From Pilot To Contractor
Contractor University
Mastering Cedar
page 41
page 30
page 47
John Bleasby Blogs His Journey
Interview With Mike Draper
CANADIAN
Steve Maxwell’s Favourite Siding
THE MAGAZINE FOR PROFESSIONAL RENOVATORS AND CUSTOM HOMEBUILDERS
MONTREAL STYLE Les Belles Rénovations in La Belle Province page 34
S
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CONTENTS
rch be ca.
CONTENTS
Cover
Montreal
34
Style
features Installed Sales
25
Retailers love to put up those “We Install It!” signs. But being an installer for a home improvement retailer doesn’t work for every contractor.
COVER STORY Montreal Style 34 This month’s Creative Eye features two stunning renovation projects in Montreal from La SHED Architecture.
Pilot to
41
Contractor
From Pilot to Contractor
41
John Bleasby used to fly float planes for his own air charter service. In his weekly blog at canadiancontractor.ca, you can follow his rookie solo homebuild as a contractor. Here’s a sample.
Telephone Techniques for Renovators 56 You can build as accurately and quickly as anyone in the trade, but if you can’t use your number one tool – the telephone – effectively, it’s costing you business.
Installed
25
Sales
www.canadiancontractor.ca
September/October 2014
3
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OW
CO
TURN
S T S* .
TU
. RT
C P U OMFO N R
N ENER
Y G
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CONTENTS
CONTENTS
departments What’s Online
Cedar
Shingles
6
With 45,000 page views per month and 16,000+ e-news subscribers, canadiancontractor.ca is the number one online community for renovation contractors in Canada. Here’s a sample.
47
Editorials
8
Altus Group has pegged the home renovations industry at $64-billion, rivaling the auto trade and the grocery business for dollar volume. Rob and Steve weigh in.
Voices
10
A sample of your online posts about home renovation tax credits, substance abuse on the jobsite, clients who want to “pitch in,” StraightForward pricing models, vans that hold “everything” and more.
Site Notes
Contractor
U
20
News from around the industry, including a memoriam to Craig Lowe, best known as “Mike Holmes’ painter.”
30
Contractor U
30
An interview with our resident contractor coach, Mike Draper, vice-president at renovantage.com
Maxwell’s Stuff We Like
47
Our tools editor Steve Maxwell shows us some spectacular cedar shingles installations, talks about the “end of oil,” and waxes poetic on some cool new products.
What Would
You Do?
What Would You Do?
58
58
This month’s case study asks you what you would do in the case of a third-party trying to nose his way into your profitable two-way partnership. You could win a $100 gas card for sending us the best answer.
www.canadiancontractor.ca
September/October 2014
5
ONLINE CANADIAN
Visit us online
CONTRACTOR
.ca
VIDEO
STEVE MAXWELL’S CABIN BUILDING SERIES Our tools editor Steve Maxwell turns his sharpie pen and his concise construction pointers onto the topic of cabin building. Even veteran contractors will learn something from this series. Type “Cabin” in the search bar at canadiancontractor.ca to find a sample of this video series. Type “Maxwell” to find Steve’s other videos on our site.
VIDEO
HOW TO HANDLE A WORK “CRUNCH” Our resident contractor coach Mike Draper, vice-president of training at Renovantage.com, talks to publisher Rob Koci about what to do when you’re a renovation contractor who has way too much work, and too little time to get it all done. Type “Crunch” in the search bar at canadiancontractor.ca to find this video. Type “Draper” to find Mike’s other videos on our site.
VIDEO
HOW TO INSTALL WINDOWS THE JELDWEN WAY Our cover boys from our previous issue, Manny Anderson and Anderson Hinds, of the Toronto renovation firm Hardcore Renos, show us the window installation at their Rondale Avenue build in North Toronto.
CANADIAN
Type “JeldWen” in the search bar at canadiancontractor.ca to find this video. Type “Hardcore” to find our other Hardcore Renos videos.
CONTRACTOR.ca BUILD | GROW | PROFIT
Volume 15, Number 6 September/October 2014 canadiancontractor.ca | Tel: 416 442 5600 |
Editor Steve Payne spayne@canadiancontractor.ca
80 Valleybrook Drive, North York, ON, M3B 2S9
Contributing Editors John Caulfield, David Godkin, Kim Laudrum, Steve Maxwell, Carrie Shaw
Canadian Contractor, established in 2000, is published 6 times a year by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. ISSN 1498-8941 (Print) ISSN 1929-6495 (Online)
Business Information Group
6
September/October 2014
Art Director Mary Peligra mpeligra@bizinfogroup.ca Publisher Rob Koci rkoci@bizinfogroup.ca Production Manager Gary White gwhite@bizinfogroup.ca Circulation Manager Beata Olechnowicz bolechnowicz@bizinfogroup.ca
www.canadiancontractor.ca
BIG Magazines LP Corinne Lynds, Editorial Director Tim Dimopoulos, Executive Publisher Alex Papanou, Vice-President of Canadian Publishing Bruce Creighton, President of Business Information Group Subscriber Services: To subscribe, renew your subscription or to change your address or information contact us at 416 442 5600 x3547 Subscription Rates: Canada $45.95 per year, Outside Canada $83.95US per year, Single Copy Canada $9.95. Privacy Notice: From time to time we make our subscription list available to select companies and organizations whose product or service may be of interest to you. If you do not wish your contact information to be made available, please contact us via one of
the following methods: Tel: 1-800-668-2374 Fax: 416-442-2191 Email: privacyofficer@ businessinformationgroup.ca Mail: Privacy Office, 80 Valleybrook Drive, North York, ON, M3B 2S9. Contents of this publication are protected by copyright and must not be reprinted in whole or in part without permission of the publisher. Publications Mail Agreement No. 40069240 We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.
EDITORIALS
Voices
HOME IMPROVEMENT NOW A $64-BILLION INDUSTRY By Rob Koci
H
ome improvement is now a $64 billion industry. That’s still less than the $82 billion (2012) auto industry, but consider this:
the auto sector’s billions are shared by a very few companies. The sales are driven out of a few hundred manufacturing plants. The manufacturer of parts and the vehicles themselves has been highly mechanized. The work done to cut costs and increase efficiencies over the last 100 years in the auto industry has been a marvel of engineering and the pride of the Western World. Home improvement? Not so much. There are tens of thousands of companies working at one time or another in 12.5 million housing units across the country doing a wide variety of tasks from installing toilets to whole house renos. Compared to auto making, the renovation industry is still in the Stone Age. And perhaps because of the diversity the home improvement
”
industry it is also one of the most regulated. But even the regulation is diverse, as jurisdiction for residential construction
Compared to
is spread among the provinces and territories.
auto making, our
The demand for lower cost housing is as relentless as the demand for good, cheap cars, which means the home improvement industry
industry is still in the
needs to apply the same vigor to increasing efficiencies as the car
Stone Age.
and money to be made in rationalizing the industry at every level.
”
Rob Koci Publisher
rkoci@canadiancontractor.ca
industry has done. Fortunately, there are efficiencies to be found It will take new larger companies or the existing smaller ones working in some sort of coordinated fashion to stay competitive, find the efficiencies and manage the regulation. It will take systemized installations and new products to improve the supply chain. The home improvement industry will never be as highly mechanized as the auto industry, but it is currently a long way from the best it can be. Unless you want to ignore the trend and slip into the underground economy to stay in the game, you need a long-term strategy that brings your company into the new, modern age of home renovation.
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EDITORIALS
Voices
RENOVATION CAREERS: FROM THE SANDLOTS TO THE BIG LEAGUES By Steve Payne
A
s recently as 25 years ago, the surest routes to a successful career for a young person in Canada still passed through university on
the way to acquiring the prestigious title of doctor, dentist, lawyer, engineer, accountant, professor or teacher. And the world of “hi tech” promised another lucrative avenue for our kids – even though that world has actually turned out to generate low-paying McJobs aplenty. Renovation contracting? As a profession, our industry has for decades been ignored as a serious profession and considered so shady in part that entire TV shows (Mike Holmes) have been built around the dubious theme of how crappy many Canadian contractors are at taking care of our homeowner customers. Well, Canadian renovation contractors, your time is here. Our industry has graduated from sandlot ball to the big leagues. As Rob mentioned opposite, the home improvement industry in this country has been recently pegged by Altus Group consultants at $64-billion, three-quarters the size of the much-ballyhooed auto industry. Meanwhile, TD Economics has calculated that Canada’s renovation industry has grown at 7 per cent per year for the past decade, outpacing the new homes sector (3 per cent the last few years) and the grocery industry (barely 1 per cent growth for several years). Our industry is so strong that it blasted through the bleak 2009 recession virtually unscathed. And, notwithstanding a fear-mongering Maclean’s article from July 28 that suggested our industry is built on
”
Our industry is
growing at 7% per
year, seven times faster than the grocery trade.
increased consumer debt and is vulnerable to a “20 per cent housing price correction” (as if every other industry isn’t similarly vulnerable in identical ways), there is no reason to ignore the obvious: the entrepreneurial opportunities and chances for a fascinating, fulfilling career in home renovations in Canada are virtually limitless. And if you want to look at the most obvious sign that our industry has an upside that is absolutely unstoppable, just look at the intense interest that governments of all levels are now taking in putting their
”
Steve Payne Editor
spayne@canadiancontractor.ca
hands in our wallets. Even civil servants are envious of what we’ve got going. www.canadiancontractor.ca
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HOME RENOVATION TAX INCENTIVES Many renovation contractors have posted at canadiancontractor.ca their desire for a return of the federal Home Renovation Tax Credit. Some praised it for helping to cut down on the underground economy in the home renovation industry and for pumping up business. Do such government incentives work?
“I would love to see a return to a tax credit as an incentive.” The Home Renovation Tax Credit (HRTC) was brilliant. Not only did it immediately pump billions into a struggling economy, it made contractors hand out invoices. A lot of the underground economy is in the smaller jobs, baths and decks, for example. This all fell within the less-than-$10,000 range of work. With HST, new compensation rules, and the Ontario College of Trades fees, the added burden of taxes is borne by the customer. They feel it is OK to cheat. They feel that the government is taking advantage of them. I would love to see a return to some sort of tax credit as an incentive for homeowners to report their projects to the government. It’s the right thing to do. Rest in peace (former Finance Minister) Jim Flaherty. A genius. Doug Merrick
“I didn’t have a single request or demand for a cash job the entire time the HRTC was in effect.” Couldn’t agree more. What a wonderful time that was having every customer (existing and prospective) insisting on invoices and doing everything by the books. I didn’t have a single request or demand for a cash job the entire time the HRTC was in effect. Making the HRTC a permanent program will do more damage to the underground economy than the CRA hiring thousands of auditors and it won’t cost the government (or taxpayers) a penny. Patrick Grieco
“My company surged then dropped when the HRTC program expired.” The HRTC did pump billions into a struggling economy for a very short period of time. But it also encouraged homeowners to complete projects they didn’t intend to do until years later. My renovation company experienced a huge surge in business followed by another huge drop in business after the HRTC program expired. Enticing homeowners with tax credits interfered with the 10
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normal business cycle. Not to mention that many individuals living on lower, fixed incomes did not benefit much as they are already paying very little, or no tax. It’s another case of government interfering with private business gone wrong. Jennifer Dietrich
“The economic benefits vs. costs to government were substantial.” My understanding is that the former Eco-Energy program, which was launched by the federal Liberals then killed by the federal Conservatives, was demonstrated to drive renovation work, resulted in moderate home-energy savings and, most of all, helped ensure that work was all conducted above board— because that was the only way for the homeowner to receive a credit by way of proof of purchases. I recall reading that the multiplier effect, which is economic benefits vs. cost to government, of this program was substantial. In my view, sometimes incentives, and the resulting government spending, are better than the often-argued push to simply reduce all of our taxes, which, sometimes has a perversely unintended impact, rather than benefit, on small businesses and individuals. Ben Polley
“We will happily pay the taxes—give us the work!” Am I dreaming? A comment in Canadian Contractor that recognizes Liberals may have (a) better idea(s) than the monotonous “cut taxes, cut taxes, cut taxes” mantra? We are in the (United) States, but incentive programs, such as those targeted toward energy conservation, are far better for us, as a small firm. We will happily pay the taxes – give us the work! Gail
“It’s clear the cards are stacked against the legitimate contractor.” Perhaps the Canada Revenue Agency should again consider allowing homeowners to write off a percentage of home renovations and service work. Something like they did with the Home Renovation Tax Credit. This would allow for an even playing field when estimating the job. I am constantly being asked to match prices submitted by non-compliant companies who ask for a cash payment to avoid HST. With the new Ontario WSIB charges and HST percentage I submit, it becomes clear that the cards are stacked against the legitimate contractor. John Stefanis
VOICES
SUBSTANCE ABUSE ON YOUR JOBSITE Did you know that if your worker is impaired on your jobsite, you could be liable? Here’s what you need to know:
“Your policies and procedures, as a contractor, should cover substance abuse issues.” I watched as the police officer dragged him out of his company vehicle on a Saturday morning. It was just after 9:15 a.m. His
“Knowing the guy in a lift above me isn’t high as a kite – I can live with the intrusion.” Just curious if true, I never once got asked for (drug or alcohol) testing in Ontario and heard it was not allowed. It seems pretty commonplace in Alberta. Not an indulger myself and on one hand it feels like a privacy intrusion but, knowing the guy in a lift above me isn’t high as a kite – I can live with it. Joe Greps Posted at canadiancontractor.ca
vehicle had mounted the curb at a traffic light. Luckily no one was injured or killed. He was so drunk he couldn’t stand up when he got out of the car. Once he was safely inside the police cruiser the officer removed a half-empty bottle in a brown bag from under the front seat. Had he injured himself or someone else or, worst-case scenario, had there been a fatality, an investigation by the Ministry of Labour would have pulled in the company he represents in order to examine its policy and procedures with regards to workplace substance abuse. There could have been serious fines levied. What’s your policy to cover such an event? The awareness of substance abuse such as alcohol or illegal drugs, or that some people misuse prescription drugs, is not new. It’s the employer’s responsibility to ensure workers in the workplace are not under the influence of alcohol or other stimulants, including prescribed drugs. Your policies and procedures, as a contractor, should cover substance abuse issues. They should include such things as: a definition of substance abuse, how to deal with impaired workers, a statement in what circumstances drug or alcohol testing can be conducted and a provision for disciplinary action. To be safe, always consult a lawyer. In the workplace, employers should be looking for workers with impaired judgment, slowed reflexes, impaired motor function, sleepiness or drowsiness, distorted sense of time, impaired memory and impaired coordination. The Canadian Centre on Substance Abuse (CCSA) reports that substance abuse cost the Canadian economy more than $39.8 billion in 2002. Who knows what the situation has become since then? By taking education and training, you can reduce your risk of fines, job site closures and prosecution under the Ontario Occupational Health and Safety Act. Check out the Alcohol and Drug Awareness course at www.carahs.org. Alex Caldwell Posted at canadiancontractor.ca 12
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WATCH OUT FOR CLIENTS WHO WANT TO PITCH IN Online, we asked for contractors’ stories about “Clients Who Want To Pitch In” (to supposedly save themselves some money). Alberta-based contractor Greg Miller sent us his own firm’s experience.
“From now on, we’re using WCB guidelines not only to save ourselves from potential litigation, but also to save us the hell non-professionals put us through.” We recently had a duplex build: a very large, three-level-plus basement project totaling 7,600-sq.ft., plus an 1,100-sq.ft. bay garage. The 70-year-old owner of the redevelopment insisted on working along with our crew. We gave in. After years of being a mine manager up north, he believed he knew everything better than us. He redirected the crew to install the temporary stairs backwards after our super left. He knew better that we did on the excavation, so he insisted the crew shore up the 12-foot hole differently than we directed. Then the bank collapsed. No one was hurt. Thankfully. When I found out about his drinking and connected the dots regarding his perplexing (alcoholic) rages, we checked into the WCB aspect. In Alberta we would not be covered at all if he had an accident. Nor would his homeowner insurance cover him, as the redevelopment wasn’t his place of residence. Additionally, if one of our workers, for example, was tripped by him and got hurt, WCB would pay the claim but then likely go after us as we allowed the homeowner on a construction site. So if he hurt or killed himself, we could be sued. If he hurt one of our workers,
VOICES
we would also likely be sued. Our guys were pulling their hair out with this guy. I had no choice but to issue a letter making it clear that he, his family and his friends were not permitted on the site until completion and keys were handed over. He also had run out of money and, during the same period, we had stopped work as a result. Between us stopping work and banning him from the site, he cancelled our contract. We then placed a lien for $230,000. Fact was we were losing money on his job. He did us a favour — especially as the $50,000 deposit was forfeit for improper cancellation. It just wasn’t worth the hassle. Not only did we have to put up with a difficult client, but also his being on the job caused lost income. His presence meant we had one less worker generating revenue. From now on, we’re using the WCB guidelines not only to save ourselves from potential litigation, but also to save us the hell non-professionals put us through. Greg Miller
price list with different tier levels that also includes a diagnostic fee, as if they were doctors. SFP contractors pay monthly fees for support and training on how to maximize profits. Some of these contractors have taken their pricing to a whole new level. Here is an example of how SFP works: My 84-year-old friend called a heating contractor to fix her furnace. The contractor was on-site less then 30 minutes, no new parts were used; yet the bill was an alarming $738.00. The contractor charged a diagnostic fee and used their SFP list to
EXPECT NOTHING LESS.
STRAIGHTFORWARD PRICING This post about a pricing method used largely by plumbing and heating contractors is from Kevin Koch of Koch Excavating. We asked online if this would work in your business. The comments are rolling in. Here are a few, along with Kevin’s first post.
“How can a contractor charge more than a doctor? It can be done. Some contractors charge the same fees as doctors and lawyers – and even higher. How can a contractor charge more than a doctor? It’s easy. Many plumbing and heating contractors have bought into a new slick scheme called “Straightforward Pricing.” Straightforward Pricing (SFP) is trademarked. Under this new scheme, the contractors go away from charging by the hour but instead they go by a
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VOICES
arrive at $738.00 for the service call. Bottom line is that you should not compare a blue-collar or white-collar profession and try to put them on an equal playing field. You have to do your homework in hiring a doctor, a lawyer or a contractor because there are dumb ones in every profession. I have learned that the amount of money anybody charges has nothing to do with your expectations. Kevin Koch, Koch Excavating
You don’t want a customer “complaining that you’re too slow for their wallet.” StraightForward Pricing eliminates unnecessary complaining from customers. The last thing you want is some customer standing behind you, looking at their watch and complaining that you’re too slow for their wallet. Bob2
“Why shouldn’t a tradesperson earn what he or she is worth?” We have used UP Front Pricing since 1995 here in Canada. It has allowed us to calculate our true costs, make a profit, provide a good customer warranty, and to pay our workers decently. After all why shouldn’t a tradesperson earn what he or she is worth? There is as much schooling, education and training involved as a doctor or lawyer. I love it when we get a customer telling us that no person is worth more than $40 per hour. Maybe in 1960!! Joe Gerolami
“The trick is to be honest.” I’ve been to these meetings where they push this method of billing. Prices are very high. It might work in a big city, but not in a small town where everyone knows everyone. One contractor was using this system for his plumbing service company but said he very rarely had clients call back for more work. I told him he was too costly to hire. There is always room for honest service companies to charge a fair amount to cover their cost and have money left over. The trick is to be honest. Harry
“Competing small contractors could raise their prices and finally make a profit.” If SFP firms charge higher rates why shouldn’t competing small contractors raise their prices, assuming they provide a 14
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comparable service, and finally make some profit? If your trade requires a four-plus year apprenticeship with schooling, exams and additional training to keep up with regular Code changes, your pay scale should be that of a professional. We need to start running our companies like the specialized trades they are. Provide exceptional workmanship and “blow their socks off’ kind of service, and people will be happy to pay your prices and call you back. Linda Posted at canadiancontractor.ca
USING YOUR TRUCK AS YOUR ‘WAREHOUSE ON WHEELS’ Our loyal reader Edward, a plumber, is not a fan of having to do supplier runs, so here’s how he avoids them “90 per cent of the time...” My truck has the parts. I had worked in the service industry for a while for a few StraightForward Pricing companies with stocked trucks, so now I have it stocked at all times – it’s a warehouse on wheels and all I have is a GMC Extended Savana. A residential home is a pretty simple set-up (for my vehicle): the only things I don’t have in the truck are large fixtures and the majority of import parts. As a plumber, doing four to five calls a day, supplier runs are waste of time for both my customer and me. Ninety-five per cent of my work is residential service and new install. All my jobs are set quotes, so if I am going to a home to repipe a kitchensink drain, it is one price and everyone pays the same. It is rare I have to hit up the supplier. The majority of the time I scroll my calls for the day, stock up on what I need, especially if I know I am short, and I’m on my way. I always gather as much information as I can from the customer over the phone. This way I am prepared. I have been doing this for a while. I can say with confidence that my calls go as planned—without supplier runs 90 per cent of the time.
Editor’s note: Tell us if you are using a particular company’s racking or storage system for your van or truck. If we feature them in the print version of Canadian Contractor, we will send you a $100 gas card if you’re the first person to suggest that particular equipment supplier.
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the rules as of Jan. 1, 2013. We were both clearly in agreement
PRIVATE INSURANCE VS. ONTARIO WSIB Alec Caldwell ran a post online warning contractors not to cut back on their private disability and accident insurance to make up for the fees being charged by WSIB. Here is an excerpt of that post.
“Private insurance is your only financial lifeline if an illness strikes suddenly.” It’s absolutely vital for Ontario contractors to full understand that WSIB does not cover critical illness claims! WSIB’s new, mandatory coverage has led many contractors, for budget reasons, to abandon their personally owned disability insurance coverage. They are then left vulnerable when a serious illness like cancer strikes. This makes for hard reading, perhaps, but let’s look at the facts. In Ontario last year, more men died of cancer than women. The top three cancers were (1) Prostrate Cancer (2) Breast Cancer (3) Colorectal Cancer. A staggering two in five Canadians will develop cancer in their lifetime. One in four Canadians will contract heart disease—half of them under the age of 65. One in three strokes happen to people under age 65. If you still own an individual sickness disability income insurance policy, but are worried about all those other government agencies putting their hands in your pocket in Ontario and elsewhere, think twice about giving such a policy up. It could be your only financial lifeline when these illnesses strike suddenly. If you don’t have an individual plan like this, look around for a policy. And I heartily recommend you look at critical illness insurance. It pays you a one-time lump-sum amount, tax-free, 30 days after a diagnosis of cancer, heart attack or stroke. The cancer has to be invasive, so skin cancer does not count. The idea is to get enough money to cover your income for three to six months, while you go through treatments. It’s well-worth checking out now. Alec Caldwell Posted at canadiancontractor.ca
that if a regular citizen tried the same approach to forcing insurance coverage they could be charged with extortion and/or racketeering. When will Ontario’s contractors and tradespersons pull their heads from the sand? What the WSIB gets away with is wrong and they need to be subjected to open market competition at the very least, if not total reformation. This approach to workplace insurance is killing much needed trades jobs. Chris Langman Posted at canadiancontractor.ca
ALBERTA’S TRADES TRAINING VERSUS ONTARIO’S This must be the 10th post we’ve had this year from an Albertatrained contractor who can’t get easily qualified to work in Ontario, thanks to the Ontario College of Trades, the TSSA, and other regulatory agencies in Ontario. Yet the Ontario College of Trades continues to claim that it is “promoting” the trades. Maybe we should collect all the posts we’ve had from well-qualified contractors who have had red tape thrown in their way, and have them all read out in the Ontario Legislature by Garfield Dunlop, licensed plumber and PC MPP.
”Alberta has a level of trades education that makes Ontario tickets look like a joke” I have a Red Seal Alberta ticket in sheet metal. I moved to Ontario before their College of Trades existed. Now my ticket is invalid and not legal to work here unless I join and pay them their money. What’s worse is they won’t recognize my ticket is good for up to four tons a/c. TSSA won’t recognize my ticket has gas-fitting training. ‘Too bad, do it over again here if you want to work here,’ is their answer. ‘But make sure you pay us our yearly dues on all your tickets when you get them.’ Just a government-job creation that tradespersons have to pay for with zero perks! I would rather move back to Alberta. My advice: Alberta has a higher level of education in trades that makes Ontario tickets look like a joke, at least in my trade. Get an Alberta ticket and stay there. Otherwise you need three
“What the WSIB gets away with is wrong.”
different tickets in Ontario to do what you can with your Alberta
I recently discussed the issue of mandatory WSIB coverage with an ex O.P.P. officer who was quite knowledgeable regarding
sheet metal ticket... And it’s free!!!
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Sterling McCauley
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“The Ontario government loves (liquor stores) everywhere, it’s like a new religion.” The situation mentioned (in Alex Caldwell’s post) is really sad, but I am not surprised at all. The way Ontario is going economically, we will see more situations like this one. The government loves LCBO’s (liquor stores) everywhere, it’s like a new religion; the government makes money both ways, same as the tobacco industry. In part they are responsible, they opened the doors for this sad situation. However, for anyone to reach a situation like this, they must have been through a lot of stress in their lives. Apparently, they are already sick, possibly with mental health problems, too. I believe this gentleman should be evaluated for mental issues before police charges. I only hope this wasn’t a false flag operation, for more government control. Questo Posted at canadiancontractor.ca
MAINTAINING A CLEAN JOBSITE We recently ran an article online asking you how you encourage your subtrades to clean up after themselves.
“Do you clean up when you are finished?” In the past 40 years, I have found that electricians and plumbers rarely clean up after themselves. Whenever I had one price out work for me, I would ask them upfront, before they started, ‘Do you clean up when you are finished?’ They all said they did, so I informed them if any mess was left - and I had to clean up - the cost would be taken off their contract. Most did actually do a respectable clean up. Some just threw [their stuff] outside on the ground. I guess that was their idea of cleaning up. Needless to say they were pissed when they got a reduced payment. Dave Posted at canadiancontractor.ca
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B.C. Reno Business Booming B.C.’s reno market is hot, “especially for the high-end guys,” says Bob de Wit. “They’ve got more than a year of work booked, which is a pretty good state of affairs.” The only rain falling on this parade says the CEO of the Greater Vancouver Home Builders Association: a new cycle of provincial building code changes that will apply to new construction and renovations valued at more than 75 per cent of a home’s assessed value. “This impacts our renovators, especially those who give out total cost estimates as opposed to cost plus,” says de Wit. “It affects how they’re able to price their deals and attract business.” De Wit says the challenge is even bigger for contractors working across municipal lines as different cities try to understand the code changes and invariably interpret them differently. The changes also take some permitting departments longer than others to figure out, resulting in delays which are passed on to the contractor and customer. “There’s definitely a demand on the municipalities to catch up with the demand being put on builders,” says Mark Cooper. Part of the problem is one of scale, says the president of Shakespeare Homes and Renovations Inc. in North Vancouver, i.e. not enough plan checkers to review the work of renovators in a hot market. “Being public sector organizations, municipalities can’t just hire ten new plan checkers and inspectors and then just let them go if the market turns down.” “But also I feel that some of the in-take procedures are a problem. In some municipalities you have to make an appointment to see a plan reviewer so you’re not fully aware if a certain project is even viable or not.” A case in point: North Vancouver, July 12; Cooper was told the earliest appointment he could get for an interior renovation plan was August 23. “And then you’ve got to go through the permitting process which can be eight to twelve weeks,” he says. Meantime, over in West Vancouver appointments are not required. Instead, contractors face a lead time of fourteen to sixteen weeks for a basic renovation permit. “In the City of Vancouver, we face both appointments and four to five month wait times.” Imagine the uncertainty this creates in the market, Cooper says, plus the layers of complexity that remain to be sorted out long before you set foot on the work site. A contractor needs to understand likely work flow, which trades to hire, how many and for how long and that doesn’t even take the client’s immediate needs into consideration. “Clients in many cases are going to be without a working kitchen or their entire home. They’ll have to relocate and rent
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somewhere. And even when they’ve accepted the permit the municipalities are unable to tell you when they’re going to issue it.” In one instance, a permit to move one wall for a straightforward kitchen reno was to have taken four to five weeks to deliver. Instead it took twelve. “And so the client is phoning every week asking `Where’s the permit, where’s the permit?’” In short, says Cooper, permitting departments in Greater Vancouver have entered a new “stone age,” i.e., Tim Horton-style “take a number” systems and long, first-come first-serve line-ups where no thought is paid to the different levels of complexity in home renovation that enter permitting offices. They’re problems Cooper will be taking head-on very shortly. He’s just been asked to participate in a forum in the municipality of West Vancouver “to work through some of these details.” His task: to have an “open dialogue” with municipal officials. “It’s all fine and well for a municipal council to vote on restrictions and changes and then expect the builder and architects to manage that process. But really those decisions have been made without any input from the building community.”
Feng Shui Richmond is B.C.’s fourth largest city, boasting North America’s largest proportion of Asians and with nearly half of its 190,000 plus population Chinese. Why should renovation contractors care? Because more and more contractors are being asked to incorporate Chinese Feng Shui elements into their renovated interiors. “Increasingly over the years that has been a large percentage of our business,” says Todd Senft, President of reVision Custom Home Renovations. “There are some minimal Feng Shui requirements and they ask for them right off the bat.” One key element most Feng Shui experts agree on is avoiding locating a bathroom above a bedroom. And because Universal energy or Chi comes through the front door of the house Senft cautions against positioning the bathroom door directly opposite. “That would be a bad thing to happen. Because it would feel like the energy hadn’t stayed in the house long enough. It would have just gone through.” Senft has overseen Feng Shui interior projects in Richmond and Vancouver but also notably West Vancouver and Shaughnessy neighbourhood because that, says Senft, “is where the wealth is.” For his part, Mark Cooper’s company Shakespeare Homes and Renovations is renovating a $6 million, 8,000 square foot property in West Vancouver “communicating regularly,” he says, “with the client about redeveloping the floor plan so that the house’s energy flows are part of that.” – David Godkin
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OBITUARY
Craig Lowe 1972-2014 Craig Lowe, a Mississauga, Ont. painter (Lowe Painting) who appeared on Mike Holmes’ TV shows – and who also ran the TV star’s Holmes Referred certified contractor program – died August 2 while scuba diving at Aspy Bay, Cape Breton, NS. Canadian Contractor’s sister publication, Pro Painter, featured Lowe in its Spring 2013 issue, in an article about the launch of the Holmes Referred program. At the time of the interview, Lowe was busy signing up the first batch of contractors – mostly painters – into the program. At the same time, he was still the owner/operator of Lowe Painting, which he had operated very successfully for more than 20 years.
“Craig was a generous, dedicated and talented man who was always willing to lend a hand.” – Mike Holmes
How You Can Help Craig’s Family The Holmes Group has set up a trust account for Craig’s four daughters. All funds will be used to support their future. Deposits can be made directly at any TD Canada Trust branch in Account #231 6341522 for “In Trust for John Craig Lowe.” Alternatively, cheques can be made payable to “In Trust For John Craig Lowe” and sent to: In Trust for John Craig Lowe P.O. Box 40581 Six Points Plaza 5230 Dundas Street West Etobicoke, ON M9B 6K8
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September/October 2014
During the interview, Lowe talked passionately about why he loved the painting business, how he had followed in his mother’s footsteps (she was a decorator), and how much he enjoyed training painters on techniques, business skills and – above all – exceptional customer service. The Lowe Painting website endorsed by Holmes states that “Lowe Painting has been the trusted painter for Mike Holmes’ hit TV shows since season 1 of ‘Holmes on Homes.’ Our work has been featured on over 100 episodes.” Mike Holmes said in a statement: “Craig was a generous, dedicated and talented man who was always willing to lend a hand.” Lowe is survived by his wife Kaley, and four children: Sydney, Alexa, Ryley and Lainey. A celebration of Craig Lowe’s life took place at Campbellville, Ont. on Monday, August 18th.
www.canadiancontractor.ca
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INSTALLED SALES
Built To Last Installation services can help dealers cement relations with customers and contractors. But their programs—with lower margins and oversight—aren’t right for every pro. By Jo hn Caulfie ld For most of its 14 years in business, BPL Contracting in Burlington, Ont., has been getting homeowner referrals for residential installation and repair projects through local Rona stores. The company started out doing small jobs, and now it does just about everything, including renovations and additions, as part of the installation services program offered by three Rona stores in BPL’s market. BPL also picks up overflow work from two other Rona stores. “They’ve given me a lot of business over the years,” says BPL’s owner Ben Lewis, about this arrangement. And that business has grown: five years ago leads from Rona
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INSTALLED SALES
converted into between 50% and 60% of BPL’s annual sales; now, they represent between 35% and 40%, but only because BPL’s overall revenue has increased, which Lewis says its connection with Rona helped. (BPL generates between $750,000 and $900,000 in residential installations annually.) Working through a dealer isn’t always ideal, though, and requires compromises, Lewis admits. Dealers set prices for certain projects, like replacing a toilet, on which the contractor makes little money. On occasion, Rona has told Lewis his labor is too pricey, to which he has responded sardonically “are you going to lower your margins, too?” (Lewis and the stores agree on his materials and labor costs before the stores figure out their final price, which Lewis says he never sees.) And while each store has an installation services manager, Lewis gets frustrated because Rona doesn’t always have enough staff to promote installation services aggressively. Installation services are growing businesses for Rona, Home Hardware, Home Depot Canada and Lowe’s Canada. Homeowner demand for so-called “do it for me” services is increasing, say these companies, as a certain cohort of customers will pay more for convenience, warranties, and access to financing. And while dealers and buying groups guard the secrecy of their markups and margins like they were nuclear launch codes, the consensus among contractors is that installed sales are highly profitable for dealers that offer these services. These dealers run the risk, of course, of being seen as competitors to their pro customers. (That’s why most pro-oriented dealers don’t offer installation.) Then again, there are always going to be contractors, especially those with established reputations in their markets, who can’t see much value in becoming an installer for retailers or buying groups and probably making less money per project but with more supervision. Some pros are also still licking their wounds after Sears Home Services (SHS) went bankrupt last year and stiffed its installers. The question that contractors wrestle with, before they sign on as installers with any big dealer, is whether higher volumes of work will offset lower profit, a very retail-like equation that’s alien to a lot of pros. Entrepreneurial contractors who are used
to calling their own shots also must accept that installing for dealers means submitting to extensive background checks and project management protocols.
A modest but growing market share The plusses and minuses of dealers’ installation services programs are set against a backdrop of Canadian homeowners who are more avid about remodeling. TD Economics estimates that renovation spending hit $12 billion in 2013, and should increase by 2.7% this year. A recent survey of 20,000 Canadians by Houzz, the online remodeling and design platform, found that fewer of them are moving, and 56% cited increasing their home’s resale value as the motivating factor for remodeling. Home-improvement retailers with installation services are capturing a small but increasing portion of this renovation pie. Atlanta-based Home Depot reported that “installation, home maintenance, and professional services” accounted for 4.4% of its revenue in 2013. Assuming consistent activity, that percentage equaled an estimated $227 million for its Canadian stores. Home Depot continues to automate this service; for example, it has been rolling out “Install to Go,” which allows installers to accept payment from customers on their mobile devices. Customers can follow the progress of their projects online. And Depot recently completed the integration of its kitchen cabinet refacing and floor plan businesses into installation services. “Our job is to simplify the process,” says Jamal Hamad, director of installation services for Home Depot Canada, which offers more than 40 installation programs along with design consultation on such products as countertops and flooring. Lowe’s Canada declined to comment for this article. But its North Carolina-based parent company reported that installed products and labor represented 7% of its total revenue in 2013. That percentage equaled an estimated $46 million for its Canadian stores. On its website, Lowe’s highlights several benefits for installers certified under its program, including consistent and reliable workflow, fast payment terms, reduced sales and marketing costs, and vendor-sponsored training.
Home Depot has been rolling out ‘Install to Go,’ which allows contractors to accept payment on their mobile devices
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INSTALLED SALES
Rona and Home Hardware don’t break out installed sales. However, both say their programs are trending, so it’s a safe bet that they, too, are capturing tens of millions of dollars in homeowners’ remodeling and repair spending. Home Hardware launched its Home Installs program in 2000, and has 190 Building Centre dealers enrolled. It’s been adding 10 to 15 dealers per year for the past several years, says Martin Pitts, Home Installs’ manager. In its advertising, Home Installs stresses one-stop shopping, “often with one person from conception to completion,” says Pitts. Home Installs also offers design assistance, and detailed written contracts with guaranteed pricing upfront. Rona launched its installation services nationwide in 2007, and currently about 200 dealer-members participate. The service is also offered in all of Rona’s big boxes, and 27% of its proximity stores outside of Quebec, a province where the buying group sees growth opportunities because Quebec’s renovation tax credit requires homeowners to use qualified installers. Greg Thomas, Rona’s national director of installed sales, notes that a recent survey of homeowners who purchased installation services through Rona found that 90% were “satisfied” with the completed project. (That compares to 81% who were “highly satisfied” in 2013.) The greatest homeowner demand is for bathroom renovations, says Thomas. Rona draws from a network of more than 1,200 installers across the country. Its arrangement with BPL Contracting is typical, although Thomas points out that a handful of installers handles fewer products for more stores. One example is Thomson Industries in Port Coquitlam, B.C., which does all of the HVAC systems installations for customers of Rona’s 30 stores in that province. Todd Thomson, the installer’s owner, has been working with Rona for more than seven years, and the referrals he gets from those stores currently account for half of his company’s residential business. “We get a lot of repeat business from this arrangement,” says Thomson. “Customers who buy from Rona usually stick with Rona.” And he believes, more broadly, that homeowners prefer dealing with retailers for installation services because “of their size, their warranty, Air Miles, and the financing.”
Subs get a thorough vetting As Canadian Contractor was preparing this article, Holmes Referred Contractors, the much-ballyhooed online search platform with the imprimatur of celebrity contractor Mike Holmes, announced that it was ceasing operations on July 15, after only two years in business. The Holmes Group said it wanted to focus on its other major programs. But the decision to shut down Holmes Referred could only perpetuate the “here today, gone tomorrow” perception that some homeowners harbor about contractors. It’s also hard for reputable contractors to separate themselves from persistent tales of padded billing and shoddy workmanship that continue to haunt the remodeling sector, especially among homeowners who fear they’ll have no recourse if a project goes awry. “There’s been so much bad publicity [about contractors] that people just feel safer dealing with retailers,” observes Lewis of BPL Contracting. “It’s been my experience that Rona bends over backwards for customers; that’s what people are paying extra for.” Not every contractor sees retailers as being so benevolent, least of all pros who got clipped when SHS—which took over Sears Canada’s installation business in March 2013—went under last December. One contractor, Sears Carpet Cleaning in Coquitlam, claims it is owed $364,000, according to a Global News report in May. The irony is that Sears Canada has gotten back into offering carpet cleaning as a service, says its spokesman Vincent Powers. He adds that Sears would consider licensing its name for installation services again in Canada, but only if it got guarantees from the installers it used about their financial stability. Trevor Bouchard, who owns Guelph, Ont.-based Quick Contractors, a national network of 600 qualified pros, says his installers lost “a couple hundred thousand dollars” from the SHS debacle. But that setback didn’t sour Bouchard on the advantages of reaching homeowners through retailers. Quick Contractors was the first company to install appliances for The Hudson Bay Co., and one of its largest clients today is Home Depot Canada, for which it coordinates the scheduling of
RONA draws from a network of more than 1,200 installers across the country, while Home Hardware has about 200 dealers doing installed sales
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INSTALLED SALES
installers for a variety of products that include appliances, storm doors, central vacuums, garage doors and water softeners. One of the reasons retailers like dealing with third-party service providers such as Quick Contractors is they reduce the risk of hiring contractors whose financial, business or personal backgrounds might be shaky. The fact that the installers they use have been extensively vetted is a major selling point in these retailers’ marketing. Rona’s vetting process, though, varies by dealer. Rona, says Thomas, puts installers through a corporate background inspection that includes making sure they are financially viable and have insurance. Rona representatives even visit potential installers at jobsites of completed projects. Thomas says this process is so thorough that stores sometimes complain it takes too long. Each qualified installer is issued an ID card as a Certified Rona Contractor. Home Hardware’s stores are responsible for checking installers’ backgrounds. Software provided by the buying group includes annual contracts “to ensure proper compliance and competence, says Pitts. Before they hire any installer, Home Depot Canada and Lowe’s Canada run them through outside agencies—Sterling BackCheck and Baeumler Quality Construction, respectively—that specialize in criminal and financial background scrutiny. (Neither agency returned phone calls requesting comment about their services.) Home Depot Canada manages its installation services program, with more than 4,000 installers nationwide, through 300 companies that act as its general contractors in different markets, says Hamad. The largest of these appears to be Peak Installations, which coordinates the retailer’s national programs for windows, doors, roofing, gutters, siding and insulation. (Through a spokesperson, Peak Installation declined to comment about its relationship with Home Depot Canada.) Bouchard of Quick Contractors explains that retailers often prefer to work through fewer, larger contractors because it gives them more consistent reporting on which to benchmark installers’ performances. It also gives the retailers the ability to costaverage projects on a national basis, which benefits homeowners in sparsely populated markets.
Another of Depot’s general contractors is Coquitlam, B.C.based Blue Ocean Construction. “We’re very particular about who we hire,” says its president and owner Mike Merakian. He prefers working with pros from established companies with five to 10 years’ experience. Some of these companies may be one- and two-man crews; others are much larger. The one trait they have in common, says Merakian, is “they’re all ambitious.
An expanding partnership Blue Ocean, which celebrates its 25th anniversary later this year, is a case study in how a contractor can bolster its business and market position by participating in a dealer’s installation services program. Five years ago, it approached Home Depot Canada, mostly as a stopgap when business was softening during the recession. Depot handed Blue Ocean 40 projects that had gone sideways for three of its stores. The successful completion of those projects without customer complaints led to more referrals, to where Blue Ocean is now the exclusive installer of interior projects for all 43 of Depot’s stores in western Canada. In 2011, it added exterior painting to its services for Depot’s 12 stores in Vancouver, and has since expanded painting to 14 more stores in western provinces. Over the past two years, Blue Ocean has deployed project management software that requires subs to submit permits, in-progress pictures of projects, and so forth. This provides Blue Ocean with backup documentation in case there’s a problem with a job or the sub. “Depot’s installed sales program is very sophisticated, and the only way you can get through it is to develop your own detailed management system,” says Merakian. He describes Blue Ocean’s arrangement with its installers as being like a franchise, as they pay his company a flat fee for the work assignment based on the project’s value. (Merakian declined, for competitive reasons, to quantify the fee structure.) When pros squawk about these fees, Merakian is quick to counter by stating that the volume of jobs they get more than justifies the upcharge. “There is no way that most of these guys could get that kind of business on their own,” he says. cc
Home Depot Canada has more than 4,000 installers working for it across Canada, through 300 different companies
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INSTALLED SALES
Outside of its Envelope Canadian Tire’s installed sales program isn’t limited by its stores’ inventories.
Canadian Tire’s three-year-old Home Services program stands out from
home organization, and painting. Dwight Robinson, Home Services’
for installation leads and requests from pros to become installers. In
other retailers’ installation services in
roofing manager, says that Canadian
addition, financial services is where
that it offers installation of products
Tire uses about 400 contractors for
homeowners can secure project
that its stores don’t sell.
this part of its program. It draws from
financing that Robinson says sets
its suppliers’ network of preferred
Canadian Tire’s program apart from
which was launched in the fall of
contractors, as well as independent
other dealers’.
2011, is actually two programs: the
pros in local markets, such as
first offers installation of products
Toronto-based Avenue Road Roofing,
holders of Canadian Tire Options
that the retailer’s 430 outlets carry,
which is a consultant to Canadian
Master Card qualify for 36-month
such as garage door openers,
Tire’s roofing business as well as a
interest-free borrowing. Canadian
plumbing, garden sheds, gazebos,
provider of installers.
Tire also offers 12-month interest-
Canadian Tire Home Services,
window air conditions, central vacuum systems and flatscreen TVs. This service is available
Robinson says Canadian Tire is
On purchases of $500 or more,
free financing on purchases of $200
still “tweaking” this latter program,
or more. Each requires monthly
which currently is at different
payments. Homeowners can
chainwide, and installation is
stages of being rolled out in various
also apply for loan financing for
scheduled and managed by Quick
markets. (HVAC, roofing, and
amounts in excess of $1,000 through
Contractors, the Guelph, Ont.-based
windows and doors have the highest
Canadian Tire Bank for terms of
company with about 600 pros in its
demand for installation.) “Our
three to eight years, depending on
network.
intent is to get as much coverage
the size of the loan.
The second pillar of Home
as we can,” says Robinson, noting
Canadian Tire promotes Home
Services, which Canadian Tire
that finding reliable contractors in
Services through its weekly flyers
piloted last year, offers installation of
a given market will determine the
that reach 12 million households
whole-house HVACs systems, as well
program’s expansion.
across Canada. It’s also promoting
as a raft of home interior and exterior
Canadian Tire Home Services
the services online, although
products such as doors and windows,
operates under the company’s
Robinson acknowledges it takes
roofing, carpeting and flooring,
Financial Services division, whose
longer to build a customer base
custom closets, kitchens and baths,
call center is often the starting point
that way. cc
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29
CONTRACTOR U
Coaching contractors An interview with Mike Draper, vice-president of coaching, Renovantage
What do contractors need help with most? Lead generation is one of the things people look for from us, and business coaching, too. We look at a contractor’s business and how they are running it today. Cash flow is another issue. Are they having trouble collecting the first cheque, for example. How is their cash flow? We’ll look at how a contractor is running the business, how he is handling collections. Contractors also want to know how to improve revenues. Some businesses Photo: Larry Arnal
bounce up and down in their revenues from month to month, or year to year.
MIKE DRAPER is the vice president of coaching for Renovantage,
Most of them would like to stabilize that. We would like to see them
a consortium of contractors, trades people and suppliers striving
double their revenues. It is possible to do that with less effort than you
to brand themselves as the industry go-to professionals. Mike also
might think.
regularly contributes his column, Contractor U, to this magazine. Contributing editor KIM LAUDRUM caught up with Mike to seek his
What obstacles are there?
advice for contractors who want to improve their business practices
One of the biggest challenges is the contractor has to be willing to
and their profitability.
make the change, if they want to improve. If you keep doing what you’ve always been doing you can’t expect a different outcome. If they want to grow, they can grow.
Why might contractors need to know how to differentiate themselves in the marketplace?
I liken it to a gym membership. If you join and go, you will see a difference. If not, you won’t.
To improve competitiveness in the marketplace it’s important to develop trust with the customer. Renovantage is striving to provide a
Where do contractors need the most help?
brand that the homeowner can identify with. If the contractor can say,
The business coaching is the biggest part of our program because it
“A third party vetted me out,” it will give the customer more reason
can help a contractor find areas where they can tweak things a little
to trust that contractor. The homeowner can make a decision based
and realize a big difference. For example, the key to making more
on something more than just price. That translates into improved
sales is not necessarily in generating more leads, but in closing
profitability for the contractor.
more of the leads that you have. You can double your business that
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September/October 2014
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CONTRACTOR U
way. If you only close 10 per cent of your leads and you have 100, you
cash flow issue could be a problem.
will close 10. If you only have 20 leads, you will close two. But if you increase the percentage of leads you have from 10 per cent to 20 per
What are the best ways to grow a contracting business?
cent, it doesn’t matter how many leads you had, you will double your
Increasing the conversion rate of leads to projects they win will
business. Of those 100 leads, you will now close 20. Of those 20 leads
help them grow. If you convert an additional one out of four leads to
you had, you will now close four instead of two.
accepted projects, you will see a 25 per cent increase in business. It doesn’t sound like a big improvement but it is. And every contractor,
What if you are a better contractor than salesperson?
regardless of size, faces this challenge.
There are two things you can do: One, improve your salesmanship, or, two, find a salesperson. Not every contractor wants to be a salesperson. Every contractor has
How can contractors improve their profitability? Producing the work at the price that you estimated within the
his own personality. We work with them at Renovantage to help them
timeframe the contractor thought it would take is the key to
do what they like to do.
profitability. However, time, which the contractor can’t always control, affects profitability on the job.
Tell me about the type of coaching you find works for contractors?
The most profit is made the day you sell the project and it goes
There are one-hour webinar sessions offered to groups; three-hour
down from there. So controlling the project is important in keeping
face-to-face coaching sessions offered monthly; and private, one-on-
your profitability.
one discussions tailored to the contractor’s specific needs. These are one hour long. The group coaching sessions are more generic, something of
That’s the other thing about coaching: helping a contractor reach his goal is hugely satisfying for me. So many contractors work so hard and aren’t really fairly compensated for how many hours they put in.
interest for everyone. Most get the most benefit from one-on-one coaching. But they have to be patient. It takes time to see change.
What types of systems do you recommend contractors have in place to help them streamline their business practices?
Can you give some examples of the best practices you might cover in
They need a template of a renovation agreement. Renovantage
these sessions?
offers a seven-page renovation agreement that has been through
Some can be adopted easily and will help them grow. For example,
lawyers and used hundreds and hundreds of times. We don’t charge
it’s a good idea to incorporate systems into your business. How do you
for it. That’s an example of a best practice they get right away.
answer the phone? If you are busy when a potential customer calls,
A Sales-to-Production Hand-off Checklist is also handy. We provide
say, “I’m on a job site right now. When would be a better time to call
that as well. It tells everything the customer is expecting so there
you back?” And then make sure you call them back at that time. Why
won’t be any surprises.
wait two days? By then, they’ve moved on to someone else. But you would be surprised by how many people don’t do this.
Cash-flow Statements are an essential tool for ensuring there will be enough money to pay for sub-trades and materials, and to finishing the project.
Do you find the size of the company matters?
An Income Statement and Balance Sheet shows the contractor
Typically the company we cater to is in the $300,000 to $1-million
exactly where they are in terms of reaching their goals. It also helps
range. You might think the smaller companies need the most help,
them identify quickly if they might be getting into trouble.
but that’s not necessarily true. Take cash flow, for example. That’s the
Valid WSIB Clearance is important to the customer and a good way
biggest issue for almost everyone. It still amazes me to this day how
to help a contractor differentiate his company from others. We make
much money runs through a contractor’s hands so quickly. They might
sure Renovantage members have valid WSIB clearance and that
run a job worth $100,000. That will be in their hands for a second
they have paid their fees.
before it’s paid out again for trades and materials. As companies become bigger, cash flow becomes more of an
So, what you are really offering is advice on how to improve their
issue. For example, on a $10,000 bathroom renovation, 10 per cent
business practices?
withholding is not much of an issue. But for a $100,000 project, the
Yes. Most contractors get into the business because they are good at
withholding would be $10,000. Unless they implement change, the
renovating. They need to know the business side as well. There is a
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September/October 2014
31
CONTRACTOR U
lot to that, including finance, sales, and marketing.
fault, he is asked to fix it, which he can do to the mediator’s satisfaction. If the contractor refuses, the project then goes to arbitration, a
What are some of the pitfalls contractors should avoid?
final and binding process. If the contractor is still found at fault and
The tell-tale signs of customers who contractors should avoid are:
refuses to make it right, Renovantage will step in and fix the problem.
• The customer is unwilling to provide a deposit
The homeowner is protected up to $25,000 in such disputes.
• The customer wants to pay in cash • The customer is not willing to sign an agreement
That’s quite the guarantee for homeowners, isn’t it?
• The customer wants to use their own trades
Yes it is and it’s one of the benefits we offer our contractors. By the
• The homeowner is part way through a renovation and is looking for
time the contractor gets a lead from our website, they know the
a new contractor
customer has seen the guarantee. It’s a good way for the contractor
When you see a series of red flags coming up, realize there is cause for concern. The contractor might still find reason to take
to differentiate his company from the competition. It’s one of the best guarantees for homeowners in the country.
the job. Is it strategic? Is it a new neighborhood where he wants a foothold? Then maybe it’s worth considering. But most of the time it
How did Renovantage get started?
is best to just walk away.
This is our fourth year in business. Greg Peterson, who is the president and my partner in Renovantage saw a need in the
Why is it best to just walk away from some jobs?
contracting industry for a business model built on coaching. We
It’s a Catch-22 situation for the contractor. While he is working on it,
approached contractors to determine what they need help with most.
it takes him away from looking for better customers willing to pay
They told us they needed help with lead generation, purchasing at
higher margins. If there is no profit, there is no point.
lower costs, and a way to differentiate themselves for marketing.
What are the benefits to homeowners of working with a
another and, more importantly, don’t have to compete for customers
company like Renovantage?
based solely on price.
Their territories are exclusive so they are not competing against one
We offer a one-stop shopping experience at our Design Center where contractors can bring homeowners to work with an interior designer.
Tell me about some of your success stories?
The homeowner can shop for fixtures from suppliers at three different
Jerry Stockla, owner of Newtech, a renovations company in Ajax, Ont. is
levels — affordable, mid-level and high-end — for their renovation
one. He was featured in a story in Canadian Contractor two years ago.
project. Working with the interior designer, they can build a
He helped a homeowner who, after two contractors in eight months, was
storyboard, which completely streamlines the service to the customer.
$70,000 in the hole. All the homeowner had to show for it was inhabitable
The design center enables the contractor to sell a product they couldn’t sell before. When a contractor sells the kitchen to the
home on a rocky foundation. Stockla stepped in and helped out. Last renovation season one of our contractors won a contract
homeowner they make a profit on it. Renovantage has a group-
for a $1-million project in Don Mills. They exceeded their own
purchasing program that allows us to offer the product at a good
expectations. They are doing better business now and make more
discount to the contractor, who then marks it up to the customer.
money year after year.
What do you do if there are disputes between the contractor
Why doesn’t every contractor belong to Renovantage?
and the homeowner?
It’s not cheap. It costs between $395 and $1,495 month, depending on
First of all, we do our due diligence before a contractor becomes
what features they want and how fast they want to grow. Do they
certified with Renovantage. We make sure the person has not gone
want small changes or big changes?
bankrupt before, for example.
A lot of people don’t want to change. They are happy with their
When there is a dispute, say the customer calls us to let us know
business the way it is. Most contractors aren’t working to build a
they have a concern with the contractor, we ask them to fill out a
business they can sell. But one of our contractors recently sold his
dispute resolution form. We then send a mediator to take a look at the
business in Edmonton for $500,000, so I think it’s worth it. cc
work under dispute. The mediator meets with the homeowner and the contractor to discuss the issue. If the mediator finds the contractor at
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www.canadiancontractor.ca
Kim Laudrum is a frequent contributor to Canadian Contractor.
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CREATIVE EYE
Maison Demers La SHED Architecture Four urban duplexes in Montreal are stunningly renovated
URBAN COURTYARD
By Kim Laudrum The task was to transform one of four duplexes that encircle a common courtyard accessible from a single carriage entrance. Montreal design team Yannick Laurin, Sébastien Parent and Renée Mailhot — all now with La SHED Architecture — renovated one of the duplexes into a single house and reformed the three other yard facades. Enterprises Audéa served as contractor. A large wood mass structure defines the space and is key to the layout of the house. The sculpted block is placed in front of a wide white painted brick wall. The stairs appear to be cut out of the wood block. “We had to get a very good reading on this wooden shape and the stairs before building it,” Laurin said. The ceiling is recessed, painted grey and runs in a straight line, delineating the kitchen from the dining room. It hides all the mechanics and structural beams. The garage door in the dining room opens out onto a terrace, adding an outdoor room to the space. Laurin explains that a sliding door would not have the same clean lines the garage door offers. The passageway between the street and garden was painted bright yellow for easier access from outside the courtyard. From the street the yellow pops on the wall and gives the yard a retro vibe.
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CREATIVE EYE
All Photos: Angus McRitchie
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CREATIVE EYE
Maison Demers
La SHED Architecture
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September/October 2014
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All Photos: Angus McRitchie
CREATIVE EYE
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CREATIVE EYE
Cedar Cresent 1920s Brick Home Renovation Westmount, Montreal By Kim Laudrum This late 1920s brick home in the leafy Westmount neighbourhood of Montreal lacked a consistent look after a succession of mismatched renovations when then-newbie architectural team La SHED intervened. “The project was to create a new bedroom and redesign the rear part of the house to make it current, yet harmonized with the existing part of the house,” said architect Yannick Laurin who, along with partners Renée Mailhot and Sébastien Parent, designed the project for La SHED, which they formed in 2011. Enterprise Audea Inc. was the builder. The budget was $300,000.
PERFECT
HARMONY Blending traditional and contemporary design
They opened up the first floor and widened the opening to the back yard. An iconic house shape, which forms the back wall, fits with the traditional aspect of the house, yet gives a contemporary feel. The wood paneling in the hallway from the bedroom to the bathroom is the same material as the flooring in other parts of the house. Wide pocket doors that disappear when opened allow light to get through from the large bedroom window. There are no mouldings, no trim details that get in the way.
Before
The main bathroom design earned La SHED Quebec’s Grands Prix du Design award last year. Using a soft grey, neutral palette in mosaic tile allows the eye to be drawn to the window and the treed space outside. With the vanity elevated from the floor, the eye also extends out to the walls, creating a visually large space. The large glassed-in shower area and deep soaker tub add to the luxurious feel of the room. The transformation of this grande dame is a stunning blend of contemporary and traditional design.
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All Photos: Angus McRitchie
CREATIVE EYE
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September/October 2014
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FEATURE
FROM PILOT
TO CONTRACTOR John Bleasby is a retired commercial pilot. He’s also a contractor – a self-confessed rookie one – building his own home near Coldwater, Ontario. Read about his first solo as a builder at canadiancontractor.ca. Type “Pilot” in our search bar.
Editor’s Note: This article is based on the first few blogs that John Bleasby posted. They have been consolidated and edited for print publication. John, 61, owned and operated Stanton Air, a float plane air charter service in Ontario, that he sold in 2007. Of his switch to homebuilding, John said that he did have some transferable skills in organization and “understanding time lines” that have stood him in good stead. “The aviation industry, flying an aircraft in particular, demands planning, attention to detail and the ability to anticipate what might happen next. I find that the discipline I learned as a result of my professional aviation experience has helped me stay focused, not just on the current moment but also on what needs to be done next.” By John Bleasby
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FEATURE
“You can do this – you’re an organized fellow. You don’t need a general contractor.” I was sitting in the home office of a veteran supplier of commercial building products who had seen it all. He was serious but I was doubtful. It’s one thing to be a retired guy with time on his hands, someone passionate to see his house built just so. But could I really take the bull by the horns and research and contract all the various pieces of the puzzle? I thought, maybe this was the new business adventure I’d been waiting for. Maybe if this worked out, I could hang a shingle and offer site supervision to other projects, strictly on a fee basis, not a percentage. It certainly would be a different approach than the industry norm; but heck, why not find out if my ideas work on my own house first? I was really left with little choice anyway. For several months I had tried to motivate a local contractor about the project. But after several meetings it was clear that not only was I more interested in the project than he was, I was also more willing to embrace some of the new construction technologies like ICF. We’d started talking in August and it was now December, with little resolved. It was time to move on if my wife and I were to move in before Thanksgiving. I anticipated raised eyebrows when I started making my first calls, but I was armed with architectural drawings from a respected local designer and a rudimentary grasp of construction lingo. And I had hired a trusted friend and master carpenter to be my ‘eyes and ears’ throughout the planning and execution of the project. And, yes, I was organized. This was instinctive; I’m a retired commercial pilot. I’m used to checklists. Flight safety
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Pilot-turned-contractor John Bleasby, as a newcomer to homebuilding, had few preconceptions about “new” technologies. He says using ICFs (Nudura brand, in this case) instead of poured concrete foundations was one of his best decisions.
Bleasby blogged at canadiancontractor.ca that the longest of his two steel I-beams, when delivered, measured 15-inches short of its specified 38-feet. “My professional background in aviation doesn’t like mistakes,” he quipped. The correct beam arrived 24 hours later.
As a former pilot, new to contracting, John Bleasby says he "anticipated raised eyebrows” when he started phoning trades people to come and work for him. However, a trusted friend and master carpenter was his “eyes and ears” at all times.
www.canadiancontractor.ca
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FEATURE
demands precision and accuracy. And once I sat down face-to-face with the trades, showed them I was serious, had a plan, a schedule and the money to pay deposits as required, they took me seriously.
Pay Everyone on Time! Pay everyone on time! For me, given my background, none of this was rocket science. It was the same disciplined approach I would use when running any other project or business or even flying a plane. I was off and running! At time of publication, I have posted 18 blogs about the various stages of my home’s construction. And I’d love to hear your comments. Scratch the surface and it’s not very hard to find the little boy in almost every man. The arrival of the big machines and the start of excavation were definitely exciting. Although I had hoped to start on April 1st, the weather had the last laugh. The winter of 2013-2014 forced a two-week delay or we would have had a quagmire on site. Day 1 saw the excavator arrive and scrape away the remaining snow and move the topsoil to the side. Day 2, the surveyors came in to plot the excavation outline, enduring the last of our blinding snow squalls of the season. This extra six inches of snow meant that when the excavator returned for Day 3, the new snow had to be scraped away again! Nature can be a Mother! Powerful engines and big scoops of earth are one thing, but Andy, the excavator operator, was a true ‘artiste.’ With his assistant Kim holding the laser level, Andy carved out a flat, perfectly smooth excavated floor for the foundations in a matter of a few hours. The surveyors returned to ‘pin’ the footing locations right after the Easter break, and the Nudura ICF product was delivered
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September/October 2014
Almost every phase of John Bleasby's new home build has been documented at canadiancontractor.ca. Bleasby is frank and honest about his inexperience as a contractor, but he also demonstrates an attention to detail and a wry sense of humour that makes fun reading.
Bleasby's blog has attracted a loyal readership online. A few posters have been critical: arguing that you can’t be a rookie general contractor homebuilder, successfully. But Bleasby had to do his first solo take-off-and-landing as a pilot, too.
the same day. Forming for footings began immediately… Laying out the footing forms was done in coordination with the trades so that required pipes and conduits could run under the basement and garage floors However, here’s where my early contracting of trades and inter-trade coordination was going to pay off, aka ‘Foresight versus Hindsight.’ The plans call for a mechanical room in the very centre of the basement for the furnace, water heater, well pump, sump, overflows and electrical panel. All need conduits leading under the basement floor. The building’s flat roof and resultant internal water drainage system requires multiple
www.canadiancontractor.ca
ABS pipes to carry the rainwater down from the roof, below foundation level, and away from the building. Since each trade had examined the drawings previously and came to the site prior to the footings being poured, we were able to work together to develop a splendid plan to deal with the network of piping. And, as I had suspected, if you pick the right trades people and give them the opportunity, they will be happy to use their innovation and skills. cc Read more at canadiancontractor.ca. Type “Pilot” in the search bar to see all of John Bleasby’s blogs, which are ongoing until his home is complete.
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CEDAR
The art of cedar sidewall shingling Page 50
P RO D U C T S , T E C H N O L O G Y & T I P S F O R C O N T R AC TO R S
MASTERING
STEVE MAXWELL’S
STUFF WE LIKE
THE END OF OIL
MAXWELL’S MIND
THE END OF OIL By Steve Maxwell
My earliest memory of gas prices goes back to 1973 when my parents filled up our family car for 39.9 cents per gallon. Adjusted for inflation, that’s $2.12 per Canadian gallon or about 47 cents per litre. Imagine paying $40 to fill the tank on your work truck instead of the more than $100 it costs now. That’s where we would be today if fuel prices had matched inflation, and this painful situation isn’t going to get better. The world economy is utterly dependent on finite supplies of fossil fuels, and contractors are more dependent than most. Where would you be without a honking-big vehicle to lug around the tons of tools you use every day? The reason we continue to pay so much for gas and diesel is because it’s the only practical game in town. At least for now. But financial pressure is mounting, and this means new work truck technology is on the horizon. Ford is quietly testing hybrid F-150s. All-electric pickups have debuted at major auto shows. Battery-powered mining vehicles are at work underground right now. Even Harley Davidson has released electric motorcycles for test drives to get rider feedback. If you’re still skeptical that the end of the oil age is hurting, read Jeff Rubin’s book Why Your World is About to Get a Whole Lot Smaller. Rubin’s a Toronto economist who presents so much hard evidence that crude oil supplies are dwindling that I can’t imagine how anyone could reasonably argue for anything else. And don’t be fooled thinking that fracking will save the world or that the tar sands will make everything better again. The question isn’t if oil will become too scarce and expensive to be practical, but rather how much foresight and ingenuity we’ll exercise redesigning the Canadian economy to meet that reality. You and I don’t have much control over how and when alternatives to fuel-burning work vehicles become available, but we can be ready to support alternatives when they show up. One things for sure, we’re never going back to 1973.
”
You and I don’t have much control over how and when alternatives to fuel-burning work vehicles become available, but we can be ready to support alternatives when they show up.
”
Steve Maxwell Tools Editor
steve@stevemaxwell.ca
www.canadiancontractor.ca
September/October 2014
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MAXWELL’S S t u f f We L i k e
MASTERING
CEDAR SIDEWALLS:
5
installation details for durable cedar sidewall shingling Cedar sidewall shingles are the most efficient and durable option I know of for creating a traditional building look with natural wood. Although cedar shingles have fallen out of favour as a siding option in many parts of Canada, where I live it’s still easy to find heritage cedar sidewall installations that look great after 50 or 60 years with no maintenance. These days you can expect even longer life using the premium installation details I’ll show you here. Besides the fact that cedar shingles are just plain fun to work with, clients with forested sites or lakeside settings will love you for suggesting them.
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MAXWELL’S S t u f f We L i k e
Walls and window openings prepped (above) for installation of drainage channel membrane. DELTA-DRY dimpled drainage membrane (right) fastened with cap staples with shingles on top. Intentional gap left around windows (far right) to leave room for caulking.
Premium Detail #1: Back-of-Shingle Drainage Moisture is sneaky and damaging and that’s why I like plan B strategies for dealing with it. In the case of cedar sidewall shingling, this means creating a vertical drainage pathway for liquid water to escape harmlessly if it somehow gets behind the shingles. I start with a vapour-permeable underlay applied to the walls for protection. It’s an extra-heavy wrap that keeps liquid water out while also allowing any trapped water vapour to pass through on its way outside. My favourite is DELTA-VENT S because it’s so much stronger and thicker than the usual sort of wraps and underlays. Next comes a dimpled drainage membrane to create an air space behind the shingles after they go on. I’ve never found anything better for cedar sidewall shingles than DELTA-DRY. The texture of this plastic material creates a vertical escape route for liquid water to drain downwards behind the shingles, if it ever gets there. Chances are it won’t, but this feature is prudent just the same. A cap stapler is the best tool I’ve found for securing both the waterproof membrane and the DELTA-DRY. Check out
my quick video at www.stevemaxwell.ca/cedar-sidewall-shingles to see how the whole drainage detail looks from below after installation.
Premium Detail #2: Stainless Steel Fasteners Despite the wide ranges of staples and nails used to install cedar shingles, 7/16” crown staples or actual shingle nails are the only options recommended by the Cedar Shake and Shingle Bureau. And though you could use electroplated fasteners, stainless steel is worth the extra trouble. It eliminates any chance of installation failure from corrosion. In fact, stainless is the only recommended option for installations within 25 km of salt water. Although I’ve tried buying 7/16” stainless steel staples locally, I’ve never found a reasonable option. That’s why I order mine online from Fasteners USA (www.fastenerusa. com; 877.593.2723) All shipments have arrived fast and duty-free so far. Nails are good for occasional use where the gun can’t get into tight quarters, but staples are at least as strong and go down faster.
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MAXWELL’S S t u f f We L i k e
Woven outside corners (left) create a clean and weatherproof installation. Fancy shingle installation (above) adds visual interest to sidewall installations. Temporary alignment strip (top left) held in place with 23-gauge pins. This heritage shingle installation (top right) is more than 100 years old. Metal flashing (bottom right) boosts weather resistance above windows.
Premium Detail #4: Fancy Shingle Details
Premium Detail #3: Woven Corners One way of tackling cedar shingle corners involves vertical 1x6 cedar boards that butt against each other in the corners, but I prefer weaving shingles over each other over outside corners. Shingle along one wall until your last shingle sticks beyond the corner of the building by 1” or so. Place another shingle on the adjoining wall against the first shingle’s edge, flush with its bottom and plumb. Trace the angled profile of the adjoining shingle of the second wall onto the protruding shingle of the first wall. It’s easy to use a handsaw or a block plane to trim away the excess wood. You’re good to go when both shingles fit snugly together in the corner. As a final step before fastening the second shingle to its wall, bloop a little construction adhesive onto the 90º joint between the two shingles and secure it with a couple of 23-gauge pins. These hold the shingles together until the adhesive dries, yet they’re almost invisible. Chisel off excess glue once it’s hardened, then use a block plane to remove any excess wood that extends beyond the corner. Repeat this corner weaving process for every course as you advance up the building, alternating the side that the joint appears on each time.
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Installing courses of fancy shingles is one of the best ways to make a cedar sidewall installation exceptionally beautiful, and the process is easier than it looks. Start by ripping a bunch of shingles to a consistent width on the tablesaw before cutting them to the profile you want. I usually saw to a 5” width. My two favourite shapes are the half-round fish scale and the 60º point. I use a bandsaw in the shop to cut the half rounds and my chopsaw swiveled over to the 60º mitre setting to cut each side of the points. The main thing to remember about fancy shingles is that they need to be installed with the centre of each shingle above the joint between two lower shingles. Watch my video at www.stevemaxwell.ca/fancy-sidewall-shingles to learn more.
Premium Detail #5: Window Flashing and Sill Protection Talk to any window replacement contractor and they’ll tell you that small water leaks around windows account for more hidden wall rot than most builders realize. That’s why I like to waterproof the bottom and sides of window openings with drainage pans and ice and water shield, with traditional metal flashing on top. The installation flange on the outside of windows just isn’t enough to reliably keep water out on its own. For projects that just don’t look right with vinyl siding or prefinished boards, cedar shingles offer a long lasting, low maintenance siding option that deserves to be used more often. Try them and you’ll see.
MAXWELL’S S t u f f We L i k e
Choosing Cedar Shingles Most cedar shingles in Canada are milled from western red cedar, but eastern white cedar is my favourite shingle wood. It’s physically harder than western cedar, it splits less, it weathers to a lighter grey, and I’m told it’s more rot-resistant than western red. My favourite source of white cedar shingles is an outfit in New Brunswick called Balmoral Cedar (www. balmoralcedar.com; 866 826-2095). They sell top quality shingles delivered by courier to most building sites. Next, choose your shingles’ grade and butt-thickness. Thicker shingles last longer and the ones I like measure almost 1/2”thick at the thickest end. Extra butt thickness makes them more resistant to wearing out from weather, and they’re less likely to curl and crack in the sun, too. Another feature worth paying for if you want a crisp, precise finished look is something called rebutting and resquaring. This is an extra operation that’s completed at the mill, ensuring that the bottom ends of each shingle are sawn perfectly square to the sides, making for a more precise finished shingling job.
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MAXWELL’S PICKS
DEWALT Electric Framing Nailer The main thing wrong with air-powered framing nailers is the hassle of the hose and compressor, and solving this problem elegantly and quietly is what the DEWALT DCN692 does so well. It’s the world’s first all-electric framing nailer and it quietly and reliably shoots nails from 2” to 3 1/2” long. Weighing in on my shop scale at 9.7 lbs. with a 4.0 amp hour 20V battery on board, I first tested the single-speed version of this tool in the -10ºC temperatures of a February Canadian framing job. Although not quite as powerful as an air nailer in super-hard wood, it works perfectly in all sawn lumber and plywood. It’s also cheaper to operate and requires less maintenance than other hose-free nailers. The newer two-speed model I’ve been using this summer allows you to throttle back on power when shooting shorter nails, extending battery life. You can also bump-fire to your heart’s content with this tool. The DCN692 uses the same 20V batteries and chargers as the rest of the DEWALT 20V cordless line, including the new 5 amp-hour 20V battery that’s especially welcome on a high output tool like a framing nailer. 3 year warranty, 1 year service contract and 90-day return policy. Typical street price: $580 for the nailer, charger, one 4.0 amp-hour battery and kit box; $460 for the bare tool.
VELUX Sun Tunnel The better people feel when they’re in the homes and renovations you build, the better your reputation as a contractor will flourish. That’s one place where Sun Tunnels can help. They provide natural light where conventional skylights are hard to install, such as a laundry room, hallway or small bathroom. The VELUX Sun Tunnel is the latest evolution of an idea that became popular in the late 1990s, and I’m especially impressed with the quality of the VELUX design and ease of installation. In my tests of the low profile, 14” diameter rigid model, the base flashing and lens mounting ring are especially solid and trustworthy. The lens sits lower on the roof than similar products I’ve installed, and the reflective tube is flawlessly shiny. An optional internal electric light fixture mounted inside the tube lets Sun Tunnels brighten rooms at night or during cloudy days. Comes with a 10 year warranty on the tunnel itself and a 5 year warranty on the fixture. Typical price for the 14” rigid low profile model is $399; making for an easy upsell on roofing jobs and renovations, increasing your profitability for less than half a day’s work.
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Get it right. Make it Therma-Tru. Create customers for life when you call back with a new opportunity. Find out how at www.thermatru.ca/getitright
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5 PITFALLS TO AVOID WHEN HANDLING ‘COLD’ PHONE LEADS By Carrie Shaw
At OutRank by Rogers, which delivers digital marketing solutions to small businesses, approximately 20 per cent of the client base comes from the home renovation industry. From time to time OutRank’s renovation contractors ask for guidance on converting phone calls into paying customers. Our marketing consultants will then listen to recorded calls on request and make recommendations. The good news: most renovation professionals do quality work, and have the testimonials to prove it. The bad news: there are several common mistakes renovation professionals make on the phone. Here are five common pitfalls to avoid when handling“cold” phone leads.
1
2
3
Not answering the phone You’ve done it. You managed to turn your carefully spent marketing dollars into a phone call from a qualified prospect. But you are likely to answer the phone only 36 per cent of the time! Missed calls can’t be avoided completely. However, missing a call could drive potential customers to keep researching and find your competitors. If you can’t answer, develop a system to help manage all business inquiries to make the most of your marketing efforts.
Taking calls on the road and asking for a callback If you take a call while on the road, consider the following simple but effective practice: Pull Over! A serious
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4
prospect will provide you with details you have to record. Pull over as quickly and safely as you can to take down their details; don’t ask for a callback. Remember, in the Internet age your prospects have other options at their fingertips.
Avoiding small jobs One prospect had just sold his condo conditional on inspection. The inspection raised minor electrical problems that needed immediate fixing. The client, an electrician, hemmed and hawed when asked if he could do the work that day. First he said he wasn’t sure he could fit it in. Then he mused that he might send over a colleague. The prospect ended the call, saying he was looking for someone more decisive. Was it a small job? Probably. But someone who just sold a home could be someone about to buy a home, which could easily turn into a bigger job. Opportunity lost .
Not investing in some tire kickers Not all tire kickers are bad. Some are potential clients who are simply doing their homework. The trick is to identify the real opportunities. True price shoppers usually ask for a price immediately, but researchers aren’t only looking at cost. They’re looking for a feeling of confidence in the vendor they select. Make the prospect feel like the most important person in the world. Take time to answer their questions. Offer guidance to demonstrate your expertise.
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Even if you don’t close the deal on the spot, you will be the one they remember when they make their final selection.
5
Not knowing how your staff manages calls Knowing that your front office staff can handle any situation on the phone means you are not losing out on new business opportunities. For example, I called a new dentist to make an appointment for my four-year old daughter. The receptionist said the office only allows well-behaved children who can sit still. (What four-year old sits still?) Had this not been a business contact I would have hung up the phone, but I decided to try it. The dentist was fabulous with her, and shocked when told what the receptionist had said. How many other patients did this dentist lose as a result of poor phone skills? Hopefully you’ve thought about how to avoid these pitfalls in your business. To improve your company’s phone etiquette, start by answering the phone and be present. Listen to your prospect’s needs and respond with the right momentum to win the job.
Carrie Shaw is the marketing director for OutRank by Rogers. To contact Carrie, email cshaw@ rogersoutrank.com
TURN YOUR SMARTPHONE INTO A TIME CLOCK.
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www.exaktime.com/cnc 1.877.604.4233 1.877.604.4233 •• www.exaktime.com/cnc
WHAT WOULD YOU DO?
Three’s a crowd? John Blanchard owned Blanchard Renovations. He had been working with James Florian, a real estate agent, buying, renovating and selling houses for the past 18 months. They’d done four flips together. John was happy with the deal because, although he was more conservative than James in business matters, he trusted James’s business instincts. By Rob Koci
1. Accept the new arrangement
N
ot when it came to people, however. On their most recent flip, James suggested a partnership with a third party, his brother-in-law, Billy. Billy was a lawyer and thought he could add some value to the team by handling the legalities. In fact, he was the one to suggest they set up a new corporation with equal ownership among them. “We’re all in, we all win!” Billy said. John didn’t think they needed a new player. He and James were each making an average of $80,000
per flip. And the biggest problem for John was the fact that Billy was family to James. Past experience suggested to John that when you have a three-party agreement where two are family, at some point the non-family partner eventually gets frozen out. Not only that, Billy was a lawyer and John just didn’t like lawyers, period. Especially as business partners. So what should John do? See the potential solutions to his dilemma at right.
LAST ISSUE’S WINNER – “Family Business” In our last issue, we asked for advice to help contractor Jim Taylor with a family problem that was affecting his business. His daughter was dating his new lead carpenter Jeff who had brought in a big job for the company that just happened to be with the family of Jeff’s ex-fiancée. Jim loved the idea his family working in the business, but this was getting complicated.
D YOU DO?
ly business
or Jim Taylor has a lead carpenter, come indispensable. Now Jeff has im’s daughter, who also works in ith some storm clouds potentially eryone concerned.
wanted ly” e was
ear-old
The business was taking off, but possibly at the expense of a family train wreck! Jim was always the non-
dating Jeff, d carpenter. a great
confrontational sort, and his first inclination was not to get involved. Trouble was, he was on
e trusted,
the verge of signing a $250,000
find more quickly had to hire
reno with a client who insisted that Jeff be the site foreman. Just to make things more interesting,
office three
the client for this project was the
out. ng out out that his
family of Jeff’s former fiancé (Amy did not know). Maybe it was time for Jim to
ore serious peared to
say something – but to whom? And what should he say?
t that was as getting.
See the potential solutions to Jim’s dilemma, at right.
NER – “Roofer’s Dilemma” Last time, we asked you what you would do if, when installing a flat roof membrane, you found out that the roof deck needed to be topped off with plywood – which you had not foreseen or budgeted for. Our favorite answer was from Wally, who chose Option #4: "Tell the customer and risk him insisting it be done with no extra charges" – but at the same time explaining to the customer that NOT doing it would void the warranty for the membrane. Reputation for quality protected, lesson learned: Always have an "Assumptions Clause" in every contract (in this case assuming that the roof deck did not need replacing or sheathing).
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WHAT SHOULD JIM DO? 1. Say nothing, and let the potential heartbreak sort itself out.
2. Tell his daughter his suspicions about Jeff.
3. Confront Jeff with his suspicions.
4. Lay some personal ground rules for both, without revealing his suspicions.
WHAT SHOULD JOHN DO?
We liked Rob Sloan’s answer best. Here’s his advice to Jim: “Get professional help to carefully think your way through this very important problem. Business coaches can often bring clarity to this type of dilemma and better prepare you for any outcome. If you cannot afford one for something this important then please get out of business!” Tough words, but wise. Thanks Rob Sloan.
2. Accept the new arrangement but lawyer up in preparation for the inevitable conflict 3. Walk away and find a new real estate agent. 4. Bring in a partner of his own to make it four partners and return the partnership to balance. 5. Come up with a new business arrangement where Billy would be a partner, but have no legal decision making authority.
HOW TO ENTER We want you to pick the answer, above, that is closest to what you would do. Will pick a single winner by random draw from among the answers we like the most. If you want to give us an Option Number 6, with a completely different solution to the problem, please feel free. Please email your answers to Rkoci@canadiacontractor.ca We will send a $100 gas card to the winner.
5. Decline the job.
HOW TO ENTER
©
We want you to pick the answer, above, to what you would do. 58that is closest September/October 2014 We will pick a single winner by random draw from among the answers we like the most. If you want to give us an Option Number 6, please feel free. Please email your answers to rkoci@canadiancontractor.ca. We will send a $100 gas card to the winner.
www.canadiancontractor.ca
The Varathane® family of woodcare products The natural beauty of wood is timeless; however, you needn’t live with the same look until the end of time. Varathane’s innovative line of woodcare products will room quickly and easily. They’re also VOC compliant. For professional results and long-lasting beauty the choice is clear. Varathane – Wood’s First Choice for more TM
than 50 years. Make it – Just like new, Just like that – with Rust-Oleum®.
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EXTEND THE TREND. Darker, richer colors are a trend fueled by a passion for personality. RoyalÂŽ Building Products has the true dark exterior colors to not just match this trend, but push it forward. Your customers want to show the world (or just the neighborhood) how cool their home exteriors are, so lead the way. See how it all comes together with our online design tool.
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Benjamin Moore ProConnection® Manage your business on the go with ProConnection, the iOS app that puts product information, client profiles, weather and more in the palm of your hand. Visit benjaminmoore.com/proconnection to learn more or download the latest version from iTunes® today.
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