Industrial Elastometrics Nc

QC Commercial, LLC (henceforth QC) was founded by Russ Phillips in 2002 as Quote & Coat Painting. After filing the business as a sole proprietorship on August 1, Mr. Phillips spent the next six months writing the startup plans and performing an array of startup actions. Generating income was not started by the firm until 2003 after it was granted a $60K painting contract as section of a $3M estate home construction project in the upscale Wakefield community in North Raleigh. That first year in company QC grossed $190K in total revenue which afforded about 25% in pretax gain.

During the first three years of operation QC competed alone in the residential new construction and existing house repaint marketplaces. With the exception of a handful of estate houses, the typical project grossed roughly $5K with pretax gains running in the 20 to 25 percent range. With no salesman on working and staff with a nominal advertising budget, sales grew at an uninspiring rate in 2005 to $294K, giving less than anticipated earnings.

During the business' third year of operation Mr. Phillips determined to abandon the residential sector fully and pursue only commercial1 and industrial2 chances. Mr. Phillips took out low budget advertisements in The Blue Book, an advertising publisher targeting commercial general contractors, commercial property owners, and property management companies. While working almost alone in the commercial and industrial marketplaces, the business grew by another $100K in 2006. The move from residential to commercial undertakings resulted in immediate increases in profit margins.

By 2007 QC installed sophisticated coating systems for famous and quite large corporations for example Pfizer, Progress Energy, Becton Dickinson, and Merck. At this stage QC was contracting through a Construction Manager3 (CM) or General Contractor4 (GC)--never directly with the project owner. The CMs/GCs QC partnered with comprised Zachary, BE&K (now KBR), MJ Harris, US Builders, and Fortney & Weygandt.

Brand Demarcation

It quickly became apparent to Mr. Phillips that the company should only operate within the limits of the commercial/industrial marketplace. After spending several years working in the high tech world of Printed Circuit Board production as An Excellent Engineering Supervisor, the Creator was able to identify a degree of professionalism and quality control in industrial construction that was entirely absent in the residential market. This provided an opportunity for Mr. Phillips to showcase his ability to develop and implement ISO5 compliant operating procedures and, once implemented into the company's operations, recognize QC from all of the other regional painting contractors.

QC has established itself as an industrial painting contractor. It recently invested $6K in website upgrades, business card redesign, new logo and tag line, and a redesign of company apparel, i.e., t-shirts, golf shirts, and security vests, etc. These changes are a part of a renewed focus on establishing the business brand. Additional proactive efforts are being made to re-launch the company and are further expounded in Section 3 Marketing Strategy.

QC's active customer base includes commercial/industrial GCs and CMs, as well as industrial production businesses (OEMs)6. Maintenance painting deals with Tyson Foods, Sara Lee, and Herbalife involve the application of industrial, high performance coatings. Because of the complexity of the services provided, QC bills its customers at a comparatively high speed, especially compared to the residential marketplace. Higher rates are well warranted and pricing aspects are discussed in the following section. The same key factors that drive up the cost of industrial and commercial painting are also variables that present obstacles for smaller, less established contractors trying to go into the marketplace.

Cost Variables and Entry Barriers


The goal of this plan isn't to chide the residential construction industry. There are plenty of contractors and subcontractors managing very successful businesses working exclusively in the residential market. Nonetheless, it is crucial to point out the differences in various sectors of building--if for no other motive than to underscore QC's competitive advantage possibility. Most residential building is performed by self-employed (self-performing) contractors and subcontractors. Other than superficial inspections conducted by local municipalities, there is absolutely no regulation or supervision on residential projects, particularly as it pertains to painting. There is seldom a written contract between GC and subcontractor. Because there's no contract, there are really no change orders, so additional work is done in the subcontractor's expense. Residential projects