Remodeling - February 2009 - (Page 24)

YourBusiness BottomLine Section Editor: Nina Patel npatel@hanleywood.com Truck Allowance Providing an allowance for employee vehicles ensures maintenance and upkeep. T he field crew at Dover Home Remodelers, in Cleveland, receives a truck allowance for using personal vehicles to travel to and from jobsites. Of the 13 field crew, eight are eligible to participate in the program, says owner James Orr. “What dictates if they get this option or not is if they are a foreman, running a crew, or if they need to carry tools/ladders to perform their work,” he says. Back in the 1980s, the crew used companyowned vehicles. “We found out that the company vehicles were not being taken care of and maintained. That was the catalyst for this program,” Orr says. “We thought it would provide incentive to take care of [the vehicles], and it worked.” The allowance covers use of the vehicle. Dover also provides a separate gas allowance. Participants fill out a mileage log that they turn in every quarter — information that is required for tax purposes. Otherwise, the allowance would be considered taxable income, Orr explains. If the employee wants to participate but can’t finance a vehicle or if the remodeling firm can negotiate a better deal, Orr will help the employee purchase the vehicle. Employees who participate in the program must also name Dover Home Remodelers as additional insured on their vehicle insurance policy. Orr added this requirement after an incident where an employee was involved in a car accident after work hours and both the employee and Dover were sued by the other driver. He says that the additional-insured section of the policy protects the company from non-work-hour accidents. —N.P. Small Changes Surviving the economy one decision at a time. D 24 Remodeling February 2009 remodelingmag.com Illustration: Doug Ross uring its 26 years in business, TriLite Builders has survived four recessions, and owners Linda and Wayne Minde are confident that they can make adjustments and survive the latest economic downturn. By the end of 2008, the Chandler, Ariz., company was down about 33% in volume compared with 2007. Some clients have panicked about the economy and have halted at the design stage, Linda Minde says. Other high-end clients are reluctant to take out loans or use investment money for a remodel. “The good thing about design/build is that you can see ahead of the game,” she says. “You know how long things will be in design, so if the design pipeline dries up, you can see the hole in the construction schedule.” The company has taken several steps to adjust to the economy, including cutting back on staff through attrition rather than layoffs. Tri-Lite Builders’ sales manager, for example, was going to retire in 2009, but decided to leave at the end of 2008. The owners have also cut hours and pay for some staff. “We reduced hours for our interior designer from 40 hours per week to 32. And we asked all senior management to take a 20% pay cut,” Minde says. She is also carefully reviewing overhead expenses to see where the company can save. For example, Tri-Lite Builders decided to cancel its office cleaning service, opting to ask the staff to pitch in to keep the space clean. Minde also switched workers’ compensation insurers for a firm with better rates. She says that the downturn has meant more people offering remodeling services, which has decreased the number of leads and increased the competition for jobs. “I’m glad we have 26 years in business with a lot of contacts,” Minde says. “I’ve been marketing and networking and on boards for years. We’re ahead of the game.” Several peers have asked Minde for marketing advice, so she decided to teach a seminar on cost-effective options for the local remodeling association. She says that being involved with the association and being a member of a peer review group have helped her company weather the situation. —N.P. http://www.remodelingmag.com

Table of Contents Feed for the Digital Edition of Remodeling - February 2009

Remodeling - February 2009 Contents First Word Market Watch Linda Case Mark Richardson Shawn McCadden Ways + Means Bottom Line Sales + Marketing Field Notes By Design Tech@ Work Good Form Close Up Second Look Going Green Clinic Specbook Upscale Remodeling Start Right People, Process, Profits Interview: Sara Ryan Duffy, President of SRD International New + Notable Products Final Touch Green Speak Green Spec In Focus First Look Benchmark

Remodeling - February 2009

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.