Builders Focus on More than Price

February 2014 Volume IX, Issue 2

Price Isn't the Only Issue Builders Consider to Change Products
Chuck_Shinn_Pic

By Chuck Shinn, Builder Partnerships

Price is not the only thing a builder considers when deciding to change to a new manufacturer's product. Other issues often will override the lower price the manufacturer is offering, such as the timing of the change. These issues need to be addressed during the sales presentation. The best time for a manufacturer's sales person to present an opportunity is when the builder is setting up the specifications for a new community or has decided to replace a product or a vendor that has not been performing as expected.

Recently a manufacturer's sales manager told me he gave a builder a price that he knew was better than the builder had with his current supplier. I called the builder, and the purchasing manager said the price difference was not enough to justify the effort to change. Another purchasing manager told me there are so many things he must consider when making a product change that he has developed a checklist so he doesn't forget anything. Clearly, price is just one of the considerations when builders change products. What are the others?

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How to Use QuickBooks Job-Cost Features to Achieve Your Gross Profit Goals

By Diane Gilson, Info Plus Accounting

QuickBooks provides a variety of management reporting tools that help you to plan, measure, and monitor company and job results. When you use these features you can more easily see results so you can take corrective action and/or revise your goals. We like to model this process as PM3:

Plan (establish specific, measurable quantity and/or financial goals) - for instance to set your Gross Profit targets.
Measure results.
Monitor (compare your plan or standard to actual results).
- Based on what you see, you can begin to Manage by Exception (i.e., you can focus your efforts on areas that are not working according to plan).
Modify - confirm that your information is accurate, and do one of the following:
- Take corrective action (if possible).
- Find out why things didn't work as planned and establish a way to keep the issue from arising again in the future.
- If something was incorrect or overlooked in the plan, make sure the next plan or standard is more accurate.

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Cleveland Research Company Joins Builder Partnerships

Builder Partnerships is pleased to announce the addition of Cleveland Research Company into our program as an associate member.

Cleveland Research Company is an independent investment research firm headquartered in Cleveland, Ohio. It has a very unique business model that is constructed with a singular focus: producing the highest quality investment research in the market.

Cleveland Research's efforts and experience in sell-side research over the past 15+ years have led it to build a very unique business model for our clients. Its discipline includes establishing multiple relationships throughout the channel. Researchers talk to suppliers and customers, developing contacts, and conducting surveys day after day, month after month allowing the company to spot trends and inflection points in the end markets it covers.

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Mark Systems Joins Builder Partnerships

Builder Partnerships is pleased to announce the addition of Mark Systems into our program as an associate member.

Mark Systems' Integrated Homebuilder Management System (IHMS) is the industry's ONLY single-database, enterprise wide home builder software suite.

No other home builder software gives you the power, flexibility, ease of use, and return on investment like IHMS. The premier residential construction accounting software on the market today, IHMS combines a proven track record of performance with cutting edge technology to give you the financial control today's tough business climate demands.

Offering support for every home building activity, IHMS delivers full back office and field operations functions directly to the desktop of every person in the building process.

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Builder Partnerships Doubles Down in Vegas

For 9 years, Builder Partnerships has hosted its reception on the night before the International Builder Show opens, and for the second year we offered educational programs out of our booth on the show floor. The common denominator of both of them was standing-room-only crowds.

For the reception, more than 300 builder and manufacturer partners joined us. The food was great, the conversation better, as everyone reconnected with old friends.

During the Reception, we took a moment to hand out some awards. Founder Chuck Shinn presented two Lee Evans Awards. The first award for management excellence went to Austin, Texas-based Streetman Homes, which provides move-up and entry level homes. The second award recognized a lifetime of excellence and was presented to Ralph Drees, Drees Homes, Fort Mitchell, Ky. Look for the articles on Streetman and Drees in upcoming issues.

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Chuck Shinn addresses a full house during a seminar in the booth.

Monica Wheaton pulled together panel of builders for a

Professional Builder event.

Networking and conversation dominated the reception.

Chuck Shinn presents the Lee Evans Lifetime Achievement Award. David Drees accepts on behalf of his father, Ralph Drees.

In This Issue

Service DNA

The Crucial Storage Needs

Seven Ways to Profitability

Mark Systems Joins BP

BP Members Continue to Grow

Upcoming Events

Join Our Mailing List

Upcoming Events

Live Events

Purchasing, Estimating and Job Costing

April 7-9, 2014

Embassy Suites--DTC

Centennial, Colo.

Purchasing, Estimating and Job Costing is a comprehensive seminar designed to improve profitability through a more accurate and effective estimating and purchasing department.

For more information, click here.

The Superintendent's Job: Front Line Manager

May 8-10, 2014

Embassy Suites-DTC
Centennial, Colo.

The Superintendent's Job - Front Line Manager is designed as an interactive experience to help your team improve job site management techniques.

For more information, click here.

Managing for Profit

May 19-21, 2014

Embassy Suites-DTC

Centennial, Colo.

Managing for Profit is an intensive seminar designed to put you on track to improved profitability. Loaded with valuable insight on management techniques specific to home building companies, this seminar will provide tools you can use to realize improved results across the entire organization.

For more information, click here.

Webinars

How Many Homes Do I Need To Sell To...?

Fri., March 14, 11:30am ET

Learn how to calculate the number of houses you need to sell to stay in business and to realize your desired dollar profit.

Click here to register.

Internet Strategies: What Works & What Doesn't

Fri., March 28 11:30am ET

Brad Bombardiere presents successful case studies on how to create a unified marketing plan and web strategy focusing on what has worked for both production and custom builders.

Click here to register.

Time for a Tune Up! Bring Profits Back

Fri., April 4 11:30am ET

With the downward spiral in sales prices and volume, and the days of merely employing survival strategies in the past, it is time to once again, refocus and identify how to get back to earning a good profit on every house.

Click here to register.

Design Your Homes with Profit in Mind

Fri., April 18 11:30am ET

The ultimate goal of building a home should be to make a profit. However, once all is said and done, that is often not the case. In this forum, Ed Hauck will present simple ideas you can implement during the design process to protect your margins while maintaining the architectural integrity and quality of the home

Click here to register.

The Art of the Purchase: Build a Profitable Purchasing Operation

Fri., May 2 11:30am ET

When preparing for the start of any project, there are several crucial tasks a builder must perform in order to set it up for success. Mark Henderson will walk you through these steps and explain why they are important to complete up front.

Click here to register.

Are Your Foundations Screwed?

Fri., May 15 11:30am ET

Are you building your residential structure foundations on unstable soils? If you are, you may be in for a big and expensive surprise within your structural warranty window.

Click here to register.

Management Reports that Drive Profits: 10 Tips to Make Your Accounting Work for You

Fri., May 30 11:30am ET

After five years in the doldrums, the industry is ready to expand. Builders want to take advantage of the market revival, but growth can be expensive and risky. Your accounting system and its reporting function can guide the growth process to make sure your company is not only growing in size but also in profits.

Click here to register.

For the Complete list of webinars, click here

Builder Partnerships

Builder Partnerships is a unique organization focused on providing education and improving communication and collaboration within the home building industry. Currently we represents approximately 550 builders in the United States and Canada who have projected about 66,000 homes built collectively this year. With over 75 manufacturer and service providers associated with our group, Builder Partnerships also manages highly competitive rebate and incentive programs and works to strengthen relationships between builders, manufacturers and other service providers in the home building industry.

For more information, visit www.builderpartnerships.com