Starting a spray foam business – what I wish I knew
I have been in the spray foam business for 7 years now, started solo and now run a crew of 4. Wanted to share what I wish someone had told me when I started.
Equipment: Do not cheap out on the machine. Buy a Graco or Gusmer. Factor in 3-5k per year for maintenance and repairs no matter what.
Chemical: Build a relationship with ONE distributor. The pricing deals are worth it. Store drums properly – temperature swings ruin material.
Business: Get spray foam specific liability insurance from Day 1. Regular contractor insurance often does not cover SPF claims. Require a signed contract on every job.
The hardest lesson: Price for profitability, not to win bids. I lost money for 18 months trying to compete on price with cheap operators. Once I raised prices 25 percent, I got better customers and actually made money.
Happy to answer questions for anyone starting out.
This is excellent advice especially on pricing. I wasted 2 years undercutting everyone and wondering why I was always broke. My accountant finally showed me I was making about $8 per hour after expenses. Now I target $85-95 per board foot installed for closed cell residential and I book 6-8 weeks out. The customers who push back hardest on price are usually the ones who will also push back on every other thing. Let them go to the cheap guy.