Perseverance Keeps Leaders on Track

Remodeling, like any business, has its ups and downs. Most remodelers would acknowledge recent history has been one of the downs. Those who talked to Qualified Remodeler are among a select group of survivors and innovators who have always persisted through difficult times.

In part, they've survived by fine-tuning their sales and marketing or by changing their mix of products and services to meet customer demand or maybe being in the right place. None of them pretend there is a magic bullet or a single solution that works for everyone. They just know what has worked for them.

Normandy Builders in Hinsdale, Ill., reports that business is up significantly year-to-date. Andy Wells, vice president and general manager, attributes that to improved market conditions and more effort on his company's part. ";It feels like the consumer has loosened up a little bit," he says. ";I think people may feel a little better about job security, which I think was a lingering doubt for a lot of people."

Things may not be returning entirely to pre-recession norms, however. ";There are a couple of big things we've noticed," Wells says. ";One is definitely the mix of jobs has turned to fewer additions and to more remodeling. We are still doing add-ons, but there are a lot more inquiries for kitchen or bath remodeling. I think that's a result of people feeling that they can't sell their homes, so if they're going to stay they want to make it how they want it.

";Financing has become very difficult, partly because of low appraisals. People are spending their own money, so they're being much more sensitive to the dollars they're spending. It's coming out of their pockets vs. out of home equity."

Home equity will return, Wells says, as soon as the foreclosures and short sales are done and the demand for homes starts to rise again. ";How long that will take, nobody knows," he adds.

Normandy has turned to a grassroots marketing and advertising campaign to deal with a difficult market. ";We're going out to meet the public, whether it is home shows or seminars in our showroom or in alliance with partners. We're not just showing them an advertisement and hoping they'll be interested in us."

Competitive changes

Another change that some remodelers have noticed is a change in competition. ";There is a great deal of low-end competition from people who are just jumping into the remodeling market and probably don't have a real strong handle on their costs or about what's necessary to provide for customer satisfaction," says Neil Harvey, president, residential division, Francis Harvey & Sons Inc., Worcester, Mass.

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