Hey, it’s Brandon Lewis here. I can’t tell you how many times I get on the phone with owners who are at ten, 15, 20 percent net profit in their painting business and they think it’s okay. They think it’s the norm. I’m here to tell you that you can quickly and easily get to 30 percent net profit in your business if you will simply go about running your business purposefully. I’m going to give you four steps that I have used countless times to double and triple owner’s income.
Step number one is to completely fix your sales process. Don’t be emailing in estimates, don’t be showing up and petting the dog and just giving them a price. You need to preposition, present, post-position, and follow up with strong sales tools that actually match the persuasiveness required to reduce the risk for most homeowners and that follows the sales cycle all the way until they buy, which can often be 12 or 18 months.
When you do this, it allows you to raise your prices by ten to 30 percent. When you do that, if you’re already at a ten percent margin, or a 20 percent margin, that additional raising of prices that’s at the end of profitability goes right to your personal income.
Now, to help you after you do this, I’m going to ask that you reconnect with your past clients using a customer reactivation campaign and that you also use a monthly mailed and emailed newsletter. What this does is it increases the amount of repeat and referral business coming in to your painting company because those leads are, number one, less price sensitive, and number two, you know from experience they close anywhere from 60 to 75 percent.
So now that we have increased our prices, we have improved our sales process that allows us to do that, and that we have reactivated and we’ve used our newsletters to go after our past client list that only leaves one things left to do, and that’s this. Make sure that you institute a safe labor bonus program so that your guys come in on budget. As long as you’re coming on budget, and if you’re completing the same amount or more projects where you have raised your prices by 10, 20, or 30 percent, all of a sudden you have doubled or tripled your personal income.
It’s really easy to do. People try to over complicate it, they try to have 15,000 steps to double your income. No, you don’t have to do that. Worry about your bottom line sales and your profit margins first, and then the top end will take care of itself. I’m Brandon Lewis with Painter’s Weekly saying there’s no need for you to run your business at a ten, 15, or 20 percent profit margin. You can do a lot better and you deserve it. Take care, guys.