Paul is our production manager. He's 25 years old and will oversee the painting of 400 homes this year, for over one million in revenue.
For 90% of those homes, he will never even step on their property. He rarely visits job sites. He never paints. And we never get bad reviews.
Our contractors love working for us. We have about 8-12 sub-contractors working for us at any given time, which provides work for 20-30 people throughout the year.
Some of the contractors that work with us are “one-man” crews – they do all the painting themselves. These “one-man” crews finish 1-2 jobs per week for us and can make up to $2,000 per week.
We have another contractor that has 12-15 painters working for him. He does 7-10 jobs per week for us and he doesn't paint himself, just manages his crews.
… And we have the in between contractors who do some painting and have small crews that help them.
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Once you have a reliable sub, you shouldn't ever go to the job site.
Paul meets our subs once a week and gives them all the jobs they are going to do that week. He lets the clients know when the painters will arrive and he tells the painters when to start. They show up, they paint the house, they collect the check. Then they meet with Paul and give Paul the customers payment, and Paul pays the sub.
That's how our whole production process works.
Answer: Fairly. We pay our subs 50% of the total price. But if our prices were lower, we couldn't do that. For example, we bid a house for $3,000. We pay the sub $1,500. If we bid that same house for $2,500 we would have to still pay $1,500.
So the percentage is not the key here. The total amount is the key.
But you CAN charge double what you have to pay a sub. When I started my business, I was paying my subs 70% of the job so I could have lower prices and be more competitive. As my company grew, I got more references and credibility. Then I started to raise prices, and I paid my subs 65%, then 60%, then 55%, and now we are down to 50%.
Not because we pay our subs less money, but because we charge more for the work we do. And we can charge more because we are a bigger company, customers know us, and are willing to pay more for a large reputable company.
See... when you have great contractors who are great painters, then all you need to learn how to do is sell paint jobs. That's what we're best at. See how painters have grown their business through Painting Business Pro.
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