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Proud to be ALLU

QLD Rock Breakers is proud to announce that we are now the Australian distributor for ALLU Transformer and Processor attachments! When we saw the opportunity to partner with a very professional Scandinavian quality supplier with a unique and innovative product that can give our customers a competitive advantage, we simply had to jump in. We will provide you with more information in coming editions, but for now, take a look at this video. This product can truly transform your profit by turning waste products into a revenue source.

We are normally good at forecasting demand, but on this occasion, we have seriously underestimated the need for this product in our industry. As the first shipment has already sold out before even arriving, we are taking expressions of interest and pre-orders from customers wanting to get to the front of the queue… This product has applications and potential beyond our wildest imagination. See it in action here.

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Watch the cents

We’ve all heard the saying “watch the cents, and the dollars will look after themselves”. Most people take this to mean that if you take care of the little things one at a time, they can add up to big things. This is a great mantra to use in business and personal finances. When it comes to running your business, below are some of the things that can make a considerable difference.

Firstly though, a quick quiz:

-          What’s has a greater impact on your bottom line: increasing sales by 10%, or reducing costs by 10%? Let’s use a 30% margin on $1,000 of sales, meaning $300 in gross profit. Increasing sales by 10% to $1,100 means increasing gross profit to $330. The cost was $700, so a cost saving of 10% means you saved $70. Unless you have margins of 50% or greater (which most businesses don’t), the answer is that most businesses should “watch their cents”.

So, how do you do that? Buying better is one obvious answer, which is why more and more smart businesses are now making savings by using new replacement parts (rather than genuine), or buying a good used machine rather than a new one (which has much more to depreciate and higher interest costs).

Lacking attention to detail and pick up the little things (like paying for things you haven’t received, or being overcharged) are common areas for improving many businesses. Looking at Machinery related costs, common mistakes that can easily improve your bottom line include:

-          Time frames for fixing things. We regularly see businesses not considering all aspects when making repair decisions, for instance down time. Getting three companies to quote, waiting often several days, only to have your machine unusable costing you in lost productivity (that you’ll struggle to make up) and direct costs (the machine is still costing you $X in fixed costs per hour, whether you are using it or not). You still have to repair the machine, usually it’s better to just get on with it.

-          Waiting until things break before fixing them. Using an engine example, not adjusting valves only to have them break will result in a much bigger repair being required. It also means unscheduled down time, rather than repairing when it didn’t impact on your project. Preventative maintenance is very important.

-          Fixing things piece meal. Using undercarriage as an example, replacing some rollers but not a full set, or putting new rollers onto a machine with worn chains will prematurely wear out the new rollers.

-          Spreading orders across several suppliers to get the cheapest price on each line item – usually these are the companies that forget to include things like freight costs in their “savings” calculation, compare apples and oranges, and forget that most suppliers learn your habit hence you probably don’t get the best prices anywhere (even though you might think you do). RDW is unique in that we can be your one stop shop, and give you options whenever we can.

-          Over capitalising on a machine by spending more on a repair than you’ll get back in a sale. Another common version of this is to keep throwing good money after bad, and knowing when to call it quits or limit the repairs to only what is required is a valuable skill.

-          Shortcutting jobs. For instance, if you have a component pulled out for a reseal, replace wear items so you don’t have to pull the component out again prematurely. The extra cost to replace the parts is small by comparison.

-          Looking at the hourly rate, rather than total price. I’d rather pay someone 50% more per hour, if the job takes half the time because they know what they are doing.

-          Poor purchasing processes and unproductive accounts departments. Review your purchasing processes so paperwork doesn’t have to go back and forth awaiting sign offs before being paid or a purchase order raised by having a streamlined system. If you don’t trust your employees, you probably have the wrong ones (and checks and balances in your systems should pick problems up).

-          Well run businesses pay their bills on time. We’re often astounded at how some accounts departments must spend nearly every hour of the day fielding unnecessary calls from unpaid suppliers – the “saving” of not paying on time is more than eaten up by lost time, and reflects poorly on the business’s reputation. By having a history of paying bills on time, you are also more likely to get help when you need it most. And if you do hit a rough patch, talk to your suppliers about the situation rather than avoiding them, they might even be able to help because they value your continued success!

As always, onwards and upwards!

Fred Carlsson

General Manager

Your Total Earthmoving Equipment Solution

  • Quality machinery coupled with specialist advice and industry knowledge
  • 100% Australian owned and operated
  • First class personalised service, Australia wide
  • Committed to our people, our clients and quality solutions
  • Providing power to your project, since 1988

Call 07 3875 1358 today or fill in the enquiry form and we will get back to you as soon as possible.