Most painting contractors keep 40% gross profit after materials and labor. Top 20% of firms hit 50% or higher by keeping labor under 37.5% of the job price and materials under 12.5%. Where does your business land?
Are you losing money on your painting jobs? The average painting business has a gross profit of 40%. In other words, after paying for paint and painters, the average painting business has 40% of the total job price left over. Now, to break it down further, 15% of the total job price is spent on paint and supplies for the job, and the other 45% is spent on the labor for delivering the painting services. Of course, these numbers are for average painting businesses. If you want to be in the top 20% of painting businesses, you need gross profit of 50% or higher, and as a part of that, direct labor needs to be 37.5% or lower and materials 12.5% or lower. Where do you stand?
What’s REALLY Holding Your Painting Business Back? (Find Your Bottleneck in 5 Minutes)
