Table of Contents April 2005

Features

• 

  The Selections Maze

  A remodeled kitchen or bath is usually a dream come true for your client. So you'd think they would eagerly look forward to product selection. After all, choosing tile, appliances, and faucets is supposed to be the fun part of remodeling. But most remodelers find that their clients are overwhelmed...

   
• 

  Show and Tell

  There's no doubt about it: Consumers love showrooms. Those who operate successful showrooms point to business generated by walk-in traffic, brand awareness created by manufacturer advertising that pre-sells your showroom product, and the convenience for clients of having all their product choices...

   

• Born to Sell

  In this traditionally male business, there are a small group of women who are owners or designers doing sales, or even doing straight sales. But in many cases they're outselling their male counterparts.

   

• Packing a Punch

  Back when he had 16 people working for him, David Merrick would “watch them make the same mistake again and again,” says the owner of Merrick Design & Build, Kensington, Md. He's happier and more successful running a “practice” with just four employees.

   

• Hidden Surprises

  Some fresh paint. Several new tiles. A few fixtures. All minor repairs. When Genevieve Duncan and Keith Snodgrass first thought about updating their war-era black and white master bath, they just wanted to make some small changes to bring it into the new century.

   

Reader Panel

• 

  Reader Panel: Material Options

  Making product selections can be a frustrating part of the reduction deadlines. Remodelers often use forms to stay up to date on modeling process — for both clients and contractors. It products. About 73% of the remodelers who answered this survey takes a lot of coordination to lead clients through...

   

Other Articles

• Born to Sell

  In this traditionally male business, there are a small group of women who are owners or designers doing sales, or even doing straight sales. But in many cases they're outselling their male counterparts.

   

• Packing a Punch

  Back when he had 16 people working for him, David Merrick would “watch them make the same mistake again and again,” says the owner of Merrick Design & Build, Kensington, Md. He's happier and more successful running a “practice” with just four employees.

   

• Hidden Surprises

  Some fresh paint. Several new tiles. A few fixtures. All minor repairs. When Genevieve Duncan and Keith Snodgrass first thought about updating their war-era black and white master bath, they just wanted to make some small changes to bring it into the new century.

   

View Point

• Figure This

   

• Local Forecast: Watch and Learn

  There are countless ways to keep your finger on the pulse of your local economy. And not all of them involve pie charts, bar graphs, and columns of numbers. Remodeler Michael Mc-Cutcheon simply pays attention to what's going on around him.

   
• 

  Weather Dampens RMI

  Unusually wet weather toward the end of the year hindered remodeling activity in the fourth quarter of 2004, according to the NAHB.

   

• Routine Maintenance

  A recent survey conducted by Owens Corning found that nearly 80% of homeowners indicated “some interest” in home maintenance or repair services.

   

• No Kids Allowed

  New labor laws announced in December went into effect in February, tightening the restrictions on individuals under the age of 18 working on or near roofs.

   

• On the Bubblette

  A recent study of the top 99 real estate markets found that one-fifth of the housing stock was overvalued by at least 20%.

   

• Local Leaders

  Marla Selko does her due diligence on remodelers: their licensing and insurance, their workmanship and expertise, their responsiveness to clients. She does her due diligence on homeowners: their project scope and budget, their expectations, location, and timeline. Then she plays matchmaker between...

   

• Satisfied Customer?

  Remodelers tend to define their companies by the quality of the products they install, the high level of craftsmanship their crews supply, or the reliability of their trade contractors. All of those characteristics are critically important to success in this business, but they are increasingly...

   

Commentary

Linda Case

• Plan for Profit

  The first quarter of 2005 is over. Can you answer these four questions that are crucial to your success and prosperity this year?

   

Mark Richardson

• Tunnel Vision

  Whenever I meet with remodelers, I like to ask them about the kinds of clients and types of projects they believe are right for their companies and the kinds of business opportunities they see. They describe very broad client characteristics, such as young vs. old, rich vs. middle class, or...

   

Walt Stoeppelwerth

• Technology as Necessity

  New technology affects companies of all sizes, although in different ways. For example, a small practitioner can probably get away with a Web site that is little more than an electronic business card, displaying a logo and providing basic contact information.

   

Guest Columnist

• 

  The Habitat Habit

  For about 30 years, I was a general contractor/remodeler who had worked through the ranks until I owned my own business. Then in December 2003 I got involved with Habitat for Humanity of Bucks County (Pennsylvania) through my local NARI chapter.

   

Your Business

Ways + Means

• Conversation Peace

  One of the toughest parts of managing for many people happens when they have to talk to an employee, sub, or client about an unpleasant topic —whether it's underperformance, a disagreement about a bill, or a misunderstanding about a project.

   

• Be On the Same Page

  The aptly named House About It, by Sheri Koones, tells it all.

   

• All Systems First

  How big should my business be before I put systems in place?

   

• Finish With a Franklin

  Those lingering little projects that finish a job — and really put a good face on your company — are no longer a bother for David Merrick, owner of Merrick Design & Build, in Kensington, Md.

   

• Advise and Contract

  Sun Light & Power Company in Berkeley had a provision in its contract that ownership of materials didn't transfer to the homeowners until they paid for it. This helped the company preserve its right to repossession if equipment wasn't paid for.

   

Bottom Line

• The Right End

  Companies with a C corporation organization should consider using a fiscal year other than the calendar year for accounting and tax returns.

   

• Show Them the Money

  As a financial instructor at the Certified Contractor's Network's conferences, remodeler Tom Capizzi has worked with more than 30 companies to improve their bottom line.

   

Sales + Marketing

• Sales School 101: The Up-Front Contract

   

• An Earful of Luxury

  Every remodeler hopes that satisfied clients will recommend the company's services to friends and relatives.

   

• Trim? Check. Walls? Check. Satisfied Client? Check…

  An often-overlooked marketing tool is great service — before, during, and after the remodeling process.

   

• Mass Customization

  Lacking the time, budget, or inclination to develop your own marketing materials?

   

Field Notes

• Passing the Baton

  If you use the lead carpenter system, you need to share information with your lead carpenters. Unfortunately, the salesperson or owner doesn't usually give the lead enough time to review project information before actual construction begins.

   

• In the House

  Barbara Rose set up an in-house training program at S.N. Peck, Builders for several reasons. First, the company has complex, high-end projects and works with demanding architects and customers.

   

By Design

• Don't Dodge the Design Fee

  Mark Richardson of Case Design/Remodeling says Case has, over a 30-year period, evolved a process for charging for design — preliminary design, for which the client is charged .5% to 2%; detailed planning, which is 6% to 8%; and construction. But Case didn't start out that way.

   
• 

  When More Is More

  Many empty-nesters want to enjoy their homes and modify them so that they work for them as they get older. In this case, the Chicago-area homeowners wanted more first-floor space, including a master suite and family room.

   

Tech@Work

• Does a Smartphone Make the Grade?

  Thinking about getting a “SmartPhone” and wondering if it's worth the extra money?

   

• Easy Estimating

  After 35 years in the remodeling business, Terry Quinn was still using a yellow pad and pen to create homemade estimating spreadsheets.

   

Good Form

• 

  Management by Objective

  Nearly a decade ago, remodeler Dennis Allen was talking with one of his regular clients — a retired vice president at Gillette — about setting up an advisory board for his company.

   

Big50

Close Up

• 

  Profile: Stephen Hann

  In bad movies, truth serums are used to get people to spill their secrets, reveal where the loot is, or confess their true love. In Houston, the truth serum favored by Stephen Hann is neither sinister nor liquid but a professional services agreement (PSA) that gets prospects to either quickly...

   

Second Look

• 

  Second Look: James A. Rice

  United we stand, divided we fall is not a concept that fits Jim Rice's Forest Construction, Camarillo, Calif. Since winning a Big 50 award in 1987, Forest spawned a new company each time the business grew. The companies are successful, together doing nearly $20 million in business last year.

   

Solutions

• Perfect Fit: What type of information do you collect and evaluate to decide if a job is right for you?

  If the customer is looking for several bids, it indicates they are searching for low numbers, not quality. We are quality — not necessarily low numbers. So it's not a good fit.

   

Other Articles

• Face Off: Do you let clients work on your projects?

  Do you let clients work on your projects?

   

K+B

Spec Book

• 

  KBIS Preview

  It's a safe bet that at this year's Kitchen and Bath Industry Show in Las Vegas manufacturers will dazzle us. Here's a sampling of what's in store.

   

Replacement

Roofing

• Impact-Resistant Roofing

  Roofing contractors express skepticism, and some shingle makers seem cautious. Still, the insurance industry has charged forward promoting impact-resistant (IR) shingles to stave off hail damage.

   

Siding

• Phil Rea: In Recovery

  What should I do if I'm in a sales slump?

   
• 

  Tooling Up for Fiber Cement

  Few dispute the superior performance of fiber-cement siding. But if the crew doesn't have the right tools, you'll not only hear some grumbling but you will also be paying slightly higher labor costs. Here's a rundown on the essentials needed to efficiently cut and install this material.

   

Products

Trends

• 

  Clamoring for Clad

  Increased focus on unique profiles and wood species and an expanding selection of hardware and finishes are making aluminum- and vinyl-clad windows a perennially popular choice with pros and homeowners.

   
• 

  Master Plasters

  Tuscan, Southwestern, or just eclectic, the new faux finishes for walls are a lot more subtle than the ragging, dragging, and bagging looks of recent years. Plaster finishes are cropping up in warm, earthy colors and soft expressions.

   
• 

  Cheers for Veneers

  Brick and stone veneer products are looking better than ever these days. Advances in design and technology have made it easy to create gorgeous fireplace surrounds, exterior accents, and more.

   

Reader's Choice

• 

  One-Sided

  David Kramer of 21st Century Building Company in West Bloomfield, Mich., specializes in James Hardie siding because he has had nothing but success with it. Even though it can be more expensive than other siding options, Kramer says he has little trouble persuading clients that it's the best choice.

   
• 

  Tools for Success

  The astounding plethora of business books on the market today makes it hard to choose one that's right for remodelers. But Mark Scott of Mark IV Builders in Bethesda, Md., has found one he loves.

   

In Focus

• 

  Exterior Trim: Trimboard, Mouldings, Railings, and more

   
• 

  Roofing: Vents, Shingles, Paneling, and more

   
• 

  Home Automation: Controls, Wiring, Intercoms, and more

  The Z-Wave Alliance is not a federation of superheros but a consortium of leaders in the home technology industry who want to set Z-Wave technology as the standard for wireless home control products. Developed by Zensys, Z-Wave is a two-way, wireless mesh network communications technology that...

   

Other Articles

• Moments of Truth

  Remodelers are pretty good at properly sequencing a project. We know which products need long lead times and which trade contractors can't work until others have finished. Most of us have learned from experience where all the rough spots are, and we're always ready to go to Plan B.