Posted by Mark Paskell on Mon, Mar 08, 2010 @ 08:54 PM
This weekend, The Contractor Coaching Partnership will be conducting two seminars on the EPA RRP Lead Rule for homeowners at the Worcester, Massachusetts DCU Spring Home Show. I am scheduled to present these seminars at 12:30 PM on Saturday 12/13 and Sunday 12/14.
On 1/5/2010 I met with the Boston EPA Region officials and asked them are they going to advertise the EPA RRP Lead Rule to the homeowner. They indicated that adds were in the works and they thought they would start late January. To date they still are not positive when they will air.
I have decided to start seeking opportunities to spread the word to consumers. Whenever the adds start is up to the EPA. I think it's time the industry takes matters into their own hands. I see this as one opportunity to start educating the homeowner on the Lead Rule in my community. The lack of information to contractors and building officials is well documented. Have you asked any homeowners if they have heard of this new rule? I ask everyone and I have not met one person in three months since I started asking!
This seminar will explain the highlights of the rule, the dangers of lead and what is required to become certified. I will explain the things contractors must do in order to follow the law.
Then I will explain to the attendees what risks they take when they hire a non-certified contractor. I will lay out the scenario of hiring a non-compliant contractor and then experiencing a job stopped by an EPA visit. I will let them know what the industry is faced with trying to comply with a rule that is virtually unknown to many. Then we will explain the benefits of hiring the legal contractor and how they will benefit from cleaner and safer jobs.
The Worcester Telegram and Gazette also published an article I wrote called;
Homeowner Alert; Is your contractor EPA certified to work on your home? (click to read article)
I wasn't sure what they would print until today but they printed the whole thing just as it was written in the Home Show Guide.
I mention this with the thought that others may seek out opportunities like this in their own communities to start educating the public. If the residential construction industry can start producing press releases for print maybe we can educate the consumer on own own. Who knows when the EPA is going to start their promised campaign. Let's take ownership of the issue and get the word out.
Place a EPA RRP Web Page on Your Website
We can all start educating our customers and potential customers by placing an EPA RRP Lead Rule page on our site. This will begin the education before you get to their home and may make it easier to explain the details.
Posted by Mark Paskell on Sat, Jan 02, 2010 @ 04:56 PM
Recently on the NARI LinkedIn group, professional contractors shared their views on the EPA's enforcement of the Renovate, Repair and Painting Rule. One huge concern is contractors who comply will have to compete against thousands of illegal contractors who do not.
Most question whether there will be a concerted effort by government officials to effectively enforce this rule. For starters, most contractors have no idea this rule will take effect on 4.22.2010. As far as homeowner awareness, it is somewhere between slim and none. In addition, most building inspectors are unaware and many that are want nothing to do with the enforcement. They say they have enough new regulation to deal with.
So why don't we ask the big boys to start using their immense market presence to publicize the EPA RRP Law to consumers and contractors in every store in America. Imagine if every Home Depot and Lowes painting department had a huge sign at the register warning homeowners and contractors about this law. Let homeowners know that it is illegal for any contractor in America to work on a home that was built before 1978, unless they are an EPA Registered Firm and will employ a Certified Renovator on the project. Also publicize what can happen if consumers hire a non-certified company to work on the property. Show the fine amount of $37,500 that illegal contractors can be fined for non-compliance.
What about Service Magic and other Lead Generation Companies who boast having reputable contractors. They can post the EPA RRP LAW requirements on their website for anyone that is looking for a contractor. After all, companies like Service Magic claim that they only send out Certified, Licensed, and Reputable Contractors to consumer's homes. Let's ask Lead Gen Firms to require that they ask homeowners how old the house is. If the house is pre-1978 then inform the homeowner that only EPA Registered Firms who employ Certified Renovators can work on the home for projects that disturb the minimum square feet of painted area.
Is this too much to expect from companies who receive millions of dollars from contractors in the residential industry?
I think not. What if every contractor asked their local Home Depot, Lowes, Lumberyard and Painting supply store to publish the law at their counters? The stores can hand out a flyer explaining the EPA RRP Rule with every can of paint.
Let's ask Sherwin Williams and all paint manufacturer's to place information about the law on every can of paint.
Maybe this will help contractors and remodelers who decide to follow the rules. This grass root effort can help fill the void created by the EPA's inability to inform the public in the short term.
Lastly why not ask the leadership of NARI and the NAHB to persuade Home Depot and Lowes to publicize the EPA RRP Rule in every store in America. Isn't this only fair for all the business these associations give the big box stores?
What do you think? Can you think of any other grass root efforts?
mark the coach
Posted by Mark Paskell on Sat, Sep 05, 2009 @ 08:07 PM
Over the past 3 months I have been reading the Angie's list monthly magazine and was amazed at all the contractor advertisements that were in violation of the Mass Home Improvement Law. The Mass Home Improvement Law explicitly states that contractors must publish their registration number in all advertising. One would expect that Angie's list would not allow contractors who violate the law to advertise in their publication. I was thinking that it was time to expose this matter due to the dangers posed to homeowners who hire what they think is a good company based on the Angie's List.
Well I suppose their ears were ringing because this months magazine is devoted to the massive problems associated with contractor licensing throughout the country. The articles are eye opening and all contractors should take notice that the tide is turning in USA. The public is learning that hiring a contractor without the proper credentials, is not a risk worth taking. If you are not sure of the rules go to the state web site and learn what is needed to be in complete compliance. The only logical choice is to be a completely legal business. In our contractor coaching seminars we teach clients to obtain the proper licensing. The List has a huge following and should be applauded for bringing this long overdue issue to the forefront. Angie states in her article that all contractors will have 60 days to comply with the law or they will lose their eligibility to advertise with the List.
The articles cover a gamut of topics regarding the inconsistency of licensing and enforcement. In California they have strong enforcement, where in Massachusetts and Ohio enforcement is sparse, due to lack of funding. One article covers a contractor who says licensing is a joke and a ruse to take his money! Do you think an educated homeowner will hire him?
In Florida, Jay Carlson, President of the Florida Home Builders Association, is quoted as saying "unlicensed contractors put homeowners at personal and financial risk. Consumers often become victims and the livelihood of the law abiding, licensed contractors is threatened."
The tide is turning in favor of prosecuting contractors who chose to be illegal. With the recession culling out the fly by night contractors and increased consumer awareness of contractor credentials, the good guys will prevail to serve the marketplace. Educated legal contractors and remodelers are using this down to focus on learning how to make their businesses better. Many are taking courses, working with a contractor business coach and implementing systems.
Next licensing issue coming in 2010; the new EPA RRP lead paint law requiring all contractors who work on pre-1978 homes to be certified by the EPA. Historically no one likes increased regulation. However these new focuses may be just what our industry needs to reach a level of professionalism so lacking in the current remodeling and home improvement industry.
mark the coach
Posted by Mark Paskell on Fri, May 08, 2009 @ 09:30 PM
A recent thread on the Linkedin NARI group has generated over 130 responses from parties interested in the relationship between contractors and lead generation sites. The purpose of the thread was to provide a forum for contractors and LGC's about the numerous problems between the two groups. We were interested in obtaining dialogue from contractors and LGC's.
After 90 plus posts Service Magic, the Goliath of the lead generation industry finally joined in to share their views. In subsequent posts it was learned from Service Magic, that lead generation sites as a whole can not qualify leads for contractors because they don't understand contractors' businesses. You would think that if you provided a service that generated leads for a customer that you would understand and know that client!
This is one of the major concerns of all contractors who purchase these leads from the LGC's. Many LGC's claim that they provide good leads for their contractor clients. Based on the comments in the posts this is not the consensus. On ContractorTalk.comtheir are numerous threads about the poor service, sub-par leads, leads sold to more contractors then stated and misstated and incomplete information generated by the LGC's.
In these trying times contractors need to be very careful how they spend their marketing dollars. The strongest way to generate leads is to tap your client base and their contact sphere by generating referrals. Until LGC's change their way of doing business contractors will continue to receive little value from the leads generated. Newer contractors who have not been exposed to these problems continue to spend and waste thousands of dollars keeping these LGC's in business. If you are a new or established contractor and are considering buying leads from LGC's make sure you know what you are buying. The LGC's are very good at making things seem to good to be true.
One poster recommended that you should use the smaller local LGC's who seem to have a better track record then the big boys. Also, it doesn't hurt to have a strong marketing plan to generate leads from your existing client base and contact sphere.
Posted by Mark Paskell on Sun, Jan 11, 2009 @ 05:57 PM
We always hear about the bad stuff, like poor service and unfriendly people, how about something different for a change?
This past week I was the recipient of outstanding customer service twice!
On Wednesday I received a call from my tenant who said she had no hot water for a shower and the heat was off. The problem, I changed oil accounts and ran out of oil (my fault). It was 20 degrees with a house full of mostly women tenants! Boy, was I in trouble. I called my oil company (CK SMITH) and got the operator. I explained the situation and she sent me immediately to dispatch, who took my call right away. Within five minutes, with me on the phone hearing every word, she was speaking to an oil delivery man. She said they would have me up and running within a few hours. After the oil was delivered and heat was restored they called me to let me know everything was OK and that they should have known better to arrange a delivery earlier. I said wow, it was my fault and they took the blame.
On Saturday, we had an afternoon appointment for our digital box from the cable company (Comcast). The young man came, on time, wiped his feet, installed the box, answered all my questions, gave me some great advice on options to consider, (and I might buy them) was polite and knowledgeable. He coached me how to operate the new toy and made sure I was completely satisfied. After he left, I received a call from the company regarding was I satisfied with the service. They asked 4 or 5 questions and thanked me for my time.
When your homeowner client calls and needs customer service, how do you handle their situation? Do you have a process that will lead to outstanding customer satisfaction and happiness? When your customer calls do they get a pleasant knowledgeable person answering the phone or at least a pleasant voice mail? Do you return the call right away?
In this current market no one can afford not to deliver excellent service to their customers. With less leads, residential contractors need to make sure that existing customers are promptly serviced so they will stay with you. In our contractor coaching customer service program contractors learn how to provide great service and also get more work while they are there.
Will your customer right a blog post to brag about you and how blown away they are with your service?
mark the coach
Posted by Mark Paskell on Thu, Jan 01, 2009 @ 03:58 PM
2008 was a challenging year for contractors in the residential remodeling industry. With declining home values, tightened credit, lack luster new home construction, smaller remodeling projects and erosion of consumer confidence many contractors are facing uncertain futures. The time and need for change has never been more apparent than now. We need to analyze our businesses and make sure that we are able to deliver outstanding products and services to the Next Level Consumer.
Here are 11 obstacles that if not addressed, may prevent residential contractors from succeeding in the new economy.
1. Writing an accurate and effective business plan based on a defined strategy and goals consistent with best practices in the industry.
2. Developing a marketing plan that generates leads (your target customer) consistently.
3. Defining a sales process and learning how to sell on purpose, solutions to meet the needs of your customer and your company.
4. Learning how to develop and use the right markup to cover all your direct and indirect costs, materials, labor and overhead, and then leave your company a fair profit after all the bills are paid.
5. Learning how to develop and maintain consistent cash flow. Poor cash flow kills businesses.
6. Learning how to define roles and responsibilities and delegate to the appropriate trained employee. Contractors who wear too many hats cannot do it all.
7. Learning how to develop, train and use systems in line with industry best practices. Consumers are expecting educated and trained contractors who are experts in their field.
8. Learning how to manage expectations of the Next Level Consumer.
9. Learning how to attract, hire and compensate the right employees and not accepting high turnover.
10. Developing professional proposals, differentiation and deciding to set up and do business legally (licensing, OSHA compliance, the proper insurance coverages and classifications of employees, W-2 employment).
11. Decision to not accept work from the wrong client and performing work outside core competencies. Trying times can influence the decision to work for the wrong client and take work you are not set up to do.
What other obstacles impact the success of residential contractors?
mark the coach
Posted by Mark Paskell on Tue, Dec 30, 2008 @ 09:01 AM
Owning and operating a residential contracting business presents unique challenges for contractors servicing the homeowner market. These challenges are unique because the industry has very little structured business training for residential contractors who provide services to a savvy, demanding and educated consumer. Contractors with formal business education or experience from the commercial construction industry tend to do better with today's homeowner consumer if they use and apply, industry best practices and systems.
If you are a residential contractor, who learned from the school of hard knocks, you are discovering that practices and methods that worked a few years ago don't work as well or at all, with today's new consumer. If you are formally educated on how to run a business, are your practices and methods aligned to work with today's new consumer?
As you finalize your business plan for 2009, ask yourself the following question and please share your insights with the readers by responding to this blog post.
What do you think are the top 5 challenges facing your residential contracting business?
P.S. Next post, 11 challenges for today's residential contractor.
Posted by Mark Paskell on Sun, Dec 28, 2008 @ 07:53 PM
I wrote a post a few weeks ago about writing your business plan for 2009. How are you doing? We have a few more days until the New Year, will you be ready?
We met a contractor two weeks ago who is struggling with his 15 year business. and was curious if he used planning and goals for his business. We asked him if the results from this year matched up with his business plan and goals set at the end of last year. He replied that he always has his plan and goals in his head, he never writes the plan or goals down.
It is not uncommon for contractors to omit writing a business plan. Many contractors fell into the business with little of no business training. Many residential contractors will tell you they come from the school of hard knocks and that is all the training they need. Some have even told me they are hard headed and don't like change!
Unfortunately, this does not bode well for residential contractors who fail to plan. The residential homeowner is more savvy, educated and concerned who they invest their dollar with to work on their most valuable shrinking asset. A business without a plan will have a difficult time surviving in the new economy. Life and business are too confusing and hectic to try to navigate the waters without a clearly defined destination and a plan to get there.
One of the major fatal mistakes of residential contractors is the failure to write a basic business plan, set goals and define their strategy. Contractors with formal business education or commercial construction experience seem to be more likely to write a business plan and use goals, however this is not always the case.
For those contractors who have not written a plan there are several ways to learn how. It does not need to be perfect, just effective at describing what you are going to do and need to do, to reach your goals. You can research online, buy a business planning book form Journal of Light Construction book store, go to Borders, Amazon.com, go to the library, ask your CPA, hire a contractor business coach, join an association like NARI, NAHB, seek out a mentor, go to SCORE, and go to contractor forums to learn form other contractors.
Now that you know where you can go to obtain information on how to write a business plan will you do it?
A basic requirement of building a successful business is developing and writing down a business plan and goals. If you doubt this, ask 5 of the most successful people you know and convince yourself.
In December of 2009 when I meet you and ask how do your results of year 2009 match up with your business plan and goals you prepared at the end of year 2008?
What will your response be?
mark the coach
Posted by Mark Paskell on Mon, Dec 22, 2008 @ 04:30 PM
Recently a Contractor Talk.Com member referenced a new EPA fine assessed against a Massachusetts contractor. This new rule is another regulation to contend with. If you are residential remodeling contractor working on homes built before 1978 they are subject to the lead paint notification rule.
The article;
Release date: 09/22/2008
Contact Information: David Deegan, (617) 918-1017
(Boston, Mass. - Sept. 22, 2008) - A Medford, Mass. residential renovation and construction contractor will pay a cash penalty of $63,832 for violating the federal lead paint disclosure law that applies to renovations of residential housing.
An EPA inspection found that M.F. Reynolds Inc. of Medford violated the federal Pre-Renovation Rulethat requires contractors to provide lead hazard information to 121 owners of pre-1978 residential property 60 days prior to the start of renovations. The requirement for contractors to notify residential customers about lead hazards prior to renovation work is recent. This case is the first pursued by EPA within New England, and is one of the first cases nationally.
Common renovation activities like sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children. Contractors and renovators are required to provide an EPA pamphlet to residential customers 60 days prior to renovation work. The pamphlet provides information on the risks associated with lead-based paint and how to take measures to protect one's family from those risks during renovations or construction.
The existing housing stock in New England has thousands of older homes with lead paint. Our public officials are keenly aware that this lead paint rule may be another way to enforce compliance on obtaining permits. Building inspectors, state regulators, EPA and OSHA are all experiencing budget shortfalls and are looking for every opportunity to increase revenue.
Another point to consider is how this information can be used to differentiate your company in a positive way to help you win the confidence of an educated consumer. Educate yourself on the regulation and share this information with your prospects. This will confirm your expertness in the eyes of the homeowner. Then ask if they were educated by other remodeling contractors they are considering. If they say no, ask them if they are concerned that the other contractor didn't tell them about the lead paint rule. It may cast some doubt on the other guy and set you apart as the better company.
Finally, imagine if a homeowner hires you and discovers the rule while you are working on the house. Do you think it may present a possibility where the homeowner has doubt and can justify not paying you for avoiding the rule?
What are you doing to comply with the new lead paint regulations?
post #3
Posted by Mark Paskell on Sun, Dec 21, 2008 @ 02:56 PM
Over the past week many in the northeast have been walloped by the Ice Storm of 2008 leaving many without power and the basic necessities. On top of the recent economic downturn, foreclosures, declining real estate construction activity and financial troubles it is not suprising that people's attitudes are affected. We are easily reminded of all the recent and current challenges on the news, in the paper, the radio, the internet, work and the coffee shop. It is very easy to get caught up in the misery and before you know it you are not feeling very positive and your attitude towards things turns negative.
Keeping the proper perspective is vital to maintaining a positive attitude. Yes, it is a tough situation, but like all others it will pass. It is prudent and neccessary to be informed about the challenges we are facing but not smart to let them alter your attitude. The more we allow ourselves to think negatively about the bad economy or the tough winter upon us the more we attract and maintain a negative mindset. The law of attraction will not fail you. It will attract negative thoughts just as readily as it will attract positive.
One of the worst things we can do to reinforce the negativity around us is to spend too much time listening to, watching or reading the news. A good example of this is the weather. The media has become so adept at teasing the public through sensationalizing the weather reports. A hurricane can be thousands of miles away and people in New England 50 miles from shore will be glued to the channel. A routine snow storm of 8-12 inches is now an event for the ages when a few years ago it was normal New England weather. Are you addicted to the weather reports or the news? After you watch it for a prolonged period how do you feel?
Another example is the economy. Yes, for us contractors in the construction industry the economy stinks. Housing is down, credit is tight, low ball contractors are everywhere giving their work away, homeowners are holding back and more. So now that we know that, what are we going to do about it! Stop watching the news, stop complaining about no work, no leads, no money and start working on you and your business! The successful contractors of tomorrow will look back on this time and know that their investment in themselves now, was responsible for getting them ready for the future, when things rebound. Tomorrow's successful contractors right now are reading books, listening to tapes or cd's, working on their business plan for next year, taking sales training courses, working with a contractor business coach, working on their marketing plan and more.
I remember a seminar a couple or years ago where a speaker said one sure fire way to screw up your attitude is to listen or read too much news. He said if it dies, bleeds, burns, crashes or blows up it usually leads in the news. Just think what leads the news today. Murder, bank robberies, sex scandals, car crashes, business failures, political stuff, weather and so on. How many good stories have you heard leading the news? Probably not many because good news doesn't sell and it isn't sexy, grotesque or controversial.
To protect your attitude determine to spend as little time as possible watching the news. Get your information from the headlines or the internet. If you must be informed locally about a certain issue or situation by all means read up on it. It is very easy to get updates on the weather or news without listening to the sensationalists on the news.
How are you maintaining a positive attitude in these challenging economic and environmental times?