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House painting invoice example for Product quality

hey it's Eric with painting business pro and in this video I'm going to talk to you about how to estimate exterior paint jobs and I'm going to make it really really simple so the first thing that we're going to dive into is the goal of estimating the purpose of estimating is two things number one you price your job so that you're making the proper profit margins in this case we're aiming for 50 gross profit meaning 50 percent goes to labor and materials and 50 is left over for overhead marketing and other expenses and Profit the second goal of estimating is that it allows you to pay good money to attract good talent from the labor pool meaning good painters good subcontractors so you have great people working for you so to start let's talk about the estimating equation so there's four main things that we need to come up with our price the first is the labor cost the second is the material cost the third is the total cost and then the fourth is the markup so now let's dive a little bit deeper into the labor costs this is the first thing that we need to figure out and in order to figure out labor costs you need two things you need to be able to estimate how many hours the job is going to take you and how much you're going to pay per hour so first let's talk about how we're going to calculate how many hours are going to be on an exterior paint job there's three things we're going to break the exterior down into first prep work second body or siding stucco Etc and three trim work so first is Prep Prep is going to be the hardest one to bid because it's so different based on where you're in the country you could have a house out in Colorado that has almost no prep if it was built seven years ago and then you could have houses that are in some really tough climates that might have days of prep work included so prep work is going to be based on your experience you have to look at a house and start to Peg a number of this is how many hours of prep I'm budgeting for this house and then track those hours and then the next time you bid you're going to bid a little more accurately a little bit more accurately every single time so you need to get your own prep standards dialed in based on how long things are actually taking you in your market and then you can start to quantify those things so you can get a ballpark for prep hours if you have no Baseline at all for prep then you need to talk to someone who does whether it's one of your painters one of your subcontractor someone at the paint store Google other videos Etc where you can start to get a baseline for how long is it going to take me actually to prep this house now the second thing that we want to bid ours for is siding so that's going to be everything that's non-trim it's the body of the house so if you're spraying wood siding 200 square feet per hour what that means is we're going to Pace out the house and measure it and if this side of the house is 400 square feet I divided by 200 I'm going to bid two hours for painting the body of the house on that side of the house the way we're going to figure that out is get the total square footage divide it by 200. now when you're estimating the time for siding you're not going to take out windows take out brick and take out things you're masking because that's part of what's included in the standard of 200 square feet per hour for spring if you ask any painter or you're a painter you know that if a house is already masked you can spray way faster than 200 feet per hour you just think 200 square feet is 20 feet by 10 feet that's like 20 feet wide by a Tempo house you can spray that in like 10 or 15 minutes the rest of the time we're bidding for is the masking in prep time so that's how you come up with the hours for spring uh your siding now if you're rolling or you're doing stucco it could be 150 square feet per hour or even as low as 100 square feet per hour if it's really porous and you need to spray it and back roll it in ETC now let's look at trim so trim we're going to estimate at 40 feet per hour so if you look at a house and all the trim on it you can literally total up how many linear feet of trim on the house trim is going to be anything that is trim color so that is going to include door trim garage trim downspouts fascia and gutters window trim vertical trim and possibly even railings could be included in there you add up all the linear footage of trim and divide it by 40 and that gives you how many hours for trim so that's how we're going to come up with the hours we're literally going to bid the hours for prep we're going to bid the hours for siding and we're going to bid the hours for trim add up your total hours then how do we get the total labor cost we take the hours and we we multiply it by twenty dollars per hour to get your labor cost now I know everyone's going to say whoa Eric you can't hire painters for 20 an hour I'm not hiring painters for 20 an hour I'm bidding for 20 an hour I'm not paying 20 an hour I'm bidding for 20 an hour but all painters paint at a different speed and if you're a painter how long does it take you to paint 40 feet of trim and almost all painters are going to say hey I can paint that in less than an hour which means you're not going to make 20 an hour you're going to make more than that all right so this is just how we bid it's not how we pay we're gonna pay in other ways right now we're just talking about estimating we're going to estimate at about 20 bucks an hour and I've trained people on this across the whole country and based on these production rates of how long things take if you do it at twenty dollars an hour that's going to end up getting you sufficient margin to pay painters and good painters will make plenty of money on these standards boom now we've got our labor cost all right next up we got materials so how are you going to come up with your material cost first step is how many gallons is it going to take to paint this house and then second how much does each gallon cost me so how much each gallon costs you is depending on your rate at the paint store so you're gonna know that number so how are you going to estimate how many gallons all right first let's look at the body so for the body it's going to be the same number of gallons as you estimated hours to paint the body so if you said hey it's going to take us 12 hours to paint the body a bit about 12 gallons for trim if you said hey it's 200 square feet per hour it's about 200 square feet per gallon if you go look at most of the paint that you're using the paint score is going to recommend somewhere around 300 square feet per gallon so we're going to be estimating to put on a good thick healthy coat to cover well and deliver a good paint job and that's going to take into account when you are dividing by 100 it's taking into account the more porous surfaces where you're spraying and back rolling because you're going to use more paint so how you come up with gallons for the body is it's the same number of hours you bid to paint the body trim is going to be anywhere from 4 to 10 gallons of paint for most homes and that's just a range so if you're looking at a house you're like we don't have much trim here then maybe it's four if it's a house that you're like it's a big house we have a lot of trim air on 10 and then after you do a job see how many gallons did we actually use did I bid high or low and you'll start to tune that in all right so that's how you come up with trim and then for accents if you've got like an accent door and maybe a few other axes around the house one to two gallons for an accent is probably all you need if you're doing a lot of accidents on house maybe you need three gallons so you add up the body gallons trim gallons accent gallons that's your total gallons multiplied by your price boom now we've got your material cost for the job all right next up number three your total cost take your labor costs which you've already calculated take your material cost which you've already calculated add them together boom you've got your total cost for the job all right last step now we've got to take our markup so we've added our our material and labor costs together we have our total cost that's what it's going to cost us to produce this job for labor materials now we're going to take that we're going to multiply it by 2.4 why 2.4 because we're aiming for a 50 profit margin if all we did was double it we're not accounting for any of the other little random expenses like maybe I need a new spray tip maybe I need more on Sundries tape plastic paper caulking things like that and we're not accounting for any like additional expenses we might have but also why we multiply by 2.4 is it gives us a little extra wiggle room to provide some discounts to customers which is going to really benefit us in the marketing aspect of our business when we can do promotions and discounts and Deals and it's also going to help us in our sales process when we can offer discounts to customers for doing things in exchange for us which is going to end up being really beneficial in sales process so at our company we'll give customers discounts about two about ten percent and so that extra we've added on when we discounted by 10 we're still setting ourselves up to make a 50 profit margin after some of the extra miscellaneous expenses and after discounts so that's how you're going to come up with your price for estimating the exterior of a paint job now a few things I need to mention first of course this is a huge oversimplification of estimating next to your painting are you going to be a little bit off on the hours if you bit it just like this yes are you going to be a little off with your prep yes are you going to be a little off with your materials yes you're going to be a little high or a little low if you use this equation we just went through in this video and if you're a little higher a little low that's okay because we just bid for a 50 profit margin so if this job you're doing is going to cost you two thousand dollars and let's say you were off by a little bit that means your price is going to end up around 4 or 4200 so if you end up Low by like 600 you're still making 1600 in gross profit if you end up a little high you're making even more profit or you might lose a job so that's why I don't recommend doing it this simply and I'll get to other resources I recommend a second but that's the first thing to just acknowledge is this is really simple but if you use it it's going to get you pretty close and then you've got something to work from and start to improve on from here all right so let's just wrap this up with resources that I would recommend to take your estimating a little more detail take it to the next level so there's three different things that I'm going to recommend to you the first is we have some free estimating guides from painting business pro included in those estimating guides are some more detailed spreadsheets to fill out more detailed numbers about how you come up with your hours and how you come up with materials and we're going to give you some training videos on how to use those that are going to be a lot more in-depth in this video those are free and they're on their website and that link will be in the comments the second thing that we have to offer you is we've got a really detailed estimating training system that's going to get you incredibly accurate detailed estimates taking absolutely every everything into account and you can get your estimates put together in 10 to 15 minutes on spreadsheets it's going to create work orders for you customer invoices for you and the whole thing and it's a one-time cost from painting business pro and we'll put a link to that in the comments as well and that's going to be your Premiere like as professionals it gets estimating process the third option you have is there's a couple companies out there that provide software for doing estimates those companies are estimate rocket and paint Scout both of them provide estimating software and that's going to be at a monthly fee I don't know what their prices are but you could check those two those out as well so those are your three different options for getting much more detailed with your estimating that is what I would recommend doing whether it's the free version the painting business pro paid version or you're using an estimating software you've got a lot of options available to you but it's really important that you get your estimating consistent and accurate and profitable every single time because that's going to create the necessary foundation for your business to actually grow it to provide consistent prices to provide consistent pay and to make consistent profit while keeping great talent on your team which makes everything else easier when you're running your business so I hope you enjoyed this video if you want to dive into a little bit more detail about how to estimate paint jobs we'll have a video linked here when we release it and if you want to dive into more information about interior estimating we've got a very basic introductory video that you can click right here so that's all we've got for you today hope you hope you enjoyed this video hope it helps you and we'll see you next time [Music] foreign [Music] [Music]

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