Tuesday, January 22, 2013

Social Media for Business - Internet Radio Program




In this edition of "Minding Your Business", our guest will be Lynn M. Masiello, CBD-CKD, President / CEO of LM Designs in Verona, NJ.  Lynn will discuss the use of social media in business and will focus on the following issues: (1) How to succesfully utilize social media in business; (2) What specific social media resources she uses; (3) What benefits can be derived from proper use of social media; and (4) Advice for businesses new to social media. 
Tune in or call in to ask questions on January 25 , 2013 at 12:00 p.m. (eastern)



Are You Advertising at KBIS?

How many of you will be advertising at this year's KBIS?  If you are advertising, let us know what benefits you expect to gain.  

For those smaller companies who may be unable to afford top level advertising opportunities, is there a benefit to the lower cost KBIS advertising offers?

What do you think?

KBIS 2013 Advertising & Sponsorship Menu

KBIS 2013 Advertising & Sponsorship Menu is available on the KBIS website.  Below is an excerpt from the KBIS website along with a link to the page.

KBIS Advertising Page From KBIS "Be there and be seen! We have developed a comprehensive sponsorship menu that will provide you with a multi-media approach to help you find the best way to reach key buyers at KBIS 2013."

Click On This Page Above to Download the Full Menu





Tuesday, January 15, 2013

2013 Remodeling Forcast


The National Association of the Remodeling Industry’s (NARI) fourth-quarter Remodeling Business Pulse data of current and future remodeling business conditions has experienced significant growth across all indicators, with forecasting in the next three months hitting its all-time highest level.

“Remodelers are indicating major growth in the future, with many saying that clients are feeling more stable in their financial future and their employment situations; therefore, they are spending more freely on remodeling needs,” said Tom O’Grady, CR, CKBR, chairman of NARI’s Strategic Planning & Research Committee and president of O’Grady Builders, based in Drexel Hill, PA.

Growth indicators in the last quarter of 2012 show that current business conditions are up 2.1 percent and the number of inquiries are up 3.9 percent. Requests for bids increased by 3.7 percent and the conversion of bids to jobs is up 3.5 percent since last quarter. 

According to the data, expectations for 2013 are even brighter. Two-thirds of remodelers forecasted the next three months positively, and the rating jumped 13.1 percent from last quarter.

Of the small segment predicting declines, 91 percent cited uncertainty of the future with commentary focused largely on tax increases and leadership issues in Washington. “Now that the election is over, consumer confidence is starting to grow and so has remodelers’ confidence,” said O’Grady. “NARI members are looking forward to having a well-deserved, productive year ahead.”

To review the research in its entirety, send a request to marketing@nari.org.

Tuesday, December 6, 2011

The Best of Both Worlds

The Best of Both Worlds



Yet most kitchen and bath dealers prefer to take a middle ground approach that blends elements of high-tech communication with the human touch – balancing magazines and newspapers with Web sites and online videos, trade shows and live conferences with Webinars and online interactive training courses, and e-Newsletters with good old fashioned word of mouth.
In the age of modern technology, kitchen and bath pros have decided that they want the best of both worlds – so that they can access what they need, when they need it and in the format they need it in – whether that’s “live,” online or some combination of the two.
That’s according to a recent KBDN survey that polled more than 540 kitchen and bath dealers and designers about their technology habits and preferred sources for gathering information.

Multiple Information Sources

In a tight economy, information becomes a more valuable resource than ever. So it’s no surprise that kitchen and bath professionals are tapping into multiple information sources to stay abreast of the latest news, products, trends and more.
While online research is popular for its speed, ease of use and 24/7 accessibility, respondents who were polled about where they get their kitchen and bath industry information and news actually cited industry trade magazines as their number one information resource, with 92% of those surveyed citing this as a key source for industry news and information (see Graph 1).
The second most popular information source, not surprisingly, was manufacturer Web sites. As one dealer noted, “The market is still changing fast enough that you need to constantly stay on top of specs, and most manufacturer Web sites are very good about keeping this info up to the minute.”
After manufacturer Web sites, consumer magazines (50.8%) and industry conferences/trade shows (43.4%) were cited as top sources for industry info, followed by e-newsletters (41.4%), magazine Web sites (40.1%) and word of mouth (34.1%).
Webinars were cited by 27.6% of respondents, TV was cited by 19.9% of those polled, live seminars won 19.3% of respondents’ votes and blogs were named by 16% of dealers and designers surveyed.
Twitter was seen as the weakest source of information by those polled, with only 4.3% viewing it as a credible source of industry news or information.

Using the 'Net

The Internet provides both myriad opportunities for seeking out knowledge and numerous platforms for accessing that knowledge. However, not all of those platforms resonate with kitchen and bath professionals. For instance, while 71.3% use the Internet to research product info and literature and 68.9% use it to read news stories, a mere 3.5% of those polled download apps and only 3.3% seek out company social media sites (see Graph 2). Likewise, online opinion forums, which were all the rage a few years ago, seem to be falling by the wayside, with only 1.1% of those polled saying they use the Internet to post on these online forums.
More than one third (38.1%) go online to watch videos, 13.3% sign up for alerts or newsletters, 11.8% purchase products online and 10.9% sign up for Webinars and read blogs, respectively.
Social media is one of the most popular places kitchen and bath dealers and designers use to interact online. However, there does seem to be a bit of a schism here, with dealers and designers either loving social media sites or hating them. In fact, while nearly half of those surveyed say they use social media at least several times a week (and more than one third say they’re on daily), another quarter of those polled say they never use social media (see Graph 3).
“It’s a huge time suck,” explains one such kitchen dealer, who says she sees friends and colleagues losing hours a day to the social media world, without any tangible gain in business to show for it. “It’s easy to get caught up in the whole social media thing, because everyone’s doing it, but in a tight economy, you have to look at what’s going to generate revenue and what’s just a waste of time. I haven’t seen any real evidence that social media brings in clients or generates profits,” she says.
However, another survey respondent had a very different take: “Today, more than ever, it’s all about being out there and making connections. Potential clients can go to my Facebook page and not only learn about my business, but also see designs in progress, read client comments and feel like they’re getting to know me and my business. It creates a comfort level that gives me an edge, which is important when everyone is out getting multiple bids before choosing a designer.”
While not as popular as social media, online videos seem to be gaining traction with kitchen and bath professionals, with 44% of those surveyed saying they watch online videos at least several times a month (see Graph 4). Another 30% say they watch these videos a few times a year, while only a small percentage (6.6%) say they never watch them.
Likewise, Webinars are making slow inroads into the kitchen and bath industry, as greater time constraints and reduced travel budgets have encouraged kitchen and bath dealers and designers to consider educational options that don’t require expensive travel.
That said, according to those polled, Webinars are still something that dealers and designers participate in sparingly, with 42.2% of those polled saying they attend Webinars only several times a year (see Graph 5). By contrast, only 21.6% say they participate in Webinars once a month or more, while 25% never attend Webinars.
But this trend may well grow due to its convenience and time-saving aspects. As one designer states, “Being able to squeeze in some extra training in an hour while I’m eating my lunch is very helpful. Continuing education is important to me, but time is tight, so this gives me the best of both worlds.”

Phone Plans

While technology is always growing by leaps and bounds, smart phones in particular are in high demand. And dealers and designers are no exception here, with many jumping on the smart phone bandwagon. In fact, some 22.7% said they currently use an Android-based smart phone, 20.6% said they use an iPhone, 16.6% use a Blackberry and 5.3% use some other smart phone.
But not everyone is fully on board with this trend; more than one third of those polled said they’re still using a basic mobile phone. However, a good number of these said they hoped to upgrade in 2012.
Despite the growing interest in smart phones, the majority of respondents said they don’t use most of the functions on their smart phones, primarily using them to talk, text, send emails and take photos. Only 5.9% said they download business-related apps, 3.2% watch industry-related videos, 1.5% read blogs, and 0.5% attend Webinars with their smart phones.
When asked about their phone purchasing plans for 2012, 16% said they will purchase an iPhone, 7.7% said they will buy an Android-based model and 2.8% planned to purchase a Blackberry (see Graph 6).

When it comes to iPads or tablets, only 12.8% said they currently have one, but nearly one third said they expect to purchase one in 2012, suggesting that tablets will increasingly become a part of doing business in the kitchen and bath industry in the coming year.
While many respondents expressed a desire to upgrade everything from laptops to cell phones in 2012, the economy continues to impact the industry; 38.7%of those polled said they will not be making any technology related purchases in 2012.

Reform and Remodeling



Regulatory reform and tax reform are hot topics in Washington. Regulatory reform legislation is pending in the House and Senate that would strengthen small business’s ability to influence agency decisions. Small businesses need regulatory reform because they spend 36 percent more per employee to comply with federal mandates than their larger business competitors. The U.S. Small Business Administration estimates compliance with federal regulations costs small businesses $10,585 per employee every year. And the most recent estimates show regulatory compliance costs rose faster than the cost of medical care.
The remodeling industry has experienced its share of aggressive regulation, and these regulations have become a heavier burden as the U.S. economy struggles. Although the industry was successful this past summer in persuading EPA not to pile on additional requirements for the LRRP rule, it still seems as though there is an avalanche of federal mandates crushing small businesses in America.
hrough industry research conducted this summer by NARI, EPA officials learned an underground economy exists. Homeowners were choosing contractors who were not RRP-certified to save money. Those poor choices increase the likelihood of more children being exposed to lead. NARI’s survey also revealed some homeowners decided to take on some or all of the work themselves to save money. We all know that presents a host of other problems.
NARI is encouraged because EPA examined the survey results, met with NARI officials and listened to the stories remodelers told about their LRRP challenges prior to making a decision about whether to add requirements to LRRP. EPA announced its decision on July 15 to not add more LRRP requirements. We know EPA based its decision, in part, on NARI data showing how added costs would result in more uncertified contractors getting jobs that would otherwise go to EPA-certified remodelers.
Tax reform is also a hot topic, especially with GOP presidential candidates and Congress’s super committee. When tax reform comes up, small businesses get frustrated because lowering individual rates is rarely discussed.
Politicians sometimes talk about tax reform and how they can help small business. However, tweaking corporate rates does not directly help most small firms. More than 75 percent of small businesses file taxes on business income at individual rates, and the vast majority of remodeling businesses are small businesses.
Individual rates are significant to small-business owners because it is common for an owner to structure his or her business as a pass-through. A recent survey revealed that 85 percent of NARI members are taxed at individual rates with the highest percentage (52 percent) filing as S Corps. From a taxation standpoint, the pass-through model is wise for the typical small business to avoid paying tax twice—first at the corporate level and then on wages, or business-investment returns.

Sucess With Subcontractors

Success With Subcontractors

Communication is key


Tim Faller
Tim Faller
Credit: Sharpe + Harrell Photography
Many remodelers are turning to subcontractors during this tough time because they provide fixed costs, but it takes communication to make the relationship succeed. Having recently worked for a kitchen and bath company, I have a few tips from the sub’s perspective.
  • Provide complete paperwork. Since subcontractors typically will not take responsibility for jobsite decisions, your paperwork must be complete and include plans and a full scope of work. If you don’t provide product/design decisions before the job begins, the sub will end up spending site time that he did not include in the original estimate, resulting in frustration and change orders.
  • Define the sub’s responsibilities. This is not about the scope of work but about other related activities such as when and how subs should communicate with the client, who writes up change orders, how you expect subs to leave the jobsite at the end of the day, and so on. A subcontractor job description will help prevent miscommunication.
  • Set the payment schedule. Money is at the root of many arguments. Whether you pay by draws or at the end of a completed job, set expectations. Also include how and when you will pay for extra work.
  • Focus on customer service. A single subcontractor can create a happy client or can ruin your referrals. Explain to the sub that quality work, being on time, cleaning up, and communicating affect your ability to sell jobs and, in turn, give the sub work.
—Tim Faller is president of Field Training Services and author of The Lead Carpenter Handbook. leadcarpenter.com

The Advocate

The Advocate

Working with adjusters on insurance restoration projects

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“Most people don’t go through this [kind of thing] in their lives, and when they do it’s extremely challenging for them. Keeping calm and being an advocate has led to our success.” —BRYAN HENSON
Credit: Kyle T. Webster
Hurricanes, fires, flooding — every day brings reports of catastrophe. Even if you don’t run a disaster restoration company, you’ve likely heard from clients or their referrals when trouble strikes. While this brings in additional work, for many general contractors it also sends up red flags about working with adjusters.
But the relationship with an insurance company need not be contentious, says Bryan Henson, general manager at Allen Associates, in Santa Barbara, Calif., a remodeling company that also works on wildfire-damaged homes.
Success lies in helping the adjuster do his job and advocating for your client. Henson and John Albritton, an independent claims adjuster who works for insurance companies such as All State, Met Life, and Farmers, offer these tips.
Justify pricing: Don’t just hand the adjuster lump-sum pricing. Offer a detailed scope of work with line items. If possible, use Exactimate, the estimating software most adjusters use.
Build a good case: Document everything with notes and photos. Occasionally an adjuster leaves midproject and you start over with another adjuster. Your notes will keep the process moving. Also, adjusters only do a visual inspection. If there’s water behind the drywall, the adjuster won’t necessarily know that, and he isn’t allowed to do “destructive testing” to find out.
Know your labor costs: Use subs and suppliers who give realistic numbers. This way you can show the insurance company that yes, in your area a plumber, for example, does cost “x” amount.
Know your materials: There are at least five types of drywall in your adjuster’s software. Since he can only do a visual inspection, the more specific you can be, the better for your client.
Be patient: Sometimes the adjuster will cut a check in the home­owner’s driveway, but it’s usually a longer process. He will do due diligence, which might include sending a carpet or wall sample to a lab or sending roofing specs to a satellite imaging company.
Bone up on policies: Adjusters can only replace like for like, so the insurer won’t pay for granite, for example, if the client had Formica. Also, insurance policies pay on coverages; e.g., the house may be covered but not the fence or detached garage, or the house may be covered for replacement costs, with other items covered for cash value.

Actions Speak Loudest

Though Allen Associates is a full-service remodeler, Henson says it always has one or two insurance jobs going. The company doesn’t seek out the work, but after a series of wildfires a few years ago, staff volunteered to help homeowners, which built trust. In addition, the fire-safe homes the company had built survived the fires and owner Dennis Allen gave seminars on next steps after a disaster. “We acted only as a resource” and didn’t actively promote the company, Henson says, and the firm’s reputation grew.
—Stacey Freed, senior editor, REMODELING.

Contractor or Employee?

Contractor or Employee?

For the IRS, all workers are not created equal

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Credit: Tom Deja
The federal government has definite rules when it comes to classifying independent contractors and employees. Essentially, if the person acts like and is treated like an employee then, according to the federal government, that person is an employee.
Worst-case scenario: A contract worker is no longer needed, he files for unemployment benefits, your company gets investigated by the Department of Labor, and you end up having to pay back-taxes, Medicare and Social Security contributions, workers’ comp, and even back wages and any applicable overtime payments.

Paper Trail

This nightmare can be avoided by having the proper documentation on hand. Every non-employee who works for you should get a Form 1099-MISC for payments of $600 or more in a given year, and all independent contractors should get W-9 and I-9 (proof of citizenship) forms.
The Internal Revenue Service has a list of Common Law Rules to determine whether or not a worker is in fact a company man or a ramblin’ man.
1. Behavioral: Do you control or have the right to control what the worker does and how the worker does his or her job?
2. Financial: Do you control the business aspects of the worker’s job — reimburse expenses, provide tools/supplies, etc.?
3. Relationship: Do you have a written contract or give the worker any benefits (insurance, vacation pay)? Will the relationship continue? Does the worker perform an essential duty at your business?
Granted, satisfying these rules alone doesn’t determine whether a worker is an independent contractor or an employee. E.g., it’s doubtful there’s an independent contractor on any jobsite who wouldn’t fail the first “behavioral” rule. After all, what employer doesn’t control what a worker does and how he does it? That’s called managing.
Although you need to have the paperwork to prove a worker’s status, sometimes that isn’t enough. Basically, don’t treat all your workers as equal. E.g., don’t give the contract worker a company email address, business cards, or a company truck or pay him out of payroll or provide tools or supplies. Benefits are forbidden, as is reimbursing expenses incurred on the job. There’s more, but you get the idea.
Remember, when dealing with workers, Uncle Sam is watching!

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