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

other companies.

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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and I would love to hear from you in the comments. So I’m out, thanks!