Improve Profit with Job Costing

Implement job costing to accurately track revenue, labor, and material costs for each project, moving beyond general profit and loss statements.

Aim for a gross profit of 45% or more on residential and light commercial repaint jobs, as this is a key industry benchmark for profitability.

Keep labor costs (after employer taxes) at 40% or less of the total job cost for in-house employees, or 40-50% of revenue for subcontractors.

Monitor material costs, targeting 10-15% of revenue, and investigate if consistently exceeding 16% as it may indicate an issue.

Utilize job costing data to identify which types of jobs (e.g., interiors vs. exteriors, cabinets) and which crews are most profitable, and adjust your business strategy accordingly.

Don't let aversion to spreadsheets deter you; simple job costing can take as little as five minutes per job and provides invaluable insights.

Use job costing data to back up gut feelings about team performance or project types, providing concrete evidence for coaching, training, and strategic decision-making.