When there are fewer painters in the workforce in directly effects your cash flow in your painting business. Essentially you are buying labor at a wholesale rate, and selling it at a retail rate. You want to achieve a 50% gross profit on your jobs, and a 30% cash flow to owner in your painting business.
What to do:
1. Recruit, Recruit, Recruit - The Academy for Professional Painting Contractors has multiple resources to assist. Fixing your labor problem, and hiring the additional painters can pay for itself in one week. Diversify your strategy for recruiting painters.
2. Make Sure to Job Cost Every Job - You need to be making 50% on your jobs. Track paint cost, painting supplies cost, labor cost, etc.daily. Important to have daily crew meetings to discuss staying in or under budget. Incentives for performance. Build culture of accountability.
3. Improve Your Sales Process - Increasing closing rates means you have the ability to raise your price. This also help increase your transaction amounts.
4. Pricing of Materials - The Academy for Professional Painting Contractors has created a Painter's Purchasing Group with pre-negotiated pricing.
5. Reactivate Your Past Client List - Contact them in multiple ways within 30 days. This also helps build your referral business.
6. New Recommendation for this Labor Market: Screen Your Prospects for Estimates - Focus on Higher Quality, Higher Value Estimates, when you have limited capacity. Weed out lower closing lead sources.
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