Professional remodeler (January 2006)

33 Pages·2006·6.637 MB·English

prx0601cover.qxd 12/30/2005 12:14 PM Page 1
JANUARY 2006 THE SOURCE FOR PROFESSIONAL SOLUTIONS
How to Reduce
Household Noise
The Importance
of a Written
Code of Values
2006 International
Builders’ Show
Product Preview
Contract
CHECKUP
Get yours in good shape
L
A
C
DI
O
RI John Fiderio, Owner
PEwww.ProRemodeler.com Fiderio & Sons
prx0601toc.qxd 12/23/2005 1:07 PM Page 3
Professional Remodeler
C O N T E N T S
JANUARY 2006
VOLUME 10 NUMBER 1
p48
ON THE COVER:
John Fiderio, owner of
Fiderio & Sons.
Photo by Dave Bradley Photography
p 26
p53
p 42
www.ProRemodeler.com p59
New Look for Professional Departments
RemodelerOnline!
Visit www.ProRemodeler.comto LETTERS 6
see the new look of Professional
EDITOR’S LETTER 9
Remodeleronline.
Features
Your Opinion Counts BEST PRACTICES
REMODELERS’
See page 68 for this month’s poll.
cover story EXCHANGE 12
Post your response at our new Web
site,www.ProRemodeler.com. Contract Checkup p 26 Choose the Right Turf
LEADERSHIP 19
Get Your Show Village
Is yours in good shape? The Power of Written Values
Passport Today
If you are attending the Builders’ feature SOLUTIONS
Show,the Show Village Passport is PORTFOLIO 48
Show & Tell
your ticket to fabulous prizes! Visit p 34 Basement Remodel
www.HousingZone.com/sv06for Innovative new products at the International Builders’ Show pro- INNOVATIONS
more information. vide solutions to remodeler challenges and homeowner desires. CONSTRUCT 53
Market Leader Awards Silence is Golden
Be recognized as a leader in your spotlight PRODUCT SHOWCASE 59
local market and an example of Mission Accomplished Behind-the-Wall Materials
p 42
best practices in action.Enter at
www.HousingZone.com/mlaward. A nightmare remodel — just begging to be bulldozed — turns into
5-MINUTE UPDATE 68
a dream come true thanks to the contractor’s creative approach. 2006 Economic Forecast
www.ProRemodeler.com JANUARY 2006 PROFESSIONAL REMODELER 3
prx0601letters.qxd 12/22/2005 10:30 AM Page 6
Professional Remodeler
L E T T E R S
I get several trade magazines
CONTACT US:
and look over each issue for...useful articles.
Your magazine is one of the better ones.
Letters:
Please send to Letters,
Professional Remodeler
2000 Clearwater Drive
Curbless residential and commercial
Oak Brook,IL 60523
construction remodeling and members
Fax:[phone]
On page 18 of the univer- of the Remodelors Council. E-mail:michael.morris@
sal design article in reedbusiness.com
All submissions become
your November issue, you
the property of Professional
show a picture of a curbless More news on lead
Remodelerand will not be
T
shower. Our firm has been hanks for your informa- returned.They may be edited
contracted to create such a tive article in the recent for length and clarity.
shower. We would appreci- Professional Remodeler
To submit a project
ate it if you have any further (November) regarding lead-
for print consideration:
information or could point safe work practices. I was not
Kimberly Sweet,630/288-8170
us in the right direction to able to find the info at [email protected]
obtain more information on www.nahb.org.
how to design and construct a spelling question regarding If you can send me the To participate in
Remodelers’ Exchange:
such a unit. your column (“Editor’s link, I would appreciate it.
Judi Damm,630/288-8193
Bob Harris Notebook”) in the Septem- I am very interested in this
[email protected]
Harris & Harris Professionals ber issue. The “Twin topic in light of the fact that
Queens, N.Y. Cities’...Remodelors Show- we do about $1 million a To submit new product
case” and the “Home year in gross sales almost information:
The editors reply:North Builders Association of exclusively as remodelers. remodelerproducts@
reedbusiness.com
Carolina State University’s Greater Chicago Remode- I get several trade mag-
Or mail to Remodeler Products
Center for Universal lors Council” are spelled azines and look over each at the address below.
Design offers the booklet with “or” at the end instead issue for interesting and
“Curbless Showers: An of “er.” I am not familiar with useful articles. Your maga- To register for e-mail
newsletters:
Installation Guide.” It is this spelling and wondered, zine is one of the better
www.proremodeler.com/
available for download as a what’s up? Please clarify, as ones.
subscribe
PDF file on their Web site, I write about remodeling. Dave Greenetz
www.design.ncsu.edu/cud. Rick MacKay Dave Greenetz Construction Change of address and
Author Yuba City, Calif. subscriptions:
www.reed4success.com
Psychotic Remodeling
Or e-mail subsmail@
You say remodelor, The editors reply: For
reedbusiness.com
I say remodeler The editors reply: more information on lead- Customer Service
I’ve been in the business Remodelor is a trademark safe work practices, contact Reed Business Information
for almost 30 years and that identifies NAHB Gary Suskauer at 800/369- 8878 S.Barrons Blvd
enjoy your magazine. I have members who are active in 5242, ext. 8327. Highlands Ranch,CO 80126
Phone:[phone]
Fax:[phone]
IntroducingProRemodeler.com Editorial and
Beginning January 3, Professional Remodeler launched its new home page — www. advertising office:
ProRemodeler.com— the place to go for in-depth articles, information and advice on 2000 Clearwater Drive
Oak Brook,IL 60523
innovative best practices and solutions in all areas of your business. Log on and cast
Phone:[phone]
your vote in our first ever online reader poll (see page 68). Look for more changes in the Fax:[phone]
coming months, as we unveil a new design and improved content to serve you better.
6 PROFESSIONAL REMODELER JANUARY 2006 www.ProRemodeler.com
prx0601edit.qxd 12/23/2005 2:44 PM Page 9
Professional Remodeler
S TA F F E D I T O R ’ S L E T T E R
Editor In Chief
Michael R.Morris
630/288-8057;[email protected]
Editor
Kimberly Sweet
630/288-8170;[email protected]
Managing Editor Changing Channels
Judi Damm
630/288-8193;[email protected]
Senior Contributing Editor
Wendy A.Jordan
Contributing Editors
Doug Dwyer,Alicia Garceau,Mike Gorman, If you’re paying attention to us
Alan Hanbury,Jud Motsenbocker,Tom Swartz,
Dave Taraboletti
Editorial Director as much as we are you, you’ll
Paul Deffenbaugh
Creative Director
Bill Patton notice that there are some
Senior Art Director
Larry Nigh
changes in this month’s issue.
Director of Events/Custom Publishing
Judy Brociek
Production Director After studying the results of this
Karen Ruesch
Advertising Production Manager
Carl Johnson year’s readership survey, we
Circulation Manager Michael Morris
Angela Tanner
discovered three important Editor in Chief
Publisher,ProfessionalRemodeler
Director,Building Group 630/288-8057
Niles D.Crum
themes that led us to reorganize [email protected]
Associate Publisher-Sales
Tony Mancini
Editorial Awards our editorial content in 2006. leaders of the professional remodeling
●2005American Society of Business Press Editors,Midwest Region
(1)●2004American Society of Business Press Editors,National (1) Based on your survey responses, we industry.”
and Midwest Region (3) ●2003Jesse H.Neal,National Business
Journalism Certificate;American Society of Business Press Editors, have created three distinct channels of But we didn’t just stop at a simple
National (3) and Midwest Region (4) ●2002Jesse H.Neal,Editor- content — Best Practices, Solutions and reorganization of our content.
ial Achievement Award;American Society of Business Press Editors,
National (1) and Midwest Region (2) ●2001Jesse H.Neal,Editor- Innovations. During this process of You should notice as you read our
ial Achievement Award;American Society of Business Press Editors,
Midwest Region ●2000Jesse H.Neal,National Business Journal- reorganization, it became apparent that articles this year, that our approach is
ism Certificate (2);American Society of Business Press Editors,Mid-
west Region ●1999Jesse H.Neal,Editorial Achievement Award; most of the content that we feature more focused around innovative best
American Society of Business Press Editors,National and Midwest every month could fall under any or all practices and solutions you can use in
Region●1998Jesse H.Neal,Editorial Achievement Award
Editorial Advisory Board of the three channels. your business. We will make a con-
●Bob DuBree,CR,CKBR,CLC,Creative Contracting ●Craig S. As an editor, it was also very reward- scious effort to report on every topic
Durosko,CR,Sun Design Remodeling Specialists ●Doug Dwyer,
DreamMaker Bath & Kitchen by Worldwide ●Dennis D.Gehman, ing to discover that the three channels with this mission top of mind.
CR,CLC,Gehman Custom Remodeling●Alan Hanbury,CGR,
CAPS,House of Hanbury ●Adam Helfman,CR,Fairway Con- of information most important to you So as you read this issue, and the
struction●Alan Hendy,Neal’s Remodeling ●Mike Gorman,
Tech Knowledge ●Allison Iantosca,F.H.Perry Builder ●Wendy were well represented in what we were next few that arrive on your desk, I ask
A.Jordan●Greg Miedema,CGR,CGB,CAPS,Dakota Builders already doing. The difficult part was you — no, I challenge you — to get
● Mike Nagel CGR,CAPS,RemodelOne Design/Build Construction
●Bill Owens,CGR,CAPS,Owens Construction Contracting Co. deciding which channel would be the involved in this mission with us. Pick up
●Randy Ricciotti,Custom Design & Construction ●Carl Seville,
CR,SawHorse Inc.●Scott Sevon,CGR,CAPS,GMB,Sevvonco Inc. best fit for which departments. Believe the phone and call me, or write an
●Scott Strawbridge,Strawbridge Inc.●Mike Tenhulzen,CGR, me, it wasn’t easy. e-mail, and tell me about the systems,
CAPS,Tenhulzen Remodeling
Editorial and Advertising Offices Remodelers’ Exchange is the perfect philosophies and processes that make
2000 Clearwater Drive,Oak Brook,IL 60523
example of what I’m talking about. your business great.
Phone:[phone],Fax:[phone]
Subscription Inquiries Every month the discussion uncovers When I challenged our editorial
Customer Service,Reed Business Information
8778 S.Barrons Blvd.,Highlands Ranch,CO 80126 two successful remodeling companies’ advisory board with this mission at the
Phone:[phone],Fax:[phone] best practices, business solutions and Remodeling Show in Baltimore a cou-
[email protected]
innovative ideas and processes. ple months ago, the discussion revealed
Reprints
For custom reprints and electronic usage,contact The same can be said for three of many great ideas, including one that led
Reprint Management Services at:800/290-5460,x.110 or
via e-mail:[email protected] our other staples: Construct, Portfolio to us changing 5-Minute Managerto 5-
CEO,Reed Business Information and Spotlight. MinuteUpdatewith a greater emphasis
Tad Smith
President,Chicago Division In essence, this process has produced on industry news and issues of impor-
Jeff Greisch
a mission statement at Professional tance to all remodelers.
To subscribe to Professional Remodeleronline, Remodeler: “to deliver innovative best You may find, like many of them did,
visitwww.HousingZone.com/subscribe
practices and solutions for the business that by sharing, you can learn. PR
www.ProRemodeler.com JANUARY 2006 PROFESSIONAL REMODELER 9
prx0601remex.qxd 12/21/2005 12:22 PM Page 12
Professional Remodeler
B E S T P R A C T I C E S
R E M O D E L E R S ’ E X C H A N G E
Choose the Right Turf
Sales approaches differ between the home and the office
M
aking a sales presentation in senbocker asks remodelers John Mur- room. Does it have kitchen displays and sid-
a prospect’s house allows the phy, Robert Frazier and Phil Under- ing displays and bathroom displays? How is
homeowner to be at ease and wood which they prefer and why. it set up?
to envision the remodel on site. Getting Robert:We have a couple bathrooms
the homeowner into your office might Jud:What percentage of your sales are done which we did very nicely for our own
be a harder task, but once in the office, in the clients’ home versus your office and/or use that we use as displays. We sell
the prospect has fewer distractions and showroom? Robert or Phil? everything in the showroom: siding,
can see more products in person. Both Robert:At least 75 to 80 percent is in windows...
approaches have advantages; Jud Mot- the showroom. Phil:It has roofing samples, siding and
Phil:Our larger jobs, the additions and floor samples, construction material,
the add-a-levels, 90 percent of those are beams, microlams, hangers, windows,
done in the showroom. We emphasize everything is there to give the customer.
that we are a full-service company and Robert:Blueprints. Pictures.
we offer service to customers that Phil: We let our customers know we
nobody else does. We want the people are in the construction business, not in
to come in and see our campus. We the accessory business, but because we
want to show them our showroom, our have associations with all the suppliers,
finance department, our construction they’re going to get the builders’ price
department, our zoning department, on anything they need to complete
our permit department, talk about the their project. We have samples of all the
process and how we give them full serv- items — the tile, the flooring, the kitchen
ice with no pain. cabinet brochures, brochures of vani-
If Mr. Jones refuses to come into the ties — but we do not do any of the
showroom, I will go out to the cus- kitchens here. We send them directly to
tomer’s home, do my presentation with the kitchen designer with the plans and
my pitch book, then hopefully they will they pay for it directly with them.
John Murphy, President, CEO
follow us back to the showroom or Jud:John, what does your showroom look
Murphy Brothers Designers
make an appointment at the showroom. like?
& Remodelers
John:On design/build projects, we do John: Our showroom is not that
Design/build remodeling forms the a first interview in their home, and the involved. It’s more of a conference
core of Murphy’s business, but the second interview is in our office. We room setting. We use the picture pro-
company also includes a paint usually ask for a design check in the first jector and the Internet a lot. We can
department and a Case Handyman interview. If that doesn’t happen, that go on the Web to pull up a sample or
& Remodeling franchise. In 2005, second interview in the office is usually something. We have basic siding, roof-
Murphy Brothers did 42 design/ about getting a design check. ing, hardware, some basic kitchen cab-
build projects, 200 paint jobs and The average job size on the Case inet stuff. We do our own kitchen
600 small jobs for total revenue just side, on contract sales, is around design. We’re actually a Crystal Cabi-
under $5 million. $7,000, and that typically is a one-call, net Works dealer.
Located in Blaine, Minn., just in-the-home close. Hopefully at the Jud:How does your approach to sales dif-
outside the Twin Cities, the 22-year- height of emotion during the sales pres- fer in the house compared to in the office?
old firm does not have a show- entation you are able to get them to John: In the house is where we give
room, although Murphy plans to agree that you got a good solution. You the presentation to get them excited
remodel the conference room and generate the estimate and produce a and come up with a solution. We need
office space. Photo by Steve Woit contract right there. pretty skilled sales staff in that situation.
Jud:Give me a description of your show- They have to have some construction
12 PROFESSIONAL REMODELER JANUARY 2006 www.ProRemodeler.com
prx0601remex.qxd 12/21/2005 12:23 PM Page 13
Jud Motsenbocker
Contributing Editor
knowledge to propose a solution. We to the retainer agreement, to the pre- we can do the measurements and we
have a computer construction estimat- liminary plan and all the documenta- can eyeball it. They’re sitting at our
ing program they use in the house, so tion — we get about twelve sets of paper- table with all our pictures and awards
they have the numbers, but they still work — in five days. and service records.
have to understand how it goes together Jud:Do you have different people that do I was brought up canvassing door-to-
and which menu items to put in the esti- in-house sales compared to in-office sales? door. Most of my selling was in-house.
mate. The pricing is pretty accurate in Robert: I want all the salespeople to I was taught if you walked out of the
terms of our margins and we don’t devi- learn to sell in the home as well as to sell house without the deal, that was it.
ate too much. in the office. Most of the people we get When I went into my own business,
When people come in, most of the to come in our office. We’re selling big-
time we already have that retainer. Usu- ger jobs now. I’d say our average deal is
ally our design retainer is in the 2 to 5 now about $130,000. So it’s a whole dif-
percent range, depending on the size of ferent approach, it’s not like the tin man
the job. where you hammer people and get
Jud:Is your closing rate in the office high them to sign up that night.
compared to in the home? John:We’re divided more by job size.
John: Once they come in the office Our design/build staff is more design-
and we’ve already done a presentation, oriented on the bigger projects. The
it’s probably more like 80 to 85 percent. smaller job staff, the guys that do the in-
On average, the in-home, one-call close house, one-call closes, they’re more
ratio is about 30 percent. production-oriented because they have
Jud:Robert, Phil, what is your closing rate to know the solution and offer it and sell
for in-house compared to in the office? it right there, right then.
Phil: The ratio on the showroom close Robert:I would say a guy going out to
is extremely higher than the in-house a house has to be a little stronger. I don’t
close. I would say somewhere around think that’s ever going to change. If you
80 percent in the showroom, between want to go out to a house and walk in
Robert Frazier, President
30 to 35 percent in the house. with your briefcase and samples and
Robert’s Home Designs Inc.
Robert:When someone comes in the pictures and do a full presentation, you
office, we have a retainer agreement. have to ask for the order. This 15-year-old firm in Randolph,
Our closing ratio for a retainer agree- Jud:You’re saying a guy who goes outside N.J., specializes in add-a-levels but
ment is probably 80 percent. We get at needs a little extra sales strength. does a full range of residential
least a $1,500 retainer on a credit card Robert: Yeah, and be a better closer. remodeling and improvements. In
or in a check, and at that point we go Jud:What can we blame that on, more sup- 2004, Robert’s Home Designs did
forward with our own draftsman. port in the office? 110 jobs for a total of $10.3 million
I have three outside architects. I Robert: When someone comes to in revenue. President Robert Fra-
don’t let the outside architects do the your office — when they pull into your zier and sales manager Phil Under-
preliminary plans anymore because parking lot — right then and there, you wood grew the business in 2005
they were bogging us down. Our turn- have the edge. When they walk into and are planning for 200 jobs and
around for prelims on a whole add-a- your showroom and you do your full $30 million over the coming year.
level with three or four different looks presentation, it’s just an easier type of As part of the firm’s growth, they
is a couple of days. We get them back in sell. We qualify people on the phone will begin putting an addition on
the office, they pick out the prelims, naturally. We tell them what they need the existing showroom in spring.
and we close the deal. We just closed an to bring in. We need pictures of their Photo by Jeff Klein
add-a-level from the time they came in, house and their property survey. Then
www.ProRemodeler.com JANUARY 2006 PROFESSIONAL REMODELER 13
prx0601remex.qxd 12/21/2005 12:23 PM Page 14
Professional Remodeler
B E S T P R A C T I C E S
R E M O D E L E R S ’ E X C H A N G E
I changed that theory because I did get John: Right. They can walk through complete your end project.
call-backs. People do call you back if and change the furniture, change the Jud: We’re finding that having a Power-
you do make a full presentation out color of the walls, the species of wood Point presentation as a presentation book
there. But you always have the edge in on the cabinets or whatever. type of thing is selling the company. Then
the showroom, I don’t care how strong Jud:Robert and Phil, what do you guys do? going ahead and showing, “Here’s your
a sales force you have outside. Do you use technology? home and what we’ve designed for you is this
Jud:John, is there anything in particular Phil: We have models of ranches and room or second story. Let me show you what
about your showroom that you think makes Cape Cods. You can take the roof off it’s going to look like from the outside.” It
it stronger than selling in-house? and actually look down inside the gives you the shock, gets the adrenaline going
John:Well, we don’t have a lot of sam- house on different floor layouts. And so that it works.
ples. But for probably eight years, I’ve we also use existing floor plans and Robert: We get our customers
been sitting people down in front of the blueprints. Every job we do, the cus- enthused. We all know that if there’s no
computer, doing a 3-D walk-through tomer has to sign off on the prelims. enthusiasm on the salesman’s part,
and things on the LCD projector. That’s They have to sign off on the blueprints you’re not going to sell the deal.
been a differentiator. It turns a lot of and those blueprints become part of Jud: When you put these leads up, who
people on that they can actually visual- our home improvement contract. determines whether they’re going to the
ize their project before it’s done. Jud:Do you use any kind of laptop com- showroom or they’re going to the house?
Jud: You’re using technology to help sell. puters or LCD projectors for your design Phil:Robert tries to get everyone in the
Talk to me about that more. and selling? showroom. If we can’t get them into the
When someone comes to your office — when they pull into
your parking lot — right then and there, you have the edge.
John:On the projector, we’ll try to do Robert:No, we have not. Most homes showroom, then we go to the home.
a couple of floor plans to give people in our area don’t vary that much. It’s Jud:Who asks that? The salesman or the
some different perspectives. We can either a Cape, a ranch or a bungalow. person who takes the lead?
edit the plan right in place, show them When we qualify a lead, we pull blue- Phil: The person who takes the lead.
something a little different. That usually prints from a house very similar to it. We “Come to our showroom. We have
engages them, gets their creativity flow- have thousands of sets of blueprints. We appointments available tomorrow at 10
ing, and they get into the process. Then use those blueprints in our presentation, or 4, how does that sound?” And then
we can explain to them the pros and and we give them different looks. get the appointment.
cons of different layouts. They’ll ask We do give them three or four dif- John: When the leads come in right
for something we know doesn’t work; ferent preliminary drawings. We have now, anything that’s significant in size,
once they see it they understand why it an excellent draftsman and they pick I get them and I’m tracking. Then they
doesn’t work. It leads to a greater level from that during the close. get some more information about the
of trust and improves our ability to give Jud:John, do you put something like your client and the project so they’re pre-
them a product or project that satisfies presentation book on the screen? pared for that appointment.
what they’re looking for. John: No. In our presentation book, Jud:OK, but you do it by project size. You
We do that after we get a design we have some renderings and draw- know whether it’s a Case Handyman thing
retainer. It’s more of a closing tool. If ings, some before pictures, a blueprint, or whether it’s going to be a design/build.
we’re going to go out to do a home meas- and then a CAD treatment and the fin- John: If it’s a Case lead or a small job
ure up, we’re not going to do it without ished project so we can show them how lead, I’ve got a client coordinator. She
some level of commitment by them. they can view it and how it’s going to takes it and books and sets an appoint-
Jud:So you can put that room addition or unfold. That’s part of what we’re sell- ment with one of the reps in the home.
second story on this house and they can phys- ing: When you engage us for the She puts it on her calendar. They get a
ically see what it’s going to look like on the design, here’s the process you’re going lead sheet and a brief job description.
screen. Can they walk through their home to go through, here’s how we’re going Even in those cases they confirm and do
and see their project completed? to get to what we’re showing you and a little warm-up so they can come with
14 PROFESSIONAL REMODELER JANUARY 2006 www.ProRemodeler.com
prx0601remex.qxd 12/21/2005 12:23 PM Page 16
Professional Remodeler
B E S T P R A C T I C E S
R E M O D E L E R S ’ E X C H A N G E
enough brochures and materials so they We have a building next door that for the kids.
can close it in-house. It can vary from job happens to be our lawyer’s. His two Jud:Do you have a kid’s corner for them
to job what they can bring for back-up. tenants moved out, and we took over to play in while their parents are talking
Jud:In your marketing, do you advertise to the whole building downstairs. That’s to you guys?
“come to our showroom”? our construction department. We have Robert:Yes, we do. We have two differ-
Robert:Absolutely. We push that and another small, separate building ent areas. When we add the new build-
we push it all the time. We want the behind it, and that’s our variance, zon- ing on, we’re going to have anotherarea
people to come in here. ing and permit department. We walk so we can get the kids away from the
Jud: John, are you pushing that in your the people around. It’s the Robert’s parents so there’s no interruption to the
marketing? Home Designs campus. It works. presentation and the close.
John:We don’t really push to come in Jud:John, how about you? Jud: John, do you have anything for the
other than it’s part of our presentation. John: We’re more sample-oriented kids?
We try to create separation in our pro- right now but over this winter we’re John: We do, not quite that formal.
fessionalism, in our full-service capacity, going to create more of a living-room We’ve got Legos and coloring books
in our design ability. atmosphere and put in some soffits and and sometimes the kids, depending on
Jud:Do either one of you have open houses indirect lighting. It’ll have a lot in it — age, sit on the corner of the table and
or parties where past clients come into your it’ll be kind of busy but hopefully cre- color. Other times I’ll have somebody
showrooms? ate some ambience that we really don’t else in the office distract the kids in the
They’ll ask for something we know doesn’t work;
once they see it on the screen, they understand why it doesn’t work.
Robert:No, we have not done that yet. have right now. next room, depending on whether the
John: We haven’t done that in our Robert:We have all the indirect light- parents are able to focus or not.
office. We’ve done a couple in conjunc- ing, the bells and whistles. Jud:Is there a huge advantage when you get
tion with owners in their newly remod- Phil:And marble flooring and beauti- prospects into your showroom and they’re not
eled home. ful bathrooms. Crown molding and distracted by the things in the home?
Jud: Do samples differ in the showroom space molding. It really is a beautiful John: That’s why we get them in on
compared to in-house? showroom. the second appointment, it’s to get
Robert:The samples are larger in the Jud: So what you’re saying is that when them out of their environment and get
showroom. somebody walks in there you want them to them into an area where they can see
Jud:Because you can handle them better. say “Wow.”Then you have a system in place some things and get excited. If it gets to
John:I agree with that. We have a lit- to sell the company, not the product. be toward dinner time or the kids are in
tle bigger samples, windows and cabi- Phil: That’s correct. We are salespeo- the environment, that can be very dis-
nets in our showroom. ple. Sell the company first. tracting in terms of getting both hus-
Jud:How much credence do you put in the Jud: John, you’re basically in the same band and wife on the same page to
quality of your showroom? Is that a vital boat. You’re selling your company and you make a major decision. Anytime you
part as far as you’re concerned? want them to be impressed when they walk can remove the distractions you have a
Robert: Absolutely! I don’t think in the door. better chance of closing a deal.
there’s anyone else in our area with a John:Right, right. Our focus has been Robert:I’ve had it happen where the
showroom. They’re operating out of on facilitating the best answers for their phone rings, or the neighbor knocks on
their trucks. Everyone’s heard the hor- home. the door. You give them the high sign
ror stories, and we really push that. Jud:When clients walk in the front door and you’re hoping they leave, and they
This is our building; we own it. We just are their names on a bulletin board or some- don’t. We are pushing the showroom,
got a permit to put another two stories thing welcoming them? we are investing a lot of money in this
on. We’ll be starting in the spring. Phil: No, but the warm-up and wel- large addition we’re doing next year.
We show them the plans, how we’re come is the handshake, coffee, tea, We feel that’s the way to go in the future
expanding. beverage, crayons and coloring books and that’s the way we’re going. PR
16 PROFESSIONAL REMODELER JANUARY 2006 www.ProRemodeler.com
prx0601doug.qxd 12/21/2005 11:12 AM Page 19
Professional Remodeler
B E S T P R A C T I C E S
L E A D E R S H I P
Doug Dwyer
Contributing Editor
The Power of Written Values
Everyone has values that they hold sacred to run- purpose, not just get a paycheck.
Franchise Recruiters, a North Amer-
ning a moral and ethical business. Why? They can be ican executive search firm, releases an
annual business forecast and trend
motivated by deep personal conviction. Others may analysis based on a survey of franchise
executives. In his 2005 report, Jerry
look at values as a best business prac- we can’t do it all — it takes a team. Wilkerson, president of Franchise
tice. Either way, if you put them in writ- Too many business owners leave the Recruiters, shared a comment from one
ing and integrate them into your com- values of their companies to chance or of the survey respondents, who said:
pany culture, they will produce run them according to the latest fad of “I recently heard business authors Ken
tremendous results. Values help to the day. It is very difficult to build great Blanchard and Rick Warren give a pres-
establish a consistent message to your momentum if we change too often. My entation. It took Blanchard twenty
team and thus, your customers. This decision making is greatly simplified years to sell 10 million copies of “The
leads to building a long-lasting, positive because there are only so many choices One Minute Manager”... It took War-
reputation for your company. I can make to be congruent with my ren 20 months to sell 20 million copies
What are some of the other benefits? company’s code of values. of “The Purpose Driven Life.”
It simplifies your own decision-making After Enron and WorldCom, the Blanchard stops at showing managers
process, guides your staff on how to NASDAQ market requires all compa- what to do; whereas, Warren shows peo-
make good decisions, and creates nies listed with them to have a pub- ple why they should be doing it and
something stable that employees can lished code of ethics. That is a good from where they should be doing it.
count on in an ever-changing business start, but a piece of paper with words This is why your values must be put
environment. on it doesn’t create integrity and a great in writing and you must have a system
For example, our company code of company culture. to integrate them continually into your
values includes the statement: “We We must make our values a living, company culture. If you haven’t done
believe success is the result of clear, breathing philosophy in our compa- this, it is worth the investment.
cooperative thinking.” People with neg-
We believe success is the result of clear,
ative attitudes can kill momentum in a
company. By having this written into our cooperative thinking. People with negative
code of values and reviewing them with
attitudes can kill momentum in a company.
the team often, we educate the staff and
set the expectation that it will take a pos-
itive attitude to succeed. What I have nies. The biggest challenge: We must If you would like to see our com-
found surprising is that some carpenters do our best to lead by example. Then, pany code of values, visit our Web site
have never actually heard that before! when we fail in one area, we must take at www.dreammaker-remodel.com, click
We once had two team members responsibility even in front of our on “About DreamMaker,” then click on
confront a new hire after a couple of team. Notice, I said “when,” not “if.” As “Values.” It may serve as a sample for
weeks on the job. They wanted to make human beings, we are going to make you to put your own code of values into
sure their peer understood that we mistakes. How we handle them dictates writing. PR
believe in a positive attitude, and that the degree of success and loyalty we Doug Dwyer is president and chief steward-
this person’s negative attitude was hurt- will have from our team. ing officer of DreamMaker Bath & Kitchen
ing the team. When we can build a cul- American citizens’ outlook on life by Worldwide, one of the nation’s largest
ture that starts to manage itself, it makes and business has shifted. People today remodeling franchises. He can be reached at
everyone’s job easier. As the leaders, want to be associated with a place of [email protected].
www.ProRemodeler.com JANUARY 2006 PROFESSIONAL REMODELER 19
prx0601coverstory.qxd 12/23/2005 11:21 AM Page 26
cover story
Contract
Is yours in good shape?
By Alicia Garceau
Contributing Editor
A contract is never complete.For remod- one for all the specialties, which would be the siding, win-
elers, who are used to projects with a beginning dows, decks and sunrooms, one for kitchens and baths,
and end, that can be a difficult concept to and probably one for additions,” he explains.
accept, says Tom Cooper, who teaches a con- At a minimum, remodelers should amend their con-
tracts course for NAHB. tract as new laws are handed down and when language
“Because situations change, laws change and because revisions become necessary. Paul Montelongo, an indus-
of things we haven’t thought about [yet], we continually try consultant and former remodeler from San Antonio,
revise these documents,” says Cooper, a professor emer- Texas, also advises an annual review of the contract to
itus of building science at Alabama’s Auburn University. make sure the document is in top shape.
“Document preparation is a process and not an event.”
John Fiderio, owner and operator of Meriden, Conn.- Where to begin?
based Fiderio & Sons, agrees. As his full-service remodel- Don’t start by looking in the business form aisle at the
ing business evolves and market conditions fluctuate, he office supply store.
responds accordingly. “I saw a guy a number of years ago who pulled a con-
“We’ve been in business since 1983, so it’s something tract off the shelf at a stationery store and spent most of
that we’ve added and modified as we’ve gone along his time making the logo pretty so the contract looked
based on things that have come up,” he says. “As a mat- nice,” says Van M. White, a Portland, Ore.-based attorney
ter of fact, we’re in the process of doing a major rework who practices construction law.
on our contracts.” Unfortunately, it had some ugly language that came
After recently attending a seminar on contracts, Fide- back to haunt the remodeler: For example, it said the con-
rio decided to create multiple contracts that would be tractor would build to the completesatisfaction of the prop-
scope-of-work specific. erty owner. That kind of talk can make for a mighty long
“We’ll probably end up with three different contracts — punchlist and postpone closeout.
26 PROFESSIONAL REMODELER JANUARY 2006 www.ProRemodeler.com