Paint & Material (P&M) and sublet work can represent up to 19% of a shop’s sales, making them crucial areas to optimize for profit. Here’s how top-performing shops handle it:
Sales Accuracy: Estimators who track labor thoroughly—including panel prep, masking, and color tinting—capture more reimbursement and improve gross profit.
Material Management: Keep paint costs around 3–4% of sales and non-paint supplies near 1.2–1.5% by monitoring inventory and choosing vendors wisely.
Sublet Strategy: Mark up sublet work appropriately (around 33%) and include parts and labor to safeguard margins.
Waste Reduction: Over-mixing paint, excessive primer, improper masking, or discarded materials directly erode profit. Streamline processes and measure usage to cut waste.
Data Purity: Track costs accurately by coding paint, non-paint, and shop supplies separately, and verify invoices to ensure precise expense allocation.
Original article: “Financial Series: Optimizing Paint and Material and Sublet Gross Profit” by Steve Trapp, FenderBender, Aug. 13, 2025
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