At $90,000/month profit, Jeff asked, “Am I Making Too Much Money?”  What would you have said?

At $90,000/month profit, Jeff asked, “Am I Making Too Much Money?” What would you have said?

“Damn”, Jeff realized that the government was going to find out;

He was making $90,000/month.

What will you do when it happens to you?

 

 

 THE PROBLEM:

The phone rang, it was Jeff Williams. “What’s going on?” I asked.

He was deeply concerned as he said,

“What happens when the government finds out that

I’m making $90,000/month profit on one of our federal contracts?”

 

Below is an “insider” email: Confirmation of the conversation with one of the graduates of the “Advanced Federal Construction Training” Workshops:

[ See Jeff talking about his training  HERE]

From: “Doug Reitmeyer”  <doug@gcexperts.com>
Subject: [info] Your New Bureau of Land Management (BLM) contract
To: “Jeff Williams”

Hi Jeff, This email is a confirmation of our phone discussion today.  You called about your first BLM contract pay request for $190,000, being sent to the Contracting Officer (CO) today.

Your concern was that, under the terms of your federal contract, the BLM requires that you fill out forms that will tell the BLM how much of the $190,000 they are paying you, is being paid to which specific subs and suppliers.

You are only paying out $100,000 of the $190,000.

Thus the BLM is going to know that Joe Funk Construction is making about $90,000 in margin this month on your contract. And because it is a unit priced contract they’ll know that you’ll be making $90,000/month for the life of the contract; nearly half of the full contract price is profit.  What if you are asked to explain the huge profit margin?

OK – I got the picture and understand your concern.  Here’s what I explained to you:

First – it is OK to make A LOT of money on a federal contract, so there is no need to suffer guilt. My $960,000 Walter Reed Army Medical Center contract cost $308,000 to complete, so the profit on that job was $652,000 – a whopping 68% of the contract!   Our bonding company, when they saw the numbers, actually asked if we were laundering drug money (in all fairness, the job was in Washington DC when its Mayor, Marion Barry, was jailed for drug possession and use).

Like I said, it is OK to make A LOT of money in this business and you don’t have to explain it – you are just really good at what you do because you learned how to greatly increase margins and revenues by “The Industry Expert”, Doug Reitmeyer.

Given the fact that your BLM project was competitively bid and you were the low bidder by $4,000, Uncle Sam has already received the benefit of competition in the marketplace.

Second – Understand the agency budget – over $1.1 Billion.  Get familiar with each agency you work with and let them know that you have studied what they need and why they need it. Explain to every BLM employee that you want to be a valuable resource for them.  Over time they might surprise you with a request to take over a project for them.

Building relationships with Federal procurement officials brought me many millions of dollars in contracts that never went out for bid. A couple of the attachments to this email should help you to become conversant in the language of the BLM budget, requirements and goals.

Third – the more money Joe Funk Construction makes from doing federal contracts, the more resources it will put toward the effort to get more of them.  That’s a BIG PLUS for us taxpayers; We want and need competition.  Profits always breed competition, so high profits are very good for the economy.

That all said, I really want you to know how proud I am that you came to the Workshop, took notes, followed through with the phone calls, attended the webinar and followed the Blueprint exactly as it was laid out for you.  And your first six months results of over 42% average profit margin and more than $480,000 profit have been even more impressive than my average over the past 35 years; Commendable indeed!

Attached are some of my comments regarding the “Sales Dance” as posted on the LinkedIn “Construction Business Owners” Group.

All the best to your continued success with our program,

Doug Reitmeyer, Phone 512-260-4008
Results:  http://GCExperts.com/workshops

cc:  Rusty Norris, President, Joe Funk Construction Engineers, Inc.

Attachments:  Doug Reitmeyer’s “The Selling Dance”
BLM Budget
What they say . .

 

Do You Need Convincing? Watch the brief videos:

You can see Jeff in this original “end of Workshop” video:

Then again in these two videos after his 2nd time attending the Workshop:

Subscribe to me on YouTube
* Six months after putting our systems into their business, Rusty sent this email:

Doug-

Since May 1st JFCE has bid 20 federal projects. We have won 3 projects totaling $1,139,618. Our anticipated profit on these projects is 42.6%. If we can continue at this pace, we will consider our first year in the federal market an outstanding success.

By comparison, we have just completed $12.7 million in DISD school renovations at a 6% profit margin.

Thank you very much for helping JFCE get started in the federal market, and thank you for your continued support since the workshop.”

Rusty Norris, President
Joe Funk Construction
Dallas, Texas 75229
972-406-5206 Direct
rnorris@joefunkconstruction.com
www.joefunkconstruction.com

pies

Attachments:

BLM Budget

What They Say About The Advanced Federal Construction Workshop

The Selling Dance

Federal Contracts: Stop Spinning Your Wheels . .

Federal Contracts: Stop Spinning Your Wheels . .

Are you “Spinning Your Wheels” when it comes to Federal Contracts???

I had just turned 16, received a drivers license, talked my mother into ’borrowing’ her VW Beetle, then drove it down to the beach in Monterrey, CA. Within just a few minutes the car was stuck in the sand. While I was working the gas pedal and clutch, my friend tried to use my algebra book as a friction platform. Not only was that useless, the spinning tire shredded the cover and most of the pages.

After about 15 minutes of getting almost no where, a large group of kids
on the beach were recruited to help out. Collectively, we literally
picked up the small car and carried it, a few feet at a time, back to
pavement. Arriving home over an hour late, at first my parents were
upset . . . until I showed them my text book. We laugh about it now, but
at the time I suffered intense anxiety and frustration.

In today’s world of hyper-construction business competition, you may
feel that you are “spinning your wheels” and not getting the real
results that you deserve. So what’s keeping you from recruiting a couple
of industry experts to help you get traction in this market?

Ego? You think you can figure it out by yourself? Hey, has the last year
been better or worse – in other words, “How is that working out for
you?”

Financially challenged? If you are in business, you already know you’re
spending money every month just to survive. The fact is, when you bring
in a team of experts, you’ll discover that it is costing you far more
not to have access to the over $250,000 worth of training, tools,
templates and technologies that will forever change life and business
than to be suffering without them.

There is someone who has been where you are at, and figured out the
solution to every business problem you have and will ever have in the
federal construction business. But don’t take my word for it, see what
your peers are saying about it here:

http://GCExperts.com/workshops

The next high-intensity, 3-day Workshop will be in Austin, Texas, this
March 5-7. The Workshop is limited to 6 tickets/12 people (2 people per
ticket) and the first four tickets have already been taken.

If you are serious about “Stop Spinning Your Wheels” in regards to Federal Contracts: here’s my guarantee:

This upcoming Workshop will be the most advanced and powerful
construction business training that has ever been delivered. And if you
don’t think so, for any reason, just ask for your money back. That’s
right, if you are accepted into the Workshop, your investment to attend
is at ZERO risk to you, 100% to me.

You owe it to yourself, your family and your employees to discover why
we call this the “Most Powerful Federal Construction Business Training
Ever Created” and see if you qualify for an invitation.

Simply call me at 512-750-2677 or email doug@gcexperts.com and set 15
minutes aside for us to talk about you and your business to see if it
makes sense for you to join our exclusive program.

Sincerely, Doug Reitmeyer (Google “Who is Doug Reitmeyer?” to learn more)

PS – If you are on LinkedIn, please connect with me here:

http://LinkedIn.com/in/DougTheExpert

Subscribe to the Federal Construction Magazine . . Sneak Peek the current issue:

http://www.federalconstructionmagazine.com/sneak-peak-4-freewinter-2012

Quote of the day:

“An ounce of action is worth a ton of theory.” – Ralph Waldo Emerson

Next year, you will be more disappointed by what you didn’t do than by
the action you take today. Call (512) 750-2677 and let’s get you on the
right track and moving in the right direction to succeed.