Whether you are interested in owning a painting business or buying a franchise, you probably want to know one thing. How much money do paint companies make?
The short answer is – it depends on a few factors. However, by the blog’s conclusion, you will fully understand this can be a lucrative business.
A painting business owner can expect net margins to vary between 12-30%. This is a vast swing in net profit. And about five key areas will determine which end of the spectrum you fall.
The larger the company, the smaller the margins because of additional expenses. In addition, if you know your production costs, you can estimate the jobs accurately.
But if you ask, “how much do painting companies make?” You are likely interested in owning a painting company and want to know how much money painting companies make.
The amount of money you can make in this business is well into the six figures. That’s good news! Even better, you are in control of your growth. How well you lead, plan and execute will ultimately answer how much money painting companies make.
# 1 Leadership – one person can only grow a business so far. You will eventually burn out if the company relies on you for too many roles. Leadership skills allow you to train and delegate, giving you more time to grow your business.
#2 Planning – In addition to leadership, you must plan your day. Planning allows you to put time into your day to develop your people and sales. Following a fixed schedule for at least five hrs. per day will enable you to constantly stay focused on your long-term goals.
#3 Accurate Estimating System– a profitable painting company knows how long it takes to paint everything. Whether it’s an 8′ french door, an 18-pane 6′ window, or 3-piece crown molding on a 12′, you know how long it takes to paint. You have linear ft and square foot prices for everything.
Following the three tenants listed above will generate substantial profits and income. Furthermore, you will build a business without wearing all the hats!
Without experience, you are going to make a ton of mistakes. Most mistakes cost money and can lead to a damaged reputation. Having a supportive franchisor with good systems can be excellent to the bottom line.
In addition a franchisor is going to wear some of the hats as well. These include:
Without experience, you are going to make a ton of mistakes. Most mistakes cost money and can lead to a damaged reputation.
Whether it is best to franchise or start a painting company independently is not the purpose of this blog. However, if I give you the short answer would go something like this.
For the first 2-3 years the advantage goes to the franchisee because of everything they bring to the table. Once you have closed a 1,000 jobs or so you will have a decent foundation on how to operate a successful company.
A typical independent painting company with a working owner and a 3-4 person crew can expect to make around $80,000 – $120,000 per year.
In addition, with gross sales around $500,000, the margins would be 25% – 35% depending on how involved the owner was in the actual painting.
A franchise model would likely have higher gross sales. Perhaps as high as $750,000 – $950,000 for a typical franchise in their 3rd-4th years. However, because they are not painting, they will have higher labor costs. Also, franchisees pay royalties which will reduce the margins as well. Typically one would expect the margins to be between 15-25% for a franchise under a million and less as the company grows.
We understand that buying a painting franchise takes a huge leap of faith on your part. So, we have sweetened the pot like no other painting, or handyman franchise has ever done. We have a guarantee. Our guarantee is simple. If you follow our system and do not gross $500,000 in your first 20 months, we will reimburse your franchise fee in full. For more details, please see our Guarantee.
Territory size – we have the largest territories of any painting or handyman franchise. Our territories are 2-4 times bigger than our competitors.
In addition, other major benefits include:
Having a turnkey operation allows you to immediately start growing your business.
A proper franchise allows you to skip the following costly steps:
Klappenberger & Son uses an estimating system that delivers fast and accurate prices.
Enter the measurements, and the costs automatically appear.
No prior estimating experience is necessary.
No prior sales experience is necessary.
Please sit back and download our complimentary eBook and see why Klappenberger & Son franchise is the #1 painting franchise with a GUARANTEE!
Using painting software is 1,000 times better taking a wild ass guess, but it is no substitute for experience. If you are new to the painting industry, please use estimating software.
If you invest in a painting franchise, I highly recommend that you rely on the franchisor for guidance.
A fifteen-minute phone conversation and a few pictures can
mean the difference between profit and loss.
If you are acting as a sole proprietor, ask your favorite sales rep. for assistance on complicated estimating projects
Sales reps enjoy helping contractors and may give you some
assistance on the labor and help choose the right product.
When owning a painting business, there are multiple sectors to consider, and each has different levels of profitability.
Now you can see that asking, “How much does a painting company make?” is like asking the question, “How fast can a car go?”
We need to know:
2. What are you driving? Do you want to be a sole proprietor or franchisee?
3. And what type of road do you want to take? What painting sector are you targeting? Residential? New construction, etc.?
Starting a painting business is not a good idea; if you chose to paint apartments. Labor costs will eat you alive. Most of the time, painting apartments are for Chuck & a Truck.
However, owning a painting company is much more profitable in other categories. See figure 2
How much money painting companies make ultimately depends on how they answer the above questions.
If you agree with the first part of each question, your margins will be good to excellent.
If you agree to the second part of each question, I believe you will face more challenges and lower margins.
It doesn’t mean you won’t or can’t succeed; it just tells me this is where you are, and you will likely have some additional hurdles.
Look at the figure below to see what would happen if a painting company lowered a $15,000 job by just 10%!
Reducing the cost of a $15k job by 10% lowers the price to $13.5k
As you can see labor, materials, and overhead remain the same.
The only thing that changed was the profit which decreased by $1,500.
Owning a painting company has treated my franchisees and me very well.
Robots cannot prep or paint anytime in the foreseeable future. Good.
Amazon cannot overtake the painting industry.
So far, so good.
And just about every structure in the world has some protective coating on it, so the supply of possible jobs is everywhere. Excellent!
Each year the painting industry grows by about 4%.
This is a great question. I know what you are thinking. What about all the cheap labor out there?
Is starting a Painting company a good idea if I have to compete with Chuck & a Truck?
There is an infinite amount of work available, and if some contractors want to work for less –be my guest.
Every home commercial structure built in the US needs painting at some point. Our franchisees have been able to grow regardless of the economy and charge a fair price.
Call five painting contractors and see how many answers. It is typically between 1-3 who answer. Fridays thru Monday is even worse.
Be grateful for the cheap painting contractors, for they are accepting the jobs from the customers who just want the cheapest price. Those will not be the customers you want to target. A better customer has gone with the lowest price and has regretted that choice.
In my experience, 65- 70% of customers are willing to pay a fair price for painting and handyman services.
Consider this: Paint is applied to every home and building in the United States, and the number of places to paint is staggering. If most customers are willing to pay a fair price, I believe that it makes starting a painting company a good idea.
There are plenty of roads to get to your destination; competing with the lowest price is not a route I recommend.
How much money a painting company makes is determined by how quickly the owner learns. When buying a franchise, you hopefully will have fewer mistakes because someone else has gone to the school of hard knocks for you. If you follow their system, you can expect margins of around 20%.
If you just start your own with no experience it will probably fail unless you are working in the field trying to reduce labor costs.
There are a few questions I recommend you ask yourself before exploring a painting franchise.
Will you follow the franchise model, a proven process? I understand everyone prefers to do things their way. But I have found that if you do not like to follow a strategy, you won’t. And the results not good for anyone.
If you do not think you will follow a process, I don’t recommend buying a franchise.
Do you want complete autonomy? Meaning you want to create your website, logo, all the software and systems, marketing material. If you wish to have full independence, I don’t recommend buying a franchise.
A proper franchise provides continued training, digital marketing services to assist in growing your business. However, it comes with royalties and additional fees. Will you be agreeable to paying royalties and a brand development fee? If you agree with the questions above, we would like to discuss this opportunity with you.
Example of a $3,000 painting project through a painting franchise
Owning a painting business is no different than other home service businesses. You need:
Franchises include most of these necessities in their system.
Our franchise, Klappenberger & Son, has a training program that is six weeks long. Most franchisor’s training last 1-2 weeks. Our six-week training program allows us to dive much deeper into learning how to:
In addition to learning the fundamentals of growing a successful franchise we also,
The painting and handyman industry has plenty of opportunities. It is quite possible to build a multi-million dollar company, but it takes determination and know-how. If you are new to the industry and want to start a painting business, I suggest two ways.
Start your painting business and work with a veteran painter—work side by side for a minimum of three years as if it was a mentorship.
This way, you minimize mistakes and drastically reduce labor costs. You can immediately start making decent money, but it is an impossible way to grow a business. But you will learn and earn but find it incredibly challenging to grow the business.
Investing in a franchise requires capital, but it is so much faster than a sole proprietor. Klappenberger & Son has everything in place for you. To grow a company properly, you need to have systems in place. Our franchise does, and you can be the beneficiary of our process.
How much a painting company makes is determined by who the driver is and what road (sector) they chose to go down.
Owning a painting company, I believe, is a wise decision. The industry is recession-resistant, and the competition is less than many other sectors. The painting company’s profitability is excellent as long as you follow smart business practices and have sound systems in place. Klappenberger & Son offers a complete franchise system that can help build and grow your business. Their training, estimating software, and continued support all help you get out of the starting gate quickly and grow a business that generates income and prosperity.
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