Your National Association, ACPA, is considering cancelling the fall meeting seminar in Denver that is designed to wake-up our industry to start charging for our pumping services. I would appreciate it if each and everyone of you would please contact the ACPA and tell them how much you have enjoyed or benefited from this type of meeting and would surely support it. Our industry is now receiving a wake-up call saying it is time to start charging for our services. I do not believe that we will ever see this large of a building boom that was based on the housing industry ever again. We must all realize as a company you will not be able to achieve utilization based on volume pricing at 110%-120% utilization of your equipment, instead you may be only able to achieve maybe 40% utilization of your equipment. This in turn means our industry as an industry may have to double your pumping rate in order to break even now and in the future. As an industry I would appreciate it if you and other pumpers would sit down and figure your true costs of rental pump company, and what it needs to charge today based on these costs. Example: Figure your costs Y.T.D. on the following. Office Costs - Your costs of your office operations such as manager, dispatcher, bookkeeper, lights, gas, rent on the portion of the building you occupy - (Total Hours Billed Y.T.D. divided by Office Cost Y.T.D. equals Cost per Hour.) Sales Costs - Cost of your sales force, office costs, pick-ups, salary, expense accounts, advertising, etc.(Total Hours Billed Y.T.D. divided by Sales Cost Y.T.D. equals Cost per Hour.) Operator Costs - Cost of salary, fringes, uniforms, laborers, and etc.(Total Hours Billed Y.T.D. divided by Operator Cost Y.T.D. equals Cost per Hour.) Cost per yard - Cost portion of rent on building, mechanics, fringes, gas, lights, costs of repair pumps, trucks,, hotsy's, clean-up, shop, yard or etc.(Total Yards Pumped Y.T.D. divided by Repair and Maintenance Cost Y.T.D. equals Cost per Yard.) Costs of Equipment - Per Hour - Based on lease payments or payments, etc. divided by the hours billed to customers.(Total Hours Billed Y.T.D. divided by Cost Y.T.D. equals Cost per Hour.) I will share with you our costs Y.T.D. based on the above forecasts run though the first quarter. It is our slowest time of the year, and is sending a message that I need to pay attention to. Cost of Operators Y.T.D. $ 56.59 Hr. Based on hours billed Selling Expense Y.T.D. $ 13.50 Hr. Based on hours billed Administrative & Office Exp. Y.T.D. $ 46.63 Hr. Based on hours billed Total Costs Y.T.D. $ 116.72 Hr. Based on hours billed Cost of Equipment Y.T.D. $ 37.21 Hr. Based on hours billed Total Costs Y.T.D. $ 153.93 Hr. Based on hours billed Repair Costs per yard Y.T.D. $ 3.70 Yd. Based on yards billed You can see by the above costs and what we are charging customers in our areas of operations, and what a loss we may be having. We would have to raise our prices at least 40-50% higher in order to break even. The current competition in our area will not allow that due to each one of them trying to create cash flow. For comparison, would you please fill out the attached cost sheet for your company and return it for our industry information. You do not even have to put your name on at the top of you don't want anyone to know, though I would like to know what State. Thank you in advance for your input. Sincerely, Richard O'Brien SEND ME A DIRECT E-MAIL IF YOU NEED THE FORM SENT TO YOU. Company Contact No. State: From Costs of Operations 1st Qtr 2009 Billed Hours Cost per Hour Administrative & Office Exp.  Y.T.D. - ÷ 0 = 0 Selling Expense                        Y.T.D. - ÷ 0 = 0 Cost of Operations  Y.T.D. - ÷ 0 = 0 Total Costs                                Y.T.D. - ÷ 0 = 0 Cost of Equipment   Y.T.D. - ÷ 0 = 0 Total Costs                                Y.T.D. - ÷ 0 = 0 Cost per Yard Repair Costs per yard Y.T.D. - ÷ 0 = 0

Positive cash flow that results in a profit over and above all costs.  What a refreshing idea.

Hey i heard the same thing. I dont think it will happen. The ACPA just lost Pumpco another big hit.

""WE'RE NOT IN KANSAS ANYMORE TOTO""

MAYBE  it's o.k. if the meeting is cancelled

MAYBE it's o.k.   if we never hear from the ACPA again

MAYBE it's o.k. if the primary national association for concrete pumpers were controlled and financed by concrete pumpers  ( don't remember seeing pumping companies as such significant voices on the pump manufactures associations )

MAYBE it's o.k if there were term limits on leadership positions

MAYBE  it's o.k.  if everyonce in a while ( with the exception of Mr. O'brien, who does already  ) someone from the ACPA should contribute to a concrete pumping site  ( ie.  www.concretepumping.com ) 

MAYBE it's o.k. if as an industry we self police, that is serious safety violations are not tolerated,  for those that practice safety this shouldn't be a problem, for those that throw safety to the wind watch out.  

MAYBE it's o.k. to propose a specific training schedule before specifice size machines can be run.

MAYBE IT'S TIME FOR EVERYONE TO REALIZE THE PAST HAS NOT WORKED,   IT'S TIME TO GET INTO A DIFFERENT CENTURY !!!!!!

MAYBE IT'S TIME TO START SAYING MAYBE

steve

tristatepumping@gmail.com