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FEATURES

  • Selling Green

    The diligent remodeler launches into the vast world of green building.

     
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    Small Company, Big Projects

    When Gary Rochman was a younger man and working as a designer in an architect's office, he would sneak away evenings and weekends to see the designs he had drawn being built. “It's a wonderful thing,” he says, “to see your designs come to life.” Not satisfied with just visiting the jobsite, Rochman...

     
  • The Main Event

    Event-based marketing is paying off for remodelers everywhere. But which event is right for your company?

     
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    Natural Beauty

    The palette of materials — granite, wood, slate, and glass — used in this light and airy bathroom remodel is fitting for the home's woodland site and views of nearby treetops.

     
  • Working with Consultants

    Most remodelers are not skilled in every aspect of the business world — and they don't need to be. Part of learning how to thrive and grow in a competitive market means seeking outside help, and there are consultants who can help you become more effective in just about every business area. Many...

     
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    Artfully Crafted

    Efficiency and pleasing aesthetics blend seamlessly in a kitchen that marries contemporary elements with traditional roots.

     
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    A Tree Grows in Baltimore

    They say the smartest companies are founded on the strength of an idea. That appears to hold true at Ilex Construction & Woodworking, which has grown from a scrambling startup in 1986 to a well-heeled business with 200 employees and more than $30 million in revenue.

     
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    Mixing Bowl

    When architect Robert Brennan was called to the Chevy Chase, Md., home of Nancy Sachitano and Paul Andrews, he felt right at home. That's because a few years before, the principal of Brennan + Co. in Baltimore had designed an addition to the 1950s ranch that included a family room, master suite...

     
  • Design for Profit

    When he started out 16 years ago as a practicing architect and partner in Socha Builders, Rob Adler did not charge anything for the creative phase. “We charged nothing so as to get noticed, and we agreed in advance that if the client was pleased with the design, they were only obligated to pay for...

     
  • Connecting Relationships and Selling

    It's a no-brainer that people want to hire people who they like and trust. And because much of remodelers' work comes from referrals and reputation, the most successful upscale companies not only do top-quality work but also build strong, enduring relationships with past and prospective clients.

     
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    Courting Privacy

    When Austin, Texas, contractor Shiloh Hartman was asked to remodel an architect's personal home, he was apprehensive. “Often there is this thing between architects and builders,” Hartman says. “It would be a challenge for me working on an architect's house. That's their dream. It would be even more...

     
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    Creating Opportunities

    Jay Simon was concerned with just two things when the construction company he worked for in 1982 was about to go bust: One, he had to ramp up his sideline remodeling business to take on the clients that his former employer would abandon when it closed its doors, and two, he'd have to use his...

     
  • Opening the Books

    Open book management, or OBM, is a management style that gives employees access to all the company's financial numbers. When coupled with profit-based bonuses, it's supposed to make everyone more invested in the company's success.

     
  • Line Drive

    With half the 120 million homes nationwide having been built before the bicentennial, new-home prices spiking, and built-up equity burning holes in homeowners' pockets, most remodelers have more work than they can handle. Some sit on 18-month-plus backlogs and mentally salivate as they watch their...

     
  • The Perfect Handoff

    In a sloppy or rushed handoff, details worked out by the designer and expected by the client can get lost like sand through the boards of a deck. Although a flawless handoff is key to a successful project, the foundations for it are laid long before the pre-construction meeting when the actual...

     
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    Upscale Outdoor Living: Four Projects Climates

    In the beginning, outdoor living was the only option. Early humans then took shelter in caves and huts, and with the progress of civilization retreated to cottages, condos, tract homes, and mansions. Eventually, humans ventured outdoors again, to cook on tin barbecues and nap on aluminum loungers...

     
  • Opposites Attract

    Geno Benvenuto is his affability. But he turns the oft-used quip about nice guys finishing last on its head. As owner of Benvenuti & Stein, Benvenuto has grown his Evanston, Ill., company from the blue-sky dreams of a 20-something carpenter to a profitable design/build company on course to take in...

     
  • By the Numbers

    As a successful remodeling business grows from a one- or two-person operation to a company that warrants a dedicated sales staff, the owner must often assume the role of sales manager. But managing people who sell requires a different set of skills from selling itself. Though entrepreneurs tend to...

     
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    Room with a View

    During the months that it took David Shall and Susan Corzilius to get a $65,000 remodel of their master bathroom, one moment stands out as especially gratifying. It was an August evening in their Southern California home. After five months of planning — and the day before construction began — Shall...

     
  • Fine-Tuning Direct Mail

    When you're competing in a sea of upscale remodelers for homeowners already numbed by unsolicited mail, you might be tempted to save your money for another marketing medium. Bruce Wentworth opted instead to make a splash — an oversized one.

     
  • Loft Lines

    This custom-designed loft project began when homeowners Nancy Moses and Myron Bloom wanted to move a wall in their Philadelphia condominium to widen the hallway.

     

FINAL TOUCH

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    Doors and More

    Since 1977 Jerry and Tim DeSantis have been drawing on their backgrounds in art to fashion one-of-a-kind pieces for residential and corporate clients through their company DeSantis Designs, located in Herndon, Va. Jerry has a BA, MA, and MFA in studio art. Tim has a BA and an MA in sculpture.

     
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    Tile Tale

    Customization is virtually a standard requirement in any upscale space. One way to achieve it is to incorporate hand-painted tiles into the room.

     
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    Material Magic

    Carrara marble dyed black to create dramatic textural elegance. Acid-etched concrete that never requires resealing. Lightweight limestone blends for seamless countertops. These are just some of the material effects that Joe Ginsberg uses in the virtually limitless range of custom furnishings...

     
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    Color Underfoot

    John Stefanowicz says that there are two truths about concrete: “It gets hard and it cracks.” His company, Stefanowicz Concrete, Wimberley, Texas, has been working with concrete since 1981, building residential and commercial foundations, driveways, sidewalks, patios, and using concrete in interior...

     

INSIGHT

  • Artful Structure

    The structural components of a building, if left exposed on the inside or outside of the home, can be artful expressions in their own right.

     
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    Is Architecture/Build the Firm of the Future?

    Architects and builders have been jockeying for control (and respect) ever since Thomas Jefferson called his architect a stubborn jackass — and then promptly punched himself in the nose.

     
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    Change as Progress

    When I was a child, there was an expression I'd hear my parents utter from time to time: “Things aren't what they used to be.”

     
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    On the Beam

    Posts and beams provide a form of interior décor that is at once functional, attractive, and informative.

     
  • Adopting a Customer-Oriented Culture

    While maximizing your return on customer (ROC) sounds like a purely financial goal, the fact is it requires a customer-oriented perspective.

     
  • Web Site Essentials

    Crucial elements that should be on your Web site.

     
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    The Power of Distinction

    Taylor Hicks probably won this year's title of “American Idol” as much for his individuality as his talent. To voting TV viewers, the 29-year-old's salt-and-pepper hair, down-home casual singing style, and rough-around-the-edges manner may have seemed like a refreshing change from what they might...

     
  • Slippin' & Slidin'

    A hinged door is a wonderful device for separating one room from another, but it's by no means the only one. By including sliding doors and panels into our set of spatial connecting devices, a number of common visual problems can be solved.

     
  • Building New Business With Past Customers

    If you can learn about what is happening in your past customers' lives — their “lifestyle changes” — you can anticipate what services they will need from you in the future. Lifestyle changes are all the occurrences that mark shifts in life, such as getting married, buying or selling a house...

     
  • Put Your Web Site to Work

    Most upscale remodelers have already embraced the Web site as a promotional tool, but a well-planned Web site can accomplish so much more. It can boost morale, act as your company's institutional memory, serve your clients during and after their project, and even head off prospects who are not a...

     
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    Between the Lines

    Product introductions reveal so much more than an individual manufacturer's agenda. Reading between the lines or, rather, across the lines can help you ascertain design directions and get a handle on the consumer interests and lifestyle needs they are intended to satisfy.

     
  • Shelter Activity

    Have you ever noticed that when you are looking for a comfortable place to sit, you often select a corner rather than the center of the room?

     
  • Growing Your Return on Customers

    To grow your business, you can expand your client base, but why not also make money by seeking more business from existing clients? You'd save on selling costs and would have fewer discussions about pricing because the clients already have done business with you.

     
  • Deliver “The Experience”

    Are “upscale” clients really different? Well, for starters, upscale clients usually don't remodel because they need to — they remodel because they

     
  • Listening Up

    Are you a good listener? Dean Brenneman and Martha Rogers think you need to be. In this issue, both begin their stints with us as regular columnists by exploring the nature of your relationship with the upscale client.

     

INTERVIEW

Ten Minutes With...

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    Janie Curtis, managing director of Frank About Women

    Frank About Women (www.frankaboutwomen.com) specializes in marketing to women. It provides clients with gender-savvy insights, business strategies, and marketing communications programs designed to drive sales and profit growth among female customers and prospects.

     
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    Ramesh Patel, president, Les Concierges

    Les Concierges is a premier provider of assistance-based loyalty solutions. Industry leaders rely on the company's concierge and personal assistance programs to acquire and retain customers, and to increase employee productivity.

     
  • Vickie Abrahamson, co-founder of Iconoculture

    Identity is another key value. Boomers feel that they have a unique identity and a need to maintain it. They want to make choices that are “cool” and that are perceived as being on top of trends.

     
  • Gregory J. Furman of The Luxury Marketing Council

    Founded by Gregory Furman in 1994, the Luxury Marketing Council, www.luxurycouncil.com, is a nonprofit organization composed of leading marketers from major purveyors of luxury goods and services throughout the U. S. and abroad. The Council has recently embarked on efforts to form the Luxury Home...

     

PEOPLE

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    Family Matters

    Tips on balancing business and personal relationships in a family-owned company.

     
  • Roll Out the Red Carpet

    Provide the extra service that high-end clients expect by giving them the “white glove” treatment.

     
  • Parlez-Vous Body Language?

    You're talking to the client sitting before you when you notice his head is down and he has angled his chest away from you. The client's body language is saying he's “closed.” He can no longer hear what you're saying, so you may as well stop talking.

     
  • Keeping Tabs on the Competition

    Upscale remodelers must not only keep pace with competitors but find ways to differentiate themselves.

     
  • Do You Need a Color Consultant?

    When it comes time to select paint colors on a project, upscale remodelers Cress Carter and Chris Withers do what they've been doing for years and what others in the industry have recently begun to offer: they bring in a color consultant to help clients choose the right hues for their homes.

     
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    Home Buyers Reveal What's In — and What's Not

    Real estate broker and author Mark Nash reveals what home buyers crave and what they will run from in 2006. His findings come from his dealings with clients who have homes at price points ranging from $300,000 to $2 million in the Chicago market, but he notes that many agents in his network from...

     
  • Human Resource Management

    The human resources hat gets passed around a lot at remodeling companies. But as companies grow, an ad hoc approach becomes less tenable. Dedicating a staff position to the job is an option, but it's one that remodelers rarely consider until their employee roster tops three or four dozen.

     
  • Setting the Stage

    In the early 1990s, New York City interior designer Chris Prince plunged into the world of finials and faucets when she joined (and later became a partner in) Simon's Hardware, a decades-old decorative hardware store that had just emerged from bankruptcy. Though renowned for its specialized...

     
  • The Art of the Upsell

    Truth, dreams, and trust go a long way in the minds of upscale remodeling clients. They also lend themselves to significant projects for remodelers who understand that the upsell — in fast-food parlance, “Would you like to supersize your order?” — isn't really about selling at all. It's about...

     
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    Bring It Home

    "Our tile contractor fired us,” Peggy Fisher says. “He said our work was too difficult.” That was what led Fisher Group, Annandale, Va., a design/build company, to find someone in-house for tile work.

     
  • Hire Slow, Fire Fast

    Riggs Construction didn't act quickly enough to terminate a difficult executive and so subjected its entire staff to his toxic attitude for five damaging years. By contrast, a criminal background check that is part of the meticulous hiring process at Rockland Inc. prevented the company from putting...

     
  • How to Handle OSHA Citations

    Nobody wants an accident to happen or unsafe conditions to exist on a jobsite, but these circumstances do occur and can result in citations being issued by the Occupational Safety and Health Administration (OSHA).

     
  • Marketing with a Green Message

    Whether it's to remember your best customers during the holiday season or to reward a client who has recommended friends and family to your business, there comes a time when you need to express appreciation with a gift. Why not select a gift that does double-duty by delighting your client while...

     
  • Handy Customer Service

    A remodeling company that takes care of its customers after the job is done is sure to get great referrals. That's why Classic Remodeling & Construction of Charleston, S.C., uses its handyman service to generate goodwill. The service is normally billed out at a rate of $80 to $100 per hour, but the...

     
  • Bonus Plans That Work: Production Staff

    Ed Lane had run a successful remodeling company for 20 years before he hammered out an effective bonus plan for his project managers. The breakthrough idea, suggested by his production manager and finessed over a period of months, was to focus on actual job costs, rewarding project managers for...

     

PROCESS

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    Fit to Print

    Upscale clients respond to sophisticated, high-quality printed marketing materials.

     
  • Security Strategies

    Take preventive measures to secure jobsites so materials and equipment stay safe.

     
  • IT: In-House or Outsource?

    Your designer may be a computer guru, but does that mean he or she should also be running your company's networks and data security infrastructure? Or answering the call when someone's monitor freezes? Or troubleshooting when the high-speed Internet connection goes on the blink?

     
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    Visual Aids

    An earthmover tips into a foundation hole … your super backs a truck into a homeowner's car … a subcontractor gouges a glass cooktop while installing a fan. Accidents happen, and when they do a strong case made by photographs will bolster your insurance claim.

     
  • E-Mail Marketing Comes of Age

    Long criticized for being Internet Luddites, remodelers have in recent years woken up to the necessity of a Web presence. And rather than sit back and wait for the hits, many upscale firms are using e-mail both to broaden and to refine their marketing reach.

     
  • Can't We All Just Get Along?

    Remodelers and architects are notoriously uneasy partners. Interior designers and decorators also often leave contractors leery. For most firms, though, third-party design partners remain a fact of business, and making those partnerships work is essential to completing jobs on time, on budget, and...

     
  • Nurturing the Talent Stable

    How do you find, mobilize, schedule, and compensate the specialized craftspeople who do such meticulous work?

     
  • Referral Reference

    Referral management is not just about data management,” says Terry Parker, marketing and event coordinator for HomeCraft, a Lenexa, Kan., design/build company that derives 90% of its business from referrals. “If we're not managing referrals properly, we're not managing our company properly.” Strong...

     
  • Cure for the Latecomer Blues

    A lax policy toward starting time is one of the main causes of late-running meetings.

     
  • We Have to Stop Meeting Like This

    Since long before PDAs and PowerPoint presentations became conference room staples, meetings have had a reputation for dragging on, wasting time, and allowing attendees to get away with bad behavior.

     
  • Price Gauging

    Sticker shock is universal, and clients each respond differently. It's up to you to manage expectations and present cost issues in a way that clients understand and feel comfortable with.

     
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    Guilded Age

    Construction defects … overshot deadlines … miserable owners shuffling into “finished” remodels with seven-page punch lists. For a group of master builders from the Boston area, the era of “bigger, faster, cheaper” must end.

     
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    The Whole Nine Yards

    Upscale remodels must be picture-perfect the day clients move back into their space. Anything sub-par —from landscaping to lighting — will downgrade client satisfaction and endanger the possibility of repeat business. “If an owner gets a bad landscape job, it's the last thing they remember about...

     

PRODUCTS

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    Product Trends: Looking Solid

     
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    New + Notable: Roofing, Ranges, Bath Fixtures, and more

     
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    Products: Lights Fantastic

    It's technical and artistic, tangible yet ethereal, all at the same time — it's lighting. It can affect mood, aid or hinder functionality, and even become a focal point. Here are a variety of options in decorative fixtures, ranging from modern and minimalist to fabulous and funky, sure to add...

     
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    Automation & Electronics: TVs, Faucets, Thermostats and more

    Advancements in technology are allowing myriad features in today's home to be automatically and electronically controlled, from audio systems and televisions to lighting and appliances, setting a new benchmark for convenience and comfort.

     
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    Product Trends: Fireplaces

    With the current lifestyle trend toward “cocooning,” fireplaces — alluring because they're a strong visual focal point — are a design feature in high demand. Makers have responded with increased variety, new features, and customization options.

     

New + Notable

PROFITS

  • Keeping Pace With Pricing

    Setting fees is relatively straightforward. Knowing how and when to raise them, however, can be a bit tricky. Costs such as labor, insurance, and equipment tend to rise steadily with occasional sudden spikes; materials are more volatile. If your fees don't account for that fluctuation, your profits...

     
  • Reinvesting Profits

    Small service-oriented businesses do it. Large product manufacturers do it. And upscale remodeling companies should be doing it, too. It's a strategy known as “reinvesting profits,” and it's something all growing companies should be thinking about — or risk stunting their own growth.

     
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    Professional Photographs Show

    The market is flooded with digital cameras and salespeople extolling the quality of computer-printed photos. So who needs a professional photographer to record their remodeling work? An expensive digital camera will do the trick, right? Wrong.

     
  • When the Check's Not in the Mail

    Larry Parrish has heard all the excuses for late payments —from “I've been out of town” to “I thought my wife took care of it.” Although most clients handle payments responsibly, too many times, the check isn't in the mail.

     
  • Bottled Air

    Two decades ago, no one thought people would pay a buck fifty for an element that flows freely across our planet, but today bottled water is a $10 billion industry. Now, it's air's turn.

     
  • Making Payroll Pays

    To call upscale remodeling a volatile business understates the case. With cash constantly flowing in and out, one missed draw can cause big problems.

     
  • Where Do You Go From Here?

    How do you pinpoint an appropriate growth target? It begins, experts say, with knowing both yourself and your company: Who are your ideal clients? What's an ideal project? Where in the region do you prefer to work?

     
  • The Cost of Quality Labor

    Throughout most of the nation, upscale remodelers are struggling with the ever-thinning pool of skilled labor. With fewer quality hands around, it's an employee's market.

     
  • Inside the Ballpark

    Kelvin Pierce of Commonwealth Home Remodelers in Vienna, Va., can give accurate ballpark estimates on design/build remodeling jobs in about 20 minutes. How accurate? “Although we tell clients [that we can estimate to within] 10% or 15% of the final selling price, we're usually within 5%,” he says.

     
  • Estimating Labor by Percentage of Revenue

    Most remodelers use historical job costs as part of their estimating process. Maryland-based Brenneman & Pagenstecher goes a step further, calculating labor costs as a percentage of a job's direct costs.

     
  • Checking Customers' Credit

    The credit check is one of the most sensitive aspects of the relationship between customer and remodeler. In fact, not all remodelers take this step. “It's not prevalent even with some of the more sophisticated contractors,” says D.S. Berenson, an attorney with Johanson Berenson LLP in McLean, Va...

     

READINGS

 
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