State of the economy - Good or poor?

[bobbi o]

you read it wrong mr t,the net profit margin after all deductions was 15k.
which is still v.poor.the target is a net 25% margin this year,though you may be right and this is the wrong industry to acheive that in.

anyone else's thoughts?

[Tony McC]

Aaah! Punctuation! I thought that was 1 point 25 per cent, instead of Answer 1:- 25%

25% is "realistic". Not as much as some, but enough to make sure you keep your head above water.

[MatthewWakeman]

I start off in January/ February @ circa 20% by May June i like to be earning more like 30-35% Net come November December i dont have a problem with 10% just to keep things moving

Matthew

[bobbi o]

nice one matt,your yearly targets are pretty similair to mine,though i havent acheived mine yet!

regarding pricing any tips?mine is so basic that i'd welcome any input to improve it:

materials+
labour+
haulage/spoil+
machinery+
25%+
17.5% vat=
customer price

we're talking about contracts which average 5-7k on the year,so not sure theres much requirement to introduce much science to the calculations,but any advice welcome.

[MatthewWakeman]

Alway find it siuts me to keep it as simple as possible if you have been doing this as long as i have you know exactly how long the job is going to take. Sometimes even we take on a job we know we should'nt it may be because the customer wants a different material or has been told by some other contractor it cant be done it's then when we lose a bit of money but gain experiance and the later can be alot more valuble in the long run. it just would not be fair if we made money on every job where would the excitment be in that. One thing we never do is ask the customer for more money after all we are the pro's .

matthew
drivewaycompany.co.uk

[rms]

2006 looking good with bookings to mid May. Not bad for the time of year!

[bobbi o]

yeah matt,the time factor is the hardest to get right,especially when theres a lot of prep work.apart from experience,do you introduce any laying bonuses etc for the men in order to increase the daily productivity?

[rms]

If a price is set for a given job this has to be the best way of obtaining high productivity. Just keep an eye on the quality!

[rms]

Sounds like you don't get your hands too dirty Bobbi!

[Ross-Paving]

I operate as a Hard Landscaper in the North of Scotland, Inverness area, mainly driveways and patios, where there is a phenominal growth in building and development. Most of the large developers provide the basics but there are plenty of clients looking for upgrades. Not forgetting the individuals who are looking to improve established properties, plenty of those going about as well. On the whole we are kept constantly employed with a months lead, this winter has been kinder than expected weather wise and as such the spring rush appears to have kicked in earlier this year. Primarily I obtain most of my business through word of mouth, I have the usual portfolio of before and afters to reassure the clients, Initially I advertised in the local paper but that proved to be a waste of time - plenty people seeing the ad and requesting quotes out of curiosity (I wish I had a pound for everyone that said "I'm surprised you came, nobody usually bothers" then when they get the quotation they never even lift the phone to say No thanks). The majority of work I pick up is replacing old tarmac drives - this powersteering is a great invention, it certainly rips up the poor tar in the turning areas. Currently looking at May when quoting on new work, generally I find people are prepared to wait when they get prompt service during the enquiry/quotation stage. My main suppliers keep me informed on new people starting up, plenty of them each year but usually just last the summer months and leave a trail of distruction behind them. Like with the earlier posts getting reliable help is a problem, there's not many around that like hard work. To summarise, business is good in Inverness/Highlands - but don't all relocate - Please!

[alan ditchfield]

We have felt a definate slow down in enquiries tailing of from december 2005 and only really picking up again now certainly from my point of view a lot slower than the last couple of years. Had to take some paving work in spain to tide me over and now im back to start a job in leeds its minus 5 and 3 inch thick in snow. I just love this country. If anybody knows an easier way to make a living let me know please. ???

[Tony McC]

How did you like the cement/concrete in Spain-land, Alan? Blink, and it's gone off!

[rms]

Even at 17 degrees c ?

[rms]

I think March is going to be manic for enquiries!



Edited By rms on 1141515489

[alan ditchfield]

Your not wrong about the speed it goes off especially when the mixer was twice the size of my english one i have never moved so fast in my life but i think i could learn to live with it a couple of beers with your lunch and the world seems like a better place.