September 23, 2024 • 19 mins
Episode Notes:
You know it’s costing your business, but do you realize exactly HOW MUCH it costs you in rework?
What if you could save thousands of dollars each month with just a few simple changes in your paint shop?
Our latest episode in the "Keeping It Klean" series, promises to reveal how you can drastically reduce the costly impact of preventable dirt and fisheyes in your paint jobs. Drawing on my extensive background as a paint technician, instructor and jobber, alongside insights from leading industry experts, we expose the hidden financial pitfalls of rework. From the evolution of painting practices since the late '70s to the modern-day consumer expectations of perfection, we uncover the critical importance of cleanliness in your paint processes.
In this episode, we go beyond the surface to break down the actual costs associated with redos. You'll learn about the hidden expenses that add up, like your valuable Paint & Materials, unnecessary wasted utilities like gas and electricity, to the staggering monthly losses experienced in lost production. We also shed light on how these inefficiencies bite into the income of paint technicians. By understanding and addressing these issues, you'll be better equipped to minimize financial losses and boost your shop's efficiency, as well as the bottom line.
Stay tuned as we preview the next chapter, focusing on preventative maintenance strategies that not only save money but also protect your valuable equipment. Whether you're a shop owner or a paint technician, this is essential listening for anyone serious about optimizing their paint shop operations and preserving their cash flow!
Link to video: 10 Secrets to Clean Paint Jobs! - Refinish Media - https://tinyurl.com/4ffbzbp7
https://linktr.ee/refinishmedia
https://www.youtube.com/@RefinishMedia
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Rick (00:00):
And welcome back to my new series called Keeping it Clean,
where I break down all theaspects of what really creates
paint department rework, themain sources of dirt and
contamination, how to minimizethem and the real costs of
rework from all perspectives andlastly, what a good
preventative maintenance programhas on reducing repaints and
extending the life cycle ofbooth equipment, all captured in
(00:22):
short, bite-sized episodes.
Well, hopefully you've alreadychecked out my first episode in
this series, root Sources ofContamination, and maybe I was
able to open your eyes a bit onwhere all that junk in your
beautiful paintwork really comesfrom.
If you missed that one, I wouldhighly suggest you go back and
listen to that episode firstbefore you start on this one.
It'll definitely make a wholelot more sense.
This week we're going to do adeep dive into the costs of
(00:47):
repainting a vehicle due to theavoidable dirt and fish eyes
most painters have to contendwith, and I would think most
would be absolutely shocked athow much money is really
involved here, not just for theshop ownership either, it's for
the paint technicians as well.
Welcome to the MindWrenchPodcast with your host, rick
(01:07):
Sellover, where minoradjustments produce major
improvements in mindset,personal growth and success.
This is the place to be everyMonday, where we make small
improvements and take positiveactions in our business and
personal lives that will make amajor impact in our success,
next-level growth and quality oflife.
(01:33):
Hey, what's up everybody?
Welcome to the MindWrenchPodcast.
I'm your host, rick Silover.
Thanks so much for stopping in.
If you're a returning listenerand haven't done so already,
please take a minute and clickthe follow or subscribe button
and then rate and review theshow.
When you rate and review theshow, the algorithms for Apple,
spotify, google Podcasts,iheartradio, amazon Music and
(01:53):
all the other platforms will seethat it's valuable and show it
to more people that have neverseen it before, and hopefully it
can help them too.
I would really really reallyappreciate your help, sharing
this word with your friends andfamily as well, and if you're a
brand new listener, welcome.
I hope you find something ofvalue here that helps you in
your personal or professionallife as well.
Please make sure to click thesubscribe or follow button so
(02:15):
you never miss another episode.
Hey, welcome back to theMindWrench Podcast so glad
you're here with me today.
And welcome back to my newseries called Keeping it Clean,
where I break down all theaspects of what really creates
paint department rework, themain sources of dirt and
contamination, how to minimizethem and the real costs of
rework from all perspectives,and, lastly, what a good
(02:41):
preventative maintenance programhas on reducing repaints and
extending the life cycle ofbooth equipment, all captured in
short, bite-sized episodes.
Well, hopefully you've alreadychecked out my first episode in
this series Root Sources ofContamination and maybe I was
able to open your eyes a bit onwhere all that junk and your
beautiful paintwork really comesfrom.
If you missed that one, I wouldhighly suggest you go back and
listen to that episode firstbefore you start on this one.
(03:02):
It'll definitely make a wholelot more sense If you did
already check it out.
Number one I hope it made senseto you.
And number two welcome back tothe second episode of the series
.
This week we're going to do adeep dive into the costs of
repainting a vehicle due to theavoidable dirt and fisheyes most
painters have to contend with,and I would think most will be
absolutely shocked at how muchmoney is really involved here,
(03:25):
not just for the shop ownershipeither, it's for the paint
technicians as well.
Once again, when doing myresearch for this realistic
expose on the absolute time,suck and money wasted at rework,
I tapped into not only myexperience of living through
this daily nightmare as a painttech, but my 30 plus years as a
jobber, visiting hundreds ofshops every year, witnessing
their battles, but usedinformation gained from
(03:47):
previously interviewed keypeople from top booth
manufacturers as well theirdistributors that install and
service and provide preventativemaintenance for those booths,
several paint manufacturers repsand some industry tech reps
that deal with finding solutionsfor customers every single day,
refinished instructors and someshop owners themselves.
Now, before I start laying downthe results of my dirt survey
(04:10):
and spitting out some amazingnumbers that impact a shop
owner's bottom line every monthin a very negative way, as well
as the paint tech's ability tomaximize their income, and it
may cause you to think is thisguy nuts?
Does he even know what he'stalking about?
Well, let me assure you, I evenknow what he's talking about.
Well, let me assure you, I doknow what I'm talking about.
But I think it'd be helpful togive you a little bit of my
perspective.
First, the time frame that Ifirst started my paint career.
(04:33):
In the mid to late 70s, acryliclacquer was the predominant
paint type used in most bodyshops, followed closely by
acrylic enamels.
In the late 70s, dirt was notso much a focus or concern in
the lacquer finishes becauseafter you pounded on four to
five coats of color, anotherfour to five coats of clear
right there in the middle of theshop with maybe an exhaust fan
(04:54):
on, because in the shops backthen the booth if you had one
was kind of reserved for theenamel job or the complete
repaints.
You're going to end up spendingthe next day wet sanding and
rubbing those jobs anyways.
I'll point out here thecustomer expectations of what
the finished product looked likereally consisted basically of
if the panels were straight, thenew bumper wasn't crooked,
(05:16):
color looked okay, it was goodenough.
Customers did not nitpick thedirt in the paint back then.
Now regular acrylic enamel jobsbecame commonplace.
But you couldn't rub out ametallic enamel paint job
without affecting the metallics.
So actually trying to keep thejob clean suddenly became
important.
A little while later paintcompanies started offering
(05:37):
enamel clear coats to apply overlacquer-based coats as well as
over enamel metallics, and itwas definitely better for
providing a finish.
You didn't have to wet, sandand rub every inch of the panel.
But the enamel clears were alittle bit more challenging to
nub and rub.
Those jobs could not at leastthey weren't supposed to be
sprayed outside of the boothwink, wink, nod, nod due to the
(05:58):
isosciatides using the hardeners.
But a lot of people didn'treally realize that back then
and just did it anyways hardners.
But a lot of people didn'treally realize that back then
and just did it anyways.
During the early to mid 80s, asbetter, more durable finishes
like base coat, clear coat,urethane jobs became more
commonplace, that's when thereal never-ending battle for a
clean job began.
(06:22):
I couldn't count the number ofshops that had a rub guy
full-time, someone that the shoppaid for or shared cost with
the painter, and his job was todo nothing but sand and rub
every single car that came outof that booth.
Most booths at that time werecross-draft, but the new
downdrafts were starting to hitthe market and brought along not
only the option of baking theclear for a quicker finish but a
better, controlled springatmosphere.
But everybody seemed tostruggle to get a job out of
(06:45):
that booth and over the curbwithout a substantial amount of
sanding and rubbing.
Still, with the advent ofurethane, base coat, clear coat
finishes, the paint jobs fromthe factory were increasingly
getting much nicer, morebrilliant and higher gloss.
The customer expectations alsoincreased, as did the cost of a
new vehicle.
If you're looking for acompetitive edge for your
(07:07):
business or a more effectivejumpstart to your personal
development in 2024,.
I'll make your first step supersimple.
It is a fact that an incrediblenumber of the most successful
business owners, nearly half ofthe Fortune 500 companies,
top-earning professionalathletes, entertainers and
industry leaders likeMicrosoft's Bill Gates, former
President Bill Clinton, richardBranson, amazon's Jeff Bezos and
(07:30):
Salesforce's Mark Benioff allhave one thing in common they
all have at least one coach andsome have several that they work
with on a consistent basis,someone that helps, guide,
mentor and support them,challenge them, help them set
and achieve goals that move themforward and then hold them
accountable to follow throughdriving personal and
professional growth.
Working with a coach has manysubstantial benefits.
(07:53):
Just for an example, 80% ofcoaching clients report improved
self-esteem or self-confidencethanks to coaching, 99% of
individuals and companies thathire a coach report being very
satisfied and 96% would do itagain.
If, deep down, you know it'stime to make those improvements
in your business, your personallife, that you've kicked down
the road year after year.
(08:14):
If you're tired of knowingthere's a better version of you
waiting to shine, but unsure ofhow to bring that version to
light.
If you're tired of wanting toenjoy a more successful business
but not sure how to start.
And if you don't want to goanother 12 months without better
results but you don't want togo another 12 months without
better results, but you don'twant to go it alone, then take
the first step.
It's super simple.
Sometimes talking to the rightperson can make all the
(08:35):
difference.
Go to wwwrixelovercom contactand I'll set you up with a free
consultation.
Call with me to see ifone-on-one coaching is right for
you.
Now here we are, a few decadeslater, and it seems we're still
fighting the same battle againstdirt, even though booth and
spray technology has advanced.
Masking materials are alsovastly improved since then.
(08:57):
Nobody's covering the car withrows and rows of green 36-inch
paper anymore.
Yet the vast majority of shopsare still rubbing almost every
one of the jobs to some degree.
Did I mention how much I hatesanding and rubbing?
Oh God, well, I did with apassion.
I'd rather lay on the groundsanding chips out of a rocker
than standing over a hoodsanding and polishing, trying to
(09:18):
get that dirt out, only to haveto go and re-sand or repaint
that job after all.
Anyways, what's often not reallytaken into account was the
actual cost of redoing yourpaintwork.
The numbers add up prettyquickly.
As a matter of fact, I've askedseveral shop owners over the
years if they knew what thatredo cost them?
That I was looking at.
Most of them do not.
(09:38):
They usually ask their paint orjob rep to help them with that,
and there's a few that wouldjust grab the RO.
Look at the paint materialreimbursement line and say, yeah
, it looks like I lost $250 inpaint materials in this one.
Well, it's not really correct.
There's always a loss on paintmaterials, but that's not it and
there's much more to it thanthat.
So I recently did a deep diveinto those losses, crunched the
(10:02):
numbers and the results werepretty startling.
So let's break down our lossesinto a couple of different
categories Paint material loss,utilities loss, production loss
and employee retention loss.
Yep, this one counts too.
All these calculations arebased on a national average RO
(10:27):
value of $4,350, an average of10 paint labor hours on that RO
value and a labor rate of about55 an hour and a low average of
only two redos per month.
So here we go.
Number one cost of paintmaterial loss.
Now, when you have to redo apaint job, you do lose on paint
materials, but you're onlylosing what your actual cost was
on those materials.
You know, after discounts,rebates, statement discounts,
(10:50):
cash investments if any, on apaint contract, not what you
would collect from the customeror the insurance.
That's sales.
That's got your markup in there.
Now, obviously, it's hard togive an average number because
of the variety of scenarios.
The only one true way tomeasure is by what an industry
standard cost percentage wouldbe for your paint and also what
(11:11):
the material's cost percentagewould be as well.
The paint companies have thesenumbers dialed in for years A
good collision center.
Today, their paint cost as apercent of sales would be about
3.9%.
If you're much higher than that, then you've got some other
areas of concern you need toaddress as well.
Your material's cost as apercent of sales would be about
(11:32):
1.7%.
These would be best verified byeither your paint company, your
servicing jobber or a businesscoach or consultant.
All said, your loss in paintmaterials with these two
parameters and two re-dos permonth would be about $723, which
includes two days of rental at$59 a day as well, because if
(11:53):
you have somebody's car in for ajob then you have to stop and
repaint it.
You're probably going to haveto pay for the rental one way or
the other.
Number two the cost of wastedutilities.
Here's another cost that isincurred and should be accounted
for under a re-do.
But it's a hard number toqualify as the cost of gas and
electric varies widely acrossthe US.
(12:15):
Shop owners that understand andreview their P&Ls monthly.
They know what their utilitiescosts are and they do know a
redo adds to that cost, but theyhave no easy way to calculate
it.
That's right, there is no easyway, but I took that as a
challenge, did some research andhere's what I discovered.
Now, based on some booth energyconsumption stats I acquired
(12:37):
from a booth manufacturer andsome national utilities costs, I
was able to come up with somedata that would be helpful and I
was surprised these numbersweren't higher, to be perfectly
honest.
So the national average costfor electricity is about $0.194
per kilowatt hour.
The national average cost fornatural gas is about $1.40 per
(12:59):
therm and average booth runtime,including spraying, flashing,
baking, cool down, was about 1.4hours per average RO.
So, without boring you with allthe math involved, the average
additional energy cost per redowas about $17.30.
And based on two average redosper month, that's $34, let's
(13:22):
call it $35 in wasted energycosts.
I know it doesn't seem likeit's worth worrying about, but
if you think of it this way,it's an additional $5 off your
bottom line for every 30 minutesyour booth runs, and that's
whether you're doing a job ornot.
So keep that in mind.
Number three the cost of lossproduction.
Now, this would be your highestimpact loss to your business,
(13:44):
bar none, unless you onlyproduce one booth cycle a day or
less.
If that's the case, you gotsome bigger concerns to worry
about, right.
Loss production is simply thisyou lose the ability to run
another booth cycle on a payingRO because you're using that
boost cycle to redo a paint joba second time for free.
Once again, using that sampleRO value of $43.50 and two redos
(14:09):
a month, you'll lose about$8,700 per month in lost
production.
So let's add all this togetherto really get an honest look at
how those two little re-dosimpact your business and your
bottom line.
So if we add a paint andmaterial loss of $723, and a
utilities loss of $35, and aproduction loss of $8,700,
(14:33):
that's about $9,500 per monthand that's a whopping $113,500
per year.
I know that's a big number,right?
So you might be thinking thatsounds like bullshit, rick.
I almost never have to redopaintwork, probably less than
one per month.
Well, if you're being honestwith me and being honest with
yourself and that's correct,then let's just say let's cut
(14:56):
that in half.
Then One redo a month stillequals $4,729 a month, or
$56,750 per year.
Not really something to ignore,is it no?
Lastly, there's another costthat nobody talks about, but it
is critical to at least oneperson your paint tech and it
(15:18):
should be important to the shopownership as well and that is
the cost of lost paint techincome.
Now, lost paint tech income isincome the painter misses out on
while repainting a job for thesecond time for free.
Based on that 4350 RO thatwould have approximately 10
hours of paint labor and anaverage rate of $55 per hour,
(15:40):
they'd lose out on $550 of newpaint labor as well as $77 of
lost available working time.
So I came up with that you got1.4 hours of booth process time,
which is all the time you'dspend in the booth final mask,
wipe down, tack, spraying, basecoat, clear coat, flash times,
(16:02):
baking time and cool down time.
So that's a $627 loss per redo.
Annualized out, that's $7,500.
Now, most painters know thatthey're losing their ass every
time they redo a job, but mostof them, if not all of them,
probably don't even know howthey would figure that out right
(16:24):
?
Well, this is as close as Icould come.
Obviously it's going to vary.
These are averages based on afew numbers.
Your local numbers are going tovary, your average RO is going
to vary, but the point is thisthere's a great financial loss
(16:46):
attributed to repainting a jobdue to avoidable contamination.
Even if your shop onlyexperienced a lower percentage
of these redo costs, wouldn'tyou still want to reduce those
costs as much as possible?
I know I would, and I know sowould many other shop owners I
know.
So that's all I got for youtoday, and hopefully this gives
you a pretty good view of whatthose costs look like.
Be sure to tune back in for thenext episode, where we dive into
(17:06):
what preventative maintenanceis and how it not only helps
mitigate these costs but alsoprotects your very expensive
equipment.
Hopefully this little seriesand these episodes are helping
you gain a better understandingon what's involved with redos
and what that cost is and howmuch it impacts your business
and why it's so important toreally work on minimizing these
(17:29):
costs.
We'll wrap this series up nextepisode with preventative
maintenance and what it does tohelp you minimize these costs
and protect your equipment.
Well, that's all I had help youminimize these costs and
protect your equipment.
Well, that's all I had for youtoday.
Thanks again for tuning in.
I really appreciate yoursupport and I hope you have a
great week.
I can always be reached atwwwrickselovercom, where you can
(17:50):
find all my social media linkspodcast episodes, blog posts and
much more.
And welcome back to my new series called Keeping it Clean,
where I break down all theaspects of what really creates
paint department rework, themain sources of dirt and
contamination, how to minimizethem and the real costs of
rework from all perspectives andlastly, what a good
preventative maintenance programhas on reducing repaints and
extending the life cycle ofbooth equipment, all captured in
(00:22):
short, bite-sized episodes.
Well, hopefully you've alreadychecked out my first episode in
this series, root Sources ofContamination, and maybe I was
able to open your eyes a bit onwhere all that junk in your
beautiful paintwork really comesfrom.
If you missed that one, I wouldhighly suggest you go back and
listen to that episode firstbefore you start on this one.
It'll definitely make a wholelot more sense.
This week we're going to do adeep dive into the costs of
(00:47):
repainting a vehicle due to theavoidable dirt and fish eyes
most painters have to contendwith, and I would think most
would be absolutely shocked athow much money is really
involved here, not just for theshop ownership either, it's for
the paint technicians as well.
Welcome to the MindWrenchPodcast with your host, rick
(01:07):
Sellover, where minoradjustments produce major
improvements in mindset,personal growth and success.
This is the place to be everyMonday, where we make small
improvements and take positiveactions in our business and
personal lives that will make amajor impact in our success,
next-level growth and quality oflife.
(01:33):
Hey, what's up everybody?
Welcome to the MindWrenchPodcast.
I'm your host, rick Silover.
Thanks so much for stopping in.
If you're a returning listenerand haven't done so already,
please take a minute and clickthe follow or subscribe button
and then rate and review theshow.
When you rate and review theshow, the algorithms for Apple,
spotify, google Podcasts,iheartradio, amazon Music and
(01:53):
all the other platforms will seethat it's valuable and show it
to more people that have neverseen it before, and hopefully it
can help them too.
I would really really reallyappreciate your help, sharing
this word with your friends andfamily as well, and if you're a
brand new listener, welcome.
I hope you find something ofvalue here that helps you in
your personal or professionallife as well.
Please make sure to click thesubscribe or follow button so
(02:15):
you never miss another episode.
Hey, welcome back to theMindWrench Podcast so glad
you're here with me today.
And welcome back to my newseries called Keeping it Clean,
where I break down all theaspects of what really creates
paint department rework, themain sources of dirt and
contamination, how to minimizethem and the real costs of
rework from all perspectives,and, lastly, what a good
(02:41):
preventative maintenance programhas on reducing repaints and
extending the life cycle ofbooth equipment, all captured in
short, bite-sized episodes.
Well, hopefully you've alreadychecked out my first episode in
this series Root Sources ofContamination and maybe I was
able to open your eyes a bit onwhere all that junk and your
beautiful paintwork really comesfrom.
If you missed that one, I wouldhighly suggest you go back and
listen to that episode firstbefore you start on this one.
(03:02):
It'll definitely make a wholelot more sense If you did
already check it out.
Number one I hope it made senseto you.
And number two welcome back tothe second episode of the series
.
This week we're going to do adeep dive into the costs of
repainting a vehicle due to theavoidable dirt and fisheyes most
painters have to contend with,and I would think most will be
absolutely shocked at how muchmoney is really involved here,
(03:25):
not just for the shop ownershipeither, it's for the paint
technicians as well.
Once again, when doing myresearch for this realistic
expose on the absolute time,suck and money wasted at rework,
I tapped into not only myexperience of living through
this daily nightmare as a painttech, but my 30 plus years as a
jobber, visiting hundreds ofshops every year, witnessing
their battles, but usedinformation gained from
(03:47):
previously interviewed keypeople from top booth
manufacturers as well theirdistributors that install and
service and provide preventativemaintenance for those booths,
several paint manufacturers repsand some industry tech reps
that deal with finding solutionsfor customers every single day,
refinished instructors and someshop owners themselves.
Now, before I start laying downthe results of my dirt survey
(04:10):
and spitting out some amazingnumbers that impact a shop
owner's bottom line every monthin a very negative way, as well
as the paint tech's ability tomaximize their income, and it
may cause you to think is thisguy nuts?
Does he even know what he'stalking about?
Well, let me assure you, I evenknow what he's talking about.
Well, let me assure you, I doknow what I'm talking about.
But I think it'd be helpful togive you a little bit of my
perspective.
First, the time frame that Ifirst started my paint career.
(04:33):
In the mid to late 70s, acryliclacquer was the predominant
paint type used in most bodyshops, followed closely by
acrylic enamels.
In the late 70s, dirt was notso much a focus or concern in
the lacquer finishes becauseafter you pounded on four to
five coats of color, anotherfour to five coats of clear
right there in the middle of theshop with maybe an exhaust fan
(04:54):
on, because in the shops backthen the booth if you had one
was kind of reserved for theenamel job or the complete
repaints.
You're going to end up spendingthe next day wet sanding and
rubbing those jobs anyways.
I'll point out here thecustomer expectations of what
the finished product looked likereally consisted basically of
if the panels were straight, thenew bumper wasn't crooked,
(05:16):
color looked okay, it was goodenough.
Customers did not nitpick thedirt in the paint back then.
Now regular acrylic enamel jobsbecame commonplace.
But you couldn't rub out ametallic enamel paint job
without affecting the metallics.
So actually trying to keep thejob clean suddenly became
important.
A little while later paintcompanies started offering
(05:37):
enamel clear coats to apply overlacquer-based coats as well as
over enamel metallics, and itwas definitely better for
providing a finish.
You didn't have to wet, sandand rub every inch of the panel.
But the enamel clears were alittle bit more challenging to
nub and rub.
Those jobs could not at leastthey weren't supposed to be
sprayed outside of the boothwink, wink, nod, nod due to the
(05:58):
isosciatides using the hardeners.
But a lot of people didn'treally realize that back then
and just did it anyways hardners.
But a lot of people didn'treally realize that back then
and just did it anyways.
During the early to mid 80s, asbetter, more durable finishes
like base coat, clear coat,urethane jobs became more
commonplace, that's when thereal never-ending battle for a
clean job began.
(06:22):
I couldn't count the number ofshops that had a rub guy
full-time, someone that the shoppaid for or shared cost with
the painter, and his job was todo nothing but sand and rub
every single car that came outof that booth.
Most booths at that time werecross-draft, but the new
downdrafts were starting to hitthe market and brought along not
only the option of baking theclear for a quicker finish but a
better, controlled springatmosphere.
But everybody seemed tostruggle to get a job out of
(06:45):
that booth and over the curbwithout a substantial amount of
sanding and rubbing.
Still, with the advent ofurethane, base coat, clear coat
finishes, the paint jobs fromthe factory were increasingly
getting much nicer, morebrilliant and higher gloss.
The customer expectations alsoincreased, as did the cost of a
new vehicle.
If you're looking for acompetitive edge for your
(07:07):
business or a more effectivejumpstart to your personal
development in 2024,.
I'll make your first step supersimple.
It is a fact that an incrediblenumber of the most successful
business owners, nearly half ofthe Fortune 500 companies,
top-earning professionalathletes, entertainers and
industry leaders likeMicrosoft's Bill Gates, former
President Bill Clinton, richardBranson, amazon's Jeff Bezos and
(07:30):
Salesforce's Mark Benioff allhave one thing in common they
all have at least one coach andsome have several that they work
with on a consistent basis,someone that helps, guide,
mentor and support them,challenge them, help them set
and achieve goals that move themforward and then hold them
accountable to follow throughdriving personal and
professional growth.
Working with a coach has manysubstantial benefits.
(07:53):
Just for an example, 80% ofcoaching clients report improved
self-esteem or self-confidencethanks to coaching, 99% of
individuals and companies thathire a coach report being very
satisfied and 96% would do itagain.
If, deep down, you know it'stime to make those improvements
in your business, your personallife, that you've kicked down
the road year after year.
(08:14):
If you're tired of knowingthere's a better version of you
waiting to shine, but unsure ofhow to bring that version to
light.
If you're tired of wanting toenjoy a more successful business
but not sure how to start.
And if you don't want to goanother 12 months without better
results but you don't want togo another 12 months without
better results, but you don'twant to go it alone, then take
the first step.
It's super simple.
Sometimes talking to the rightperson can make all the
(08:35):
difference.
Go to wwwrixelovercom contactand I'll set you up with a free
consultation.
Call with me to see ifone-on-one coaching is right for
you.
Now here we are, a few decadeslater, and it seems we're still
fighting the same battle againstdirt, even though booth and
spray technology has advanced.
Masking materials are alsovastly improved since then.
(08:57):
Nobody's covering the car withrows and rows of green 36-inch
paper anymore.
Yet the vast majority of shopsare still rubbing almost every
one of the jobs to some degree.
Did I mention how much I hatesanding and rubbing?
Oh God, well, I did with apassion.
I'd rather lay on the groundsanding chips out of a rocker
than standing over a hoodsanding and polishing, trying to
(09:18):
get that dirt out, only to haveto go and re-sand or repaint
that job after all.
Anyways, what's often not reallytaken into account was the
actual cost of redoing yourpaintwork.
The numbers add up prettyquickly.
As a matter of fact, I've askedseveral shop owners over the
years if they knew what thatredo cost them?
That I was looking at.
Most of them do not.
(09:38):
They usually ask their paint orjob rep to help them with that,
and there's a few that wouldjust grab the RO.
Look at the paint materialreimbursement line and say, yeah
, it looks like I lost $250 inpaint materials in this one.
Well, it's not really correct.
There's always a loss on paintmaterials, but that's not it and
there's much more to it thanthat.
So I recently did a deep diveinto those losses, crunched the
(10:02):
numbers and the results werepretty startling.
So let's break down our lossesinto a couple of different
categories Paint material loss,utilities loss, production loss
and employee retention loss.
Yep, this one counts too.
All these calculations arebased on a national average RO
(10:27):
value of $4,350, an average of10 paint labor hours on that RO
value and a labor rate of about55 an hour and a low average of
only two redos per month.
So here we go.
Number one cost of paintmaterial loss.
Now, when you have to redo apaint job, you do lose on paint
materials, but you're onlylosing what your actual cost was
on those materials.
You know, after discounts,rebates, statement discounts,
(10:50):
cash investments if any, on apaint contract, not what you
would collect from the customeror the insurance.
That's sales.
That's got your markup in there.
Now, obviously, it's hard togive an average number because
of the variety of scenarios.
The only one true way tomeasure is by what an industry
standard cost percentage wouldbe for your paint and also what
(11:11):
the material's cost percentagewould be as well.
The paint companies have thesenumbers dialed in for years A
good collision center.
Today, their paint cost as apercent of sales would be about
3.9%.
If you're much higher than that, then you've got some other
areas of concern you need toaddress as well.
Your material's cost as apercent of sales would be about
(11:32):
1.7%.
These would be best verified byeither your paint company, your
servicing jobber or a businesscoach or consultant.
All said, your loss in paintmaterials with these two
parameters and two re-dos permonth would be about $723, which
includes two days of rental at$59 a day as well, because if
(11:53):
you have somebody's car in for ajob then you have to stop and
repaint it.
You're probably going to haveto pay for the rental one way or
the other.
Number two the cost of wastedutilities.
Here's another cost that isincurred and should be accounted
for under a re-do.
But it's a hard number toqualify as the cost of gas and
electric varies widely acrossthe US.
(12:15):
Shop owners that understand andreview their P&Ls monthly.
They know what their utilitiescosts are and they do know a
redo adds to that cost, but theyhave no easy way to calculate
it.
That's right, there is no easyway, but I took that as a
challenge, did some research andhere's what I discovered.
Now, based on some booth energyconsumption stats I acquired
(12:37):
from a booth manufacturer andsome national utilities costs, I
was able to come up with somedata that would be helpful and I
was surprised these numbersweren't higher, to be perfectly
honest.
So the national average costfor electricity is about $0.194
per kilowatt hour.
The national average cost fornatural gas is about $1.40 per
(12:59):
therm and average booth runtime,including spraying, flashing,
baking, cool down, was about 1.4hours per average RO.
So, without boring you with allthe math involved, the average
additional energy cost per redowas about $17.30.
And based on two average redosper month, that's $34, let's
(13:22):
call it $35 in wasted energycosts.
I know it doesn't seem likeit's worth worrying about, but
if you think of it this way,it's an additional $5 off your
bottom line for every 30 minutesyour booth runs, and that's
whether you're doing a job ornot.
So keep that in mind.
Number three the cost of lossproduction.
Now, this would be your highestimpact loss to your business,
(13:44):
bar none, unless you onlyproduce one booth cycle a day or
less.
If that's the case, you gotsome bigger concerns to worry
about, right.
Loss production is simply thisyou lose the ability to run
another booth cycle on a payingRO because you're using that
boost cycle to redo a paint joba second time for free.
Once again, using that sampleRO value of $43.50 and two redos
(14:09):
a month, you'll lose about$8,700 per month in lost
production.
So let's add all this togetherto really get an honest look at
how those two little re-dosimpact your business and your
bottom line.
So if we add a paint andmaterial loss of $723, and a
utilities loss of $35, and aproduction loss of $8,700,
(14:33):
that's about $9,500 per monthand that's a whopping $113,500
per year.
I know that's a big number,right?
So you might be thinking thatsounds like bullshit, rick.
I almost never have to redopaintwork, probably less than
one per month.
Well, if you're being honestwith me and being honest with
yourself and that's correct,then let's just say let's cut
(14:56):
that in half.
Then One redo a month stillequals $4,729 a month, or
$56,750 per year.
Not really something to ignore,is it no?
Lastly, there's another costthat nobody talks about, but it
is critical to at least oneperson your paint tech and it
(15:18):
should be important to the shopownership as well and that is
the cost of lost paint techincome.
Now, lost paint tech income isincome the painter misses out on
while repainting a job for thesecond time for free.
Based on that 4350 RO thatwould have approximately 10
hours of paint labor and anaverage rate of $55 per hour,
(15:40):
they'd lose out on $550 of newpaint labor as well as $77 of
lost available working time.
So I came up with that you got1.4 hours of booth process time,
which is all the time you'dspend in the booth final mask,
wipe down, tack, spraying, basecoat, clear coat, flash times,
(16:02):
baking time and cool down time.
So that's a $627 loss per redo.
Annualized out, that's $7,500.
Now, most painters know thatthey're losing their ass every
time they redo a job, but mostof them, if not all of them,
probably don't even know howthey would figure that out right
(16:24):
?
Well, this is as close as Icould come.
Obviously it's going to vary.
These are averages based on afew numbers.
Your local numbers are going tovary, your average RO is going
to vary, but the point is thisthere's a great financial loss
(16:46):
attributed to repainting a jobdue to avoidable contamination.
Even if your shop onlyexperienced a lower percentage
of these redo costs, wouldn'tyou still want to reduce those
costs as much as possible?
I know I would, and I know sowould many other shop owners I
know.
So that's all I got for youtoday, and hopefully this gives
you a pretty good view of whatthose costs look like.
Be sure to tune back in for thenext episode, where we dive into
(17:06):
what preventative maintenanceis and how it not only helps
mitigate these costs but alsoprotects your very expensive
equipment.
Hopefully this little seriesand these episodes are helping
you gain a better understandingon what's involved with redos
and what that cost is and howmuch it impacts your business
and why it's so important toreally work on minimizing these
(17:29):
costs.
We'll wrap this series up nextepisode with preventative
maintenance and what it does tohelp you minimize these costs
and protect your equipment.
Well, that's all I had help youminimize these costs and
protect your equipment.
Well, that's all I had for youtoday.
Thanks again for tuning in.
I really appreciate yoursupport and I hope you have a
great week.
I can always be reached atwwwrickselovercom, where you can
(17:50):
find all my social media linkspodcast episodes, blog posts and
much more.
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