How to Cheat your Customers and They Probably Won't Ever Know...until it's too late!

I was down in LA earlier this week. I stopped by a sheet metal shop where I buy my flashings from. As I was waiting for my order, I saw a big forklift truck hauling in galvanized expanded metal lath, a part of many decking systems base. I asked the owner how much he was selling lath for, around here in SLO town, it's selling for around $7.58 at Home Depot and the local ACE store sells it for around $6.99 a sheet.

So when he said $5.75, I was like wow, I want some...and then he said "That's a 1.75# lath. I went wait a minute, I want 2.5, that's what is required by the manufacturer's! It doesn't sell said my metal merchant. In fact, most of the decking guys are now buying 28 guage flashing instead of 26 gauge. The higher the number, the thinner the metal. 26 gauge is the minimum required in the code and by manufacturer's.

So genius that he is, the Deck Expert began thinking about this...I keep hearing some really low bids for metal lath systems-$4.00 per square foot on one job that had a 100k square feet.

And it hit me...this is the ultimate cheat; first save material costs by buying cheaper flashing. Save 25 cents per lineal foot, multiply by 8000 lineal feet, save $2,000 in costs over 26 gauage.
Save more in materials by buying 1.75# lath instead of 2.5# lath. Save $1.25 per sheet, multiply by 5,555 sheets to cover 100k in area. That equals $6,944.00 less in costs over the required lath.

So far I've saved 9k in material costs by cheating, and I'm not done yet...now, factor in how far a bag of cement goes into lath. A 50# bag goes apx 25-30 square feet into 2.5# metal lath. But I'm using 1.75# lath cause I'm cheating you...now how far does a bag go into a thinner material? Maybe 45 square feet of 50 square feet? I'm getting 25% more coverage out of a bag. Now before I pay $13.00-18.00 per bag at Mer-Kote or Pli-Dek or any legit manufacturer, I head down to Jet Coatings in LA, where I buy a bag for $10.00. Savings = $3.00 to $8.00 per bag, plus I get 25% further coverage. On a 100k square feet, what's that add up to? $25,000 in savings? Maybe even $40,000 in savings.

But I'm not done cheating you yet. Most systems require fiberglass and resin over the base coat. So I pay basically full costs for that, fiberglass is about the same everywhere...but resin is another story. Some resins out there are crap and sell cheap. Save $ by buying crap resin at $8.00 per gallon rather than good stuff at $13.00. What do I need for a 100k square feet? 700 gallons? So I saved $3500 by buying crap resin. But I'm not done cheating you yet!

We are supposed to put a screed coat over the glass/resin to protect it. But instead I skip this step, opting instead to just spray texture over the glass and paint it with one coat of sealer. You are supposed to get 2 coats but, remember I'm cheating you...
So skipping the screed coat just saved me probably $8,000 in materials plus labor savings, and by giving you one coat instead of 2 I save more. By buying sealer from Jet Coatings instead of a manufacturer like Hill Brothers or Enduro-Kote, I save $30.00 per five gallon bucket. At 500 buckets to cover this job, I saved $15,000 off my materials bill.

By cheating, I just saved $60,000 in materials. But I'm not done cheating you yet! All the labor I saved by skipping steps, what does that add up to? Another $50 or 100K?

The plans called out for a one hour/class a coating probably. Well I cheated you out of that too! I put down a system that is not evaluated or recognized by any entity such as ICC-ES or the LA County Fire Department.

Now is this happening? Probably...and you won't detect it unless you are very dilgent.

Its a big bad world out there and despereate people do desperate things. The construction industry is very hungry right now and we need jobs to keep the business afloat...and some of us might do whatever it takes, including cheating...

Readers, any comments?

ECHO's Annual Seminar is June 13th!

ECHO, The Executive Council of Homeowners, is having their annual seminar next week in Santa Clara. Northern Cal HOA's should plan on sending their Board of Directors for educational seminars, meet new vendors and service providers and use this to open their HOA's to new and good things.

Click here to go to ECHO's website to register and learn more!

Help Wanted-Roofing Company Has Newly Created Position for a VP of Sales and Marketing

Hey if your out looking for a job, this lead just came in to me today...tell them you heard about it at Deckexpert.com!

OVERVIEW

In response to changes in the marketplace and an increasingly competitive business environment, August Roofing, Inc. recognizes the need to take purposeful steps to strengthen its position. The Senior Vice President of Sales and Marketing is a newly created role to grow sales in all markets and to introduce new, non-traditional channels of distribution. This role will develop innovative strategies for future growth, maximize a synergistic relationship between the company’s sales and marketing departments and formulate ways to utilize sales channels to the fullest advantage.

Interested? Click here to go to the recruiters page at Ardent Search. Read all the requirements and quaulifications, apply etc.

APRA Publishes it's Newsletter for June

APRA, the Association of Professional Reserve Analysts, is a group of professional reserve study providers serving the HOA industry.
They publish a great newsletter for HOA's and their reserve study providers...take a look and read up from this source of good information.

The latest edition of APRA Advisor is available at www.apra-usa.com

IN THIS EDITION
Minimizing Financial Liability. The reasons why no HOA should be without a reserve study.
Ask the Professional Reserve Analyst. Advice worth heeding.
Neighbor Knowledge. Love your neighbor as yourself
Navigating Hard Times. Tips for stretching your HOA dollars.

Association of Professional Reserve Analysts (APRA) is the national trade association for those that carry the Professional Reserve Analyst (PRA) credential. APRA provides a common base of knowledge, standards of care and professionalism. Membership to APRA is open to reserve study providers and affiliate service providers. For membership information, go to www.apra-usa.com

Richard Thompson PRA
President - Association of Professional Reserve Advisors

Regenesis Report June 2009 Edition is Now Available....

Rich Thompson, a colleague of mine, has a great column at Regenesis.net, a website for HOA's...
each month a series of articles are published. Here's the selections this month that will help your HOA.

The Regenesis Report (National Edition) June 2009 is now available for viewing at www.Regenesis.net

IN THIS EDITION

The Role of the Board. Who does what and when?

Ask the HOA Expert. Another set of intriguing Q&As.
HOA eVoting. Use the web to vote to cure quorums and save money.
Proxies with Moxie. Properly done proxies are essential for HOA meetings.
Pool Kick Off. Pool season is just weeks away.

Musical Meetings. Make yours sound like a symphony.
Choose Hope. Despair and hope are both choices.
Keeping Perspective. Focus on the good in your life.
Laws of Life – Sundry. First Law of Decision Making: Any decision is better than no decision.

Why not share The Regenesis Report with some one you love?
Rich Thompson
The HOA Expert™
www.Regenesis.net

HELP WANTED-Waterproofing Estimator, So Cal area

Please note, we are notr receiving any compensation for this post...although now that I think about it, maybe I should. Hmmm.

Well paying it forward then...the Deck Expert got a call today from Greg, who said he was told to call me for help.

Greg has a client who is looking for an estimator for waterproofing. Now before you get too excited, it has some requirements, see below...then send Greg your resume if you meet those requirements. Good luck!

Commercial Estimator with a strong knowledge of the waterproofing industry, 2-5 years would be great.

Ability to read blue prints.

Computer experience needed

75-90K plus bonus and great benefits

Location: Riverside, CA

Thanks, Please contact

Gregory Johnson

CSAM, National Accounts Manager

MANAGEMENT RECRUITERS OF FRESNO

5715 North West Ave, Fresno, CA, 93711

Tel 1: (800)881-4139 ext 116

Tel 2: (559)432-3700 ext.116

Fax: (559)432-9937

Email: gregj@mri-fresno.com

Web: www.mri-fresno.com/gregjohnson.htm