How We Subcontract Over $17M in Painting Per Year

[@DavidGurrney7589]

His advice can't be broken but reality is it takes a VERY VERY LONG TIME to get to that level!!! To get anyone to do good work and be reliable and treat your customers like their own is extremely difficult in this day and age!!! Ask me how I know 😢😢😢

[@maxsolorio2329]

Yes, I agree… don’t get me wrong he is giving amazing advice but I just think people don’t realize how difficult this really is, in my area I have had problems where I’ll hire a sub contractor under a contract and everything and would try to take my costumer away

[@Drew_Warner]

I manage a 3 million dollar a year painting company with over 500 5 star google reviews, and we have 40 quality subs that we can use at any time. We meet with 5 new crews a week, and met with 360 crews last year. Just gotta put the effort in.

[@alfonsomorteo1740]

@@Drew_Warner Hi Drew! just saw your comment here i wanted to ask if you have any advice on what to include in the contract. Thank you

[@J7C3B]

How do you know?

[@digitaldanny7752]

I disagree . It’s easier to get in this way and then build your own infrastructure with actual w2 employees

[@backtoconstitution1]

I had 2 clients last year in Denver NOT go with us (very rare) because we used some subs, they were scared off by a competitor whom told them employees are insured but subs are not. My subs are all insured.

[@PaintingBusinessPro]

That concern should be something you can effectively handle in the sales process, but even if you did lose a couple jobs it’s totally worth all of the benefits.

[@backtoconstitution1]

@@PaintingBusinessPro are you open to hands on consult and provide feedback on a painting and drywall company for a fee? We grew too fast and things are getting out of hand

[@ChristianWood28]

@@backtoconstitution1what a blessing ✨

[@djfeenixtulsa]

Just watched the breakthrough academy interview 😳. Can't wait!!

[@PaintingBusinessPro]

Awesome 💪

[@davidc3207]

Great video! What percentage of the job do give to the subcontractors I have growing painting business and definitely want to start subcontractoring more jobs out

[@PaintingBusinessPro]

A good rule of thumb is 50% for labor and materials. But you need to be charging enough on your price to the customer so that 50% is an attractive dollar amount. And you need it to be 50% to have the extra margin to grow your business and earn a profit after all the other expenses.

[@mcarbajl]

Any advice on subcontracting for property management in NYC

[@petersonlovinskyojean7024]

Should I have subcontractors on the side before finding my first work or do I hire them after finding work.

[@PaintingBusinessPro]

Find the work then find the crews. They aren’t all that interested in talking to you unless you have work for them asap

[@mitchelljohnston3532]

Hey ! If you don't mind me asking. What does a typical compensation structure look like for a subcontractor ?

[@PaintingBusinessPro]

Pay them 50% for the job. That covers labor and materials

[@haroldsalcido7735]

So when you say you pay them well. I guess your giving them a flat rate for the job. What would be a good pay per Hour to get to that flat rate? Just wondering. $40 or 45?

[@PaintingBusinessPro]

It depends on how efficiently they paint. The answer to your question is basically a ‘how to estimate’ question. I would check out those videos for at least the fundamentals.

[@haroldsalcido7735]

​@@PaintingBusinessProok, thanks. I will check them out.

[@haroldsalcido7735]

​@PaintingBusinessPro I checked out a couple videos. You mentioned in one $20 an hour to a fast Painter at a flat rate he can make $30 an hour. Maybe maybe not. Depends on prep work. Also, wether he paints slow or fast he still only gets a flat rate. So haven't heard what would be a good rate for subcontractor.

[@tonikleo7626]

Sub usually works per job not per hour. 60/40

[@hattrick257]

@@haroldsalcido7735you estimate hours in jobs at 20-30 per hour, however it’s an estimation. A good subcontractor gets things done efficiently and under the time you estimate. This making more than 30 an hour, also they pay their guys less than that. So it all balances out.

[@jhill6033]

So I was a sub-contractor for years and I went to the Auto industry for 11 years and I'm breaking from that to contract apartment painting, flooring and resurfacing. I have a couple of guys that worked on my investment properties that I'm working with now. You been doing this a long time, but it sounds like you have employee's vs subcontractors? Do you require them to carry their own insurance? I would much rather 1099 these guys than have employees, I understand its a fine line, has the IRS ever challenged you?

I'm following your model and got my LLC and EIN, but I'm having issues finding an insurance provider that covers 100% of the work being done by subs. Do you have any input on that?

[@PaintingBusinessPro]

Shoot me an email for a referral. [e-mail]

[@robertsugarland]

Great video, so we first look for subcontractors and then go looking for clients? what if we find a client first but havent looked for subcontractors yet?

[@jakubchase4821]

Pretend you are busy and always schedule min 1 month ahead. Better to do the job you promised than to commit without a way of fulfilling the contract.

[@fortheculture718]

@@jakubchase4821golden reply thank you I had the same question

[@andresgarzondiaz436]

How do find the contacts ?

[@keennanvisga4133]

Do you always give them a price, based on a percentage of your estimate?

[@PaintingBusinessPro]

I don’t know what you mean. We price the job according to estimating process and give them a price.

[@dainturner6183]

As an estimator for 8 years, more and more I have people asking me if we have workers comp on our guys. If you're using subcontractors, how do you get around this? A homeowner hiring a painting company that uses subcontractors doesn't realize that they (the homeowner) have now become the employer, and are liable if anyone gets hurt on the job. And no, homeowners insurance does not cover on this type situation.

[@RobinSingh13261]

Waiting for response. Great question

[@PaintingBusinessPro]

It varies state to state. There are always ways to make sure that you and the customer are protected. Some states you have to get more creative than others. I would definitely make sure to set it up right.

[@danielsullivan7381]

Not really satisfied with that answer from painting business pros. Here’s the tough part. If a subcontractor is gonna have Worker’s Comp. and all his guys he’s not gonna be at a price it where you as a contractor can make money off him. I’ve been in this game a long time. They have a lot of good stuff on here but the bottom line is it’s a ton of work to have a profitable business on any sort of scale. It is your main thing in life.

[@danielsullivan7381]

Running a painting, business or any other business on any type of scale is super stressful and frustrated. That’s why these guys are selling courses, etc. Because the guy that made it painting big time realized how hard it was and the easiest way to make money is it sell people the way to make money.nothing against painting business pros but come on man. If we’re easy, they would just keep doing it and not worry about selling courses etc..

[@FishingVirgin]

Thanks for the breakdown

[@neilmerlino6475]

Very good info.👍👍👍

[@PaintingBusinessPro]

💪

[@jaimecampos1262]

Thank you for the advice!

[@joeyoakland]

Love this video, your easy to understand ❤

[@PaintingBusinessPro]

🙏

[@Joseph_piazza]

Brother do you have any examples of some contracts for subs?

[@PaintingBusinessPro]

Shoot me an email. [e-mail]

[@ThePaintlyCompany]

"The way the partnership gets stronger is WHEN there's problems" ... this is gold Eric, thanks for these great videos!

[@PaintingBusinessPro]

👍

[@macraeolinger]

THIS IS GOLD!!!!

[@PaintingBusinessPro]

Ya!

[@age_of_reason]

I'm assuming you need their ss # to hire them as subs?

[@franciscoblanco10]

My understanding here in california is this: If you hire a sub, you still need to make a contract and they need to provide you with their,, EIN, General Liability, if they're going to have workers doing the job, they need to have workers compensation in case something happens. A sub that has everything won't be cheap. That's my opinion but I would like to learn more about this. Thanks !!😊

[@PaintingBusinessPro]

Subcontracting should always be subcontracted to a business, not an individual. So you would have them fill out a W9 form, a contract for working with you, and collect their insurance and in some cases workers comp or license. At years end you issue them a 1099 (accountant does this).

[@baloneynoodles2.0]

So do you think this will.or won't work in California

[@kalebbillig3472]

Painting business pro would be an amazing acquisition if you ever want to sell it, lmk!

[@masonaguirre4064]

great video

[@Nottoday3033]

Can I make my subs use “MY” shirts? Can I put that in the contract? Or by using my company shirts does that make them employees? 🤷🏻‍♂️

[@PaintingBusinessPro]

It's a little bit of a gray area. We just make sure to provide them with really nice and comfortable stuff. And since they love us, they wear our stuff.

[@Nottoday3033]

@@PaintingBusinessPro gotcha. Also, I live in a 90% residential market. Almost all homes here are owned by the average person. Toyotas and Nissans in their driveway. One story single home ranging around $250k- $350k. Should I stay here and try to open my business here? Or should I be looking more for the “Audis, Mercedes, Land Rover, Lexus owners?”

[@MrNick-]

@@Nottoday3033 go where the money is.

[@DavidGurrney7589]

@@Nottoday3033 The more money they have the more they don't WANT TO GIVE YOU!!! Ask me how I know 🧐🧐🧐🧐

[@jhill6033]

By law subcontractors cant be restricted from advertising their company, or made to wear general contractor apparel. Your not suppose to provide them with tools or training because they are suppose to be professionals. I think all these areas could be worked out between sub and general, I just want to know if the IRS has ever challenged his classification and how did he go about it?

[@DavidGurrney7589]

NEVER EVER POST ON CRAIG'S LIST!!! Unless you want drug addicts, stranger who do 💩 work and are not reliable!!! Ask me how I know!!!

[@erusso4441]

Where do you advertise for subs