One of the things that can kill a business quickly is a lack of integrity. At Mission Painting and Home Improvements, we pride ourselves on being constantly above board in our dealings with clients and employees.

We understand that providing a bit of education about how and why our projects are priced. This is vital to assuring our customers of the high level of integrity we expect of ourselves.


One of the key mistakes that customers can make is confusing Markup with Profit.

Markup is a generic term that applies to both overhead and profit that any business charges above their direct cost. Markup is what is needed for businesses to remain in business. This is important for any warranty considerations.

It is easy to see a job that has a direct cost of $1,000 and an invoiced price of $1,500 as a rip off and a 50% profit. But that is not the case.

The $500 dollar mark up is a result of a 1.50 markup (which is well within reasonable standards) and must not only include profit but also advertising costs, sales commission, your project manager’s salary, insurance, licenses, and many other things.

The National Association of Home Builders reported that their “Best” remodeling contractors averaged something under a 4% net profit. Based upon our experience, too many contractors, make much less than that. That is the reason behind so many construction-based businesses failing.


While it might be tempting to chase out the cheapest contractors available, be aware that you are running the risk of selecting a contractor who will go out of business prior to finishing your job or will do a cut rate job. You wouldn’t ask a surgeon to cut costs or a mechanic to rebuild your engine for no profit so why ask it of the people working on what is probably your largest single investment?

Zig Ziglar is famous for saying, “I would rather apologize for the price today than for the lack of quality and your unhappiness forever. Now, let’s not let a few dollars keep us from doing business together.” At Mission Painting, we wholeheartedly agree.

For a contractor who will treat you with integrity and make the work as hassle free as possible contact Mission Painting and Home Improvements.


Categories: Uncategorized


Leave a Reply

Avatar placeholder

Your email address will not be published. Required fields are marked *