1. business and industrial

“Dog Days of Summer” Issue
Next Meeting Location:
1530 N. I-35, Round Rock, TX 78681 (512) 388-1103
Wednesday, Aug. 18, 2010 7 PM
“Every accomplishment starts
with the decision to try.”
Sponsored by
Austin Lawn Sprinkler Association Newsletter
and
www.alsaustin.org
June 1, 2010
The Work
How To Price
By John Sofyanos
Over the last three issues we have looked
at the costs of operating your business,
deciding what segment of the market
to place your focus, and how to
differentiate your business from your
competition. Now that you have
decided what to do and how to
structure your business, you need to
set a price for your work. There are
many factors which contribute to the
selling price of your work, but there are
four main components that must be
tracked and accounted for in arriving at the
right price for your company.
cost to consider here is failure to make
sure the project is installed as you
estimated it. The more accurate your
design, the tighter control you will have
on your material cost. This last savings
tip can benefit you overall buying power
and is one of the easiest ways to cut materials cost ̶ pay
your accounts in a timely manner. This gives you the
leverage to receive the best pricing and a prompt pay
discount.
‘Labor’ makes up the third cost in your bid. The
most accurate estimates reflect the most detailed
labor records. Labor should be tracked on a
job by job basis, to allow you to spot trends
in productivity. Many factors can impact
labor productivity.
The lack of
organization and failure to set
reasonable production goals are the
biggest mistakes I have seen. The
crews need to be on the job site
working, rather than chasing down
parts or stopping three times to do
service calls on the way to an install.
The other factor that runs labor cost up is
assuming your people will produce as
much work in August as they did in March.
It is important to gather labor records over a
long period of time to allow for the variables to
average out.
The first is the cost of operating your business,
referred to as ’overhead’. This item is the one which
you have the most control over as a business owner.
The overhead component is a hard number which, once
established, is difficult to change.
The salary which you pay yourself
and key staff, along with
equipment notes, rent, and other
fixed costs can not be adjusted on a
job by job basis. Overhead costs
should be checked on a quarterly
basis and adjusted as needed.
The second and largest piece of the bid
is ‘materials cost’. Your materials cost is what
you pay for the materials and how you control your
inventory and job site usage. Having been on both sides, I
can safely say that the money you save haggling over the
cost of goods is small compared to the other savings that are
available. Many times a contractor will complain that his
cost of goods per job are higher than his estimates. After
visiting his shop and a job site, it is easy to see why -- empty
5 gallon buckets of miscellaneous PVC fittings, broken
bags of nozzles paving the parking lot, spilled solvents in the
bed of the truck that have fused 4 solenoid valves, and two
controller face plates behind the seat of the truck. I doubt
that those material costs were computed in the bid. Another
The last component of your price is one that the market will
dictate. When you total up your costs from the first three
parts: overhead, materials and labor, you may then add a
‘profit’. If your total costs come to X and 4 other companies
are doing comparable work at X plus 10%, I think you know
where your quote needs to be. You have two ways to solve
this problem. The first is looking at your overhead cost
structure, being sure to review your design in regards to
material and labor costs. The second and most desirable is
to differentiate your company and demonstrate to the
customer why you are worth more. Would you choose to be
a Chevy dealer or a Mercedes dealer?
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2
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Letter from the Editor:
I hope everyone enjoyed their 4th of
July. Celebrating Independence
Day comes with lots of speeches,
barbeques, and fireworks.
Historically, it is a time of family
gatherings and giving thanks for the
freedoms granted to us in the Declaration of
Independence. Such freedoms include “that all men
are created equal”; “that we are endowed with
inalienable rights”; and that “among these are life,
liberty, and the pursuit of happiness.”
This year’s celebration got me thinking about
what it means to be independent. According to
Webster’s dictionary, the definition of independence
is “free from the influence, guidance, or control of
others,” or “self-reliant – not seeking or relying on help
from others.” Well, to my way of thinking, there are two
different ways to be independent – free from control
vs. not seeking help – and they don’t always go
together. A person can be “free from control” but still
“seek help”, and a person can “not seek help” but still
be under a lot of control from others.
So what does independence really mean? I
think the truth of it can be found in the entrepreneurs of
this industry. Those of you who own your own
businesses have decided to be independent. You
have struck out on your own to offer products and
services to customers. The idea is that you can work
as much or as little as you want; you can set your own
hours; you can make as much money as you want if
you organize yourself properly, and so on.
At least that’s the idea....so what’s the reality?
A friend of mine explained it to me this way, “The great
thing about owning your own business is that you can
work half days all the time – just decide which 12 hours
you want!” It didn’t take me long to find out that he
wasn’t joking. So there is a bit of a reality check on this
“independence” in business thing we all crave.
The truth of independence is that it is a
situation where you have most of the freedom to make
your own decisions. You have more control of your
own time. You can “pursue your own happiness.”
But the myth of independence is that you still
have to consider the marketplace (other people) when
you make your decisions. Your time is often given over
to meet the needs of the customer. And the ideal of
“pursuing your own happiness” usually means
“making others happy.” So, whether it’s countries or
businesses, independence seems to boil down to
having the ability to make your own decisions, and the
reality is that all decisions require considering the
needs of others, making us really interdependent.
Hmm...so are we independent
or inter-dependent? My guess is
both, but take a moment and see
what you think. In the meantime,
enjoy your freedom to serve
others in the best way possible!
~Cyndi Reno
Board of Directors
President:
Bill Knight
Pentecost Sprinklers
(512) 280-9344
Vice President:
Mark Watson
RaynMakr Sprinklers
(512) 626-4531
Treasurer:
Valerie True
Utz Environmental Services
(512) 528-9696
Secretary:
Scott Stewart
Horizon Distributors
(512) 402-4360
PAC Chairman:
David Brannan
Wilson Irrigation
(512) 832-0066
You may contact this newsletter at:
[email protected]
(972) 463-8888
2010 Meeting Schedule
August 18
October 20
TBA for Christmas Party
Meetings are held on the 3rd Wednesday of every other month
Please Welcome New Members:
Erasmo Chavez, LI#15085
D & L Landscaping
Dan Galbraith, LI#8696
Texas Irrigation Supply
José Garza, LI#18333
Garza’s Landscape
Lori Glidden, LI#16729
Taurus Irrigation
Lee Griffith, LI#17047
Sunrise Sprinklers
Paul Lawrence, LI#18696
Texas Land & Water Designs
Ben Rivera, MP#36126
Ben’s Sprinkler & Plumbing
Matt Stamm, LI#17042
Cougar Irrigation
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The President’s
Ponderings:
Dear Fellow Irrigators,
Thanks to everyone who
attended the June meeting at
Serrano's. We had quite a turn-out of
46 attendees. A special thanks to James Seabolt with
Rainbird who sponsored the meeting. The drawing for
the Rainbird controller was obviously a great idea.
I need to clear up a bit of confusion on the use of
¾” DCA's on irrigation systems. They are fine to use as
long as the upstream piping is ¾” or smaller. As for the
down stream side, it can be any size. Hope that clears
things up, if not we can go over it at the next meeting.
This summer's rains have sure brought out the
wildlife. Just this past week I was surprised by a red fox
standing on our firewood pile. However, today was a
little scarier; while staking a yard with my measuring
wheel, I looked to my left and was being stared at by a 3
foot diamond-back rattle snake. The snake was making
a meal of birds that landed in the grass under the bird
feeder. I stood still until one of the crew came around
the corner and noticed my complexion had gone from
my usual red face to one of white. Miseal disposed on
the snake and Andres put it on ice for his evening meal.
He tells me it tastes like chicken. Just a reminder to be
careful. If I'd been bitten, our small company wouldn't
fair very well. Make sure your crew knows to go
directly to the emergency room.
Life is like riding a bicycle. To keep your balance
you must keep moving. ~ Albert Einstein
Our next legislator session is coming soon.
Bills are already being written. I think the TTIA will
help to keep us informed of any concerns in our
industry.
See ya at the next meeting.
Bill
Education’s purpose is to replace an
empty mind with an open one.
Horizontal Boring Services
By
Degreed Landscaping
Capable of horizontal boring from
1”-16” through caliche and rock.
Call: (512) 576-9395 or E-mail [email protected]
4
35 Members have renewed their Membership. Have you renewed yet?
5
LCRA
New advisory committee to help revise Water Management Plan - July 09, 2010
The Lower Colorado
River Authority has
formed a new advisory committee to help update and revise
the Water Management Plan for lakes Travis and Buchanan.
The state-approved Water Management Plan
governs LCRA's operation of the Highland Lakes to meet the
needs of water users throughout the lower Colorado River
basin. The 16-member advisory committee will spend the
next year working with LCRA to provide input on how to
improve water management strategies outlined in the plan to
address needs in the basin, including those of cities, industry,
agriculture and the environment.
"As the recent drought illustrated, the water in the
Highland Lakes is a limited and precious resource," said
LCRA General Manager Tom Mason. "The Water
Management Plan helps ensure that this resource is used
responsibly to serve the diverse interests in the basin. LCRA
appreciates the commitment of the advisory committee
members who have agreed to help with this difficult and
important task."
The Water Management Plan works to balance
competing interests and determines how water is allocated
during drought and other water supply shortages. This is
accomplished by prescribing actions that LCRA takes when
the water stored in lakes Travis and Buchanan falls below
certain levels. These are the two reservoirs that supply
drinking water to 1.1 million people in Austin and Central
Texas. The potential actions outlined in the Water
Management Plan include reducing releases for
environmental needs, cutting back water for agricultural
customers, and working with wholesale municipal and
industrial customers to implement mandatory water-use
restrictions.
LCRA took such actions during the drought in 2009
when the combined storage of lakes Buchanan and Travis
dropped to 900,000 acre-feet. This prompted LCRA to
request its wholesale water customers implement mandatory
restrictions on water use. Major LCRA customers include the
City of Austin and other Central Texas communities,
municipal utility districts and water supply corporations, and
industry and power plants. Mandatory restrictions include
limiting car washing, pool filling and lawn watering on
certain days and limiting the use of ornamental fountains.
kept above levels considered critical — and would have
significantly reduced water to the farmers in 2010 had timely
rains not come.
The Texas Commission on Environmental Quality
approved the current version of the Water Management Plan
in January. LCRA is updating the plan because the process
can take several years and it will give LCRA an opportunity
to incorporate information from new studies on projected
water demands, environmental flow needs and other
important issues, said James Kowis, LCRA water supply
strategist. the month) and 19-26% in 2007.
"This process will allow us to work with our
stakeholders and customers to determine how to best manage
the water of the Highland Lakes using the most up-to-date
studies and lessons learned from the recent drought," Kowis
said.
The advisory committee members each represent a
stakeholder group that depends on the Highland Lakes:
industry, environment, agriculture, municipalities
and lake interests. The members are:
ENERGY l
WATER l
COMMUNITY SERVICES
● Ralph Savino, Garwood Irrigation Division
● Robby Cook, Lakeside Irrigation Division
● Haskell Simon, Gulf Coast Irrigation Division
● Laurance Armour, Pierce Ranch
● Myron Hess, National Wildlife Federation
● Cindy Loeffler, Texas Parks and Wildlife
● Jennifer Walker, Sierra Club, Lone Star Chapter
● Greg Meszaros, Austin Water Utility
● David Vaughn, City of Burnet
● Earl Foster, Kingsland Water Supply Corporation
● Rick Gangluff, STP Nuclear Operating Company
● Ken Gorzycki, Horseshoe Bay Resort
● Kerry Spradley, Lake Travis residential
● Janet Caylor, Lakeway and Riviera Marinas
● Jo Karr Tedder, Lake Buchanan residential
● Rusty Brandon, Hi-Line Lake Resort
For more information on the Water Management Plan,
including updates on the advisory committee’s work, go to:
www.lcra.org/watermanagementplan.
LCRA also reduced water for the downstream bays and
estuaries because of the drought — although the flow was
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Irrigation of the land with seawater that has been desalinated by fusion power has been around forever.
It’s called ‘rain’.
Questions:
Ph: (972) 463-8888 Fax: (972) 412-7840
Yearly Dues: $100. per Licensed Irrigator
e-mail: [email protected]
½ Year Dues: $50. per Licensed Irrigator (2010 Only)
2010 Membership Application
Services Offered: Circle all that apply.
Name: ______________________________________ LI#: _______________
Residential
Irrigation
Company Name: ______________________________Yr Established: _______
Light Commercial
Service Repair
Mailing Address: __________________________________________________
Large Commercial
Landscaping
Golf
Drainage
Backflow Testing
Design
Telephone: ________________________ Fax: __________________________
Lawn Maintenance
Night Lighting
Owner (s): _________________________
Property Management
Stone / Rock / Pavers
Pumps
Bobcat Work
City: __________________________ ST: ________ Zip: __________-______
_____________________________
E-mail Address: ___________________________________________________
Manufacturer / DistributorPonds / Fountains
Website Address: __________________________________________________
Please make check payable to: ALSA
and mail to: ALSA
8109 Bridgewater Dr.
Rowlett, TX 75088-6657
Trainer
Heavy Equipment
Other: ___________________________
Application and dues payments
may be made on-line at:
If you do not wish to be listed on our website, please circle the opt out.
___________________________
www.alsaustin.org
OPT OUT
_________________________________________________
Otherwise you will be listed on the Members page of the website.
___________________
Primary Signature
Date
7
10 am-Noon on
Sat., Aug. 21, 2010
LCRA Redbud
Center, Rm 108N
3601 Lake Austin Blvd..
Austin TX 78703
For information, see
www.tcmastergardeners.org
or call the Travis County
Master Gardener's help
desk at (512) 854-9600.
Insects can be one of the
biggest challenges for
gardeners. But you can
deal with pests effectively
without spraying general
insecticides all over your
plants. Integrated Pest
Management (IPM) can
teach you how to protect
your garden without
harming the environment
or your plants. Learn to
distinguish beneficial
insects in your backyard
from harmful insects.
Basic IPM strategies will
be described that can help
manage insect pests
throughout the landscape,
in vegetable gardens, even
in the home.
B e st I d
e as
How to Manage
Garden Insects
The
Duct tape is like 'The Force'. It has a light side and a dark side, and it holds the universe together.
Come to Mind
When You Least
Expect Them
8
512-252-4500
fax: 512-990-7521
1935 Picadilly Dr.
Pflugerville, TX 78664
9
10
ALSA Meeting Minutes
for June 16, 2010
on July 29th. Cyndi Reno said she would
send an email out and post on the
website for review.
President Bill Knight called the meeting to order at 7:50
pm. James Seabolt with Rain Bird sponsored the June
meeting held at Serranos in downtown Austin. Minutes in
the previous newsletter were approved as written by Dale
Johnson and seconded by David Brannan.
Bill stated that a new backflow manual
is out. He said on January 1st there will
be more changes coming pertaining to the testing. The
LCRA is also changing their rules.
However, the City of Austin does not
have a backflow program in place for
low hazard. Bill stated that when
you are testing a backflow device and
on the form you check that it was
installed per code
and it wasn't, then you can be held responsible. Always date and put the time
on your reports. You never know who
comes in after you have done a test.
Treasurers Report read by Valerie True:
Bank Account $1,737.14
Pay Pal $356.10
Total Balance $2,093.24
AR $760 and AP is zero.
Treasurers Report was approved by David Brannan and
seconded by Dale Johnson.
James introduced the new Rain
Bird remote control.
He also donated a Rain
Bird 32 ESP LX Modular
controller that was given away in a drawing.
The winner was new member, Paul Lawrence
with Texas Land and Water Design. Members
were also given a choice to take home a Rain Bird wireless
rain/freeze sensor or a Rain Bird
moisture sensor compliments of
Rain Bird.
Valerie True stated that the ALSA has lost
its Non Profit 501(c)(3) status. We are not sure exactly
when, but we received a letter from the IRS stating we
needed to submit a new application. Valerie stated that
the application fee is $850.00.
She asked for approval to
spend the money. After
discussion, a motion was made
and David Brannan approved
and Kevin Farmer seconded.
Valerie asked David Brannan
for assistance with the long, tedious application and he
agreed to help.
New Business:
No other business.
Meeting was
adjourned at 9:20 pm.
Bill Knight reminded the members that the American
Backflow Association is a great way to get CEU's.
Membership is $80.00 per year. They meet every 3rd
Tuesday in San Marcos and you get 2 hours CEU. The next
meeting is in July and will be hosted by City
of Austin.
The Board tries to bring in
different City employees to the meetings.
The Association is also working on free
testing on gauges.
Bill mentioned that
gauges have to be air tested now and not
water tested. Bill said the meetings are very informative
and it is a great value considering the CEU credits.
We had an incredible
turn out at the
meeting - bringing in new members and seeing some old
members again. Luckily we did not run out of food, but
we know some of you had to sit outside the room to eat
dinner. Thank you to everyone for being so gracious and
understanding. It was really wonderful to see such a
great turnout.
On behalf of the ALSA and its members, we also want to
thank James Seabolt and Rain Bird for sponsoring the
meeting.
At the time of the meeting, an email had been received
regarding the
City of Austin
ordinances
changing
irrigation
requirements.
Steve Rockovich had sent the email out and stated we
needed to review. It is scheduled to go before City Council
Valerie True,
substituting for
Scott Stewart,
Secretary ALSA
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Presorted Standard
U.S. Postage
PAID
Rowlett, TX
Permit #325
8109 Bridgewater Dr.
Postman,
please deliver
by 08/10/10
Rowlett, TX 75088-6657
Wednesday,
August 18, 2010 7 PM
Working Together, We Can Do
More Than Make A Difference ...
We Can Make An Improvement
www.alsaustin.org
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