Six steps to make your concrete batching plant profitable without losing money

Everyone invests in concrete batching plant to reduce production costs and risks, increase profits and avoid some losses, here is an in-depth analysis of how to make a mixing plant profitable without losing money.

In recent years, under the influence of some related industries, the overall performance of the domestic concrete industry has been poor, and vicious price competition has led to chaos in the development within the industry, resulting in the decline of concrete mixing plant profits. However, in addition to the impact of the overall market, many mixing plants themselves also have many problems, such as high operating costs and material costs exceeding expectations, leading to the closure of batching plants.

So, in the current situation, how to reduce costs and achieve the growth of profit points?

First of all, we need to understand, control the cost of batching plant where can reduce operating costs, in the mixing station daily expenses, material costs, equipment maintenance and repair, fuel costs, personnel wages, vehicle costs, business marketing costs, etc. account for the vast majority of costs. 

How to reduce these costs?

The first step Raw material cost

The materials used in the production of concrete batching plant include aggregate sand, cement, fly ash, admixtures, etc. In order to reduce the cost of this part, we must realize the supply channels of raw materials, reduce transportation costs, and reasonable concrete ratio.

• the choice of materials, under the premise of the same quality of the mixing plant, must choose a comprehensive procurement cost is low, which includes the price of the raw materials themselves, transportation costs, etc., not just a purchase, multiple communications, a variety of options.
• Have a clear control over the dynamics of the materials market, because the price of the entire materials market is also in a range of fluctuations, so you can buy more appropriately when the price is relatively lower, develop a specific production schedule in advance, calculate the approximate production tasks for next year based on the annual concrete production, and pre-stock goods when the price of materials is relatively low.
• In the process of concrete production in the mixing plant, the same grade of concrete can have a variety of ratios, the laboratory to ensure that the quality of concrete remains unchanged, to give a money-saving fit program, the development of a good ratio test program is no problem, a good ratio of concrete in the mixing plant can save millions of dollars a year for the enterprise. 

The second step bataching plant equipment maintenance spare parts

Many bosses are this point is not handled very well, many times in the machine failure to repair the place, usually no normal mixing plant repair spare parts reserves, this is very bad.

First of all, the temporary repair of the mixing plant, the purchase of spare parts will certainly delay a lot of time, and, you see the common parts can be found locally, if it is some unusual spare parts, then you can not guarantee that you can find them at any time, which adds a degree of uncertainty to the continuous production of concrete mixing plant.

Therefore, the daily maintenance parts must be sufficient, a perfect mechanism for the purchase and use of accessories should be established, and the outgoing storage and warehousing need to be clearly declared, while the prices of the parts on the market should be compared, and some cost-effective parts should be selected while ensuring the quality.

At the same time, for some mixing plants, the replacement and maintenance of basic spare parts must be carried out in accordance with the cycle, such as mixing host liner running production 100000 square concrete replacement once, according to this frequency, to ensure the normal operation of the machine.

Step 3 Fuel cost of batching plant vehicles

Fuel cost is mainly concentrated on mixer and pump truck, which is a large part of daily expenses. According to the oil price in the market, some oil can be stored properly and many concrete batching plants have their own oil depots. At the same time, the fuel consumption of each vehicle is dynamically tracked to ensure that it does not become greasy during the use of fuel, and a corresponding fuel saving incentive program for gas stations is established to provide certain rewards for drivers who consume less fuel each month, so that the drivers have a concept of fuel saving.

Step 4 Salaries and business promotion costs for batching plant personnel

Generally speaking, the salary of mixing plant personnel is a relatively fixed figure, and it is really hard to start saving costs here. It is not right to reduce the salary of workers in order to save costs, so it is necessary to do something in other ways.

Strengthening the reward and punishment system and management system for employees is not about how to discipline them, but just to make them more responsible to the company." The status quo in many concrete mixing plant companies is that there is no dedicated person for a particular job and many people are working at the same time. In this way, the efficiency of work is low and the motivation of employees does not increase. At the same time, daily production should be eliminated from wastefulness. The cost of business promotion should also be based on the volume of business. Employees who have exploited the loopholes in business management should be cleaned up in time. Smart managers should improve the treatment of employees, merge work and eliminate employees who cannot provide performance.

Step 5 Risk avoidance and competitiveness of concrete mixing plant

The big risk of the company is not aware of the existence of risk, for some small daily things we think it is not a risk, but, to a certain extent, the accumulated risk may explode, which leads Kia to bear a heavy blow, such as a sum of money can not be recovered, a powder into the wrong tank, a concrete hit the wrong material, and so on, may make the mixing plant into a crisis.

Step 6 Control concrete quality risk and capital risk

• Concrete quality risk

Mixing plant concrete itself is an hourly commodity, so to produce its quality, we must have a clear understanding of what it includes, then, what are the risk factors?

A. Improper use of raw materials: the original need to use type A raw materials, but the production of B raw materials, due to the existence of a price difference between pure raw materials, which will produce a certain quality risk, mainly due to improper mixing ratio.

B. Measurement error: The weighing system of the mixing plant is very critical and needs to be checked and calibrated regularly, so when a material needs 100 kg, the weighing system gives 200 kg, which is a big cost and also does not guarantee the quality of the concrete produced in this way.

C. Wrong input of task list: Different task order is different production requirements, including specific production volume, matching ratio and other risk factors, so the specific content of the task list should be done before production.

D. Wrong concrete delivery site: This situation is mainly caused by the lack of communication, such as A-grade concrete delivered to the construction site where B-grade concrete is needed, which will cause serious safety risks, and the construction party is also responsible for the mixing plant.

• Capital risk control

Many concrete mixing plants buffer the production of concrete in order to compete, which is a big risk problem. Once there is a return problem, the capital chain of the mixing plant may break, leading to the mixing plant itself into debt crisis. So, how to prevent it?

A. Increase the percentage of prepaid funds for specific purchases and stop zero payment buffer production.

B. Find out the real strength of the customer, and customers with return difficulties must be turned away.

c, a small amount of concrete cash payment, a large amount of concrete according to the contract called regularly, for not timely payment, timely brake, stop the supply of concrete.

Always pay attention to the enterprise's capital turnover, sustainable development of the mixing station depends largely on the level of debt management and enterprise management, improve the level of management, so that the enterprise is always in a virtuous cycle, to solve the problem from the root and do a good job of risk avoidance.