Production Rates Part 1: Why You MUST Have Set Production Rates
Hi, my name is Dalton, I am one of the DYB Coaches, and today I am going to talk about production rates.
Most painters will guess, they guess how many hours a job is going to take, they do use past knowledge, what you’ve done in the past, and some of you, I would say can guess very well.
It’s hard to replicate that in the future if you end up hiring a salesperson later, they do not know what you know, so they would never guess the same number that you would.
You need to be able to measure a job by some unit, either square foot, linear foot, or just a count of how many.
If you spend the little time now and get it right, you are going to be able to replicate estimates from now on, it doesn’t really take very long, it is very easy to do, you just have to spend a little bit of time now to get your production rates down, and you will be able to use them from now on.
There are several reasons to know your production rate if you want to sell your business, and I know most people don’t get in the business to sell the business, and maybe a year from now, 5 years from now, you may not want to sell it.
But it is possible in the future that you either need to or you decide that you want to sell it.
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And to do that, you are going to need to know your production rates, but if you use production rates, they will easily be able to reproduce what you are doing in your business, even without you.
Even if you are not selling your business, you really need to know your production rates, what happens if you have an accident, or you get sick, and you are in the hospital for a month?
Who’s going to do your estimates? One of your painters to come in on short time and do some of your estimates, but again, they are not going to have the same knowledge as you, so they are not going to estimate the same.
But if you have production rates, they are going to use the same production rates that you set, so their estimates should end up being exactly like your estimate.
And your company can survive whether you are in the field, doing the sales, or on vacation or in a hospital.
Another scenario would be, scaling your business. You want to grow, maybe you want to step back and just be an owner, you are not in the field, or you are not doing sales anymore, you have a salesperson or a sales crew.
Again, you are going to want to reproduce all those same numbers, and you can only do that with production rates because again, they are not going to be able to guess how many hours that you guessed.
Another benefit of knowing your production rate is you are going to know exactly how long a job is going to take, you know if you are going to finish at 2 o’clock on Thursday.
You know if you have time to start another job on Thursday, or you can set it up or you are going to start the next job on Friday.
There will be a lot less downtime, let’s say you guess too short, and you end up having to move the start date of the next job by 2 days, which means the job you have scheduled after that is going to be at least 2 days off, depending on your guess of the second job.
It will also help you forecast how many painters you need in the field, let’s say in May, you’ve already got July sold out, you are going to know how many hours you have sold for July.
Divide that by how many days you are going to work, and you will know how many painters you need. Also, the bonuses will be based on production rates and not guesses.
This is the end of part 1, part 2 will come out in a few days, and I will show you exactly how to work the production rate calculator that I set up.
I am Dalton a DYB Coach, if you need to get hold of me for any reason, you can meet me at firstname.lastname@example.org. Thanks.