Hear the story of how Gary was introduced to job costing at a very early age when told to secure a bank loan to purchase 300 feeder cattle. The lesson learned for “Job Costing”. By Gary Shotton #000381
By Gary Shotton
This text Had some editing but still missing punctuation and will be edited in the near future.
Hello, I’m Gary Shotton and I’m here as a part of Inspiring Better Business. I was 14 years old, a husky kid, actually kind of plump. I wasn’t too tall. I worked along with my brothers to drive tractor and drive vehicles ahead of our time because we live it on a farm. W0e just learned how to work, it was just expected we weren’t, we had played baseball and we had fun we weren’t not slaves to dad he were very generous with our time but we worked, and one day on a Tuesday dad tells me to go get some jeans on we’re going to town, well that was a surprise to me because never had I ever gone to town with dad on a Tuesday when he went to the cattle sale, I just never was asked no big deal I went and got some better jeans on, didn’t dress up but I had my boots and you know western kind of look and we’re driving it’s about 40 minutes to get to this town of LaJunta Colorado and about 10 miles out from their destination dad starts talking now, dad is a quiet person he’s not my personality, where I talk a lot he would just be quiet for like 30 minutes and that means it’s time to think and I was thinking about girls and sports that’s the two things I just kind of, discovered girls and I’d always been interested in sports and 10 miles out dad says hey Gary go in there and borrow enough money to buy 300 head of cattle to purchase to start the new organization of Shotton brothers partnership, that would be my older brother myself and my next younger brother we’re pretty close in age, new to me never even thought of that, I wasn’t even on my mind nobody even prepped me and i probably dismissed it because it’s just about all he said was going there and borrow the money, well that’s one of those times I have that picture in my mind as dad pulled curbside in front of the bank and i got out and slammed the door you know like you would on an old pickup and stepped away from the pickup truck and he drives away there’s the picture in my mind his taillights of the pickup as he drove away ” wow” this is a little more different than I was expecting and he had told me the main name of the man doesn’t matter and I went in and asked for that man and he started asking me critical questions basically what would be the cost of the animals going into the feedlot we fed them in commercial feedlots and then what would be the price per pound of that animal going in and I pretty well knew that one then he asked me well you’re going to gain this animal about 300 pounds over about a hundred days what’s that going to cost per pound to gain that 300 pounds and I looked at him I says you know I really don’t know the answer to that I’ll probably have to ask dad and then what are you going to sell them for and well I had a pretty good answer for that and you know we got that loan not because of me, dad knew that banker but I know he did not call ahead because dad would not have spent any money on a long distance phone call when he knew that this guy would pick up, they were kind of friends and he knew this guy without any warning would pick up that I’m being trained and it looks back now as an entrepreneur more specifically, I’m being trained and this is the lesson for the day job costing how do you cost jobs on these parts behind me we job costs that’s a part of it, if we bid on a job we got to know if we made any money, if you’re going to build a house and you’ve got contracts for 10 houses you’ve got to know that every single house is making a profit, because at the end of the ninth house you might be out of money you got a job cost constantly in your own personal spending thank you for Dave Ramsey that he’s a household budget guy, where your job costing the cost of running your household budget and somehow from that very start I can’t say I’m great at it ,but I’ve always thought what does this cost and how much can I sell it for and is there potential for profit that’s the lesson if you’re going to be a business owner it’s as simple as that don’t have to have eight years of college to figure out, I got this amount of money that I can spend and get to this point and I’m going to sell this service is included I have this amount of labor in a service by the hour I had a moving and storage company it was mostly service and so I had this amount of a rate that I could charge the customer, and here’s the cost that my manpower was and here’s all my other expenses and I was job costing job after job after job here we do hundreds of jobs every month and we have to job cost those jobs to see the sum of the small incremental job is the sum of the end of the month or the end of the year, I am blessed to have that opportunity that is a part of being an entrepreneur thanks for being a part of inspiring better business you.
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