it to me. I
was floored, the last contractor did the job for less than a 1/3
of what I knew I could do it for. I asked how many quotes he had
obtained, he said 4. So, without a doubt he went with the lowest
guy, and got what he paid for.
It never ceases to amaze me that someone can
think they would get a quality job for that price. Then they
honestly wonder why the paint job barely last two years.....live
and learn I guess. Until next time, have a great day.
Employees:
In this industry employees can make or break a
company. I hold a very high standard for my employees, I want it
done right, and I want it done efficiently. I pay well above
industry standard wages, and for this I expect above industry
standard results. The paint industry tends to attract employees
from the bottom of the labor pool. Everyone thinks anyone can
sling a brush. Many contractors get fed up and just hire "bodys"
when things get busy so they can keep on schedule. I would
rather let my customers know I'm running behind schedule then to
be on schedule with a crew of incompetent employees.
So I keep sifting through employees till I
find the 1 in 5 that meets my expectations. The thing I will not
do EVER is show up on your job with folks that are not sure
which end of the brush to hold. I have two now that have been
with me for over 18 months, Over the three years I've been in
business I have gone through 20 employees to find these two.
Article Written
by Don Brabham of
Shimmerz Painting Co
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