Do you want to know how much money powder coating businesses make yearly? If YES, here are 7 factors that determine the income & profit margin for powder coating companies. In order to have an idea of the amount a powder coating business is expected to make yearly, you should clearly define the service offerings of a powder coating business.
A well – established powder coating shop is expected to offer services like heat treating metals and metal products. They offer their services to anything that needs protection, from your boat, trailer and motorcycle to work trucks and fire trucks.
So, with that in mind, we can estimate what a powder coating business is expected to make but it is important to point that there is no one-mold-fits-all when it comes to how much a powder coating business is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average powder coating business can make yearly.
7 Factors That Determine How Much Powder Coating Businesses Make
Table of Content
- 1. The Size of the Powder Coating Business
- 2. The Location the Powder Coating Business is Covering
- 3. The Type of Powder Coating Service Offered By The Business
- 4. The Management Style of the Business
- 5. The Business Approach of the Powder Coating Business
- 6. The Advertising and Marketing Strategies Adopted by the Business
- 7. The Number of Years the Powder Coating Shop is in Business
- Estimated Profit Margin on a Powder Coating Project
1. The Size of the Powder Coating Business
One cannot conveniently state the amount a powder coating business is expected to make yearly if you do not know the size of the powder coating business. You can not equate the amount a powder coating business that is just starting out in business with a well – established powder coating business that offers robust services.
For example, a common powder coating oven size that would accommodate a variety of products effectively would be approximately 8 x 8 x 12. A new batch convection oven like this will typically cost around $30,000 dollars.
2. The Location the Powder Coating Business is Covering
A key factor that can greatly influence the money a powder coating business is expected to make is if he choose to operate in a location with people that can afford his or her services.
The truth is that, you will struggle to make good money as a powder coating business if you locate the business in an area filled with low income earners or in a ghetto. If you locate your powder coating business close to a highbrow area or an area with loads of automobile repair garages and automobile owners, you are likely going to make good returns from the business.
3. The Type of Powder Coating Service Offered By The Business
Another important factor that will determine how much a powder coating business is expected to make yearly is the type of powder coating services offered by the business. A powder coating business that offers robust services that cover the two types of powder coatings namely; the thermosets and thermoplastic powder coating, and also offer enameling, lacquering, and varnishing metals and metal products, hot dip galvanizing metals and metal products,
engraving, chasing and etching metals and metal products, powder coating metals and metal products, electroplating, plating, anodizing, coloring and finishing metals and metal products, will be far larger than what a powder coating business that only offer services to bicycle owners and other low paying and less tedious projects.
4. The Management Style of the Business
Another key factor that will determine the amount a powder coating business is expected to make is the management style of the business. Trust me, the results you will get when you are good manager will definitely be different from a powder coating business with a poor manager.
The idea is that a good powder coating business will not just retain their old customers, they will also keep getting new customers especially through recommendations and that will greatly influence the amount the business will make annually.
5. The Business Approach of the Powder Coating Business
There are different business approaches that a powder coating business can choose from and no doubt it will greatly influence the amount they are expected to make. Of course, we know that powder coating business may decide that they want to work alone and do their marketing alone, and also a powder coating business may decide to partner with other businesses that will recommend clients to them.
It is easier to find powder coating businesses that offer robust services partnering with construction companies, automobile repair companies, and government contractors that deal with metal products. In essence, an organized powder coating business that works with others will surely make more money than a solo powder coating business.
6. The Advertising and Marketing Strategies Adopted by the Business
Another key factor that will determine the amount a powder coating business can make yearly is the advertising and marketing strategies adopted by the business. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a powder coating business that is engaging in aggressive advertising and marketing to make same amount yearly with a powder coating business that is passive with its advertising.
7. The Number of Years the Powder Coating Shop is in Business
Lastly, another key factor that will determine the amount a powder coating business is expected to make on a yearly basis is the number of years it has been in business. In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well – managed and creativity always come to bear.
For example, in your first fiscal year (FY1) you might make one hundred and fifty thousand dollars ($150,000), in your second fiscal year (FY2) you might make two hundred thousand dollars ($200,000) and in your third fiscal year (FY3) you might make three hundred and fifty thousand dollars ($350,000).
Estimated Profit Margin on a Powder Coating Project
When we talk about the profit margin a powder coating business is expected to make, we must establish the amount a powder coating business charges per job and the expenditure they put in to get the job done.
For example, on the average, the cost of vehicle powder coating is about $700. Vehicle powder coating costs ranged from $400 to $1,000 for the US in 2019. For powder coating small parts like the bumper or grill of your vehicle, expect to pay about $75 each.
As expected, a powder coating company is expected to make up to 50 percent profit margin from whatever they charge their clients. In some cases, it may be higher especially if the cost of carrying out the powder coating project is pretty lower especially if you are able to get cheaper powder coating pigments and materials.