How Profitable Is Your Painting Business?

SeanATL

I saw a similar post in the Business forum, and I was more interested in hearing from other painting companies.

What would you estimate your profit margins to be.....as a percent....net...

Meaning, after all my costs, at the end of the day, I make 20% on my jobs. This number is going to vary if you do the painting yourself. You may make 50% of you do the painting yourself.....

I know a lot of people on the board do a lot of the painting themselves, while others don't.

What is your net margin after direct costs (materials, labor) and after all overhead, but not paying yourself?

Someone spoke about the value of your business and this is what this number tells us.

Brushslingers

Hovering around 20%, on a good month closer to 30%.

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Benn

George Z

50% gross profit
About 10% net profit
Overhead includes my salary too.

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George Z

I disagree.
If you do the painting yourself you are a job cost, not profit.
Gross profit is what is left after your job costs(your field pay included)
Net profit is what is left
after overhead that includes admin salaries (yours too) and taxes are deducted from the gross profit.

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Brushslingers

I would agree with George, if I didn't count my overhead, myself, etc... my profit margins would be about 50% or more. My listed margins are paying myself, and my bills... though this last week it dropped to 15%.

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Benn

MeridianNE

and what do you belive your appraoch was when you felt you were going to make "it".

Brushslingers

My father.

Don't think i've made "it" yet.

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Benn

SeanATL

yeah, this is true.....what I was trying to do is seperate owners pay. If you do not count what you pay yourself, what is your margin......thats what I was trying to get to.

GPI

Have to agree Brushslinger, not made it, think ive lost it at times..lol

PlainPainter

Just curious - does repair bills, acquiring new vans, spray equipment, ladders, staging, planks, all come out of this measly 15% profit? Running a painting business feels like running a small enterprise sometimes. And I think 20% sounds low.

ProWallGuy

15% NET PROFIT isn't bad at all. Plainpainter, I think you need to realize that net profit is counted after taking care of:

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Brushslingers

Correct... AFTER everything is said and done, i'm paid, taxes, bills, oil changes, whathaveyou.... if I run at 20k a month the company clears 4k... which is 48k free and clear a year. Certain weeks, with certain companies... may cost you a bit more for extra touchups say... and is why my post stated last week at 15%. Not really all that measly...

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Benn

lornmastro

just curious brush what % of your business is painting and what is the rest??

Brushslingers

Lately Lorn, its 100% painting, last year was about 30% sheetrock and tile but i'm trying to shy away from the backbreakers. Finished building what I hope is my last house last month... so, we will see.

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Benn