The Home Improvement Industry Hotwire

We Are Switching Blog Platforms

2010-02-22T12:20:00.004-05:00

In order to provide our readers with an easier subscription process to our blog along with making our posts easier to find on Google and Yahoo, we will be switching to wordpress as a hosting platform form for our blog as of today.

There will be an easy method of signing up for our blog now, by simply filling out the simple capture form on the home page, you will be e-mailed automatic updates.

Click here to access the new blog and if you have any questions please contact Brad Yoho by e-mailing him at brad@daveyoho.com.

Review from the Summit: Per-Inquiry Advertising Continued

2010-02-08T16:41:00.006-05:00

Ron Sherman was the next featured speaker at the Home Improvement Summit and while he was not able to attend he sent us a video of his presentation to share with attendees.

He is the President of the multi-million dollar ad agency, Ron Sherman Advertising, which is headquartered in Little Rock, Arkansas. He specializes in producing programs for the home improvement industry. He acts as producer and spokesperson for many of those in the room today. In any given time, throughout the US, you can count on running into a Ron Sherman production television program. He has dedicated his business and his modern production studio to the art of producing leads.

It will only take about 7 minutes out of your day to watch the video and the information that you gain will be invaluable. If you have any questions feel free to e-mail Ron Sherman.

The Benefits of Social Networking

2010-02-04T14:09:00.012-05:00

Social networking has played an integral role in transforming our business. In 2008, we did over 90% of our business offline - - and - - while there are many other factors at play, we are currently doing between 70-75% of our business offline, and we expect this number to keep trending downward.

The thing that bothers me most about the perception of social networking is that people still have doubts about the success of these tools as they relate to business. These "naysayers" typically fall into one of two categories:

Those who heard a negative experience from a friend/colleague and have never actually tried to experiment with social media
Those who used social media in an ineffective manner in such a way that they actually dissuaded prospects from buying from them

Neither of these strike me as the type of individual I would want in charge of my marketing department.

The benefits of social media are numerous and these tools are so new that you can expect many new ones to develop over time. Here are the primary benefits:

Find new customers: Social sites such as Twitter and Facebook have many simple to use/teach tools that you can use to find potential customers.
Give current customers added value: There are sites such as Alltop that allow you to find industry-related topics that would be of benefit to your customers. By posting this information you become seen as a valuable resource and stay fresh in the customer’s mind
Create positive content to combat your detractors: It is a fact that regardless of how great your company is and how excellent a service you perform you will have some people who want to damage your image. By enlisting your customers to post positive reviews on such sites, you will help to avoid negative perceptions.
Improve your search engine ranking: Social networking sites are ranked extremely high by Google. In many cases they may even rank higher than your own website. The more material that you have on the first few pages of Google will improve your value in the eyes of the prospect immensely.
Build inbound links to your website: Nothing improves search engine optimization more than inbound links to your website and with the abundance of social networking sites available you can easily build relevant links that will continuously work for you in building traffic for your site.
Establish yourself as the local authority: There are many forums that you can use to build up your credibility further. It is easy to monitor these sites and find the questions that are aligned with your business model.
Network with other businesses: This is an often overlooked part of these sites, but the majority of companies out there are looking to help as part of a reciprocal relationship. You will be shocked at the business partnerships that can develop overnight just through the basis of a simple online conversation.

The marketing cost(s) of utilizing social networking sites is peanuts. If you spend a week learning how to use them, you can spend only 30 minutes-1 hour participating every day and you will see amazing results.

For more information on how to utilize social networking in your business feel free to e-mail me at brad@daveyoho.com

Review from the Summit: Per-Inquiry Advertising

2010-02-02T09:52:00.015-05:00

The next topic that we dealt with during last year's Home Improvement Summit was per inquiry advertising.

The first expert on this issue was Sam Borgia who is the President of the Homeowner Resource Center. He is also a managing partner for Home Lending Corporation and Energy Star Trust. Sam used his background in the home remodeling and lending business to structure a unique company in a highly competitive market. His business was established in the early 1980's when the country was in the middle of a great recession. His companies specialize in matching consumers and special finance programs. They have been responsible for over $500 million of home improvement and lending dollars. In addition, his companies have been negotiating special contracts including PI advertising for the last 20 years.

Per inquiry advertising is a type of direct response marketing where the advertiser gets free ad time and space while paying only for results. In return, the advertiser gives up control of where and when the ads will run.

Some of the key points that he touched on in his presentation included:

Understanding the complexities of a per inquiry program before you start
How to start a per inquiry relationship
How to present a per inquiry advertising program
Understanding the benefits of a per inquiry program (Both for the advertiser and the media source)
How to maintain the per inquiry relationship
Creative per inquiry relationships

For detailed information on this topic, feel free to contact Sam Borgia for assistance.

The next posting will feature of video from an advertising legend, Ron Sherman.

Make vs. Take Marketing

2010-01-28T14:42:00.009-05:00

Ask a marketing major studying for an undergraduate degree and the interpretation of marketing will be abundant statistical data and case history laden. Ask an MBA candidate with the same major and you will receive a much more sophisticated analysis. In each case, this is preparation for the daunting task of understanding the complexity of marketing, more so in a rapidly changing economy with many geo-political implications.

Now – - ask a grizzled veteran who has endured years of preparation, projections, analysis and evaluation to define marketing with one added caveat – keep it simple. Here is how that explanation might sound:

Marketing is defining how to sell the right product (service) - in the right markets - at the right time - in the right quantities - to the right customers - at the right price.

How’s that for simplicity? Now let’s muddy the waters. I’ll inject a little known phenomenon known as 'make marketing vs. take marketing'. Moreover, this is a key if you are selling specialty products vs. commodities and particularly if you are selling directly to the user. To understand this phenomenon is to grasp the key issue for developing more leads – for more prospects – to whom to sell your products/services.

Simply stated 'take marketing' enables the seller of goods and services to analyze the market, then design a program which will enable the marketer to sell a satisfactory percentage of that market. Once accomplished, this is called market share. There is in the case of most manufactured goods rather accurate statistical analysis which defines how many automobiles (even by make, model, size and color) will be sold in the US. This is equally true of beer, clothing, carpeting -- in fact, most of the manufactured goods offered for sale.

The previous example is especially true regarding building materials. There is a rather accurate projection as to how many houses will be built, torn down or remodeled over the course of a year. An accurate projection can also be made as to how many square feet of piping, flooring, roofing and insulation, windows, etc. will be used. Those who offer goods in those markets will decide how to “take” the piece of that market which their product can accommodate by price, quality, and similar factors.

Next, compute what happens when there is a decline in new construction, and fewer people undertake remodeling. The marketer, unable to maintain their market position, downsizes, adjusts prices or undergoes similar machinations to try and maintain market size.

Now, let's examine make marketing, particularly in how it relates to building products, and more specifically, home improvement sales. The make marketer finds ways to stimulate prospects by offering them an opportunity to look, preview, see a demonstration, get free estimates and other similar tactics. The exhortation to participate in any of the latter utilizes almost every conceivable manner of communication, some a lot more effective than others - while some are complicated to understand.

Here are some examples (this is just a sampling and each method has numerous variations):

Print media (newspaper and magazine)
Direct mail and marriage mailings
Shows and events
Kiosks in malls
Radio and television
Direct and telephone marketing
Internet marketing including social networking

Each of these methods requires an in-depth understanding of buyers’ habits, attitudes and a probe of value systems. Each also involves a special level of marketing know-how, together with tenacity and a budget which is accommodating. These are nonetheless, the means by which a marketer develops business - by interacting with prospects who are not yet committed. The technique works hand-in-hand with training salespeople how to present (demonstrate) a product or service that meets the specific needs of individual prospects and moreover, how to convince them that now may be the best time to buy. Above all it requires a make marketing attitude.

Incidentally, here is but one example of why and how this works. In early ’08, the statistics were released on the number of windows manufactured for residential housing in the US over the prior 12 months. Those statistics are revealing. Approximately 22 million windows for new construction and 33 million were used in replacement. I estimate that approximately 60% of the latter came because of make marketing which also drives and stimulates the market for others.

There are many other examples of make marketing:

Canvassing, when done properly (most canvassing isn’t)
Soliciting around installed jobs
S.F.I. (sell, furnish, install) programs utilized by wise marketers such as Home Depot, Sears, Sam’s Club, etc.

All of these techniques require thoughtful preparation, supervised execution and budgetary controls.

To summarize, in most instances, it is the make marketer who thrives in a changing economy.

How to Pre-train Your Sales Force

2010-01-27T10:29:00.011-05:00

One of my clients, recently came up with a fantastic way of training his sales force in our methodology.

When he hires a new salesperson he issues them a copy of our newest series, The Science of Successful In-Home Selling, but does so without giving them the workbook that normally accompanies it. He then tells them that they have to listen to the entire series prior to their training taking place (this period is approximately one week). He also makes sure to get a copy of their credit card, the reason for this being that if they decide to skip out with the copy of the album he will charge their card for the full retail price of the copy.

Then, he issues them a test which he has devised by removing some of the key concepts and ideas from the workbook. This occurs on day one of their training and ensures that the new trainee has taken the necessary time to listen to the material.

The learning curve of his first training class of the year improved dramatically because the new trainee had a fundamental understanding of the selling process prior to coming into training.

For more information on how you can accomplish this in your organization feel free to e-mail me at brian@briannsmith.com.

Attitudes & Affirmations

2010-01-21T11:42:00.005-05:00

What are affirmations?

I like to define them as positive reinforcements that you give yourself to keep negativity from pervading your daily existence.

Here is a partial list of affirmations that I incorporate into my daily life

All issues of life, painful and otherwise, are learning experiences.
Those who reared you, despite their apparent flaws, were doing the best they could.
In the moment of your greatest pain you may be experiencing your greatest opportunity to “grow”.
The search for parental approval or acceptance can be destructive.
Until we are affirmed by a significant “other”, our achievements will seldom give us sustained happiness.
Negative actions by others in our development can be held to be a detriment to our growth and happiness.
We are limited by our prevailing awareness.

The primary affirmation that I use in my daily life can be viewed in this powerful video.

How to Monitor Your Online Reputation

2010-01-21T10:21:00.006-05:00

Last week I received notice that a company in Australia was selling our material on eBay. They cleverly packaged it with other people's recordings and renamed the product so as not to make it too obvious that they were an unauthorized reseller.

We went through the proper channels to file a complaint online and within one business day the seller's profile had been removed from eBay.

A few years back we would have had to rely on someone who purchased the product online to contact us directly, and there is a strong likelihood that we would never discover what was occurring (particularly since the company resides in Australia).

So how did we find out about this and resolve it so quickly?

We sign up for a service called Google Alerts that assists us in monitoring our online reputation.

All you need is a google account to get started - then - choose the search terms that are most important to your company or brand name and decide how often you would like these results to be delivered to you. Google will do the rest. The service will scour the Internet looking for any mention of your search term and will report it back to you in an e-mail.

Do you want to know if you are being slandered online? Google Alerts can help you with that.

Do you want to monitor your competition? It can help you in this area.

Or maybe you are considering breaking into a new market and want to know what the primary characteristics are - - It can certainly assist with this.

The only limit to the service is the creativity of the search terms that you come up with.

If this sounds too much like an endorsement that is because - - it is....How important is it to protect your brand name?

Review from the Summit: Show & Event Misconceptions / Recommendations

2010-01-19T09:57:00.006-05:00

The next section of the Home Improvement Economic Summit focused on shows and events.

Two of our Senior Account Executives are experts when it comes to producing a quality event and avoiding some of the key errors that many companies make.

My son David began by discussing the misconceptions that many company owners and managers have about shows and events. Among these are:

My promoters are at work
My promoters follow the script
My promoters are doing the best they can (considering the market we’re in!)

Frequently, the owner/manager is not involved enough in the event and as a result these three misconceptions cause him to accept the "status quo" as the best his company can do.

A more "hands on" approach is necessary to make your event successful and this is what Brian Smith discussed. Among his recommendations were that:

Don’t use sales reps: They will contaminate the presentation process - use Promoters instead
Don’t allow Promoters to work alone: They need to be managed
Do not allow people to sit in chairs: This is supposed to be a job! Your people need to approach it that way. Sitting in a chair transmits low energy to the prospect
Ensure you calculate fully-loaded costs: They’re a lot more than you might think
Don’t just market at home improvement shows: There are lots of other great places to be.
You need the right tools: Pictures, light-weight materials, uniforms, reminders
You need documentation to control the definition of a lead: Unless you’re only working sweepstakes or some customer completed form.
You have to control the conversation: Otherwise Promoters will say too much or too little.

In the next posting, I will review the presentation of one of the most creative minds in the business who has become a master of holding successful events. You will also have the opportunity to view an excerpt from his recent demonstration at a local show.

Review from the Summit: Shows & Events

2010-01-18T11:45:00.021-05:00

The next focus of the Home Improvement Economic Summit was on Homeshows & Events. The panel consisted of three experts and we started off with one of the most creative minds in the industry today.

Joe Talmon is President of Larmco Windows - an Ohio based company. He is a 22 year veteran of the window and home improvement industry. He transformed a small regional wholesale window manufacturer into a respected retailer of high end replacement windows, siding and other products. His passion is quickly uncovered when you hear him speak about one call selling, sales training, and working shows and events.

He began his presentation by discussing the first event that his company held, at the Marion Count Popcorn Festival. Despite getting to the event late, and not getting a prime spot in the show they were able to be successful because they stuck to their strategy, "No-one walks by the booth without being stopped."

The results of the event were very encouraging (and a sign of greater things to come):

In 4 days (Thursday through Sunday) they set nearly 80 leads and sold just under $80,000 the first week after the event. Their overall costs were under $2000.

Two keys that Mr. Talmon learned early on were that:

People do not attend the homeshow or event to see what your company has to offer, they are there for their own reasons

Their competition was not just the other companies in their category. There may be 200 to 1,000 vendors and every one of them wants the same thing you want - the attention of the people who attend.

Once he had this down pat he was able to develop an effective action plan to succeed:

Have the right people working with the right approach

Make sure everyone is trained and knows their single purpose

Have the presentation scripted

Develop an interruption/attraction device

Hold a kick off meeting the day before the event

Have a practice session each day before the event opens

Manage the approach - fun is always a good thing

Observe!!!

One of his most recent event demonstrations is quite astounding. Note how the attendees are flocking to his booth in droves. Meanwhile, many of the other company's reps look on with bored and disinterested expressions as people walk past their booths one by one.

For more information on how he accomplished this feel free to contact Mr. Talmon at jtalmon@larmco.com or visit his website.

Review from the Summit: S.F.I. Programs - - The Promise and the Problems (Part 3)

2010-01-15T14:04:00.005-05:00

The final presenter on S.F.I. Programs at the Home Improvement Economic Summit was Rob Levin. Mr. Levin holds a degree in Accounting and a CPA certificate, and moved through public accounting to became the controller at a large wholesale building supply company. In 1982 he became part of a newly founded retail siding and window company (American Remodeling) which became a licensee for Sears under their SFI program. AMRE eventually became a public company with average annual volume ranging from $250 to $300 million with 65 offices. He is currently president of Statewide Remodeling of Grand Prairie, TX, which was established in 1994, and is today listed as the 24th largest company in Remodeling Magazine.

Mr. Levin's extensive background in S.F.I. Programs made him an ideal choice to conclude this part of the program. A summary of his key points regarding S.F.I. included:

Positives:

Brings a good lead flow
National name gives credibility
Excellent financing options are frequently available
Can add income to your bottom line

Negatives:

You are creating your own competition
Seasonality of traffic
Higher marketing cost due to licensing fees
Cash flow difficulty at beginning
Cash flow can be slower
May affect core business

Steps for Success:

Start slowly
Keep the hours down
Understand the seasonality factor
Analyze S.F.I. business separate from core business
Assign separate salesmen when possible
Make one person responsible for in-store activities
Build relationship with the store manager

If you did not have the opportunity make sure to read the previous two posts on S.F.I. Programs. You will discover that all of the presenters shared many of the same key points. The key take-away was that S.F.I. programs can be effective if the right elements are in place; however, they are not for everyone.

The next topic I will review from the Summit will be how to get the most out of shows and events.

Review from the Summit: S.F.I. Programs - - The Promise and the Problems (Part 2)

2010-01-14T11:19:00.009-05:00

The next presenter at the Summit who spoke on S.F.I. Programs was Michael Redman. Since 1993, Michael has been the National Manufacturer Representative for TEMO Sunrooms. His responsibilities include leading the team of manufacturer's reps in recruiting, training and servicing their national network of dealers. Under his supervision, each rep is required to have a successful background in in-home selling and the ability to provide “hands-on” training for the salespeople representing the dealer. He has a national reputation as an efficient trainer. In addition, he interacts with the dealers on their activities as SFI providers to brands such as The Home Depot and Sam's Club.

First, Michael touched on the benefits of using an SFI program, primarily:

They are an excellent lead source
Other sources may not be available
Other sources may be too costly
Other sources may provide limited results
Face-to-face (SFI) is proven to work

The primary keys to an SFI program being successful are that the corporate entity must work within the contractor's structure (challenging, but crucial) and that contractors don’t use SFI as their sole marketing strategy. Also, customer service and satisfaction are a must and relationships have to be cultivated that build trust with store management teams.

The displays that TEMO uses in their program are mobile, expandable, affordable and have marketing flexibility.

In the next posting I will recount the presentation from Rob Levin who has one of the most extensive backgrounds in S.F.I. within the home improvement industry.

Review from the Summit: S.F.I. Programs - - The Promise and the Problems

2010-01-12T12:18:00.010-05:00

Continuing on in our review of the Home Improvement Economic Summit - our next panel discussed S.F.I. (Sell - Furnish - Install) Programs and what the primary issues are that arise when home improvement companies work with a large, nationwide retail services network like
The Home Depot or Sam's Club.

S.F.I. Programs have a longer history within the home improvement industry than many realize, however, the negative publicity these programs have received tends to outweigh the positive results that they can sometimes achieve.

The first speaker was Murray Gross who is the Chairman and C.E.O. of US Home Systems which specializes in the sale of cabinet refacing. They operate with 42 offices in the United States, approximately 300 salespeople and have a marketing center in Boca Raton, FL. They are a public corporation with revenues of $132 million. They currently act as an SFI outlet for Home Depot in over 1,900 of their stores. Their products are manufactured in their own factory. Mr. Gross was formerly president of Facelifters, a public corporation, acting as an SFI for Sears and producing revenues in excess of $60 million prior to selling that company to another corporation in 1996.

Some of the benefits of S.F.I. programs include:

Exposing your business to a new section of the market
Building trust, loyalty and security in your brand
Incremental revenue and profit
Access to advertisement and promotions
Access to financing options

Potential challenges include:

Being a "guest in someone else’s home"
Protection of the brand
Sensitivity to marketplace pricing
Consumers’ heightened expectations
Compliance, insurance, licensing, permits
Cash-flow considerations

The key walk away point from his presentation is that to succeed in an S.F.I. Program you need to understand that you are working with a "800-lb gorilla", you need to understand the financial model and most importantly you have to focus on what you as a business do well.

In the next blog posting I will continue to review the panel's presentation on S.F.I. programs.

Review from the Summit: Should You Acquire or Be Acquired? (Part 3)

2010-01-08T10:35:00.010-05:00

Now I am going to continue to summarize Hobson Hogan's presentation on whether you should consider being acquired or whether you should acquire another company from Day 1 of the Summit. If you have not read part 1 or part 2 please do so first.

The next topic discussed was the value drivers that affect the outcome of an acquisition (which we also call the "6P Framework"). These include:

Personnel
Product
Process
Profit
Pricing of Debt/Equity
Projections

This is a two-sided framework and the top three elements are on the company side (qualitative) and the bottom three elements are on the numbers side (quantitative). The company side contains qualitative attributes that will bias a value up or down, while the numbers side contains a quantitative measure of the culmination of company attributes and its relationship in its market.

The market outlook was then presented and while Mr. Hogan stated that the market should recover, it will likely not approach 2007 peak levels within the next five years. The recovery will be asymmetric with certain geographies recovering more quickly than others.

He wrapped up his presentation by discussing the financial market factors that affect value. These include:

Bank lending standards significantly tightened
Use of debt in transactions significantly curtailed
Equity out refinancing and home equity loans greatly curtailed

To learn more on how FMI can help you acquire a company or sell your business you can contact Hobson Hogan at hhogan@fminet.com.

Audios and Videos and Books, Oh My!

2010-01-06T16:01:00.003-05:00

Okay, so that’s a take off on Dorothy’s line from the Wizard of Oz. But this isn’t Oz, this is the 21st Century and audios and videos and books (especially e-books and audio books) are becoming a much bigger force then radio, television, cable and satellite radio and TV and the traditional bookstore trade book.

Sure, there are still millions of people who can’t/won’t give up the traditional ink on paper printed book. But, as the Baby Boomer generation is aging, the media the Baby Boomers grew up with are also aging. Technology has grown at an unprecedented rate since personal computers became a household word. The Internet has only been widely known and acknowledged for about 15 years. There are now over 1.5 billion brains around the world who are connected to and use the Internet in their daily work and personal lives. The Internet is the fastest growing and biggest networking opportunity that has ever been created. It grows exponentially by the day.

Broadcast radio, television and the cable and satellite services are finding competition with the Internet constantly eroding their market shares. The number of radio stations going off the air is growing each year. Smaller TV stations are following suit. The cable companies are in the Internet provider telecommunications businesses. The wired telephone companies are losing subscribers by the thousands to the wireless networks. And, of course, newspapers by the scores are turning off their presses and shutting the doors.

So, what does this mean for the home improvement industry? Very simple. While you still have some viable radio, TV, cable and newspaper advertising media, you should use them. However, as the population ages and the “new order” takes their place as the primary consumers of home improvements, you need to explore new approaches to reaching these upcoming generations. The use of podcasts and vidcasts, blogging and e-books and other forms of audio, video and reading materials for both wide broadcast and targeted narrowcasting on the Internet require your attention. People are learning, information gathering and being entertained in new ways. Having a Web site is not enough anymore.

At Dave Yoho Associates, we are using more and more of these new media and methodologies and seeing, not only growing acceptance by the public, but also measurable effectiveness.

To discuss how you can expand your outreach by applying these new methodologies and media for your business, contact Ed Helvey at DYA and explore how you might use these changes to grow your business.

Enthusiastically,
Ed Helvey
Audio, Video and Publishing Consultant/Producer

Making Your Day

2010-01-05T14:03:00.007-05:00

In this time of economic uncertainty, more than ever you (and those around you) need to “start your day” with something stimulating.

The level of pessimism and negativity has become rampant. Daily newspapers and the airwaves are cluttered with headlines which do not bode well for positivity and without caution, you will respond to most of what you hear and see rather rapidly. The phrase GIGO (Garbage In, Garbage Out) was created by the computer industry with the implication that incorrect information projected into a system will remain incorrect information unless erased or overridden. The human mind is the greatest computer ever devised. Unfortunately, GIGO gets compromised here, i.e., Garbage In – remains in until neutralized or replaced by the person controlling this complex computer -- (you).

Scientific research has proven that the mind does not know the difference between the real and the imagined. Therefore what you are accepting as real or imagining will happen, creates the foundation for how you will react on any given day. Your mind will act as a compulsive “endorser” for whatever you want to believe and you are twice as likely to listen and respond to information which endorses the way you already feel.

So what is a positive alternative?? Consider affirmation.

Affirmations are the key to building relationships: in selling, management, even in your personal life. Begin today to affirm others. It’s not praise or manipulation. It’s acknowledging some unique quality in everyone you meet.

Start by affirming yourself. View this 4 1/2 minute video entitled The Power of Affirmation then forward it to your employees and associates. Have them construct their own personal affirmation utilizing the principle for at least 21 days, then measure the results.

Wrapping up a Successful 2009

2009-12-24T10:19:00.002-05:00

As Christmas rounds the corner and the New Year beckons, I would like to be among many to wish everyone a happy and prosperous New Year.

2009 has been a remarkable year in the home improvement industry. While the press and naysayers will continue to report "newsworthy" items such as job losses we at Dave Yoho Associates tend to focus on the flattening of the downward economic trend and the many companies within our industry that posted their best years ever.

2010 is shaping up to be a monumental year within the industry and we are excited to be a part of it. We look forward to interacting with you next year - and - as always we appreciate your business!

Review from the Summit: Should You Acquire or Be Acquired? (Part 2)

2009-12-18T11:48:00.010-05:00

Now I am going to continue to summarize Hobson Hogan's presentation on whether you should consider being acquired or whether you should acquire another company from Day 1 of the Summit. If you have not read part 1 please do so first.

Let's pick it up with your selling/liquidity options:

Majority/controlling interest sale: To competitor or investment firm/private buyer
Internal sales/transfers to next generation of management: Multi-year S-Corporation/LLC sale programs, management buyouts
ESOP (Employee Stock Ownership Plan)
Selling significant minority stakes with eventual control sale: Can solve difficult situations where buy-sell agreement undervalues firm, gives owner a ready buyer in cases of illness or death, transaction(s) completed at a discount

Next he discussed the key points to consider before making a corporate acquisition:

All starts with strong business plan and big dose of humility
Be honest about risks – most are related to executive hubris not quantitative failures of the CFO
Plan early and implement slowly
Maintain a strong balance sheet
Manage assumed liabilities
Manage risk as well as return
Keep your hand in project selection/pricing
Manage personal guarantees
Just because you can borrow money does not mean you should
Acquisitions should enhance or implement new strategy
Acquisitions for acquisition sake will only distract management from its most important activities
Acquisitions should support your marketing plan, enhance strengths, mitigate weaknesses, reduce threats

Before you jump into the acquisition plan you need to work on the business plan - and this entails:

SWOT analysis
Market strategies
Product/service strategies
Operational plans
Management succession plans
Financial projections
Operating budget
Projected earnings
Cash flow and CAPEX budget

In the next posting I will finish the summary of Hobson Hogan's presentation.

Customer Dis-satisfaction Selling

2009-12-16T21:53:00.007-05:00

One of our long-time employees told me a story this afternoon that shocked me - although it probably shouldn't have.

He is a Chinese food fanatic and probably eats it at least three times a week. He is also intensely loyal and when he finds a product or service that he enjoys he sticks with it.

He has been frequenting the same Chinese restaurant for almost 15 years. He loves the food and most importantly the large portions that are incredibly inexpensive.

The other day he went in to get one of their usual lunch specials and the following conversation took place:

Customer: I ordered the lunch special
Employee: Here you go
Customer: (hands employee $7.30)
Employee: The egg roll does not come with the special anymore. $8.30
Customer: Well, you did not inform me of that over the phone. I only have $8.00

At this point the employee reached into the box, took out the egg roll, put it on the counter and proceeded to hand him the box.

Now I must say that if this had happened to me I would have had some choice words for her, but he happens to be more mild mannered than I am. So he simply proceeded to walk out of the restaurant and go down the street to eat elsewhere. He has been eating at the new restaurant for a week now and it turns out that he likes the food there even more than at the original place.

What the employee failed to realize was that she was not in the business of serving food, but serving customers.

Now at this point you might see where I am going with this and are saying to yourself, "That example doesn't apply to my business. They don't teach their employees customer service like I do." My response would be, "Just because you teach them to satisfy your customer base does not mean they are doing it effectively."

Think about how asinine this example is. Let's estimate how much money that our employee spent over the course of the 15 years he frequented this restaurant:

Average price ($7) x No. of Times Eaten per Year: (165) x No. of Years (15) = $17,325

This means that our employee's Customer Lifetime Value was $17,325 and this was thrown away over a measly eggroll!

No matter how strong your hiring practices are and how well trained your employees are, there are always situations similar to this that arise. Ask yourself, do your employees care about your customers? Do they care about your business? And make sure to take precautionary steps to avoid these damaging incidents by involving yourself in every facet of the business.

That was one expensive eggroll!

Review from the Summit: Should You Acquire or Be Acquired?

2009-12-16T10:34:00.010-05:00

Day 1 of the Summit continued with Hobson Hogan who is a member of FMI’s investment banking practice. He specializes in building products manufacturers and distributors, as well as other construction industry firms, focusing on mergers and acquisitions, ownership transfer issues and strategy development. He has an extensive background in finance, strategic planning, consulting and engineering. His experience provides him with an understanding of difficult organizational, operational and strategic issues facing the building and construction industry.

Due to the nature of the economy the topic of whether you should acquire another company or be acquired is highly relevant and a summary of what Mr. Hogan covered included:

Can your company be sold? If, so do you have competent management and are they a potential buyer?
The decision to sell is typically driven by outside forces: Health and/or personal issues, desire to retire, desire to focus on another business or poor financial performance.
Everyone is a seller at some point: You may not be alive to see it, but it will happen. The question is where are you in your personal journey – closer to the beginning or end.
Evaluate the opportunity to buy: At attractive valuations
Acquisitions should fit within overall strategic plan: Is it strategically driven or ego driven? Are you properly capitalized?
Strategy should drive acquisitions and your overall personal balance sheet should drive whether you are a seller
Investment in your company should be seen as part of personal balance sheet: Are you properly diversified? Is your risk appropriate for your age? Can you live off the proceeds of a sale? Are you truly ready to retire and pursue other interests?
Take a rational view of the business as part of your portfolio: Do not ignore the personal impact a sale would have on your finances, lifestyle and standing in the community.
Your business is likely one of the more risky investments you have
As you move closer to retirement you should ensure that you remove risk from your balance sheet: The unexpected can happen and typically does.
Valuations are down significantly: Not likely to return to where they were in the near future. PV of selling in 5 years is $33.7MM or simply put, for the risk of operating your business you would be indifferent between getting $91 MM in 5 years vs. $33.7 MM today.
Recovery is likely to be slow
Taxes are rising
Waiting for a better pricing environment may not yield the results you think: If you sold today and invested in a basket of less risky assets growing at 8%, you have $80.8MM in 5 years – around $10MM less than selling in 5 years, but at a much lower risk threshold.

In the next posting I will review the second part of Mr. Hogan's presentation.

Review from the Summit: Why Most Sales Training Ultimately Fails

2009-12-14T12:25:00.003-05:00

Day 1 of the Summit continued as Brian Smith discussed the most common reasons that lead to the failure of sales training within most organizations. These included:

Training the wrong person
Typical training is not the right type of training
No in-place field training or supervision
No lead controls in-place

Examine your own sales training and if you are not getting the results that you should be, it is likely a result of one or more of these factors being askew.

Make sure to listen to the free preview of The Successful Science of In-Home Selling, which gives up-to-date methodological steps for dealing with these issues.

The next summary from the Summit will feature Hobson Hogan's presentation on "The Opportunity to Acquire Other Businesses".

Review from the Summit: What's Wrong With Canvassing

2009-12-11T11:03:00.004-05:00

My son David took on the next topic at the summit which covered the primary problems that exist when companies attempt to implement a canvassing program. These include:

Failure to control the herd: Your canvassers need to be given strict guidelines for their dress, behavior and actions as part of the canvassing team. You expect your salespeople to conform to specific standards, why should your canvassers be any different?
Failure to control the process: There is a proven system that produces greater results than anything else that can be implemented. However, just stating that this is how you are going to cavass is not enough. You need to have a strong manager in place who is willing and able to enforce these rules.
Failure to measure properly: Your goal should be for your canvass leads to perform equal to your leads from other sources, and maintain a 12% marketing cost.
Failure to train: Do you have a canvassing manager? If so, is he devoting enough time to training your personnel to adhere to the guidelines? If not, your sales manager needs to be the one responsible for this task.
Failure to coach: Great managers are also great coaches. They see what is working and what isn't and make the necessary changes while constantly motivating their personnel to achieve maximum performance.
Failure to compensate properly: Like it or not, your canvassers have to be compensated requisite with their responsibilities - - and canvassing is not an easy job. Remember - your canvassers are an extension of your sales force and should be treated as such.
Failure to organize: The successful canvassing program has steps of implementation, you cannot expect to foster immediate results overnight.

For more information on canvassing, look at our free articles.

Next posting, I will review Brian Smith's presentation on "Why Most Sales Training Ultimately Fails".

Review from the Summit: Cost vs. Value Report

2009-12-08T11:19:00.008-05:00

The next presenter at the Summit was Jim Cory, the editor of Replacement Contractor, a Hanley Wood publication for roofing, siding and window contractors. He currently contributes to both Remodeling and Replacement Contractor magazine as well as their respective web sites and he also organizes the Replacement Contractor Executive Conference, an annual event focusing on sales and marketing in the home improvement industry.

His presentation focused on the Cost vs. Value survey that Remodeling Magazine puts out on an annual basis.

Some of the key points of his presentation included:

While the decline is not as sharp as in 2008, the overall trend for home improvement projects is sloping downward
On average replacement projects led to a 71.8% recovery in costs, versus 63% for Remodeling and other similar investments
Siding (fiber-cement, vinyl) and window replacements (wood, vinyl) contribute 6 of the top ten replacement projects for the year 2009
The decline in sunroom value continues to steepen - - at the moment roughly half of the cost is being recovered on average, down almost 25% from 4 years ago

The next topic that I will summarize from the Summit was David Alan Yoho's presentation on the fallacies involved in most Canvassing projects.

Photos from the Summit

2009-12-03T15:06:00.003-05:00

While these pictures should have been posted a long time ago - - its certainly better late than never right?

Our goal for the next program is to have a professional photographer come and take some shots so that the pictures are much clearer. Nevertheless, we hope you can get an idea of how a Dave Yoho Associates program is run if you have never attended one before.

We cannot wait for the next one in the Spring - - stay tuned!

Review from the Summit: Lead Safe Work Practices

2009-12-01T13:53:00.009-05:00

Continuing on with the summary from the Home Improvement Economic Summit in Indianapolis, Paul Toub reviewed the amended Toxic Substances Control Act (TSCA) and its impact on the remodeling industry.

As Marketing Director of Anthony Home Improvements, Inc. and Housecrafters (installers for 58 of The Home Depot stores), his understanding of TSCA and Lead Safe Work Practices is unmatched within the industry. As a result he was an integral force behind the foundation of Kachina Contractor Solutions, which assists remodelers in conforming to these ever changing laws.

Some of the highlights from his presentation included:

The April 2008 amendment to the Act and the impact that it has had on the industry
A sample of an old Lead Safe Work Practices pamphlet versus the new one highlighting the differences of what is required
Examples of penalties which have occurred over the last year to companies that did not conform to these standards (violations ranging up to $37,500 per day)
The types of work that are covered under the act
The possible exclusions under the act (which should not be relied upon)
A revision to the act which will occur in April of 2010, making the guidelines much more stringent for remodelers. The only exclusions will be for newer construction homes and lead-free certified job-sites. While at the moment there is a provision in place for owners to "opt-out", The Sierra Club is pressuring the EPA to eliminate this option.
The EPA-certification process and how to become a certified renovator

The primary take away from this segment was that there is a huge degree of uncertainty in regards to how these laws will be interpreted in 2010 so you should do everything in your power to err on the side of caution.

Keep in mind that you can contact us at (703) 591-2490 with any questions - - and if you have not already ordered it, we are offering the recording from our first summit on our website.

Review from the Summit: Industry Cautions

2009-11-24T11:42:00.004-05:00

Day 1 of the Summit continued with a breakdown of some of the cautions and concerns that the home improvement industry is currently facing.

Brian Smith began with an overview of the issues and concerns which included:

Traditional advertising sources are producing less leads per dollar invested
Changes in lead sources require modification of the sales model
Effective marketers reduce costs by implementing more creative lead distribution and instituting revised sales models
Increased marketing costs are a major contribution to lower profitability
A key ingredient in a successful home improvement marketing/sales plan is: The quality and quantity of leads generated measured against the quality and quantity of the salespeople who are issued the leads which were generated
The cost of a lead is increased (or reduced) by the efficiency and sales ability of the person to whom it is issued

He then proceeded to demonstrate the efficiency of a sales organization in this economy who made some slight changes to increase revenue by over $2 million while decreasing marketing costs by over 4% (for more information on this case study e-mail brad@daveyoho.com).

David Alan Yoho then touched on the conditions in the marketplace that are having a direct impact on the failure of some companies including:

Failure to understand the customer’s decision making process
Misunderstanding between coaching and training
Hiring the wrong people
Confusing management and leadership
Improper compensation

In the next posting the Lead Paint Regulations presentation will be reviewed.

Review from the Summit: State of the Industry

2009-11-18T10:57:00.007-05:00

Over the next few weeks I am going to be giving a brief summary of the content from the Home Improvement Economic Summit for those who were not able to attend.

Keep in mind that you can contact us at (703) 591-2490 with any questions - - and if you have not already ordered it, we are offering the recording from our first summit on our website.

Day 1 of the Summit began with my presentation on the state of the industry. Some of the topics of discussion included:

The common errors made by most home improvement companies
How the industry recovered after the last major economic setback in 1982
Relevant case studies from our clients, including a company that utilizes 50 lead sources, and another that is on pace to achieve a 42% increase in net revenue

The primary goal of this part of the summit was to reinforce the point that there are numerous success stories out there and what they have in common is that they all follow a sales system, but in regards to marketing they think outside of the box.

The next posting will cover the industry cautions and concerns for the year 2010.

The Summit Was A Huge Success!

2009-11-02T15:50:00.003-05:00

I would like to extend a warm thank you to everyone who participated and attended the Economic Summit in Indianapolis.

We had over 25 presenters and 130 attendees who helped to make it our most successful program to date.

Keep an eye out on our blog and social networks over the next week as we plan to post pictures, videos and content from the event.

Agenda for the Home Improvement Economic Summit

2009-10-14T15:02:00.011-04:00

The Home Improvement Economic Summit is less than two weeks away and we have had many requests from both attendees and those wishing to attend to publish the agenda for the program online.

Unfortunately we cannot accommodate this request as the schedule of events will frequently change (even up to the day before the program). What we can do however is provide a list of the topics we will be covering as well as some of the panelists who will participate on October 27th and 28th.

The topics we will cover include:

The state of the home improvement industry heading into 2010
Trends and projections relating to the economy
Legal issues that have arisen in the past year (and those that are on the horizon)
The Lead Paint Act
The fallacies relating to most canvassing programs
An updated sales training program
Whether to acquire another company (or be acquired?)
S.F.I. programs
Business diversification
Marketing at shows and events
Internet marketing strategies

Some of the presenters include:

Rick Strachan, Executive Director of Hanley Wood Magazine which consists of 12 business publications and is one of the top 10 media firms in the U.S.
D.S. Berenson, Partner of Johanson Berenson LLP who was honored in the 2005 Forbes magazine, "Special Tribute to America's Best Lawyers"
Murray Gross, CEO and Chairman of the Board of U.S. Home Systems, a publicly traded company that is the largest manufacturer of cabinet refacing in the United States
George Faerber, Co-owner of Faerber's Bee Windows a 26 year old home improvement company and Owner of a brand new venture called Bring Me My Leads.
Dr. Robert Genetski, one of the nation's premier interest rate forecasters and investment advisors

Please listen to the complimentary mp3 from this April's summit and if you have any further questions let us know.

Also don't forget to support our business partner Hanley-Wood by attending The Remodeling Show!

Our New Website

2009-10-08T13:45:00.004-04:00

After many revisions and a lot of back and forth between myself and our webmaster, our new site is finally live!

One of the primary focuses of the site is to provide access to as much free information as possible to our clients and customers and as you navigate through the website I think you will see this.

However, the website is still a work in progress and we need your suggestions.

Please e-mail me at brad@daveyoho.com or comment on this blog with your feedback.

We appreciate your interaction with Dave Yoho Associates!

New Lead Paint Regulations

2009-09-21T13:35:00.004-04:00

As many of you within the industry are already well aware, the stiff lead paint regulations have had a tremendous impact on the way that businesses our run.

While we at Dave Yoho Associates certainly are outraged by the negligent practices that have caused illnesses and deaths as a result of lead paint infractions, it is our view that the government is taking extreme precautions that are making it difficult for "the 99% of home improvement contractors who run their business by the letter of the law".

Now, there are rumblings of stronger regulations and fiercer penalties being proposed by Congress.

At our next Home Improvement Economic Summit renowned industry legal expert D.S. Berenson will present pertinent issues that you as an owner of a successful home improvement company need to be aware of as we move towards 2010.

Also, one of our business partners, Kachina Contractor Solutions, is on top of all the latest developments that our occurring and we advise you to contact them should you have any further questions.

Subscribe to our Youtube Channel

2009-09-11T11:38:00.006-04:00

We are currently in the process of uploading clips from many of our powerful videos onto YouTube.

The first video that was uploaded, The Four Dimensions of a Powerful and Memorable Speech has received nearly 1000 views in the short time it has been up online.

We have posted videos on many other topics including:

Selling skills
How to hire salespeople
Why replacing your windows is of vital concern
Other motivational speeches by Dave

I encourage you to view all of our videos - and - regardless of your background you will find useful and powerful ideas that you will take away from each.

The easiest way to view our videos is to go to our channel on YouTube and subscribe, so that every time a new video is posted you will be notified.

Also, if you have any requests for other videos you would like us to post, please send me an e-mail at brad@daveyoho.com - or - simply comment on this blog posting.

Danger Between the Lines

2009-09-02T16:07:00.004-04:00

Recently I was asked to participate in a local documentary produced by the Hunter Mill Defense League entitled, "Danger Between the Lines".

It tells the story of one of the most active areas during the Civil War conflict (the Hunter Mill corridor).

The Hunter Mill corridor represented a gateway to southern Virginia, which was the capital of the confederacy and was connected by railway to the nation's capital, Washington DC.

The documentary was produced to educate the public and particularly those in the school systems about valuable Civil War data, some of which is not commonly known.

Because of its proximity to Washington DC, the area became a hotbed of controversy and split loyalties which often came to a boiling point with aggressive and antagonistic behavior. The Civil war lasted 4 years and took 620,000 lives and eventually created the circumstance which took the life of our 16th president, Abraham Lincoln.

I am extremely proud to have been a part of this documentary and ask all my friends and colleagues who are interested to view it for yourself on Sunday September 6th at 3:00 PM EST on WETA - - or - - you can view it on Cox (726), Comcast (220), FIOS (526), Direct TV (26), and RCN (613).

The Next Home Improvement Economic Summit

2009-08-26T09:28:00.006-04:00

The next Home Improvement Economic Summit is only 2 months away and we are beginning to formulate the itinerary which will include the panelists and topics being covered.

The program is being held in conjunction with the Remodeling Show and a ticket to the Summit will include complimentary access into the exhibitor area at the convention center.

Do you have any pertinent issues facing your business that you would like to see us cover?

Would you like to participate in the event as a panelist? Is so, what is your primary area of expertise?

Please contact me directly at (703) 591-2490 or dave@daveyoho.com.

In the interim, feel free to listen to this complimentary mp3 from the keynote address of this Spring's summit.

Yesterday's Tele-Conference

2009-08-18T11:45:00.005-04:00

Yesterday's tele-conference was a huge success!

Thanks again to all of our sponsors for their assistance in putting this event together. Without them it would not be possible.

In total we had 277 companies on the 1 1/2 hour call representing retailers and manufacturers across the home improvement industry.

The featured topics included:

Successful marketing techniques that are working for many of our clients and business partners
How canvassing can help you lower your marketing costs
The major legal concerns for the 4th quarter of 2009

If you were not able to make it on the call, you can download part of the critical information that was covered.

Make sure you don't miss out on the next call! Contact us well in advance!

Capturing Prospects From Your Website

2009-08-13T14:06:00.001-04:00

Prospect capture forms have gotten to be the norm on websites for years now. The "hook" frequently goes something like this: "Sign up today for our free newsletter, e-book, or demo CD" and the prospect is thus induced to enter in their contact information in order to ascertain the "free" materials.

This is an excellent way to build an e-mail or mailing list for future use in your campaigns.

However, what I don't see a lot of websites doing is incorporating the capture form into their home page. For example, what you will typically see is something like the following: "Click here to sign up for our free newsletter!"

Why would you make the prospect take an extra step in signing up for your product/service? Furthermore, why would you want to take him off of your home page?

A better example of a capture form is one where the prospect can simply see the offer as soon as they come on to the company website and enter in their information immediately.

Also, don't forget to place this form "above the fold" on your website. What this means is that it is visible as soon as the website appears on the screen, and no scrolling down is required to view it.

If you follow these steps I can guarantee that your conversion rate will increase dramatically and the goal of building your list will be achieved at a much faster rate.

2009 Master of Influence Award . . .

2009-08-03T17:47:00.001-04:00

On July 20, 2009 my professional speaker peers at the National Speakers Association Annual Convention in Phoenix honored me when they bestowed upon me the coveted “Master of Influence” award. There have only been a very limited number of people who have been graced with this award. Past recipients are Deepak Chopra, Art Linkletter, Jack Kemp and Dr. Ken Blanchard. This award is presented annually to only one individual who has significantly influenced people around the world through his or her exceptional speaking ability and whose distinguished speaking career has brought honor and recognition to the speaking profession.

It was, at the same time, both a humbling and an exhilarating experience as this award was presented. It is one thing to stand before an audience for a client and deliver a message that will impact their lives in a positive way. It is quite another to stand before your peers, each of whom knows what it takes to prepare and present a program that will move an audience. To be honored with such an award let’s you know that the years of preparation, rehearsing, days away from your family and friends, shaking countless hands and coping with the rigors of travel have not gone unnoticed.

The president of the National Speakers Association, Sam Silverstein, who presented the award, had this to say, “Beyond his many accomplishments, I ask you to observe his unusual level of energy, his choice of words and his speech pattern. I believe you will discern why he is the recipient of this award.”

You can experience a four-minute sample of the energy, word choices and speech pattern Mr. Silverstein spoke of by clicking on this link excerpted from another presentation I made before an audience of thousands: http://www.youtube.com/watch?v=H7jyOf-a7_4

I hope you enjoy this short clip and will share it with as many friends and colleagues as you can. Children and young people will especially benefit from these four minutes. Melvin Rosenblatt, Chairman of MidSouth Building Supply stated, “The 4 minute video should be played in every auditorium in the US.”

It is the desire of the National Speakers Association that this message gets transmitted in some fashion to those who are enduring challenges in their business or personal life. This is a message of hope and is an antidote for the abundant negativity and pessimism displayed by the news media.

Modern technology makes it possible for this message to be relayed without cost or obligation to those you know who will enjoy the uplifting video clip. There is even a message to the hearing impaired (watch my right hand as the conclusion of my remarks).

A long time clients/associates responded by saying, “I am astounded by his superb communication skills, academic achievements, sound judgment, analytical ability and endless energy.” Peter Bulger, former CEO, U.S. Home Systems, Inc.

Thanks for taking the time to view this video clip.

Best regards,
Dave Yoho

Why Buy Replacement Windows?

2009-07-21T13:54:00.003-04:00

My book Why Buy Replacement Windows? was recently featured on the Home Remodeling Ideas blog from FixTheHome.com. Visit their blog to read an excerpt from my book and order your free copy.

Fix the Home is a website that matches homeowners with local contractors in order to get remodeling estimates, replacement window quotes and bids on other home improvement projects. Check out their site to get several estimates from local contractors.

Your Salespeople Do Not Like to Sell

2009-07-17T11:36:00.001-04:00

At seminars this statement attracts flak like a magnet held over iron filings. Salespeople and their managers protest; they evoke their love of selling. Then I ask pointed questions and request that participants raise their hands.

I ask, Have you ever . . .

• Had an appointment where the prospect was an hour late?
• Had a lead where the prospects didn’t show at all?
• Been allotted half the time you anticipated to make your presentation?
• Been promised an order and didn’t get it?
• Lost an order to lower prices?
• Had the contract turned down by the bank/finance company?
• Had a contract canceled by your customer?
• Been required to work (solicit) around an installation?
• Made a call in temperatures over 95 or under 30 degrees, or when it was raining or snowing?

Then I ask, How many of you like or enjoy these tasks or circumstances?

None of these are fun, yet they constitute a major portion of sales responsibility. Why would salespeople enjoy that part of the role? They don’t.

Getting an order, receiving kudos for performance, getting paid sizable commissions, or winning a sales contest are the enjoyable parts of selling, yet they represent a relatively small part of a salesperson’s time and activity. Once a manager recognizes the indisputable truth that most salespeople do not like to perform these tasks, there is a greater possibility of creating advanced training and motivational techniques.

Disciplined salespeople achieve the greatest earnings because they recognize that calling on prospects, staying organized, having appointments or orders canceled, facing the possibility of rejection, and overcoming objections are simply steps in the process that leads to sale success.

In this changing economy, what changes have you made in training your salespeople and/or stimulating their thinking and understanding of the sales role?

The High Cost of Negativity

2009-07-10T15:49:00.004-04:00

You’ve got a lead in your hand. An appointment has been set and confirmed by your office. You’re an experienced salesperson. You know your product and you’ve been trained how to present it. If this is a successful sales call, you stand to earn a sizable commission. You believe you’re in the right frame of mind and you hope the customer is also.

But wait. This morning when you arose, you tuned into the local news. They explained how the economy was erratic, the stock market lost some points, unemployment hit a new high and the big box stores weren’t making the amount of money they projected earlier this year. However, you fluffed that off, had breakfast, met with those in your office and discussed last evening’s sales call and the reasons why prospects aren’t buying now.

Before your sales call, you pick up the local newspaper. You receive the same implants that you heard on television: stories of rapes, murders, assaults, robberies, state and local budget problems, potential tax increases and more.

You have been infected. Like it or not, unless you know how to counter this information, it may well affect your ability to sell the lead tonight – why, you ask?

Because whether the information is true or not, it is negative. Psychological studies show that as little as five or ten minutes of negative input can affect your central nervous system for up to twenty hours – reducing your energy and depleting your positivity.

Stay centered. The majority of homeowners are not facing foreclosure or unemployment. The majority of people want to keep their houses in good shape. Concentrate on the sales system. Ask for the order one more time. If they’re not buying, ask “why?” one more time. Don’t buy into the media negativity. Remind yourself, when people retrench, the majority of their spendable income still goes to their homes – and – stop reading the front page of the newspaper, spend less time on television news and spend more time with positivity.

The Prescription. Listen to and read about successful issues. Examine the positives in your life and in your business. Start giving your time to others and work harder on the continuing development of your professionalism.

Some years ago I made a speech to over 4,000 people entitled Yes You Can (Thriving in a Changing Economy). Now, this and other inexpensive recordings are being made available to bring the powerful forces of positive thinking into your life and your business today.

American Clean Energy And Security Act of 2009

2009-07-02T10:07:00.004-04:00

The American Clean Energy and Security Act passed through congress without much fanfare over the weekend. After all with Michael Jackson's passing, it was difficult to find any news coverage devoted to another topic.

However, the ramifications of this act if it passes in the Senate will be felt throughout both the home improvement industry and the United States as a whole.

The 1300+ page act passed by a scant 7 votes, and while the stated goal is to: "Cut down on carbon emissions and create 1.7 million jobs in the clean energy industry" - - the true purpose of the act is to standardize energy and emissions laws across the U.S. In effect, the government would have control over these regulations instead of them varying from state to state.

What the act does not present (at least directly) is that this will force homeowners to change the way that they both maintain and sell their homes. A "national standard" similar to the one that currently exists in California will require homeowners to replace outdated windows and other energy-related home products even if they are still in good standing.

As a representative of the home improvement industry, I am excited about the positive impact that this may have on many businesses. However, like most of you I am also a homeowner and I see a problem with the government trying to regulate the maintenance of our homes to this degree.

While there are many homes that are in need of energy efficient products, a large majority of the populous lives in homes that are not that old, and have windows which while they are relatively new, will not meet the requirements under this new act. So if they cannot afford to replace these windows before they put the house on the market, this act puts them in very bad situation.

Furthermore, the cap and trade act will likely lead to a sharp increase in the cost per household.

I encourage home improvement businesses throughout the industry to monitor this act closely, because the ramifications on your company could be tremendous if this is passed.

Regardless, for homeowners and businesses alike this complimentary e-book on replacement windows will be a huge asset moving forward.

The Next Economic Summit

2009-06-18T11:22:00.004-04:00

Due to overwhelming demand from customers and clients we have decided to reprise the Economic Summit that was such a big success in April.

It will take place in Indianapolis in conjunction with the Remodeling Show in October.

While it is still relatively early we would like to hear your suggestions for topics you would like us to discuss. You may either submit a comment on this blog or you can e-mail your suggestions to admin@daveyoho.com.

Also, don't forget to check out the complimentary mp3 of the last Economic Summit. You would hate to miss out on a wealth of information from one of the most knowledgeable industry figures: Rick Strachan Executive Director at Hanley Wood as he gives his keynote address.

Bathroom Remodeling Remains High on ROI Lists

2009-06-08T16:44:00.000-04:00

According to a recent article from the ARA – while foreclosures are at record rates the vast majority of homeowners are still current with their mortgages. Between the low interest rates and the fact that most of these homeowners are opting to remain in their current houses, it is providing more opportunities for home improvement and remodeling businesses.

There are several very distinct advantages for people to have various home improvements and remodeling projects done and upgrading one or more bathrooms are high on the list. Among the advantages are:

*People want to improve the value of their property during these recessionary times.

*People want to enjoy the benefits of a more luxurious living environment.

*People can recoup as much as 75% of a bathroom remodeling project’s costs when they resell their home as indicated in Remodeling Magazine’s 2008-2009 Cost vs. Value Report.

*People can realize savings in energy and resources consumption through upgraded “green” materials including ceramic tile, water-conserving fixtures and energy-efficient lighting

*People find that investing in baths and fixtures that create a spa-like environment provide a more relaxing experience in their own home, reducing stress and saving them the time and expenses of visits to spas and massage therapists. According to Steven Deland of Acryline Bath Systems, “Demand remains strong for tub experiences that really underscore hat feeling of spa like relaxation in the home bath.”

The U.S. has continually experienced cycles of economic upturn and downturn since World War II. On average, despite these cycles most homeowners have realized a doubling of their home value about every 11 years. Deland says, “Investing in your home is still one of the most sensible ways to spend your money and improve your life.”

There are always opportunities in every adversity. A solid plan, flexibility and innovation are important cornerstones of not only surviving, but also thriving during these challenging economic times.

Best Regards,
Dave Yoho

Follow-up Failure

2009-06-03T12:46:00.003-04:00

When we go into a client’s operation one of the things that we frequently hear is that they are doing their best to follow up with prospects who have expressed an interested in their business. Yet despite this, we have yet to interact with a client who has the time or resources to follow up with all interested parties on a consistent basis.

Sure, many do it better than others, but the fact remains that everyone would like to improve their prospect conversion rate.

So how do you accomplish this task?

What we have found is that the majority of our clients and customers do an excellent job following up with prospects and customers via phone calls and person-to-person contact and these both remain the most effective methods of interaction. However, the reality is that many homeowners are very inaccessible in today’s society and this is why e-mail communication can be so effective if it is done correctly.

Now before you stop and say that:

a) You have tried this before and it was not very effective
b) E-mail is treated as spam from most homeowners

I would like to ask you to rethink your opinion.

First of all, while these two points might be inherently true, the fact remains that most e-mail communication is composed in an ineffective manner. There are services or individuals that can be hired at extremely low rates (particularly in today’s economy) to write effective copy for you. Let other people handle the tasks that you do not specialize in.

Second, what are you doing to build your database? Are you attempting to double opt-in all of your prospects/customers? Do you realize how dramatically this will reduce your e-mail bounce rate?

Once these two tasks are accomplished then you need to consider investing in a software service that can automate your follow-up process. There are inexpensive services out there that can accomplish the task of multiple phone sales representatives simply by continuously following up with homeowners.

Why does it work so well? Because it keeps your company in the forefront of the prospect/customer’s mind. Studies show that it takes an average of 5 contacts before an individual processes the information that you are presenting them with.

The culture of our society is changing and it is vital that you do everything you can to stay in front of your potential customer.

Energy Tax Credits . . . Q & A - Part III

2009-05-25T08:00:00.001-04:00

In this posting we’re going to wrap up the series of Energy Tax Credits questions and answers. So, on to the next question.

Q. If I’m not in the window, insulation, roofing, etc. business, is it difficult to get those products?

A. Get an alliance with a window, insulation, roofing supplier or retailer. They will help you work this out.

Again, we encourage you to do energy loss inspections.

Q. Which roofing qualifies?

A. Most metal roofing. Check www.energystar.com

Q. Don’t all Energy Star windows meet the qualification?

A. Go to www.efficientwindows.org to examine the minimal requirements.

Q. Will the Energy Star stickers on the windows (or other products) have to be submitted by the customer for their tax credit?

A. It is a good idea to have the customer keep the sticker off a window or the package of their product to substantiate their claim.

Q. How do I give credible information to the customer which eliminates my installation costs without jeopardizing my contract?

A. Construct a formula that is realistic and yet protects you. Give this to the customer as a receipt when they pay. Be sure your formula is fair, practical, and consistent.

There is a lot more information and the answers to more questions in the recorded proceedings of the first Home Improvement Economic Summit recorded in April 2009. The entire summit is available on 11 CDs plus an additional CD Rom with the Summit manual and 220 PowerPoint slides. For more information send an e-mail to admin@daveyoho.com or call our office at (703) 591-2490.

That’s all for this time. I’ll have more useful information in the next posting.

Best regards,
Dave Yoho

Energy Tax Credits . . . Q & A - Part II

2009-05-21T08:00:00.001-04:00

Let’s pick up where we left off in the last posting with some more questions and answers about the Energy Tax Credits.

Q. How do we present the tax credit to prospects?

A. It is best to have it as a page in your presentation book together with a copy of the certification they will receive. Prospects can be advised to search the websites listed in the last posting for the same purpose.

Q. Is there a special form that customers will have to submit with their tax return?

A. Currently, IRS Form 5696

Q. Suppose our product, i.e. bath refitting, coating, cabinet refacing, etc. doesn’t qualify as an energy saving product?

A. Start offering energy audits. You can use the H.E.L.P. package we’ve developed for this purpose. H.E.L.P. (Home Energy Loss Prevention) is a copyrighted package enabling those who sell windows with CDs, graphs, charts, support forms, energy audit folders and formulas to present this. Request information on H.E.L.P. with an e-mail to admin@daveyoho.com.

Q. Then what do we do?

A. Most bathrooms have a window. On the other side of the ceiling may be an attic (insulation). You can offer these products as a bonus or discount to help the energy crisis.

Q. Does the job then qualify for $1,500 tax credit?

A. Only the portion that relates to the energy credit that you installed.

Remember, you used energy conservation to get the lead and you have made them energy conscious.

Absorb these ideas and consider how you can implement them into your lead acquisition and sales appointment program.

We’ll answer some more questions in the next posting.

Best regards,
Dave Yoho

Energy Tax Credits . . . Q & A

2009-05-18T08:00:00.003-04:00

We discussed the excellent marketing potential the new Energy Tax Credits in the massive government stimulus package provide for us in the last posting. There is $6 billion available for home improvement manufacturers and retailers. In order for you to benefit from this opportunity, you need to be well informed and capable of showing the homeowner how they can gain the maximum benefit from this tax credit. So, in the next few postings, we’re going to ask the questions and answer them for you. So, let’s get started . . .

Q: What are the qualifications?

A: Qualified home improvement products installed between January 1, 2009 and December 31, 2010 on homeowner occupied residences.

Q: How much is the tax credit?

A: Homeowners can claim a tax credit of up to $1,500 representing 30% of the purchase price (not including installation costs).

Q: How do we know the product we’re selling qualifies?

A: Get certification from your supplier. You will need this if you’re challenged.

Q: Do we have to leave a copy of the certification with a customer?

A: It is advisable, although not required to send this in with their claim when they report their taxes. They should be reminded to keep a copy for that purpose.

Q: Which products qualify?

A: All products must meet a standard specified within the Act. Windows, doors, skylights, insulation, roofing, certain types of HVAC equipment and solar products.

Q: Where can we get more information on qualified products?

A: www.ase.org, www.energystar.com, www.DOE.gov and your manufacturer.

These next two Q’s and A’s are very important to understand and remember so the prospective buyer fully understands how they get their benefit.

Q: What is a tax credit?

A: Homeowners don’t receive the tax credit when they buy the Home Improvement project. They claim the credit on their federal income tax form at the end of the year – 2009 or 2010. The credit then increases the tax refund they receive or decreases the amount they owe.

Q: What is the difference between Tax Credits vs. Tax Deductions?

A: In general, a tax credit is more valuable then a tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions – (home mortgages or charitable giving) – lower the taxable income. If you are in the 35-percent tax bracket, the income tax you pay is reduced by 35 percent of the amount of the tax credit.

Let’s wrap it up here for this blog post. I’ll have more Q’s & A’s in the next posting

Best regards,
Dave Yoho

Let’s Talk Energy . . . Savings!

2009-05-14T08:00:00.006-04:00

You are probably aware that there is an energy tax credit incentive for home owners built in to the government’s massive Stimulus Bill. Let’s recap this tax credit incentive and examine how this can be a massive opportunity for home improvement retailers.

First, it’s important to understand that this is a tax credit not a tax deduction. There is an important distinction here. A tax deduction means you deduct the prescribed amount from your taxable income before determining your tax liability. A tax credit means you reduce the tax liability you owe by the amount of the tax credit. Thus, if you have a $10,000 tax liability and a $1,000 tax credit, you only owe the IRS $9,000.00. This has huge implications for home improvement retailers.

Another important aspect of this tax credit is that it increases the cap from 10% to 30% for certain home improvement expenditures (energy conservation products.)

Here is a summary of the American Recovery & Reinvestment Act of 2009. The more significant incentives provided under the new law include:

Residential Energy Property Credit – Increased to 30%

The new law increased the Code Sec. 25C residential energy property tax credits from 10 percent to 30 percent, raises the maximum cap to a $1,500 aggregate amount for 2009 and 2010 installations, eliminates the $500 lifetime cap and makes several other modifications. The changes are effective for eligible property placed in service after December 31, 2008 and before January 1, 2011.

Note: Higher energy costs should accelerate the “pay-back” period for qualifying home improvements. The credit was in effect in prior years through 2007, but Congress allowed it to lapse for 2008. Pre-2008 credits are not counted toward the new $1,500 maximum.

Note: Improvements eligible for the Code Sec. 25C credit include insulation materials, exterior windows including skylights, exterior doors, central air conditions, natural gas, propane or oil water heaters or furnaces, hot water boilers, electric heat pump water heaters, certain metal roofs, stoves and advanced mail air circulating fans.

For more detail on these tax credits check out this Energy Star link

Residential Energy Efficient Property Credit

The new law removes the individual dollar caps under the Code Sec. 25D residential energy efficient property credit for solar hot water property, geothermal heat pumps and wind energy property. However, the new law places a $500 credit cap on qualified fuel cell expenditures.

Next time, we’ll answer some of the important questions about this terrific marketing opportunity.

Best regards,
Dave Yoho

A Challenge to the Home Improvement Industry . . .

2009-05-11T09:35:00.000-04:00

Let us prepare ourselves for what is to be!

A renowned philosopher once opined that, “in times of great change, it is the learners who have the greatest potential for success, for the learned find themselves equipped to deal only with a world that no longer exists.”

Join me, as we and others, not unlike Don Quixote, buckle on our armor and prepare to battle windmills. While we face the necessity of economic change, the windmills of doom and gloom keep turning. And as we respond to the call for ingenuity, creativity and change, while tightening our belts, the windmills, who create our laws and control the financial security of many with whom we do business, grind on . . . and on.

But, unlike Don Quixote, we have battled these forces before and won. We, the entrepreneurs, are the backbone of this $325 billion industry. We are ready to strive forward till we see the bright and shining El Dorado, which is our future.

Best regards,
Dave Yoho

The Home Improvement Industry Positively Impacts the Economy . . .

2009-05-07T16:21:00.000-04:00

In 2007, while researching for a book I authored entitled Why. . . Buy Replacement Windows? I found that there were 22 million windows manufactured for new home construction. During the same period, there were 33 million windows manufactured for replacement installations. The majority of these replacement windows were custom manufactured – to size – and delivered within two to three weeks from the time they were measured by a window expert and purchased by the homeowner.

In most cases, within four to six weeks from the time they were sold, they were installed in the home with little or no disruption to those living in the home – and – the windows replaced were removed and disposed of without damaging the environment.

The largest percentages of these windows enabled homeowners to live with less maintenance and contributed to energy loss reduction with great savings to those homeowners. Plus, the homeowners realized a healthier lifestyle.

This is, but one example. I could cite similar studies for insulation, roofing, heating/air conditioning, siding, gutters, cabinet re-facing, bath refitting and more.

Our industry took great products that might still be on a drawing board and created ways to get viable information to homeowners through creative marketing. We researched tools and equipment to complete the installation. We offered services that ranged from financing – to cost vs. value surveys – to customer service development. All of this, arguably, lifted this fragmented industry to become a cornerstone of the American economy.

A portion of our $325 billion total is comprised of D.I.Y. – do-it-yourself projects. Yet, the actions of promoting and advertising by retailers is what created consumer awareness, which, in turn, stimulated the D.I.Y. market and still does today. And, if you marvel at the growth of the “turnstile” end of the business through companies like Lowes, Home Depot and similar, you can thank the home improvement product and service retailers. They first took great products door-to-door to develop consumer interest and the appeal for so many of the products featured in the “turnstile” home improvement store of today.

Best regards,
Dave Yoho

Economic Crisis – Challenge or Opportunity . . .

2009-04-28T14:46:00.000-04:00

Yes! We face economic challenges in our business and personal life. Yes! Our country is enmeshed in a crisis of transition and adjustment. And, yes, we are challenged by the lack of cooperative research and understanding by the political pundits as well as those we have elected. Irrespective of the political party, we have expectations that they will be practical, pragmatic lawmakers who see beyond personal opinions and purposes – to perceive the needs of ALL their constituency.

We ask lawmakers, the press, the public and others to give credence and understanding to our challenges in the home improvement industry and to recognize that we are a $325 billion dollar industry. We are fragmented at best, entrepreneurial in our composition, employers of millions and the progenitor of products and services that were created to enhance the value of homes and continue to effectuate the American Dream.

We drive the market with creative advertising, install the products with unbelievable efficiency and, usually, with little disturbance to the committed lifestyle of the owners.

Our efforts give employment to those in factories, shipping companies, toolmakers, insurance companies AND to many industries, some of whom have little understanding of who we are or what we do. Our efforts have led to improve the real estate values of homes and increased assessments and created taxes for the communities in which we operate. And, by the way, those we employ pay taxes as do we and our companies.

By the very title employed to describe us – entrepreneurs – we acknowledge our role in the business structure – for in truth – entrepreneurs have the power to turn around this economy. We have shouldered our responsibility in the past. We will do so again.

Best regards.
Dave Yoho

Beware The Nattering Nabobs . . .

2009-04-24T13:22:00.002-04:00

As you read in my last posting, I was commenting at the 2009 Home Improvement Economic Summit earlier this month, on those who denigrate, are critical naysayers and prophets of doom – usually the media.

I reminded those in attendance about a former, wordy Vice-President – I’m sure you remember Spiro Agnew. As you’ll recall, he eventually came into great disfavor and resigned from the second highest office in our country. Mr. Agnew labeled these purveyors of negativity I was speaking of, the Nattering Nabobs of Negativity. It really has a nice ring to it, doesn’t it?

No matter the ultimate downfall of Spiro Agnew, by our history, we understand that that the validity of any statement has little to do with the integrity of the person who made it. Facts still outweigh opinions and negativity is the enemy of your success potential.

Today we are excessively exposed to many nattering nabobs of negativity. They are in the person of our customers, employees, families and friends, the press and our leaders – many, who fall prey to this malaise and proceed to state their opinions as facts.

Why? I believe it’s because it is human – to believe and to want to believe that the newspaper, the radio and the television convey fact – and not to believe what you see and hear – which might demean you as ignorant.

Did you ever wonder why radio, newspaper and, particularly, television are each referred to as a medium. I believe it is a medium because it is rare that we see or hear news that is well done.

To prove my point, try this experiment for the next 21 days. Start telling your employees, associates, customers or clients – in fact, almost everyone you come in contact with:

That you – now know that in the U.S. we employ 92% of our employable workforce and that no country with a population of over 300 million has ever accomplished this.

Tell them that when our country is considered at full employment that the unemployment rate is normally at 4 to 4.5%.

Tell them that 90% of the mortgages in this country are paid on time.

Remind them that the highest percentages of mortgage defaults are in 2 states and a good percentage of foreclosures are on 2nd homes and vacations properties.

Remind them that in 1982 the unemployment rate in the U.S. was 10.7% and mortgages carried an interest rate of 15-20%.

Let them know that despite the demise of real estate values, most homeowners enjoy ownership and will continue to care for, maintain and improve their most valuable possession and the lifestyle it provides.

Portions of this last particular statement are supported by the Joint Center for Housing Studies at Harvard University.

Think about these statements and then consider if you want to buy into the, so called, facts we are hammered with from those nattering nabobs of negativity.

Regards,
Dave Yoho

It’s History . . .

2009-04-10T13:36:00.008-04:00

That’s right! The 2009 Home Improvement Economic Summit Conference is now part of the history books of our industry. On April 1^st and 2^nd, about 100 industry leaders representing the manufacturers, retail sellers, installers, trade media and providers of ancillary services to our industry, gathered at the Westfields Conference Center in Chantilly, VA. Additionally, we had industry experts who specialize in this industry in attendance and as speakers. They included an economist, a corporate lawyer, a CPA, a retail financing specialist, an energy specialist, an advertising specialist and Internet marketing specialists. This was a singularly powerful information event.

In future postings of this blog, you’ll read pieces of some of the massive body of information. But, to start off, here is a short piece from my opening remarks as I challenged those in attendance to participate with an open mind and be ready to consider new ideas during these critical times.

Abraham Maslow, a noted behaviorist who developed the theory known as “the hierarchy of needs,” also studied the concept of accepting new information. He concluded that you and I are at the top of our game when we reach that level when we are aware of – most – or almost all available knowledge in our chosen field. Maslow called this achievement our conscious competency. This is a time when you really know – and you know that you know – that you know. We’ve all been there.

Yet, Maslow dashes our hopes when he concludes that at this point in your learned process, you also measure any new information against that which you already know, thus, judging what is new – and most frequently settling for – what you already know.

Do not let it be denigrated or neutralized by the critical nay-sayers or the prophets of doom who permeate our sight and sound each day.

Some of these are in your own organizations or your circle of friends – while others are in the media – they, who by sight and sound, present themselves as expert prognosticators in a format where opinions are projected as facts.

The entire Summit Conference was recorded by Oakhill Press and is being produced into an eleven CD package with nearly 12 hours of vital information for anyone in the home improvement industry. There will also be a twelfth CD that will contain all of the PowerPoint presentations, some supplemental material and a special one hour bonus audio program. You can go to our Web site at www.daveyoho.com or call our office at (703) 591-2490 for more details.

Best regards,
Dave Yoho

The Summit Is In Sight . . .

2009-03-27T11:47:00.016-04:00

The Home Improvement Economic Summit is upon us. April 1^st and 2^nd are rapidly approaching when the movers and shakers from the Home Improvement Industry will be gathering in Chantilly, VA at the Westfields Conference Center to discuss the current state and the future of this major economic force in our global economy.

This is no insignificant gathering of colleagues for the purpose of socializing and swapping war stories. The Home Improvement Industry annually represents an amount of revenue equal to nearly 50% of the amount of money the U.S. Congress recently authorized under the “Economic Stimulus Plan.

According to a recent release by the joint center of studies at Harvard University, The Remodeling Market in Transition – 2009, this giant industry has stimulated the market for home ownership, and created millions of jobs for manufacturers and those who install and service the products manufactured. The home improvement industry uses more building products then the new construction industry.

The US government and the media have taken scant notice of the issues and concerns of this great industry and therefore its future will be determined by the pioneers, innovators and creative marketers who have brought new products and ideas to the largest homeowner base in the world.

Highlighting the Economic Summit will be the presentation of the information contained in the Harvard Studies, regarding the remodeling industry.

Speakers at the Summit include:

Dr. Robert Geneski, internationally known economist, www.classicprinciples.com will lead the discussion on the economic issues which face the US with projections for the balance of 2009.

D.S. Berenson, senior managing partner of Johanson Berenson, www.johansonberenson.com will chair two panels introducing information regarding new tax laws, opportunities in the “green market” and new forthcoming legislation on the control of independent contractor status.

Additional panels on a wide range of economic issues will be chaired by industry leaders. Some of the topics include:

Energy Tax Credits and Marketing Them

Retail Financing in a Changing Market

Growing You Business in a Changing Economy

Internet Marketing

Diversity in a Changing Marketplace

I will act as the host of the Summit. It is my position that retail financing is a ‘must’ for those who labor in this industry at the behest of homeowners who require the ability to make sensible loans which enable them to keep their property maintained and energy efficient. Further, I believe that the ability to market products is severely impaired by the abundant negativity replete with doom and gloom expressed by congressional leaders and a sorely misguided media.

Those attending the Summit represent the most successful dealers, installers and manufacturers, all with an eye to strengthening the industry through creative and innovative new approaches to assist their customers in maintaining and improving the investment in their homes and increasing energy efficiency as part of a global initiative.

The Summit is being recorded by Oakhill Press and the proceedings will be available in CD format. Watch for complete details on this blog. And, stay tuned to the blog for a lot of great information and ideas to help improve your business and the economy as we release them.

Best regards,
Dave Yoho

A Changing Economy

2009-03-18T15:21:00.001-04:00

“Insanity is doing the same thing repeatedly and expecting a
different outcome” – Albert Einstein

In 1982 the unemployment rate was over 10%. Residential mortgages were loaded at 15-20% interest. Auto loans were – 14.8% – and – almost 30% of the automobiles and appliances sold in the United States were produced in Japan or Korea.

The media said it was the worst economy since the Great Depression. Home improvers claimed customers “were reluctant to buy until the economy changed.”

Companies who survived (and many thrived) effectuated change and stimulated prospects with themes such as “don’t move – improve” – or – “You auto buy now” (auto industry). Home improvers created outbound tele-marketing centers. They retrained their salespeople with more effective sales methods to convince home owners to buy now.

Check the record – replacement window sales soared. Double and triple pane units sold at a premium. It was the halcyon days of vinyl siding. Sunrooms had their biggest period of growth. Kitchen cabinet refacing became the option for kitchen remodeling.

Companies cut back on media advertising and yellow pages. In exchange, direct and marriage mail created abundant leads. Sears increased their SFI representation and fostered the (then) largest SFI program ($250 million annual sales) via a company called AMRE. Call centers properly developed without offensive call techniques became the low-cost lead form.

The critics and the nay-sayers lampooned the efforts of the more aggressive sales organization.Tele-marketing became the basis of joke and ridicule – so, what happened?

By grit and sustained effort, many companies sold more, found new ways to get low-cost leads, hired salespeople who did not come from the industry and trained them to be world-beaters.

It’s your choice. If the economy won’t change, it’s time for you to change. In the last month, Home Depot’s sales remained flat versus last year. Lowe’s had increases of about 1%. If this is sad news in the world of retailing, there’s a message. Consumers will spend less and maybe – just maybe – are reserving their spendable dollars for their most important investment – their home. Change ---- if it is to do, it’s up to you.

Regards,
Dave Yoho

Welcome to The Home Improvement Industry Hotwire . . .

2009-02-25T17:38:00.006-05:00

Thank you for checking out the inaugural posting of this new blog created specifically for YOU, the Home Improvement Professional. Read on and learn how this blog is going to assist you and your business not only to survive, but to thrive during these challenging times.

This blog is your way to keep up to date on important issues, concepts and information that can impact your business. There is no need to belabor the fact that we’re going through an unprecedented economic event. The event has been called a crisis, a recession and some economists are even referring to it as a depression. Well, those are all just words. Another word that is just as relevant to you during this economic event is opportunity. As Napoleon Hill stated, “Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit.

So, through this blog you can expect to read powerful ideas and concepts you can put to work in your business. You’ll learn about events, seminars, conventions, shows and training programs that will increase your effectiveness and that of your people. There will be quick tips and techniques that we’ve used successfully at Dave Yoho Associates as well as proven ideas and tips from other business leaders both from within and outside our industry. You’ll read excerpts from interviews with successful home improvement business owners, sales managers, salespeople and other industry professionals. Our legal beagle, D.S. Berenson, will keep you on top of the law.

There may be days when several entries will be posted here. There may be a few days that pass without any new postings. But, rest assured, you will learn from the leaders - and - the movers and shakers in this great industry. We solicit your contributions, too. You’ll be able to make comments on what you read in the postings. You will find a place below each blog posting to leave a comment – please do so. We can’t encourage you strongly enough to participate. Your experiences, opinions and thoughts are important to everyone reading this blog.

You may also have some important information that is valuable enough to be a posting in itself, Don’t hesitate to contact our blog editor at admin@daveyoho.com and we’ll evaluate it and post your information as a guest contributor.

Finally, you will soon receive a notice about the new podcast we’ll launch in the very near future. The podcast will be available on a weekly basis and, once again, it will be targeted directly to you and your business in the home improvement industry. You’ll hear from me and many others including our blog contributors and other industry leaders. You’ll even be able to hear the actual recorded interviews with the people we excerpt and feature in blog postings.

What is the value of one great idea? You’re getting on the idea and information express track. You can count on current, up to the minute, cutting edge information that will not only help you weather this economic event, but reveal the opportunities to grow your business at a time when many around you will fall by the wayside. These information tools will benefit you most if you read the blog and listen to the podcasts regularly. When you APPLY them in your business, you’ll avoid many pitfalls and experience amazing growth while other businesses around you are floundering. I can’t emphasize, enough, the value of subscribing to this blog and to the podcast for FREE, so you have it delivered directly to your computers as soon as the latest postings and podcast episodes are released. We’re doing our part to help you grow your business. We can throw the ball to you. YOU have to catch it or you’ll miss the value!

Dave Yoho
Dave Yoho Associates