That's Good In-Faux
By far, the question I am asked the most is about pricing. When I visit on-line discussions, pricing is once again a hot topic. So how do you become a winner in pricing?
Let's start by agreeing that pricing is not about luck...
Or seeing what sticks....
It is about taking the guess work out of coming up with a bid.
What it really takes is knowing your budget, some time, and basic math.
Before you can price anything, you have to know what you need to make to earn a living and cover your expenses.
Now, creating a budget is a whole other post but for this exercise you have to decide on an hourly and a daily rate. These rates are determined by where you live and how you live. It is different depending on your market and how much money you need or want.
In general, if you are getting 100% of your bids, your hourly/daily rate is too low. If you are getting 50% of your bids, then your pricing may be high for your area. A good goal is to get 60%-70% of your bids.
You need an hourly/daily rate to make comparisons with square footage pricing.
We are going to use a 350 square foot room as our example. This is a standard size for a dining or gust room. It is an easy size to half (a large powder room or guest bath) or double (a standard hearth room).
For our sample, I've selected a 3-step finish...
Where many people start to stumble on pricing is figuring out product costs and coverage. With Faux Effects, Setcoat covers about 400 square feet per gallon since it tends to be thick and it may be thinned 10% with water. Most paint companies suggest a gallon covers 350 sqft. A troweled plaster product covers around 200 sqft for a low build coat with some trowel lines and 90% base coverage. A tightly skimmed product (like the Lustersuede used here) can be stretched to 250 sqft per gallon. When in doubt, budget for more product-the cost difference is only a few cents more per square foot and will often guarantee you free shipping from studios offering minimum purchase options.
Many studios and manufactures also offer on-line stores where you can check product prices. For our 350 square foot room, we would need the following:
1 gallon Royal Taupe Setcoat.............................................$61.91
2 gallons of Tiger's Eye Venetian Gem..............................$148.18
1 gallon and 2 quarts of Charred Gold Lustersuede...........$78.95 + $45.40 (2 @ $22.70)
Product..............................................................................$334.44
Plus tax (if you are in state)...............................................$30.18
Total...................................................................................$364.62
or rounded-up to $1.05 a square foot. To cover tools, tape, and misc. supplies, let's add 10% bringing our grand total to $1.15 per square foot. Now, $402.50 sounds like a lot until you break it down into a price per square foot. I looked up tile on 2 big box store sites and came up with plain white as my choice in this price per square foot range.
Now let's look at labor. This is a 3 step finish, so let's start with $1 per layer per square foot. That would be $3 plus the cost of the materials or $4.15 a square foot. 350 x $4.15 = $1,452.50 total.
$1,452.50 - $402.50 (product/supplies) = $1,050. Now this finish for this amount of space should be completed in 2 days. $1,050/ 2 days = $525 a day. $525/16 hours or $32.81 an hour. This would low since you have to take taxes, gas and other expenses out of that $32.81 an hour.
Compare that to making $600 a day minimum. $600 x 2 = $1,200 or $75 an hour. $1,200 + $402.50 = $1,602.50 or $4.58 a square foot.
Troweling is hard work. If you doubled you price on the troweled layers (there are 2 in this finish) then you base price per square foot would be $5.00 plus the product costs or $6.15 a square foot. $6.15 x $350 = $2,152.50. $2,152.50 - $402.50 = $1,750. $1,750/2 = $875 or $109.38 an hour.
The point is you need parameters. Give your self an hourly and a daily goal. Then assign your tasks a dollar value. Start with $1 per layer and see what you get. Some people charge .50 a square foot to roll paint and $3 a layer to trowel. Then they add $1 a square foot if the surface is a ceiling or a floor.
This will also give you a way to start taking your samples and assigning them a price. When you visit a client you may shown them boards already marked with suggested pricing per square foot. Let the client compare what the finish is worth to them. Just like a restaurant where the prices are listed. The customer has to decide if they want to pay for hamburger or a Ribeye. The hamburger and Ribeye can both BE GOOD but they are not the same thing.
Sure it takes some time but congratulations- You have graduated from Magic to Math!
Don't let your budget be cut short. Bob Barker knew this. And so should you!
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