Wage and Labour demands in the B&C Industry

The latest wage Rider Levett Bucknall’s Oceania Report – RLB

has found that “All sectors of the building and construction industry are reporting increased demands for wage increases of up to 5 per cent per annum,” the report said. These wage increase are being passed on to the consumer by way of steeper construction costs.

“Further, the Sydney market is now experiencing a labour shortage in some fields. These include reinforcement fixers, form workers, bricklayers, carpenter/joiner and fire protection trades. These trades are reporting full order books and unable to accept new opportunities.”

Melbourne has seen the residential boom slowing down and contractors have found wages less of a burden, the report said.

“On detached housing sites, labour is inching up slightly in the ‘hard’ trades – bricklayers and carpenters,” it said. “Within the large commercial and residential projects, even though labour rates are coming under ever more pressure due to constant EBA rate increases, the volume of overtime being worked is diminishing, causing a net constant pricing of labour within the project.”

The Oceania report also stated that “Head contractors are asking subcontractors to increase labour rather than approve overtime.” This is a further effort to try and reduce labour costs.

From all accounts it appears that Brisbane has likely peaked and construction will slow. This is reflected in the skew of commercial projects completing in 2016/17. This has boosted CBD and fringe office vacancy rates.

The report forecasts “Construction cost increases appear to have peaked and we expect some softening of construction costs during 2017/18, however  “there is still a large pipeline of work under construction”. The report expects this will be a gradual process with structural trades being affected first.

All in all wages and labour costs on building projects continues to challenge B&C companies ever seeking to be competitive and profitable and reputable.

Henry Schafing: henry@crm-map.com

MYOB – 3 Ways to Increase Profits

 

 

 

 

 

 

 

Here are 3 simple methods to actually increase your profits.

Option 1 Improve your Sales technique.

Sales is a topic that I could spend hours talking about. As a novice I thought sales was a dirty word, but once you have been in business a long time you will see this differently.  For those who stay in business, the reason they do, is that they have good sales people. So what is a good sales person?

A good Salesperson can:

  • say No to a wrong/bad sale.
  • select the right fit/product for the client
  • endear confidence and a desire to repeat purchase
  • sell the product not just the price

These dot points mean that as a business you need to have quality, well educated, empathetic, intelligent sales people. It does not matter what the product is. What matters is the customers experience.

With this in mind, sales people need to be able to offer the right product, at the right price in a timely and professional manner. This involves a lot of skills. The application of these skills involves Sales Techniques.

The key to increased profits really can lie in getting the right technique. I met building improvement owner, and the sales technique that they employed included some very strict timing and steps. He found that the combination of timing and steps increased his sales and margins significantly.

So the key is to find the Sales Technique that matches your company and your product.

My experience shows that for each customer you need to find what matters to them, so listening is vital. A sales person that listens is over halfway home. Know if the sale is a need or a want. Know what is going to trigger your customer.

Once you know what matters, you re-enforce this with your sales script / demonstration. However with that said, Tools are vital. Ways to show off the product – Samples, Videos. Ways to confirm that the client can be confident in you – e.g. referrals. Local referrals are always best, and it is a reason that products like CRM-Map are so popular.

Finally, the sales person must close the sale. Closing is interesting. Some sales people can demonstrate, but they just can’t close – they are actually demonstrators, not sales people. Good salespeople can close a sale. There are many techniques for this, and once again this must match your company and product.

Some closing Techniques include:

Assumptive Sale : e.g. Do you want this in Red or Blue (get the client to make positive statements of ownership, and the sale is a natural)

Reason to decide today: Could be a discount, limited stock, limited stock availability etc.

3 Yes’s to close: It is physiologically suggested that if your client will agree with the sales person on 3 important points, then agreeing to purchase is a minor agreement.

 

Option 2. Repeat Sales to Existing Clients

The easiest and most profitable sale is a repeat sale. Very simply put, the client knows you, trusts you, your don’t have to find them, prove yourself, or establish a relationship. All of this has already been done.

So look after your existing clients.

Successful companies do this in a range of ways, e.g. Loyalty cards, personal service. Today, it was announced that Dick Smith Electrical has gone into voluntary receivership. Well I am not surprised. It is not to do with sales, but related to profits. They have never worked at repeat sales. They do not treasure their clients – you are just a number. Plus they are in an incredibly competitive market.

Repeat sales really do make a big difference in the bottom line.

This morning I had a personal experience. I have for 30 years purchased house paint from the same store. As a have a few properties, this is about $1000 per year minimum. So I keep going back, the staff know me, and after a few sales, they gave me a discount. I now know, that I don’t need to shop around that they will give me the best price. This morning however, a new staff member refused to discount the product I was purchasing – and the price difference was about 20{c36baba5c73b6c9a0b80d5e7ba0a8acbfd233dc9453b651cdb653391d31dba51}. I was not impressed. So I waited until a known staff member arrived and then all went well. However, I can state that this could have ruined a valuable relationship. So owners, don’t rest on your laurels. You need to have systems in place to care for these valuable clients even if staff change.

Option 3. Lower your costs

Lowering costs! Sounds easy, feels difficult. Well it is easier than you could believe.

I am the president of a large sporting association. With all the new laws brought in by the Fair Work Act, voluntary sporting associations have been really hit hard. So as the president, I was faced with 2 problems. Making sure that the association was running legally correct, and making sure that the association ran at a profit. The biggest problem was “But this is the way we have always done it”.

The only constant in life, is Change. Once that is accepted in a practical sense, then changing to be more profitable is possible.

So my next step was to review each and every account. I had the internal book keeper do this with me, and made sure that all rules were followed. We had to think outside of the square. This involved getting the association registered as a Work for the Dole option, plus creating a relationship with the local employment agencies, so that suitable volunteers could be located.

We also reviewed some of the products we had, so that we had products that clients wanted and were happy to pay for.

Technology can be a big cost saver if used well, but, poorly applied technology can also be a cost waster. The key is to know what technology is available, and what is the right decision? The difficulty is that no one has a crystal ball, and technology moves at a rapid rate. Here are my suggestions to using technology well in your company, so that you will save money.

Don’t get the latest greatest, unless necessary.

Buy the best value for now, but don’t expect technology to last longer than 2 years.

Get tools that will save you in staff time and give you the right information.

Get tools that will ensure your work is not temporary. Your data should be electronically saved and available to other sales people. Don’t just loose the data with either the sales person, or the electronic filing cabinet. Use a good database and store the data and make sure it is accessible as necessary.

Listen to wisdom in the field you are reviewing.

Consider alternative methods, e.g. Going Virtual, cloud based etc.

Use good Systems and Databases, e.g. MYOB, Xero, Salesforce, or Zoho as examples.

One of your responsibilities is to make sure that you give your staff the tools to do their job. Make sure these tools will work, and that the valuable data you gain is utilized and not lost.

Now improve your bottom Line.

I hope that these ideas will assist you to improve your bottom line. But if you are at least considering, maybe your next step is to communicate your needs and thoughts with an executive committee or mentors.

Mentors have many functions. They can make sure you see the facts, not just what you want to see. They can give you a kick or let you release when you need it. Mentors are great. If you don’t have one or some, then work on this. You can even pay for this type of service, with Executive Meetings.

A lot of mentors, are happy to Mentor, as it is often a 2 way streak. e.g. they get as much as they give. However, others are happy to just be there, as they have experience and want to share. But having a mentor is a good way to make sure you are on the right path.

 

CRM Power Tips: How to get Data from Mobile Sales People

Getting CRM Off-site

CRM’s can really make a difference if used well or be a great Rolodex or Teledex for business.  What is yours being?

Only last week I heard an international manager discussing his expectations and costs of his CRM and he described it as an overpriced Teledex or Rolodex and could not understand why IT people kept pushing it.

To be honest, it was not the CRM’s fault – but the application of the CRM.  I did ask, what they were using and it was Saleforce, so an excellent example and flexible CRM.  What had happened was that the application was not been applied to the business needs very well – if at all.  This could be due to changed needs, or due to poor initial setup / training or even staff changes.

But what I have found to be a constant business expressed problem is “How to get the CRM to really work for a company, when the data is too cumbersome for a mobile environment”.  The problem is that most CRM’s let you define your pages, allow a mobile version of this, but the actual data that a person on the road needs is far more streamlined, and less in data entry than the main CRM’s can offer.  Now a few allow unique forms to be created for each log in, but management of that in itself can be really difficult.

So what do you need to work out?

  1. What data do my remote people need access to
  2. What data do I need my remote people to enter
  3. What equipment do my remote people have access to.

With this information, you will be able to get a good list of quality options.

Why is the data read and data entered necessarily different?

As person on the road may need contact details, past visits, existing products or services.  They may need to know any important notes or documents.  But as a company, you may need to know, who visited, when they visited, how long, what was discussed, quoted, photographed.  So as you can see these really can be quite different.

You may also have Zone locked users (they are only to see a specific area due to confidentiality).  Keeping your data safe at all times is important.  So even if the phone or tablet is lost, your data remains safe.  Even managers can lose their mobile devices, and if they can delete data remotely, then their access needs to be secure and easily secured in the case of an emergency.

Why does the equipment matter?

Some software will only work on certain browsers, or devices.  Only a tablet, not a phone.  Need a certain level of internet access to work.  You may have costs involved in the number of access times, or locations. This will impact on your ability to use this data cost effectively.  You may also have a variety of irregular users, (e.g. for a short time only).

It is no good if your CRM has a mobile option, but this option requires you to purchase the latest IPads, and you have no I-pads at this stage, and the cost is way above the available budget.  So flexibility on information is essential.

What is a possible Solution?

Products like CRM-Map can really solve this issue.

Ease of Use: The remote person does not need to look for the client, as if they are near or at the client site, their Icon is showing on the google map, and the sale person need only click on it.

Own Designed forms and Custom Fields: So you can add the fields you need to match your CRM. Having only what you want to see or enter.  This is a really easy way for remote people to get access to the right data and fast.

AutoMatic and Seemless:The forms you design can be auto integrated with your data dynamically, e.g. so as you do alternations in the office – it transfers to the field and as people do changes in the field it can go to the main CRM database.

Data Protection: As this is not your core data, your core data is protected.  If a user loses their mobile device, even though it requires a password access, you can easily alter their password access and lock out the lost device.  Plus, as Zones are available in this product, you can limit a user to a specific zone and then they can only see the data in that Zone.

Flexibility: Products like CRM-Map are not limited to hardware.  Basically if your system can use Google maps it can use CRM Map.  So you can use whatever hardware is available on minimal bandwidth.

Cost: CRM-Map excels here also.  As you only pay per user that you need to use this product.  So a really low cost option.  IF you need extra users for a month, then you only pay for that month for the extra users.  A good low cost option.