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.