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Painting Business Owners: Learn how to use production rates to price your projects.

Name: Painting Business Owners: Learn how to use production rates to price your projects.
Uploaded: 2024-01-18T15:15:53+00:00
Duration: 43 s
Channel: Daniel Honan
Description: In this instructional segment, the speaker outlines a systematic approach for painting contractors to estimate and price projects using production rates…

18 Jan 2024 · 1 min

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In this instructional segment, the speaker outlines a systematic approach for painting contractors to estimate and price projects using production rates. Production rates represent the time required to paint specific surfaces (e.g., linear feet of railing, square feet of siding). The process involves measuring the surface area, applying the appropriate production rate to calculate total labor hours, and then multiplying those hours by the fully burdened labor cost. The speaker advises contractors to reference the Painter Contractors Association (PCA) Estimating Guide for standard production rates when they lack their own data. Finally, a pricing guideline is provided: aim for at least a 50% gross profit margin on each job.

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kind of the industry standard is using production rates to generate your estimates. Production rates is basically how long does it take to paint a particular surface in terms of hours. Basically measure the surface, then calculate what is the production rate. How long will it take to paint 10 linear feet of railing or 100 square foot of siding? Then you use that production rate to add up how many hours it's going to take, multiply by your labor cost, the full burden. Production rate's definitely something to look at. Look at PCA's, Painter Contractors Association's, estimating guide. If you don't know your own production rates, maybe look at their estimating Painting Guide, they have a bunch of recommended production rates for how long it takes the average painter to paint a lot of different surfaces. That's the pricing. You want to make sure you're pricing at least for a 50% gross profit margin.