Pushing Performance
Experts in incentive compensation offer tips that pay off

“Home builders are placing more emphasis on bonuses as a means to compensate employees,” says Robert Rivinius, CEO of the California Building Industry Association, which last year commissioned a survey of compensation in that state. Forty-four builders with more than 12,000 employees participated.

Experts in developing compensation plans for home builders say the amount of money devoted to incentive compensation will differ according to a company’s structure, culture, and the “level” of a particular employee within the business’s hierarchy. But they offer some general guidelines about the future of incentive compensation, some mistakes companies have made, and areas to consider when developing your own plans for rewarding employees for a job well done.

Read the full text of this article.

Do you want more information on compensation? Take our survey.

Pretty or Cheap? In a Slowing Market, the Choice is Clear

Six straight years of employment declines; building permit activity at a five-year low; and a region heavily reliant on the troubled auto industry. If these were answers on Jeopardy, you might guess the question was, “Where is the worst place to try to grow a successful home building business?”

Not so, says Michael Bosgraaf, the Western Michigan-based builder whose company is increasing its local volume and market share, while expanding its successful business model to warmer climes.

At the 2006 International Builders’ Show, Bosgraaf offered this common-sense advice to builders who want to do more than tread water in a slowing market:

• Offer a better home
• Offer a better community
• Offer a better experience
• Buy better than your competition
• Diversify

Do it right or die

“In other words, do everything right or die,” Bosgraaf says. “In a down market, there is nothing more important than customer service or customer focus,” but “if you run things well, there’s just as much opportunity in a slow or a stable market."

Read the full text of this article about Bosgraaf's strategy.

Drilling Down Into Integration: Part 1
By Mark Reich and Tom Gebes

Access to data that has been synthesized to provide a window on your day-to-day operations is key to successfully completing projects on time, and on budget. Information is power. With it, your project managers can keep an eye on critical details that are the difference between meeting a schedule and budget, or not.

In this first of two articles on data management, the authors discuss common issues and problems with integrating data. [return to top]

Tax Time is Here! Biztools is Your Resource
Tax time is here and www.nahb.org/biztools is your source for keeping up to date on IRS actions that matter to you, including those affecting small businesses and estate planning.

Need some assistance filing your federal tax return?  This Microsoft Word Document from the IRS may help.  Written by the IRS, it contains links to helpful information such as...

To click on a link within the Microsoft Word Document, just [ctrl + right click] and your browser should take you to the IRS Web page on that specific topic.

There are also IRS phone numbers (as well as hours of operation) listed for specific areas like:

• Refund Hotline
• Extension to File
• Forms and Publications

Access IRS One-Stop Resource Guide for Small Businesses today. [return to top]

Enticing Home Buyers with Freebies
As mortgage rates rise and builders seek to maintain good sales volumes, incentives are becoming more common.

A recent USA Today story focused on this trend while citing a a related NAHB survey. Our survey determined that, as of December, 40% of home builders were offering some type of non-price incentive to their buyers — whether it was a flat-screen TV, a $5,000 allowance for upgrades, or special landscaping additions. That 40% was up from just 28% of builders who reported offering such incentives as of the year before.

NAHB's study indicates that the average market value of the latest buyer extras amounts to approximately 2.4% of the home's price. Contact Steve Melman  (800) 368-5242 x8245 or Gopal Ahluwalia x8480 for more information.

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Creating Customers for Life--Part 3: Automate Your Marketing
By Steven Lewkowitz

During the housing boom, you may have found yourself swimming in a sea of leads from the Web and other sources, but merely treading water when it came to effectively assembling, assessing, and managing this potentially valuable marketing information.

While in a hot market builders may be able to beat the competition with less than perfect lead-stroking, in cooler times, mishandled leads can translate directly into lost sales. 

Although it's shaping up to be a modest slowdown, the cooling housing market is an opportunity for builders to shift from processes that worked in times of heady growth and gear up for when the going gets tough. Say "Hello" to marketing automation. Learn how to save money while reaching more customers in this business management resource. [return to top]

See How You Measure Up with The Cost of Doing Business Study
Find out how your home building business measures up against the competition with NAHB's "Cost of Doing Business Study."

Available from BuilderBooks.com, this one-of-a-kind resource gives home builders a rare glimpse at other builders’ books by providing data about profitability, cost of sales and expenses from hundreds of home builders across the country.

The latest edition of the study provides an opportunity to see how your financial performance stacks up against the industry as a whole — and against your goals for your business.

See how you measure up with industry-wide averages in these important areas:

• Gross margin and net profit
• Cost of goods sold
• Financial ratios (current ratio, debt-to-equity ratio, and more)

The "Cost of Doing Business Study" has the data, analyses and guidance you need to boost profitability, increase efficiency, set realistic budget targets and improve your business practices.

To order the "Cost of Doing Business Study," click here, or call 800-223-2665. [return to top]

March 17 is the Deadline for Custom Builder Symposium Proposals
If you have proven ideas for building more productive relationships with architects and trade partners, improving marketing, smoothing the selections process, taking control of customer service and warranty, new design ideas, or any other area of the custom home building process, NAHB wants you!

The Custom Builder Symposium, NAHB’s premier event for custom builders, is seeking presenters for the 2006 meeting. Proposals are due by March 17, 2006. They must be submitted online. To read more about the process and submit a proposal, go online to http://www.nahb.org/isesProgram_select.aspx.

Speakers at the Custom Builder Symposium are experts in their field as well as engaging presenters, says NAHB Custom Home Builders Committee Chair Mary Schroeder. Attendees generally enjoy hearing from leading custom home builders “in the trenches” or who have been there — dealing with high-end customers’ wants, needs, and concerns. In addition, she said, custom home builders today are looking for housing-industry specific information to help them meet the needs of a market that is increasingly Generation X and Y clientele, not just Boomers building a second home or retirement home.

Symposium presenters receive a stipend and, more importantly, complimentary registration that allows them to experience the energy custom home builders bring to  this first-class event.

An unparalleled event for custom builder networking and learning, this year’s Custom Builder Symposium will be Oct. 27-29, 2006, at the spectacular Lake Las Vegas Resort in Nevada. To read more about it, go online to www.nahb.org/custom.

Whether you’re building your first custom home or looking for new ways to process your maturing company, the symposium offers cutting-edge information and valuable “how-to’s” on every aspect of the custom home building business. Participants also learn about products and services specifically designed to meet the needs of the custom home builder, and each participant receives a comprehensive workbook of practical ready-to-apply tips to take home. [return to top]

NAHB Member Advantage: GM $500 Exclusive Offer!
NAHB members are eligible for a $500 exclusive offer on most GM passenger cars, light-duty trucks, vans and SUVs through the GM NAHB Affinity Card program. The card was mailed to all members last month.

All eight GM nameplates are included in the offer: Chevrolet, Pontiac, Buick, Cadillac, GMC, Saturn, Saab, and HUMMER. Some models are excluded.

The $500 exclusive offer can be combined with most national and regional incentives in effect at retailers at the time of delivery. The program runs through January 3, 2007.

For details, visit www.gmfleet.com/nahb. More information is available from Tiffany Smith, 800-368-5242 x8273 or tsmith@nahb.com.

Other Member Advantage Discounts

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/ma. [return to top]

2006 Mexico Trade Mission
Builders, suppliers, and other housing industry professionals can explore business opportunities in the Banderas Bay area on a Mexico Trade Mission, April 2-4, 2006.

Participants will meet builder members of Mexico's Construction Industry Chamber, government and tourism officials, and U.S.-backed development project managers. They also will visit housing developments.

In addition, the U.S. Embassy Foreign Commercial Service will brief participants about local and regional housing markets, best sales prospects, and marketing strategies. Participants will gain an understanding of Mexican culture, business practices, and other issues essential to working south of the border. Other experts will discuss what to look for in a Mexican business partner.

For more information, contact Marco Amaro at 800-368-5242 x8419. [return to top]

University of Housing Honors Designees of the Year
NAHB's University of Housing honored four housing professionals at the 2006 International Builders’ Show in Orlando, Fla., for their contributions as holders of professional designations and for elevating the image of designations in their community.

The honorees are: Annie Morgan, 2005 Certified Aging-in-Place Specialist (CAPS) of the Year; Dianne Beaton, 2005 Certified Graduate Associate (CGA) of the Year; Dan Bawden, 2005 Certified Graduate Remodeler (CGR) of the Year; and Scott McCollum, 2005 Graduate Master Builder (GMB) of the Year.

“These designees go above and beyond to promote NAHB’s designation programs through innovative practices, mentoring others and encouraging continued education in our industry,” said Robert Bell, 2006 Chair, CGB Board of Governors and a CGR and CAPS designee. “Every building professional who goes through the program comes out with a demonstrated level of expertise in a niche area that can benefit the consumer. These honorees, however, have differentiated themselves by going out into their communities and advancing awareness of professional designations and their importance.”

In a competitive marketplace, differentiation is key to success. Through The NAHB University of Housing professional designation programs, building professionals across the country distinguish themselves from the crowd.  Professional designations offer excellent opportunities for housing industry professionals to improve their skills, advance their careers, and exhibit their commitment to professional growth. There are 13 designations in areas as diverse as remodeling and sales to property management and affordable housing.

For more information about The NAHB University of Housing’s Designees of the Year, including eligibility requirements, call The NAHB University of Housing Professional Designation Help Line at (800) 368-5242 x8154.
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