New Profit Center: Custom Paint

Jan. 1, 2020
Aron Glaser, Greg Blackford, Jr., and Joe Sweet all share a common trait that has helped make them successful in the custom paint business. All three have been fascinated by custom paint since they were young and each of these shop operators is invol

Aron Glaser, Greg Blackford, Jr., and Joe Sweet all share a common trait that has helped make them successful in the custom paint business. All three have been fascinated by custom paint since they were young and each of these shop operators is involved hands-on with that part of their business.

“I’ve been doing this since I was ten years old,” says Blackford, owner of Hot Rods by Greg in Lake Bluff, Ill. “I started out painting bicycles.” Until recently, Blackford operated a collision repair business and the custom business under a single roof, but he’s chosen to focus solely on custom work, with an emphasis on street rods.

Shops that perform custom paint work claim margins can range anywhere from 20 percent to 60 percent, although those that do their estimates on a per-job basis admit they sometimes miscalculate and have to eat their mistakes. And that can be costly. A custom paint job can take as long as 300 hours and cost a customer as much as $12,000. Those shops that charge by the hour bill customers anywhere from $50 to $75 per hour for labor and anywhere from $30 to $75 per hour for paint. The special paint used for custom jobs runs in the range of $70 to $300 a quart, and most jobs require several quarts. Specialized paints, such as those that appear to change color depending on viewing angle, can run as much as $800 a pint.

In some ways, the custom paint business is a natural fit for body shops, which can leverage their investment in paint booths. Because it can take years to build up a custom paint clientele, the collision repair business can help carry the custom paint business during its formative years. But there is a downside to mixing the two businesses. A custom paint job can tie up a paint booth for an extended period of time—a reality that drove Glaser and his custom paint team to do their work after regular business hours.

Glaser, of Louisville, Ky., eventually decided to create a spin-off business from his collision repair facility. Called Twist and Shout Race Paint, the custom shop uses a lot of orange and yellow tones for its racecar clientele—although green and gray are becoming more prevalent. “Flames are making a comeback,” adds Glaser.

Blackford agrees. “Real flames” that are painted on top of and underneath the car are particularly popular right now, he says. “Cartoon characters and flames will always be around.”

Meanwhile, Sweet, owner of The Speed Shop in Loves Park, Ill., specializes in custom paint and body work for import sport compacts, such as Volkswagen Jettas. Sweet hasn’t noticed any particular paint design trends, but he has seen a tremendous increase in business. The company, which does some collision repair work, but focuses mostly on custom work, grew 35 percent its first year and 52 percent in year two.

More than half of The Speed Shop’s business comes from custom body work, such as extending fenders. So Sweet advises other shop operators interested in custom paint to consider adding custom body work as well. The ability to handle both can mean the difference between winning and not winning a customer’s business. 

When considering the pros and cons of adding custom paint to any collision repair facility, shops should expect to pay higher salaries for painters who work on custom jobs than they do for the collision repair side of the business. The reason is finding such craftsman can be a real challenge. Glaser has two people in addition to himself who are devoted to the custom paint side of the business. One was a recent art school graduate and the other started out as a detailer. Both learned airbrushing skills on the job.

And there is one final note to consider if you want to tap into this segment. If you don’t do a lot of marketing in your existing collision repair business, you’re going to have to start. Grassroots marketing is vital for any body shop considering the custom paint business. Glaser, Blackford and Sweet all participate in car shows nationwide—and the cost to attend can run around $3,000 per person per show including travel expenses. But the rewards of smartly marketing your new venture can make this type of investment well worth it.

About the Author

Joan Engebretson

Engebretson is a former editor-in-chief of America's Network. She has covered the communications industry since 1993. In 2002, she won a national gold award from the American Society of Business Publication Editors for her columns. Previously, Engebretson was the editor of Telecom Investor, a supplement toAmerica's Network.

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