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Position Your Company to Attract the Best Service and Price from Your Trade and Vendors
By Charles C. Shinn, Jr., Ph.D., Builder Partnerships
In many of my discussions and presentations, I have talked about the importance of becoming a "Builder of Choice" for the trades and suppliers so that you can attract the best prices and get the best service in your local market. But how does a builder do this? That's easy, just have the most efficient job site and construction process in the area.
And how do you do that? By working closely with your trades and suppliers, valuing those relationships, and paying attention to details. I have had trades critique their builders and tell me that they work for one builder for less money than all the rest and make more money working for him because he is organized, give them plenty of advance notice, and the job sites are always ready. One trade told me that if his builder of choice grew, he would drop all the other builders and allocate all his resources to that builder. As a builder of choice there might be a shortage of trades in your market, but you will not have a shortage because all the trades want to work for you. Below are a few tips.
Value the relationships: Once trade contractors are under contract, they become part of your organization and a member of your team. Developing a team approach will pay off in spades. You may find that some manufacturers and trades may even come to you with ideas on how you can increase your construction efficiencies and reduce costs. One of the builders we have worked with hosts a monthly hamburger lunch with his trades. He is always surprised by the number of ideas and amount of good will that come out of these simple sessions.
Eliminate dry-runs: Dry runs are very expensive for the trades and hurt your construction schedules. Make sure the job is ready per the schedule or notify the trade if it is not ready. From some of my work with trade contractors, I find it is not unusual for the trades to have 25% to 30% dry runs where their crews can't do any work because the job is not ready. A lot of the trades have hired outside foremen to drive jobsites and make sure jobs are ready before they assign a crew. Guess who gets to pay for that foreman?
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Builder Partnerships Recognizes Home Builder Excellence
By Monica Wheaton, Builder Partnerships
During its 11th Annual Networking Reception at the International Builders' Show in Las Vegas Monday night, Builder Partnerships recognized 12 home builders for their excellence in the areas of customer satisfaction, trade relations and employee management, with some builders garnering more than one award. The awards came in three groups: Builder Partnerships Achievement Award for Customer Satisfaction, the Builder of Choice Award, and the Employer of Choice Award. One builder, Fredericksburg, Va.-based Atlantic Builders, brought home awards in all three categories.
Builder of Choice Award
In its second year, the Builder of Choice Award recognizes those builders who have demonstrated excellence in their management and relationships with trade contractors and vendors. Builder Partnerships founder Charles C. Shinn, Jr., Ph.D. said, "We are at a critical time in our industry, and builders must establish superior relationships with their trade partners in order to deliver the highest quality homes and service that homebuyers now demand. This award recognizes those builders who can meet that challenge."
The Builder of Choice awards for 2015 go to:
- Atlantic Builders, Fredericksburg, Va.
- DeYoung Properties, Clovis, Ca.
- HHHunt Homes, Richmond Va.
- Hunter Quinn, Pleasant, S.C.
- Ivey Residential, Evans, Ga.
- Wynn Homes, Creedmoor, N.C.
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Goodman Manufacturing Winner of Partner of the Year Award
By Stephen Crouch, Builder Partnerships
 During its 11th Annual Builder Partnerships' Networking Reception at the International Builders' Show in Las Vegas, Houston-based Goodman Manufacturing, Inc ., an HVAC manufacturer and member of the Daikin Group, was awarded the Partner of the Year award for demonstrating excellence in supporting Builder Partnerships builder members and their overall base of builder customers.  "Builder Partnerships was started to create a streamlined approach for manufacturers to identify, connect with, and sell to the Mid-Tier Builder segment," says Charles C. Shinn, Jr., Ph.D., principal of Builder Partnerships. "For years, builders told me they attended trade shows just to find their manufacturer sales representative. It was evident something needed to be done to help both builders and manufacturers connect. After 10 years, we now have over 650 builder members, building nearly 85,000 homes annually, and we help them connect with more than 50 major product brands, across 40 product categories. We have so many great manufacturer members, but we felt Goodman Manufacturing, Inc. was most deserving of being named the inaugural Partner of the Year".
To be selected as Partner of the Year, manufacturers must actively engage our builder membership to provide them with the information they need to make an informed purchase decision. In addition, manufacturers must provide on-going support to builders and channel partners to ensure product is available when required, as well as address technical questions when they occur during the construction process. Finally, manufacturers must provide builders with the tools and training required to sell the benefits of their product to their homebuyers.
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Builders Optimistic about 2016
By Monica Wheaton, Builder Partnerships
In a recent survey of Builder Partnerships' members, we got a strong glimpse of how optimistic builders are and how they plan to take advantage of the growing homebuilding market. Overall, the builders are projecting a 27% increase over last year.
90% of our respondents report planning to introduce new models in 2016, with 77% planning to do so within the next 6 months. Approximately the same number of builders are planning on starting new projects / communities within the year. For our manufacturer partners, this builder activity is good news. The positive vibe rang throughout the survey. Compared to 2015, nearly 50 percent of our builder members expect to raise prices in 2016. Last year's survey showed nearly 70 percent planned price increases in 2015, suggesting a slowing in the rate of price increases and a steadying market. House plans remain fairly the same on size, energy efficiency and the options / upgrades offered. Take a look at the following charts to get more sense of the builders' plans for 2016.
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Product News
100Plus by InSinkErator Helps Enhance Customer Satisfaction
By InSinkErator
We hear a lot of talk about win-win in business, but does that really ever happen?
InSinkErator® is offering Builder Partnerships members an exclusive opportunity that will provide an advantage for builders over their competition, help boost their bottom lines and enhance customer satisfaction.  That's better than a win-win. It's a win-win-win.All Builder Partnerships members are eligible to participate in the new 100Plus Program, which gives builders the chance to receive training on InSinkErator products and a special builder certification, PLUS have the chance to offer their customers a free or discounted HOT100™ instant hot water dispensing system when they upgrade from a Badger® Series to any InSinkErator PRO Series® food waste disposer. But-as they say-there's more. Each builder and builder's representative who complete the 10-minute online learning course to become 100Plus Certified will receive their own HOT100 system at no cost. This system-the first to feature pushbutton technology-can be installed wherever and whenever they choose. "We developed the 100Plus Program in response to what we were hearing from builders, who told us they were looking for value-added options that would give them an advantage over their competition," said Dan Murphy, InSinkErator Director of National Accounts. "This program helps builders take customer satisfaction to the next level."
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Shinn Consulting Adds Two Builder Groups
By Emma Shinn, CPA, Builder Partnerships
Shinn Consulting is adding two new builder groups. Builders looking to maximize profits, establish sustainable businesses, and improve processes and procedures can take advantage of this unique opportunity.
One group is for production builders doing between 200 and 500 units per year. The other group is for On-Your-Lot builders. Both groups will be comprised of non-competing builders. The Shinn Consulting builder groups are a unique networking and educational experience made available to select builders from across the country. Each meeting is an opportunity for group members to exchange knowledge and learn from each other to improve business processes. The main objectives of the builder groups are to: - Increase the profit of each company by building homes right the first time; on quality, on budget and on time
- Improve the utilization of information systems by exchanging ideas on how technology is used, sharing information on implementation, developing on-going training and establishing key management reports
- Establish standards of operations and measurement criteria. Develop written policies, processes and procedures
- Improve personnel management by learning how to become an effective manager and how to retain key personnel
- Provide a support group with like builders in noncompetitive markets
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Builder Partnerships Closes Out IBS in Las Vegas
In the fourth year of the International Builders Show occupying Las Vegas, Builder Partnerships successfully built on three years of increasing success and capped off a great stay.
The 11th Annual Builder Partnerships Reception
The show began with the 11th Annual Builder Partnerships Networking reception, which turned out to be a wonderful event. We had a great turn out and we enjoyed catching up with friends and colleagues.
Presentation of Awards
These awards recognized 12 builders for their excellence in establishing successful trade contractor partnerships; hiring and retaining quality employees; and delivering superior customer service to homebuyers. (See the complete article here.)
Founder Chuck Shinn and CEO Monica Wheaton presented the awards to those present and established a high benchmark for the home building industry through the company's recognition of the very best of builders.
Builder Partnerships is truly a partnership between builders, manufacturers and service providers, with all sharing the goal of improving the quality and efficacy of the home-buying experience. Vice President Stephen Crouch honored that partnership by awarding the first Builder Partnership Partner of the Year award to Goodman Manufacturing Inc., and HVAC manufacturer and member of the Daiken Group. (See the complete article here.)
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Congratulations to our 4th Quarter Award Winners
Click here for Details
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On Demand Session
Energy Efficient Strategies Put to the Test
A Case Study with Dow and Cobblestone Homes
For the video, click here.
Live Events in Atlanta
Managing for Profit
March 2-4, 2016
Atlanta
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. Systems, procedures and forms will be demonstrated so you can begin using concepts learned immediately upon return to your company.
For more information, click here.
Live Events in Colorado
Whizard Summit-Building Material Sales and Marketing
April 6-7, 2016
Boulder, Colo.
Mark Mitchell, Whizard Strategies, hosts his annual two-day seminar on building materials sales and marketing. This is the only event designed to help you stay current with the knowledge and strategies you need to sell today's demanding builder, architect. contractor, dealer, distributor or big box. The way you reach these people and the messages you need to use are changing. This is only part of what you will learn at the Whizard Summit.
For more information, click here
Production Management
May 9 - 11, 2016 Denver
Streamline processes, increase efficiencies, and cut costs in your production department to significantly increase your profits.The Production Management seminar introduces effective ways to organize and operate a construction management department.
For more information, click here.
Webinars
Top 10 Web Marketing Must Haves for 2016
March 4, 2016
12:00pm ET
The Top 10 Web Marketing Must Have's for 2016. What will it take to sell more homes in 2016? We will look at various home builder marketing and look to what did and did not work in 2015. This will help you to know where to place your efforts in 2016. We will evaluate:
- What are the must have features for a website
- What features just did not work for builders
- Does a mobile version of my site really matter.
- Can social media really help
- What paid advertising will give me the most for my money
For more information, click here. Where's the Beef: Analyzing your Company as an Investment
March 11, 2016 12:00pm ET
For most homebuilders, the equity they have in their business constitutes the bulk of their net worth. While it's extremely important to focus daily on the financial performance of the company's operations, it's equally important to analyze how the financial performance stands up as an investment, given its risk profile. Join Ron Robichaud for a discussion on the merits of your company as an investment.
For more information, click here. Winning Operational Practices for Production Builders March 25, 2016 12:00pm 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 and Chuck Shinn 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.
For more information, click here.
9 Secrets to Maximizing and Managing Your Gross Profits
April 1, 2016
12:00pm ET
Do you use QuickBooks or Enterprise Solutions in your company, but haven't taken full advantage of its job-costing capabilities? If so, you're overlooking an incredibly powerful cost-control, income-enhancement, and company-wide management tool!
Join Diane Gilson, Info Plus Accounting, as she covers the top 9 ways you can use job-costing to increase your gross profits. You won't want to overlook this unique opportunity to learn how to make transformative and lasting changes in productivity, accountability, financial confidence, and the amount you get to keep as profit from each and every job.
For more information, click here. Why Customer Feedback Matter for Home Builders
April 15, 2016 12:00pm ET Whether you have 10 customers or 10,000, knowing how they feel about their experience with you and your team is the only way to maintain customer satisfaction and quality.
In this session, GuildQuality will present the importance of implementing 3rd party customer satisfaction surveys to get honest, actionable feedback on your company performance.
For more information, click here. Planning for Superior Profit
April 29, 2016 12:00pm ET
Don't let your costs eat your profits! You can account for increased materials costs, decreased home prices and STILL make money. In this session, Chuck Shinn presents the Profit Equation and Ed Hauck joins him to discuss proven ways to decrease construction costs, build homes that sell at current market prices AND add points to your bottom line.
For more information, click here.
For the Complete list of events, click here
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Builder Partnerships
Builder Partnerships is a member organization focused on providing management training and support to help builders improve their performance and profit. Currently we represents nearly 700 builders in the United States and Canada who have projected about 85,000 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
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