Hey what’s up guys? This is Eric with Painting Business Pro and this video I’m going to
teach you how to do estimating. So we are going to talk about how to estimate a paint
job and we’re actually not going to cover all in one video, so on this video we are
really just going to cover the fundamentals and the basics behind how to estimate correctly
and then in another video, we are going to cover specifically interior estimating and
then in another video specifically exterior estimating. So how to come up with your prices
for interior and exterior, so that’s to come a little bit later. In this video we
are going to cover the fundamentals. I’m also going to have one other video about why
you don’t need to be so worried about pricing. And the reason I want to share that with you
guys, there is nothing I get more question about than estimating, and I don’t just
get question about estimating, I get people freaking out and concern about how they are
going to come up with prices. And you really do not need to worry about your pricing; it’s
going to work itself out. That’s really one of the last things you should be worried
about if you really seriously thinking of starting a painting business. But I see a
lot of people not starting a painting company just because they are worried about their
pricing and it’s crazy, but that’s for another video.
Okay, so there is a couple things you want understand about estimating. The first thing
you need to know, it’s not going to be exactly correct every single time and your going to
kind of roughly get in the ball park and that’s going to be okay. However, it is kind of a
scientific approach where we do want to get specific measurements and be as accurate as
we can, just to make sure that we are not over estimating anything and not under estimating
things. So we are going to get to some of those specific standards in some of the other
videos, but for now we are just going to look at some of the basic.
So there is a couple of things you need to start with, before you come up with pricing.
The first thing you need to know is what is your margin? By knowing what your margin is,
that’s going to tell you how much you need to mark-up your cost because how we are going
to come up with our price, is first we need to figure out how much it’s going to cost
us to spruce that job and then we are going to add in our margin.
If you are running a very small business and you’re the only person doing the marketing
and the sales and then you have a subcontractor doing the job. Well your margin may only needs
to be thirty percent then; you know that’s you know paying yourself thirty percent for
the sales and the marketing, you know all that. You know that’s probably what I was
at when I first started, and then I raise my prices very shortly after, but that’s
probably what I was pricing when I first started. That’s also kind of going to be the pricing
that you’re going to do, if you’re looking at doing commercial type of jobs or bigger
projects like $10,000 to $30,000 in a size projects, because the margin is just going
to be slimmer on those jobs.
So first you need to know what your margin is, for Foothill Painting we do fifty percent
as I have share in other videos. So what that means is if it cost us $1,500 to produce this
job, we are going to charge the customer about $3,000. So you need to know kind of what your
mark-up is first, because at fifty percent you should fall right in the ball park with
Here is how we actually come up with our pricing; there are few things that we need to know.
First we need to know how many hours the job is going to take, we need to know how much
we are going to pay our employees per hours, we need to know how much our materials is
going to cost and we need to know how much materials we are going to need. So these are
the four things we need to figure out the cost. Alright for dollars per hour, we are
going to go with twenty is good; $20 per an hour is pretty standard you can go with.
Materials, you’re just going to have to check with the paint store and how much your
material cost, you can get gallons of pain from 16 bucks, all the way from up like $50
or $60 a gallon. Check with your paint store and see what paint you’re going to using,
you probably want to aim for paint that’s in the $20 to $30 range. So our paint is anywhere
from $21 a gallon to $29 a gallon and we let the customer pick which type of paint they
want. Let say in this example we are going to with $21 per gallon paint as they are trying
to, you know save money.
So now all we have to figure out, we have to figure out the number of materials, so
how many gallons of paint we need and then we need to figure out the hours, now that’s
what I’m going to go into in another video. I’m going to kind of give you some short
cuts, you know to figuring that out. So here is the short cut, for exterior painting, there
is linear feet. So that’s like trim boards right, trim board is like a long linear feet,
like maybe a two story home has a trim board running up the whole corner, that’s like
twenty linear feet of trim board.
So there is linear feet and then there is square feet. Linear feet about one hour per
forty, okay, so forty linear feet for an hour of painting, so we are going to assume that
you know for trim forty feet per hour for the body of the house or the eves of the house,
we are going to say two hundred and that’s before spraying the house. If you’re rolling
the house, we are going to do one hundred and fifty. So what that means, if you have
a two thousand square foot house, that right there is going to be ten hours and then if
you have four hundred you know feet of trim on that house, that’s going to be another
ten hours. So we got this as a twenty hour job.
Those are kind of typical standards and we are going break those down in the exterior
estimating videos to exactly what those standard are going to be, more specifically but that’s
what they really all boil down to, that’s the square foot, that’s the linear feet.
And then we also have prep work, so you do need to estimate hours for the prep work depending
on where you work. Different areas in different country have different amount of prep works.
So in Colorado for example we have very little prep work, out of the east coast you have
tons and tons of prep work. So you’re going to need to figure out the hours of prep work
kind of on your own out there, you know and I would talk with the paint store, I would
you know, I would ask around and maybe talk to with your subcontractors and things like
that. You will be able to figure out how much at times to bunch on prep work and we will
get more of that in the exterior estimating video. Interior, I’m actually not going
to get into the interior; we will just kind of cover that in the next video.
So now where we at? We got our total hours figure out, we have twenty hours we are going
to say, twenty hours at $20 per hour, okay so that’s going to be $400, that’s how
much our labor is going to cost us on this job. And then you know let’s say the gallons
of paints, which again we are going to get into that in the other videos. But let’s
say for this job, we actually needed twelve gallons of paints which is actually going
to be pretty accurate for this. So twelve gallons of paint times twenty-one per gallon,
what is that? That’s going to be two hundred and fifty-two, alright so it’s two hundred
and fifty-two. So now we are going to come up with our total cost of $652, okay so now
here is the last part, now you’re going to mark this up, that’s how much it’s
going to cost you, so that’s how your margin comes into play.
So what we do? For oil paintings we take a cost which is 652 and we divide it by point
4, so what we are going to come up with in this example is about sixteen hundred. Alright,
so that’s our price and then we actually give our customers ten percent-up to ten percent
off and we almost give them that discount, so this job we are actually ending up pricing
for about $1,440 is our final price on that job.
It’s going to cost us, we are going to paint $720 to produce the job instead of $652 because
there is always a little bit of wiggle room there, so that’s how we come up with our
pricing for about fifty percent mark-up. So we actually mark it up by two hundred and
fifty percent, we just don’t double it, we double plus sum and then we take a discount
off because there are some other miscellaneous accounts we account for next. For all estimating
purposes you need figure out the number of hours, the number of gallon of paint, come
up with your total cost and then basically double it and that’s going to be a good
effect of pricing strategy.
So in the next videos in exterior bidding, and how to bid interior, we are going to talk
specifically about what those standards are, so you can accurately come up with the hours
and the number of gallons that you are going to need to coat a job properly. So look out
for those in the next videos, if you haven’t already subscribe to my YouTube channel, go
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