Is Your Business Ready For The Expected Surge In Remodeling Spending?
Remember back in 2006 before the great recession how much work there was for remodelers? Remember how busy you were and how easy it was to sell your services? And, back then, there was a good supply of experience workers and subcontractors. Then the recession came and things changed forever. Well, the remodeling economy has become healthy again and is predicted to get even better for the next year. According to one article in Qualified Remodeler magazine the Harvard Joint Center for Housing Studies predicts an 8% increase in remodeling spending between now and the end of 2017. That means a lot more work for remodelers, but only if they and their businesses are ready for it.
Below are three things to consider if you want to be ready to take advantage of the surge in sales predicted to begin in the first quarter of 2017. How you address the third one could make or break your ability to take advantage of the surge.
Decide what your price point will be:
When demand for services picks up so does the market price for those services. If you have been selling on price and as a result haven’t been making enough money to live the lifestyle you desire, both today and when you eventually retire, now is the time to start charging more. And, in addition to raising your prices, be careful how much work you say yes to. The point here is to make sure you don’t pre-sell a whole bunch of work at your current margins. If you do you will prevent your business from being available to sell and complete work when demand and therefore job prices rise due to supply and demand. Although having a good backlog of work can be comforting, coming to realize you could be making a lot more money may lead to strong regrets. Also, keep in mind that material and subcontractor costs will also climb due to supply and demand. Make sure you estimate direct job costs based on when you will actually do the work, not what it would cost if you were doing it today.
Related article:
Why Building a Backlog of Work Could Cost Some Contractors a Lot of Money
Be selective about customers and job types
The surge in spending will lead to a surge in job leads. This will afford remodelers the opportunity to be much more selective about who they will allow to become customers as well as what job types they will accept from those customers. Remember, the customers you serve will be sending you referrals. Those customers hang around with other people just like them. If you work for customers who beat you up on price and micromanage how you do business, their referrals will likely want to do the same. To avoid working for the wrong customers first define the profile of your target client. Then, armed with that information, make sure you also have a great prequalify process to help you filter through you leads. When it comes to job types be selective there too. If you have been doing so I suggest you stop allowing customers to buy their own materials. It may save money for them to do so, but at the same time it costs your business if you cannot get any margin on those materials. Instead concentrate on material intensive project types like kitchens and baths. Earning gross profit by selling more and more expensive materials is much easier than trying to do so by selling and managing labor.
Related article:
25 Sample Questions Contractors Can Use For Prequalifying Prospects
Get your production resources ready
Selling the work and selling it at high margins is one challenge. But in my option that’s a much easier challenge these days than trying to find and keep enough quality production staff and trade subcontractors to keep up with the work, and complete it with quality. Don’t wait until you already need the help to start looking for them. Instead, recruit good workers now and test them out to be sure they are right for your business and your business is right for them. During the winter months many employees are let go or laid off by contractors who lack good sales and marketing skills. This makes the winter a good time to look for prospective employees because there are more to choose from and because their options of available jobs are limited. Use the next few months to vet out the good ones and send the underperformers back out looking for jobs. Using this strategy it’s likely you will be able to produce the work you sell much easier while your competition has to do the best they can with the workers you passed up and or let go.
Related article:
Afraid To Hire Employees For Fear Of Running Out Of Work For Them?


Small business owners usually cringe at the thought of tax season. They are busy enough with their daily operations that they don’t want to spend all of the time and energy getting ready to file on time. They also may dread of thought of paying more in taxes than they feel they should. While small business owners cannot avoid taxes altogether (even though they wish they could), they can take some steps now to avoid the hassles that typically come at tax time.
Even if you are diligent about keeping receipts, a
Categorizing expenses
LED or light-emitting diode has revolutionized light installations. This type of
Then you will need to look at the LPW or lumens per watt. Put simply, this is the amount of lumens produced for every watt that is used. The higher the number, the better it is in order to match the CCT or the correlated temperature (measurement of coolness or warmth) measured in kelvins (K). It indicates whether a light is warm, neutral or cool white in appearance. Finally, you have to compare the CRI, with a higher rating a better choice, that is, greater than 80 is rated as good and greater than 90, very good.
Are you pretending to be a remodeling business owner but in reality you are actually just a "job owner"? The questions below are tough and may make you feel real bad about yourself depending on how you answer them. But that’s not why I assembled them. Don’t kid yourself. If you are not cut out to be a business owner recognize that reality now. Don’t wait until you lose you all your money, your home and maybe even your family. If being in business is not your calling keep in mind the industry is desperate for good employees. Real remodeling business owners offer good jobs with great pay and benefits. Answering these questions might just be the best thing you do for yourself this year.
Are you one of those business owners who doesn't know the difference between markup and margin, or worse you think they mean the same thing (WAG)?
Contractors tend to have a practical approach to their work, and in a competitive market with many moving pieces and complicated projects, investing in the latest technology can help good contractors do their work better. In fact, 75 percent of small to mid-sized construction firms in North America have used a mobile device for work. Like any good tool, using mobile technology can make construction more efficient, accurate and cost-effective. Here’s how:
3. Tracking Equipment
Streamline processes with mobile apps and automatic notifications. Virtually eliminate data entry with mobile time clocks and job write ups. Use BIM software or a simple photo sharing strategy to ensure that your work is approved by the client at all times. This improved communication process will result in less reworks, which saves both time and money. That way you can save the company’s bottom line for the really important stuff: getting the job done right.
Installed below the countertop, undermount-style sinks offer consumers an easy cleanup in the kitchen and a seamless look. However, contractors should know that this style of sink can only be used with solid-surface kitchen countertops, such as granite, composite or marble. Undermount sinks are an affordable option, and like drop-in sinks, these are available in a variety of different materials — like enameled cast-iron — for example, and colors to fit a kitchen’s design.
Bamboo
In manufacturing, the supply chain is extremely important. The supply chain is the total process from inception to customer care, including suppliers, marketers and the title company that assists in closing. In construction, this is project management and some e-commerce sites use its unique issues as the driving message. An e-commerce supply chain site will be broken down into specific topics of project management. One section may have a supplier and a shopping cart for these items. Another section would have human resource information and your services listed. The idea is that the website will guide a user through the entire breadth of project development.
The real returns on investment are the benefits they’ll experience as soon as the remodeling project is done. That’s what they’ll be paying for. As soon as they’ve realized that the benefits make the cost worth it, you can then tell them that as a bonus, they can recoup a good part of their investment when they sell their home in the future.

Though going above and beyond with the project at hand is usually the No. 1 priority for contractors, creating and cultivating client relationships follows closely behind in position No. 2. Any business owner and manager knows that building and maintaining great relationships with clients — otherwise known as relationship marketing — is key to a company’s success. Many companies, however, do not employ a dedicated customer relationship manager (CRM). But that doesn’t mean relationship marketing should be pushed to the wayside. We’ve gathered four tips on how you can help cultivate positive relationships with clients right now:
Another best practice is to treat every client like your 

Yes, becoming a real Design/Builder will be an evolution of change, if you are willing and able to commit to making the changes. The changes will not be easy and will require getting out of your current comfort zone to gain new experiences and results.
Trust is earned. If you do Design/Build well with some clients they will come to trust you and will then let those they refer you to know you and your process can be trusted.





