A MESSAGE FROM THE PRESIDENT-MAY 3rd 2011

Question: Are our prices too low?
Answer from the customer: No…I can get another pump cheaper than you!
Answer pumper to pumper: Are you kidding our rates are crap!
The delicate topic of concrete pumping charge out rates.
We all blame the competitor or certain groups…but we are the
competitor…so why is it so hard for concrete pumping companies to get the
true rate which reflects a sound profitable business. Profit… why is profit a
dirty word…profit is the money in which the owner/owners are paid after all
expenses are meet, the money they deserve for the all the hard work and
liability they have to endure. So why do we continually give this up to keep
our fleet working? From the companies with dozens of machines to the owner
operators the effects are the same.
Diesel, wages, interest rates, waiting for payments, break downs and down
time due to inclement weather or maintenance, these cost continual to head
upwards yet the rate does not follow. The larger companies do have more
overheads you say, but the owner operator goes home and does all the
paperwork, chases all monies and works on the machine on weekends. So all
thing being equal both forms have their own claims for better money.
I would like to give this small point in which to show that a small increase in
the cubic metre rate would benefit our businesses.
Let say the average boom pump 32 metre in size pumps a yearly average of
20,000 cubic metres a year. A small increase of just 50 cents per m3 equals
$10,000 per year.
The same for small line pumps which averages 12,000 cubic metres a year a
small increase of 50 cents per m3 equals $6000 per year.
If you have a fleet of 12 booms using the above average adds $120,000 to
your bottom line.
If you have a fleet of 4 line pumps again using the above average this adds
$24,000 to your bottom line.
Would this rise be of use to you and your business? It would be to mine!
So whether you are the small owner operator or a large fleet company this
small rise of the cubic metre rate has the same end result.
I would like the members to digest this issue and give a thought to my next
issue, Fuel surcharge…I will leave that for the moment.
Please consider the impact of the cubic metre rise of just 50 cents per m3
would do for your business.
Safe pumping.
Mario Battistini
President
Concrete Pumping Association of Australia Inc.

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