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Painting Contractor
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Discussion Starter #1
I have owned my own painting company for about a year and have always been curious if my markup is too much or too little.

Do any of you Painting Contractors use a standard markup for all your materials? Do you even add a markup for materials?

I have heard answers ranging from 10% to 100%.
 

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"Buy Quality, Cry Once"
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Humble Abode said:
I have owned my own painting company for about a year and have always been curious if my markup is too much or too little.

Do any of you Painting Contractors use a standard markup for all your materials? Do you even add a markup for materials?

I have heard answers ranging from 10% to 100%.
My matierial mark up is 25%
 

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Painting Contractor
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Discussion Starter #3
Are you basing that on something? Or is it just a number that sounds good to you? It seems fair to me but I would hate to be below or above an industry standard if one exists.
 

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"Buy Quality, Cry Once"
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Humble Abode said:
Are you basing that on something? Or is it just a number that sounds good to you? It seems fair to me but I would hate to be below or above an industry standard if one exists.
Yes, I have calculated into my projected overhead gas expense as well as van maintenance. Say job cost/matierials are $150.00 x 25%=$37.50. The average trip to the paint store I have calculated at 25 miles roundtrip at 10 MPG x $2.00 per gal :evil: = $20.00 - 37.50=17.50 for pro rated van maintenance expense and sundry items.

This is apart from the base hrly wage I tack to the job for actual driveing time, usually one hour added to estimate.

I not sure there's an "industry standard" as there are too many varibles.
 

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don, I believe that you are underestimating your vehicle expenses as I see nothing for depreciation/replacement/accident.
A very simple way to get these numbers is to look into a leased commercial vehicle. Someone else has done all of the calculations for you and made a profit. You can knock off the profit if you like but I prefer to leave it in.
 

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"Buy Quality, Cry Once"
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Teetorbilt said:
don, I believe that you are underestimating your vehicle expenses as I see nothing for depreciation/replacement/accident.
A very simple way to get these numbers is to look into a leased commercial vehicle. Someone else has done all of the calculations for you and made a profit. You can knock off the profit if you like but I prefer to leave it in.
Your right Teetor. But I can't tack that on to matierial cost, it would have to be added to each job.
 

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True trade mark up

To all those that may read this and I do not want to seem like a genius but I have even explained this to accountant's. This was actually taught to me by my dad who ran a plumbing service business. The Reeves journal which is a professional plumbing trade journal set forth mark ups and how they work...ask any CPA and they will explain it to you.....Mark up is usually based upon the sale price...gross sale price, ( I am using this to explain to another contractor is does not make money)...for example if my price to do the job is $100 and I want 10% profit and I have 15% overhead then my cost is $75.00 dollars to do the job...here is where most contractors make the fatal mistake they want 10% profit and they do it on their cost....$75.00 which is $7.50 and not $10..(they are then actually making 7 1/2% profit defined in accounting terms....) and the same for overhead...most would charge $11.25 for the over head or 15% of the $75.00 dollar cost....Standard in construction is 15% and 10% for the average joe....contracting but varies a great deal with product service etc....I charge 99 cents for a penny washer....so and thus I charge $125 for a $100 part ....it is what the market will bear, what is feasible , what are your long term goals, etc....

The mistake most people make in business is they do not have an accountant, * not a bookkeeper* tell them what they should figure...based upon historical data that is out there in the industry by the loads....seek professional advice....let the painter paint, the plumber plumb and the accountant count the beans....you won't end up like that guy with the shopping cart...my dad called him "the low bidder" there is always a low bidder and it is usually because he made a mistake....Contracting is not easy and it is not easy to make money....lots of low bidders, scammers,...not liscencesed etc.

by the way I do have a degree in accounting...but decided being a owner/plumber was better....go figure...

Jerry
 
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