Your Budget 2012

Well it's that time of year when some companies are preparing or have prepared their budgets for 2012.

Our company, like most companies today, are trying to figure out how we can stay in business. Of our two branches in Phoenix and Colorado, our managers completed their budgets, and are forecasting the following:

Branch #1 - Is forecasting that we will lose .90 cent for every yard we pump, and that for every hour we work can make $1.10 per hour - maybe!

Branch #2 - Is forecasting that we will lose .50 cent for every yard we pump, and that for every hour we work will lose $2.80 per hour.

(Why?) Based on our competition's LOW RATES, FLAT RATES, LOW YARDAGE RATES, and etc.

Why would anyone stay in the business with this type of forecast, except a hardheaded Irishman that believes... It has to change!

Think about it, we worked through the busiest period I have ever experienced, and the largest false economy also during 2000's time, and most everyone in the pump industry gave their products away due to their business practices, including the two major manufactures who either went broke or close to it.

Pumpers in most areas did the same, including Colorado where you had national companies; such as Brundage Bone, Pumpco, Lucht, Southwest, Robinson, O'Brien, etc. that probably lost close to over 300 million dollars in this industry, while other building contractors, suppliers, etc. made a fortune during this busy time. Why the difference?

Why does the Pump Industry Not Charge for their services in order to make a profit?
Owners only look at jobs for concrete placement rather than how much money can we make on the job.
Salespeople are allowed to quote jobs at unrealistic pricing due to the fact it does not affect their pay. All salespeople should be on a minimum salary, plus commission on the price that sell the job at, also based on the collection of the accounts.

Let's all show up at the World of Concrete ACPA sponsored discussion and speak out on the problem our industry needs to address... Charging a Profit for our Services!

Please feel free to contact me if you have any questions or comments on our industry.

Thank you.

A Concerned Concrete Pumper

Richard O'Brien

Richard,

Every year you and others try. We hear this cry a few times a year. The ACPA really does not support this as something for them to spend time and money on, let alone listen to you. As long as the membership money is coming in, its all good.

I think also the WOC should be every three years. Not every year. This is a huge financial burden on the manufactures and especially the past few years and 2012 does not make these people money. Just never understood how pumpers actually make pofit just pumping concrete. You are at the mercy of so many things and control of non. Especially buying new pumps at the over priced numbers.

Anyway. Yes Richard. I hear and share your frustration but have heard it for many years as you have. WOC is just a BS session and nothing ever really gets done there especially with the small turn outs of the past few years and the small crowd expected this year.

You would think we all learned a great lesson. BUT???? It was tough making money in good times let alone now.

Appreciate your efforts Richard and respect your thoughts on this. I just do not see the ACPA as a means of correcting it. But just do not have another answer for you.

Good Luck with it Richard. Hope you are well.

I dont think its a matter of support, the ACPA does want everyone to make money but the ACPA can't work to raise prices, that would be price fixing, so the ACPA works on and spend lots of time on knowing your costs to make sure companies know what it cost to pump concrete. Many companies pump for less than cost and that is because they dont know or understand what it cost to pump concrete, or they look at pumping as an investment thinking if they just get the job it will give them time to build their business.

The ACPA does a great job and all of its members want to become profitable. The free market is at work here, no matter what anyone tries to do you can not control your competitor. No blame towards the ACPA, in fact the ACPA is the only group trying to help.

This is just my 2 cents.

Your Right. Better language for this point. ACPA cannot control it. Yes you cannot control the competition. Your right.

Just and old sore subject. Everyone seems to know it but few really bide by it. Comes down to a pump going out or sitting..... Well if the pumper gets a go, more then not will go no matter pricing. Unfortunite but true.

Hope things get better someday. Just do not know how the industry is surviving right now.

I am going to go out on a limb and state that everyone in this industry knows exactly why pricing is low and manufactures sell overpriced equipment. In truth our focus of the industry is not pumping of the concrete! Everyone wants the ----? One machine is good for about ------- in ----. Ten machines are good for about -------- in ----. One could probably start there own army with a fleet of three hundred? It started forty years ago and all the kids have learned from the ones who have gone before. It’s the way it is! Until the addiction to the ---- is taking out of the industry I say it will stay like this. All you can do is make the best of it and try not to act like you don’t do it…..

Sincerely,

Seed

Richard,

     Get with your sales staff and raise the prices. When you salesmen pull up on a job dont say"I CAN DO IT CHEAPER".  How come people buy caddliacs when they could just get a chevy alot cheaper?  How come people pay 20 for a hair cut when they could go to Bo Rics for $8.  Why....Because of percieved value! 

   If you view your service as the same as the next guy then keep charging what they charge.  I think you should offer the caddliac service!!

         1. Having the best operators in town, who care about the contractor.

         2.Having clean well maintained equipment,  

         3. Manager out of the office and on jobs daily. 

          4. Salemen on the job alot glad handing everobody thanking them for there business. Coffee and pizza on big pours.

          5.Stopping buy the job even when your not pumping that day just to see how the previous pour went,and what you need for the next pour

           6. When a contractor calls the office last minute, NO ATTITUDE TOWARD HIM FOR LAST MINUTE BOOKING. If you just cant cover it call your competor for him to try to book a pump threw you for him.

          7. Remember we are providing a service to make the placement of concrete as fast and efficent as possible to help that contractor make MONEY!!!   

What I see is someone trying to raise awarness levels and get people to take another look.Once one really looks at it,perhaps a new trend.Then again,there's whores everywhere.

Let's all show up at the World of Concrete ACPA sponsored discussion and speak out on the problem our industry needs to address... Charging a Profit for our Services!.....

What day will this discussion be held?