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Painting Business How To Tips

Painting Business Tips, Tricks and strategies for running a successful painting business. Use and Profit from nearly two decades painting skills, business and consulting experience.

Wednesday, July 30, 2008

A Simple Bidding and Estimating Technique...

I get emails all the time asking for bidding and estimating advice... Some go so far as to tell me I am selfish because I don't give away my system for free!

It's true that knowing the secrets I share in my #1 rated Bid-to-Win Estimating System will surely put you light-years ahead of other painters in the field, but they are simply too valuable to give away for free...

I busted my butt for years, working for below average pay (paying my dues and eating a lot of crow) to earn the respect of my mentor.

My neighbor runs a very successful home improvement business that currently does about a million dollars a year in business...

They focus mainly on re-models, roofing and siding as well as custom decks. His company subs out the work to local carpenters and handymen and this is how he goes about bidding jobs.

Please understand that this is NOT the best way to bid paint jobs, but it will work OK to get you started. You will not be able to grow using this method, but you will turn a profit which you can then invest into your copy of Bid-to-Win.

His bidding system works like this:

He charges $200 per day per man. So an eight hour day pays $25 an hour. Not great, but not bad either. The subcontractors don't have much in terms of overhead, there is no marketing costs or customer service to deal with. They simply go in and do their job.

Let's say there is a bathroom re-model and the estimate is for four days... Here is how he would calculate his bid:

1 subcontractor for 4 days = $800 ($200 per day)
Materials cost = $1400
Overhead expenses 20% = $440
Profit for the company 30% = $792

Total Bid for Re-Model = $3432.00

Now $200 a day is not a bad income at all - but using this method is very limiting to you! You could most likely go in and paint this bathroom in one day (walls, ceilings and trim).

My neighbor passes along all the painting leads to me and allows me to bid the jobs through my own business rather than subbing them to me through his. We have an on-going working relationship that works out great! I refer jobs to him and he does the same for me.

Using the formula I reveal in the Bid-to-Win Estimating System this job paid out like this.
  • The paint job took one complete 8 hour day and was bid at $550
  • Materials cost $102.55
  • Overhead expenses around $50
  • Total pre-tax profit $397.45 or $49.68/hour
Not bad for an easy days work! As you can see there is a BIG difference in knowing how to properly bid and estimate paint jobs, but if you are just getting started, using the method of $200/day plus materials & overhead can give you a nice starting point.

As I mentioned using the $200/day bidding method makes it very hard to grow your business because the profit margins are quite small, but on the other hand earning $1000 a week working for yourself is a lot better than earning $600 a week working for a boss!

If you are ready to go out on your own you will benefit greatly from my painting business building success systems!

The complete Bid-to-Win Estimating System is sold as a stand alone course for those of you who already have your marketing in order... BUT it is also INCLUDED in the Painting for Profits - Painting Business Building Success System as a FREE bonus...

Painting for Profits lays out 16 proven, low cost marketing tips, techniques and strategies in step-by-step detail! Painting for Profits is a complete painting business building success system which includes a quick-start guide, employee management and development system, office management system, marketing system as well as the Bid-to -Win Estimating system - all in one package!

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