The first issue if the Estimator's Journal To Be Released Soon!

Tip Of The Month - July 2008
Protect the Environment and SAVE Time/Money!
When you are bidding on exterior cleaning or stripping, save time and money while you protect the environment from hazardous materials at the same time. Power Wash your projects with Silt Fence or Landscapers Cloth and your clean-up will be fast and easy. Spread the material on the ground around your building or project, stake it into place so it will stay put.

Silt Fence or Landscapers Cloth will allow the water to pass thru and keep the paint chips on top, allowing easy clean up by sweeping, vacuuming rolling up the tarps and shaking them into a dumpster. These products are sturdy and can be reused over and over again. They are also great for covering plants and shrubs as they protect them from paint and the sun.

Tip Of The Month - June 2008
Education is the key!
It’s your job as the estimator to provide a unique solution to meet the needs of your customer’s paint project. Education is the key factor to a great estimate. Research the project, solve the problems, explain the prep work, and then introduce top products showcasing quality and durability. The estimate should be broken down into areas of need and solutions. If your response is quick your customer will know you are interested in meeting and surpassing their painting needs.

Tip Of The Month - May 2008
Green Solutions: When estimating, consider "Green" solutions! Recommending zero-VOC or low-VOC paint is a great place to start. Technology is taking paint to unimaginable heights. Have your local paint representative educate your company in the use of these new powerful products. Not only are they safer for your customers and the environment but also more durable and better for the reputation of the Painting Industry as a whole.

Tip Of The Month - April 2008
Managing Your Clientele Base - If more than one estimator is using your PEP XP Program, it is important to identify new customers and ensure that they are being serviced appropriately.

One simple way to do this is to have your estimators flag new customer contracts with an “*” and their initials before the customers last name in the job estimate. The new customer can then be easily identified in your central office as they will appear at the top of the “Customer List”. The office can then edit the customer information and track the estimate to its completion.

Tip Of The Month - March 2008
This month we address the topic of computer technology and its uses and benefits in today's competitive painting market.

Using Computer software to operate your company tightens lead times, making you more flexible, more adaptable and giving you the ability to operate more efficiently. Computers also allow your company the ability to handle E-mail and PDF Files in order to stay competitive. This expands your business revenues and gives you the ability to bid numerous jobs, track jobs, build a client database and minimize cost.

Estimating with a Tablet Computer allows the estimator to write notes out in the field or jobsite and allows the customer to sign the contract as the estimate is presented. This eliminates the need for a return visit to deliver the proposal and contract, saving gas money and time.

Tip Of The Month - February 2008
Prep Work: Surface prep is the most expensive and most important part of a proper paint job.

Check surfaces for contaminants, dirt, mildew growth, stains and chalking. Inspect and test before you estimate. Test for moisture, look for physical signs, such as water stains, peeling paint, alkali burn or efflorescence. Check for flashing, cracks or voids. Moisture needs to escape thru venting or weeping. Check for proper adhesion and flexibility.

Tip Of The Month - January 2008
Painting Sound Surfaces.

Adhesion testing is the safest way to determine a sound surface. If there are no visible signs of paint delaminating, test to assure that there isn’t poor adhesion. Perform an adhesion test by using a strong masking tape. Rub the tape on firmly and X-cut the tape with a razor blade into the substrate. Pull the tape off quickly; if nothing comes off, the surface appears to be sound. Repeat in another area as well.

The next best choice would be to use proper primers to enhance adhesion.

Tip Of The Month - December 2007
Know your BREAK-EVEN point!

Definition of Break-even: The number of hours your company needs to work at your average billing rate per hour to break even, neither making a profit nor suffering a loss.

This is the amount of sales or income it takes for you to cover both your fixed cost of doing business and your variable cost of production.

To figure your Break-even Point, again classify all expenses as either Fixed Cost or Variable Cost. Add up the total number of hours you sold for the same period of the Profit and Loss Statement you took your information from.

Take your Fixed Cost and divide it into R-V (Revenue Per Hour minus Variable Cost Per Hour) to equal Break-even Point. BE= F divided by R-V, to discover the # of hours needed to work. When you hit your Break-even Point in the hours sold at your average selling price, you have covered your operating cost. This then becomes the difference between your selling price and your cost per hour.

You can make better decisions in estimating and work smarter when you understand your true cost of being in business. 

Tip Of The Month - November 2007
Does "Profit Margin" exist? 

Where is it in the estimate?

Does it change with the seasons?

How much overhead can your contracting company support and still maintain a profitable level?

Example: If you have a set selling rate @ $45.00 per hour, to include a 20% profit, with a labor rate of $18.00 per hour.

The formula is 20% net profit of $45.00 is $9.00 per hour.

Take the $9.00 net profit; subtract from the $45.00 hourly selling price leaves $36.00 Subtract the average direct hourly rate of $18.00 from $36.00 leaves $18.00 to cover overhead.

Divide the $18.00 into $36.00 to equal 100.0 percent of labor to cover overhead expenses per hour.

When your overhead changes you need to adjust your overhead percentage.

Tip Of The Month - October 2007
I have found that the best way to bid specific objects such at doors, windows, and shudders, is by the item and not by the square or linear foot. The key to bidding by the item is to know how long it should take your company to paint one of these items or to put it another way, you must know how much money your company needs to earn while painting one of these items. Remember, your highest paid painters will usually paint a window faster than one of your lower paid employees so the time difference will equal out in the end.

With PEP, you have the choice to bid an item by the square foot, by the linear foot, by the hour, or as a set item price. Bid doors, shudders, windows and other objects as a set price to optimize your operating costs.

Tip Of The Month - September 2007
Taking pictures of the jobs that I am estimating allows me to refresh my memory while I am completing the estimate back at the office. I use a digital camera and print out only the most useful pictures. Painter’s Estimating Program, PEP, allows painters to upload pictures and place them in the proposal. Clients love to see pictures that coordinate with the estimate and it really makes the submitted proposal look professional.

Tip Of The Month - August 2007
Customers always want their decks painted or stained in the summer time. Don’t forget that the deck floor should be estimated by the square foot. However, when bidding a railing, I estimate the cost by the linear foot. 

Differentiating between surfaces that are best estimated by the square foot and others that are best estimated by the linear foot allows me to give the customer the best price while making sure I cover my operational costs. The key to a successful business, no matter what the size, is to understand the relationship between the operational costs and profit goals. 

With my Painter’s Estimating Program, PEP, I can efficiently track all of my jobs. Job tracking will show you how well you’re estimating your jobs, allowing you to give the customer the price that gets you the job while ensuring that your company makes a profit.

Tip Of The Month - July 2007
As customers are calling to have the outside of their houses painted and while you're bidding exteriors, I always find it easiest to break the job up into sections. If it is a house, I will separate it into sides. If it is a church, the steeple would be its own section.

Breaking up the project into sections allows me to focus on one area at a time and to make sure that I’m not leaving anything out that may cost more to paint than I was expecting. With my Painter’s Estimating Program, PEP, painters can create detailed proposals that can separate the proposal into sections. 

A detailed proposal allows you to explain why your bid might be higher than the rest. Customers appreciate no hidden expenses and choose the PEP proposal time and time again.