Masonry Magazine September 1964 Page. 16
NEW LIGHT WEIGHT
structural glazed facing tile
STAR LITE
* EASY CUTTING AND DRILLING
* 8" x 8" x 16"
* PRECISE DIMENSIONS
* GLAZED TWO FACES
* FAST LAY-UP
STAR-LITE structural glazed units offer many unequalled advantages to the contractor. The large size reduces handling by up to 50%; easy cutting and drilling (even with hand tools) for convenience outlets and utility runs; rigid uniformity to size permits " or " mortar joints and through-the-wall one-unit economy.
Write for the full story. STAR-LITE may help you bid that next job successfully and profitably.
STARK
CERAMICS, INC.
CANTON 1, OHIO
Maximizing Profit
(continued from page 15)
Use direct costs also, but you must remember that you have other costs which must be recovered before you can make a profit. The larger your volume of work or the smaller the indirect costs, the less each job will have to carry (as an example -if your automobile insurance costs $120 per year and you drive 1,000 miles, this cost will be 12 cents, but if you drive 10,000 miles it will be a little more than 1 cent). Everything you receive in excess of your direct costs will contribute to these indirect costs and profit. If you do not exceed your direct costs by enough to cover your indirect costs, you obviously will lose money.
These predicted costs can be set up as a budget, with volume by month and costs by month, and used-as well as to assure an overall profitto predict cash requirements so that you can make payrolls and be assured of taking discounts on materials. The discounts in the building trades are usually relatively large, and in order to make money on your work, it is almost a necessity that these be taken.
I have with me today a book published by the National Concrete Masonry Association for manufacturers of concrete masonry units, in which they present the various aspects of cost control and provide an outline for those who wish to begin such a cost system.
Next, I would like to delve into the area of what makes a successful businessman, and most of my information from an SBA Management Research Summary entitled "Factors in Small Business Success or Failure." This was taken from interviews with small businessmen, and the successful and unsuccessful or failure categories were determined by whether they made a profit or not. This seemed like an excellent gauge. The first point which struck me as being very interesting was that there was very little difference in the accounting procedures between the successful and unsuccessful groups. Both had adequate records and accounting procedures. But the effective use of the accounting records in day-to-day decision-making varied considerably. Needless to say, the successful businessmen used the data available. Also, the great majority of both the successful and unsuccessful firms did not set a definite profit margin on their products or services. The general attitude was that profit was largely a function of the need to meet competition. This need, it was felt, could be met most effectively with a flexible pricing policy. I am sure that this makes all of you feel a lot better.
It was generally agreed that success in a small business was likely to come to the following man: the one who works long, hard hours; has the ability to recover quickly and press on in the fact of setback; and is competitive in attitudes and actions. He is willing to take a minimal profit from his business until he achieves a firm financial position, and he masters the technical (continued on page 20)
MASONRY. September, 1964