Table of Contents February 2004

FEATURES

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  Closing a sales deal

  When it comes to sales, Bill Simone of Custom Design + Construction leaves nothing to chance. From the initial call forward, the Los Angeles remodeler sets a sales system in motion to guide his ideal customer to a signed contract.

   

• Using product selection strategies to smooth out remodeling process

  Design/build and full-service remodelers are hiring interior designers, in-house or as partners, to work with existing selection systems, or to have those partners incorporate new technologies with the process.The interior designer can visit Web sites and display images of products or project...

   

Before and After

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  Strong bond between homeowner and remodeler

  Meet Tom Poulin, president of Poulin Design Remodeling in Albuquerque, N.M. A high-school handyman who worked for his father and then started out on his own after graduating from college, he stopped swinging hammers long ago and has shaped his company into a $4 million operation.

   

Reader Panel

• Either the remodeler sells or hands off the responsibility

  Most know that to make a sale, you need to reiterate what you hear, empathize with clients, and establish trust.

   

VIEW POINT

FIRST WORD

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  Finding connectors and creating epidemics

  Why is it that some ideas or behaviors or products start epidemics and others don't?Like the results of Milgram's small-world study, the answers Gladwell proposes are often counterintuitive.

   

News + Notes

• Quality of New Homes

  Two recent reports questioning the quality of today's new homes have caused a stir in the home building industry.

   

• Roofing safety and IRL's safety program

  "Race to be Safe" combines roofing safety instruction with a behind-the-scenes look at IRL's safety program -- with a healthy dose of racing action mixed in.

   

• Fortune Brands Buys Therma-Tru

  In a $925 million transaction last November, Fortune Brands purchased Therma-Tru, a leading manufacturer of residential entry doors."Entry doors add significant value to the home and are among the highest-return improvements homeowners can make," Fortune Brands chairman and CEO Norm Wesley said in...

   

• Providing health insurance options for remodelers

  By Hayden Alfano. We try to be a professional company that chooses to be in the remodeling business," says Frank Zehna, president of Christian Roofing & Remodeling in Athens, Ga. By cutting marketing and other expenses and raising sales goals, Zehna is now able to provide it and pay 50% of the...

   

MARKET WATCH

• Remodeling Market Index (RMI)

  Not only were remodelers pleased with the market during the third quarter of 2003 but they remained upbeat for the coming months.The current conditions portion of the RMI jumped 4.6 points from the same time in 2002.

   

• Projected Increase in Remodeling in 2004

  Increases in personal incomes, low interest rates, and record numbers of home sales will accompany the stronger economy and spur the industry. Census data estimates show that expenditures for residential remodeling and repairs will total approximately $191.3 billion in 2004, up from $182.6 in 2003.

   

COMMENTARY

GUEST COLUMNIST

• The negative effects of the do-not-call registry

  In addition to being highly productive, our marketing department features what I feel are some of the best aspects of American business.

   

LINDA CASE

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  One question to your client answers all

  My business has profited enormously from being guided by what works for our clients -- but even more by learning what doesn't. However, my downfall has always been wanting to ask every possible question and gather every nugget from a client survey.

   

MARK RICHARDSON

• Remodeling: Both Science and Art

  Recently, I was part of a tag-team of presenters at the national Remodeling Show who took part in a seminar that was described in the program as a "Sales Marathon." Is remodeling more of an art or more of a science?

   

WALT STOEPPELWERTH

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  Handyman work has great earning potential

  In the past five years, many design/build contractors have been asked by past customers to handle their handyman projects. Many contractors feel to refuse to do handyman work is to risk losing future business or valuable referrals.

   

YOUR BUSINESS

Sales and Marketing

• Consumer emotions that lead to sells

  People buy products and services because the purchase initiates some feeling, some emotion. Yes, prospects buy based on fear: fear of loss of a good deal; fear that they'll miss an opportunity to save money; or fear that their buying choices won't look good to others.

   

• Using humor (jokesites) to attract business

  Now that Mueller Nicholls does full-service remodeling, he wonders if he should tread more carefully with dicey jokes.

   
• 

  Salespeople taking on more responsibility

  Instead of rewarding sales volume, Stebnitz Builders pays its five salespeople a commission based on the gross profit each job earns.

   
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  Bus Advertising for Goff-Waller Roofing and Waller Emergency Services

  Waller Emergency Services and Goff-Waller Roofing are on the move -- literally. In an effort to get people talking about them, the sister companies are promoting their services with ads wrapping two transit buses in Polk County, Fla."I have more conversations now about the buses than anything,"...

   

BOTTOM LINE

• Tax Tips: Cost of Goods Sold

  Knowing the Cost of Goods Sold (COGS) is critical to determining profit. Next to labor, COGS -- the total of all purchases during the year -- is usually the second largest expense for remodelers.

   

• Protection from vendors declaring bankruptcy

  Jeff and Sharon Rainey were in the middle of implementing a new marketing campaign when their marketing firm declared bankruptcy. "We had not even proofed anything, and we had to pay 100% or it would have been locked down because of the bankruptcy," Jeff Rainey says.

   

BY DESIGN

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  Stone Sampler guide to 576 varieties of Stone

  New from W.W. Norton's Architecture Books series, Stone Sampler is a comprehensive guide to 576 varieties of stone, including onyx, marble, limestone, travertine, and quartzite. Small and portable, the full-color book lists for each sample availability and quarrying location as well as technical...

   
• 

  Promoting aging in place home modifications

  Though they're not exactly new ideas, a recently established nonprofit group hopes to give aging in place and universal design new national prominence. The event was held last fall in conjunction with the first ever Aging In Place week, a series of events the two groups coordinated nationwide.

   

FIELD NOTES

• Grading subcontractors

  The subs who work for Marrokal Construction in Lakeside, Calif., can't complain that they don't get enough feedback. Company president Gary Marrokal realizes the importance of high-quality subs.

   

• Reasons to document change orders

  Documenting the change from the very beginning helps track the time required to finalize the process.

   

• Getting help from the client

  When one of Robert Kutner's clients asked to work on his own remodeling project alongside Kutner's crew, the remodeler said "Yes." The crew welcomed the extra hand, especially because the homeowner took direction well and did not interfere with their work.

   

GOOD FORM

• Proposal Review Checklist

  Winans Construction takes extra care to make sure everything is as it should be every time they do a proposal.Estimator Bret Winans, who uses the form the most and who wasn't working with his parents when they used it before, says the form has been helpful to him.

   

Tech at Work

• Acrobat: PDF makes it simple

  To convert a file to PDF, send the file to Acrobat by "printing" the file and selecting the Acrobat printer that will appear on your printer list after installation. Once created, PDF files retain the formatting of the original document and will look the same when printed.

   

• Excel task list to replace Post-It notes

  Larson used Excel to create an electronic message board on the company's 10 networked computers. Larson says the Task List helps reduce clutter, but more important, it improves staff communication.

   

Ways + Means

• Independent Contractors vs. Employees

  Many home improvement and remodeling companies classify their installers as "independent contractors" for federal and state tax purposes, saving up to 15% in payroll taxes and administrative costs. However, if the IRS or a state tax agency finds that you misclassified a worker, you may be subject...

   

• Consulting Hiring Experts

  To try to avoid getting employees with skeletons in their closets, Fast hired a consultant to assist in the hiring process.

   

• Employee points system

  Mason Hearn of McGuire, Hearn, and Thoms, Manakin-Sabot, Va., has set up an extensive incentive program for his field employees.

   

BIG50

CLOSE UP

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  Owners of Creative Spaces speak highly of consultants

  Twenty years ago, Robyn and Michael Muscardini, owners of Creative Spaces (Big50 1991) were approached by a consultant to help guide them through the world of small business. Consultants work with Creative Spaces to create yearly business plans, set priorities, and measure the success of programs.

   

FACE OFF

• Tying Customer Payments into Projects

  On most projects, we collect a down payment of roughly 5% to 10% of the total contract. That could mean we send invoices as close as a week apart, depending on when invoices come in to us.

   

Live + Learn

• Remodeling Job Mistake

  For Fairway Construction of Southfield, Mich., it was a plum job: a $45,000, two-bath remodel of the master bath upstairs and one of the three bathrooms downstairs in the 6,000-square-foot house. That was when Fairway owner Adam Helfman received a call from the project manager.

   

• Recommended books dealing with business

  My style as a manager has always been an open one, where I share my business numbers with at least my key employees. The book is a study of Open Book Management (OBM) and how to use it to build a motivated and profitable organization.

   

SECOND LOOK

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  Big50 Second Look: Shawn Kumar

  Kumar started in universal design, then formed We Build in San Dimas, Calif., to work with banks on foreclosed properties. Kumar started Handyman Solutions, but he could never equal the volume, or profit, of We Build.

   

SOLUTIONS

• When to fire a field employee

  Good field employees are so hard to come by that letting someone go can be agonizing. Therefore, when an employee makes a mistake like showing up late to work or not returning extra materials for credit, we give them a few warnings before termination.

   

KITCHEN AND BATH

Management

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  Powder room curved vanity saves space

  This powder room vanity was designed to make a small space appear less crowded, while still providing ample storage. "If we had pulled out the counter for the full-sized sink, the door would have nicked the countertop," Linderman says.

   
• 

  LuxeHome Kitchen and Bath Boutique

  Chicago's Merchandise Mart recently launched LuxeHome, www.luxehome.com, a 24-boutique kitchen and bath shopping experience for both design professionals and consumers. "Homeowners will see their finest dream kitchens and baths from their favorite home magazines and design television programs come...

   

• Remodeling a New House

  Remodelers are used to working on houses that are five or more years old. But how about a house that is five days old? Designer Richard Forbes says on one job, he was taking measurements of the new-home kitchen before the settlement.

   

• Commercial feel in a residential kitchen

  The classic refrigerator-sink-stove work triangle creates a stagnant kitchen, says former chef Don Silver. Now a Los Angeles kitchen designer, Silver feels the single sink in the equation is also inefficient.

   

REPLACEMENT

DECKS

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  Many Deck Railing Options Available

  Many deck builders use composite deck planks. The small suppliers Shamblin uses don't stock vinyl railing systems, and it would be impossible for him to install it at less than $35 a running foot and still make his margin.

   
• 

  Salespeople should have set prices, not discounts

  It's my belief that the price should be set and salespeople should sell the job for that price. Only the sales manager or the company owner should be allowed to give a discount.

   

SIDING

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  Getting the siding job done in cold weather

  Where weather gets cold -- really cold -- contractors have ways to get a siding job up. Because materials -- like a piece of metal -- can sometimes fall and disappear into the snow, Schmidt Siding and Windows waits until spring to dispatch a service crew to do raking and maintenance of jobs...

   

PRODUCTS

IN FOCUS

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  Worker Performance Gear and Accessories

  The Jobmaster boot has been improved with Drilex OrthoLite Comfort Foam slip-in inserts that provide breathability and ventilation in and around the foot. The all-leather boot features stitchdown construction for flexibility, a permanently formed Stytherm counter, a hard toe, a non-corrosive steel...

   
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  Caulks, Sealants, & Adhesives

  Quik-Shot cartridges provide 10 ounces of the maker's Power-Fast Plus structural epoxy and AC 100Plus epoxy acrylate adhesives, ideal for a single use or for small-volume jobs. Titebond Clear Choice Sealant provides a clear bead; Titebond Premium Exterior Sealant is designed for use in extreme...

   
• 

  Plenty of wood flooring options

  By Stephani L. Miller. According to Mickey Moore, technical director for the Wood Flooring Manufacturers Association (NOFMA), 21/4-inch-strip oak still is the most popular choice for flooring. "One of the biggest trends right now is hand-sculptured hardwood flooring, where surface texture is...

   

READERS CHOICE

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  DeWalt Small Angle Grinder

  Dave Seegers started out in the business of historic preservation and did a lot of work with posts and beams. He found his DeWalt Small Angle Grinder to be a valuable addition to his toolbox then for mortise-and-tenon work.

   

TRENDS

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  Environmental: Green Building Products

  By Stephani L. Miller. BuildingGreen, publisher of the GreenSpec Product Directory and of Environmental Building News, recently announced its choices for the Top 10 new green building products of 2003. The second annual award recognizes the most exciting products added to the Directory during the...

   

• Multi-point locking systems for the American market

  By Stephani L. Miller. Several door manufacturers -- such as Kolbe & Kolbe, Therma-Tru, Weather Shield, IWP, KML by Andersen, Masonite, and Peachtree -- offer multi-point locks on their tall entry doors. The reason is simple, says John Kufner, market manager for North American entry door...

   
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  Using proper fasteners and connectors may preserve wood better

  By Stephani L. Miller. Fasteners used with ACQ-, CBA-, or CA-treated lumber have been reported to corrode and fail at a faster rate than when used with CCA-treated lumber.Most treated-wood producers using the next-gen preservatives point out that their recommendations for fasteners and connectors...

   

LAST WORD

Bench Mark

• Accurately measuring labor productivity

  Figure out how to get accurate labor estimates and your company will have a real leg up on the competition.Most remodelers will agree that if they had better control over labor costs, they would be more profitable. The typical remodeling company starts the job with a suspect labor price, and the...