Table of Contents Fall 2005

FEATURES

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  Absolute Upscale

  When builders Devon Hartman and Bill Baldwin founded their company in 1978, the young duo had one overriding goal: to do jobs that were, according to Hartman, at the “absolute top end.”

   

• Sub Hunt

  High-end jobs mean costly materials and sophisticated designs, and finding and keeping “golden” subs is critical. The other end of the spectrum means job delays, warranty work, and strained customer relations. “A careless plumber can cause a lot of expensive destruction in very little time,” says...

   

• Right on Schedule

  Quinn's company could be the poster child for how a commitment to change and growth can keep a remodeling business healthy and profitable.

   

• A Jewel Box of Texture and Detail

  The empty-nester couple who own this house could have bought or built a large house in the suburbs beyond West Hartford, Conn., but they chose instead to buy a small house in an older neighborhood, within walking distance of shops, restaurants, and a farmer's market.

   

FINAL TOUCH

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  Easier Than It Seams

  Mark Lauzon started Stone Works in 1997 with not much more than an old pickup and a tile saw. Since then, the granite slab business has boomed, and he and his partner, Pete Snegireff, now have 10 employees. In an average month, the company installs 50 slabs and lays 1,500 to 3,000 square feet of...

   

INSIGHT

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  Real Customers

  Most businesses have a list of people who have bought something from them. As long as money exchanged hands, most companies would call these people customers.

   
• 

  From Manager to Leader

  Leaders must constantly find ways to break down barriers to success, overcome roadblocks, and make it easier for frontline managers to solve their own problems.

   
• 

  Taking It Up a Notch

  If you're reading this, it's because you serve the high-end remodeling market. That means your clients earn more than most, live in homes that are more valuable than most, and spend more than most to have them remodeled. That puts you in a pretty exclusive club of remodelers who occupy the top 10%...

   

INTERVIEW

Ten Minutes With...

• Christopher Hunsberger of Four Seasons Hotel

  Widely considered the world's leading provider of luxury accommodations, Four Seasons Hotels engender famous loyalty from clients and employees alike. The company has 65 properties in 29 countries, yet it manages to make every guest feel special, their needs anticipated and met, their money well...

   

PEOPLE

• Commission Control

  Here's how four high-end remodelers have solved the sales commission problem.

   

• Lifestyle Marketing

  Remodelers can keep the clients coming (and save marketing dollars) simply by refining the art of schmoozing. While that word may conjure images of golf course deals and chamber of commerce dinners, old-school deal-making isn't the only way to cultivate prospects. Instead, savvy remodelers are...

   

• What Defines a Key Employee?

  How an employer values an employee is reflected in the latter's salary, responsibilities, and authority. But what criteria should a company use to determine which employees get what compensation? And how can an employer compare the value of two employees with entirely different job descriptions?

   

PROCESS

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  Ready, Aim, Profits

  If you want to hit the bull's-eye, you don't want to use a shotgun,” says Alex Dean, president of The Alexander Group, a Kensington, Md.–based remodeling firm and a 32-year veteran in the high-end remodeling business. “You want to use a rifle with a high-powered scope to do the job.”

   

• Timing Is Everything

  Want your marketing message to be at the top of the heap when potential customers check their e-mail? Send it after midnight.

   
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  Learning From New Homes

  Just as homeowners who are thinking about remodeling often tour new model homes looking for ideas, remodelers who want to keep one step ahead of their clients can benefit from following new-home design trends.

   

PRODUCTS

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  Trends: Windows & Doors

  No matter the scope of the application, there is an ever-growing selection of unique windows and doors to fit your needs. Manufacturers are continuing to expand their lines to suit the tastes of even the most discriminating homeowner, including new options for materials, cladding colors, decorative...

   

KITCHEN + BATH

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  Sleek and Simple

  Now more than ever, the kitchen and the bath are two of the most important rooms in the home. The kitchen remains a central focus: a gathering place for families and a place to entertain guests. The commercial look of stainless steel continues its reign as a must-have for high-end consumers...

   

New + Notable

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  New + Notable: Stairs, Lighting, Wine Vault, and more

   

PROFITS

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  Fee (Not So) Simple

  For some remodeling clients, the concept of a volume discount extends to remodeling projects. They argue that there are efficiencies of scale or that expensive finishes don't increase a remodeler's risk proportionately. Faced with a design/build remodeling project estimated in the million-dollar...

   

• The ABCs of Escalation Clauses

  In the past two years, the costs of lumber, steel, and other building materials have risen substantially and quickly. So what should a contractor do when writing jobs today that may cost much more to build if prices jump unexpectedly tomorrow?

   

• Sliding Scale

  Most remodelers base their margins not merely on what is required to cover overhead and profit, but on what the market will bear. In a competitive market, they may need to cut margin to win the work. On the flip side, the busier they get, the more they can charge. Some remodelers also raise margins...

   

• Under Covered

  When it comes to insurance, remodelers have fewer options than ever before. Insurance companies that haven't withdrawn from the market have hiked their premiums across the board.

   

READINGS

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  Data Miner

  How terms used in real estate ads affect the purchase price.