On The Level Advice for Your Remodeling Business

Report Reflects Surge in October Home Improvement Spending

noreply@blogger.com (Annette Greco) — Mon, 07 Dec 2009 16:10:00 +0000

Maybe you are seeing some up-turn in your own remodeling market. I hope so. It seems that remodeling is on the rise again, thanks in part to the energy tax credit. Check out this great article from Professional Remodeler magazine.

Report Reflects Surge in October Home Improvement Spending - 12/2/2009 1:44:00 PM - Professional Remodeler:

"Government reports are showing that spending on home improvement surged 8.7 percent in October as American homeowners respond to tax credits.

Data from the U.S. Commerce Department’s monthly construction spending index showed spending on home improvements at a seasonally adjusted annual rate of $114 billion in October – a jump of 8.7 percent from $104.9 billion in September."

Chinese Drywall Update - U.S. Consumer Product Safety Commission Chinese Drywall Report - Popular Mechanics

noreply@blogger.com (Annette Greco) — Fri, 13 Nov 2009 08:01:00 +0000

Hoo boy. Here's an update from the Consumer Product Safety Commission on the Chinese drywall problem in the U.S. There is still no remediation strategy, compensation plan or consensus as to the exact chemical that is causing the problem. Read on. From Popular Mechanics Magazine:

Chinese Drywall Update - U.S. Consumer Product Safety Commission Chinese Drywall Report - Popular Mechanics :
"6 Surprising Findings from the Chinese Drywall Report The Chinese drywall scandal is now nearly a year old. And while incidents of Chinese drywall being installed in homes have all but stopped, complaints of bloody noses, sinus infections and vomiting spells for pets and people, widespread corrosion and blackening of copper tubing and wiring and 'rotten egg' smell continue to roll in. Last spring, the U.S. Consumer Product Safety Commission conducted 44 investigations into consumer complaints about drywall. Few of the complainants provided evidence that their drywall came from China, but the report included no shortage of devastating medical reports, panicked letters written to government officials and photographs of corroded metal. Here are six surprising findings from the report:"

Click here for more.

Home Buyer Credits Extended and Expanded

noreply@blogger.com (Annette Greco) — Thu, 12 Nov 2009 08:01:00 +0000

On November 6, 2009, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009. Among other things, the Act extends the $8,000 first time home buyer credit for homes purchased or under contract by April 30, 2010. In addition, a new smaller credit of $6,500 will now apply to families that have lived in their homes for at least five years and purchase another home between November 6, 2009 and April 30, 2010. Of course, there are restrictions and limitations on both credits. Check out NAHB’s new website Home Buyer Tax Credits for an excellent summary of both credits.

It is the President’s intention that expanding the Home Buyer Tax Credits will help to continue the sale of homes which will, in turn, reduce the inventory of unsold homes and help home prices continue to increase across the country. The White House points out that residential housing investment grew 23 percent in the third quarter, one of the contributors to positive economic growth.

Owens Corning Launches Shingle Recycling Program

noreply@blogger.com (Annette Greco) — Wed, 11 Nov 2009 08:01:00 +0000

Owens Corning Launches Shingle Recycling Program: "Owens Corning Launches Shingle Recycling Program
Manufacturer to simplify shingle recycling for contractors

TOLEDO, Ohio -- Nov. 3, 2009 -- Owens Corning announced through its roofing business that it will provide a new program that simplifies recycling asphalt shingles for its Preferred Roofing Contractors. The company is the first roofing manufacturer to connect contractors with convenient recycling facilities through a national strategic alliance."

Read more here.

How to deal with your client's increasing stress levels

noreply@blogger.com (Annette Greco) — Tue, 10 Nov 2009 08:01:00 +0000

A new survey reveals that homeowners are becoming more stressed as the result of their remodeling projects. Read on to learn how tension surfaces in a family situation and what you, the contractor, can do about it.

Survey Shows Remodeling is Stressful: "Survey Shows Remodeling is Stressful
Routines disrupted and relationships put on edge

A recent survey shows that remodeling often increases tension between family members.
ServiceMagic.com

GOLDEN, Colo. -- October 29, 2009 -- A national survey released by ServiceMagic.com indicates a rising trend in boosted tension and heightened stress levels within the family during a home remodel within the last year. In a time when remodeling is on the rise, up 13.5% from Q3 2008, ServiceMagic.com experts looked at the current trends and found surprising results from an exclusive homeowner survey."
For the rest of the article, click here.

So how do you deal with stress from a remodeling project to ensure that you are not on the receiving end of the client's frustrations? As the article stated, there are three main sources of frustration within the family:

Projects took too long.
Contractors were messy.
Projects went over budget.

You can easily deal with these three sources of frustration by managing the client's expectations and a little jobsite clean-up.

First, plan the job accurately and completely. Account for all phases of a job and put it down on paper. Make sure that your production team buys in on the schedule. Then, share that schedule with your client. Be sure to explain the schedule to your client, including events that could change the schedule (such as change orders). This is just as important for small jobs as it is for large ones. Never undertake a job without a written plan!

Second, clean up every day! Your production crews should put away their tools, neatly contain materials and broom sweep on a daily basis. If you are working inside the home, use plastic to contain dust and carpet/floor protection to keep flooring clean. Explain to the customer up front that any remodel will create dust but you will keep it to a minimum. And then do it! You may even consider paying for a cleaning service at the end of a job.

Third, present clients with change orders immediately if they wish to change the scope of the project. Detail the change, the cost and the impact on the schedule. If the client decides to accept the change order, make sure it is signed immediately.

The three main sources of stress for any family undertaking a remodeling project can easily be managed by you and your staff.

Moisture Management Solutions

noreply@blogger.com (Annette Greco) — Mon, 09 Nov 2009 12:48:00 +0000

Moisture problems can be a big issue for your clients. Want to learn more about how to deal with those moisture problems? Georgia-Pacific has created a new educational series on just that topic. And it's free. Just register, click and learn.

Moisture Management Solutions - LoginAndLearn.com: "Moisture Management Solutions CampusWelcome to the Georgia-Pacific Gypsum Moisture Management Solutions Campus. It is part of LogInAndLearn.com and is intended to be the single platform you should regularly visit for Moisture Management Solutions education, resources and associated links."

For more, click here.

Remodeling Magazine's 2010 Big 50

noreply@blogger.com (Annette Greco) — Sun, 08 Nov 2009 08:01:00 +0000

An award can boost your company's name and reputation in your community as well as give you a well-deserved pat on the back for a job well done. Remodeling's Big 50 is one of the most influential. Check it out and, yes, you can nominate yourself.

Think You're a Contender for the 2010 Big50? - Remodeling Magazine: "Think You're a Contender for the 2010 Big50?
What is the REMODELING Big50?"

Read more here.

Just 2% Can Make a Difference

noreply@blogger.com (Annette Greco) — Sat, 07 Nov 2009 08:01:00 +0000

What could just 2% more effort do for you and your company? Read on to find out . . .

Boost Referrals by Making a 2% Difference - Sales - Remodeling Magazine: "Boost Referrals by Making a 2% Difference
Sales expert Lorna Riley offers tips on building referrals"

Read more here.

Remodelers Tighten Up Labor Costs to Stay Afloat

noreply@blogger.com (Annette Greco) — Fri, 06 Nov 2009 08:01:00 +0000

Don't kid yourself, these won't be popular ideas to implement and they won't be easy, but sometimes we have to make tough decisions.

Remodelers Tighten Up Labor Costs to Stay Afloat - 10/1/2009 - Professional Remodeler: "Remodelers Tighten Up Labor Costs to Stay Afloat
Faced with a shortfall of new business, remodelers have been obliged to make cuts in staff, pay and benefits and bring work in house that used to be outsourced."

Read more here.

House Passes Homebuyer Tax Credit Extension

noreply@blogger.com (Annette Greco) — Thu, 05 Nov 2009 20:01:00 +0000

The extension of the $8,000 first time homebuyer tax credit moved another step closer today with the passage of the House bill. Included in that bill is a $6,500 credit for existing homeowners who have lived in their home the past 5 out of 8 years to purchase a new home. Next up is President Obama's signature.

Congress Passes Homebuyer Tax Credit - UPI.com: "Congress Passes Homebuyer Tax Credit
Published: Nov. 5, 2009
By Steve Cook Real Estate Economy Watch
After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow."

Read more here.

Learn from the best

noreply@blogger.com (Annette Greco) — Thu, 05 Nov 2009 12:38:00 +0000

Iris Harrell is an innovative and successful remodeling company entrepreneur. Read on to learn more about her and her successful company . . .

Iris Harrell: The 2009 Fred Case Remodeling Entrepreneur of the Year - Awards, Company Culture, Green Remodeling - Remodeling Magazine: "Fully Vested
Don’t try telling Iris Harrell that women can’t rock at remodeling — or that companies can’t continually evolve and grow stronger."

Read more here.

Senate extends $8,000 homebuyer tax credit

noreply@blogger.com (Annette Greco) — Thu, 05 Nov 2009 00:03:00 +0000

This is great news for the new construction industry and new home sales.

"Tax break for buying a home: The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30."

Read more here.

It's a Mixed Bag of Tricks

noreply@blogger.com (Annette Greco) — Fri, 30 Oct 2009 14:18:00 +0000

It’s a mixed bag of tricks as far as the economy goes. I reported earlier that GDP grew by 3.5% this past quarter, causing CNN to declare the economy back in gear.

Qualified Remodeler reports today in its Weekly Remodeling Market Overview that new home sales fell in September most likely due to the upcoming expiration of the $8000 first time homebuyer credit. That ends 5 consecutive months of increases in new home sales.

On the other hand, existing home sales are running at a brisk pace, again most likely because of the homebuyer tax credit. The credit expires on November 30, 2009. Buyers must have closed on the home by that date. It makes sense. Unless it’s a spec home, a new home would not be ready in time to take advantage of the expiring credit. And we all know there are not many spec homes around.

There has been some talk of extending the tax credit for one year. Another idea is to expand the credit to include all home buyers.

Home sales fueled the prior economic expansion and, in many ways, directly contributed to the current recession. Does it make sense that housing needs to recover first before the entire country can recover? That’s an interesting question to ponder.

Economy finally back in gear . . . according to CNN

noreply@blogger.com (Annette Greco) — Thu, 29 Oct 2009 13:59:00 +0000

Great news today! According to CNN, "Government says GDP grew 3.5% in third quarter, ending a year-long string of declines and coming in better than forecasts."

Read the entire article here.

I know that we are seeing more activity in our own local remodeling business. Sales are up in both September and October. More calls coming through. And people are thinking about doing more than just repairs.

For those who have continued to market through the downturn, you are in the right place at the right time. For those who haven't, you've got alot of catching up to do.

Regards,
Annette

UCLA Anderson Forecast Says The Recession Is OVER!

noreply@blogger.com (Annette Greco) — Mon, 21 Sep 2009 19:40:00 +0000

The end of a recession is the best time to start or grow a business. Are you ready? According to the UCLA Anderson Forecast, a leading economic forecaster, the recession is over. Don't miss this boat!

The UCLA Anderson Forecast: "In a report titled, “The Long Goodbye,” UCLA Anderson Forecast Senior Economist David Shulman states, “ … after four quarters of decline, economic growth is resuming. We forecast that real GDP will increase at 2.1% in the current quarter and 2.3% in the fourth quarter. For all of 2010, we forecast quarterly growth to average 2% with noticeable improvement at the end of the year.”"

Check out the full article on the UCLA Anderson Forecast website.

The positive and the negative

noreply@blogger.com (Annette Greco) — Wed, 16 Sep 2009 16:15:00 +0000

According to Hanley Wood’s Key Indicator Alert from last week, the economy is still improving slightly. The stock market has been heading in the right direction; mortgage rates are declining; new and existing home sales are increasing. The main drags on the economy now are jobs and lending.

Employers are still shedding jobs but at a slower pace than previously. That makes sense as businesses are trying to maximize their smaller profits or, in some cases, minimize their losses.

Lending is still a big problem for our industry. Most homeowners don’t have the financial wherewithal to pay for large remodeling projects out of pocket. Therefore, larger projects are put on hold. There is still activity, however, at the maintenance level.

Oh, and a big plus was the surprisingly large increase in the August Consumer Sentiment. Are we ready to move forward? I’m thinking consumers are not happy with the prospect of another bleak holiday season.

Are you using the Energy Efficiency Tax Credits to your advantage?

noreply@blogger.com (Annette Greco) — Tue, 15 Sep 2009 13:12:00 +0000

By now you’ve probably heard about the Energy Efficiency Tax Credits. Those are the credits that consumers can take for buying and installing energy efficient products in their homes. The products include replacement windows and doors, insulation, roofing, HVAC, water heaters and bio-mass stoves. (In addition, there are some geothermal and solar products that qualify for credits, too, but we will limit the discussion to retro-fit products).

If your remodeling or home improvement company specializes in any of these types of products, you are missing a big boat if you are not offering products that qualify for the credits. Just about all manufacturers in every one of these product lines are now offering products that qualify.

To learn more about the tax credits and what products will qualify, check out the government’s Energy Star website.

Remodeling magazine has a great section about the entire stimulus package. Check it out at http://www.remodeling.hw.net/green/stimulus-tax-credits/ for a comprehensive guide about the credits.

And you can check out our remodeling company’s blog, Manassas Remodeling Contractor, to see how we have been promoting the credits to our own customers.

But don’t wait for your customers to ask you about the tax credits. Bring it up in your sales presentation. I am still amazed by the number of consumers who are not aware of the credits or don’t know what products qualify.

Regards,
Annette

Networking Can Work

noreply@blogger.com (Annette Greco) — Thu, 10 Sep 2009 15:24:00 +0000

I found a great article for you on networking in Replacement Contractor Online. It touches on business networking, such as BNI and your local Chamber of Commerce, and how to do it.

The article also goes into networking with your current and past customers as well as your suppliers, contractors and others. There are some great examples of companies using these techniques.

In our own remodeling business, we network on a regular basis with our past customers as well as homeowners around a jobsite. We find this to be a great source of leads. I've also networked in the past with a local leads group as well as our Chamber of Commerce. Again, excellent lead sources if done correctly. A waste of time, if not.

Check out the article at: http://www.replacementcontractoronline.com/industry-news.asp?sectionID=316&articleID=1061829&artnum=1

Enjoy,

Annette

Put Time On Your Side

noreply@blogger.com (Annette Greco) — Thu, 10 Sep 2009 13:40:00 +0000

Do you have some potential clients who are on the fence about proceeding with a remodeling project? Are you looking for ways to create some urgency to get people to commit now rather than later?

Use time. Time (or the lack thereof) can be a powerful motivator to get your clients to commit now.

By explaining the amount of time each step in the remodeling process can take, your potential clients can see the need to move forward if they want to complete a project by a specific date. To make your presentation even more powerful, use a calendar or timeline and work backward from their date.

Finally, Some Good News for Remodelers

noreply@blogger.com (Annette Greco) — Sun, 06 Sep 2009 13:07:00 +0000

There’s a lot of positive news in Qualified Remodeler’s September 4th Weekly Market Overview. First, according to data from ServiceMagic.com, remodeling (versus repair and maintenance) requests are on the rise, especially among those in homes valued between $200,000 and $300,000. And, equally interesting, is that baby boomers (those in the 45 to 64 age group) are the ones making those requests. Interest is rising in kitchen and bath remodeling. And consumers are intent on increasing the entertainment value of their homes with the purpose of staying home more. (Remember our discussion of cocooning several months ago?)

And the biggie: According to Qualified Remodeler, “Homeowners plan to tackle small projects, keeping with the Q1 trend, with the intent to head into large-scale remodels in early 2010.”

Be cautiously optimistic, fellow remodeling professionals. Plan ahead and be ready. There is still a major issue in remodeling. That is how homeowners plan to finance their improvements. With home values down, the spigot has been turned off on their home equity lines.

Personally, we are already seeing more calls in our own remodeling business. Projects are still smaller but more and more, people are thinking about larger projects.

6 Myths About Green Consumers

noreply@blogger.com (Annette Greco) — Sat, 05 Sep 2009 12:31:00 +0000

I recently ran across this article entitled, 6 Myths of Green Consumers. It states:

"A new national study of green consumers contradicts several long-held stereotypes about them: The environment is not their top concern, their kids are not influencing them to be green, and while many know what they should do to save the planet, they often don’t do it."

It's based on a study of consumers who, at least occasionally, buy green products. It's an interesting article and I thought you might like to read it.

http://www.ecohomemagazine.com/news/2009/08/6-myths-of-green-consumers.aspx

Cell Phone Recycling

noreply@blogger.com (Annette Greco) — Fri, 04 Sep 2009 12:55:00 +0000

While preparing my remodeling office for a move, I stumbled upon our stash of used, out-of-date cell phones. We kept these phones over the years so that we could use parts in our new models. How many times did that happen over the past 20 years of cell phone use? About 2! How many cell phones had we accumulated? 27!!!

Purely by coincidence, I stumbled upon a great use for these phones that benefits our troops overseas. The program is called Cell Phones for Soldiers. Since 2004, teens Brittany & Robbie Bergquist and Cell Phones for Soldiers have raised millions of dollars to help our troops call home. Donated cell phones are recycled and the proceeds are used to purchase prepaid calling cards for American troops.

I hope those 27 phones provide some great talk time for our military families.

Looking for Financing for your Remodeling Business?

noreply@blogger.com (Annette Greco) — Thu, 03 Sep 2009 16:29:00 +0000

I ran across this article today on Remodeling on-line and it gives alot of information about where to go for SBA loans. Check it out:

http://www.remodeling.hw.net/green-policy/lifelines-of-credit.aspx#

Twitter Through The Remodeling Show

noreply@blogger.com (Annette Greco) — Thu, 03 Sep 2009 15:10:00 +0000

Can't make it to The Remodeling Show but still want to stay up-to-date? Follow The Remodeling Show on twitter.

http://twitter.com/remodeling_show

Twitter updates begin September 9th. The Remodeling Show starts October 27, 2009 at the Indiana Convention Center in Indianapolis, Indiana.

You can follow me on twitter, too, at:

@annettergreco

Regards,
Annette

Ch - Ch - Changes!

noreply@blogger.com (Annette Greco) — Mon, 31 Aug 2009 13:33:00 +0000

Changes are abounding for me personally and in our remodeling company this month! In August, we consolidated our office space for our remodeling business and that meant my office had to move. It was a long process. I can't believe just how much stuff accumulates over the course of 24 years! But it also meant a thorough cleaning and re-organization. It's amazing how refreshed that can make one feel!

The second change was taking our daughter to college. That's an even bigger one because she's an only child. The house seems quiet but I'm keeping myself busy with lots of projects.

Look for more changes in On The Level Consulting in September. We are adding more items to make running your company easier. And a new service to help you improve your company's Google local search ranking.

Regards,
Annette