Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: What are the benefits of using Production Rates; talking with PaintScout.

Name: Painting Business Owners: What are the benefits of using Production Rates; talking with PaintScout.
Uploaded: 2023-10-31T14:50:44+00:00
Duration: 50 s
Channel: Daniel Honan
Description: In this monologue, the speaker explains how adopting time‑based or production‑rate estimating transforms a painting business. By pricing jobs based on…

31 Oct 2023 · 1 min

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In this monologue, the speaker explains how adopting time‑based or production‑rate estimating transforms a painting business. By pricing jobs based on the expected hours, executing them according to that time plan, and then comparing actual hours to the estimate, owners gain increasing confidence in their pricing. This approach also generates clear work orders that give crews a defined path to profitability, unlike square‑footage or S‑work methods that leave the route to success ambiguous. The feedback loop—testing, measuring, and adjusting—makes the estimating process more predictable, understandable, and profitable for estimators and the whole company.

Chapters

Let's talk about the benefits using the time-based or production rates. What should someone expect to see as improvements in their business? First thing you're going to see is you're going to be a lot more confident with your pricing. And the reason that that's the case is because when you use production rate estimating, it flows in this, this life cycle of the job, which is that you price based on time, do the project based on time, and that those two things, then you can test to see how you did timewise and make adjustments going back to the start. So you get more and more confident as you go, as well as when you price this way, you can deliver that work order or that information necessary to give your team the ability to know how to get to the proper destination. If you're pricing using S-work or sometimes square footage even, you don't really know the path to success in order to be profitable. You're still kind of wondering what it might be, whereas when you price on time, you know how long it should take and you price your time appropriately. You can now— if you get to that proper point where you've said this will be 40 hours, it took us 40 hours, therefore we are profitable. And that— there's a lot of power to that for your team, your company, for your estimators. The whole process becomes a lot more predictable and understandable.