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Painting Business How to Calculate Your Selling Price


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The first thing to do is calculate your overhead. Overhead is comprised of Indirect and Direct Expenses. Keeping your eyes open and aware of these expenses are key to running your business. Your individual job expenses are something that you probably have a running total in your head at all times; but, your indirect expenses are something that you need to know, and to know how these indirect expenses relate to your hourly rate is equally important, as your direct expenses.

Direct expenses are those directly related to a job, such as labor that is associated with a job, materials for the job, supervisors pay.

Indirect Expenses are all other expenses, like office expenses, insurance, postage, electricity, rent, office help, office supplies, ladders, other tools that are used on more than one job. Accounting, Professional fees, payroll fees, your gas and truck expenses if you use the truck to go between different jobs.

If you or a super is doing multiple jobs or sales, hiring and all. It is not so critical or important to worry excessively as to which precise category one expense goes to. Just put it where it seems most related to and that is fine. worrying about which category to assign the expense to is not that important.

Such as these yearly figures as examples:
-owners salary $100,000.00
-mortgage or rent $12,000.00
-office personnel $35,000.00
-professional fees $2000.00

-health $14400.00

-general liability $2500.00
-office supplies and equipment $1200.00
-advertising $2500.00
-telephone $3600.00
-postage $12000.00
-equipment $1500.00

Total Indirect Expenses $186700.00

Direct Expenses
-wages $131520.00
-Materials $18215.00
Total Direct Expenses $149735.00
Total Indirect Expenses $186700.00

Total Expenses $336435.00
Man hours per year* example 4 men x 1644 6576 hours
Breakeven - no profit $ 51.16 per hour

Your Selling Price per hour
Breakeven plus 15% profit $ 58.83 per hour

*How many hours do your men work per year?
-per day 6.5 hours
How many days per year? 365
Weekend days - 104
Subtotal 261
Holidays 8 (for this example) - 8

Hours per day X 6.5
Total man hours worked per year per man 1644

Click Here to find out more information related to your painting business selling price per hour , your going rate.

Patrick Cavanaugh has 30 years running a successful painting business.


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