With the fluctuating market environment characterized by soaring material costs and increasing competition, industrial painting contractors are hard-pressed to make a decent profit from their business operations. These profit considerations reflect in the way they price their services and bill the client’s facility projects.
Industrial painting contractors have to spend money to earn money. One of the ways that they bring in their clients is through a marketing campaign. Industrial painting contractors usually spend for advertising costs, which includes newspaper ads, magazine spots, and a listing in the local phone directories. Recently, with the increasing popularity of the internet, industrial painting contractors spend for their company websites to promote their businesses.
If the industrial painting contractors begin the work on a facility, they incur more expenses for materials, labor, and even travel expenses. With the rising costs of fuel and other concomitant travel expenses like tolls, vehicle maintenance and the like, the mileage costs of shuffling to and from the client’s site during the project can be a major cost to be accounted for.
When it comes to materials, the industrial painting contractors have to choose the best materials with fair pricing. At each stage of the project — surface preparation, application and post-application, expenses on standard supplies like sandpaper, primers, paints, and the like are incurred and have to be recouped by the industrial painting contractors.
The profit bottom line is basically a function of earnings minus incurred expenses. The facility managers must be in the know of the actual profit and expense rates of bidding industrial painting contractors, to be able to get the one with the most reasonable project pricing.