Time is Money

You have probably heard that time is money. For a painting contractor this is more than a cliché—it is a literal truth. More than anything, we sell time. We sell the time of skilled craftsmen.

When we estimate a job we are trying to determine how long the job will take, that is, how much time is involved. We are providing a service, and the cost of that service is ultimately determined by the amount of time required to provide it. This may seem obvious. But what is obvious and what is truly understood are often quite different.

The profit on a job is ultimately going to be determined by the accuracy of our estimate. If we estimate 40 hours, but it takes 50 hours, we did not sell enough time. (There may be production issues involved, but that is a different issue.) We will still incur expenses for those extra 10 hours. This will reduce, and more likely eliminate, the profit on the job.

Selling sufficient time is the primary issue in estimating. In that respect, our profit for the job is determined at the time of the sale.

Accurate estimating is not rocket science. But it isn’t a guessing game either. It boils down to knowing how long each task takes. If you know the time required for each task involved in the job, you can accurately estimate. When you know how much time to sell, you really can make money.

© BEP Enterprises Incorporated 2008