Efficiencies in Kitchen and Bath Remodeling

Transcription

1 Efficiencies in Kitchen and Bath Remodeling Tim Faller Field Training Services Copyright 2017 Field Training Services Continuing Education Credits Informa Exhibitions is a registered and/or recognized education provider with The American Institute of Architects Continuing Education Systems. Attendees can earn credit upon completion of this program provided you sign in with appropriate license number on forms provided at the seminar room check-in tables. Electronic Certificates of Completion for all attendees will be available 7-8 weeks post show. This course is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods and services will be addressed at the conclusion of this presentation.

2 Learning Objectives Upon completing this program, the participant should be able to: 1. Outline how to run the production of a kitchen and bath remodeling company 2. Calculate how to sell at a profit 3. Identify field test methods for efficiently running a job 4. Review expenses and pricing to make the most out of every project Money/Time Issues For K&B Decisions not made Design incomplete Late materials Questions from job site Picking up materials

3 Why Is K&B Different? Time delays on small jobs are more consequential Working in a critical space in a home There is a critical sequence small space Complete Is The Key Complete - : having all necessary parts, elements, or steps <a complete diet>

4 12 Keys to Success Copyright 2017 Field Training Services 1. Complete Sales/Estimating Process Sales to provide Pictures of existing conditions Checklist for existing conditions Detailed inventory list for sales/design One for kitchens and one for baths Why a checklist? All selections made

5 2. All Selections Made How? Limit choices within clients desires Set deadlines Let them see the big picture Macro Schedule Help them see why this is good for them remember it is not about you Checklist for Bathroom Sales Existing Conditions Survey Location Shower Walls Complete tile omud set odrywall set Fiberglass/Acrylic Tub Material: Cast Iron Fiberglass Surround: Fiberglass/acrylic Tile: Mudset Drywall set Floor Covering Tile omud set oplywood set Vinyl olayers? Hardwood Vanity Material Top Supply lines omaterial ocondition Trap and Drain omaterial ocondition Damage under cabinet Condition of plumbing

6 Space below Bathroom: Crawl space Height Unfinished Basement Finished Basement oaccess for plumbing Space above Bathroom: Living space: Attic space: Access: Direction of ceiling Joists: End to end Front to back Kitchen Remodel Sales Checklist Cabinets: Manufacture Style Door Style Finish Hardware/Knobs Plumbing Fixtures: Faucet: Manufacture Model # Finish Soap dispenser: Manufacture Model# Finish Instant Hot: Manufacture Model# Finish Pot filler: Manufacture Model# Finish Counter Tops: Material Edge detail Sink: Drop In Integral Under mount Other Details Sink: If Drop in Manufacture Model# Finish Backsplash: Material Edge Detail Special Backsplash: Sink area: Material Pattern Stove Area: Material Pattern Electrical: Switches and Receptacles: Style Color Lights: Chandelier Under cabinet Recessed Surface mount Floor Covering: Tile: Manufacture Name/# Installation pattern Grout: Manufacture Color Sanded/unsanded Vinyl: Manufacture Name Hardwood: Species Size Stain Finish

7 Checklist for Bathroom Sales Bathroom Location Vanity Cabinet: Manufacture Style/# Door Style Handles: Manufacture Model # Top: Material Supplier Edge Detail Sink Configuration: Under mount Drop In Integral Sink: Manufacture Model # Material Hole Layout Faucet: Manufacture Model # Finish Hole Layout Handles: Model # Finish Basic Description Supply lines: Material Trap and Drain: Material Tub: Manufacture Model # Material/Finish Drain Handing Drain Finish Shower Base: Manufacture Model# Size Drain Finish Tub/ Shower Fixtures: Mixing Valve: Manufacture Model# Finish Handle: Manufacture Model# Finish Tub Spout: Manufacture Model# Finish Shower head: Manufacture Model# Finish Hand Held: Manufacture Model# Finish Hand Held Accessories: Function Model# Finish Function Model# Finish Bidet: Manufacture Model# Finish Toilet: Manufacture Model# Finish Seat: Manufacture Model# Finish Tile: Tub Surround: Manufacture Model# Finish Basic Pattern Grout: Manufacture Color Sanded/unsanded Shower Walls: Manufacture Model# Finish Basic Pattern Grout: Manufacture Color Sanded/unsanded Shower Floor: Manufacture Model# Finish Basic Pattern Grout: Manufacture Color Sanded/unsanded Floors: Manufacture Model# Finish Basic Pattern Room Walls: Grout: Manufacture Color Sanded/unsanded Manufacture Model# Finish Basic Pattern Grout: Manufacture Color Sanded/unsanded Electrical: Switches and Receptacles: Style Color Lights: Chandelier Over vanity Recessed Surface mount Bath Accessories: Towel Bar(s) Manufacture Model# Finish Toilet Paper Holder: Manufacture Model# Finish Mirrors: Size Edge Detail Installation: Glue Clips Shower Rod: Manufacture Model# Finish

8 Shower Door: Manufacture Model# Glass Finish Hardware Finish Floor Covering: Tile: See Tile section Vinyl: Manufacture Model# Finish Wood Floor: Specifies Size Stain Finish Laminate: Manufacture Model# Direction Paint: Ceiling: Manufacture Name/ # Finish Walls: Manufacture Name/# Finish Trim: Manufacture Name/# Finish Wallpaper: Manufacture Name/# 3. The Estimating System By the piece estimating for some Square feet, linier feet, tile installation, etc Actual pricing Cabinets, shower doors, tile material, etc Build estimating to your installers Not what you think it should take The problem with allowances Allows changes, often disputed

9 Why Is Estimating So Critical? Every piece is a greater percentage of the whole. In a $50K bath the cabinets may be $10K More dollars per day than a full remodeling job. More specialty intense - Why All The Lists? Create the details that go into the Estimate and the Scope! Helps be sure nothing is forgotten

10 What About The MarkUp? Issues. Product costs are out in the open There tends to be higher overhead per volume for smaller projects. Sales team sell more jobs for the volume Warehouse space, showroom space Really understand your overhead costs Sales, building, admin, etc. What About MarkUp? Basics: If your overhead is 30% of expected volume And you want 10% net your Gross Profit is 40% To get 40% Gross Profit your markup must be 67%

11 What About The MarkUp? Example Cost $10,000 x 1.67 = $16, sale price GP = (Sale price cost)/sale price $16,700 $10,000 = $6,700 $6,700/$16,700 =.40 (x100) = 40% What About Item MarkUp? Best to sell the whole job and not deal with item details! But.. If client is aware of general costs for product Cabinets =$20,000 x 1.67 = $33,400 Labor to install cabinets 24hrs x $50/hr = $1200 $1200 x 1.67 = $2004 Total Sale to client $35,404

12 What About Item MarkUp? But. Cabinets =$20,000 x 1.30 = $26,000 Labor to install cabinets 48hrs x $50/hr = $2400 $2400 x 200% (x4) = $9,600 Total sale price = $35,600 Work with sub costs as well. 4. Complete Scope of Work Detail everything that you want done Or give responsibility to installer to decide on the fly and you take the results (Do you really want that!) In order from start to finish Make info easy to find In language installer understands Not computer generated or boiler plate

13 5. Complete Review By Installer Site visit review existing conditions, Product review installation, usability, compatibility Dimensions particularly cabinets Approve for ordering 6. Complete Ordering Order everything needed for the job Have delivered to shop Check out the cost of storage vs. the benefit of a central depository Expeditor company (?) Best case attached to the office

14 7. All Product in Stock Before Start Control start dates Careful macro scheduling Know product lead times Confirm with manufacture 8. All Product on Site for Start Ask for space during sales process Bedroom, garage, basement, etc. Used for accurate decision making Better than a spec sheet Less chance of rework later No chance of not having it when needed

15 9. Realistic Schedules Use lists of tasks not Ghant charts Have the installer create them Check them Realistic is key Schedule to the half day (Trades) Be serious about staying on track!!!! Whatever it takes! Faller Master Bath Monday, May 16 Demo Need trailer and help Seal off MB door Remove everything Recessed trims only Tuesday, May 17 SAG Plumbing rough Tub Vanity Shower drain Cap small vanity supplies Blocking for Shower pan Blocking for accessories Frame ceiling above tub Wednesday, May 18 Electrical rough New fan tech fan unit Two locations Vent to outside 14 x14 access Framing Frame shower niche 8x12 Frame arch to sit on columns Frame shower curb Insulate under tub area Underlayment as needed Drop ceiling over tub Insulate under tub.

16 Thursday, May 19 Rough in electric and plumbing inspection Tuesday/Thursday PM Friday, May 20 Shower prep Install pan Install dense shield Hydro ban Building Inspection Monday, May 23 Plaster work Tuesday, May 24 Radiant heat floor Install cabinets Install columns for arch Tile Start Wednesday, May 25 Install vanity top with under mount bowls Tile Tile shower and grout Thursday, May 26-June 3 Tile floor and grout Tile wall behind vanity and grout Corian curbs Monday June 6 Template new shower door Install 6 ½ ledge near bath Install horizontal wine cabinets Install cabinet hardware Install rev a shelf Glass doors on Cabinet Frame in door Plaster in doorway Tuesday, June 7 Trim out plumbing Set tub Trim shower Set toilet Trim Vanity sinks Install bamboo cover over pipes Install mirrors Install towel bar, tissue holder, etc. Wednesday, June 8 Trim out electrical Trim in hall Paint Wallpaper Thursday, June 9 Paint and finishes Install shower door

17 10. On Board Subs Schedule ahead specific dates and times Confirm this works for them Must be reliable Confirm when job starts Be ready whatever it takes 11. Do Not Sacrifice Customer Service Clean up daily Stay on schedule Drops everyday

18 12. Final Completion Set completion meeting at the beginning of the job part of schedule Have an ongoing list Based on schedule Bring list to completion meeting Last day of job Zero Punch Final Job Debrief A meeting for all parties Each comes prepared One thing that went well One thing that did not go well ($) Discuss Pick one opportunity find a solution or a way to do that on every job

19 Thank You! This concludes the Continuing Education Program. Any Questions? Timothy Faller Field Training Services Improving profitability through production training