by Jake Ables, Director of Concrete Promotion, Silvi Materials

Editor’s Note: In this article, Jake Ables explores the concrete pricing debate—volume vs value—and what it means for contractors and ready-mix producers. This article expands on Jake’s previous article, 5-Tool Player, where he details how to position yourself in the market as a ready-mix concrete sales professional.

There are two dominant schools of thought when it comes to pricing models in concrete contracting and ready-mix production. The first is the volume model, akin to big-box retailers. The goal here is to move as much product as possible at the lowest price. The second is the value model, aligned with service-driven providers who aim to deliver high-quality service and get paid accordingly.

Ask yourself this: Who would you hire—the cheapest lawyer in town or the best? One might be significantly more affordable, but you may quickly find out why. The same logic applies to concrete contractors and ready-mix producers.

This tension plays out on both sides of the concrete supply chain—contractors and producers. It’s an age-old conflict: a customer wants a high-quality product at the lowest price; a producer wants to deliver that product at the highest price. Both are reasonable goals. But how they interact in practice can either create a race to the bottom—or lift everyone up.

The Contractors – The Big Boys

The industrial and commercial concrete market is cutthroat. The barriers to entry are high and the capital requirements even higher. The businesses that succeed in this space are typically large, well-resourced, and highly disciplined. These are the big boys.

In most cases, a few key contractors dominate the landscape. More often than not, it comes down to money. And the money question has two parts: (1) Win the job—usually by being the lowest bidder. (2) Complete the job at a profit—which is the hard part.

Getting the Job

Contractors in this space are squeezed from the start. There’s always someone who can—somehow—do it cheaper. Whether they actually can or not doesn’t matter. To win the job, you have to beat the number. This creates a race to the bottom, a classic volume-based model: take more work for less money, just to keep the wheels turning.

The best contractors know this is a losing game. They negotiate hard with their suppliers to make the budget work. That pressure rolls downhill to ready-mix producers, who are then forced to lower their prices. Which means producers must take on even more work to make up for thinner margins. And the cycle repeats—a vicious loop that leaves everyone poorer, more stressed, and a few shades greyer.

Completing the Job

This is where the teeth of the volume model really sink in. It’s one thing to cut prices to win the job; it’s another to actually execute and turn a profit. When you begin with razor-thin margins, there’s no room for error—and concrete jobs rarely go perfectly. Delays, rework, and coordination issues are costly, and the impact is felt immediately.

With no financial cushion, contractors are forced to cut fixed costs where they can. That often means pushing back on scheduled price increases from suppliers. Producers are left with a tough choice: make concessions or lose the business. And so, the cycle continues. We all spin toward the same destination: bankruptcy court.

The Way Out

It’s not all doom and gloom. Contractors can take control—by being selective.

Some general contractors (GCs) understand the big picture. They know that the lowest bid often leads to the most expensive finished product. Why? Because of time. Time is the one thing you can’t make more of—but you can “buy” it, metaphorically speaking.

This is the contractor’s path to the value model: sell time. Position yourself as the value provider who saves the GC time by delivering the job on—or ahead of—schedule. Find the right GC, give them a value-based price, and explain the logic. “This price ensures we can move efficiently and deliver the job right the first time.”

To do this, you’ll need a high-caliber, value-driven ready-mix partner. Paying the value rate gives you leverage. It means you’re entitled to on-site support, high-performance mixes, real-time scheduling, and fast conflict resolution. These services buy you back time—and that time keeps the GC happy.

This model lifts everyone up. It may mean fewer jobs, but it leads to higher profitability. In this business, the goal isn’t to be the biggest player—it’s to be the most profitable. The value model makes that possible.

The Producers

I was once told the best way to make a small fortune in ready-mix is to start with a large one. That’s not far off.

The ready-mix market is just as competitive—and even more capital-intensive—than contracting. The barriers to entry are massive. And like contractors, producers often find themselves locked in the same battle: volume vs. value.

The Volume Trap

Too often, concrete is treated like a commodity. End users want it cheap, fast, and now. That leads to the thinking: “If we just produce more, we’ll make more.” Wrong.

This logic assumes all ready-mix is the same. It’s not. Producers vary wildly in their technical capabilities, materials quality, and service levels. Treating all suppliers as equal devalues the more sophisticated ones and elevates those who cut corners.

When sophisticated producers are asked to “match” the price of low-end providers, it strips value from the equation. That’s the philosophical flaw. The practical flaw is worse: pushing volume leads to shrinking margins. And beyond a certain point, every extra yard you produce costs more than it earns.

The result? Burned-out employees. Worn-out equipment. Declining morale. Management’s only play is to cut fixed costs—often by leaning hard on vendors. Relationships suffer. Service suffers. Everyone loses.

The Value Model in the Concrete Pricing Debate

The value model flips this approach on its head. It prioritizes quality, service, and strategic relationships. It’s not about producing the most—it’s about producing smarter.

The core principle: do more with less. Yes, producers need enough volume to cover fixed costs. That’s a given. But volume shouldn’t be the identity. With a value-first approach, volume will take care of itself.

This model creates flexibility. You can choose your customers and your jobs. You don’t have to take bad work just to make ends meet. Instead, you can focus on providing real value: priority scheduling, tailored mix designs, expert QC support, and more.

You reduce wear and tear on your trucks and your team. Downtime decreases. Morale improves. Margins increase. The capital saved can be reinvested in technology, facilities, and people. This is the upward spiral of the value model.

Contractors benefit, too. Better concrete, better service, and better scheduling mean smoother jobs and faster turnarounds. That frees them up for the next project—ideally, at a higher price point.

Time, once again, is the most valuable resource. And the value model buys it back.

Final Word

Contractors and producers alike stand to benefit from the value model—if they’re disciplined. You won’t win every job. And that’s OK. A scarcity mindset leads to bad decisions.

Instead, position yourself as a value-added partner. Deliver quality. Provide service. Build long-term relationships.

The goal isn’t to be the biggest. It’s to be the best. The value model is how you get there.