We get emails from time to time asking “What’s the right way to estimate paint jobs?” is it by the square foot… by the hour… time and materials… By the project… what?

Did you ever see the old TV show Different Strokes, starring Gary Colman?

Well, the theme song sums it up perfect when it says: “What might be right for you, may not be right for some…”

Those lyrics apply perfect to painting contractors trying to figure out how to bid paint jobs!

Let me explain it like this:

A Large painting contractor who has three trucks, 10 employees, an offsite office/workshop, etc. can look at a paint job and bid it at $3500…

However, the painters down the street running a small “owner operator” painting business from his home, may look at that same job, and bid it at $2200…

Both paint contractors are capable of doing the work and providing a quality finished product, so which bid is the right one?

The answer is they are BOTH right!

The reason small painting business owners are able to charge less for the same work, is that their overhead is so much lower.  In the example above, the large painting contractors have a lot more expenses to cover.

Figuring out what rate you need to charge for your paint jobs comes down to…

Knowing Your Numbers

Here is a simple way to figure out YOUR numbers:

First - Calculate all of the expenses associated with running your painting business, but NOT directly related to the production of the paint job.

For Example: (Indirect Expenses)

  • Utilities
  • Your Salary
  • Insurance
  • Rent
  • Equipment
  • Phone, Office Supplies, Education, etc.

Second - Calculate your direct expenses associated with producing the actual paint job and related work…

For example:

  • Materials & Sundries
  • Employee Wages
  • Any Miscellaneous expenses

Third – Add up the total of each to get your Total Expenses and this becomes your break even revenue amount.

Fourth – Add in your % of profit (how much is up to you) to the Total Expenses.

You can add a much higher percent for profit when you understand the “Science of Selling a Paint Job.”  Learning to sell ensures that your company makes money!

Let’s take a look at an example:

Total Indirect Expenses $ 4550
Total Direct Expenses $ 3645
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Total Expenses $8195
15% PROFIT $1229.25

Total REVENUE with 15% PROFIT = $9424.25

How to Calculate Your Per Hour Selling Price

Take the number of painters and multiply it by the number of hours they will work in a month to get total man hours.

Example: You have 2 painters working 40 hours per week every month. (2 x 160 = 320 man hours)

Now take your Total Revenue and divide it by the number of man hours to get your per hour selling price.

Total REVENUE with 15% PROFIT = $9424.25 / 320 man hours = $29.45 per hour.

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Knowing your numbers is invaluable and the first step to making sure you are bidding paint jobs the right way for YOUR business.

We hope this post helps you!