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2019
CALL FOR
ENTRIES
Honoring the finest
remodeling projects in
the nation
Entries for the 2019 Chrysalis Awards
are now being accepted.
All entries must be in a digital format this year.Complete information is available at ChrysalisAwards.com.
DEADLINE: Entries must be received by ENTRY CATEGORIES: A complete list and description
March 30, 2019. This deadline may be extended. of the categories can be found at ChrysalisAwards.com
and on the entry page. Entry categories include several
ELIGIBILITY: Projects completed after January 1, 2016 price ranges in almost every aspect of remodeling.
are eligible for the 2019 program. This includes previous
Chrysalis entries that did not win a Chrysalis Award, as ENTRY FORMAT: You can create your entry on the
well as entries from other competitions like the Master Chrysalis Award Entry page, or submit any digital entry
Design Awards. from another remodeling competition without change.
WHO MAY ENTER: Any remodeler, architect or design THE CHRYSALIS WEBSITE: You will find complete
professional in the United States. Chrysalis is open to information at ChrysalisAwards.com. You can also see
everyone. There is no requirement to be a member of all the winning projects since 1998. This site promotes
a specific professional organization to enter. winning Chrysalis projects to the industry and public.
We are available to answer any questions at
info@ChrysalisAwards.com or 888.263.5687
Winners will be featured in our publishing sponsors’ magazines:
QualifiedRemodeler.com March 2019 From the Inside Out § 30 Roofing Product Trends § 42 What About Your Profit? § 50 Builders’ Show Review § 56
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CONTENTS March 2019
PROJECTS ENTREPRENEURSHIP
26 The E-Myth
Photo (here and cover): Roman Rivera Photography, romanrivera.com
Transformation
A look at a proven method for making
a quantum-leap change in your home
remodeling business.
by Michael E. Gerber
PROFITS
14 On Your Business
Shawn McCadden, CR, CLC, CAPS
18 Technology: Business Apps
20 NARI Recertification
22 NAHB Remodeler of the Month
66 Top 500 Profile
PRODUCTS
42 Trends: Roofing
56 What’s New: IBS Review
30
58 Kitchen & Bath: KBIS Review
60 Barn Door Hardware
62 Remodelers’ Choice
Design Solutions DEPARTMENTS
Synapse Construction reimagines a stucco residence in Seattle to address water 6 Editorial Director’s Note
infiltration and establish a permanent solution for rain management. 8 In Brief
12 What’s Online
64 Events/Index
Photo: Allie Mullin
50 What About Your Profit?
Dave Yoho
53 Can Anybody Sell When
Given a Process?
Scott Siegal
54 Products
36 SHARE: facebook.com/QualifiedRemodeler
FOLLOW: twitter.com/QualifiedRemod
Designer’s Notebook DISCUSS: tinyurl.com/QRLinkedIn
An outdated master bathroom becomes refreshed and modernized as its configuration,
functionality and lighting are thoughtfully reconsidered. INSPIRE: instagram.com/QualifiedRemodeler
QualifiedRemodeler.com March 2019 5
EDITORIAL DIRECTOR'S NOTE
Shifting Gears:
Here Come the
Published by
Millennials SOLA Group, Inc.
1880 Oak Ave., Suite 350
Evanston, IL 60201
847.440.3000
Publisher and Patrick L. O’Toole
Patrick L. O’Toole Editorial Director Patrick@SOLAbrands.com
Ext. 103
Senior Editor Kyle Clapham
Kyle@SOLAbrands.com
Ext. 107
SINCE THE LATE 1960s, baby boomers levels of house-price gains and slower gains Managing Editor Kacey Larsen
Kacey@SOLAbrands.com
have seemingly dominated every aspect of in home equity. In addition, we are seeing Ext. 105
American life. They were the free spirits who the long-awaited emergence of a new pro- Contributing Editor Chuck Ross
flocked to Woodstock, then cut their hair, fessional remodeling client: the millennial. Audience Development Mike Serino
got a MBA and morphed into young, urban They have been a long time coming. Mike@SOLAbrands.com
professionals. That progression took them Leading-edge millennials, born roughly Creative & Production Director Tracy Hegg
Tracy@SOLAbrands.com
from Ford Pintos in the early '70s to BMWs between 1981 and 2000, should be well into
Senior Graphic Designer Erika Nygaard
in the '80s. their home buying and remodeling years, but Erika@SOLAbrands.com
The same goes for the housing market. due to high levels of debt and other factors, Editorial Advisory Board Stephen Gidley, GMB, CAPS,
Today baby boomers—now in retirement they are just getting started. The reason mil- CGP, CGB, CGR, CPRC, CR
Jeffrey Holloway, CKD, CBD, CGR
or fast approaching it—are aging in place, lennials get so much attention is because at Michael Nagel, CGR, CAPS
remodeling second homes and downsizing 83 million strong they, like the baby boom- Scott R. Sevon, CGR, CAPS,
GMB, CGP, GMR
to a place in Arizona or the Carolinas. ers before them (who once numbered 78 Donna Shirey, CGR, CAPS, CGP
Born between 1946 and 1964, baby boom- million), have an outsized influence on just Kenneth P. Skowronski, CR
ers still dominate the re- about every aspect of Publisher/ Paul DeGrandis
modeling market. They American life. West Sales Manager Paul@SOLAbrands.com
Ext. 100
have the money, the They are not quite
wealth and the means for WE ARE SEEING true digital natives, but
Midwest Sales Manager Zach Stenberg
Zach@SOLAbrands.com
THE LONG-AWAITED
Ext. 115
all of the discretionary they are very adept and
Midwest Sales Manager David Ayala
upgrades that have been comfortable making big
EMERGENCE OF A
David@SOLAbrands.com
driving the remodeling purchases online— from Ext. 119
market in recent years. cars to vacations and,
NEW PROFESSIONAL
East Sales Manager Dan Miklosz
DanM@SOLAbrands.com
Now comes an in- yes, remodels. Some of Ext. 118
flection point in the
remodeling market, say
REMODELING CLIENT: you who are reading
this are lucky enough
Southeast Sales Manager Dan Agostinacchio
Dan@SOLAbrands.com
the very smart folks at THE MILLENNIAL. to be attending our TOP
National Automotive Sales
Ext. 101
Tom Lutzke
John Burns Real Estate 500 LIVE! conference, TLutzke@ACBusinessMedia.com
Consulting (JBREC), which is headlined by Product Showcase Mike Serino
who have been providing analysis and fore- a true millennial expert, Scott Hess. You Mike@SOLAbrands.com
Ext. 102
casting of remodeling in recent years. After will also hear from 32-year-old Jeff Gear, a Digital Programs Manager Tim Steingraber
a 10-year expansion of the economy, we are western Illinois remodeler who is generat- Tim@SOLAbrands.com
Ext. 106
now contemplating a natural business cycle ing most of his leads for new business from
Projects Manager Heidi Riedl
in the coming years and trying best to gauge advertising on Facebook and Instagram. The Heidi@SOLAbrands.com
the implications for remodelers. big news is that a big percentage of his clients Ext. 111
The good news is everywhere, but that are buying home improvements online. In Subscriptions QR Circulation Dept.
(866) 932-5904
does not mean the market is not shifting. many cases, Gear says, the first time they QualifiedRemodeler@omeda.com
This year, into 2020 and beyond, JBREC meet in person is the day of installation. The
forecasters see a slower growing remodel- influence of millennials on the remodeling
ing market: 3 percent annually versus the 10 market has taken hold. Remodelers with a
percent the market is said to have achieved long-term focus on the business are making
in 2018. A big reason for the slower growth plans around this cohort.
is a shift in remodeling project sizes.
This “mix-shift,” as JBREC calls it, is A preferred publication
of the National Association of the Remodeling Industry
due to a number of factors including lower and the NAHB Remodelers
6 March 2019 QualifiedRemodeler.com
For more info circle 61
IN BRIEF
Remodeling Outlook
Market Grew 10% Last Year;
3% Growth Expected for ’19
THE REMODELING MARKET was red-hot Burns Residential Repair and Remodel Spending™
in 2018 and will continue to grow in com-
Small-project discretionary Big-project discretionary Disaster repairs
ing years, according to a new forecast from
$450
John Burns Real Estate Consulting (JBREC).
10% $400.9 $404.1
According to the forecast, the remodeling $400 $377.9
$389.8
market grew 10 percent to an estimated $378 $345.1
billion last year. Fewer disaster repairs and a $350
REMODELING SPENDING, $BILLIONS
shift in project mix to smaller job sizes, how- $303.8
$300 $284.9 $270.5 $282.4
ever, will impact the rate of growth in 2019 $265.4
$247.1 $237.3 $240.3
as the market passes the $380 billion mark. $250 $233.1
$215.0
The forecast was delivered at a spe-
$200
cial Qualified Remodeler research event
held Feb. 20 in conjunction with Design & $150
Construction Week in Las Vegas. According
to JBREC CEO John Burns, the remodeling $100
market is experiencing a shift in demograph- $50
ics. Baby boomers are driving large discre-
tionary projects, while the nation’s largest $0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019P 2020P 2021P
cohort—millennials—are starting to enter Note: Includes labor and materials
the market, but with smaller budgets.
The JBREC presentation also pointed out lenders are focused on offering HELOCs; onment of rising mortgage interest rates,
that, of six indicators of remodeling industry and 4) home-price appreciation—solid, but which is having the effect of incenting
vitality, four are positive: 1) Aging housing expecting to slow. Two negative indicators homeowners to stay put rather than move.
stock—65 percent of the nation’s homes are slower volumes of existing-home sales The company estimates that approximate-
are 30 or more years old; 2) real income and a continuing labor shortage crisis. ly 700,000 additional remodeling projects
growth—signs all workers are seeing bigger Another big factor in a positive re- will happen this year, and in coming years,
paychecks; 3) home equity lending—more modeling outlook, Burns says, is an envir- as a result.
Green Building Seventy-eight percent of remodelers, Energy efficiency, indoor air quality are
87 percent of buyers, and 89 percent of top ‘green’ preferences
Consumers willing to builders say it was a “very high" or "some- A separate study of new and prospective
homebuyers finds that when buyers think
what high priority” for their new home or
pay more for energy- remodel to be energy efficient. of a green home, they think of features that
efficiency upgrades Eighty-one percent of remodelers, 88 per-
will first save energy and second improve
the quality of the air in a home.
New research finds that a large majority of cent of buyers, and 96 percent of builders The survey—conducted by NAHB of
residential customers—who are driven by state a willingness to pay more to make 4,000 people—finds that to achieve their
cost savings and environmental impact— their building or remodeling project more energy-efficiency goals, buyers seek windows
are prioritizing energy efficiency in home energy efficient. and appliances that are Energy Star-rated,
projects and are even willing to pay more to Roughly 90 percent of professional build- efficient lighting and insulation higher than
achieve those energy goals. ers and remodelers report that clients required by code.
The research—conducted by Washington- In terms of indoor air quality features,
“always" or "sometimes” ask about ener-
based trade group Propane Education & more than half of the respondents deemed
gy-efficient construction methods.
Research Council—found many homeown- the following to be "essential" or "desirable": a
ers and contractors now seek energy-efficient Two-thirds of construction professionals home dehumidification system, an electronic
homes. Also, it revealed that construction expect the demand for “green,” sustainable air cleaner, and building and finishing ma-
professionals anticipate “green” homes to see or energy-efficient homes will “significant- terials that have low volatile organic com-
substantial upcoming growth. ly increase” over the next five to 20 years. pounds (VOCs).
8 March 2019 QualifiedRemodeler.com
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“It’s confirmation that the most attractive Excellence. To view the regional winners and “Laidley Cottage” were architects Red
green features for homebuyers are those that learn more about attending NARI’s Evening Dot Studio and MT Development. Photos
help them save money on energy costs, as of Excellence, visit NARI.org. of both winning projects can be found at
well as those that improve air quality inside At Design & Construction Week last bestinamericanliving.com.
their homes,” says Rose Quint, AVP of survey month in Las Vegas, two remodelers were
Qualified Remodeler’s Master Design
research with NAHB. honored with national Best in American
Awards open for entries
Living Awards (BALA). Room of the Year
Now in its 41st year, Qualified Remodeler’s
honors went to architect KD Project Design Master Design Awards program has started
Industry Recognition
LLC, JM Kitchen and Bath, and Malibu accepting entries. The program recognizes
Remodeling for their “Modern Classic” up-
Design awards date of a 1978 custom home in Greenwood
remodelers, architects, kitchen and bath
specialists, and other professionals for out-
take center stage in Village, Colorado. standing project design and construction in
“This kitchen remodel uses contrasting
remodeling industry colors in a visually beautiful way that also
22 different project categories—from kitch-
ens and baths to room additions and whole-
Spring is not only the start of the remod- defines the different work and use zones house remodels.
eling industry’s busy season, it is also a in the room," says Don Ruthroff, principal The competition is open to projects
time when remodelers find out how their at Dahlin Group Architecture Planning, completed between Jan. 1, 2016, and July
projects fair in regional and national de- NAHB's 2018 Judging Chair and 2018 Best 8, 2019. Previous QR Master Design Award
sign competitions. Hundreds of companies in American Living Awards Subcommittee winning entries may not be re-entered. A
were recently notified of their regional CotY Chair. "The BALA program celebrates the single project may be entered into more
(Contractor of the Year) awards from the designers and builders who go the extra mile than one category if each entry meets the
National Association of the Remodeling to bring out the best in a structure.” appropriate category standards. (For exam-
Industry, (NARI). National winners will be BALA’s “Remodel of the Year” went to a ple, you may enter a whole-house remodel
announced on April 12, 2019, in San Diego rear-yard cottage remodel in San Francisco. in the whole-house category and then enter
as part of the association’s annual Evening of Honored for their redo of a project dubbed the kitchen in the kitchen category as well.)
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10 March 2019 QualifiedRemodeler.comEntries in the Chrysalis Award and/or CotY Black is the new chrome: Consumers government that was delayed due to the par-
Award digital formats are accepted. To learn are gravitating toward chic black and tial government shutdown.
more go to MasterDesignAwards.com. black matte finishes for faucets and sinks, Multifamily starts fell 20.4 percent to a
with searches for these products tripling seasonally adjusted annual rate of 320,000
year-over-year. units, while single-family production post-
Consumer Trends ed a 6.7 percent decline to 758,000 units.
Many shades of gold: Gold-toned faucets
and fixtures are growing in popularity. However, single-family and multifamily
Design trends research In addition, shoppers are exploring rose starts each posted a yearly gain. Single-
gold finishes to complement both classic family production was up 2.8 percent in 2018
Online home goods retailer Wayfair recently
and contemporary styles. to a rate of 872,800—the highest annual fig-
released the results of its analysis of thou-
ure since the Great Recession.
sands of search trends in order to see how Neat and tidy: Floating vanities have "Looking ahead, we expect single-family
consumers are embracing new styles and doubled in popularity in the last year, as production will be relatively flat in 2019 and
designs as they renovate their kitchens and shoppers seek space-saving options that multifamily starts will level off as well," says
bathrooms. The latest trends include: offer a clean, modern look. NAHB Chief Economist Robert Dietz. "The
Farmhouse frenzy: Searches for “farm-
biggest challenge facing builders this year will
house” fixtures have quadrupled in the be ongoing housing affordability concerns as
last year, with sales of farmhouse sinks Housing
they continue to grapple with a shortage of
alone nearly doubling year over year. construction workers, a lack of buildable lots
Set in stone: Searches for concrete fur- Housing starts fall and excessive regulatory burdens."
niture and decor is up overall 50 per-
cent year-over-year. Concrete sinks are
11.2% in December Regionally in December, combined sin-
gle-family and multifamily housing starts
unique, durable and versatile, and come Housing starts fell 11.2 percent in December were unchanged in the Northeast. Starts
in various sizes, styles and tones for a true to a seasonally adjusted annual rate of 1.08 fell 26.3 percent in the West, 13.2 percent in
statement piece in the kitchen. million units, according to a report from the the Midwest, and 6 percent in the South.
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QualifiedRemodeler.com March 2019 11WHAT’S ONLINE
Remodelers’ Outlook QR on Social Media
Optimistic for 2019
We love connecting with remodelers and home
improvement pros, so come find and engage with
us across our various social media channels!
Firms (%) Expecting Year-Over-Year Changes
in Revenue and Profit in 2019
Increase Expected Revenue Change Expected Profit Change
Decrease
49% 46%
Architects
18% 20% Our editors were on
Interior Designers
74% 70% the ground in Las
6% 9% Vegas during Design
GCs/Remodelers/Builders
71% 63% & Construction
7% 11%
Week.
72% 66%
Design-Build
7% 9%
Specialty - Building & 73% 66%
Renovation 8% 11%
Specialty - Landscaping & 75% 66%
Outdoor 7% 10%
73% 69%
Specialty - Decorating
5% 9%
© Houzz Inc.
The 2019 Houzz State of the Industry indicates overall more than half of companies
specializing in residential renovation and/or design cite a positive outlook for 2019.
How do remodelers feel specifically? Find out here: QualifiedRemodeler.com/
2019-houzz-state-of-the-industry/.
View from up top,
Most Popular Products looking over Las
Vegas, in the Apex
These products had the most views in recent weeks. Social Club at a
To learn more, go to QualifiedRemodeler.com mixer.
and search the product or company name.
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The John Burns Real
Estate Consulting
team presented their
2019 Remodeling
Outlook.
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For more info circle 65ON YOUR BUSINESS
Can or Will You
Ever Retire?
by Shawn McCadden, CR, CLC, CAPS
SADLY, MOST REMODELING business own- means no one will be around to make good Find Other Sources of Income
ers will either never retire or will eventually on warranty work. In addition to charging enough money as a
shut down their business after their physical Ask yourself if you've been concentrating remodeling business owner so you can save
and/or mental health fails. I don't think they on larger projects, and whether you’ve had a for retirement, I suggest you also find ways to
plan for it to happen that way. The fact that new one start as you close out another in or- help your savings grow. Of course, you could
they never proactively planned for retire- der to help keep the machine going, overhead save that money and earn interest and per-
ment is probably the most common reason expenses down and cash flow healthy. If that haps invest it in the stock market. Those are
they never will be able to do so. is the case, trying to close your business down wise options for most people. I also suggest
How about you? Will you be able to retire as you wrap up a last project could eat up lots you consider additional streams of income—
someday by your own choice and planning? of your savings. On the other hand, you could both now as you save for retirement and for
Or will you plan to work until you either can't transition to all subcontractors, or you could after you have already retired.
anymore, or you die? I do admit when I ask, purposefully reduce project size as you near I invested in rental properties and raw
there are many remodeling business owners retirement so even if all your staff is gone—as land. The rental properties carried themselves
who say they want to work until they can't. long as your health is still good—you could through the rents tenants paid and, now that
Having that choice is one of the great things wrap things up yourself. If this is your plan, it the tenants have paid the mortgages, I own
about being a business owner in America. might be a good idea to keep your retirement many properties outright. I can both keep
a secret until you’re actually retired. them and collect the rents, or I can sell them
and spend the equity on my retirement. The
Are You Contributing to Your Retirement raw land has appreciated over the years and is
I TRULY BELIEVE MANY or Your Clients’? likely to keep doing so. If I need or want more
REMODELERS WILL I truly believe many remodelers will never be
able to purposely retire because they simply
money in retirement, I could sell some of it. If I
die before I need the money, it’s great to know
NEVER BE ABLE TO can't afford to do so. By guessing at what my kids will be well off. Either way, I won't be
to charge and never understanding how re- looking to them to pay my bills in retirement.
PURPOSELY RETIRE. tirement planning or remodeling financials One last thing: If I have been describing
work, they undervalue their services and, you here in any way, I ask you to think about
therefore, work for not much more than the the real reasons you might never be able to
On the other hand, I have a suspicion wages they need to just get by. retire. Maybe you just need the right kick in
that many of those who claim they want to Many other remodelers are afraid of your butt to change your view and attitude.
work until they can't simply say so because money. They are afraid to ask for it, afraid to If reading this article hasn't done it for you,
they have no idea how retirement could be talk about it, and many even feel guilty about consider sharing it with your other half—
possible for them. If you are looking for some earning a real good living. If I am describing your spouse or partner. If you have the guts
insight on how retirement can be a reality, you here, I suggest you decide whether you to do so, you may either get help confirming
read on for some advice and suggestions. should start charging enough so you and your it just can't happen, or perhaps someone will
This article isn't all-inclusive and won't make other half can retire, or if you will save your give you the kick you need.
it happen for you, but it could help you get clients a lot of money so they can still afford
things moving in the right direction. to hire you to work for them after they retire. McCadden is a speaker, business trainer,
When those customers tell you that you're columnist and award-winning remodeler with
This Is a Tough Business to End too expensive, remember everything is rela- more than 35 years of experience. He can be
One important consideration about retiring tive. Perhaps you're just too expensive because reached at shawnmccadden.com.
is that, unless you can sell your business to they are watching and budgeting their money
get away from it, you may need to close as they save for their own planned retirement.
your business down to do so. Keeping staff Are you doing the same watching and budget- UPCOMING TOPICS
in place until you close your doors may be ing, or will you simply make excuses for why APRIL: What Not to Tolerate
challenging or impossible if they get wind retirement is not an option for you? Think of MAY: Costly Mistakes in Booming Era
of your plans. Customers may not want to that the next time you price a job or offer to do JUNE: Remodeling 'Schema'
work with you if closing your business down all the work of preparing a proposal for free.
14 March 2019 QualifiedRemodeler.comBEFORE OWNERS CREATE A LOOK INSIDE THE HOME, B U I LD ERS M UST CRAFT A SHUTTERS + ACCESSORIES
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For more info circle 67TECHNOLOGY
Beyond Calls and Texts
Smartphones on jobsites are a common sight. Beyond being used for just
communication, put them to work with our roundup of six business apps.
by Kacey Larsen
“THERE’S AN APP FOR THAT” is becom- than 1,300 apps are added daily.
ing a more common refrain these days. With this background, the question be-
According to the recent Business of Apps comes: How might some of these apps help
“App Stores List 2018” article by Artyom you with your business? Here, our editors
Dogtiev, there are 3.3 million Android apps compiled a list of six apps we thought might
available through Google Play and 2.2 mil- prove useful in supporting your remodeling
lion iOS apps on the App Store. If you have business with your cellphone. [Note, we tried
a smartphone or tablet, it likely came with to limit this list to app-only tools, leaving
a handful of apps pre-installed, but which off any software or programs with app sup-
apps have you since added perhaps? Clearly, porting tools.] Let us know your thoughts,
there are plenty of options to choose from, especially any of your favorite business apps,
especially if you consider the idea that more on Qualified Remodeler’s Facebook page.
Photo Measures
To accurately keep in mind a project’s layout, dimen-
sions, sizes and/or angles, take photos within the Photo CamScanner
Measures app and draw dimensions directly onto the
photos. With the ability to zoom in and out of photos as Turn a smartphone camera
needed for further precision, the app also allows text to be added—in into a portable scanner with
case measurements aren’t enough context. Photos can be organized by this app that allows users
category within the app as well as exported as PDFs or JPGs by email, to scan, crop and share
to a photo album or automatic synchronization with Dropbox. documents—such as receipts, invoices,
business cards and more—from on the
The Photo Measures app costs $6.99 and is available only in the App road. CamScanner’s auto-enhancing and
Store for iOS devices. smart cropping ensure text and graphics in
scanned documents look clear and sharp.
Annotations can be added onto documents
using a set of editing tools in the app; cus-
tomized watermarks are also offered for
Red Cross First Aid marking documents. Items can be shared in
The app from the American Red Cross aims to help anyone high-resolution JPEG or PDF formats that
handle unexpected emergencies with confidence. Step-by- can be printed wirelessly using a nearby
step illustrated instructions and videos tackle how to care printer via AirPrint; faxed from the app; or
for sprains, strains, broken bones and more. For further shared via email, WhatsApp, WeChat and/
jobsite safety, the app offers additional tips on topics ranging from or via link to other social networks. To pro-
heatwaves to chemical exposures, and its interactive quizzes can test tect any item with confidential contents, a
knowledge and further confidence. A Spanish language toggle is fea- passcode can be set for viewing important
tured within the app. In case of emergency, the app can help locate the documents; a password can also be set
nearest hospital using a device’s location, and emergency services can when sending a download link.
be called directly from the app using a 911 integration. The CamScanner app is free to download
The Red Cross First Aid app is free to download on Google Play and in for Android devices on Google Play and iOS
the App Store or by texting “getfirst” to 90999. devices in the App Store.
18 March 2019 QualifiedRemodeler.comAT T E N T ION GE N E RA L C ON T RAC TOR S
THE NEXT
RECESSION
IS GETTING
CLOSER
Do you want to...
Get creamed (again)?
Painfully survive (again)?
Thrive?
it reallY is
your choice.
Tear here
PROSPERING DURING THE
ONCOMING RECESSION
An Important Workshop for General Contractors Only
Learn the 5 essential business adjustments every GC must make now. Not
general advice but concrete steps and how to do them. Not magic but
Building better real business techniques proven far and wide by professionally managed
business owners. businesses.
“I made an additional $4,000 in profit on the first contract I signed after attending this workshop.”
-Andy Steinborn Tajo One, Las Vegas, NVPROSPER THROUGH An important one-day business event
THE NEXT RECESSION for General Contractors
No one knows for sure, but almost all expert opinion and Here are some of the things you will learn at this
economic indicators suggest the next recession is coming workshop for General Contractors:
sooner rather than later. You must learn specifically how to n You will receive a customized strategy to
implement changes now that will build a protective shield increase your profits while insulating yourself
around your business. from the oncoming recession
This workshop will bring clarity and implementable tools to n Which GC business segments can best prosper
how to protect your business from the oncoming recession. during a recession
You don’t have to stand by and watch your business and n How to keep more of every revenue dollar
family be hurt. You can’t wait until it hits the fan — once the without raising your prices
run-up to a recession starts it is too late!
n Learn how to generate a different type of lead
And here is some great news: the business knowledge that is recession proof
and adjustments needed are mostly the same moves you n A new pricing strategy for better profit now and
should make to generate exceptional profits while reducing an easier time in the next recession
workload and stress.
n How to avoid bad jobs now and under the
pressure of a declining economy
n Learn three things you are doing now that may
$295 per company seal your fate in a bad economy
up to four attendees n Learn the four types of recession and how each
affects the GC business
Includes lunch and materials for all owners and senior
managers on one ticket (up to four attendees). Scholarships
available to qualified businesses while they last. Fellow You’ll also receive a
NAHB & NARI members receive exclusive discounted tuition.
Call for details. Profit Road Map & Recession
Vulnerability Analysis
REGIST E R O N LI N E
This Aspire workshop package includes a report
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to increase your profit and position your business for
REGIST E R BY P H ON E
prosperity regardless of a bad economic period.
888-302-3025
CO MI N G IN 20 1 9 TO T H E FO LLO W IN G LO CAT IO N S
Austin • Dallas – Ft. Worth • Denver • Houston • Las Vegas • Los Angeles • Phoenix • Portland • Sacramento
Salt Lake City • San Antonio • San Diego • San Jose • Santa Barbara • Seattle
See current workshop schedule on our website theaspireinstitute.com/events
“Aspire helped me “I learned where my profits
substantially increase my were leaking and increased
gross and net profits. If you’re my margin by 10% after We are a well-established educational,
coaching and consulting firm focused
a residential builder, put your applying what I learned in this exclusively on serving Residential General
doubts aside and attend this class.” Contractors. Learn more about us at
TheAspireInstitute.com.
workshop with everyone on Allen Proctor
your business team.” Proctor Construction
Prescott, AZ
Harry Poehlmann
Poehlmann Construction
Fort Collins, CO
Tear hereA GOOD EDUCATION STARTS
GasBuddy
WITH A SOLID FOUNDATION
Because the price of fueling up
a fleet of company vehicles (or
even one or two) can add up
quickly, the GasBuddy app helps
find the best gas prices based on location.
Using its robust community that reports
on prices, stations and distances, the app
updates its price information in real-time and
provides the option to read and review sta-
tions. App users can earn points and achieve-
ments for involvement within the GasBuddy
community—win gas cards and be entered to
win free gas the more you use the app.
The GasBuddy app is free to download on
Google Play and in the App Store.
GenieBelt
A real-time project management
productivity tool, the app allows The National Remodeling
users to report progress, chang- Foundation Scholarship Fund
es and/or problems. Assign and
could give you up to $2,000
track tasks within the app—including task
descriptions, start and end dates, and more. for your education!
Photos and comments can be added to illus- Our mission is to provide support to people
trate any points or potential issues. Designed who wish to advance their professionalism
specifically for construction workers, the app
through education in fields related to the
can create daily progress reports, which can
remodeling industry.
then be sent to all relevant parties. Created
to work seamlessly with the GenieBelt plat-
EDUCATION SCHOLARSHIPS WILL BE
form, an app user needs to register on the AWARDED TO PEOPLE WHO
GenieBelt website to login.
A. Demonstrate a commitment to the
The GenieBelt app is free to download for remodeling industry,
Android devices on Google Play and iOS B. Show academic leadership and
devices in the App Store. C. Are in need of assistance
Scholarships available for post-secondary remodeling
industry training and education, or NARI, NKBA, NAHB/
NAHB Remodelers, CAE and other industry Certifications.
Handyman Calculator
A complete construction cal-
culator with simple inputs, the
app can calculate materials,
track invoices and time spent,
manage a to-do list and save calculations
to a notepad. In addition to a wide range of
The NRF is a not-for-profit 501
calculator tools—such as a fraction calcula- (c)(3)organization.
tor, board foot calculator, drywall calculator
and job estimate calculator—the app fea-
tures several conversion tools, including a
length, area and weight converter; feet and For more information and to download an application visit:
inches to meter, centimeter, etc., converter; www.nationalremodelingfoundation.org
and a decimal and fraction converter.
Contact us: 847-477-6586
The Handyman Calculator app is free to
download and is available only on Google
Play for Android devices.
QualifiedRemodeler.com March 2019 19NARI RECERTIFICATION
Client Relationship
Management
by Dan Taddei, MS Ed. BCA
YOUR CLIENTS ARE the lifeblood of your Past Clients a monthly or quarterly email that updates
company. Your ability to find new clients, Past clients are future clients with whom your current and past clients on what is hap-
manage current clients and stay connected you already have a successful relationship. pening in your business, tips for winterizing
to past clients will define your company’s The communication task with past clients their home or preparing for spring. Include
success. In client management, we consider is to keep your name top-of-mind, so when any services that you might provide to help
three types of clients: future clients, current they have a remodeling need they will call with such projects.
clients and past clients. you first. They may know you for the great Producing a newsletter on top of your
Regardless of the type of client, they all kitchen you did, but do they know you also regular responsibilities can be a challenge.
have unique communication requirements do additions, baths and decks? The commu- There are marketing firms that provide
and opportunities, which should be tailored nications to these “prospects” need to cre- newsletters as a service. You just provide
to the needs and wants of that specific group. ate awareness of the services offered beyond relevant content highlighting your business
those already provided. The idea is to keep offerings and a list from your database. They
Future Clients these lines open “just in case” a need arises. will fill in the gaps and produce a polished,
Most marketing plans focus on finding the professional final product, which is sent out.
future client. When creating a marketing The Database
plan or developing content, start by deter- Storing information in a database can be in- Blog
mining which type of information you need valuable. It provides a single repository of Blogs, podcasts and vlogs have become in-
to collect and which type of follow-up is information that can be shared across your creasingly popular. These are typically short,
planned once a future client is identified. team as required. A Google search for CRM single-topic messages discussing an area that
Make your company easy to find. Attend software returned a list of 57 solutions with might be of interest to your clients. The key
home shows, place an ad in your chapter’s di- a rating of 4.0 and above. Many are cloud- here is consistency: If you state it will be a
rectory, and be listed on chapter and national based sales management programs allowing weekly blog, make sure it is posted on the
websites. Another way to build awareness is you to collect leads and communicate with same day each week. Podcast and vlogs, to
by branding your company trucks and cars. them on a regular basis. Often they are pro- some extent, are great for clients who spend
Make sure that contact information—office vided on a per-user subscription basis with a lot of time commuting.
phone number and website—is easy to see. prices scaled to the services provided, and
Just as important, plan for what will hap- many offer a free tour or a 15- or 30-day free Website
pen when a prospect contacts you. When a version to test. Before spending money on A company website should be the hub of
lead comes in but does not become a client, one of these apps, sign up for a trial and take these communication efforts. It should link
what happens to that contact information? advantage of online tutorials. A CRM can be to a downloadable copy of your newsletter
While prospects might not be a fit with their an investment, but it will help you organize, and have show notes for your podcast or
current project, don’t write them off; keep manage and scale your contact with clients. vlog (if you have one). It needs to be easy to
them in your database for future outreach. If you have a small list, you may be able navigate and should also have a means by
to use an Excel spreadsheet or Outlook con- which a visitor can enroll in your newsletter
Current Clients tact listing, but these have limitations as you or email list. These are people who want to
Current clients typically require the most grow your data. Eventually you will need to hear from you—be sure they are rewarded
effort. There are many tools that can be used select some sort of client manager. for their efforts.
to manage them. In last month’s column, we Clients are your business, so don’t for-
discussed using technology. But technology Newsletters get them once a project is complete. Keep in
cannot replace clear and timely communica- Sending newsletters to your past clients is touch. This business is relationship-driven;
tion. Set ground rules and define the com- a great way to stay top-of-mind with this you need to maintain that relationship.
munication plan prior to starting the project. group. Sending to your list of “prospects”
On larger projects, revisit how information expands your reach and will create greater
will be communicated before the design opportunity. Newsletters need to have con-
UPCOMING TOPICS
phase begins. Ideally your clients should feel sistent branding, have a professional look
APRIL: Build SOPs for Operations
like they are the only one and you are solely and be regularly scheduled. A simple news-
MAY: Protecting Your Business
dedicated to their project's success. letter can be sent via email. This could be
20 March 2019 QualifiedRemodeler.comExtend your design options with the
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For more info circle 68NAHB REMODELER OF THE MONTH
At the Midpoint KURT CLASON, CAPS
K.A. Clason Fine
Woodworking Corp.
With a plan to strategically grow his business, Clason Ossipee, N.H.
kaclason.com
reflects on the journey to this point and in the future. TITLE: President
YEAR COMPANY FOUNDED: 2006
compiled by Kacey Larsen NUMBER OF EMPLOYEES: 8
Where did your interest in woodworking comradery that you have in the military was one. The classes at Huot are filled, which is
come from? How did you get started? lacking in the civilian world. I first joined great for workforce development! We take
My father had a small shop in the basement our local chapter to give our company rec- the proceeds from the sale of the tiny hous-
and, from as young as I can remember, I ognition, but quickly realized that it was far es to provide scholarships for students who
worked with him in the shop building small greater than that. It is a network of the best will be attending college in the construction
furniture pieces while he restored antique professionals in the area whom I can ask trades, or tool belts for those who will direct-
furniture. My uncle was a high school tech questions, share concerns, gripes and jokes ly head out into the workforce.
teacher, and in his off-time I worked for with. The members of our local chapter, who
him building and remodeling houses while are our competitors, have also become close Are there any takeaways you can share
in high school. I actually went to the United friends whom we can use as a knowledgeable as far as fostering and training the next
States Coast Guard Academy and earned a sounding board if the need be. generation of builders?
degree in engineering. After graduation, I Everything happens locally—all the regional
was fortunate to be selected as an Industrial What motivated you to help re-establish and national programs are great for publicity
Officer. For the following 18 years during my the New Hampshire Remodelers’ Council and possibly funding. However, the impact is
time as an officer, I ran construction crews and recently serve as the council chair? at the local level. The kids get to work with
repairing and rebuilding lighthouses and I heard that years ago, the Remodelers’ builders during the all-day builds on the tiny
offshore structures. This was a great place Council in New Hampshire was substantial. houses and see that we are ordinary people
to learn how to calculate overhead costs and Members would come to learn about mark- who can thrive as builders making enough
create production schedules. When I retired up, margins and best practices. I thought that money to buy a house, have a family and
from the Coast Guard, I had just finished this is something vastly needed in our world give back.
building a house on an island for my family, and used that for the reason to re-establish
and I thought it would be great to take my the council. Most of us build our businesses What is your business focus right now?
offshore experience and start a remodeling with what we assume to be the best practice, We are trying to grow responsibly. Our son
company dealing with the islands around but by meeting with other remodelers the has just come back to working with us, and
Lake Winnipesaukee, New Hampshire. whole group becomes better. he brings his law degree and the knowledge
attained with it, as well as unique prob-
What first drew you to your local NAHB Can you share a bit about the local high lem-solving skills, with him. This is a great
chapter, and what keeps you involved? school tech program, and how you first opportunity to start growing [plus] develop-
I came from a military background and that became involved with it? ing a succession plan for the company. After
Huot Technical Center is the Construction the recession, we grew too fast and irrespon-
Trades program for schools on the southern sibly with a hard impact on our finances. We
side of Lake Winnipesaukee. Our state HBA learned from that experience, will be work-
started a program three years ago with the ing with a marketing agency and have hired
state lottery to build tiny houses with five a bookkeeper to help us grow responsibly.
trade schools. Upon completion, the house We are actively looking for new people who
built by Huot was selected as the winner for want this to be their last job, [and] we are
a scratch ticket game. Our local program be- looking at benefits that we can offer our cur-
came involved by offering to cover all the rent workforce so we can stay competitive.
Photo: John W. Hession
expenses with Huot, and providing the con-
struction and plumbing labor. We have two Anything else that you’d like to mention
fantastic teachers who are perfect for helping about career accomplishments?
high school kids get exposure to the trades. I like to think of this as the midpoint in my
When we first started the program, the class- career. We have a great business with some
es were marginally filled. Since then, our lo- talented people. I want to see us push for-
Clason says a relationship with a local architect has
cal program has decided to keep building ward and grow to be the premier remodeler
helped connect his company with the right clients.
tiny houses—we are currently on our third in the Lakes Region of New Hampshire.
22 March 2019 QualifiedRemodeler.comEngineered to turn building with wood into a would not.
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For more info circle 69A D V E R T O R I A L
CASE STUDY
How Rapid Roofing
Doubled Their Sales
GOING ABOVE AND BEYOND DEPENDABLE
MEASUREMENTS WITH HOVER
“HOVER has changed our business in profound ways. The company
doubled its sales this year, and I went from selling $1M per year to $1.7M.”
Terry Satterthwaite — Inspections Manager at Rapid Roofing
Terry Satterthwaite at Rapid Roofing Being a visionary and trusted company, After adopting HOVER into the sales pro-
had decided it was time to move away from Rapid Roofing began showing homeowners cess, Terry saw his close rate for residential
hand measuring properties. His company, HOVER’s precise and interactive outputs. siding jobs skyrocket from 30% to 75%. He
a favored exterior contracting business in “[Today’s homeowners] do a lot of online now no longer sells siding without using the
Southern Michigan, depended on measur- research,” said Terry. “They know how much platform. “HOVER allows me to invite home-
ing remote properties in densely vegetated their remodeling project is expected to cost owners to shop together rather than shoving
areas where aerial imagery tools proved to before they meet any contractor. Companies something down their throat... Homeowners
fall short time and time again. that don’t adjust their selling technique to see exactly what they want and then they
A year ago, Terry tested HOVER which accommodate the informed buyer will soon easily hand over a check.”
uses ground level smartphone photos to ren- be the dinosaurs in our industry. By giving The 3D model also helps Terry explain
der a 3D model and a robust suite of measure- homeowners insight into the measurements, step by step how his team will execute the
ment outputs. Not only was he able to capture we can prove that we have nothing to hide.” work, especially for large, complex jobs. “It’s
incredibly accurate measurements for these Now, Rapid Roofing’s entire sales team not easy to convince homeowners to pay
homes, he discovered that the platform had a is HOVERing every residential lead. After a $80,000 for something that they will never
much more profound impact on his business short meeting with the homeowner where see until the project is completed. HOVER has
than just saving time measuring. images of the property are captured, the rep been very powerful in closing these deals.”
informs the lead that they will return with an You can HOVER your first property for
accurate and interactive 3D model of their free by downloading the HOVER 3D app.
home. “I have never met homeowners who For more information about how HOVER
are not excited at the prospect of receiving can boost your business, visit www.hover.to,
a 3D model of their house that they can use email support@hover.to, or call 844-754-6837.
to design their dream home,” said Terry. “The
additional value of the 3D model instantly
puts us ahead of all other contractors they
were previously considering.”
For more info circle 70Increase Close Rates & Average Ticket Value
with the Power of 3D
HOVER transforms smartphone photos of any property into an
accurate, interactive 3D model. Use the HOVER platform to show homeowners
what their dream home could look like and close bigger deals faster.
What’s in It for You
Save Time & Money Gain a Competitive Edge Upsell More
Use HOVER’s accurate Show homeowners what the Visualize additional work that
measurements to create quotes final project will look like on a 3D will add curb appeal to the
and eliminate your tape measure model and increase your close home and increase the average
and windshield time. rates by up to 15%. ticket value of every project.
s support@hover.to 844-754-6837 www.hover.to For more info circle 71ENTREPRENEURSHIP
Transformational Growth
With the E-Myth Vision
A look at a proven
method for making
OVER the past 40 years, my company
has been challenged to apply the
E-Myth model I created to more than 100,000
companies from all the rest. It’s the owner who
fails to understand the role he or she must play
every single day, without fail.
a quantum-leap small businesses throughout the world—every
kind of small business, ranging from hi-tech, low- It’s the Role We Call ‘The Entrepreneur’
change in your home tech and no-tech businesses. If you’ve read my book, The E-Myth Revisited,
remodeling business. In that time, we’ve helped businesses that were you understand what I mean when I say “the en-
successful, but not enough so, and businesses that trepreneur.” He or she is the creator. The “imag-
were not successful and suffering daily. ineer” as Walt Disney called his folks at Disney
by Michael E. Gerber We’ve also helped businesses that were a walk- Imagineering. The imagineer sees the world
ing disaster—hoping upon hope that something through completely different eyes than that guy
lucky would walk in the door, knowing all the time or lady I call “the technician suffering from an en-
that it wouldn’t or couldn’t because they wouldn’t trepreneurial seizure.” That guy or lady who sets
know what to do with it even if it did. out to create a business of their own—the typical
In every single case, the problem standing in contractor, whether a remodeler, an architect, a
the way of the business’s success had nothing to framer, a plumber, an electrician, et al.
do with what everyone thought it to be. It wasn’t An entrepreneur lives above the work that
because they didn’t know how to sell better than needs to be done, lives above the business that
the guy next door. It wasn’t because they didn’t does it. An entrepreneur sees the entirety of the
have enough capital to keep the wolves from the company as a plan view—the whole of it, from the
door. It wasn’t because they didn’t know how to beginning to the very end. An entrepreneur sees
manage, to market, to handle their money. Oh, the whole of his or her company as though it were
yes, it was all of those things. But fixing any one a product, which it is when you look at it that way,
of them wouldn’t help, no matter how productive a product to be ultimately sold.
the fix was in the moment. Your company, I’m saying—you who are reading
this commentary right now—is/must be/will inevi-
tably be acquired by somebody else. That somebody
will see it as an exquisite opportunity to grow, to
AN ENTREPRENEUR SEES scale, to profit from, to explore.
THE ENTIRETY OF THE Unfortunately, only an infinitesimal number of
the tens upon tens of thousands of small businesses
COMPANY AS A PLAN we’ve worked with over the years were ever open
to what I’m sharing with you right now. But those
VIEW—THE WHOLE OF IT, that did: 1-800-GOT-JUNK, by Brian Scudamore
FROM THE BEGINNING TO is close to $500 million strong! BNI, by Dr. Ivan
Misner, is now worldwide in 175 countries! Engine,
THE VERY END. by Ron Miller, is generating capital for thousands
of small companies. Infusionsoft, by Clate Mask, is
over $100 million and on its way to a billion strong!
No, the problem of every single small business Each and every one of them was built upon a single
we walked into over those 40 years of providing point of view, the E-Myth point of view.
the E-Myth solution where we could was one very A small businesses must be envisaged by its en-
clear thing, demonstrably clear, in every single trepreneur as a scalable enterprise, from the very
case, every single time. It was the owner of the beginning as a company of one, to the very end as
business who stood in the way. It was the owner a company of 1,000. Yes, I’m speaking about your
of the business, struggling as most are, who failed company, no matter where you are or what you
to understand what differentiates great growing do. There’s a phenomenal mindset which must be
26 March 2019 QualifiedRemodeler.comYou can also read
