Banking Crisis Affects Home Improvement Suppliers

Have you been following the story in the news recently about the factory that closed down when Bank of America shut off their credit line? The employees began to occupy the plant and refused to leave until they were paid their promised severance payments. After 6 days, the workers were able to negotiate the payment.

The name of the company? Republic Windows and Doors. It’s a window and door manufacturing plant in Chicago employing about 300 workers. It makes windows and doors for both new construction and remodeling.

And it’s not the first home improvement supplier to abruptly close upon losing their bank funding. Other manufacturers supplying the home improvement market which have closed include Kensington Windows, Silver Line Building Products (an Andersen subsidiary), Milgard Windows & Doors and Heartland Building Products.

As manufacturers close and consolidate, we would be wise to keep up-to-date so that we can steer our customers clear of these products. If you find that you have installed some of these products, you should contact the manufacturer to find out how they will handle any product warranties. Be proactive.

Click here to read the full story in Replacement Contractor Online.

A Boost for Remodeling in '09?

Diana Olick of CNBC’s Realty Check blog released her Predictions: 9 for ’09 in Real Estate . Among her predictions: existing home sales will bounce back in 2009 but at much lower prices. Could that mean more remodeling work? All the more reason to keep marketing. Read her report and decide for yourself.

After All, You Are the Expert!

Your customers expect you to be the expert when it comes to remodeling. Make sure that you are up-to-date on local zoning and building ordinances as well as building codes and techniques for the types of projects you typically sell.

After all, your customers are paying for your expertise.

It's Official! We're In a Recession

Yep. The group tasked by the Federal Government with determining whether or not our economy is in a recession has agreed with what most analysts have been saying all along. We’re in a recession.

Here’s a clip from their news release:

The NBER — a private, nonprofit research organization — said its group of academic economists who determine business cycles met and decided that the U.S. recession began last December.

Folks, it only took them 12 months!

So I’m going to look at the bright side of this. We’re already 12 months into it!

Remember, chin up and smile!

Keep Your Selling Skills Sharp

One of the most important things you can do right now to increase your remodeling company’s sales is to keep your own selling skills sharp.

How can you do this?

Practice, study and practice some more.

Read books, listen to tapes, watch videos.

Then practice your own sales techniques on your spouse, your kids, your friends, your dog. Even in the mirror.

Happy Selling!
John

Do Your Customers A Favor . . . Accept Credit Cards

Our remodeling company has accepted credit cards for years. VISA, Mastercard and Discover specifically.

Yes, there is a fee for accepting credit cards and it will depend on the fee you negotiate with your credit card processor. I consider that fee a cost of doing business.

I was surprised a few years back to learn that many companies in my local industry group didn’t accept credit cards. The biggest concern was that customers would initiate a charge-back on the credit card and the remodeler would never get paid.

I was a bit surprised about this because I have never had this happen in 12 years of accepting credit cards as payment! Do quality work with quality products for quality people and you won’t have to deal with this issue.

People love to use their credit cards to get airline miles, hotel points, rebates and similar benefits. So make it easy for them to use their credit card with you. They will appreciate it.

Make December One to Remember!

When I first started selling remodeling, I did not look forward to the holidays. After all, nobody buys remodeling during the holidays! I might as well save my time and breath and not even see anyone. From the week of Thanksgiving to after the first of the year, sales were dead, dead, dead! We shouldn’t even waste our money on advertising or marketing during that time. After all, everyone knows that consumers don’t buy remodeling during the holidays!

Wait! What if that’s not true?

I started thinking about that. What if I changed my belief system? What if instead I thought that I could sell a lot of remodeling during the holidays? After all, people are thinking about their home, their families. They might even be off work.

And that change in my belief system started me on a December sales record. One of my top 10 sales months in company history was a December. And out of the last 10 years, I have blown out my goal more than half of those years. The others were pretty darn close.

So this year, try changing your belief system about selling remodeling during December. You may be pleasantly surprised to find that there are definitely buyers out there.

Happy Selling!
John