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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performed, the more likely the workers are employees, not independent contractors. Scott Siegal, a roofng contractor, who owns the Certifed Contractors Network, was not a member of the panel, but recom- mends a good practice when approached by the IRS, or any government regulator, is to not accept the meeting on the spot when you are not ready, but rather defer to a time when you've had a chance to review your documents to make sure they are in order. "Candor and openness are important, but so too is being 100 percent prepared," he says. There are a series of 20 factors the IRS uses to determine "right-to-control" in an 1099 vs. employee situation. Each factor is designed to evaluate who controls how work is performed. To download a copy of the factors, go to qualifedremodeler.com/ IRS20factors1099. To learn more about the James Hardie Contractor Alliance Program, go to HardieAlliance.com. | Other "trending" marketing ideas included an intensifed focus on home shows and events, ideas to better manage relationships with trusted consumer sites like Angie's List and an increase in social media eforts. In particular, one contractor cited the search engine optimization (SEO) efcacy of posting more relevant and more frequent tweets. AVOIDING 1099 TROUBLE A contractor panel discussion about the increased enforcement of IRS rules distinguishing between subcontractors and employees ofered well-received, cautionary advice. IRS rules state that independent con- tractors must control the manner and means by which contracted services, products or results are achieved. The more control a company exercises over how, when, where and by whom work is groups pegged their growth rates in excess of 10 percent this year. Lead fows are strong and closing ratios have increased, they say. The reasons given for the expected growth were better marketing as well as improved econom- ic conditions that is fnally translating to higher consumer confdence, they added. Individual comments could not be attributed, but they represented large and small-volume contractors from around the United States. ATTRACTING, RETAINING TALENT Home improvement companies are always looking for high-performing sales staf and the level of compensa- tion seemed to vary widely. One group of large-volume remodelers seemed to agree that $80,000 in total compensa- tion for each $1 million in new business booked annually is enough to attract top talent. But there was less consensus on compensation levels needed to attract and retain project managers, who greatly afect customer satisfaction, and there- fore referral business. One owner said he now splits a reve- nue-based bonus between sales staf and project managers. Previously, this bonus was for sales only. "If a project manager is making $60,000 and a salesperson is making $140,000, this bonus can go a long way to retaining PMs," the owner said. The bonuses typically represent 5 percent of the excess revenue on a job that exceeds gross margin targets. And there was plenty of commentary on marketing. Bigger, faster-growing companies tended to put a lot of stock in radius marketing and canvassing. A fast growing, 5-year-old $8 million company in the Western U.S. was a good example. They exclusively employ radius marketing and invest a lot in training for their feld crews who do the canvassing. Another particularly winning idea involved the use of a video app that is normally used for sports coaches, called Coaches Eye, coacheseye.com. This contractor uses the app to capture video walkthroughs of fnished projects. The magic, the contractor said, is in the high number of homeowner inquiries from email and social media pass-alongs of the videos by the proud homeowner, which are branded by the home improvement company. QualifiedRemodeler.com QR March 2016 11 IN BRIEF Circular Drawer DWR5A ardware Arc itectural Your for Fine "Fine Furniture" ® h w w w . m o c k e t t . c o m • 8 0 0 - 5 2 3 - 12 6 9 For more info circle 56