Monthly Briefing
Profits | Relationships | Knowledge
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November 2022 Volume XVII, Issue 11
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Variances are a major obstacle to achieving high profit margins. If you’re not controlling your variances, you’re not protecting your profits. Variances include any and all exceptions to your goals, objectives, plans, standards and procedures and involve every area of your business.
The most obvious variances deal with construction costs, and these alone can wipe out 100% of the profits on a project. However, there are many other types of variances that can slowly erode your profits. Some variances may seem of small consequence, but a lot of little variances can add up to a big problem and undermine your efforts to increase the profitability of your business.
If you want to increase your profits, controlling variances is a good place to start. Controlling variances requires cooperation across the organization and a method of tracking performance against the plan. You can’t eliminate variances if you don’t know they exist.
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IN THIS ISSUE
Variances Sink Profits & Businesses
Fox Blocks: Supply Chain Issues
Unilock Joins Builder Partnerships
Grand Homes Wins Homes for HOPE Bigelow Award
Consultant's Corner
Partner Notes
Upcoming Events
Popular Articles
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By Tom Patton
Fox Blocks Corporate Brand Ambassador
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The last few years have been, if we can say, a unique experience for the construction and supply chain industries. The escalating prices of lumber and other conventional construction materials and problems with availability, created a surge in demand for alternative products, mainly ICFs. This surge in demand across North America, exceeded manufacturing capabilities of all ICF manufacturers and their previously calculated raw material requirements.
To meet the challenging supply chain issues, Fox Blocks has aggressively focused, over the last year, on several strategic goals:
- Additional investment in tooling and manufacturing facilities to increase production
- Striving to increase block and tie production by 50% resulting in actively reducing order fulfilment lead times
- Additional regional manufacturing and warehousing locations coming on-board
- Continuing to build inventory on specialty blocks and products
- While availability of Modified Resin continues, the Airlite Plastics team continues to develop relationships enabling ongoing supply to our manufacturing facilities to keep productions schedules
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Unilock introduced paving stones to North America in 1972 and continues to lead the styles, trends and technologies in the hardscape industry. We understand the challenges of today’s home builder and have the right pavers, slabs and retaining walls to deliver labor efficiencies, environmental solutions and answer consumer demands.
Working together, we develop solutions that align to your build, whether you are looking to address stormwater in your developments, increase saleable acreage with retaining walls or providing your customers with outdoor living amenities and solutions, we have the products to fit your needs.
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At a recent Shinn Consulting builder group meeting, Jeff Rutt and Matthew Baehr of Homes for HOPE presented Steve Brooks of Grand Homes with the first annual Bigelow Award.
Homes for HOPE created the award to honor the legacy of Perry Bigelow by celebrating partners who embody their organizational values.
Steve Brooks has partnered with Homes for HOPE since 2008, contributing more than $3.8 million toward their cause.
Read more about Steve, Perry, and the first annual Bigelow Award here.
Congratulations to Steve and the dedicated team at Grand Homes!
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January 9-10, 2023
February 9-11, 2023
March 27-29, 2023
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Consultant's Corner
By Dave Burleigh
Consultant, Shinn Consulting
I have Subway to thank for making me believe that bigger is better. With every trip to the counter, I have the best of intentions to go with the efficient and cost-effective six-inch sub. But those sneaky little sandwich artists bait me into the extra six inches every time. How have we come to believe that those few extra inches bring some monumental value with little cost differential?
Recently walking product with a client, I observed another artist that has mastered the extra six inches game. Window artists have convinced builders across the nation that using wood window sizing in vinyl windows is prestigious. In many cases, no convincing needed to be made, we just kept our traditional sizes when we moved from wood to vinyl. The cost of the extra six inches in the window is not in relation to the added value of the glass. These windows create a non-standard vinyl window size, and generally add a hefty premium to the cost of the window. In addition, non-standard is a dead give-a-way for LONG LEAD TIME.
A few extra inches in a room design can also carry costs far exceeding value and are often overlooked.
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These Manufacturers Offer Valuable Rebates to BP Members
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This event is exclusively for The Art of Purchasing seminar attendees. Manufacturers and service providers: click here for information on sponsorship opportunities.
This event is exclusively for Managing for Profit seminar attendees. Manufacturers and service providers: click here for information on sponsorship opportunities.
For the complete list of events, click here.
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Don't miss out! Previous issues of our Monthly Briefing newsletter are available here.
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