Chinese-Made Drywall is Causing Corrosion

Have you read about the drywall manufactured in China that is corroding pipes, vents, and wiring hidden behind walls in Southwest Florida homes? Click here to read a recent article.

Lennar Homes, the builder in question, commissioned a study which found that the drywall is indeed causing the corrosion but claims that there is no risk to the health of the homes' occupants.

I'm sure that we have not heard the last of this. I wonder how far reaching this problem could be. How was the drywall distributed? Was the defective drywall sold in any other parts of the country? Was it used in commercial projects? Remodels? Schools? Lots of questions come to mind.

I'll let you know when I hear more.

Should you use a square foot price to estimate remodeling?

NO!!!!

Did I say that loud enough?

The answer is a resounding no.

Square foot pricing cannot take into account all of the variables of remodeling. Product selection, current condition of the project, jobsite access are only a few.

Do yourself a favor. After looking at the job site, prepare a detailed estimate based on the work that will have to be done for this particular job. Include labor and materials. Apply your mark-up. Stick by your estimate.

Happy Selling!
John

Post your ad on craigslist

Here’s a free lead source for you: craigslist.

You can post an ad there for free. Using html, you can even post your logo, photos, and create a nice graphic. Although you don’t even have to use html if you don’t want to.

Oh, and did I mention that it’s free?

Don't do business without a contract

I hope you have a legal contract that you use for all of your remodeling and home improvement work.

If you don’t, put down your tools and go right to your attorney’s office to get one. Otherwise you may end up there for not using a contract.

A contract protects not only the homeowner but you in case something goes wrong. It sets forth the full specifications of the job as well as what is expected from each party.

And if there is a change to the initial contract, make sure that you do an addendum. This can be a change order or additional work authorization or whatever you want to call it. But you have changed the initial contract and that, too, needs to be in writing, signed by both parties.

Are you selling every estimate you give?

If you are, then I bet your prices are too low.

You may be thinking: What? Too low? But I’m selling. I’m a great salesperson. My closing rate is 100%!

If your closing rate is 100%, you are not selling. You are taking orders. Try raising your prices, just a little at first, and see what happens. Your profit margins will be higher. Your cash flow will be better. And your closing rate will not be 100%. That’s ok, though. You are learning how to sell.

Happy selling!
John

Even if you are the owner, you need to track your hours

The reason? Because if you hired someone to do the same work that you do, you would pay them for it. Right? Which means that you need to provide for this time in your job estimates. You won’t know how much to put in your estimates unless you track your time on a regular basis.

It’s easier than you think. You don’t need to go hog wild with it. Start by breaking down your time in ½ hour increments. Using an Excel spreadsheet, divide each day into Production – on the job time; Superintendent – planning and supervising labor and materials time; Sales – meeting with prospects and preparing estimates time; Office – any administrative time; and Owner – working on your company time.

Enter time each day and total on a regular basis – weekly or monthly.

You may even find that you are spending way too much time working in your business rather than on your business. But that’s the subject for another day.

Market to prospects you want to do business with

I recently read an article about a contractor (I can’t remember his name but lets call him Bill) who was lamenting that he couldn’t compete against a company that employed illegal workers. He gave a specific example of a prospective customer who told him that he knew the other company used illegal workers and he didn’t care. He was willing to accept that for the cost savings.

Bill’s rhetorical question was “How do I sell someone who doesn’t see the value in doing business with me over a company that employs illegal workers?” The short answer is, “You can’t.” And the long answer is “You don’t want to.” Market your business to those customers you want to do business with. Don’t waste your time on those who don’t see or care about your value. It’s futile.

Do you guarantee your work?

We do!

That’s right, we give a 3 year labor warranty on just about all of our remodeling work.

Our state requires us to give a 1 year labor warranty. We decided, though, long ago that if we really wanted to stand out and if we really believed in our work, we would give a longer warranty than was required.

How has this worked for us? Great!

You may think that we are constantly being called to fix things. Nope. Most of the time we do the job right the first time around. But things definitely do happen. And when they do, we immediately make them right again.

I actually like knowing when we have a labor breakdown. That way I can track if we need to change our construction methods, our products or just be a bit more careful. I can also get an idea if an employee or subcontractor is not up to par.

A labor warranty works in another way, too. It gets you back in front of a past customer. And once you fix the issue, you have a happy customer. Many times there is more work just waiting for you.

Happy Selling!
John

Are you one of the best contractors?

I’m a personal subscriber to Angie’s List. I joined about a year ago so that I could track what information was being disseminated to subscribers about contractors.

I was excited to read that, according to a recent poll, most Angie’s List members have outstanding experiences with home improvement contractors. In the same breath, though, most of those same members have had at least one bad job in the past. That’s too bad. And it’s a negative mark on our industry.

Unfortunately, the media dwells on the bad over the good in the construction industry. And Angie’s List does, too, except that they also include a Best Contractors list.

I found their Best and Worst Contractors List of 2008 to be interesting, not from the point of view of the horror stories, but from the point of view of the positive stories about the Best Contractors. The Best Contractors were chosen because of their superior service, charity or community work, and child and pet friendliness.

Do you have what it takes to be on a list of the Best Contractors? Do what it takes to ensure that your customers have an outstanding experience.

Inspect what you expect

According to many experts, in order to get more accomplished in your day, you have to delegate some of your duties. Which ones? According to Brian Tracy, be ready to delegate anything that you possibly can to anyone who can do the task.

Of course, as Brian points out, delegation is not abdication. You must follow up and make sure that your delegated tasks are being completed on time and correctly. Supervise and schedule time to follow up.

Looking for work? Think outside the box

Like this young man in Seattle, Washington. He has developed a unique and low cost way to gather leads for his architecture firm. John Morefield has been laid off twice but he’s not letting that stop him.

What unique ways can you think of to bring in more leads?

Are you trying to sell every job?

You don’t have to sell every job. There are some jobs that just don’t fit your niche. There are some prospective customers you will meet who don’t fit your customer profile. There are some locations that don’t fit your geographic service area. Learn how to say no to the jobs that just don’t fit.

Happy Selling!
John

Gloom or Boom? You Decide

The naysayers, specifically the media, would have you believe that our economy has ground to a halt. Run and hide, Chicken Little. The sky is falling!

If you choose to listen to their messages of gloom, the sky will fall for you. But if, instead, you choose to believe that our economy can and will support your business, well then it’s a whole different ballgame.

The most important thing you can do right now is to be flexible. Be willing to change your business model. Tweak your products so that you offer those that your market wants to buy. Add or subtract services so that you can reach the most consumers. Be willing to do what it takes to survive and thrive.

Take advantage of sales training

Although some manufacturers, like Republic Windows and Doors, are shutting down, others are gearing up for a successful sales season. We recently received an invitation to Home Guard Industries’ Dealer Training and Workshop. Training such as this is geared toward helping us, the home improvement contractor, sell more. Find out what your suppliers are planning this year to help you sell more. If they have no plans, suggest that they provide some training and assistance. After all, it is a direct benefit to them if you sell more.

Happy Selling!
John

Happy new year

I love new year’s day. It’s a day of newness. The whole year stands before us, waiting for us to decide where it will take us and how we will get there.

Will this be your year to shine? Only you can make it so.

Decide now. Set your goals. Write them down. Review them often. Devise a plan. And take action.

Happy new year!
Annette

May 2009 be successful in every way possible.

We appreciate each and every one of you.

John and Annette