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www.NAHB.org
Week of March 29, 2004

Front Page

President's Message

* For Working Families, Affordable Housing Is in Short Supply

Housing Forum

* Letters to the Editor

Housing and Economics

* With Mortgage Rates Down, New Home Sales Are Up Again in February
* Performance of Housing Industry to Remain Strong, Economists Predict
* Single-Family Home Resales Rise in February
* Eye on the Economy

Housing Politics

* Reauthorization of Flood Insurance Program Urged

Business Management

* Get Land for Nothing

Green Building

* Successful Business Strategy Starts With Green Home Building
* Recycling Construction Waste Becoming Second Nature in Colorado
* Low Impact Development Reduces Storm Water Runoff and Development Costs

Small Builders and Remodelers

* Insurance: Does Subcontractor Non-Compliance Put You at Risk?

Housing Consumers

* Column Service Article Advises Home Owners on Cicada Outbreak

Womens Council

* How to Negotiate a Job Offer

Member Dividends

* NAHB Helps Me Stay in Business, Improve My Profit Margin

International

* NAHB Working to Open Up Business Opportunities With Mexico

Labor

* Project CRAFT Graduates First Class in Dallas

Building Products

* Dream Tour Features Innovative Products and Construction Techniques

Builder's Engineer

* ‘No’ — The Hardest Word?

Building News Coast To Coast

Association News & Events

* NAHB Board Meeting in Washington April 27-May 2
* Column Service a News Source for Home Builders Associations
* Share Your Knowledge and Expertise
* Sign Up for the Legislative Conference and Make Housing a Priority in Congress
* Help Build This Year’s Family Build Home for a Mother of Three
* Calendar of Events

NBN Back Issues

 

NAHB Helps Me Stay in Business, Improve My Profit Margin

By David Hawke, President, Hawke’s Home Improvement & Repair

This should be read by anyone having a hard time with cash flow or running his or her business.

I own a small remodeling company and have been in business just over a year. Recently, I placed an ad to hire a carpenter and helper. I received numerous calls, most for the carpenter job. Two of the callers had previously owned their own construction businesses; one was a carpenter with 25 years of experience.

This got me thinking about why people who had owned their own businesses or had that much experience were out of work. And why I was staying busy. I believe the answer is my local association, the Home Builders Association of Southern Tennessee (HBAST), its Remodelors™ Council and profit margins. And they are all tied together.

I am an active member of my association and council and see many members and visitors at meetings. Many of them attend a few times but then never return. I think many of them believe


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they don’t have even a few hours a month to spare in a meeting. They believe they should be working their businesses, instead.

What many of them don’t realize is all the benefits they will get by being active and involved. As a member of NAHB and the Remodelors™ Council, I have more than 600 members in the HBAST and about 50 members of the Remodelors™ Council to help me when I need it. They keep me abreast of the latest information and I can draw from their experience. Many of the members are as interested in seeing my business succeed as I am.

For instance, during HBAST meetings my so-called competitors schooled me in profit margins and what I should be charging. I was told to bid my jobs at 45%-50% — nothing lower. Why? Because that is what it takes to survive.

I was advised by my fellow members to figure in everything, including license fees, general liability, workmen’s compensation, vehicles and tool fees. Look at the successful remodelers and builders around town; they don’t bid jobs at 10%.

My recommendation to anyone who owns a construction or remodeling company is to join your local association and one of the councils — and above all be active. Membership is only worth what you make it. For me, it produced a nice profit margin.

David Hawke is president of Hawke’s Home Improvement & Repair, of Chattanooga, TN, a residential remodeling company that specializes in additions, kitchens and baths. For information, e-mail Hawk.

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The recruitment efforts of each and every member on National Membership Day, April 26, are vital in ensuring its success. Contact your local Membership Chair to find out where you can help the most.


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Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB.

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started.

If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts.

 


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