Michael K PT state answer

Ron Musgraves

Exterior Restoration Specialist
Staff member
You are right Guy, I am a numbers guy. And it is numbers that say without the right amount of volume, you can't cover your "nut" at the low rates, that I am seeing.

This is a flat untruth about pricing and lowballing Volume.

Its doesnt matter I do hundreds of locations. My production rate can often be higher on Less units done.

Humans get tired, we actually have a policy about working more than 8 hours in a shift.

If I do three stores the rate can often be high profit than if a guy does 7.

I price each unit to make money as a single. This volume Walmart theory is a fantasy in our service industry.

What I do is work fast using the best availiable tools to cut costs and overhead.

I run lean and my units run lean. We have a proccess that is second to none. We do not lower pricing or quality for volume. We increase our profits by being smart and looking to shave time with due process.

Years of experience of knowing how!!!

I have had people doubt my speed and quality, many have come to witness the crews working. not one crew but they chose randomly the people to look at throughout the night.

What they realized is we have systems in place, GPS,video and paperless tracking to save techs time in the field. Saving minutes means 1000's to me at the end of each month.

Excuting a 15 day account on que is serious business.

Paying people a decent wage is also a key factor. I have techs that have been with me 20 + years. Key people 15 years or more.

Its serious to shave time from clock in on a shift. Legistics are key to all of it.

By the time most guys fuel get a donut and coffee my guys are heading to there second job. That one up saves each man 3150.00 a month. Times that by 14 means 44,100 a month to me.

I may share a production report that is computer generated as techs finish jobs throughout a shift. Yes its all automated so supervisors can track hourly.

I'm proud or what I have built, volume pricing is bullshizzzz

You cannot discount anyone based on there units. Each unit needs to be profitable or you will loose your AZZ
 
I agree 100% procedures/efficiency can save you thousands. Each job needs to be done on time and consistent quality. Throw in a "fair" price and you can make a good profit not just a living.
 
You cannot discount anyone based on there units. Each unit needs to be profitable or you will loose your AZZ


Are you saying that you don't "price average" say a 50 location fast food franchise?

Seems to me the "avg cost" method is the prudent way to bid that type of account. The buyer wants a number for every location, he doesn't care how your profit per unit breaks down.
 
Are you saying that you don't "price average" say a 50 location fast food franchise?

Seems to me the "avg cost" method is the prudent way to bid that type of account. The buyer wants a number for every location, he doesn't care how your profit per unit breaks down.

Buyers want unit pricing, I need to make money on each unit no matter the price. This would be a different thread. If you would like to discuss please start another thread. Thanks
 
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