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I'm trying to find statistics for the return on investment for interior and exterior house painting.
ROI on house painting
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I think he is referring to "roi". My awareness of this has been raised lately thanks to Brian, but I am by no means an expert. However, I would think it depends on what your investment actually is, and seems like something that refers to different things for every business.
We had a nice thread recently that discussed return on investment for advertising, which can be a specific analysis. But to discuss it in terms of a broad topic like interior or exterior painting seems it might be a bit vague...
We had a nice thread recently that discussed return on investment for advertising, which can be a specific analysis. But to discuss it in terms of a broad topic like interior or exterior painting seems it might be a bit vague...
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http://en.wikipedia.org/wiki/Return_on_Investment
yeah...I get what Roi is, but what I'm saying is I don't think it's that high for painting, but then again it seems like it would depend on quality/what got painted/non-neutral color schemes/etc, etc...
yeah...I get what Roi is, but what I'm saying is I don't think it's that high for painting, but then again it seems like it would depend on quality/what got painted/non-neutral color schemes/etc, etc...
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We did have a thread recently, which I am sure Timhag will turn up with, that discussed profit margin. That may be helpful here.
But Rich if, as you suggest, its not that high in painting, why the heck are we here?
But Rich if, as you suggest, its not that high in painting, why the heck are we here?
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There are several on this topic... http://www.painttalk.com/showthread.php?t=1156&highlight=profit+margin
And
http://www.painttalk.com/search.php?searchid=29793
And
http://www.painttalk.com/search.php?searchid=29793
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If you bill a paintjob at $2500, will that HO get more than $2500 for the paintjob should they sell the home? I'm too new as a home owner myself to really know. This is what we're talking about right?
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Anything can happen, but I would say not likely. The fresh paint might help the place move, though.
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that's what I was saying from the beginning....are we on the same page with ROI? or am I off?
he did say ROI, return on investment (not profit like the thread Tim posted)...2 totally different things, right?
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Philly, we need you to explain what you are talking about. Little more detail.
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I posted links that discussed profit margin at V's request.
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I'm spending the evening with my wife. I'd love to write more now, but she's about to give me "the look".
Brian Phillips
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We'll need Brian to nail this for us, but I clicked the wikipedia link you provided which stated that ROI can sometimes loosely refer to profit. That made me think that the previous thread might be relevant.
If you are suggesting that because the homeowner cannot turn around and sell the house and profit from the $2500 paint job, and therefore there is poor return on investment, thats another story. I think the original thread was referring more to the P&L and Balance Sheet for our businesses concept of investment, not whether the end user of our product ends up turning a profit.
The reason I responded not likely is, say for instance, you want to sell me your truck. To prepare for the sale, you put on new tires, windshield wipers, mud flaps, all new fluids and throw down some new carpet to clean it up. You now expect me to pay for all of these things you chose to do, and probably on top of the fair market value for the truck. The sad reality is that I am going to pay you less than book value.
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I think you want to sell the ability to profit for a homeowner in case they should sell, right? The fact is - a home is in constant state of decay. If a homeowner doesn't take care of things - stuff around the home decays further - and to return the condition of the home to 'good' condition becomes exponential in cost as time goes on. Where as the diligent homeowner that budgets repairs and upkeep year in and year out over the long haul will spend less dollars and at any one point in time will not need to pay for many repairs. So in essence you have to figure out what is the minimum amount of money that you can spend year in and year out - without the repairs of a home running down a 'slippery' slope? And I believe a paint job help keeps a homeowner in 'good' territory. Take a home that doesn't get painted in say 30+ years such as my next door neighbor. The home is no longer paintable - all the trim around the windows is rotted and so are the sills. Nothing is salvageable. So now my next door neighbor has a house in tremendous decay - and would take approx. 70-110k to rip off the roof and all the siding - make structural repairs - redo the chimneys - and reside and paint home. I think 3-4 paint jobs even at 10k each, would have been far cheaper.
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By ROI this is what I meant. If a ho spends 10k painting his house, how much will that add to the price of the house if he sells it ?
My reason for wanting to know these figures is I want to build a list of reasons for potential customers on why it is a good idea to spend the money for a decent paint job.
In my opinion ho are willing to overspend on kitchen and bath remodels because statistics show that they can get 80-100% of that money back when they sell the house.
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What we really need is a Realtor or someone who sells real estate here. I recently purchased a house and with my realtor she was able to point out specific things which each specific homeowner had done to increase the value in their home for selling price. She would say well they put in a new bathroom which probably increased their value by $x amount. If you look at MLS and such, some homes like to include "fresh paint" or "new exterior paint" in their housing description. How much value is added I do not know.
But I will tell you this, I painted a home a couple years ago and he mentioned in just a friendly chit chat that by us painting his home, (which it was about a $3000 exterior job) his realtor thought it would increase their selling price by $7000. Whether or not that is total bull
I wish I knew.
But I will tell you this, I painted a home a couple years ago and he mentioned in just a friendly chit chat that by us painting his home, (which it was about a $3000 exterior job) his realtor thought it would increase their selling price by $7000. Whether or not that is total bull
I wish I knew.
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Well AMEN! I thought I was on the right track. I really like your idea of a list of reasons for customers to invest in your paintjob...actually I'm quite impressed.
I found some links to get you a bit closer...no specific painting breakdown here, but more focused on renovations in general (which you can still use in your portfolio-renovations include painting) Notice the big jump in ROI in the east and west.
http://www.forbes.com/2006/02/09/cx_sc_0210homeslide.html?thisSpeed=35000
http://finance.move.com/HomeFinance/HomeEquity/Top5HomeImp.asp?poe=homestore
http://soundmoneytips.com/article/7277-tip-on-getting-the-best-return-on-home-improvements (mentions interior and exterior painting)
http://www.remodeling.hw.net/industry-news.asp?articleID=79166§ionID=173 (good one, click the links on the page...it gets city specific)
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http://soundmoneytips.com/article/7277-tip-on-getting-the-best-return-on-home-improvements (mentions interior and exterior painting)
Paint exterior Repaint or resurface the outside walls of house, as needed. Patch and repair any damaged areas. Average Cost: $ 774 - Average Return: $2,025 - $2,527 194% - 83% of agents recommend it.
Paint interior Repair any damaged interior walls by patching all chips, holes and cracks; then touch up or repaint interior walls with neutral color. Average Cost: $ 727 - Average Return: $1,880 - $2,341 190% - 98%of agents recommend it.
This is the calculator results for my area. Although the "Average Cost" is about 1/4 of the average
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