Vol. 8, No. 19 – September 14, 2009

New I-9 Form Available… A new form has now been posted to the USCIS web site: http://www.uscis.gov/files/form/i-9.pdf (The 2-2-09 version is still accepted.)

PLAN TO ATTEND PRODEALER SUMMIT

Purchasing agents from Beazer Homes, K. Hovnanian and Maracay Homes will address the ProDealer Industry Summit in Phoenix on Oct. 8, appearing at a panel discussion entitled, “Engineering Value: Builders Explain the New Standards in Home Construction.”

Tony Callahan, senior VP national purchasing, planning and design for Beazer Homes, and Mark Voetsch, VP purchasing and cost management processes, will discuss how their “value engineered” house will differ from what they built before the downturn – and how it may affect their relationship with their suppliers. John Coleman, director of purchasing for Maracay Homes, will talk about the regional builder’s “flex” design homes, a customer-centric model now being adopted by many builders. The 45-minute session will include a question-and-answer period with audience members.

Jointly sponsored by the National Lumber and Building Material Dealers Association (NLBMDA) and Home Channel News, the ProDealer Industry Summit will be held Oct. 7 to 9 at the Arizona Biltmore. Political analyst Pat Buchanan will deliver the keynote address, and other featured speakers include Yelena Takhtamanova, a Federal Reserve economist; Michelle Desiderio, director of the Green Building Programs for the NAHB Research Center; and Stan Smith, a Gen Y expert from Deloitte Consulting.

Source: Home Channel News ProDealer Digest, September 9, 2009

NLBMDA CALLS ON CONGRESS TO EXTEND HOMEBUYER TAX CREDIT

As Congress gets back to work, NLBMDA is calling on members of the Senate Finance Committee and House Ways and Means Committee to highlight the importance of extending the homebuyer tax credit before it expires on November 30, 2009. Over 140 letters were sent by NLBMDA members during the August recess, highlighting the importance of this tax credit in returning the housing market to stability and restoring our nation's economy. NLBMDA called on the committees to support and pass legislation such as that introduced by Sen. Johnny Isakson (R-GA) to make the tax credit available to all buyers and extend its availability through 2010.

If you have not already contacted your legislators in support of extending the home buyer tax credit, please do so today by sending a quick email at www.BuildtheVote.org.

Source: NLBMDA, September 8, 2009

How to Set up a Follow Up Call

By Bill Lee

In several of the sales training sessions I’ve conducted over the past few weeks, the topic of follow up has been brought up an unusual number of times. I hear questions like these from the audience:

? How soon should I follow up?

? Will it irritate customers if I follow up too quickly?

? When I follow up, what do I say? What words work the best?

? Do I ask for the order when I follow up or do I ask if the customer has received my quote?

All of these are good questions that a salesperson must answer if he or she expects to come across as more of a professional and less of an amateur.

I’ve always assumed that the customer would give me the order immediately after I give him a list of what I believe he needs and a price for our goods and/or services unless, of course, something was preventing him from making a decision right now.

So if I don’t get the order immediately, I make it a practice to ask what has to happen before he or she will be in a position to make a decision. To this question I may get one of several different answers. Examples might include:

? I have to run it by my boss.

? I’m waiting for a response from other vendors.

? We will have to have a meeting to compare quotes.

So first, find out when one or more of these events are likely to take place; that is, what day or in some cases what time of day.

Next, ask your contact if he or she will recommend your proposal. (You want to find out now, up front, if your contact is leaning toward you or toward one of your competitors.)

So assuming that your contact supports you and your company and you find out the date when one or more of the above events will take place, ask your contact to set up a time for a follow-up call on that specific day.

The key to this approach is that your customer or prospect is guiding you through the process, giving you the dates when certain decisions are going to be made and agreeing to a follow-up call at a specific time.

CRITICAL: Mark your calendar or PDA immediately to follow up on the agreed-to date.

Source: Lee Resources, Inc.

FALL FLING SET FOR NOVEMBER 5-6

The “Fall Fling” is the Annual meeting of MLA members. Thanks to members’ enthusiastic response, we are continuing this outstanding event and it keeps getting better. This year’s seminar on Friday, November 6, will be “Make Your Spot Shine” – presented by Phil Mitchell, of Discovery-Based Retail.

You’ve invested tons of time and money in your business. You’re extremely proud of it, as well you should be. But here is the awful truth: In the retail world in which you operate, your business is simply a spot – one of many choices available to your current and potential customers. Get ready to participate in a seminar that will help you learn how to “MAKE YOUR SPOT SHINE.”

Differentiation is a word that is bantered about in the retail industry, but here’s the scoop: Differentiation is more than just a “hot phrase.” In fact, the way you differentiate your business and make it relevant to your customers will determine, in large part, how successful your business will be.

Historically, the problem has been that casual thinking leads one to believe that there is almost a limitless number of ways you can try to separate your business from the crowd. That thought process is wrong!

In his presentation titled “MAKE YOUR SPOT SHINE,” Phil Mitchell will share with you the secret of the “6 Ps,” which are key elements that differentiate a store and increase its appeal to current and potential customers. Once you clearly understand the 6-P thought process, it becomes much easier to focus on the elements of customer interface. In fact, grasp the 6 Ps and you should be immediately able to develop real strategies for increasing your business.

“MAKE YOUR SPOT SHINE” is a fun, fast-moving presentation that will include group participation so come prepared to share and learn!

For more information, call Olivia at 800-747-6529, or visit our web site at www.TheMLA.com.

2009 MILL TOUR

There are still a few spaces left on the Spokane/Coeur d’Alene Mill Tour, October 4-8, 2009. Go to www.nlassn.org to view the flyer with detailed information on the industry tours, excursions, hotel accommodations and the registration form. Call Sally Means at 800-896-5134 with any questions. Sign up today to ensure a spot on the tour and discover why so many participants return every year – it’s a great group and lots of fun.

SAVE THE DATE

October 4-8 - 2009 Mill Tour - Idaho & Washington

October 7-9 - NLBMDA ProDealer Industry Summit, Phoenix, Ariz.

Nov. 5-6 – MLA Fall Fling – Kansas City, Mo.

Call the MLA Office – 800-747-6529 – for additional information or email: mail@themla.com

LUMBER NEWS – QUICK GLIMPSES

Record-Breaking Numbers… The Bureau of Labor Statistics (BLS) announced its latest numbers on labor costs in the private sector. Over the 12-month period ending June 2009, the employment cost index rose the smallest amount since 1980. Total compensation costs increased 1.5%, employee benefits costs rose 1.3%, and health benefits costs rose 4.4%. The BLS also noted record-breaking figures for mass layoffs (2,994 events) for the second quarter of 2009, the highest since 1995 when these data first became available. www.bls.gov.

Source: Monthly Benefit News, Milliman, Inc., September 2009

Economic Indicators… New-home sales rose in July over June by a surprising 9.6%, to a seasonally adjusted annualized rate of 433,000 units. While that’s still nearly 14% below the rate in July 2008, and while it’s still taking builders, on average, more than 12 months to sell new homes, many analysts and economists saw the sales increase as a sign of stability. (Census Bureau)

New orders for manufactured durable goods in July increased 4.9% from the prior month, to $168.4 billion. Excluding transportation, new orders rose 0.8%. Overall shipments increased 2.0%, while non-defense capital goods shipments rose 0.8%. Inventories fell 0.8% in July. (Commerce Dept.)

Source: NRHA eNewsletter, September 1, 2009

New Home Sales Jump 9.6%... The numbers from the Department of Commerce are the latest in a string of statistics that point to the end -- or near end -- of a housing slide.

Sales of new single-family houses rose to a seasonally adjusted annual rate of 433,000, according to data released today from the Commerce Department. That's 9.6% above the revised June rate of 395,000.

Source: Home Channel News, ProDealer Digest, September 2, 2009

Start-Up Plans to Build 25 Eco-Friendly Stores in California… A California start-up company today announced plans to open 25 green building materials stores in the Golden State, the opening move in what its owner says is a plan to place a store within a mile of every Home Depot and Lowe's outlet in the country and build a huge green training and networking site on the Internet.

New Home Inc. plans to open its flagship store in Dublin, Calif., next January. That will be followed by nine more stores in the Bay Area and Sacramento, another 15 elsewhere in California, and eventually stores and distribution centers in the rest of the United States. Each of the stores will cover about 30,000 square feet, employ roughly 40 people, and carry more than 200,000 eco-friendly products drawn from more than 500 manufacturers, New Home said in an announcement. New Home's website says those products span more than 36 categories, including lumber, roofing, flooring, insulation, and cabinets, but it doesn't identify any brands. Read more.

Source: Craig Webb, ProSales Business Update, September 2, 2009

Lots of Encouraging Housing News, But… The news surrounding the housing market of late has been undeniably encouraging. Both new and existing single-family home sales saw their fourth consecutive monthly increases in July, rising 9.6% and 7.2%, respectively.

In an even more upbeat sign of a budding recovery, the inventory of new single-family homes for sale has fallen to 271,000, its lowest level since March 1993. Inventories have been falling for 27 months from a peak of 572,000 homes for sale in July 2006.

A higher sales rate and lower inventory reduced July’s supply of housing to 7.5 months, down from 8.5 months in June. The months’ supply measures how long it would take to sell the current inventory of homes based on the month’s sales rate. As recently as January, this measure stood at an all-time high of 12.4 months.

Source: NAHB’s Eye on the Economy, September 2, 2009

Senators Want to Delay Climate Change Bill to Next Year… Several senators would like to abandon efforts to pass legislation curbing greenhouse gas emissions this year, and concentrate on a narrower bill to require use of renewable energy, Farm Progress reports. Senator Blanche Lincoln (D-AR), said the problem of doing both of them together is that it becomes too big of a lift, and that cap-and-trade is a real problem. Joining Lincoln in pushing for putting off climate legislation until next year are Senators Ben Nelson (D-NE), Byron Dorgan (D-ND), and Kent Conrad (D-ND).

Senate Majority Leader Harry Reid (D-NV), has said that a bill stripped of climate provisions isn't likely to go to the Senate floor, but with those four Democratic senators' stance on the issue, climate change in the Senate may be in trouble. Climate legislation needs 60 votes in the Senate to pass, and those four votes are necessary. Most Republicans and nearly 15 Democrats have already stated they don't favor the House-passed version of the bill.

Source: Farm Equipment Manufacturers Association Shortliner, September 2, 2009

Whirlpool to Close U.S. Plant… Whirlpool, the Benton Harbor, Mich., appliance manufacturer, has announced its plans to close a manufacturing facility in Evansville, Ind. Production of top freezer refrigerators made at Evansville will be transferred to one of the company's existing manufacturing facilities in Mexico. Production of icemakers made at the facility will be relocated to a company-owned site yet to be determined.

The closure will eliminate approximately 1,100 full-time positions in mid-2010. The company's decision followed a comprehensive review of alternatives for product consolidation within the refrigeration product category, it said.

Whirlpool operates 67 manufacturing and technology research centers around the world, making home appliances under the Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana and other brand names. Sales in 2008 were approximately $19 billion.

Source: Home Channel News, Weekly Digest, September 4, 2009

Investigation of Imported Drywall from China… The Consumer Product Safety Commission (CPSC) has received an additional 202 incident reports related to drywall, raising the total number of incident reports to 810. The new states reporting are Pennsylvania and South Carolina, making it a total of 23 states and the District of Columbia, where problem drywall has been reported. States reporting the majority of problems continue to be from Florida, Louisiana and Virginia.

The start of testing of various drywall samples to isolate specific emissions has begun at the Lawrence Berkeley National Laboratory and is expected to be completed by late September 2009.

Chinese manufacturers flooded the U.S. market with more than 500 million pounds of drywall just after Hurricane Katrina devastated New Orleans. Homeowners and contractors later reported that the sulfur-emitting wallboard wreaked havoc in homes.

To help victims of tainted Chinese drywall, bipartisan legislation was introduced in the U.S. Senate. The Foreign Manufacturers Legal Accountability Act of 2009 requires a manufacturer who imports products into the U.S. to have a business representative in at least one state where it does business who could receive any claims filed.

Source: OCSA Quick.Net.News, September 8, 2009

Congress Comes Back to Full Plate, Short Calendar… Congress reconvenes on September 8^th, after a full summer of contentious town hall meetings focusing almost exclusively on health care, with a short legislative calendar to accomplish a great amount of work. With the current fiscal year ending on September 30, not a single one of the 12 appropriations bill for the next year has been cleared for the President’s signature. The Senate is reportedly planning on taking up the appropriations bills starting this month, but it is unclear whether the Interior and Environment bill, which funds the U.S. Forest Service and the Environmental Protection Agency, will come up before October. That would force Congress to pass at least a short-term continuing resolution to keep the agencies in business.

Source: Forest Resources, American Forest & Paper Association, September 8, 2009

Payments to Dealers Keep Slowing, Survey Finds… Builders and remodelers paid their debts to dealers about four and a half days more slowly last month than they did on average in 2008, a ProSales survey finds. The pro-oriented dealers participating in the online poll said their average days for accounts receivables widened to 49.76 days in August from 45.16 days in 2008. The average varied by region and dealer size, but it went up in all cases except for dealers with $100 million-plus in annual revenues, where it was essentially unchanged. Read more.
Summary of Results

Source: ProSales Business Update, September 9, 2009

IF DISASTER STRIKES, WILL YOU BE OPEN FOR BUSINESS?

The ability of your business to deal with disasters is crucial not only to its future, but to the success of your community as well. How will your business react to the challenges that result from a tornado, fire, or flooding?

Federated Insurance is a member of the Institute for Business and Home Safety (IBHS), a national nonprofit group that works to reduce commercial and residential property losses associated with extreme weather events and natural disasters. As a result, many valuable resources relating to disaster and recovery planning are now available to MLA members and their employees at no cost.

One exciting new program available through Federated is Open for Business®. This program – which IBHS values at $2,000 per user – contains a variety of tools designed to help small business owners not only reduce their potential for loss should disaster strike, but also reopen quickly should they be forced to close. Open for Business® walks you through a 13-piece continuity plan to help identify and resume essential business functions, protect people and property, minimize downtime, and retain clients and customers following a disaster. This program is available both online and in a print version.

Another great tool is available on a site called Disaster Safety. This site is designed to help protect the homes and personal assets of business owners, friends, family, and employees by creating awareness of the likely perils that can occur in a specific region. This site includes a ZIP Code tool designed to concentrate the efforts of homeowners in preparing for specific perils such as floods, freezing weather, hail, high winds, wildfires, and tornados. Resources like best practices, assessments, guides, and checklists are all available to help protect your homes during a disaster.

Disasters of all types can threaten businesses and homes regardless of location. A community cannot survive a disaster unless businesses survive, and a business cannot survive unless its employees survive. Federated Insurance and IBHS offer you the peace of mind that these programs can improve the chances of avoiding costly repairs and increase the odds of staying in business should the worst happen.

To learn more, contact your Federated representative or visit www.federatedinsurance.com. Under Customer Links, select Open for Business® / Disaster Planning (businesses) or Disaster Safety (homes).

This article is intended to provide general recommendations regarding risk prevention. It is not intended to be legal advice or to include all steps or processes necessary to adequately protect you, your business or your customers. Please consult your personal attorney and insurance professional for advice unique to you and your business. © 2008 Federated Mutual Insurance Company. All rights reserved.

This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer.

MLA is proud to endorse….