Devon S. posted an article on Markup and Profit Blog - Feb 1, 2012, 9:12 pm
May I make a wish for 2012? That suppliers and manufacturers would stop using pictures of guys and gals wearing a brand tool belt. Those new belts haven’t spent a minute on a job site, they even look stiff and uncomfortable. Worse, the screwdrivers, hammers and pliers have no paint or dirt on the...
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Devon S. posted an article on Markup and Profit Blog - Jan 27, 2012, 12:46 pm
Things are looking up. The contractors that I talk with daily on the phone are projecting good things for 2012. Many are telling me that they are getting more calls than last year and certainly more than two or three years ago. Granted, the big, high budget jobs are not in the abundance they were ba...
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Devon S. posted an article on Markup and Profit Blog - Jan 23, 2012, 5:01 pm
One of the things I hear from contractors all too often is that they send out a mailing piece, or they place an ad in a newspaper or magazine and they get little or no response. The same could be said for websites. They spend money building their website and they get few if any calls. If you aren�...
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Devon S. posted an article on Markup and Profit Blog - Oct 31, 2011, 4:10 pm
Wasn’t that what the Rabbit said in the fairy tale, Alice in Wonderland? It’s my opinion, that being late is almost always a habit. It’s a bad habit. If you’re a construction business owner who has the habit of being late, change the habit. If you have employees who are perpetually late, yo...
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Devon S. posted an article on Markup and Profit Blog - Oct 25, 2011, 1:55 pm
We are approaching the time of year when the subject of bonuses comes up. Your employees might be saying, “Do you suppose they will pay us a Christmas Bonus this year?” Here’s my stand on bonuses. If you work for me 8 hours and I pay you for 8 hours, we are even. I don’t owe you, you don�...
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Devon S. posted an article on Markup and Profit Blog - Oct 20, 2011, 8:00 am
Brian Tracy sent out a quote last month, it read, “Nothing is more expensive than a missed opportunity.” H. Jackson Brown, Author I talk with contractors all the time who miss one opportunity after another and never seem to connect the cost of this miss. - Are you following up with your previ...
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Devon S. posted an article on Markup and Profit Blog - Oct 17, 2011, 8:00 am
This is part of an email I received from a very frustrated general contractor: Recently my electrician told me that the client called him directly one evening to ask why there is no electricity in one part of the house and my electrician guided him on how to reset a GFCI outlet that was purposely t...
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Devon S. posted an article on Markup and Profit Blog - Oct 13, 2011, 8:00 am
Have you checked out how you come across with your new potential clients lately? Are you answering their questions? Are you helping them get their projects built? It is too easy for employees to “do their job” and lose track of what the client wants. Without proper guidance from you, employees...
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Devon S. posted an article on Markup and Profit Blog - Oct 10, 2011, 8:00 am
I’m hearing far too often from both contractors and clients about contractors deliberately underpricing jobs so they can come back later and write change work orders at inflated prices. They do this so they can sell the job by having the lowest price, and use the change work orders to recoup some ...
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Devon S. posted an article on Markup and Profit Blog - Oct 6, 2011, 8:00 am
The final item on our list of things you can do to assure positive cash flow is to avoid debt. If you are in debt, set the goal of becoming debt-free. It is so easy to gather some bills and start a small debt load. What we normally see is credit card debt or maybe a bill with suppliers or sub cont...
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Devon S. posted an article on Markup and Profit Blog - Oct 4, 2011, 8:00 am
Ben Franklin said, “In this world nothing can be said to be certain, except death and taxes.” You aren’t in charge of the first one, but you can take charge of your taxes. Far too often when contractors come to us for help they are behind paying one or more of their taxes. Don’t let this ...
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Devon S. posted an article on Markup and Profit Blog - Sep 29, 2011, 8:00 am
Michael, I reached out to your consulting organization (CPR) about a month ago when I was at my wits end with my construction business. It was very late one night when I stumbled upon your website looking for some practical training aids, seminars, education, or anything to help me. I think it was ...
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Devon S. posted an article on Markup and Profit Blog - Sep 29, 2011, 8:00 am
It’s important to set goals for your business. It’s also important to track, on a month by month basis, how close your actual finances are to those goals. You need to know if your sales are coming in close to budget, and if your overhead expenses are in line with your budget. If you do your ...
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Devon S. posted an article on Markup and Profit Blog - Sep 27, 2011, 8:00 am
Cash flow refers to the funds coming into your business and the funds flowing out. You need to have enough cash on hand at any point in time to pay all your bills, but sometimes the cash flowing in stops. And sometimes, bad things happen and more cash has to flow out than you were prepared for. To ...
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Devon S. posted an article on Markup and Profit Blog - Sep 22, 2011, 8:00 am
In order to have a positive cash flow, it helps to know what your cash needs are today, in six months, and a year from now. Few people take the time and effort necessary to know their cash flow needs. It takes some thinking and research. To start, project your overhead expenses on a monthly basis...
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Devon S. posted an article on Markup and Profit Blog - Sep 20, 2011, 8:00 am
Having too many employees will hurt your cash flow. If you find yourself struggling to make payroll, there could be a lot of things wrong and one of them might be that you have too many people on that payroll. It is not uncommon for contractors to call me and lament that they aren’t making any m...
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Devon S. posted an article on Markup and Profit Blog - Sep 15, 2011, 8:00 am
If you are a contractor who wants to maintain a positive cash flow in your construction business, don’t forget your Change Work Orders. When a client requests a CWO, you need to make sure the paperwork includes a payment schedule that keeps your cash flow positive. To begin, your contract needs a...
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Devon S. posted an article on Markup and Profit Blog - Sep 13, 2011, 8:00 am
If you want positive cash flow in your construction business, make sure you’re using the right payment schedule on your contracts. Your contracts should have a clearly outlined payment schedule, listing the down payment, all progress payments and a final payment, due on day of substantial comple...
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Devon S. posted an article on Markup and Profit Blog - Sep 8, 2011, 6:11 pm
You’ve got to be kidding. Does the construction industry really need more problems? And shouldn’t the government be helping us instead of hurting us? This article posted today in the Wall Street Journal is a warning to every construction business owner. Today they are aiming at the large builde...
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Devon S. posted an article on Markup and Profit Blog - Sep 8, 2011, 8:00 am
If you want positive cash flow in your construction business, you need to create accurate estimates of your jobs. If you forget to include the cost of insulation on the job, you’ll be paying for that insulation out of your own pocket. If you estimate too low, you’ll pay for part of the job out o...
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Devon S. posted an article on Markup and Profit Blog - Sep 6, 2011, 8:00 am
It’s a basic principle: Cash flows into your construction business when you sell a job. Cash flows out when you pay the costs of the job and your overhead expenses. If you sell jobs for less than what it costs to build the job and pay your overhead expenses, you’ll get behind. You won’t have ...
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Devon S. posted an article on Markup and Profit Blog - Aug 25, 2011, 12:49 pm
Chris Widener is one of my favorite motivators. Chris always has good things to say, he recently wrote: “When I was in college, I heard someone say something that has been with me ever since. It was something that demonstrated to me a positive attitude and the choice to take something that most p...
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Devon S. posted an article on Markup and Profit Blog - Aug 17, 2011, 4:26 pm
I’ve encouraged you over the last few years to round up at least three separate sources of financing for your jobs. If you know two banks and a broker that you can safely refer clients to, it can be easier for you or your clients to obtain financing when needed. Some construction business owners w...
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Devon S. posted an article on Markup and Profit Blog - Aug 15, 2011, 11:12 am
I hear complaints continually about a lack of business, employee problems, prices that are too high (so says the client), and on and on. I’ll agree that things are bad, but they aren’t insurmountable. Brian Tracy recently quoted O.B. Smith, “Confidence and enthusiasm are the greatest sales pr...
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Devon S. posted an article on Markup and Profit Blog - Aug 12, 2011, 2:29 pm
I spoke with a friend the other day about his work with a well-known promotional company. He’d been hired to help bring in and manage new business. My friend isn’t new to sales. He’s sold at all levels including representing major corporations here in the US and in Europe. He knows sales, and...
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Devon S. posted an article on Markup and Profit Blog - Aug 5, 2011, 12:42 pm
We were on the Washington coast last weekend. On the way home I passed a billboard on the side of the road and boy, did it catch my eye. It loudly declared, “We will build your new home for $32 a square foot.” Oh my. $32 a square foot to build a complete new home. I wanted to stop and take a pi...
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Devon S. posted an article on Markup and Profit Blog - Jul 29, 2011, 11:00 am
Brian Tracy sent out a really great quote this morning. “The secret of business, especially these days, is to focus relentlessly on your unfair advantage – the thing you do that others don’t.” – John Rollwagen Gang, that is so easy for contractors it’s not even funny. I’ve preached...
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Devon S. posted an article on Markup and Profit Blog - Jul 26, 2011, 5:39 pm
I was talking with a good friend this morning, he told me about some recent quotes he received from a few of his specialty contractors. He said he asked for a quote on a given job, and the quote he received from this sub was way higher than expected, based on past jobs they had done together. When ...
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Devon S. posted an article on Markup and Profit Blog - Jul 19, 2011, 6:32 pm
Got a note in the other day. Does it sound familiar? “We recently bid a job that was given to us on Wednesday to be completed the following weekend. It entailed 5 offices measuring 12X10 X7. These offices were furnished and carpeted. Our bid was to move the furniture into the center of the room,...
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Devon S. posted an article on Markup and Profit Blog - Jul 11, 2011, 6:02 pm
On sales calls, do you actively look for “add-ons” that will boost the overall sales price of the job and in turn your total sales volume for the year? One of the traps that contractors get sucked into is worrying about the numbers on individual jobs. They are busy trying to figure out their ov...
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Devon S. posted an article on Markup and Profit Blog - Jul 5, 2011, 2:33 pm
Some of you may remember Wilma Rudolph. She was considered the fastest woman in the world in the 1960′s and competed in two Olympic games in 1956 and in 1960. I remember watching her run and often wondered at her ability to do so well. She was a remarkable athlete and a great person. She said, “...
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Devon S. posted an article on Markup and Profit Blog - Jun 30, 2011, 10:04 pm
I read an article this morning where the author talked about passing savings on to clients. While this sounds well and good, I would caution you to place this low on your list of priorities when you’re putting a job together. You have worked years learning your trade, or at least most of us have....
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Devon S. posted an article on Markup and Profit Blog - Jun 28, 2011, 5:22 pm
A client sent this note, in response to our last blog post: “I have an ethics question… I’m hoping that you might have some better insight than I. I had a client call me this morning… converting a garage into a rental unit. I went out to take a look. Electrical was not done to code… o...
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Devon S. posted an article on Markup and Profit Blog - Jun 21, 2011, 3:07 pm
This article was originally published in our June 15 newsletter, and it has garnered more responses than usual. Two kinds of responses – notes of agreement, and more “unsubscribes” than usual. It was loved and hated, so we are posting it here for more to read. Does character really matter? Do...
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Devon S. posted an article on Markup and Profit Blog - Jun 17, 2011, 3:17 pm
I talked with a husband/wife team about their business and what they could do to promote it. The young lady got to the heart of the matter when she said, “I have to get out of my office and reach out to people.” You need to make a habit of getting out, getting “amongst ‘em” every day. It...
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Devon S. posted an article on Markup and Profit Blog - Jun 13, 2011, 3:19 pm
I read this comment on a forum recently: “We’re a customer service company that just so happens to be really good at painting houses.” Gang, he’s got it just right. We used to sell kitchens, baths, room additions, new homes, but today it’s all about service. How can you communicate to the...
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Devon S. posted an article on Markup and Profit Blog - Jun 10, 2011, 5:05 pm
If you’ve raised kids in the past 20-30 years, you know the new rules – no one loses, everyone gets a prize. Don’t keep score at ball games because it hurts their feelings. Now many of those kids are working adults, and apparently some of them are working in construction. I’ve heard a numbe...
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Devon S. posted an article on Markup and Profit Blog - Jun 8, 2011, 6:34 pm
I taught a class in Kansas on May 20, and a young fellow who attended owns a company called Absolute Basement Finishing. Darren Salyer works in and around the St. Louis, Missouri area. When you spend a little time with him, as we were fortunate enough to do, you see quickly why he’s doing well. He...
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Devon S. posted an article on Markup and Profit Blog - Jun 3, 2011, 1:03 pm
One of our newer coaching clients called earlier this week from one of the towns along the Missouri River. It seems the Big Muddy (in the Dakotas) is about to go into flood stage and he wanted info on how to do the cleanup and rehabilitation of homes along the river. I was able to help him with hi...
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Devon S. posted an article on Markup and Profit Blog - May 31, 2011, 6:29 pm
I read an article on marketing, written Jeff Carowitz in the May issue of Irrigation & Green Industry magazine. Jeff takes issue with contractors who have the mindset that they are in a commodity business. He’s right, construction (with the exception of new home construction) is a service business...
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Devon S. posted an article on Markup and Profit Blog - May 27, 2011, 11:00 am
We’re well into 2011 now and we’re hearing good stories from contractors across the country about more business coming in. If you’ve got calls coming in – great! But don’t stop focusing on getting the phone to ring or it will stop ringing again in a few months. Most contractors are job o...
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Devon S. posted an article on Markup and Profit Blog - May 25, 2011, 2:41 pm
I’ve talked before about not trying to be all things to all people. That includes trying to do everything yourself. There is just too much that a contractor needs to do to be able to wear all the hats in the company. If you own a construction business, it’s important that you do what you are go...
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Devon S. posted an article on Markup and Profit Blog - May 18, 2011, 4:52 pm
I read an article written by Kent Lang, who is a practicing attorney in Arizona. His article dealt with pay when paid (or pay if paid) clauses in contracts, specifically between general contractors and sub contractors. Mr. Lang has a very nice writing style, gets right to the meat of the matter and ...
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Devon S. posted an article on Markup and Profit Blog - Apr 6, 2011, 8:12 pm
I taught a class recently and if I heard once, I heard this a dozen times during the day: “Well, this is Podunk, USA and things are really bad here. We can’t charge those kind of prices, we would not get any work.” As far as they were concerned, the conversation was closed. Fine, I’ll clos...
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Devon S. posted an article on Markup and Profit Blog - Mar 30, 2011, 9:00 am
One thing that surfaced from my conversations at the JLC Live show last week was the number of company owners who are not paying themselves for their work. Gang, let’s look at the Ten Cardinal Rules, Rule # 10. It says: You shall take a fixed salary from your business each month. Four points I wo...
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Devon S. posted an article on Markup and Profit Blog - Mar 29, 2011, 1:28 pm
Wow, what a great 5 days in Providence last week at the JLC Live show. I have not seen that many contractors at a show since 2004 – 2005. That was very good to see and those who did attend were positive, upbeat and ready for more new business. As usual, Sherry Daniels and her crew from JLC Live d...
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Devon S. posted an article on Markup and Profit Blog - Mar 24, 2011, 12:52 pm
Anyone stopped by the gas station recently? When you are estimating jobs, don’t forget travel costs. One reader sent this note some time ago – it’s even more true now. “I just did an estimate for an addition. I plugged the address into my Tom Tom GPS and it’s 19 miles each way. I figure...
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Devon S. posted an article on Markup and Profit Blog - Mar 15, 2011, 4:54 pm
I took a call from a specialty contractor that I know. He said, “Michael, a general contractor that I did work for just called and asked me to send him a lien release on a job that I did a couple of weeks ago. If I do that, he will send a check for what he owes me.” Sounds good, right? I’m n...
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Devon S. posted an article on Markup and Profit Blog - Mar 9, 2011, 5:27 pm
If you are a general contractor hiring a salesperson, do you have a written agreement with them? I was reminded of this recently by a contractor who has two very good salespeople working for him bringing in new jobs, almost daily. He has the potential of a lot of new business this year, but he does...
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Devon S. posted an article on Markup and Profit Blog - Mar 2, 2011, 2:30 pm
I get three or four requests a week from folks asking for my opinion on their website. As I have the time, I stop by to visit. All too often I find the same mistakes. Now, my opinion on what is a mistake is only my opinion, and you are free to disagree. But I will argue that if those mistakes are ...
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