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Hitting the Daily Number
Jim Cory / REMODELING / July 31, 2013
What information do you need to evaluate the efficiency of a home improvement business?
When Scott Hayes, owner of New York Sash, gets to the company’s office in Rome, N.Y., in the morning, the first thing he looks at is the call reports filed the night before by the company’s four sales reps. “I look at the sale, the salesman, the amount, the product, and the financing status,” Hayes says.
Owners of home improvement companies — companies that sell jobs with a limited scope of work installed in a day or a few days — sometimes describe their businesses as marketing and sales machines whose product happens to be roofing, siding, windows, or some other replacement product.
They typically have different management priorities and different information needs from full-service remodelers whose work may consist of 10 or 20 larger jobs — additions, kitchens, whole-house remodels — involving several subcontractors. Ask Jeff Moeslein, whose company, Legacy Remodeling, in Pittsburgh, does both.
“We have six additions, 10 kitchens, and a couple of custom decks scheduled,” he says. “So if I don’t sell another one of those in a few weeks, it’s no big deal.” What is a big deal, Moeslein says, is the $14,000 window job, installed in two days, or the $20,000 roofing job, installed in four.
Creating and tracking those short-cycle replacement jobs, the biggest part of the company’s business, is not something he could step back from for a few weeks or a few days. Moeslein needs to know what’s been sold, scheduled, installed, collected, and that new jobs are moving into the pipeline daily, to stay on top of cash flow and profitability weekly and monthly.