New painting contractors and sales reps often struggle with how to estimate a paint job. This guide on how to price a paint job walks you through the process in seven logical steps.
Get expert advice on measuring, calculating paint, and listing materials for each project. Plus, learn how to factor in labor and prep work.
Building in your profit margin helps you weather downtimes and lets you grow in the future. And there are tools for creating estimates, like templates and software for contractors. They offer efficiency for increased sales and improved CRM.
It all comes together when you take a methodical approach.
Step 1: Measure the Area to Be Painted
It might sound obvious, but measuring the area to be painted is a must. You may have seen veteran painters walk into a room and immediately give an estimate. But even the most experienced painter’s eye can be off.
The more you are off on an estimate, the more it will cost you. If you underbid the job, your business has to eat the cost of the extra paint.
And if you overbid it, you risk having an angry customer because of so much leftover paint. Excessively overbid a job, and the customer will simply move on to your competition.
Most contractors create a painting estimate per square foot. That’s true of writing an interior painting estimate or an exterior painting estimate.
First, use a tape or laser measure to calculate the area of walls, ceilings, and floors to be painted. It’s helpful to have a colleague with you to write down these measurements as you take them.
Then, add in trim or other features that also need paint. Be on the lookout for repairs or new surfaces that will also need a few coats. For instance, a general contractor may also be adding built-in bookshelves. Or the homeowner may plan on replacing large sections of molding.
Be sure to make adjustments for openings like windows and doors. However, you may need to include them in your trim calculations.
Step 2: Calculate Paint and Material Costs
So, you’ve got your area measured. How much paint will be needed? You need to think about questions like:
- How well will the given color cover the surface?
- Will you need to prime the surface first?
- Before priming, will you need to sand, scrape, or remove wallpaper?
Then you can figure out how many gallons of paint you need per square foot. It’s not always going to be the same. You might get away with one or two coats, the latter being the average. Or you might have to apply extra for challenging coverage or specialty paints.
You want to buy a little more paint than your estimate calls for. This is because some will naturally be lost to waste. It will wind up on brushes, pans, and rollers as you work.
Also, you want to leave a can of extra paint with the property owner at the end. That way, they have a reserve for touch-up repairs in the future.
Don’t forget to include the cost of other materials, like:
- Prep materials (sandpaper, caulk, etc.)
- Brushes, rollers, and pans
- Masking tape and drop cloths
- Ladders or scaffolding
- Gloves, goggles, and masks
- Sprayers or special application tools
Step 3: Estimate Labor Costs
The next step is to calculate your painting labor costs. The three basic pricing models are:
- Labor per square foot
- Labor by the hour
- Pricing by the total project
You might use them all in your business, depending on the job.
A simple paint job for a new great room addition might be fine to price by the square foot.
But a kitchen remodel that involves refinishing the existing cabinets? That involves much more labor to remove doors and prep the surface. Then everything has to be reassembled. So, charging by the hour makes sense.
Some customers may want to monitor every minute of your work if you’re charging by the hour. You can give them a cap for reassurance. Or use hourly calculations internally. Then create a summarized bid for the total project to present to the customer.
Don’t forget to multiply hourly rates by the number of people on your crew. Be sure to also include the true cost of labor, including payroll taxes and insurance.
How many hours will a job take? This is where your experience comes in. You have to use past jobs to estimate new ones. And you have to take into account the speed and skill level of your workers.
Some considerations to be aware of:
- Painters with less experience generally take longer to complete tasks.
- The quality of paint and materials can affect how long a job takes.
- Drying times can vary greatly between different types of paint.
- Interiors generally take 2–3 times longer because of the level of detail.
- Don’t forget to factor in setup and cleanup time in your estimate.
Step 4: Factor in Prep Work and Complexity
We mentioned prep work above, like priming and sanding. When you take your initial measurements, it’s smart to pay attention to prep as well.
Be clear with the client about prep responsibilities. You will likely be the one sanding or caulking. However, this may also fall to a general contractor or carpenter. Don’t assume either way.
Who is moving and draping furniture? Are there light fixtures or draperies that need to be removed? Area rugs to be rolled up?
What is the condition of the painting surface? This is especially important for exterior jobs. Do walls need mold removal, or does a deck need power washing prior to painting?
Job complexity is another factor in pricing. Complicated painting jobs are usually better priced by the hour. This way, you can accommodate things like:
- Exterior painting on homes higher than two stories
- Interior cathedral ceilings and double-story entryways
- Homes on an uneven grade that require special ladders or scaffolding
- Dormers, porches, etc. that increase the amount of trim work
- Complex painting schemes, such as Victorian homes with 3+ colors
You may have to wait for some surfaces to dry before you can begin the next coat or start with a new color. And when painting outdoors, you might need to factor in time lost to rainy weather.
Step 5: Add Overhead and Profit Margin
It’s not enough to merely break even on a paint job. You want to make a healthy profit on every project, right?
That’s why you build a markup and profit margin into the cost to paint a house.
Markup is the percentage you add to your job cost to give the final selling price. Your profit margin is the percentage of the customer price that is actual profit.
What’s the difference?
Your markup has to cover your overhead and other business expenses. Examples include:
- Rent and utilities on any office space
- Vehicle payments, gas, and maintenance
- Tools or equipment not bought for a specific job
- Marketing and advertising costs
- Licensing, fees, and business insurance
- Computers, mobile devices, and software
You want to include a profit on top of that so you make money on the job. That extra margin can be invested in new equipment or saved for emergencies. It can help fund your growth when you’re ready.
Sometimes the term “gross profit margin” is used. That’s your total profit percentage before you subtract overhead and job costs.
Forgetting about a profit margin is why many contractors underprice jobs. Sure, they may nab the customer with their low price. But in the end, they break even or lose money on the project.
You might be surprised to see that target profit margins for painters can be quite high. In fact, a gross margin of 50% is often recommended for sustainability and robust growth.
That’s crucial to embrace. Consider that almost a fifth of construction-related businesses fail in their first year. And more than half of contracting companies go under before their 10-year anniversary.
Step 6: Create a Clear, Professional Estimate
To get painting contracts, giving the customer a professional estimate is vital. It’s the first impression they have of your business.
As with pricing models, estimates can be done in several different ways. You may wish to break out different expenses as line items.
Another approach is to bundle pricing. How much you break down versus bundle is up to you. But your customer will have more confidence in you if you include a little itemization.
For example, you don’t have to break down every single hour of work or employee on the job. But having separate line items for labor, paint, and other supplies lets the client see the basics.
You want to balance transparency with too much detail. For this reason, build your profit into each line item. Don’t add it at the end for the customer to see.
The appearance of your estimate can influence the client’s decision. Using a painting bid template has several pluses:
- It makes your estimate look more professional and attractive.
- All your estimates look consistent to reinforce your brand image.
- You avoid costly errors by accidentally forgetting key items.
You can create your own template. But it’s easier to use one through contractor software. The platform will let you use previous templates to create future ones. So you’re not reinventing the process with every bid.
Also, contractor software lets you link estimates to lead tracking. Plus, you can connect your payment methods and other features to streamline operations. Increased efficiency means more time for the jobs that actually bring in revenue.
Step 7: Common Estimating Mistakes to Avoid
Have you been reading between the lines above? If so, you can detect some common errors to avoid when creating estimates. Let’s review a few of them:
- Guessing instead of measuring: Always measure accurately and record your measurements.
- Forgetting prep work: This can be a significant part of the job. Be sure to account for the time and materials involved.
- Underestimating labor: Be realistic about the number of people the job needs. And how many hours will each have to put in?
- Not tracking past job costs: Keeping track of past job expenses helps you create more accurate bids. You can course correct for better profits too.
Build a Repeatable Estimating System
As noted above, using repetition in creating estimates makes the task easier. That frees up your time. Accuracy and repeatability lead to greater profitability.
Smart painting contractors track their bid results. Did they get the job? What was the customer’s feedback about the estimate? They refine pricing to bring in more clients and also improve their profit margin.
Using software with a painting estimate calculator is a key tool. Not only will you get a consistent-looking template, but you’ll also improve accuracy. And you’ll have data at your fingertips to track sales and help you scale.
Ready to see what the right tools can do for your painting business? Book a demo to see a top platform in action.