Friday, March 27, 2009

The Summit Is In Sight . . .

The Home Improvement Economic Summit is upon us. April 1st and 2nd 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

Wednesday, March 18, 2009

A Changing Economy


“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