Marking Up Paint to increase profits - Paint Talk - Professional Painting Contractors Forum
CLICK HERE AND JOIN OUR COMMUNITY TODAY, IT'S FREE!
Go Back   Paint Talk - Professional Painting Contractors Forum > Painting Forum > General Painting Discussion

Like Tree54Likes
Reply
 
Thread Tools Display Modes
Old 04-09-2019, 08:53 PM   #1
Junior Member
 
Join Date: Feb 2014
Location: Orange County, CA
Posts: 8
Rewards Points: 14
Thanks: 0
Thanked 1 Time in 1 Post
View IMpainting's Photo Album My Photos
Question Marking Up Paint to increase profits

How should Painting Contractors price material (paint) to their customers
1. Free- Charge for labor only
2.Wholesale, no mark up
3.Wholesale plus a __% Mark up
4.Retail: the same as what the paint store would have charge some on the street.
5.Retail plus a __% mark up6.Other way
IMpainting is offline   Reply With Quote

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. PaintTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

Sponsored Links
Advertisement
 
Old 04-09-2019, 09:04 PM   #2
Senior Member
 
Woodco's Avatar
 
Join Date: Nov 2016
Location: Austin Texas
Posts: 2,901
Rewards Points: 5,802
Thanks: 21
Thanked 456 Times in 386 Posts
View Woodco's Photo Album My Photos
Default

I dont show my clients my material cost. I add a 10-15% markup in my bid, but I dont itemize that.. I also overshoot my paint estimate, so what I dont buy is $$$!
Woodco is offline   Reply With Quote
Old 04-09-2019, 09:19 PM   #3
Junior Member
 
Join Date: Feb 2014
Location: Orange County, CA
Posts: 8
Rewards Points: 14
Thanks: 0
Thanked 1 Time in 1 Post
View IMpainting's Photo Album My Photos
Default

Woodco
Marking up paint 10-15% seams low when suppliers are offering contractor discounts between 30-40% off retail.
Should customer pay painter closer or above what they could buy it at the paint store?
IMpainting is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 04-09-2019, 09:20 PM   #4
Member
 
Join Date: Nov 2017
Location: Northeastern Ohio
Posts: 35
Rewards Points: 70
Thanks: 7
Thanked 1 Time in 1 Post
View Mace's Photo Album My Photos
Default

I myself just add an extra $5.00 per gallon of wall paint.
Works for me.
Mace is offline   Reply With Quote
Old 04-10-2019, 01:42 AM   #5
Senior Member
 
Join Date: Oct 2014
Location: Chicago suburbs
Posts: 3,235
Rewards Points: 30
Thanks: 104
Thanked 339 Times in 304 Posts
View Brushman4's Photo Album My Photos
Default

Quote:
Originally Posted by IMpainting View Post
How should Painting Contractors price material (paint) to their customers
1. Free- Charge for labor only
2.Wholesale, no mark up
3.Wholesale plus a __% Mark up
4.Retail: the same as what the paint store would have charge some on the street.
5.Retail plus a __% mark up6.Other way
#4, retail price. I'm using my time to order and pick up the paint and I will make money off of it!
Brushman4 is offline   Reply With Quote
Old 04-10-2019, 06:34 AM   #6
RePaintFlorida.com
 
Repaint Florida's Avatar
 
Join Date: May 2012
Location: Orlando, Florida
Posts: 1,763
Rewards Points: 356
Thanks: 1,948
Thanked 2,721 Times in 1,016 Posts
View Repaint Florida's Photo Album My Photos
Default

Retail ... that's the point of a business

Should you charge them labor at cost? NO

What other business sells at cost?


But Sherwin Williams is killing the trade ... paint is on "sale" 80% of the year
for the homeowner ...

That's 1 reason i don't shop SW ... they value homeowners more than contractors
rant over
Brushman4 likes this.
Repaint Florida is offline   Reply With Quote
Old 04-10-2019, 07:21 AM   #7
Senior Member
 
Join Date: Feb 2016
Posts: 271
Rewards Points: 536
Thanks: 39
Thanked 14 Times in 13 Posts
View cardgunner's Photo Album My Photos
Default

Wow. I just hand them my receipt and they pay it. I'm at the BM paint store anyways getting supplies 90% of the time. If this was my "full" time job maybe it would be different. Just seems wrong. I like my clients.
cardgunner is offline   Reply With Quote
Old 04-10-2019, 07:42 AM   #8
Senior Member
 
Woodco's Avatar
 
Join Date: Nov 2016
Location: Austin Texas
Posts: 2,901
Rewards Points: 5,802
Thanks: 21
Thanked 456 Times in 386 Posts
View Woodco's Photo Album My Photos
Default

Quote:
Originally Posted by IMpainting View Post
Woodco
Marking up paint 10-15% seams low when suppliers are offering contractor discounts between 30-40% off retail.
Should customer pay painter closer or above what they could buy it at the paint store?
You're right.. I do like to tell the potential client That i get a good deal, and pass some savings on to them, though. Subconcious sales tactic.
Gymschu likes this.
Woodco is offline   Reply With Quote
Old 04-10-2019, 08:43 AM   #9
Senior Member
 
PACman's Avatar
 
Join Date: Oct 2014
Location: North central Ohio
Posts: 11,338
Rewards Points: 158
Thanks: 2,999
Thanked 4,712 Times in 3,179 Posts
View PACman's Photo Album My Photos
Default

Let the paint stores mark the paint up. You provide a service not a "Product". And technically if you make any profit off of the paint you have to pay sales tax on your mark up. Although i've never seen anyone get caught on that. It could happen at some point.
loaded brush and Wolfgang like this.
PACman is offline   Reply With Quote
The Following 2 Users Say Thank You to PACman For This Useful Post:
RH (04-10-2019), SemiproJohn (04-10-2019)
Old 04-10-2019, 10:26 AM   #10
RH
Moderator
 
RH's Avatar
 
Join Date: Sep 2010
Location: Oregon
Posts: 19,558
Rewards Points: 126
Thanks: 11,998
Thanked 15,599 Times in 8,235 Posts
View RH's Photo Album My Photos
Default

As a reason to go with us, I offer the customer my discount on any paints, primers, stains used on a job. However, I insist on being in charge of the ordering, pick-up, and getting it to the job. I do factor in a percentage for doing all of that. I also don’t include the cost of any product in my bid (blasphemy). I tell them they will get the paint at my price but whatever the paint costs is what it is. I do, however give them an estimate (usually on the high side) so they can budget for it.

With paint prices being somewhat all over the place, this assures that I won’t be forced to eat any unexpected costs because a customer wants a higher priced used on their job. Ex., customer liked a SW color, fine; Duration at a medium price range. Then she found an accent color she liked at our new BM dealer; also fine; Aura at a considerably higher price. Makes absolutely no difference to me.
Also saves me from having to sweat out the costs for paint down the exact gallon. Sure, I could allow for a higher amount in my bid to cover my zzz, but being able to tell the customer, “We buy, and you only pay, for what is needed for your project, and whatever is left stays with you.”, has sold more jobs than I could ever remember.

Been doing it this way for the last 15 years and only had one customer ( that I know of) who balked at that arrangement. When they got my contract, they said they didn’t know the cost of the paint wasn’t in my bid, which was totally untrue - I made that abundantly clear at several points during the bid process. I suspect they ended up getting a lower bid after they agreed to go with me and used that as an excuse to “go another direction”.

Of course, there are times that circumstances dictate that the product needs to be factored into the bid, but not very often.

Okay, bring it on. I’ve heard it all before and am still convinced it’s an excellent way to conduct business - at least for me.
__________________
"If it's true that our species is alone in the universe, then I'd have to say the universe aimed rather low and settled for very little."
George Carlin
RH is offline   Reply With Quote
Old 04-10-2019, 12:48 PM   #11
Senior Member
 
Join Date: Oct 2011
Location: Canada
Posts: 2,242
Rewards Points: 824
Thanks: 660
Thanked 455 Times in 315 Posts
View jennifertemple's Photo Album My Photos
Default

QUOTE=Woodco;1646853]I dont show my clients my material cost. I add a 10-15% markup in my bid, but I dont itemize that.. I also overshoot my paint estimate, so what I dont buy is $$$![/QUOTE]

...No doubt encourages the "I'll buy my own paint" mindset on the part of HOs. Now I understand where they're coming from!

I consider the materials my advertising cost. My clients pay what I paid and I rarely over shoot amounts. In fact, I tell them they can place and pay for the order on my account and they or I can take it to the work site. This way, they are thrilled to get the paint at contractors rates and all they need to do is show my supplier the signed contract as evidence the material is for my use. They tell their friends and I get more work. I NEVER pay for direct advertising, it's always been a waste of money for me. I rely on word of mouth so I always leave my clients something to talk about.
__________________

jennifertemple is offline   Reply With Quote
Old 04-10-2019, 01:01 PM   #12
Senior Member
 
Join Date: Oct 2011
Location: Canada
Posts: 2,242
Rewards Points: 824
Thanks: 660
Thanked 455 Times in 315 Posts
View jennifertemple's Photo Album My Photos
Default

@RH You tell'em Guy! IMHO, there is no better advertising and I write the paints into the contract that they present to my supplier, he just fills the order as I wrote it. After that, I don't care who picks it up. The client or me.

There is another trick I've been known to pull: I over estimate the job 15-20% and at the end give the HO a rebate for any amount over and above what I actually wanted to make for the job. The HOs are always thrilled and I am well covered for anything that comes up!
detailssls and DittonWilson like this.
__________________

jennifertemple is offline   Reply With Quote
Old 04-10-2019, 02:08 PM   #13
Senior Member
 
Gymschu's Avatar
 
Join Date: Mar 2011
Location: Eastern Ohio (Appalachia)
Posts: 1,387
Rewards Points: 138
Thanks: 1,639
Thanked 830 Times in 457 Posts
View Gymschu's Photo Album My Photos
Default

Depends on the customer for me. If it's a regular, on-time paying customer, I generally give them MY price but I do remind them that, "It's normally $50 per gallon retail but I'm giving you my price for the paint." If it's someone new, I do tack on a small percentage for any hassles of going to and from the paint store. If it's a HIGH RISK customer, I charge full retail.
Gymschu is offline   Reply With Quote
Old 04-10-2019, 02:18 PM   #14
Senior Member
 
Pete Martin the Painter's Avatar
 
Join Date: Nov 2012
Location: Gloucester, MA
Posts: 2,204
Rewards Points: 234
Thanks: 1,521
Thanked 820 Times in 460 Posts
View Pete Martin the Painter's Photo Album My Photos
Default

They pay what I pay....unless I have to go out of my way to get the paint. Then I simply charge them the time it takes me to get the paint.

Someone told me that in Massachusetts if contractors up charge they are legally required to pay a sales take on the extra amount the customers pay. I doubt anyone has ever had to pay this tax, and there are obvious ways to claim you are not up charging, such as I noted about charging for the time to get the materials, which seems legit to me.

Sent from my SM-A600U using Tapatalk
Pete Martin the Painter is online now   Reply With Quote
Old 04-10-2019, 03:05 PM   #15
Senior Member
 
PACman's Avatar
 
Join Date: Oct 2014
Location: North central Ohio
Posts: 11,338
Rewards Points: 158
Thanks: 2,999
Thanked 4,712 Times in 3,179 Posts
View PACman's Photo Album My Photos
Default

Quote:
Originally Posted by Pete Martin the Painter View Post
They pay what I pay....unless I have to go out of my way to get the paint. Then I simply charge them the time it takes me to get the paint.

Someone told me that in Massachusetts if contractors up charge they are legally required to pay a sales take on the extra amount the customers pay. I doubt anyone has ever had to pay this tax, and there are obvious ways to claim you are not up charging, such as I noted about charging for the time to get the materials, which seems legit to me.

Sent from my SM-A600U using Tapatalk
any time you make a profit off of an actual item you are supposed to pay sales tax on it. In almost every state.
PACman is offline   Reply With Quote
Old 04-10-2019, 03:27 PM   #16
Senior Member
 
Join Date: Nov 2018
Posts: 161
Rewards Points: 102
Thanks: 1
Thanked 9 Times in 8 Posts
View BrushPro's Photo Album My Photos
Default

If I think I need 10 gal and my price per gal is 31$ before tax I just round it up to 40$/gal when I estimate. I say I think it will be $400 in paint and ***x for labour. Your final price is $4000. If I go over budget on paint I don't charge them and I don't rebate if I go under. I like fixed prices and so do a lot of clients so they know exactly what they will pay. I don't see the reason in charging retail for paint, why not just increase your rates for labor and have higher fixed prices???
BrushPro is offline   Reply With Quote
Old 04-10-2019, 05:15 PM   #17
Senior Member
 
PACman's Avatar
 
Join Date: Oct 2014
Location: North central Ohio
Posts: 11,338
Rewards Points: 158
Thanks: 2,999
Thanked 4,712 Times in 3,179 Posts
View PACman's Photo Album My Photos
Default

"stay in your lane bro, stay in your lane"
PACman is offline   Reply With Quote
Old 04-10-2019, 05:19 PM   #18
Senior Member
 
Join Date: Apr 2017
Location: usa
Posts: 2,520
Rewards Points: 128
Thanks: 169
Thanked 473 Times in 411 Posts
View cocomonkeynuts's Photo Album My Photos
Default

Quote:
Originally Posted by PACman View Post
any time you make a profit off of an actual item you are supposed to pay sales tax on it. In almost every state.

ehh I always viewed it as a service charge for physically picking up, storing & handling the paint. Come tax time that's how I would expect their accountant to enter it as well.
cocomonkeynuts is offline   Reply With Quote
Old 04-10-2019, 05:28 PM   #19
Retired Moderator
 
Wolfgang's Avatar
 
Join Date: Nov 2008
Posts: 10,324
Rewards Points: 82
Thanks: 7,495
Thanked 8,708 Times in 4,075 Posts
View Wolfgang's Photo Album My Photos
Default

Never made a dime on any paint. I always told the customer that and would actually show them the receipt if they wanted to see it. They appreciated it and it was a good selling point not to mention a good bit of information they had to possible referrals.
Wolfgang is offline   Reply With Quote
Old 04-10-2019, 05:47 PM   #20
Senior Member
 
AngieM's Avatar
 
Join Date: Apr 2016
Location: Cedar Rapids Iowa
Posts: 586
Rewards Points: 78
Thanks: 532
Thanked 226 Times in 151 Posts
View AngieM's Photo Album My Photos
Default

Quote:
Originally Posted by PACman View Post
any time you make a profit off of an actual item you are supposed to pay sales tax on it. In almost every state.
I have a sales tax exemption at SW so I itemize the actual paint usage and yes pay sales tax on it.

Sent from my moto z3 using Tapatalk
AngieM is offline   Reply With Quote
Reply

Tags
business, customers, profit

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Wood Baseball Bat Paint ctuck6 General Painting Discussion 4 12-27-2017 01:53 PM
What paint to include in my jobs? mykey General Painting Discussion 63 04-23-2017 06:00 PM
Problem with BM Waterborne Ceiling paint 508 Mml665 General Painting Discussion 21 04-17-2017 08:39 AM
Paint and primer? Shocker General Painting Discussion 1 07-08-2016 07:34 PM
Best Exterior Paint and What Type of Finish? twelvegates Surface Preparation and Application 17 06-02-2016 09:21 AM


All times are GMT -4. The time now is 07:44 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Content Relevant URLs by vBSEO 3.6.1
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
Our Pro Sites Network
ContractorTalk.com | DrywallTalk.com | ElectricianTalk.com | HVACSite.com | PlumbingZone.com | RoofingTalk.com