Table of Contents April 2008

VIEW POINT

FIRST WORD

• UrCoSux.com

  In early 2002, Ken and Latrice Innes of Redding, Calif., signed a contract with Pacesetter Corp. for installation of replacement windows, a storm door, a rear sliding door, and a garage door with opener on their house. The company's contract guaranteed that the work would be completed within 20 days.

   

News + Notes

• 

  Cities Mandate Paid Sick Leave

  Legislation passed last month in the District of Columbia mandating paid leave for employees has some business owners up in arms, but their colleagues in California say it's nothing to get sick over.

   

MARKET WATCH

• Local Forecast: Switching Gears

  Until recently, roughly 90% of The Lykos Group's work was done on condominiums, according to company president Tom Lykos. That changed, he says, when the condo market — like new homes — started its sharp decline. So he began focusing on marketing to the single-family segment.

   
• 

  RMI: Drop in Activity, Expectations

  Remodeling activity fell sharply in the fourth quarter of 2007, according to the National Association of Home Builders (NAHB), and the outlook for the first quarter of 2008 is worse.

   

COMMENTARY

LINDA CASE

• Not Winging It

  What do efficient remodeling companies have in common with paper airplanes and Toyota's manufacturing process? I found out during a recent trip to Iowa, in a class about continuous improvement held at the headquarters of Pella Corporation.

   

MARK RICHARDSON

• False Positives

  Every industry has its own pet beliefs about what constitutes a sign of good business health. Unfortunately, not all of these commonsense diagnostics are reliable. Here are some misconceptions that I encounter most often in the remodeling industry.

   

SHAWN MCCADDEN

• Undo the Freak

  Most remodelers are control freaks. As a recovering remodeler, I hope I can say that without getting into trouble. When money gets tight, these remodelers tend to intensify their grip. Their employees feel that squeeze, and it doesn't feel good.

   

YOUR BUSINESS

Ways + Means

• People + Skills: Bonuses

  Seth Godin, author of Permission Marketing: Turning Strangers Into Friends, and Friends Into Customers, believes that monetary bonuses are demotivators.

   

• ByLaw: Exiting with an ESOP

  As hard as it is to sell a construction business outright, it is even more difficult to sell in stages, allowing for a gradual withdrawal by the owner.

   

• Planning Ahead

  After 30 years in business, Jayson Miller, co-owner with his father Tom of design/build firm TN Miller, in Grapeview, Wash., is looking into a 401(k) retirement program for his 11 employees.

   
• 

  Taking Time

  A prospect calls you and says, “I'm interested in remodeling my kitchen. When can we meet?” You suggest Tuesday at 10 a.m. They say, “I can't, I work.”

   

BOTTOM LINE

• Production Placement

  Do you charge for your production manager's time as part of overhead, or as a direct cost to specific jobs?

   

Sales & Marketing

• Get Real

  Even the most fastidious and image-conscious remodeler is no match for construction dust, noise, and other unpleasantries when clients are expecting a muss-free makeover.

   

• Save Money (Your Own)

  It's tempting, when the phone isn't ringing, to blanket neighborhoods with dollars-off promotions, but discounts aren't always good for business.

   
• 

  Write on Time

  Many remodelers have good intentions but poor follow-through in sending friendly notes to clients and prospects. Remodeler Mark Clark has barely said goodbye to someone before that person's card is signed, sealed, and being delivered.

   

FIELD NOTES

• Controlling Labor Costs

  With the economic slowdown, jobs are smaller, more difficult to get, and sometimes at decreased margins. Material costs are rising and about the only way to make a profit is to control or reduce labor costs. But how?

   
• 

  An Eye on Security

  Scrap metal and other construction materials are fetching a high price on the market (especially the black market), underscoring the need for remodelers to keep thieves off jobsites after hours.

   

• Stocker Shock

  A $3 tube of caulk or a roll of drywall tape can cost you $50 in time alone if you have to travel to the store to get it.

   

BY DESIGN

• 

  Sketchpad: Squeezing in a Lav

  When remodelling a house it's almost always possible to fit in a new half bath — meaning a toilet and a sink. The real variable is the degree of convenience one can achieve when locating the new facilities in the space allowed.

   

Tech@Work

• Cell Phone Enhancers

  One high-tech tool practically every lead carpenter, salesperson, and project manager is an expert at using is a cell phone. The following productivity software and hardware will put any modern Smartphone to better use as a true project management tool:

   
• 

  Get Analytical With VisiStat

  As more consumers turn to the Web for information about remodelers in their area, the visibility of a company's Web site has become increasingly important.

   

GOOD FORM

• Over and Out

  In early 2007, Renewal Construction began its “Guaranteed Renovation” program, which promises clients that their project will be “substantially complete” by a specified target date, barring certain unforeseen disasters such as a hurricane or tornado.

   

FEATURES

• 

  Replicating the Rainmaker

  One of the most difficult parts of moving a remodeling business forward is stepping back from being its primary salesperson. From a desire to grow the business to the wish to put a succession plan in motion, any number of reasons can compel remodeling business owners to train others to step into their long-held sales positions. But recognizing the need to step back is only part of the challenge. More difficult still is how to go about it.

   
• 

  Fair Future

  Succession planning, a rarity in the industry just a decade or two ago, has become a serious priority for many remodelers big and small.

   
• 

  Sell It Like It Is

  Part one in a three-part series on engineering the customer experience.

   

Reader Panel

• 

  Great Expectations

  Most remodelers will agree that the success of a remodeling project depends heavily on setting realistic client expectations early in the process. This month’s Reader Panel respondents take an array of measures to ensure that those expectations are clearly defined and are, ultimately, met.

   

SPECIAL SECTION

Kitchen & Bath

• Kitchen Lighting: Bright Ideas

  Eleven lighting-design tips to make an open-plan kitchen both functional and elegant.

   
• 

  K+B Trends

  Kitchen and bathroom trends from this month's special supplement.

   
• 

  Bath Details

  The bathroom has undergone an overhaul in recent years. No longer just a water closet with a sink and tub, it has become a spa and sanctuary at every price point. Skylights and glass block for increased natural light, the use of varied textures and materials and sturdy furnishings, organic lines, fireplaces, and clutter-free counters mark the bath trends for the next few years.

   
• 

  Kitchen Details

  Clever, beautiful details add a personal touch to kitchens and allow homeowners to create a space that exactly fits their needs.

   

BIG50

CLOSE UP

• 

  Close Up:Chancey Walker III and Chris Ettel

  From the day it was founded in 1988, VB Contractors (Big50 2006) was a 50-50 partnership between Chancey Walker III (far right) and his son-in-law, Chris Ettel (second from right) — until a couple of years ago, when they saw the opportunity to bring on two new owners.

   

SECOND LOOK

• 

  SecondLook: Gary and Diane Grobeck

  Omaha seems like a really small town when Gary Grobeck, as a building inspector for Nebraska's capital city, finds himself inspecting work done on houses that he had bid on as owner of Grobeck Construction.

   

KITCHEN + BATH

Management

• 

  Kitchen Inspiration

  Kitchens.com is an online publication that provides ideas and information for homeowners interested in remodeling.

   
• 

  Making it Real

  The latest release of Autokitchen, from Microcad Software, features improved photorealistic rendering abilities that allow designers to take clients on a lifelike virtual walkthrough of their kitchen.

   

SPEC BOOK

• 

  KBIS 2008 Products and Trends

  As seen at the Kitchen & Bath Industry Show in Chicago: two new fittings that can be adjusted by users.

   
• 

  KBIS Preview

  Here is a preview of products featured at the Kitchen and Bath Industry Show.

   

PRODUCTS

TRENDS

• 

  Trends: Good Hands

  When a job requires working in tight spaces around existing walls, a hand nailer can become a remodeler's best friend. “I've been personally involved with remodeling a house, and you don't always have the convenience of working in wide open spaces,” says Drew Sundholm, product manager for Grip-Rite.

   
• 

  Trends: Mirror, Mirror on the Wall

  Ever try removing a boring builder-grade plate-glass mirror? “Often, these mirrors are glued to the wall and are a horrible, dangerous mess to take down,” says Tim Bitterman, senior product/ brand manager for Inspirations by Moen. Now remodelers can offer a stylish solution that eliminates the mess and the drabness with easy-to-install mirror frames.

   

IN FOCUS

• 

  In Focus: Home-comfort Control Systems, a Flood Pump and more

  In2 Networks. HAI. Wayne-Dalton. Millennium International Development Corp.

   
• 

  In Focus: Impact-Resistant, Vinyl and One-Piece Windows

  Windows from Simonton, RLC Technologies, YKK AP., and Marvin.

   
• 

  In Focus: Exterior Trim

  With the workability of wood and the benefits of durability and resistance to rot and pests, PVC has become popular for exterior millwork. Manufacturers continue to expand their lines with a range of molding profiles, as well as boards, planks, and sheets in thicknesses that make creating your own routed designs easy. Low maintenance and long life mean these trim pieces will highlight your exterior handiwork for years to come.

   

FIRST LOOK

• 

  First Look: Masonry Hooks, Ceiling Fans, Smoke Alarms and more

  The newest products for the remodeling market.

   

LAST WORD

Benchmark

• Nothing But Net

  My favorite definition for “net” comes from Dictionary.com.