Leveraging the Change Order Philip Kresge Sr. Director, National Resources

What will we learn today? Nothing we don’t already know!

WWW. NRMCA.ORG We know what we should be doing! Maybe we’re not doing it because... Overwhelmed Preconceived notions Complacent

WWW. NRMCA.ORG What we’ll talk about Change order in the scheme of promotion vs. sales Prospecting for opportunities 3 Ways to Facilitate the Change Order  Success Stories Getting the most out of your success  Turning sales into promotion

WWW. NRMCA.ORG By definition, promotion is a long-term investment Influencing a thought process Sales is a more immediate process We usually differentiate between the two Change Order more akin to sales than promotion An everyday occurrence in our promotion efforts Promotion vs. Sales

WWW. NRMCA.ORG Promotion Dogma “Getting in early is key to successful promotion” “Once the job is in Dodge reports, it’s too late” It’s never too late!

WWW. NRMCA.ORG Change Order Substituting a specified building material with concrete.  Asphalt  Wood  Steel

WWW. NRMCA.ORG Job specific Time sensitive Change Order

WWW. NRMCA.ORG Change Order can be most successful if you... Solve a problem for your customer At the time they are thinking about it Do it easily and quickly Selling Solutions

WWW. NRMCA.ORG Prospecting The Usual Suspects  Dodge Reports  Construction News  Local Networking

WWW. NRMCA.ORG Only the most foolish of mice would hide in a cat’s ear

WWW. NRMCA.ORG Only the wisest of cats would think to look there Don’t overlook the obvious

WWW. NRMCA.ORG Mid-job / Next-job recommendation  Landscaper, in the midst of sodding a yard, suggests a rock wall to reduce runoff  Caterer, serving a summer party, reminds client that Christmas is only five months away Review Current Projects

WWW. NRMCA.ORG Review Upcoming Projects Residential  Already doing walls & floors  What about driveway? Commercial  Someone will be asking for a price for footer/floor  What about parking lot?  Flowable fill possibilities?

WWW. NRMCA.ORG Know Your Customer Decision makers Vote yes or no Influencers Can convince decision makers May be stakeholders Should be on your promotion team

WWW. NRMCA.ORG The only way to know is to listen! What does your customer want?

WWW. NRMCA.ORG What are the Hot Buttons? Aesthetics Energy Efficiency Initial Cost Life-cycle Cost Unique Design Sustainable Development

WWW. NRMCA.ORG Listen to customers’ wants and decipher their needs Teach customers to want what they need

WWW. NRMCA.ORG Teach customers to want what they need Energy Efficiency ICF Construction Low Maintenance Concrete Parking Lot Aesthetics Decorative Concrete

WWW. NRMCA.ORG Look at all the possibilities Tilt-up Walls ICF Parking Lots Flowable Fill Decorative Pervious SCC ??????

WWW. NRMCA.ORG Utilize ALL Your Tools

WWW. NRMCA.ORG Promoter may only have minutes for introductory meeting Alternative to using laptop/projector for presentations Fact-finding mission Low Tech Pitch Book

WWW. NRMCA.ORG Concrete Parking Lots  Over 1,000 sold Flowable Fill  Initial orders (300) being distributed now Pervious Concrete (TBA) Environmental Benefits of Concrete (TBA) Low Tech Pitch Book

WWW. NRMCA.ORG Change Order can be most successful if you... Solve a problem for your customer At the time they are thinking about it Do it easily and quickly

WWW. NRMCA.ORG 3 Ways to Facilitate the Change Order Make Suggestions  Exercise your expertise Ask for the Order  The fast food approach Design/Build

WWW. NRMCA.ORG Make Suggestions Use your professional expertise to provide insight Provide alternatives to existing designs Present new technology  Self consolidating  Pervious  ICF Demonstrate benefit to owner  Quality  Economy  Safety

WWW. NRMCA.ORG Salvation Army Allentown, PA Owner looking to resurface existing asphalt Contractor Power of Suggestion Stressed Safety as an issue (hot button) Provided unsolicited proposal for concrete 7,500 ft 2 parking lot

WWW. NRMCA.ORG Muncy Homes Owner looking to upgrade gravel lot Spec’d asphalt paving Team identified “hot buttons”  Low maintenance  Life-cycle cost Taught owner to want what he needs Owner chose to pay $500,000 over asphalt bid Initial proposal  550,000 ft 2 =12,000 yd 3  Owner added 4 acres

WWW. NRMCA.ORG Ask for the Order You are already bidding the job You are already supplying the job Mid-Job / Next Job Recommendation Decision maker may consider alternatives if beneficial  Mobilization costs reduced  Construction schedule “Would you like fries with that?”

WWW. NRMCA.ORG Osram - Sylvania Bethlehem, PA Tilt-up Concrete Building Producer & Contractor made pitch for 296,000 ft 2 parking lot 5,600 yd 3 concrete

WWW. NRMCA.ORG Harvest States Flour Mill Slip-formed building and silos R/M Producer suggested concrete parking lot in lieu of spec’d asphalt Priced competitively due to lack of mobilization costs 5,000 yd 3 of concrete in parking lot

WWW. NRMCA.ORG Smith Transport Roaring Spring, PA

WWW. NRMCA.ORG Originally steel building with asphalt pavement Footings, floors, etc. 3,500 yd 3 Converted to Tilt-up + 5,000 yd 3 Asphalt to Concrete + 4,000 yd 3 Total Concrete 12,500 yd 3 250% increase after project was put out to bid “Would you like to Biggie Size your order?”

WWW. NRMCA.ORG Design Build Possibly the easiest way to facilitate the change order D/B is a strong influencer Producer / Contractor part of the D/B team Present concrete options  New technologies

WWW. NRMCA.ORG Shelter Systems Ltd. Producer/Contractor part of D/B team Owner wants to maximize development of site 7+ Acres of pervious concrete substituted for conventional asphalt Eliminated 1 ½ acre pond “My lumber isn’t sitting in water.”

There will be obstacles along the way

WWW. NRMCA.ORG Not an easy task Much of the world has its defenses up to keep out new ideas Customer’s preconceived notions  Concrete is too expensive  Concrete is too difficult to place  Concrete cracks We can fall prey to our customer’s objections

WWW. NRMCA.ORG

Are we too focused? Sales call to get P/O for concrete footings, floors Pays no attention to customer’s comments about  Material price instability  Manpower issues  Construction delays

WWW. NRMCA.ORG Are we too focused? Sales call to get P/O for concrete footings, floors Misses at least three opportunities  Tilt-up concrete  ICF construction  Flowable fill What about the parking lot?

WWW. NRMCA.ORG Make sure you are solving the right problem! Count Basie

WWW. NRMCA.ORG Choose Your Battles Wisely R/M Producer, Pervious Concrete Contractor, Admixture Supplier aggressively promoted pervious concrete “The perc rate [on site] was.07 inches/hour. One of the ones on the perimeter was.27 inches/hour. There were a few where the rock was so shallow they couldn't perform a perc test.” “The Commonwealth requires a rate of.52 inches/hour for pervious pavements and requires bedrock to be excavated to three feet below the bottom of the stone reservoir.” “The strategy that we have arrived at allows us to collect the water from the bus lot and infiltrate it into another portion of the site that percs more effectively, at a rate between.65 and.93.”

WWW. NRMCA.ORG Choose Your Battles Wisely “We couldn’t agree more with your points regarding economic and environmental responsibility. Based upon those criteria, we determined that impervious concrete, combined with underground percolation storage, would be the most practical method of holding and treating stormwater from the planned... site.” impervious concrete

WWW. NRMCA.ORG A Word of Caution Keep your promotion message positive Focus on benefits of concrete Sell Solutions Handle your competitor’s weaknesses with care Mediocrity Always Attacks Perfection!

WWW. NRMCA.ORG Leveraging Your Success: Turning Sales into Promotion

How can we switch sales back into promotion?

WWW. NRMCA.ORG Publicize Your Success Issue press releases Create one-page flyers Distribute to  Members  Promotion partners  Existing customers  Potential customers

WWW. NRMCA.ORG Osram-Sylvania Project highlighted in Concrete Producer magazine September 1997

WWW. NRMCA.ORG Bed, Bath & Beyond project highlighted in flyer prepared by ICFA

WWW. NRMCA.ORG Tell the whole story Identify the customer/project Identify the wants/needs Quantify the results construction time saved money saved customer satisfaction

WWW. NRMCA.ORG Follow-up Is customer/owner still satisfied? Did specifier include concrete on subsequent projects? Are there any other projects from other specifiers/owners as a result of this project?

WWW. NRMCA.ORG Measurement Yd 3 placed as a result of change order Every yd 3 specified from that point Collect data and update regularly Report findings to members  justifies their investment

WWW. NRMCA.ORG Think outside the box Have you missed opportunities?

WWW. NRMCA.ORG Change Order can be most successful if you... Solve a problem for your customer At the time they are thinking about it Do it easily and quickly

WWW. NRMCA.ORG Remember... Opportunities are everywhere It’s never too late Teach your customers to want what they need Turn your sales into promotion!

WWW. NRMCA.ORG Persistence Pays

Thank You! Philip Kresge