Table of Contents March 2002

FEATURES

• Age-in-Place Market Wide Open

  Contrary to popular belief, most older Americans spend their final years at home, not in nursing homes. Bill Wasch thinks he knows a market when he sees one, and he sees one in adapting and renovating housing for senior citizens and the disabled. The company in which he's a partner -- Senior Serve...

   

• Give 'Em a Niche

  Specializing in a product or service can give your company a competitive advantage. Here are five success stories about remodelers who found and developed a niche.Nine years ago, Shawn Kumar's remodeling company, We Build in San Dimas, Calif., did "anything and everything."

   

• What You're Good At

  No one is good at everything, but to thrive in the remodeling business, company owners must be skilled in several critical areas. Victoria Downing, president of Remodelers Advantage, a Maryland-based industry consulting group, names nine that virtually any remodeling company is expected to have: 1...

   

Before and After

• 

  B + A: Austin Power

  A simple Texas house gets a clever and colorful facelift.So Webber opted for a rear expansion to house the new master bedroom instead of a second story.

   

VIEW POINT

FIRST WORD

• 

  Cashing Out

  By now, most of you are up to your eyeballs in tax forms. Part of the problem is that a lot of small remodeling companies operate as sole proprietorships using a cash accounting system. Cash accounting is OK for reporting taxes, but you need to watch your numbers every month.

   

News + Notes

• Union Battles Temp Agency

  The "Temporary Workers Deserve a Permanent Voice at Work" campaign waged by the Building and Construction Trades Department, AFL-CIO, since April 2000 has led to a host of legal battles in several states for Labor Ready, the country's largest employer of temporary workers in the construction...

   

• Remodeler Charged in Death

  Washington, D.C., police last December charged Virginia contractor Walter Thomas Godbey with second-degree murder in the death of AOL executive Douglas Small. Small had hired Godbey to remodel his Washington home months earlier, the Washington Post reported. According to a series of articles by...

   

• ICC Timeline Set

  The International Code Council member organizations -- BOCA, ICBO, and SBCCI -- are working to develop a merger plan to present for a vote at their Joint Conference in the fall of 2002. "We can only proceed at a pace that will result in the strongest possible single organization," says Jon S. Traw...

   

• Home Improvement 3rd in Consumer Complaints

  Home improvement is one of the top sources for consumer complaints. That's according to 70% of consumer protection agencies that responded to a survey from the National Association of Consumer Agency Administrators (NACAA) and the Consumer Federation of America. "It's always in the top three,"...

   

MARKET WATCH

• Early Recovery

  An economic recovery may be coming earlier than expected. Ten indicators make up the Index: average weekly initial claims for unemployment insurance, interest rate spread, money supply, average weekly manufacturing hours, index of consumer expectations, building permits, stock prices, vendor...

   

COMMENTARY

GUEST COLUMNIST

• Working With the Best

  Our company is known for doing good work while leaving our clients feeling well-served. One of my goals is that an employee will have a better life because he works at Winans Construction.

   

LINDA CASE

• Points for Style

  Shared values attract people and hold them together as a group. There are few magic bullets in the consulting business, but this is one of them: You need to take the positive atmosphere you've developed in your company and the solid values you insist your staff work by and turn them into a system...

   

WALT STOEPPELWERTH

• Partner Up

  Companies like Microsoft, Intel, and Cisco have bought or invested heavily in smaller niche companies to develop expertise in a market. In building materials retailing, companies such as Carolina Builders, Builders First Source, Hope Lumber, Lanoga, and BMC West have gone from small to large very...

   

YOUR BUSINESS

Sales and Marketing

• 

  Making the List

  Bill Wilder of the Case Handyman Services franchise in Minneapolis has found that a relatively new online consumer rating and referral service is a source of good leads and repeat calls. Of 98 leads he has gotten from Angie's List, he has closed 70 jobs.

   
• 

  Showroom Pros and Cons

  Michael Weitz of DW Development in Willimantic, Conn., says the $17,000-a-month overhead for his Design Center East showroom/retail store is a huge nut, but there are plenty of pluses packed into 1,500 square feet of storefront.

   
• 

  The Closing Room

  An $8,327 investment in an LCD projector, projection screen, and other audio-visual equipment turned Riggs Construction's new conference room into a "Closing Room." Three weeks after its opening, $1 million in work had been sold in the room, says owner Tom Riggs, although some projects had been in...

   
• 

  Mardi Gras Marketing

  Sending clients and business partners smoked salmon or candy for the holidays brought little response at the $2.5 million-a-year Crane Builders of Nashville, Tenn. Clients' kids and current and prospective architect partners now fight for the plastic baby dolls hidden inside the generous sweet...

   

BOTTOM LINE

• An Even Break

  Before you can make a profit, you need to cover your overhead. For example: $180,000 Overhead Expense divided by a 30% Margin (0.30) = $600,000 Break-Even SalesCovering your overhead means you won't lose any money, but you won't make any money either. For example: $180,000 Overhead + $60,000 Net...

   

• Maximizing Car And Truck Expenses

  With the "standard cost" mileage allowance rising to 34.5 cents per mile, it's time to convert all cars and pickup trucks from "actual" to standard cost. Actual cost, which multiplies itemized total vehicle expenses for gas, repairs, insurance, and depreciation by percentage of business use would...

   

• Controlling Marketing Expenses

  Every remodeling company should have a detailed marketing plan and operating budget broken out month-by-month. Start by identifying the kinds of marketing activities you plan to pursue and the month you expect to incur the cost. As you develop and monitor your marketing plan in the coming year...

   

BY DESIGN

• Made for the Shade

  The Problem: Design and build an outdoor entertaining space that offers summer comfort in the south Texas heat. The Solution: A canopy that "floats" above the existing roof of the clients' home and therefore allows cooling breezes to enter, but also forms a shelter for entertaining. Project...

   

FIELD NOTES

• Good Post-Construction Meetings

  Mark Henson, Estimator, Medina Construction, Salina, Kan. Our post-construction meetings reflect the company's informal style. Mike Owings, President, Owings Brothers Contracting, Eldersburg, Md. We don't conduct post job meetings in person. Dan Kliethermes, President, Kliethermes Homes and...

   
• 

  Working with Your Boss

  Whatever your position, it's important to work well with your boss. Give a full day for a full day's pay. Almost nothing you can do will endear you to a boss more than to work hard and at your full potential.

   

Tech at Work

• CyberSelections and Sales

  Ebuild, the interactive product catalog, and Builderfinish, maker of product selections software, have created an online tool for remodelers offering the best of both systems."Although the companies have nearly 75,000 products online--and expect to double that by year's end--remodelers can specify...

   

• Long-Distance Design

  When Tom Turnage needed design help, he turned to the user group at the Web site of SoftPlan Architectural Design Software. Although Turnage's design/build firm, The Turnage Co., is based in Jacksonville, Fla., he contracted with two designers, one in Texas and one in Pennsylvania. This allows us...

   

• Using Technology Unconventionally

  A digital camera plus imaging software like Paint Shop Pro (www.jasc.com) goes a long way toward eliminating project misunderstandings. Created as a video/chat product, Netmeeting moonlights as an excellent remote control package, and it's free, unlike LapLink or PCAnywhere. --Joe Stoddard is a...

   

Ways + Means

• 

  Valuable Mistakes

  One exception is John DeCiantis, owner of DeCiantis Construction in Stonington, Conn. He figures that his company can learn and profit from the mistakes employees make. Each month DeCiantis pays $100 to the person on his field staff who made the biggest blooper. John DeCiantis gives $100 monthly to...

   
• 

  Share a Piece of the Pie

  Last year, Novak Construction in Cedar Rapids, Iowa, initiated an incentive program for its 12 field employees. Novak Construction and its lead carpenters split the $16,000 difference. Lead carpenters decide how to divide the money among those company employees who assisted them on the job.Larry...

   

• Close the Loop

  Outside specialists can help you see what's missing.John Janowski's company, Christian Builders in Reading, Mass., has been around for 20 years, and Janowski's never had a problem finding work. There was so much work that the systems Janowski had put in place to keep his company running were...

   

BIG50

CLOSE UP

• 

  Profile: Pam Miller

  Pam Miller, owner of Alchemy Construction in Santa Rosa, Calif. (Big 50 1997), likes her company's size right where it is --under a half-million dollars. Monitor costs Miller says there are two tricks to staying small and profitable: low overhead and obsessive planning. Just in case, Miller builds...

   

FACE OFF

• 

  Face Off: Should I plot a strategy for steady growth, or can I stay small and still be profitable?

  Growing your company strengthens it and gives you the opportunity for greater compensation. Individuals within the company were also maturing, and I found many loyal employees were looking for different opportunities that I could only provide by growing the business.

   

SECOND LOOK

• 

  Second Look: Lance Combs

  Lance Combs (Big 50 1998) and his partner, Terry Skilling, built Rhino Builders to $4.1 million in two years. "So I came home, so to speak." After selling his Rhino share to Skilling, Combs bought Muleshow Investment Co., a firm that does property management, remodeling, and custom trim work, from...

   

SOLUTIONS

• Q+A: Pop the Question

  Bob Dubree, President, Creative Remodeling, North Wales, Pa., Big 50 2000Where did you get our name? If I had to pick one thing, that's probably it.Tom Capizzi, President, Capizzi Home Improvement, Cotuit, Mass., Big 50 1993When are you able to meet our estimator? Gary Schoengold, President...

   

KITCHEN AND BATH

DESIGN CLINIC

• 

  Who's the Fairest?

  When BOWA Builders, McLean, Va., began working on this master suite remodel, they didn't know they would have to literally reflect their creativity. This solution was simple to construct, says BOWA's director of marketing, Stefani Eckenroad. Because it's heavier than a door and sits above the floor...

   
• 

  Clever Drainage for Open Showers

  Allan Browne of Extended Home Living Services, Wheeling, Ill., has two solutions he likes to use for drainage in an open shower. As an alternative to the time-consuming mud pan process, Browne and Bill Wasch of William Wasch Associates in Middletown, Conn., have found that using a pre-made shower...

   

SPEC BOOK

• 

  Appliances

  From high-end cooktops to entry-level ranges, stainless steel finishes continue to dominate the appliance market as consumers cling to its neutral tone, clean look, and commercial appeal. The Profile dishwasher features the ExtraClean sensor that monitors soil content and water temperature and...

   

PRODUCTS

FIRST LOOK

• First Look

  By REMODELING Magazine StaffXactware. The iSkills ILX Construction Training system provides 40 hours of computer-based construction training, complete with full-motion video, audio, graphics, and animation. The door features a two-panel, square-top, smooth-surface design that fits into a variety of...

   

IN FOCUS

• 

  Hand Tools

  New to the Goldblatt line, this magnesium float features a three-position handle that allows the user to grip the tool in a variety of positions and a lowered handle height that improves user control. American Tool Co. The Vise-Grip Toolbox offers seven tools in one, featuring the forged design of...

   
• 

  Door Makers Keep Water From Seeping In

  A second line of defense is a foam spacer in between the frame and the sill that keeps incidental water from seeping in. Pease and Windsor Windows also have door sill systems in place. In addition to keeping the sill off the slab, Pease's No Wick frame system includes dual-seal weather stripping...

   
• 

  Door Hardware

  Inspired by the olive branch, the Linea Oliva collection includes knobs and pulls in four sizes. The Broadway Collection includes door hardware, plumbing hardware, and decorative trim, allowing homeowners to match designs and finishes throughout the home.

   

READERS CHOICE

• Reader's Choice

  By REMODELING Magazine StaffFlooredRemodeler: Bill Wasch; Company: Senior Serve, North Haven, Conn.Product: Plyboo America bamboo flooring, www.plyboo-america.com. In addition to its green attributes, Bill Wasch says Plyboo America's flooring is durable, with a coating that is impervious to almost...

   

TRENDS

• 

  Flooring with History Adds Flair

  For most flooring products, it's not hard to figure out where they've been -- from the factory to the dealer to the bed of your truck is pretty much a safe assumption. A number of companies offer products that can make a statement unlike any other, thanks to a unique lineage, years of wear, and...

   
• 

  Air Out

  Contractors looking to untether themselves from the air hose have more opportunities than ever, as manufacturers continue to unveil cordless nailers and staplers with more power and greater performance.

   
• 

  Safe House

  In 2000, there were 379,500 residential fires in the United States, about one every 83 seconds, according to the National Fire Protection Agency (NFPA). The fires added up to roughly $4.75 billion in damages. The Home Fireman cabinet holds a fire extinguisher and a hose that hooks up to the...

   

LAST WORD

Bench Mark

• Slip Sliding Away

  Slippage measures the difference between estimated gross profit and produced gross profit. "You have to be suspicious of an owner who's doing sales, because owners don't package well," says consultant Linda Case of Remodelers Advantage in Fulton, Md. "Bringing production into the sales and...