http://cedia.net/blog/ en-us Nucleus CMS v3.31 � Weblog http://backend.userland.com/rss http://cedia.net/blog//nucleus/nucleus2.gif http://cedia.net/blog/ http://cedia.net/blog/index.php?itemid=73 Working with Builders. Please answer the following question and explain why.

Do you contract with the custom builder or with the homeowner directly?]]> Market Issues http://cedia.net/blog/index.php?itemid=73 Wed, 16 Apr 2008 16:50:33 -0400 http://cedia.net/blog/index.php?itemid=71 Working with Builders webinar:

- In the last 12 months the General Contractor considers using me by:

A. Price
B. Quality of Service
C. Personal Relationship
D. Service & Warranty
E. Other]]> General http://cedia.net/blog/index.php?itemid=71 Wed, 16 Apr 2008 16:48:32 -0400 http://cedia.net/blog/index.php?itemid=69

- What are typical products that a builder wants as a package from an ESC?
Depends on your market. Research it, have discussions with builders, etc. Also on top of that, what type of builder are you talking about? Production, custom, etc. Segment the market.

- Do I need one packaged solution or should I have multiple options per category?
Depends on the builder, the market, etc. How does the builder handle flooring packages, appliances, etc. What does the builder want you to do? What do you want to do? Meld it all together and develop your packages. Try it and tweak it and try it and tweak it and try it and tweak it etc.

- Are package solutions a good way to address the remodeling market, where the decision making process is really fast?
Again, depends on the remodeler. I know remodelers where the process is the same as building a new home. Figure out the remodelers processes and meld yours to it. Packages are always good because the end user wants to know how much it costs, you have the ability to show “what can be done” and they are a great starting point for conversation.

- Do you have any pricing guidelines on designs/proposals? Frequently we get handed blank plans, client indicates "a want it all" attitude and then cuts deeply on seeing price.
This is where packages can help. It lets you get an idea if they are a $10,000 client, $200,000 client, or $10 client by their reaction. We all want it all, but will we pay for it. You need to qualify your customer. Also, ask the builder what they think. They will know or at least have an idea. Also, take a look at what else is going into the home. Is it Kitchen-aide or Wolf/Viking?

- How do you add that builder percentage to your invoice and remain competitive in this market?
If it only comes down to price are you creating value on top of that to justify your increase in cost? Not saying you need to be the cheapest but you at least need to be able to explain why you cost more other then “I want to make more margin then the “trunk slammer.”

- How do you overcome the situation with the builder when they say, “Well, if the customer asks for your technology we will give them your card?”
You just defined a “sub” and not a partner. My answer would be to try and figure out how to become more important. I would also educate the builder on what “being a partner” is and why you want to be more then just a pass along (some of you might just want that and if that is, more power to you). If the builder still wants to just do that, say thank you and move on. There are plenty out there that will work closer with you. Don’t waste your time after trying multiple times. Create the market (the arc) and they will come sooner then later.

- Is there a standard of offering follow-up services after installation for service, education, upgrading? Say a percentage of the amount put into the home initially? On an annual basis? Standard? Are there any in this industry? Should there be?
Yes. Unfortunately there aren’t and this is a great discussion question. I’d also ask, what are other industries doing. Mimic them and make them better (and fit your market).

- Would an integrator provide the builder or developer a rebate structure or finder’s fee?
If its appropriate and what they/you want to do. Some want it (typically more volume builders) and others just want “best price.” Interview your builder/developer and ask them what they would like. Make it part of the program.

- What are the most effective methods for re-engaging the buyers of homes that we pre-wired for surround sound, distributed audio, etc. so we can sell speakers, components, etc.?
PROGRAMS PROGRAMS PROGRAMS. And education (in any form…newsletter, cocktail party where they have the system playing, testimonials, etc). Develop a program that gets you into the home: free estimate, free demo, free tweak, something. Get in front of them – introduction by a happy customer that knows them, stop by at their home and ask, mailing, neighborhood event, etc.]]> Market Issues http://cedia.net/blog/index.php?itemid=69 Wed, 16 Apr 2008 16:43:31 -0400 http://cedia.net/blog/index.php?itemid=67
- Payment schedules from builders have slowed from monthly draws to maybe not getting a draw for a few months now. How do we address this?
Directly, by having a conversation with the builder and discussing your concerns, understanding their issue (show empathy), educating them on your issues and how it impacts your business. Discuss a solution. Do this in person and do it before it gets out of control. Don’t just send letters and emails. Do it over lunch or dinner or at their office. My suggestion would be to do it in a restaurant or, if at their office, in a place like a conference room. Get out of their office where they are behind a desk and your sitting in front of them. Sit next to them.

- How do you maintain your relationship with a production builder while still being able to customize/upgrade your offering with the homeowner/end-user?
Money talks. Develop a program where they are included in the upgrades. Also, educate them on how you are making their (KEY IS THEIR) customer happier, which in turn is helping them.

- We have an issue with electrical contractors who our builders trust downplaying our value while doing things like paralleling all of our low voltage lines. How should we address this?
First – head on with conversation. I’d do it first with the EC directly and if it continues have a meeting with the builder and EC. Second – I’d figure out a way to be a partner with the EC and not an adversary (reference the discussion about circling the job).

- Why do you feel that the granite, flooring, and appliance companies have been able to present themselves as a better value added product than our industry has been to the builder?
My opinion is because in the production builder community the homeowner is demanding it. They don’t do anything unless the homeowner does it. Also, I believe the manufacturers in the spaces you describe do a great job of developing market demand instead of focusing on “my panel has more inputs then yours.” They also have less smoke and mirrors. Everyone is to blame on this. Whether it’s the manufacturers not working together and creating standards (yes, I used the forsaken word – standards) or the installers not making it easy for the market to understand because we are worried “trunk slammers” are going to take “their business” or that the homeowner “can’t understand” (by the way, forget that turn and embrace the complexity of the marketplace. Stop looking in the opportunity door behind you and figure out how to lead the one that is open in front of you). I would welcome a discussion on this question cause it is a great one. There are a ton of models out there that have worked and we should discuss them.

- How long until you see more technology included as a standard just like an upgraded kitchen or master bathroom?
WOW, I wish I could answer this exactly (if I could see into the future, trust me, I would). My opinion is that it is happening now…you just need to develop it and lead the adoption. There are examples everywhere. The key is to educate yourself on the examples of success and duplicate it where it makes sense in your market. Try it…whats the worst thing that can happen? It actually might work. On top of that, study markets and mimic what they are doing there. For instance, motorized window treatments. If I hear another person tell me “my clients don’t want it”, “its too expensive”, etc etc I might throw up. Question – have you looked what goes on in Europe? Is it adopted there? If so, how did they do it? Why? What was the message, etc.
]]> Market Issues http://cedia.net/blog/index.php?itemid=67 Wed, 16 Apr 2008 16:36:15 -0400 http://cedia.net/blog/index.php?itemid=65 Working with Builders participants and the answers submitted by Lee Odess:

- What do you feel are the best committees to get involved with in the HBA?
Education and any you believe in or have a passion for (if you believe in something and have a passion for it, chances are you will spend the time needed and excel at it). I would also take a look at what is needed by the HBA. You could step in to a committee that is less desired but needed (i.e. business planning) and be seen as a hero. Most are short time spans so use it to get where you want.

- What is the Canadian version of the NAHB?
Check with the CMHC (Canadian Mortgage Housing Corporation). They can direct you.

- I would like to develop a home technology board in my local HBA. Any advice?
Yes, do it. Start with as many people as you can get to come (even if it is 2). It will grow from there. Meet and evangelize it locally thru word of mouth, newsletters, etc.

- Please provide more information on NAHB 20-Clubs. http://www.nahb.org/page.aspx/category/sectionID=607
]]> Market Issues http://cedia.net/blog/index.php?itemid=65 Wed, 16 Apr 2008 16:28:53 -0400 http://cedia.net/blog/index.php?itemid=63 Working with Builders webinar. Following each question is the response from our facilitator, Lee Odess.

- It's been my experience that they view low voltage as more "entertainment" and less critical. Any tips on changing this perception?
Yes, education. Start them monthly or quarterly and educate them on what you do, what you are, and what it is. The less critical perception is based on many different things such as perception, past experiences, and someone not making it important. Figure out how to get them excited about it and I bet it won't be less critical anymore.

- Is it helpful to search local building permits that have been issued?
Yes. Data is king and it’s a start. From there find out who is doing what, get to know them, build a relationship, become a partner, and you will start to know about projects before the permits are issued. That is the end game. You want to be a part of the project from the beginning and by being a partner with the builder you will.

- Are email campaigns good for this?
Anything helps but it needs to be creative…like a newsletter, not just spam. They get enough email. Differentiate yourself.

- How do you see a showroom being used most effectively to support marketing/sales to builders and architects?
First, it’s a showcase. I notice a lot of times we in the business do a great job of talking about our experiences, solutions, opportunities etc but we suck at showing it for a number of reasons. A “showroom” is a great way to show the product. If a builder or architect or anyone lives with something or has experience using it (like in a showroom) they can then feel comfortable talking about it and selling it and I guarantee your adoption will increase. Also, a showroom does a great job of consistent messaging.

- We have started marketing quarterly maintenance policies. Do you see others doing this and do you think it increases sales?
Great idea and no I don’t see others doing it. Again, you are differentiating yourself and educating on the value you deliver which is about service, not product. Keep it up.
]]> Market Issues http://cedia.net/blog/index.php?itemid=63 Wed, 16 Apr 2008 16:24:31 -0400 http://cedia.net/blog/index.php?itemid=61 Working with Builders webinar:


Is there a Canadian equivalent to HTA?

Not that I am familiar with (this is a brand new idea and group in the US). But that can’t stop you from forming your own locally. Grab 5 or so builders (many you work with and others from the community that believe in what you are looking to do) and set up a time to meet monthly and discuss relevant topics such as standardization, marketing ideas, etc. No reason to wait, you can do it yourself.
]]> Market Issues http://cedia.net/blog/index.php?itemid=61 Wed, 16 Apr 2008 16:18:36 -0400 http://cedia.net/blog/index.php?itemid=59 Working with Builders webinar submitted in response to the associated poll:

How else are you developing home-builder market?
- HBA as well signs and calls, referrals, job site visits
- Building permits & Drive bys
- Visiting local project sites and introducing
- We get our builder referrals from architects and interior designers
- We utilize outside sales teams and referrals from our retail showrooms as well as past clients.
- We kind of get business via a retail store and referrals and past clients; so, a little of all. But partner with furniture stores too.
- Direct Marketing - Starting with Cold Calling
]]> Market Issues http://cedia.net/blog/index.php?itemid=59 Wed, 16 Apr 2008 16:15:37 -0400 http://cedia.net/blog/index.php?itemid=57 Poll #1 - Working with Builders

Poll #2 - Working with Builders

Poll #3 - Working with Builders]]> General http://cedia.net/blog/index.php?itemid=57 Wed, 16 Apr 2008 16:12:06 -0400 http://cedia.net/blog/index.php?itemid=55
What does Make Deposit do for you? I only receive payments against the invoice.
Make deposits is the second step of receive payments. If there is no invoice in the system, you will need to use “Make Deposit.” However, for all jobs, we recommend always using receive payments as the first step. Use only “Make Deposits” for non job-related deposits.

How do you transfer customer deposits to become income?
Your question requires a detailed response. I hesitate to provide a quick answer unless we more fully understand your question. Customer deposits become income in many different ways depending on how you create customer deposits, how you use that liability account and how and when you recognize income.


]]> Operational Issues http://cedia.net/blog/index.php?itemid=55 Mon, 31 Mar 2008 18:37:40 -0400