Masonry Magazine March 2009 Page. 29
The King of the Concrete Jungle
TS 410 STIHL Cutquik
The X2 Air Filtration System extends the life of filters for up to a year. The newly redesigned anti-vibration system reduces vibration up to 43% over previous models. Both systems allow you to work longer with a powerful and fuel-efficient, low-emission engine. Comes with 12" wheel.
TS 420 STIHL Cutquik
Includes all of the technologically advanced features as the TS 410 STIHL Cutquik cut-off machine, but with a 14" wheel.
TS 700 STIHL Cutquik
Equipped with the X2 Air Filtration System, this machine is designed for extended service cutting. It features a five-point vibration control system, integrated water attachment and a durable polymer protective housing. Comes with 14" wheel.
stihlusa.com
Addison,L
McCann Industries, Inc.
50. Rowing Road
627-6707
Cedar Rapids, IA
Campbell Supply Co
2127 N. Towns Lane NE
(0190395-0961
Chicago, IL
'Leary's Contractors E
4554 W. North Ave.
(77252-6600
Chicago, IL
Tunek & Son's
100$. Jefferson St
850-130
Chicago, IL
Way-Ken Supply Co.
400 W. Belont Ave
Crystal Lake
Lee Jensen Sales Co, Inc.
10. Terra Cotta Ave
Davenport, IA
Gierke-Robinson Co.
3809 West River Road
322-1725
Dubuque, IA
220 Fredress Lake Road
ExPeoria
Altaferents
601 W. Washington S
604-9898
V59-387078-3
Number 1 Worldwide
Hanover Park,
Bracing Systems, Inc.
4350 Gary Ave
1830605-2732
Lemost
Concrete Clinic
13005 M St
(830) 257-5440
Morton,
Mathis Kelley Conat Supply
1046 W. Jefferson St
(309) 206-4733
OwA
Carroll Distr & Const Supply
205 South low Av
541)610-1908
Palatine, L
Multiple Concrete soc
20284 N. Rand Road
(347)438-2000
River GIL
Murphy Contractor Equip
2420 N. River Rd.
(708)456-4000
Urbandale, IA
Logan Contractor Supply Inc.
4101 100m St
(515) 250-9048
Warrenvile, R
&JConstruction Supply
30W 180 Butterfl
(530)350-1000
Waskog IL
Burris Equipment C
2216 N. Green Bay R
(847)336-1205
STIHL
READER SERVICE #214
My Competitors Are Idiots!
# MASONRY NEWS CONTRACTOR TIP
How are my competitors doing work so inexpensively? How are they coming up with these low numbers? With the slowing economy, I have heard it all lately. I always ask contractors why they're going to do a job if they're going to lose money on it. Unless, of course, you need the practice doing masonry work and have cash to burn.
This is similar to what happened in Ohio in 2001 through 2003. Mason contractors were throwing low numbers at every job that was bid. I had general contractors telling me that "so-and-so masonry company was 20 percent to 30 percent under our bids, and we needed to match them. I remember telling one person that our bid was right, and the other masonry contractors were just not covering all their costs. As I predicted, these low prices got the competition in trouble, and several shut their doors. The same thing is going on today in many parts of the country.
This leads to the question of who should be pricing your work, you or someone else? Does that sound like a strange question? Think about it: Are general contractors and owners dictating to you the going price in your area? If so, do you do their work for that lower price, even if you know you can't be profitable? How could a general contractor know more about what it costs to get a job done than you do? You are the expert in the masonry field, not him. So, how does he know what you should be charging? The truth is, he doesn't.
With so many questions on this subject, I decided to bring back this tip I wrote a few years ago, for I got a terrific response from it.
You've probably been in this bidding situation: The general contractor wants to know what you are charging for labor per block laid. You tell him $4 per block. He says, "That is way too high. The going price is only $2.75 in your area." How are you going to find out what the going price in your area really is?
I attended a seminar at the World of Masonry during which Charles Vander Kooi shed some light on this subject. Charles said 70 percent of masonry contractors go out of business in the first three years, and only 15 percent make it to the 10th year of business. So, what's the going price in your area? It is what those contractors who are going out of business are charging. With that being the case, do you want to work for the going price? I don't. The key to survival is to know what it costs to do the work, so you can assure you cover your costs plus get a fair profit out of the work.
As a mason contractor, I recommend you do production studies and use the history of what your own employees can accomplish each hour (or day) to determine what it costs your company to get the work done. Then, based on the results of your studies combined with your overhead costs, price your own work. By the way, don't forget to put a little profit in there for yourself; after all, that's why you are business. Then, the next time the general contractor calls and says your bid is higher than what the going price is in your area, tell him you're thankful! It is a good sign that you are probably not one of those contractors pricing yourself right out of business.
Damian Lang is a mason contractor in southeast Ohio who has three companies that do combined sales of $20 million. He is also author of the book "Rewarding and Challenging Employees for Profits in Masonry." To order a copy of his book or attend one of his seminars held specifically for mason contractors, call 800-344-7688.
Provided by Damian Lang. President of Lang Masonry Contracters, Inc., and EZ Grost Corp.
READER SERVICE #314