Use the right tools for your painting business

Brian Phillips

I seriously doubt that any painting contractor would use a 1” sash brush to paint walls. It would be inefficient and the results would likely be less than desirable. It simply isn’t the right tool for the job.

Yet, when it comes to other aspects of their business, these same contractors often fail to use the proper tools. The result is the same as painting a room with a 1” sash brush—inefficiency and less than desirable results.

One example is accounting software, such as Quick Books. Such software, when properly used, provides a wealth of information about the finances of the business. That information does more than simply tell you your profit, it helps you make wise decisions regarding planning. And the best part is, you can accumulate years of data that is easily accessed.

Another example is web sites. I continue to be amazed at the number of contractors who do not have a web site. A web site provides 24/7 access to information about your company and is an invaluable tool in reaching potential customers. Hosting can cost less than $10 a month.

A third example is estimating software. There are an abundance of programs on the market, and while none is perfect, each provides an efficient and accurate method for pricing jobs. The savings in time is usually well worth the investment.

Using the proper tools helps you get the job done faster and with better results. Doing things the “old fashioned way” may be quaint and nostalgic, but it isn’t good business.

September 7th, 2010 | Tags: , | Category: Starting | Comments are closed

You charged too much

Brian Phillips

Occasionally a customer will complain that a job didn’t take as long as they expected it to take. They may be happy with the work, but not the time it took us to complete it. They may make noises that we should reduce the price.

The simple solution is to point out that they agreed to the price ahead of time, and that you did the work as specified in the agreement. This is certainly true, but it can also fan the fires of the customer’s discontent. After all the customer is angry.

It is often more effective to turn the tables. “Mrs. Smith, would you have been willing to pay use more money if the job had taken longer than I expected?” It is doubtful that Mrs. Smith would agree to do so.

There can be a lot of reasons why a job takes less time than a customer expects. One reason, and perhaps the most common, is that the customer simply doesn’t know. Another reason might be that we anticipated problems that did not arise. Or, perhaps we simply work more efficiently than the customer expected.

Regardless, the last thing we should be doing is reducing our price. Doing so implies that we did in fact overcharge, and that always sends the wrong message.

September 2nd, 2010 | Tags: | Category: Sales | Comments are closed

When the customer knows the price

Brian Phillips

On occasion I will have a customer who thinks they know how a job should be priced. Their comments will go something like this:

It looks like a professional could do this work in a day. So if you are paying $15 an hour, the price should be around $120 plus materials.

The first few times I heard such comments I got rather annoyed. But since then I’ve learned how to handle the situation more effectively. I now view it as a good opportunity to teach the customer a few things about business (and maybe put them in their place).

Actual labor costs are, of course, only a small part of the price. Labor burden, overhead, and profit are actually a significantly larger part of the final price (or at least they should be). While the actual numbers are none of the customer’s business, the general principles can be discussed.

I try to inject some humor into my comments. Since I am basically telling the customer that he’s a blowhard, humor can mitigate some of the harshness of my explanation. I say something like this:

I’m sure there are some people who could do the work in 8 hours. In fact, I could have one of my guys do it in less time than that. But we’d have to skip the primer and the wall repair, as those are going to require drying time. So, if we are going to do the job properly so that you will be satisfied in the end, we are going to need at least 2 trips to complete this project.

I am also sure that there are people who would work for $15 an hour, but I prefer to pay more so that I get good help. But my costs involve a lot more than just that hourly rate. There are taxes and benefits that must be paid.

Also, I need to pay the phone bill so you can call us. And I’ll need to pay the electric bill so we can operate our computer and see what we are doing.

And that lady who you said is so helpful on the phone– she likes to get paid for being so nice. Come to think of it, I like to get paid as well. So as you see, there is a lot more involved in our price than just what we pay our workers.

Sometimes the customer responds well to this, and sometimes they continue to act like a jerk. In either case, I’ve done all I can– I’ve told them the truth. If they want to believe otherwise, they probably won’t listen to anything else I have to say either.

September 1st, 2010 | Tags: , , | Category: Finance, Sales | Comments are closed
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