Qualified Remodeler Magazine

JUL 2019

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

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THE U.S. economy is strong—so is the re- modeling market, which is estimated to grow 3 percent or more to nearly $400 billion in 2019. These gains come on top of several years of even more robust growth for remodeling. That is why it is so striking that "value" has gained traction with clients, moving to the No. 2 spot when viewed as a trait of overall satisfaction. In addition, "bud- get" as a factor in satisfaction has jumped from the No. 15 spot in each of the last two years to ĩĝĚ ĉĤ ( ĨĥĤĩ ĩĝĞĨ ĮĚĖħ þĤĪġę ĩĝĞĨ ĨĪėĩġĚ ĨĝĞƁ toward bottom-line results, among others year over ĮĚĖħėĚĖĝĖħėĞģĜĚħĤěġĖħĜĚħĨĝĞƁĨĞģĩĝĚĢĖħĠĚĩ Take the latest forecast for remodeling from John Burns Real Estate Consulting. It sees a slowdown in remodeling activity derived from big projects (everything over $5,000) and strong growth in the number of small projects (under $5,000). There are a number of reasons why the average ticket is falling back. First, younger homeowners are doing more home improvement; DIY is ticking upward ĩĤĤĎĚĘĤģęĖƁĚħĮĚĖħĨĤěħĞĨĞģĜĝĤĪĨĚĥħĞĘĚĨĞģ most metro areas, that growth is slowing, meaning slower equity growth. As a result, maybe this year, ěĤħ ĩĝĚ ŽħĨĩ ĩĞĢĚ Ğģ Ė ĬĝĞġĚ ĥĚĤĥġĚ ĖħĚ ĥĪĩĩĞģĜ tighter limits on what they are willing to invest. Higher Expectations čĚĨĥĤģĨĞīĚģĚĨĨ ĩĤ ĘĤĢĥġĚĩĚę ĞĩĚĢĨ Ĥģ Ė ŽģĖġ "punchlist" has grown in importance over the last three years. Back in 2016, it ranked as the No. 12 most important driver of customer satisfaction. Last year it moved up to the No. 7 spot, and this ĮĚĖħĞĩĨĩĖģęĨĖĩĉĤ&ÿĤĚĨĩĝĞĨĨĝĞƁĘĤħħĚĨĥĤģę ĬĞĩĝĢĖħĠĚĩĘĝĖģĜĚĨċħĤėĖėġĮģĤĩĈĤħĚġĞĠĚġĮ it is a byproduct of widespread improvements in service levels in all parts of the broader consumer economy. How quickly does Amazon solve a prob- ġĚĢĬĞĩĝĖģĤħęĚħĔĤĪĨĚģęĞĩėĖĘĠĖģęĩĝĚĢĤģ- ĚĮĞĨĦĪĞĘĠġĮħĚěĪģęĚęĄģĞģęĪĨĩħĮĖƁĚħĞģęĪĨĩħĮ ĩĚĘĝģĤġĤĜĮĝĖĨħĖĞĨĚęĚĭĥĚĘĩĖĩĞĤģĨċħĤėġĚĢĨĖħĚ resolved faster with less hassle. So if you are op- erating at 1995 or 2005 service-level speed, 2020 standards will certainly have a negative impact on how your customers perceive the job you are doing for them. Responsiveness, Eye-to-Eye Communication Ąĩ ĨĝĤĪġę ėĚ ħĚĖĨĨĪħĞģĜ ĩĤ ĠģĤĬ ĩĝĚģ ĩĝĖĩ ĖƁĚħ ŽīĚĘĤģĨĚĘĪĩĞīĚĮĚĖħĨĤěĘĖħĚěĪġĢĚĖĨĪħĚĢĚģĩĞģ producing this report with data from GuildQuality, attributes of "trust," "responsiveness," and an abil- ity to "resolve problems" remain at the top of the ĨĖĩĞĨěĖĘĩĞĤģÇęħĞīĚħġĞĨĩĔĤĪĢĖĮģĤĩĤŻĚħĩĝĚĢĤĨĩ up-to-date communication technology—apps for viewing progress or regular photos from the jobsite. Your way might be a text or a voice call with weekly updates. Clients are OK without all the bells and whistles. But you certainly can control how they feel about you as a reliable partner. How well do you handle a situation when, unexpectedly, there is a pipe running through a wall that is slated for ęĚĢĤăĤĬĬĚġġęĤĮĤĪĘĤĢĢĪģĞĘĖĩĚĩĝĚīĖġĪĚĖģę ĦĪĖġĞĩĮĤěĮĤĪħĨĤġĪĩĞĤģĨĔĤĪĘĖģęĤĞĩĀīĚģĞěĮĤĪ are old school, you can satisfy customers. The data presented at right represents most- desired traits across all job types. On the following ĥĖĜĚĨĮĤĪĬĞġġŽģęĩĝĚĨĚģĪĢėĚħĨėħĤĠĚģęĤĬģėĮ job category and type. Some traits are more highly prized in big projects versus smaller ones. Finally, ĬĚĥħĤŽġĚ'!ĘĤĢĥĖģĞĚĨĬĝĤĨĝĖħĚĩĝĚĞħĩĝĤĪĜĝĩĨ on what makes them so successful at creating hap- py clients. It is information that can certainly help you improve your bottom line. Trust, Value & Solutions Thousands of your clients have spoken. The 5th annual QR GuildQuality Satisfaction Report shows their happiness depends on these three traits more than any others. This report contains two parts: A statistical analysis of more than 100,000 GuildQuality, post-remodel client surveys and proles of 60 remodeling rms with extremely high levels of customer satisfaction. It was edited and written by Kacey Larsen and Patrick O'Toole, with the data and graphics collaboration of Alex Overall, Bailey D'Alessio and Michelle Lolley at GuildQuality. 34 July 2019 QualifiedRemodeler.com SPECIAL REPORT

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