If the client signs the contract a few months in advance should we collect the down payment then or should we wait to collect it until we're about to start the job? This channel has been such a huge help.
We estimate following our estimating standards. Then we pay out 50% of the job total to materials and labor. So if we bid a job for $3,000, we pay $1500 for materials and labor to the subcontractor no matter if they have 1 guy or 10 guys.
Hey Eric...your a scientist with these formulas and explain them very well to comprehend. I am doing great in sales but very hard to find quality dependable painting contractors. I see your 50% concept now. I started in Cincinnati Ohio beginning of April and plan to start another painting company in Tampa FL. The competition is fierce down there but I have you in my corner! I plan to repeat that process every 3 or 4 years.
tommy i-opener, could you use the Vietnamese business model, which is to grow your company to the size of your family (and no larger). Obviously if mom (bookkeeping, phone support, etc), dad (manager, sales, worker), and the kids (grunt workers) are the only employees in the business then that business has an incredible advantage over all others. Also I noticed that Vietnamese kids are generally highly intelligent. Here in the SF Bay Area I've noticed Cambodian's sometimes do this but it doesn't work as well because the kids end up going to med school.
great video eric!! no rush but any idea when those next 2 videos will be coming out? im super excited for those they might be the most important videos ever for me! cant wait i literally turned on notifications once its released im going to watch it 10x
Just because that expense comes out of their budget does not mean you can't control it. You can still ensure that the right products were used and the right quantities were used, not to mention it's in the subcontract agreement.
I will be glad to work for some one that pays 75/100 75 percent should be right. I do estimate myself the job's and is not fun but the workers risk they're life's out there so let's be fair
Some people DO pay 75%. They just can't ever grow a big business because you can't build a big business with only 25% remaining. On another note... If I bid a job for $3,000 and I pay you 75%, that's $2250. If I bid the job for $4500 and pay you 50%, that's also $2250. Either way you get $2250. I'm not saying to pay people less, you actually need to charge more.
I know some painting guys that say the contractor only keeps like 25% Does that sound right or is it 50/50 I'm about to get my painting license and I don't want these guys to screw me over xD
Kiingliike The 6th What I do is follow everything he says by paying 50% out to the sub but I provide the materials. This works better for the sub and i get a great quality job done at a fair price for both of us. Not to mention how satisfied our customers are at our quality of work.
joel then at first you just pay a bit more to subs, tell them to buy it save yourself time man, instead of 50% + you buy mats, just pay subs 55 or 60% tell them to do it, then use that extra time to market more or do more estimates , you gotta think like ceaser not a roman farmer
There is no "correct way". Depends on the business model and your goals. I just teach people how WE do it, because this is what is required to build a very large business.
Some painter's are stupid that's why they're giving away they're work ability to you and others that rip them of with those stupid prices. Explain how are you a millionaire and they're having hard time to pay their house payment or and bills.thoud
You don't want to know the answer to how this whole business works. You just want to argue. I'm not here to change anyone's mind about anything. I'm here to share how to build a successful company. What's ironic is I'm literally teaching those "stupid" subcontractors how to do what I do and cut me out of it. I'm literally providing the training for subs to build their own companies. This is how big companies work. The best companies provide GREAT work for people. If you are screwing people, you don't keep them around and you don't have a workforce. There are no shortcuts.
If the client signs the contract a few months in advance should we collect the down payment then or should we wait to collect it until we're about to start the job? This channel has been such a huge help.
You get a signed contract and deposit the day they say yes. That’s how they book with you and reserve a spot. It’s standard practice to do that.
@@PaintingBusinessPro Okay that makes sense 👌 I appreciate it a ton
What do you bid per sq ft?
Hi Eric,
Q: If it's a two men painting you would pay each man $ 1,500 each?
Gail
We estimate following our estimating standards. Then we pay out 50% of the job total to materials and labor. So if we bid a job for $3,000, we pay $1500 for materials and labor to the subcontractor no matter if they have 1 guy or 10 guys.
Now I got it thanks it really helps me. Sorry for offensive comments
No worries.
Hey Eric...your a scientist with these formulas and explain them very well to comprehend. I am doing great in sales but very hard to find quality dependable painting contractors. I see your 50% concept now. I started in Cincinnati Ohio beginning of April and plan to start another painting company in Tampa FL. The competition is fierce down there but I have you in my corner! I plan to repeat that process every 3 or 4 years.
tommy i-opener, could you use the Vietnamese business model, which is to grow your company to the size of your family (and no larger). Obviously if mom (bookkeeping, phone support, etc), dad (manager, sales, worker), and the kids (grunt workers) are the only employees in the business then that business has an incredible advantage over all others. Also I noticed that Vietnamese kids are generally highly intelligent. Here in the SF Bay Area I've noticed Cambodian's sometimes do this but it doesn't work as well because the kids end up going to med school.
great video eric!! no rush but any idea when those next 2 videos will be coming out? im super excited for those they might be the most important videos ever for me! cant wait i literally turned on notifications once its released im going to watch it 10x
Golden Memes how far have you gotten since we last talked?
sent you a message tommy :)
I'm going to be releasing videos on Thursday mornings this year.
Subs pay for pAINT IS A HUGE MISTAKE . yOU NEED TO CONTROL PAINT QUALITY.
Just because that expense comes out of their budget does not mean you can't control it. You can still ensure that the right products were used and the right quantities were used, not to mention it's in the subcontract agreement.
I will be glad to work for some one that pays 75/100 75 percent should be right. I do estimate myself the job's and is not fun but the workers risk they're life's out there so let's be fair
Some people DO pay 75%. They just can't ever grow a big business because you can't build a big business with only 25% remaining.
On another note... If I bid a job for $3,000 and I pay you 75%, that's $2250. If I bid the job for $4500 and pay you 50%, that's also $2250. Either way you get $2250. I'm not saying to pay people less, you actually need to charge more.
But buisnes are buisnes
I know some painting guys that say the contractor only keeps like 25%
Does that sound right or is it 50/50
I'm about to get my painting license and I don't want these guys to screw me over xD
Kiingliike The 6th
What I do is follow everything he says by paying 50% out to the sub but I provide the materials. This works better for the sub and i get a great quality job done at a fair price for both of us. Not to mention how satisfied our customers are at our quality of work.
So I keep around 30-45% profit as of now.
joel then at first you just pay a bit more to subs, tell them to buy it save yourself time man, instead of 50% + you buy mats, just pay subs 55 or 60% tell them to do it, then use that extra time to market more or do more estimates , you gotta think like ceaser not a roman farmer
There is no "correct way". Depends on the business model and your goals. I just teach people how WE do it, because this is what is required to build a very large business.
Some painter's are stupid that's why they're giving away they're work ability to you and others that rip them of with those stupid prices. Explain how are you a millionaire and they're having hard time to pay their house payment or and bills.thoud
You don't want to know the answer to how this whole business works. You just want to argue. I'm not here to change anyone's mind about anything. I'm here to share how to build a successful company.
What's ironic is I'm literally teaching those "stupid" subcontractors how to do what I do and cut me out of it. I'm literally providing the training for subs to build their own companies.
This is how big companies work. The best companies provide GREAT work for people. If you are screwing people, you don't keep them around and you don't have a workforce.
There are no shortcuts.