Two painting business experts explain how to grow: charge higher margins in summer to build cash reserves for slow months, and invest in training junior staff rather than hiring expensive experienced workers. Building your team takes upfront cost but raises margins long-term.
Chapters
Make your money when you have a good season during the summer for most painting businesses. Have that extra thick margin so that maybe don't just shoot for average, shoot for well above so that when the slow season hits, it's not going to kill you.
I'm looking at your team a little bit too. Do you have a lot of rookies who are selling? Do you have a lot of rookies who are out there project managing? This might be the cost of building infrastructure because you're probably not hiring people who have been doing house painting sales for 5 years because they're hard to find and you probably don't want them working in your organization to kind of home grow that. And they may have a lower wage, so your overhead is reduced, but they also deliver a lower margin. So there's really not an easy button there. We talk about what is building a company. It's developing a team. As your team gets developed, it just performs at a higher level. As they perform at a higher level, now you get to reap the rewards of that investment, and that's through a higher gross margin.