Masonry Magazine October 2008 Page. 33
CAST STONE
Beauty & PERFORMANCE
Cast Stone is a premier masonry product that gives the appearance of natural building stone for ornamental or functional features for buildings and other structures. It has the same or stronger physical properties as most dimensional building stone and is available in virtually any color.
For assurance of the highest quality product, choose only a Certified Cast Stone Institute Member, who is dedicated to the relentless pursuit of manufacturing excellence, for your next project.
For technical information, a listing of our members, photos for project ideas and more, reference our website.
~www.caststone.org ~
CAST STONE INSTITUTE 813 Chestnut Street PO Box 68 Lebanon, PA 17042
Phone: 717.272.3744 Fax: 717.272.5147 Email: staff@caststone.org
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The Good, The Bad and The Ugly
MASONRY NEWS CONTRACTOR TIP
Do you keep your people updated on how your company is doing, showing them as much income and expense information as possible? You should. If our key people don't know what our sales, profits and losses are, how are they going to help us get better results? If you have read my book or articles I have written in the past, you know that I belleve, "What Gets Measured, Gets Done." I teach seminars on how to measure and pay field employees based on total labor sales. Mason contractors from all over the country are seeing the results of measuring and paying field employees based on increased performance. They have found, like we have, that most employees don't mind producing more if they get a percentage of the increase. As long as the system is set up properly and fairly, it is fun for both the contractor and the field employees who are a part of the team. But what about office staff, superintendents and managers shouldn't they get to know how the company is doing? The answer is, yes. Show them everything - the good, the bad and the ugly.
Most business owners don't show their employees real sales numbers because they fear the employees will think the company is making too much money. (You're in business, be proud of the money you make!) Perhaps the employees will go into business for themselves, seeking an easy road to profits? But, as business owners know, there is no easy road to profits. So, why don't we just show the employees what we are going through by showing them the numbers? Let's face it: Employees already think the company is making a fortune. In fact, they are probably less likely to strike out on their own if they know the truth.
The average mason contractor eams a net profit of only 2.5 percent, and the top in the industry eams 5 percent. At 2.5 percent, that's $25,000 on every $1 million in sales. Once they see how much it truly takes to run a business, they'll realize we are making much less than they thought. In fact, when you see the numbers for yourself, you may find you aren't making nearly as much as you thought. Don't be afraid to share the numbers with your employees.
Looking at the real numbers monthly makes a difference. I have had mason contractors tell me they are making 20 percent net profit every year, and then two years later, they are out of business. Obviously, these contractors were not on top of company profit-and-Hoss statements. Waiting to leam how the company is doing at the end of the year has led to the failure of many companies. I recommend all mason contractors have a monthly P&L prepared. This way, they can make timely decisions to avoid profit shortfalls.
By the way, would it bother your people if you bought a getaway vacation home or a new truck? It shouldn't! And, I'll bet it wouldn't if they were being paid based on sales and profit, instead of just by the hour. Life can be much easier for both you and your employees if you show them what the company is earning and give them a percentage of those earnings. Once you do have monthly P&L statements prepared, pay your office staff, superinten dents and managers based on the outcome. You will be amazed by how much they begin to care about your company's profitability. You will also be amazed by the change in their attitudes. Employees become less interested in starting their own companies after they see "the good, the bad and the ugly parts of running a business.
Damian Lang is a mason contractor in Southeast Ohio who has four companies that do combined sales of $18 million. He is also the author of the book "Rewarding and Challenging Employees for Profits in Masonry." To order a copy of his book or to attend one of his seminars held specifically for mason contractors, call Linda Hart at Lang Masonry, 800-417-9272. Provided by Damian Lang, President of Lang Massery Contractors, Inc., and EZ Grest Corp.
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