Today's Remodeler eNewsletter
Published by the Professional Remodeler's Organization
4120 Secor Road
Toledo, Ohio 43623
January 2010


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President's Message

With news media outlets announcing that the “GREAT RECESSION” may have reached its end, many if not most of us still have a sense we’ve not yet hit the bottom of all of this yet. It will probably be several months yet until we see clearer signs things are improving.

However, even though sales of home improvement products are expected to decline further this year than in 2008, and with the average job sizes being smaller, homeowners are still sprucing up their homes and living spaces. They’re just spending less. Focusing concerns toward maintaining structural integrity and energy efficiency of their homes.

With FALL here and WINTER not far off, energy efficiency aimed towards Windows, Doors, and energy efficient exterior renovations, coupled with the Federal Energy Tax Credits just might be the sales tool/items we’ll need to concentrate on until this “GREAT RECESSION” is truly behind us.

Along with coping through these difficult times, we have opportunities to present ourselves and our services to our future potential customers. Remember, PRO is partnering with the Sylvania Chamber, and the Tam-O-Shanter to present the LIFE, HOME & LEISURE SHOW at the Tam-O-Shanter Complex. Tam-O-Shanter has just completed a new entranceway in the back that should make it nicer and easier to find the show. This show brings the opportunity to interact with future customers looking for what you have to offer. Reserve your booth now before they are all gone.

Executive Director's Report

Happy New Year
The Board of Trustees and staff would like to wish all of you a Happy and Prosperous New Year. All indications are that things are going to be better this year. Let’s hope so. Our own Dick Eppstein will be speaking this month at the general meeting. He is going to bring you up to date on the latest scams going around. It never seems to amaze me how people come up with so many ideas on how to deceive the public.

General Meeting – January 21
The general meetings this year could possibly be held at various locations this year. Pay close attention to your notices so that you travel to the correct locations. Our first general meeting for the year will be at the Better Business Bureau (7668 Kings Pointe Rd – Toledo, Ohio). The time is 6:00pm for networking and 6:45 for dinner. The cost is $20.00 which includes a buffet dinner, beer, wine coolers, and pop. Thank you BBB for sponsoring our January meeting.

Sponsors
What would we do without our Gold Sponsor Owens Corning and our Silver Sponsor ABC Supply. Both have been very supportive over the years with our organization and stepped up once again this year to help us keep the events cost to a minimum. Thanks to both of you from the staff and Board of PRO.

Seminars
Here we go again! You have just survived your first audit from the City of Toledo and received your license. You now start over and again you are required to have 10 hours a year or a total of 30 hours of continuing education by December of 2012. We have set up some seminars for the spring for those of you who would like to get an early start and spread the cost over a period of time. There were a ton of people who waited until the last quarter of 2009 to get their hours in, but we were able to accommodate them. Good news to the contractors. The office got permission to keep your records at our office and submit them into the city at the end of 2012. Now you don’t have to try and find three years worth of certificates to make copies for the city.

Home & Garden Show
The 2010 Home & Garden Show is approaching us fast and there are still booths available. As we have been hearing, you can not – not have a booth this year. Keep in mind that we experienced a record attendance last year. There is a new “Cash & Carry” area this year. This area has been set aside and is designed for those who are selling items that the consumers can purchase and carry away with them that day. The booths are smaller (8’ wide x 5’ deep). The cost is only $300 for the weekend. Remember, the balance of your booth is due. The up to date floor plan is in the website.
The RRP Training: a Debriefing

This past Friday, I took the EPA’s Lead: Renovation, Repair, and Painting course and became a Certified Renovator. As owner of a remodeling company, incoming president of the Eastern Massachusetts NARI chapter, and your humble blogger, I feel obligated to report my parting impressions and my personal plan of action.

To summarize: At the very least, the course taught me what I need to do to keep my nose clean and avoid fines. Over the short term, my task within my own company will be to assess where I am willing to risk fines while simultaneously containing lead dust, keeping my crew motivated and safe, and keeping my dumpsters from being 35% filled with plastic sheeting and "disposable coveralls.”

I've been taking some crap lately for pitching the lead law as a potential boost for market share and/or sales. Taking this crap only makes me more confident that I'm right. Because if you think it will hurt your sales, it will.

First Words: High Time, and No Big Deal
First, I agree in concept that something significant needs to be done to force our industry to protect homeowners who hire us. We didn't take the initiative to protect them from lead exposure, so the EPA did.

Second, the certification process is easy…maybe too easy. While most of the complaining about the law isn’t about certification itself, I feel compelled to address those of you who object to the mere concept of having to get certified: See what it takes to become a licensed hairdresser. Gain some perspective.

Third, the lead-containment practices taught in the course – were I to implement all of them – would not significantly increase my job costs. Obviously, the smaller the job, the larger percentage increase there would be, but I can't see my average job costs increasing by even 1%.

Conflicts and Clarity, Overkill and Oversight
As for the quality of the training and the intent and clarity of the law, I do have some issues. A better trainer might be able to clarify some of my remaining gray areas.

Purely objectively, I know that my company's current dust control practices are better than those taught by the RRP course. The course never mentions negative air pressures in the workspace. I will be upgrading my company's exhaust fans to HEPA filtered fans, but I will not be following the EPA's practice of closing all windows; I need an open window for exhaust.

I am pretty darned sure that there is a conflict between RRP and OSHA over the practice of covering floors with plastic sheeting, especially when workers are required to put disposable booties over their feet. My classmates used the term "ice rink" over and over during our hands-on (and booties-on) training.

I learned that workers "should" wear disposable coveralls, a painter’s hat, booties, gloves, and a respirator. I also learned that lead is not absorbed, but rather inhaled and ingested orally. The argument for disposable clothing is not so much for the protection of workers as for their families, via the spread of lead. A study in Maine (cited in the class) traced the source of three children’s lead poisoning to their fathers' vehicles.

While this is a serious concern, I will be searching for other means of addressing this risk while minimizing disposable stuff and maximizing my crew's comfort, safety, and efficiency. When I asked my instructor whether I'd be subject to a $32,500 fine if I considered and rejected the recommendation that my crew "should" wear disposable clothing, he gave one of many non-definitive answers. I see this as my biggest implementation hurdle. I seriously think people will leave the trades if required to wear "disposable coveralls" through the summer.

As I'm writing this, I realized that the only clothing that was not disposable during the hands-on portion of my training was the gloves…..seemingly the most lead dust-covered item. Hmmmm.

Landfill Ironies, Green Setbacks
My biggest concern, and the thing I find the most ironic, is that the practices mandated by the "Environmental Protection" Agency's regulations will cause an enormous increase in the amount of polyethylene sent to our landfills. To bag and/or wrap and tape every bit of waste for the trip from the workspace to the landfill is to overemphasize the means instead of the end result.

When I asked my instructor whether these were “recommended” practices or mandated practices (with a $32,500 fine if violated), I got two different answers. As I see it, these bagging/wrapping/taping means, if practiced, would result in major step backward in the green remodeling movement.

Just the use of plastic and duct tape used in conducting the trainings is worthy of an environmental impact study. I salvaged two 10-x-20-foot, perfectly clean and uncut sheets from the trash after my training. This was about a third of the total used in the course – and it will soon appear on a jobsite near Boston.

Wish List and Commitment
Personally, I would like the training to include a bit more education about the issue of lead poisoning. I believe that the majority of my classmates ended the day without any philosophical shift about the need for better lead containment. This is a huge lost opportunity. At the very least, anyone who takes this class should “graduate” better-equipped with the knowledge to sell lead-safe remodeling.

As a final thought, I am choosing to view the current law as a "first draft.” I intend to be a more active participant in the ensuing dialog with EPA and whoever the enforcers happen to be. I believe the intent of the RRP is spot-on. We need to play a more proactive and positive role in achieving the goals of lead containment without sacrificing worker safety, environmental sustainability, and economic viability for our remodeling brethren.
On Lead, Abdication May Not Be an Option
Shawn McCadden

I just took a full-day training class to become a Certified Renovator according to the EPA’s Lead: Renovation, Repair and Painting law. I am so glad I did. The class was presented by Rob Dowse of The Connor Institute. Rob was well informed, offered practical advice and compliance methods, and did a great job keeping the discussion on focus.

If you own a remodeling business, you’d better take an RRP class too, as soon as possible. Do not abdicate this responsibility. There is too much at stake to risk not being adequately informed about how the new regulations will affect your entire business. April may seem like a long way off, but once you realize what you need to do to get ready, you might wish you had more time.

A Short, Serious List
Here’s my short list of what you and your business will need to consider and/or plan for before you consider working on homes that were built before 1978: The $32,500 Killer
Remember that I said this was my short list. There is plenty more to consider about the lead law. In this tough economic environment, one $32,500 fine might put you out of business. Get educated now and start making plans to do the work within the regulations.

Or, start planning for how you will make up for the lost volume if you choose to stop working in pre-1978 housing.
22 Reasons to Exhibit at Trade Shows

While trade shows are not easy, they are many worthwhile reasons to exhibit. How many? In just ten minutes time (and without succumbing to the temptation of a Google search), I came up with these 22 reasons to lug your trade show exhibit down to the nearest convention center and exhibit:

Sales:
  1. Generate sales leads

  2. Close sales

  3. Build relationships with prospects

  4. Advance the sales cycle

  5. Cross-sell existing clients

  6. Meet spread-out buying teams at one time

  7. Recruit new sales people

  8. Recruit new distribution

  9. Train new sales people

    Marketing Communications

  10. Build your brand

  11. Re-position your brand

  12. Increase awareness

  13. Survey market awareness

  14. Interview clients

  15. Generate publicity

    Product Marketing:

  16. Launch new products

  17. Survey attendees about new product ideas

  18. Research competitor’s products and messaging

    Executive Management:

  19. Keep up on industry trends

  20. Meet with key clients

  21. Meet with key business partners

  22. Profitably build the business
A Different Take on Ethics
By: Rick Provost

Barry Klemons built his business around a set of bedrock principles and earned a reputation for honesty and integrity. His attention to each and every customer was legendary, so he was shocked and upset to hear through the grapevine that a former customer was bad-mouthing him and his company. Archadeck of Charlotte built a screened porch a few years earlier for a client, and she was telling friends and family that the work was badly done. So Klemons decided to give her a call. “Mrs. Smith? This is Barry Klemons. We built your screened porch, and I just heard that you’re unhappy with our work.” “That’s right! I am unhappy,” the client snapped. Barry asked what was wrong with it. “The roof has been leaking for over a year!” she said. “Why didn’t you let us know?” Barry asked. “I did," the homeowner replied. "I wrote a letter.” “I didn’t receive a letter from you,” Barry said. “Well,” retorted Mrs. Smith, “I never mailed it.” In disbelief, Klemons asked, “Why not?” “Because I knew you wouldn’t do anything about it!” Klemons felt it was an unjustified attack on his character. Of course, he fixed the leak and restored his honor -- at least in the mind of one customer who had stereotyped him as a “typical” remodeling contractor.

Klemons, who sold his company in 2007, was Chairman of the Charlotte Better Business Bureau. He was the 2005 recipient of the Charlotte Ethics in Business Award, after receiving an honorable mention the previous year. The Charlotte chapter of the National Association of the Remodeling Industry, of which Klemons is a charter member, gives an annual award in his name. He’s a multiple Chrysalis award winner, and is on Remodeling magazine’s Big50 list. In addition to numerous professional awards, Barry’s civic contributions are widely recognized and lauded. And Mrs. Smith just assumed that he wouldn’t stand behind his work.

Reputation Handicap
A contractor’s reputation is at risk even when he does everything right. Clearly, the public perceives contractors as unethical. The 2008 Consumer Complaint Survey, published this July, ranked home improvement/construction No. 2 on its Top Ten Complaints list. Our industry has had the distinction of being ranked in the top three for many years. This perception, and the reality causing it, places remodelers in a defensive posture before they even show up to provide an estimate (not showing up for the estimate has become folklore, contributing to the negative stereotype).

Ironically, the customer is frequently an enabler for the problems he complains about. Not to blame the victim here, but isn’t it odd that people will allow -- nay, pursue -- the lowest bidder to touch what is probably their single largest asset? The 19th century author John Ruskin said, “The common law of business balance prohibits paying a little and getting a lot. It can't be done.” Yet every day, homeowners effectively conspire with those contractors who are willing to work cheaply, to produce an unsatisfactory outcome for both parties. Of course, the reputation of the entire remodeling industry erodes just a little more each time this occurs. And the Mrs. Smiths of the world just assume …

The math is simple, then: The most ethical behavior is to charge more! Or to charge enough to deliver what you promise; and that should never come at the lowest price. Unfortunately, the people who need to learn that lesson probably aren’t reading this column.

Those same people would benefit from keeping the customer’s viewpoint in mind -- how relatively small impressions can communicate volumes about a remodeler’s character and values: How his phone is answered; how promptly calls are returned; appointments kept; attention to personal grooming and hygiene; the quality of oral and written communication, and so on. Contractors often start a customer relationship by having to prove themselves innocent and, unfortunately, many don’t help their own -- or the industry’s -- cause.

Are Your Performance Reviews Up to the Mark? - Part 2
by Linnea Blair

In the first part of this article we discussed the importance of good organizational skills and planning ahead. Refresh your memory with Part I Here.

If you have never had a performance review process in place, you will want to discover at what level your team members are currently functioning. You may have employees who are filling a foreman role, for example, but may not really be operating with the competency set for a foreman according to your job description for that role. This situation may be caused by a number of reasons from weak job descriptions, job descriptions that are not fully used within the company, promotion of a person to a role prior to implementing formal job descriptions, or just plain expediency.

Your goal in this discovery will be to determine what you need to fulfill your Business Plan and may involve training or coaching for current employees to grow in their competencies or progress to a new role. You may also discover that you need to recruit for a specific role or move an employee to a role for which they are better suited.

When you conduct a performance review, the review itself should be set up to assess the level of competency based on the job description itself. This is where having a strong job description really pays off as it is simple and objective to rate the employee directly from the list of competencies inherent in the job description.

Each team member should perform their own self assessment. Supervisors and managers should also perform a review on their direct reports and depending on the size of the company, the business owner or senior management team may review all employees or meet with supervisors to discuss their review of lower level personnel.

Before you roll out a complete performance review system there are some things you need to consider for successful implementation. Implementing Performance Reviews
The timetable should include time for the self assessments and reviews to be completed. Since some managers will need to review multiple employees, make sure to have a realistic time frame for them to complete the reviews in addition to performing their regular responsibilities.

Once the written assessments are completed by employees and managers, individual meetings should be set up with each employee and either their supervisor or a business owner (or both). The goals of this part of the review process are to communicate with the team member about how he or she is performing in the current role, deciding together on action steps to either improve in areas that are weak, or to determine what steps the employee can take to progress to a role of greater responsibility within the company. The resulting personal plan will become a method of objectively measuring future progress during the ensuing period of performance monitoring.

The timing of performance reviews can come at the end of a fiscal cycle or at the end of a seasonal cycle. Typically you would not want to conduct performance reviews at the height of your busiest season, though that may be a good time for more informal project reviews. You also may want to structure your performance reviews to occur prior to the time you would normally give out raises so that you can tie your decisions about what raises and promotions to give based upon objective merit.

Ongoing Performance Management
Monitoring performance on an ongoing basis through follow up coaching sessions or meetings make the difference for many companies in the successful implementation and progress of team members towards their personal action plan goals. Some company meetings (as outlined in my previous article found in the Third Quarter Issue of this Magazine) may be a good venue for reviewing project performance. Supervisors may also set up individual meetings on a quarterly if not monthly basis to check in on team members’ progress towards their personal plan and determine new action steps if necessary.

Dealing with poor performance is different than coaching employees who are, for the most part, on the right track. When you have poor performers in the company, it is critical to the business as well as to the individual employee and the team that the situation is dealt with effectively and quickly. This topic is an article unto itself and will be addressed in a future issue.

Business Owner Commitment
As mentioned earlier, the success of a performance review process rests largely with the business owner. Your commitment of your own and your employees time to the review process together with a demonstration of positive and constructive communication to your team is critical if you want to develop a culture that emphasizes achievement and dedication to high performance and teamwork.
IRS Announces 2010 Standard Mileage Rates

The reimbursement rate drops to 50 cents per mile in 2010.

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
  1. 50 cents per mile for business miles driven

  2. 16.5 cents per mile driven for medical or moving purposes

  3. 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.
Marketing & Business Tools for Today's Remodeler
-Understand What Marketing Really IS, -Learn Essential Marketing Tools, -Benefits Behind Today’s Electronic Toys, -Internet Marketing Basics & More! More >
EPA Renovation, Repair, and Painting Initial Training Course
Common renovation activities like sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children. To protect against this risk, in April 2008, EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. More >
PRO Health Insurance Discount Program
Your association is committed to you...small business health insurance plans. More >
Welcome New PRO Members:
Procedure for obtaining a Toledo Home Improvement & Remodeling Contractors License
Both Prep courses are free to PRO members; members will have to purchase books & other materials. More >