Painting contractors should aim for employee labor at 25-35% of job costs, materials at 10-20%, to hit a gross profit above 40%. Track these numbers closely or your margins disappear.
how I've seen the most successful painting businesses maintain their profit margins when paying painters for a job. To maintain a healthy gross profit margin, the most successful painting businesses I've worked with allocate around 25 to 35% of the job cost to employee labor, and then 30 to 40% if they use subcontractor labor. For materials, they set aside around 10 to 20% of the job cost. This works for most repaint projects and helps them maintain their profitability. By following this strategy, they achieve a gross profit of above 40%, which is above average, and ensures a thriving business. So keep a close eye on your gross profit margin, especially direct labor, as it's the most significant part of your direct costs. Monitoring your financials is key to maintaining a successful painting business.
What’s REALLY Holding Your Painting Business Back? (Find Your Bottleneck in 5 Minutes)
