Table of Contents July 2002

VIEW POINT

FIRST WORD

• 

  Guilt and Associations

  This spring, I attended board meetings for both the NAHB Remodelors Council and the National Association of the Remodeling Industry (NARI). Working in a vacuum holds you -- and your business -- back because it denies you the benefit of the collective experience of the industry.

   

News + Notes

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  U.S. Imposes Tariffs on Canadian Softwood

  The U.S. government issued duties on Canadian softwood imports averaging 29% in March, charging that our neighbor to the north subsidizes its industry to undercut American lumber's price.

   

• Remodelors Council Unveils CAPS

  Fifty remodelers at the Seniors Housing Symposium in Orlando, Fla., became the first to earn the CAPS -- Certified Aging-in-Place Specialist -- designation from the NAHB Remodelors Council.

   

• Timber Giant Reduces Old-Growth Harvesting

  Idaho-based timber firm Boise (formerly Boise Cascade) has announced to its employees and customers that it will cease harvesting trees over 200 years old in large, untouched wilderness areas, the New York Times reported.

   
• 

  The Home Depot Expanding Installed Sales

  The Home Depot has partnered with home service franchiser ServiceMaster in a pilot program the retail giant hopes will strengthen its position in the installed sales market.

   

MARKET WATCH

• Tepid Recovery

  More evidence of a less than vigorous recovery for the remainder of this year is apparent in the recent performance of The Conference Board's Index of Economic Indicators, which fell in April after being flat in February and March.

   

COMMENTARY

LINDA CASE

• 

  The True Measures of Success

  You can take the following quiz in approximately 10 seconds. If you answer yes to the three questions, you may not need to read any further. If any of your answers are no, you should keep going.

   

WALT STOEPPELWERTH

• 

  Back to Basics

  This month I want to talk about a couple of essential remodeling functions. It's important to make the final payment as small as possible to minimize your potential loss with a difficult-to-impossible customer who is reluctant to pay.

   

GUEST COLUMNIST

• 

  Going Commercial

  In 1988 the New England economy started its free fall. Necessity bred invention. We took on any kind of work, including our first commercial jobs. We broke into commercial with small projects, like $20,000 office remodels for clients we already knew.

   

YOUR BUSINESS

Ways + Means

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  Give Your Business an Exam

  Do you have the same understanding of the health and fitness of your remodeling business? Make a chart and rate your company from a low of one to a high of 10 on these 10 criteria. That'll give you a company fitness report.

   

• Window of Opportunity

  Jason Larson, owner of Lars Construction, a remodeling firm in San Diego, used to get calls from people wanting to know if his company installed windows. A full 95% of the windows Jacor installs are vinyl replacements, and Jacor will install a single window just to get its job signs in new neighborhoods.

   

• On Board

  Allan Lutes knows the basic fact about teams: "If it's a team," says Lutes, owner of Alpha Contracting in Ann Arbor, Mich., "you've got to have more than one person on it."

   

BOTTOM LINE

• Tax Tips: Write Off the Kids

  Paying your children to help out around the office is a good way to get them involved in your business.

   

Sales & Marketing

• Track Those Leads

  Lead tracking is a basic component to any successful marketing effort, but studies show from 40% to 79% of leads never reach a salesperson or are allowed to languish. Through lead tracking, you collect and monitor information systematically.

   

• Watch the Video

  The consultant typically finds from videotaping that remodelers spend too much time talking about themselves, which means "they spend too little time talking about the client, what quality of life they're looking for, their lifestyle," he says.

   

• Intern-al Analysis

  Seeking to more vigorously market his company's "indefinite guarantee," John Frazier hired a construction management intern to survey past clients about his remodeling company's workmanship.

   

• Kid Connection

  Ray and Ron Melani, co-presidents of the $12 million-a-year Melani Bros. of Yorktown, Va., make it clear on their business cards that it's not just business they hold dear.

   

• Web Site Trends Help Tweak Marketing

  Many remodelers don't realize it, but their Web site hosting company typically can provide up to 120 statistics on each visitor.

   

FIELD NOTES

• Remodeling Carpenter Certification

  About 28 students in Washington, D.C., and Minneapolis recently participated in pilot programs for NARI's Certified Remodeling Carpenter. Director of education Dan Taddei of Chicago-based NARI says if they pass the test and successfully finish their jobsite training, they will be certified.

   

• Minutes Men

  Mike Cook, production manager of Matt Plaskoff Construction, Tarzana, Calif., knows that misunderstandings can ruin the relationship his company has worked so hard to create with his high-end clients. To avoid this, Plaskoff project managers provide their clients with written, detailed minutes from each weekly meeting.

   

• Working with Subs

  Most remodelers need subcontractors to remodel and build. Here are a few tips about creating mutually beneficial relationships with subs.

   

BY DESIGN

• Drawing Board: Sleep Tight

  When Brad Cruickshank, Cruickshank Inc., designed a large addition for this Dutch colonial in Atlanta, the new space was to include a family room, office, guest bedroom, and garage.

   

Tech@Work

• Microsoft Alternatives

  Hate plopping down $500 or more every time you need another copy of Microsoft Office? --Joe Stoddard is a technology consultant to the construction industry, stoddard@cbczine.com.

   

• Leaping into Wireless Networking

  NPDTechworld of Reston, Va., says 802.11b technology sales have exploded, from $5.3 million in 2000 to $74.8 million last year.

   

FEATURES

• Design as a Profit Center

  Your design department can stand on its own and earn a healthy margin. The key is to find talented design staff and capture all your costs.

   

• Little Things Mean A Lot

  The overhead structure of Brady's full-service design/build firm positions him perfectly to handle jobs in the $75,000 to $200,000 range but leaves projects of this size outside of his core competency. For this reason, Brady only accepts small jobs, which he defines as $10,000 and under, from past clients and solid referrals.

   

Before & After

• 

  Before+ After: Silk Purse

  How do you convert a power plant into an office building?

   
• 

  Staying On Top of Things

  About half of the projects undertaken by Len Scannapieco's company, Estate Homes, are commercial.

   

Reader Panel

• What's Design/Build Remodeling?

  Our survey reveals that there are almost as many definitions for design/build as there are remodelers.

   

BIG50

CLOSE UP

• Profile: Rick Bartelt and Rick Filo

  When Rick Bartelt and Rick Filo, owners of Bartelt/Filo Design Build Remodel in Milwaukee, were named Big 50 in 1998, the company had fewer than 15 employees and was generating about $2.5 million annually.

   

SECOND LOOK

• Second Look: Shirley Landels, CR

  Named Big 50 in 1992, Shirley Landels lost her husband and business partner of 14 years, Cleon, less than a year later."Landels' husband left her a gift: He told her the best way to learn the trade was through associations. Because she relies on subs, Landels warns clients that all sorts of people will work in their homes.

   

SOLUTIONS

• Q+A: Under Contract

  With the advent of computer technology and automated estimates, we can put in all the specifics in microscopic detail, without having to spend money to do it.

   

FACE OFF

• Face Off: Should an owner continue to work in the field?

  I worked a 40-hour week in the field and spent another 15 hours on paperwork, returning phone calls, and meeting with clients. But I'm still managing projects, training our project manager, and maintaining quality control.

   

Live + Learn

• Rising Star

  The Manitowoc, Wis., market was hungry for a professional, full-service remodeling firm in 1999 when Brian Johnson, then just 24 years old, became the "director of corporate development" for his high-school friend's light construction firm (then called S & H Construction).

   
• 

  Train to Gain

  Training via satellite has boosted productivity at the RV service center to 80%.

   

KITCHEN + BATH

DESIGN CLINIC

• Built-In Look

  Alon Toker says most manufacturers offer trim kits to give microwaves a built-in look. In Toker's experience, a 1/16-inch clearance is adequate because the appliances generate very little heat.

   
• 

  Micro Fit: Positioning the Microwave

  Microwaves are the most neglected and overlooked appliance in the kitchen," says Alon Toker, president of Mega Builders in Van Nuys, Calif. He says his clients think it's fine to have a remodeled kitchen with a microwave on the counter. Alon Toker prefers to build small microwaves into a cabinet, leaving a niche above the unit for a television or for cookbooks.

   

Management

• 

  Franchise Forward

  The Kitchen Tune-Up franchise offers services ranging from restoring and repairing existing finishes to refacing cabinets and installing new cabinetry.

   

• The Price is Right

  During his 21 years in business, Vincent Castiallo, president of Royal Kitchen Corp. and Total Success Corp., New City, N.Y., developed a great system for accurate kitchen and bath project estimating. The software costs $499.99 and is available through Total Success Corp. at (845) 638-4575.

   
• 

  Top Shelf

  By Nina Patel. The counter fits the European styling and proportions of the narrow kitchen. Kitchen designer Keith Hudson's European clients wanted a kitchen that reminded them of home.

   

SPEC BOOK

• 

  New Cabinetry Styles Decked Out in New Finishes and Glazes

  Maple, cherry, and other woods accented with glazing and distressing are adding a one-of-a-kind touch to rooms, vaulting familiar styles to new levels. Vienna Cherry hardwood doors stained deep burgundy with tall standing cabinets on either side of the sink.

   

REPLACEMENT

DECKS

• 

  Will Consumers Pay More For Wood?

  The EPA has found, citing numerous published studies, that over time the arsenic component of CCA, an insecticide, leaches into soils at a rate determined by climate, acidity of rain and soil, age of the product, and quantity of CCA used in treatment.

   

ROOFING

• 

  Roofing: Upsells and Add-Ons

  For John Miller, co-owner of Waldenwood, Shorewood, Minn., the first upsell when it comes to roofing is a new roof for the whole house when he's putting on an addition."If clients want asphalt, Robb suggests architectural asphalt, a product two to three times the thickness of ordinary shingles -- and more expensive.

   

• Two to Tango

  Q: When only one party is present, should I still try to close the sale? --Phil Rea is president of Phil Rea and Associates, a firm offering sales consulting, motivational speaking, and a monthly newsletter.

   

PRODUCTS

TRENDS

• Honor Roll

  On April 11 the National Building Museum honored DuPont with the 2002 Honor Award for its contributions to the design and building industries. The award coincides with DuPont's 200th anniversary.

   

• In Sink

  Ideal for homeowners with loads of dishes or those graced with small kitchens, the new Briva unit from KitchenAid combines a sink and dishwasher into one unit, saving space and adding versatility. The Briva is available on a limited basis this summer and will be rolled out fully next year.

   

• Lessening the Impact

  As building codes in coastal areas target windows, manufacturers beef up products with impact-resistant glass and structures.The hurricane, which trampled the Bahamas, southern Florida, and south-central Louisiana in August 1992 caused an estimated $25 billion in damages -- the most expensive natural disaster in U.S. history according to the National Oceanic and Atmospheric Administration (NOAA). Since Andrew, Florida and other coastal regions have continued to beef up building codes to withstand the brunt of flying debris and air pressure.While the strictest regulations have been and continue to be in place in Miami-Dade County for some time, on March 1, the entire Florida Building Code enacted more stringent requirements for builders, requiring homes to withstand winds from 110 to 150 mph, depending on the county, according to PGT Industries.

   

Reader's Choice

• Reader's Choice

  Remodeler: Laura Ferrell Company: Woodenwings Builders, Palo Alto, Calif. Product: Fireclay Tile, www.fireclaytile.com.

   

ON THE JOB

• Working With a Net

  Today's fall protection and staging systems create a safer workplace for the remodeler on the job. Here are a few systems that can help prevent catastrophic mishaps on your jobs.

   

IN FOCUS

• Power Backup Systems

  The company's line of backup power systems offers seamless transfer to 120/240 VAC that is converted from batteries. The units will operate small to medium electrical equipment and appliances for outages from six to 12 hours.

   

• Wall and Ceiling Finishes

  A roundup of the latest wall and ceiling finish products. Ceiling panels, wall tiles and decorating kits....just to name a few.

   

• Insulated Vinyl Siding: Enhanced Look, Durability

  Vinyl siding already offers homeowners a low-maintenance product with good looks, an array of color selections, and rugged nail hems.

   

LAST WORD

Benchmark

• May I Take Your Change Order?

  Try as we might to eliminate them, change orders are part of the business of remodeling. Even a change with no cost attached (such as a tile color change) should be recorded to prevent misunderstandings later.