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Use Professional Design to Create a New Profit Center

Bob Peterson, CGR, CAPS

We at ABD Renovative Ideas believe strongly in promoting professional design and turning it into a profit center in our business.

In fact, we have been very successful in making design an integral part of our profit and loss (P&L). Time and again, whenever we properly develop and present professional designs to our clients, it adds to our bottom line.

If you want to promote and make design a profit center for your business, be aware of these key issues:

  • The design must be crafted by a “professional.” You must be able to sell your prospects on the value of using a “professional designer.” The key is in the details.

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  • The final design must look “professional.” Your designs must be thorough, complete and professional. Put as much detail as you can get on the plans. Don’t show a client a set of plans that looks like they could draw it themselves.

  • Listen to your client. This can be difficult, but the worst thing you can do is present a design that has no appeal to your customers or, worse yet, has no chance of being built because of cost. Listen to your clients and “wow” them with proper direction for their project.

  • Be thorough. Ask key questions to find out what your clients are looking for and be aware of budget constraints. Budget is one of the most important concerns regarding design. When you arrive at your prospects’ home, start absorbing their surroundings, their habits and their lifestyle. These impressions will all become valuable influences when creating the perfect design for them.

If you listen, are professional, provide professional documents and show your clients that their project will be more successful if you can include clear details and professional plans, it is easy to sell profitable design.

Professional Design Can Ace Your Competition

Oftentimes, when we know there is competition for a job, we first sell the prospect our design. This ensures that each competitive company prices the same details and levels the playing field.

Actually, it often ends up tilting the playing field in our favor. In the process of developing and presenting the design, we do all we can to earn our clients’ respect and confidence so that, by the time construction pricing comes around, we’ve eliminated the competition.

So turn design into an important part of your business. It never hurts to have a line item in your P&L showing a much higher gross profit than the construction itself.

Bob Peterson, CGR, CAPS, is president of ABD, Ltd. of Ft. Collins, CO. He has been in the home building/remodeling industry for more than 30 years and was named Remodelor™ of the Year in 1997 and Builder of the Year in 1999 by the Colorado Association of Home Builders. E-mail Peterson for more information.


Nominate the Best of the Best for Remodelor™ of the Year — Deadline, Sept. 3

Applications for the Remodelors™ Council’s most prestigious awards program, the Remodelor™ of the Year Award, are now available online at www.nahb.org/remodelors under the Awards section. The deadline for applications is Sept. 3.

The Remodelor™ of the Year Award recognizes exemplary NAHB involvement at any level, superior business management and an outstanding contribution to the remodeling industry. Councils should nominate individual remodelers, but the nominee must write his or her own entry essay.

The winner will be announced at the Remodelors™ Council Gala during the 2004 Remodeling Show in Chicago (Oct. 8).

Local Councils Honored With CADRE Awards

The Council Awards for Demonstrating Remodeling Excellence (CADRE) is awarded to local Remodelors™ Councils for superior member service in the categories of:

  • Membership Recruitment & Retention
  • Community Service Project
  • Public Relations & Promotion
  • Outstanding Associate Member
  • Member Service/Education
  • Government Affairs/Legislation
  • Outstanding Council Chair
  • Outstanding Executive Officer/Council Coordinator

The deadline for entries is Sept. 3. For information, e-mail the Remodelors™ Council or call 800-368-5242 x8216.

'Creating the Not So Big House' Available at BuilderBooks.com

"Creating the Not So Big House," available at BuilderBooks.com, focuses on key design strategies for creating a house that values quality over quantity and emphasizes comfort, beauty, a high level of detail and a floor plan designed for today's informal lifestyle. The publication features an up-close look at 25 houses from all over the country — from a tiny New York apartment to a Southwestern adobe, a traditional Minnesota farmhouse and a cottage community in the Pacific Northwest. To view or purchase "Creating the Not So Big House" online, click here, or call 800-223-2665 to order. 

The NAHB University of Housing Offers Courses and Designation Programs

The NAHB University of Housing offers a variety of business management courses and professional designation programs that set builders and remodelers apart from the competition. For a complete list of current offerings, click here.

Attend the 2005 Custom Builder Symposium

Expand your knowledge “Beyond the Tool Belt” at this year’s Custom Builder Symposium. This is the one event where custom builders can go for world-class education and exceptional networking opportunities. For more information, click here.


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