Painting Company here: Employees or Subs?
My Texas painting company has been operating with employees since we started. We offer benefits, WC, of course pay taxes, etc. Employees are expensive. Strangely enough, I have also found employees often are harder to keep motivated without constant oversite - they get the work done, but often not as fast as subcontractors, so that cuts into profits as well. I understand that a lot of franchises, like That 1 Painter, and CertaPro, have managers who are employees, but their laborers are 1099 subcontractors they basically treat like employees. The subs wear the company shirts, and work to the company's standards and the managers pop in here and there to check on them. This way the company avoids paying taxes, benefits, etc., and if they are low on work, they have no obligation to keep paying their laborers. This all sounds really nice. With how expensive my labor force and overhead are, I find it hard to be competitive against other companies with a subcontractor business model and still remain profitable. Any other painting companies or similar businesses - what do you guys do?
Direct Call Leads
We only pay per qualified conversation with homeowners. After a few years of hunting down bad contacts, getting ghosted and wasting money on ads and ad managers we internally built out a system that only costs money when a homeowner directly calls us looking for our services. It’s been a gamechanger and we even started selling these calls to other roofers and other industries/home service companies because there’s no real risk. Either you talk to a homeowner who wants you to come out, or you don’t pay. They can be kind of expensive but our ROI is at about 3.4x for a while now using it so I’m never going back to our old methods…unless someone has a lower risk option that doesn’t consume a ton of time.
