Energy Tax Credits

This is the easiest to understand explination of all the tax credits I have seen. Click on the picture below for the full size version. Then roll over this interactive poster to see the requirements and deadlines for remodeling-related energy improvements and equipment. The information comes from Remodeling magazine’s coverage of the stimulus package.

Market Your Business with Pumpkins

By Michael Stone, from the Mark up and Profit Blog

If you ever read the Peanuts comic strip, you’ll remember Charlie Brown and the Great Pumpkin. The Great Pumpkin appears on Halloween and does something (I can’t remember what).

Here is my take on pumpkins and your business. Many of us have small farms nearby selling pumpkins. How about offering the owner a lump sum for 100 – 150 – 200 pumpkins? You figure out what it’s worth and make an offer.

Then send a note to all former and future potential customers telling them they can take their kids or grandkids to the farm, using the coupon you are giving them, and get a free pumpkin. Maybe schedule it for one or two specific days only so you can be there to personally greet each family. In a few special situations, like military families where dad or mom are away serving our country, make sure everyone in the family gets a pumpkin even if you have to buy a few extra. (Don’t do that for business purposes – do it because it’s the right thing to do.)

When you send the note, thank each family for their past business and extend the assurance you will do a great job in the future. Ask if they know anyone who wants to do work on their home or building. Referrals are great things. One new job and you have paid for this whole program, and it’s fun as well.

Might be worth a try. Okay, it’s getting close to Halloween and you’ll have to really move to get it done before the holiday, but is there any special event in your area for Thanksgiving or Christmas? Maybe arrange for a discount on tickets to a show, or a tree lighting event, or for Christmas trees, or holiday candy somewhere, or a free ornament at a local bazaar, or . . . . get the idea?

October PRO Monthly Meeting

Thank you to Rejuvenation for sponsoring our October monthly meeting.

NAHB STAR

What is nahb STAR?

It is a singing contest, for NAHB Members and immediate family members only, to determine who will sing the National Anthem at the Grand Opening Ceremonies at the 2010 International Builders’ Show® in Las Vegas, January 19, 2010.

How Do I Enter?

FIRST, carefully read the official Rules and Regulations of the nahb STAR contest to make sure you are eligible.

SECOND, make your video! This must be a solo a cappella performance of the Star Spangled Banner.

THIRD, by November 2nd you must submit:

Your signed nahb STAR Entry Form/Contest Release form via fax to 202-266-8193

Your nahb STAR video via email to nahbstar2010@gmail.com

Further instructions on submitting each are listed on the bottom of page two of the Entry Form/Release.

Be sure to check out the nahb STAR important schedule to see what happens after the first round of voting!

That’s it! When voting begins November 16th, you’ll want to be sure and let all your friends know to visit www.BuildersShow.com to vote for their favorite nahb STAR!

Who Do I Contact With Questions?

Please send any questions to nahbstar2010@gmail.com

What’s the New Normal?

By Judy Miller from www.remodeling.hw.net

Last week I asked 12 successful remodelers to define “the new normal” – what did they expect the economy to look like over the next 3 years. Here are some of the more salient comments:

• Sustainability – Both from the perspective of the company as well as the buildings. We want to build projects that last, that protect the environment. We want to build our companies in the same fashion.
• Smaller confines – We’ll work in smaller areas, see fewer large projects. No one will build McMansions over the next 3 years – at least no one in our target market.
• Smaller job size – Not only will we work in smaller areas, the job sizes will be tightly controlled.
• Diversification across job scopes – We’ll do many more different types of jobs than we’ve done in the past. We won’t be able to rely on just ”whole house renovations.”
• Greater education on value – Clients must be educated to understand why we charge what we do. The value in hiring our company has to become crystal clear, both for the clients as well as our employees.
• Flat consumer confidence – Until and unless the economy shows clear and strong signs of strength, consumer confidence will remain flat.
• Short attention span – Consumers are less patient, they come to us with an idea in their minds that they want to see built sooner rather than later.
• Generational differences –Younger clients want instant gratification. They’re not as interested in building a long-term relationship with us; loyalty is not a prime consideration for them.
• Increase in “production oriented” remodeling – Concepts such as ”1-week bath” and ”1-month kitchen” require standardized systems more typical of production builders rather than the customized remodeling that we’re used to doing.
• Energy efficiency – This will be a slow sell, but will build in importance over the next 3 to 5 years.
• Change in buying patterns – Greater reliance on social networking; online pricing will change the sales process.
• Activating un-used spaces instead of adding on – Room configurations will change and un-used or under-used spaces will be adapted to better use.

One respondent said “the American buying public has a very short attention span. Once we’ve relaxed into the ‘new normal,’ things will go back to where they were. Everybody wants luxury.” I’m sad to say it sounds like he might be right: I read recently that given $10,000 to spend, no strings attached, 62% of American consumers would choose to upgrade their countertops rather than increase their energy efficiency – even as winter approaches.

That’s not what I’m betting on though.  I think the new normal looks like this:

• Less access to credit means fewer high-end jobs and less money spent on unnecessary upgrades.
• Fewer clients (and less money) in the high-end target market mean smaller market share in dollars.
• Therefore, many remodelers who relied on that target demographic will have to find other ways to meet their targeted sales volume.
• Therefore, smaller job size, greater job scope diversity, more emphasis on necessities rather than luxuries.
• More home-owner involvement in some parts of the project, such as painting.

In sum, I see a sea change coming that will appear as a tsunami to those who aren’t prepared. Now is a great time to move to higher ground – however you define that within your company – and continue to sharpen your saw by ensuring that the following systems produce predictable, desired results:

• Marketing throws off good leads in your target market, even after re-defining that market;
• Sales effectively sells those leads at a pre-planned gross margin;
  Production profitably produces on-time and on-budget – no slippage;
• Administration maintains smooth and timely communication throughout various departments;
• Finance protects cash flow, produces complete and accurate reports in timely fashion and projects future results well.
• Leadership and ownership equally value customer and employee satisfaction – holding the team accountable to agreed-upon goals and maintaining clear vision of where the company is heading.

Last, but certainly not least, one respondent emphasized that everyone, owners and employees alike, want to be involved in something bigger than themselves – they want to build a cathedral, not just lay stone, hang trusses, install cabinets, or process accounts payable.

Build a vision for the ”new normal” for your company that moves the company forward, meets a real need in your community, and provides a sense of great accomplishment – then the new normal will be just right for you!

Home Improvement Shows – Make Them Work

From The Markup and Profit Blog

I have talked with contractors across this country left to right, top to bottom. Those that do home shows right always get good leads. Those that don’t claim it is a waste of money.

Doing it right means having an open booth so folks can walk right up and ask questions. It means a big screen monitor showing before and after pictures of your completed jobs. It means candy for the kids and maybe mom and dad. It means not sitting down or eating in the booth. You have to always be available and approachable. Do I need to say you should never use your cell phone in your booth? And we noticed yesterday that at least one in every four booths was empty. I know it was Sunday afternoon, a few hours before “quitting time”, but people were still buying tickets for the show and still looking for help. If you’re going to spend your money on a booth, always have someone there to talk to.

We have an outline of how to plan and work a show booth that we give to our coaching clients. Those that use it get at least one lead and hour and often more than that. Something to consider.

October New Members of PRO

Welcome new members of PRO:

• Pangaea, Pangaea Interior Design