a cut above - december 2012
DESCRIPTION
The monthly publication of the Lake Region Builders Association.TRANSCRIPT
page 1page 8
A Cut AboveLake Region Builders AssociationDeCeMbeR 2012
A Monthly newsletteR seRving beCkeR, otteRtAil, noRMAn, wilkin AnD MAhnoMen Counties
eMAil: [email protected]: 218.847.0699visit ouR websitewww.lakeregionbuilders.com
lake RegionbuildersAssociation
pResiDent bryan schoenberger, Pike Creek Builders/Modern Living Concepts
seCRetARy/tReAsuReR Jason Coley, Don Tietz Construction
pAst pResiDent tim Roble
viCe pResiDent nick green, Green's Plumbing and Heating
eXeCutive oFFiCeR sharon westerholm
tim Roble, Lavelle Company
Mike hough, Hough, Inc.
greg neisen, Crane Johnson Lumber, Perham
nick green, Green's Plumbing and Heating
Marty ekern, Apex Electric
shaun engelsrud, Kinetico
scott buchholz, Scott Buchholz Construction
boARD oF DiReCtoRs
— visit bam.org each week for updates —
525 Park Street, Suite 150 • St. Paul, MN 55103p. 1.800.654.7783 or 651.646.7959f. 651.646.2860 www.bamn.org
1201 15th Street, NW • Washington, DC 20005p. 800.368.5242 or 202.266.8200x0f. 202.266.8400 www.nahb.org
lRbA leADeRship
Homes of DistinctionGeneral ContraCtor
new Homes
remodelinG
residential
CommerCial
Call us today to start planning your perfect home.
DON TIETZ CONSTRUCTION, INC.
“The name built on quality” 439-6271
Thirty years of excellence
1040 Randolph Road • Detroit Lakes
218-847-7459www.ModernHeatingAndPlumbing.com
For Your Familys Comfort
30614 SunSet Road • detRoit LakeS
218-847-1946
Residential • new Homes & Remodelinglicensed & Bonded • electRical contRacting
mn lic# Bc-20460621nd lic# 32002
Detroit Lakes, MNHome (218) 846-0079
Cell (218) 849-4489
“Committed to Quality & Service”• Post Frame Buildings• Residential• New Construction• Remodeling• Garages
• Doors & Windows• Decks• Siding• Light
Commercial
FRANCIS CONSTRUCTION
— Dave Francis — 218-847-4054
— Scott Francis — 218-847-3556
Specializing In...
Offering...
• State of the art construction materials & techniques • High quality workmanship • Complete satisfaction guaranteed
• New Homes • Steel Siding • Remodeling • Garages • Additions • Replacement Windows • Decks • Sunrooms
“Your Hometown Quality Builder & Remodelers”O
Specializing In...
Of
StamaHig
• Cog
S i li i I
O
• S m• H• C
18872 Co Hwy 21 • Detroit LakesTom Kirby, manager
218-847-1133 or 1-888-757-1133
Safety is a Way of Life
OUR NEXT MEETING IS SCHEDULED FOR DECEMBER 13TH AT I’LL TILE & STONE
They are located at 1673 Dan St., Detroit Lakes. (North on Richwood Road, left at Tower Road/Fer-rell Gas corner. Take the first left for about 1/4th block). They will provide food and beverages and a very informational meeting. Check out their new website at www.illtileandstone.com.
ouR noveMbeR 15th Meeting wAs helD At the speAk eAsy RestAuRAnt with JeFF peteRsen from the Water Furnace International being our speaker for the meeting. Jeff gave us some very good information on geo-thermal heating and what the savings could be for if you install this in new homes, as well as, existing homes. Jeff has joined our Association, so if you have questions, please contact him at 1-877-533-0026.
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
Heat Pumps • Earthloop Materials Radiant Floor Heat Materials • Electric Boilers
Heat Recovery Ventilators • Fan Coils
Kevin OlsOn 218-367-5196
[email protected] • www.geodirectsupply.comOver 20 years of Geo-Thermal Experience
GeoSupply, inc.DIRECT
Greetings,The holiday season is here along
with the music, shopping and cheers! Hopefully everyone has their outdoor projects wrapped up and is moving inside. The Builder’s Day, at the capital, is coming January 30th. If you haven't signed up, talk with Sharon. It is important that the building industry has a strong showing. I recently sat in on the unlicensed task force for BAM. We are working on strategies for improving the contractor’s recovery fund. There have been some issues with the funds over the years and we are working to keep them directed towards what they are intended. Merry Christmas and a Happy New Year to all! Be safe out there.
Bryan SchoenbergerLRBA President
builDeRs buZZ
CoDe oF ethiCsMembers of the Home Builders association subscribe to the following Code of ethics
n Members shall constantly seek to provide better val-ues for the customers they serve.
n Members shall at times share their knowledge with fellow members in the public in the best interest of those they serve.
n Members shall not obtain any business by means of fraudulet statements or by use of implications unwar-ranted by fact or reason-able probability.
n Members shall comply, both in spirit and letter, with rules and regulations prescribed by law and government agencies for health, safety and progress of the community.
n Members shall not perform a cause to be performed at any act which would tend to reflect on or bring into disrepute any party of the industry served by this as-sociation.
“to promote professionalism and to educate members and
consumers on legislative issues, while fostering
cooperative relationships for all stakeholders”
page 7page 2
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!HUNTER BRIARD
218-439-6043 • Cell: 218-841-3238Email: [email protected]
12568 E. Pearl Lake Road • Detroit Lakes, MN 56501
BRIARD CONSTRUCTIONNEW CONSTRUCTION • REMODELING • SHINGLING
SIDING • DECKS • ADDITIONS • GARAGES • DOORS • WINDOWS
my ViewSharon Westerholm, EOHere we are coming up
on the Christmas season again. I am not sure where the year went. I love this time of year and would love it more if it was warmer. There has been much going on, as usual, with working on the two
EXPO’s, the Annual Meeting and Christmas Party and the Home, Garden and Sport Show. If you haven’t booked your booth, I would suggest you do so as soon as possible as we are about ¾ booked up. Watch your mail for information on the Annual Meeting. It is scheduled for January 10th, with dinner at the Legion, then we will go to the Detroit Lakes Community Center to see “Deuces Wild Dueling Pianos”. I guess Dave and Ted put on a fantastic performance. The Annual Meeting will be held during dinner, with the new board of directors being sworn in, recognition of the outgoing and new President and outgoing board members. We will also be giving out awards for Builder/Remodeler of the Year, Associate of the Year, Citizenship, and BEAM (Builders Employing Associate Members). If you have not voted yet, please call for a nomination form. It will be a jam packed evening, so don’t miss it.
INTERNATIONAL BUILDERS SHOW – there is still time to register to receive discounts. It is being held January 20th – 24th, 2013 in Las Vegas, Nevada. First time attendees registration is $125.00, Early Bird by Dec. 3rd is $325.00 and On Site registration is $450.00. Go on line to www.nahb.org to register.
We have a few ad spots, in the newsletter, open. Cost for a small ad is $160.00 per year and $300.00 for a double. Please call if you are interested.
I want to wish everyone a very Merry Christmas and a Happy New Year.
God’s Blessings to you all!
Fill in the blank…The most frequent questions I get, as a manage-
ment consultant and former CFO for a top 100 builder, are inquiries such as these…
• When do I need another construction manager? • Can I afford a model home? • How many people do I need if I double my
revenue?Financial benchmarks can answer all these ques-
tions and become a foundation for your operational business model for years to come. In this message, you will find ways to not only answer these types of questions but also a means of making budgeting much easier.
Benchmarks and the Financial Business ModelOne of my primary goals when working with a
client is to help them establish their own financial business model. The business model includes the con-cepts and operational goals needed for the most direct path to long term success of any organization. The financial business model represents the “numbers” side of the model.
A business model, to be valid, must be three things: sustainable, scalable and replicatable. This means that you can…
• Meet the results year after year (it is sustainable), • Scalable means you can apply the same model as
you grow or contract the business (raise or lower your revenue) and
• The model can be replicated geographically if desired (think McDonalds or any other success franchise).
The financial business model is the set of bench-marks that when met and maintained produce the best results in profitability and operational efficiency. They produce that “sweet spot” of results which are sustainable, scalable and replicatable.
Operational Benchmark ExamplesThere are some basic benchmarks that are fairly
consistent with all successful homebuilders. Others are specific to the company and their way of doing business. With time and experience, you will be able to firm up your company specific business model benchmarks. Some of the benchmarks that are consistent between builders are the ones that can address the questions at the start of this management message.
As an example, a construction manager’s salary (bonus included) and salary related burden (payroll taxes, etc.) should cost you 1.5% of the revenue he produces (houses he constructs). This means an employee with a $60K annual cost in this position should produce $4 Million in homes. Now in your business model this may be 10 - $400K homes or 20 - $200K homes or even 4 $1 Million homes, but the benchmark is pretty consistent as an average.
So if the company was going to do $12 Million in revenue and their average cost per construction manager was this $60K number, then your company would need and be able to afford three construction managers (sometimes referred to as Superintendents). This is then one component of your business model.
Can you see how this would make decisions (especially correct and valid business decisions) easier
for the business owner or manager? You have a time tested business model principle to fall back on.
Another example benchmark helps answer the question of “when can I afford a model or a second model in a single location?” This benchmark has a little more range of correct answers, but depending upon your volume, model home expense should be .5% to 1.0% of the sales revenue generated by the model homes. The smaller the volume of the builder the closer the correct benchmark is to 1.0%. The national builders typically use a benchmark of .5% or sometimes even a wee bit less.
The model home expenses to be considered within this benchmark are…
• The interest on the model construction loan (or lease amount if sold and leased back)
• The utilities of the model home• The cleaning, landscape maintenance and pos-
sible snow removal contracts for the model home and parking lot.
• The expenses of maintaining the sales office within the model home (not the salary of a salaries salesperson). Copier, phone line, paper and office sup-plies are included here.
So a company with a single model home with $35,000 per year in overhead expenses related to that model home should be producing $3.5 Million (thus the expenses would be 1% of the revenue) or more (less that 1%) of revenue through that model home.
How Benchmarks and the Business Model can Benefit Your Company
Once you have a reasonable set of benchmarks es-tablished for all areas of your business and have a staff that is trained to understand the benchmarks and the resultant business model, you will be surprised at how the decisions become easier. You will also find that it is easier to push management decisions down to lower levels within your company and thus save yourself time and frustration.
A great example of this is in budgeting. The budget, in many areas, becomes a by-product of the established benchmarks.
During my days as a builder, my most consistent benchmarks helped the company build 500+ homes per year much more easily than what we experienced building 50 homes per year. I knew how many em-ployees it took to maximize volume and profitability and keep the turnover (from employee burnout) low. I knew that it took 7000 annual model home visitors to make 700 gross sales and 590 net sales. How many new customer registration cards would you have professionally printed each year if you knew these numbers? When would you reduce/increase advertis-ing? What would be your monthly traffic registration goal on average?
All these operational questions were addressed by the numbers or benchmarks that comprised our business model. Do you see how they helped us make better (and quicker) management decisions?
Hope you enjoyed this article courtesy of your local HBA.
Thanks, Bob Whitten, SMA [email protected]
“How mucH sHould I spend on…?”
Crane JohnsonLumber Co.
established 1883
620 East Main • Perham, MN 56573phone 218.346.5555 • fax 218.346.9200
GreG NeiseNsalEs MaNagEr
2012 Election ResultsThis year’s election saw change here in Minnesota, but
nationally the balance of power stayed the same. Nation-ally, most swing states went blue, and the coalition put together by democrats in 2008 including minority voters, young adults, education professionals, and women held, for the most part, assisting President Obama in winning reelection. In Minnesota, Obama won by nine points.
On a state election level, the Minnesota senate DFL had a net gain of 8 seats of which they needed 4 to take the majority. The senate balance went from 37 republicans and 30 democrats to 28 republicans and 39 democrats. In the House, democrats had a net gain of 11. They needed six to regain the majority. The makeup of the House went from 72 republicans and 61 democrats to 61 republicans and 73 democrats. The two bodies have chosen their leadership. Senator Tom Bakk is the Senate Majority Leader and Representative Paul Thissen is the new Speaker of the House.
See a full run down of the election results nationally and in Minnesota at:
Star Tribune http://elections.startribune.com/re-turns/index.html
CBS http://www.cbsnews.com/election-results-2012/
BAM put together a list of housing friendly candidates on both sides of the aisle and targeted those individuals for BAM-PAC donations. We are happy to report that 31 of our 37 candidates were elected putting us at an 84% success rate.
What This Means For BAMOver the last couple of years we’ve expanded and
intensified our relationship with democrats and repub-licans, rural and metro legislators, across the state. We have strong relationships with legislators that understand our priorities, and that is going to be especially important now that we have a DFL majority in both the house and senate.
In the coming months and during session we will need to keep our message clear – a healthy housing industry means a healthy economy and jobs. In the time leading up to session, please be sure to introduce yourself to your legislators. With several new legislators at the Capitol it’s especially important that we educate them about our issues. It will also be important to have a big showing at Builder Day at the Capitol January 30th. Please mark your calendars and plan to attend.
The BAM Awards Dinner and Pam’s Goodbye Party is December 5, 2012 at the Crowne Plaza Minneapo-lis North. All are invited to attend as we celebrate Pam Perri’s time with the Builders Association of Minneso-ta. Pam will be present as we give her a formal send off and thank you for her service as BAM’s Executive Vice President these past 11 years. Come
celebrate the last decade at BAM and this year’s award winners. You won’t want to miss this event!
Cocktail reception begins at 5:00pm. Dinner and program start at 6:00.
RSVPRegistration is required for this
event and is done online. Cost is $25. Sponsorships Available
Find out how your company can reach a statewide audience through sponsorship - visit bamn.org/spon-sorship-opps for more information and contact Jenae Palewicz with any questions at [email protected].
We’re excited to celebrate with you! Register today and we’ll see you December 5th!
www.HBArebates.com What would you think if you
could get a rebate for your loyalty to many of the nation’s leading housing industry Manufacturers? Well, now you can regardless of your volume!
We’re happy to introduce the BAM Member Rebate Program,
a free member benefit, aimed at increasing your bottom line. For the minimal effort of informing us about the products you use, and telling us when you close on a home or project, you’ll be putting money back in your pocket. When you participate in the BAM Member Rebate Program, every home you
build can earn you rebate checks! Remember, both Builders AND Remodelers qualify for the BAM Member Rebate Program. Over 70% of the Builders & Remodelers who participated last year received back in rebates more than they paid in annual dues to the Association!
BAm montHly column
a style for every point of view
Melody Kruckenberg, Owner218-844-7052
1326 Loring Ave • Detroit [email protected]
budgetblinds.com
November 2012
This week at BAM...
BAM Member Rebate program
page 3page 6
Over 50 Years in the Lakes Area
New Construction
& Remodeling
NODSLE CONSTRUCTION
1473 Legion Road • Detroit LakesRes. 218-847-8347 • Lic. #1834
Perry Nodsle 847-7603
• Residential • Commercial• Cottages • Cabinets
EstabLishED 1955
Building a New Home?
Lock InTodays Low Rates onPermanent Home Financing12 Months from Application Date
Call Today!phone 218-844-3000920 Lake AvenueDetroit Lakes
MeMbeR CoRneRnew MeMbeRs – we welCoMe you
MeMbeRs ReneweD
up FoR RenewAl
MeMbeR news
Dream It/Paul Davis Rest. & Rem. – Jeff Boehm•Don Tietz Construction - Jason Coley •Do Right Construction – Jim Herman•Modern Living Concepts – Bryan Schoenberger•
Water Furnace International – Jeff Petersen sponsor Rick Michaelson
Custom Windows – Joe Honrud sponsor Mike Eidenschink
Is there something happening in your business? With your family? Let us know, we would like to acknowledge it.
Painters Plus - Shane Heille•Briard Construction – Hunter Briard •Esser Plumbing & Heating •– Kelly Fingalson
Crowell Construction – Tom Crowell•I’ll Tile and Stone – Troy Fingalson•Kinetico – Frank Bettin•Bell State Bank Julia Okeson•
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
BuIldeRs & RemodeleRsAHmAnn ConstruCtIon Wayne Ahmann phone: 218-935-2622
Al ClArk ConstruCtIon Al Clark phone: 218-849-4489 email: [email protected]
Anderson ConstruCtors David Anderson phone: 218-532-7429 email: [email protected]
BrIArd ConstruCtIon Hunter Briard phone: 218-439-6043 email: [email protected]
Cogger ConstruCtIon Rick Cogger phone: 218-849-7459 email: [email protected]
CroWell ConstruCtIon Tom Crowell phone: 218-847-1931 email: [email protected]
do- rIgHt ConstruCtIon oF tHe lAkes Jim Herman phone: 218-234-1095 email: [email protected]
don tIetz ConstruCtIon Don Tietz/J. Coley phone: 218-439-6271 email: [email protected]
dynAmIC Homes Arlen Johnson phone: 218-847-2611 web: dynamichomes.com
Foltz BuIlders David Foltz phone: 218-847-3281 email: [email protected] web: foltzbuildings.com
FrAnCIs ConstruCtIon oF detroIt lAkes David Francis phone: 218-847-4054 email: [email protected]
FrAnCIs genereux ConstruCtIon Francis Genereux 218-849-8808 email: [email protected]
g & r HIll ConstruCtIon Gene & Randy Hill phone: 218-847-5947 email: [email protected]
gAry HeItkAmP ConstruCtIon Gary Heitkamp phone: 218-847-8441 email: [email protected]
HerItAge Homes, llC Tyrone Leslie phone: 701-281-7184 email: [email protected]
HemmelgArn BuIlders, InC. James Hemmelgarn phone: 218-346-2377 fax 218-346-3242 email: [email protected]
JBs BuIlders, llC Jayson Storo phone: 218-232-0472 & 218-495-2005 email: [email protected] web: [email protected]
keItH FrAnCIs & son’s ConstruCtIon, llC phone: 218-556-9711 email: jfrancis@mahnomen.
k12.mn.us
klInton BArtHel ConstruCtIon, InC. phone: 218-841-2087 fax: 218-844-5461 email: [email protected]
nodsle ConstruCtIon Perry Nodsle phone: 218-847-7603 email: [email protected]
PAul dAvIs restorAtIon & remodelIng Jeff Boehm phone: 218-847-1800 email: [email protected] web: pdremodel.com
mArk stone ConstruCtIon Co. Mark Stone 414 Bryant Ave. SW Wadena, MN 56482 phone:218-639-5059 email: mark-camille
@mstoneconst.com
modern lIvIng ConCePts Bryan Schoenberger phone: 218-841-2006 email: [email protected] web: pikecreekbuilders.com
sCott BuCHHolz ConstruCtIon Scott Buchholz phone: 218-864-9947 fax: 218-864-5046 email: scottbuchholzconst
@arvig.netweb: www.scottbuchholz
construction.com
WoytAssek Custom Homes Warren Woytassek phone: 218-844-4661 AssocIAte memBeRs AmerIgAs ProPAne Tom Kirby phone: 218-847-1133 email: [email protected] web: amerigas.com
Andy FrAnCIs lAndsCAPIng ConstruCtIon Andy Francis 12352 Shorewood Beach Rd phone : 218-439-3320 email: [email protected]
APex eleCtrIC & lIgHtIng Marty Ekren phone: 218-847-5244 email: [email protected]
ArvIg seCurIty servICe Jill Mack phone 218-844-8518 email: [email protected]
At eAse doCk & lIFt John Drewes phone: 218-849-5212 email: [email protected]
B & m eleCtrIC, InC. Mike Eidenschink phone: 218-847-1946 email: [email protected] web: www.bmelectricdl.com
Budget BlInds Melody Kruckenberg phone: 218-844-7052 email: [email protected] web: www.budgetblinds.com
ClAssIC ConCrete ContrACtors Dan Baker phone: 218-849-4744
CormorAnt reAlty Jim Kaiser phone: 218-530-0023 email: [email protected] web: CormorantRealty.com
CrAne JoHnson lumBer Greg Neisen phone: 218-346-5555 email: [email protected]
Cullens Home Center Dan Zierden phone: 218-998-5070
Custom WIndoWs Joe Honrud phone: 218-758-3888 email: [email protected]
dl overHeAd door servICes Tim Lamb phone: 218-847-2129 email: [email protected] web: detroitlakes
overheaddoor.com
elsner Well drIllIng Kelly Elsner phone: 218-844-8400 email: [email protected] web: elsnerwelldrilling.com
esser PlumBIng & Htg. - AIre serv Kelly Fingalson phone: 218-841-8849 email: [email protected] web: www.esserplumbingandheating.com
g-FoAm Michael Griffin phone: 218-841-3999 email: [email protected]
kInetICo- tHe WAter doCtors Local Contact - Scott Danielson phone: 218-844-7873 email: [email protected] web: kinetic.com
Foltz dryWAll, InC. Nate Foltz phone: 218-844-8837 email: [email protected]
gemstone mAsonry Todd Rodeman phone: 218-334-3274 email: [email protected] web: gemstonemasonryinc.com
geo dIreCt suPPly, InC Kevin Olson phone: 218-367-5196 email: [email protected] web: www.geodirectsupply.com
goodIn ComPAny Jonna Esser phone: 218-847-9211 Web: goodinco.com
greens PlumBIng & HeAtIng Mark Green/Nick Green phone: 218-847-7542 email: [email protected] web: greensplumbing andheating.com
HougH InC. Mike Hough phone: 218-847-7391 email: [email protected]
I’ll tIle & stone Troy Fingalson phone: 218-847-0335 email: [email protected] web: www.illtileandstone.com
Jutz exCAvAtIng Ed Jutz phone: 218-334-5692
kAHle PlumBIng & HeAtIng Dave Kahle phone: 218-847-1008
lAneys, InC. Chad Harstad phone: 218-847-1309
lAvelle ComPAny Tim Roble phone: 218-849-7876
mAlstrom eleCtrIC Brad Malstrom phone: 218-847-3132 email: info@malstrom electricinc.com web: malstromelectricinc.com
menArds Steve Novak phone: 218-846-9885
mIdWest BAnk Stephen Daggett & Denise Fredrickson phone: 218-847-4771 Email: denise.fredrickson @midwestbank.net web: midwestbank.net
mIdWest mInnesotA CommunIty develoPment John King phone: 218-847-3191 email: [email protected] web: mmcdc.com
modern HeAtIng & PlumBIng Rick Michaelson phone: 218-847-7459 email: [email protected] web: modernheating
andplumbing.com
nortH Country kItCHens Ed Lillis phone: 218-847-1022 email: [email protected] web: northcountrykitchens.net
olson Pool & sPAs Steve Olson phone: 218-483-3541 email: steve@olsonpools andspas.com web: olsonpoolsandspas.com
PAInters Plus oF dl Shane Heille phone: 218-847-5295 email: [email protected]
PellA WIndoWs & doors Wayne Reichling phone: 701-281-1390 email: [email protected] web: pella.com
Pro BuIld Curtis Thom phone: 218-847-2688 email: [email protected] web: probuild.com
Pro systems CorP Mike Brodsho phone: 218-847-9277 web: psys.com
sCHIller InsurAnCe Ross Gailfus phone: 218-847-5696 email: rgailfus@warner andcompany.com web: schillerins.com
stAte BAnk & trust Julia Okeson phone: 218-844-3000 email: jokeson@ statebanks.com web: statebanks.com
stenerson lumBer oF detroIt lAkes Joel Nelson phone: 218-847-2188
stenerson lumBer oF Fergus FAlls Mike Diekman phone: 218-739-4481 email: mdiekman@ stenersonlumber.com web: stenersonlumber.com
tWIn CIty gArAge door Jeff Swenson phone: 701-281-4759 email: [email protected] web: tcgdwf.com
tWeeton reFrIgerAtIon & HeAtIng Dan Tweeton/Scott McKenzie phone 218-847-7537 email: [email protected]
Western ProduCts, InC. Katy Krehlik/Designer phone: 701-280-5994 email: katyk@ westernproducts.com web: westernproducts.com
WAter FurnACe InternAtIonAl Jeff Petersen phone: 877-533-0026 email: jeff.petersen@
waterfurnace.comweb: www.waterfurnace.com
zAyIC ConCrete John Brehm phone: 218-844-2200 email: [email protected] web: zayicconcrete.com
MEMBERSHIp DIRECTORY
getting involveD
is key!!
you will get out of your Membership what you put in!
* Join An event Committee* Attend Monthly Meetings* Attend All of our events
“spIFF FoR BucKs” is our new member campaign for 2012. The NAHB will be giving the association back 50% or $75.00 for each new member we have over the number we had on December 31st, 2011. This runs through December 31st, 2012. Because of this the LRBA board with the recommendation of Tim Roble, chair of the membership committee, decided to do our own member-ship campaign. We are going to give $25.00 to the member that brings in a new member. We need to get our subs and others to join our association. We can do this by promoting what you as a member get out of being a member, by having NAHB and BAM working on trying to make sure the laws and regulations make for good practices for the builder and consumers. In monetary benefits, by having Verizon for themselves and their employees, will usually cover the cost of your membership plus more. Lets get people to know the advantages of being a member and shoot for 30 new members for this year. As of the end of September we are only ahead one new member, with members falling off.
spIKes are also eligible to get in on the action. Any Spike who recruits a new member during the drive will receive double Spike Credits. When a Spike brings in 11 or more new members, he or she receives quadruple Spike Credits for each member they recruit above 10.For example, if a Spike recruits 15 new members, he or she receives 40 Spike Credits: Recruits 1-10 will count double (10x2 = 20 credits) and recruits 11-15 will count quadruple (5x4 = 20 credits). Top Spikes will also have the opportunity to win additional tick-ets to the Spike Party at the 2013 International Builders Show in Las Vegas!
Jeff Petersen – Water Furnace International re-ceiving his new member packet from his sponsor Rick Michaelson of Modern Heating & Plumbing.
Jeff is also a new board member.
The only way we will grow is if you ask some-one to be a part of our association. Tell them about our meetings, the networking, monetary
benefits and why you are a member.
page 5page 4
PROMPT PROFESSIONAL SERVICEFOR ALL yOuR PLuMbINg NEEdS
Locally Owned & OperatedLicense #002739PM 1 Mile North on Hwy 59
GREEN’S
218-847-7542
PLUMBING & HEATING, INC.18550 US Hwy 59 NDetroit Lakes, MN
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
at a glance
oFCAlenDAR
eventsDeCeMbeR 13th
i’ll tile AnD stone sponsoRing
JAnuARy 18th eleCtRiCAl eXpo
JAnuARy 10th AnnuAl Meeting - ChRistMAs pARty
FebRuARy 14th sAM RuFeR - peMbeRton lAw FiRM
FebRuARy 15th builDeRs eXpo
MARCh 14th Meeting At Dl newspApeR oFFiCe
MARCh 23RD & 24th hoMe, gARDen & spoRt show
ApRil 18th Mn Dept. oF heAlth-
toM stAnDke speAking on RADon
MAy piCniC with tRAp shoot - DAte tbD
— JACKPOT DRAWING SPONSORS —
ARe you doInG BusIness wItH memBeRs?In the tough economy that we are in, it is more important than ever, to use the services of our members. Our associates
help keep the association going, with their membership, their volunteering on our projects, the Home Show and other events. Likewise for the associates, if they need the use of a contractor or can recommend a contractor, it is important for them to use one of our fellow members. If you are using services from non-members, encourage them to become a member of our association. This benefits everyone!!!
Denise FredricksonVP/Mortgage Lending
Banking your way.www.midwestbank.net
Member
FDIC BUILT BY THE INDUSTRY FOR THE INDUSTRY
tbgmn.com
NAHB memBers
coNtiNue to receive A vAluABle
$500*
offer from Gm.
NAHB members can get a $500* private offer toward the purchase or lease of most new Gm vehicles. GM offers a wide selection of vehicles, including the 2011 Chevrolet Silverado 3500HD. This private offer is compatible with many GM consumer incentive programs. Visit gmfleet.com/nahb for more details.
redeeming this private offer is easy: 1) Obtain your NAHB proof of membership form at nahb.org/ma. 2) Visit your GM dealer and mention this private offer. 3) Choose an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership form to your dealer.
Through the GM Business Choice Program,† business owners receive even more when purchasing or leasing an eligible Chevrolet or GMC van, truck or SUV for business use. For program details, visit gmbusinesschoice.com.
* Offer valid toward the purchase or lease of new 2009, 2010 and 2011 model year GM passenger cars and light duty trucks, excluding Chevrolet Camaro and Corvette ZR1, Cadillac, HUMMER, Pontiac, Saab, Saturn vehicles and medium duty trucks. Not available with some other offers. Not valid on prior purchases. Program subject to change without notice. See dealer for details. Take delivery by 1/3/11. † To qualify, vehicles must be used in day-to-day operations of your business and not solely for transportation purposes. Must provide proof of business. Visit gmbusinesschoice.com or your Chevrolet or GMC dealer for details. Take delivery between 10/1/10 and 1/3/11. ©2010 General Motors
| 2011 CHEVyROlET SilVERADO 3500HD
* Offer valid toward the purchase or lease of new 2010, 2011 and 2012 Buick, Chevrolet and GMC models excluding Chevrolet Volt. Not available with some other offers. Not valid on prior purchases. Program subject ot change without notice. See dealer for details. Take delivery by 1/3/12. ©2011 General Motors
NAHB members receive a valuable
$500* offer from GM.NAHB members can get a $500* private offer toward the purchase or lease of most
new GM vehicles. Learn more at: gmfleet.com/nahb.
HOw iT wOrkS: 1) Get your NAHB proof of membership form at nahb.org/ma. 2) Bring form to your GM dealer and mention this private offer. 3) At time of purchase or lease, present your NAHB Proof of membership.
JACKPOT DRAWING WINNERS WILL BE HELD
MONTHLYWILL YOU BE A WINNER???
JACKPOT DRAWING WINNERS WILL BE HELD AGAIN EACH MONTH. WILL YOU BE A WIN-NER??? SPONSORS FOR THE DRAWING ARE MONTH WILL BE GIVEN OUT IF YOUR NAME IS CALLED AND YOU ARE THERE. If the prize is not won, they money rolls over to the next month.
Our winner for November was not at the meeting.
December drawing will be $80.00
NEW MEMBER JOE HONRuD – CuSTOM WINDOWS
JOE WAS SPONSORED By MIKE EIDENSCHINK – B & M ELECTRIC
FRANCIS GENEREux – FRANCIS GENEREux
CONSTRuCTION FRANCIS IS ALSO A NEW
BOARD MEMBER
hoMe, gARDen AnD spoRt show is sCheDuleD FoR MARCh 23RD AnD 24th: Get your booth booked as spots are going fast. Don’t miss out - put your name in front of thousands of consumers by being a sponsor of the show. Contact Sharon or Brenda at 847-0699 to find out about levels of sponsorship.
builDeR DAy on the hill is sCheDuleD FoR JAnuARy 30th, 2013. Be a part of this important day to visit with our State legislators and let them know about our issues. So far Rick Michaelson and Bryan Schoenberger have committed to going with two other maybes. Our association is slated to have a minimum of 5 people. BAM and the task force is working out the details for the day. This is your industry so let’s represent it.
builDeRs peRFoRMAnCe guiDelines ARe ReQuiReD in MinnesotA. Minnesota builders must by law include a set of performance guidelines with their current contract for customers. Guidelines are available to LRBA members through the Builders Association of Minnesota. BAM members spent many hours to creating and refining this documentto provide the best possible product for builders. To see the statute mandating the inclusion of Building Performance Guidelines, visit www.revisor.mn.gov.
lAke Region builDeRs oFFeRs Continuing eDuCAtion CouRses AgAin in 2013. An Electrical EXPO will be held on January 18th at the Holiday Inn and the Builders EXPO will be held on February 15th at the Detroit Lakes Community College.
page 5page 4
PROMPT PROFESSIONAL SERVICEFOR ALL yOuR PLuMbINg NEEdS
Locally Owned & OperatedLicense #002739PM 1 Mile North on Hwy 59
GREEN’S
218-847-7542
PLUMBING & HEATING, INC.18550 US Hwy 59 NDetroit Lakes, MN
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
at a glance
oFCAlenDAR
eventsDeCeMbeR 13th
i’ll tile AnD stone sponsoRing
JAnuARy 18th eleCtRiCAl eXpo
JAnuARy 10th AnnuAl Meeting - ChRistMAs pARty
FebRuARy 14th sAM RuFeR - peMbeRton lAw FiRM
FebRuARy 15th builDeRs eXpo
MARCh 14th Meeting At Dl newspApeR oFFiCe
MARCh 23RD & 24th hoMe, gARDen & spoRt show
ApRil 18th Mn Dept. oF heAlth-
toM stAnDke speAking on RADon
MAy piCniC with tRAp shoot - DAte tbD
— JACKPOT DRAWING SPONSORS —
ARe you doInG BusIness wItH memBeRs?In the tough economy that we are in, it is more important than ever, to use the services of our members. Our associates
help keep the association going, with their membership, their volunteering on our projects, the Home Show and other events. Likewise for the associates, if they need the use of a contractor or can recommend a contractor, it is important for them to use one of our fellow members. If you are using services from non-members, encourage them to become a member of our association. This benefits everyone!!!
Denise FredricksonVP/Mortgage Lending
Banking your way.www.midwestbank.net
Member
FDIC BUILT BY THE INDUSTRY FOR THE INDUSTRY
tbgmn.com
NAHB memBers
coNtiNue to receive A vAluABle
$500*
offer from Gm.
NAHB members can get a $500* private offer toward the purchase or lease of most new Gm vehicles. GM offers a wide selection of vehicles, including the 2011 Chevrolet Silverado 3500HD. This private offer is compatible with many GM consumer incentive programs. Visit gmfleet.com/nahb for more details.
redeeming this private offer is easy: 1) Obtain your NAHB proof of membership form at nahb.org/ma. 2) Visit your GM dealer and mention this private offer. 3) Choose an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership form to your dealer.
Through the GM Business Choice Program,† business owners receive even more when purchasing or leasing an eligible Chevrolet or GMC van, truck or SUV for business use. For program details, visit gmbusinesschoice.com.
* Offer valid toward the purchase or lease of new 2009, 2010 and 2011 model year GM passenger cars and light duty trucks, excluding Chevrolet Camaro and Corvette ZR1, Cadillac, HUMMER, Pontiac, Saab, Saturn vehicles and medium duty trucks. Not available with some other offers. Not valid on prior purchases. Program subject to change without notice. See dealer for details. Take delivery by 1/3/11. † To qualify, vehicles must be used in day-to-day operations of your business and not solely for transportation purposes. Must provide proof of business. Visit gmbusinesschoice.com or your Chevrolet or GMC dealer for details. Take delivery between 10/1/10 and 1/3/11. ©2010 General Motors
| 2011 CHEVyROlET SilVERADO 3500HD
* Offer valid toward the purchase or lease of new 2010, 2011 and 2012 Buick, Chevrolet and GMC models excluding Chevrolet Volt. Not available with some other offers. Not valid on prior purchases. Program subject ot change without notice. See dealer for details. Take delivery by 1/3/12. ©2011 General Motors
NAHB members receive a valuable
$500* offer from GM.NAHB members can get a $500* private offer toward the purchase or lease of most
new GM vehicles. Learn more at: gmfleet.com/nahb.
HOw iT wOrkS: 1) Get your NAHB proof of membership form at nahb.org/ma. 2) Bring form to your GM dealer and mention this private offer. 3) At time of purchase or lease, present your NAHB Proof of membership.
JACKPOT DRAWING WINNERS WILL BE HELD
MONTHLYWILL YOU BE A WINNER???
JACKPOT DRAWING WINNERS WILL BE HELD AGAIN EACH MONTH. WILL YOU BE A WIN-NER??? SPONSORS FOR THE DRAWING ARE MONTH WILL BE GIVEN OUT IF YOUR NAME IS CALLED AND YOU ARE THERE. If the prize is not won, they money rolls over to the next month.
Our winner for November was not at the meeting.
December drawing will be $80.00
NEW MEMBER JOE HONRuD – CuSTOM WINDOWS
JOE WAS SPONSORED By MIKE EIDENSCHINK – B & M ELECTRIC
FRANCIS GENEREux – FRANCIS GENEREux
CONSTRuCTION FRANCIS IS ALSO A NEW
BOARD MEMBER
hoMe, gARDen AnD spoRt show is sCheDuleD FoR MARCh 23RD AnD 24th: Get your booth booked as spots are going fast. Don’t miss out - put your name in front of thousands of consumers by being a sponsor of the show. Contact Sharon or Brenda at 847-0699 to find out about levels of sponsorship.
builDeR DAy on the hill is sCheDuleD FoR JAnuARy 30th, 2013. Be a part of this important day to visit with our State legislators and let them know about our issues. So far Rick Michaelson and Bryan Schoenberger have committed to going with two other maybes. Our association is slated to have a minimum of 5 people. BAM and the task force is working out the details for the day. This is your industry so let’s represent it.
builDeRs peRFoRMAnCe guiDelines ARe ReQuiReD in MinnesotA. Minnesota builders must by law include a set of performance guidelines with their current contract for customers. Guidelines are available to LRBA members through the Builders Association of Minnesota. BAM members spent many hours to creating and refining this documentto provide the best possible product for builders. To see the statute mandating the inclusion of Building Performance Guidelines, visit www.revisor.mn.gov.
lAke Region builDeRs oFFeRs Continuing eDuCAtion CouRses AgAin in 2013. An Electrical EXPO will be held on January 18th at the Holiday Inn and the Builders EXPO will be held on February 15th at the Detroit Lakes Community College.
page 3page 6
Over 50 Years in the Lakes Area
New Construction
& Remodeling
NODSLE CONSTRUCTION
1473 Legion Road • Detroit LakesRes. 218-847-8347 • Lic. #1834
Perry Nodsle 847-7603
• Residential • Commercial• Cottages • Cabinets
EstabLishED 1955
Building a New Home?
Lock InTodays Low Rates onPermanent Home Financing12 Months from Application Date
Call Today!phone 218-844-3000920 Lake AvenueDetroit Lakes
MeMbeR CoRneRnew MeMbeRs – we welCoMe you
MeMbeRs ReneweD
up FoR RenewAl
MeMbeR news
Dream It/Paul Davis Rest. & Rem. – Jeff Boehm•Don Tietz Construction - Jason Coley •Do Right Construction – Jim Herman•Modern Living Concepts – Bryan Schoenberger•
Water Furnace International – Jeff Petersen sponsor Rick Michaelson
Custom Windows – Joe Honrud sponsor Mike Eidenschink
Is there something happening in your business? With your family? Let us know, we would like to acknowledge it.
Painters Plus - Shane Heille•Briard Construction – Hunter Briard •Esser Plumbing & Heating •– Kelly Fingalson
Crowell Construction – Tom Crowell•I’ll Tile and Stone – Troy Fingalson•Kinetico – Frank Bettin•Bell State Bank Julia Okeson•
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
BuIldeRs & RemodeleRsAHmAnn ConstruCtIon Wayne Ahmann phone: 218-935-2622
Al ClArk ConstruCtIon Al Clark phone: 218-849-4489 email: [email protected]
Anderson ConstruCtors David Anderson phone: 218-532-7429 email: [email protected]
BrIArd ConstruCtIon Hunter Briard phone: 218-439-6043 email: [email protected]
Cogger ConstruCtIon Rick Cogger phone: 218-849-7459 email: [email protected]
CroWell ConstruCtIon Tom Crowell phone: 218-847-1931 email: [email protected]
do- rIgHt ConstruCtIon oF tHe lAkes Jim Herman phone: 218-234-1095 email: [email protected]
don tIetz ConstruCtIon Don Tietz/J. Coley phone: 218-439-6271 email: [email protected]
dynAmIC Homes Arlen Johnson phone: 218-847-2611 web: dynamichomes.com
Foltz BuIlders David Foltz phone: 218-847-3281 email: [email protected] web: foltzbuildings.com
FrAnCIs ConstruCtIon oF detroIt lAkes David Francis phone: 218-847-4054 email: [email protected]
FrAnCIs genereux ConstruCtIon Francis Genereux 218-849-8808 email: [email protected]
g & r HIll ConstruCtIon Gene & Randy Hill phone: 218-847-5947 email: [email protected]
gAry HeItkAmP ConstruCtIon Gary Heitkamp phone: 218-847-8441 email: [email protected]
HerItAge Homes, llC Tyrone Leslie phone: 701-281-7184 email: [email protected]
HemmelgArn BuIlders, InC. James Hemmelgarn phone: 218-346-2377 fax 218-346-3242 email: [email protected]
JBs BuIlders, llC Jayson Storo phone: 218-232-0472 & 218-495-2005 email: [email protected] web: [email protected]
keItH FrAnCIs & son’s ConstruCtIon, llC phone: 218-556-9711 email: jfrancis@mahnomen.
k12.mn.us
klInton BArtHel ConstruCtIon, InC. phone: 218-841-2087 fax: 218-844-5461 email: [email protected]
nodsle ConstruCtIon Perry Nodsle phone: 218-847-7603 email: [email protected]
PAul dAvIs restorAtIon & remodelIng Jeff Boehm phone: 218-847-1800 email: [email protected] web: pdremodel.com
mArk stone ConstruCtIon Co. Mark Stone 414 Bryant Ave. SW Wadena, MN 56482 phone:218-639-5059 email: mark-camille
@mstoneconst.com
modern lIvIng ConCePts Bryan Schoenberger phone: 218-841-2006 email: [email protected] web: pikecreekbuilders.com
sCott BuCHHolz ConstruCtIon Scott Buchholz phone: 218-864-9947 fax: 218-864-5046 email: scottbuchholzconst
@arvig.netweb: www.scottbuchholz
construction.com
WoytAssek Custom Homes Warren Woytassek phone: 218-844-4661 AssocIAte memBeRs AmerIgAs ProPAne Tom Kirby phone: 218-847-1133 email: [email protected] web: amerigas.com
Andy FrAnCIs lAndsCAPIng ConstruCtIon Andy Francis 12352 Shorewood Beach Rd phone : 218-439-3320 email: [email protected]
APex eleCtrIC & lIgHtIng Marty Ekren phone: 218-847-5244 email: [email protected]
ArvIg seCurIty servICe Jill Mack phone 218-844-8518 email: [email protected]
At eAse doCk & lIFt John Drewes phone: 218-849-5212 email: [email protected]
B & m eleCtrIC, InC. Mike Eidenschink phone: 218-847-1946 email: [email protected] web: www.bmelectricdl.com
Budget BlInds Melody Kruckenberg phone: 218-844-7052 email: [email protected] web: www.budgetblinds.com
ClAssIC ConCrete ContrACtors Dan Baker phone: 218-849-4744
CormorAnt reAlty Jim Kaiser phone: 218-530-0023 email: [email protected] web: CormorantRealty.com
CrAne JoHnson lumBer Greg Neisen phone: 218-346-5555 email: [email protected]
Cullens Home Center Dan Zierden phone: 218-998-5070
Custom WIndoWs Joe Honrud phone: 218-758-3888 email: [email protected]
dl overHeAd door servICes Tim Lamb phone: 218-847-2129 email: [email protected] web: detroitlakes
overheaddoor.com
elsner Well drIllIng Kelly Elsner phone: 218-844-8400 email: [email protected] web: elsnerwelldrilling.com
esser PlumBIng & Htg. - AIre serv Kelly Fingalson phone: 218-841-8849 email: [email protected] web: www.esserplumbingandheating.com
g-FoAm Michael Griffin phone: 218-841-3999 email: [email protected]
kInetICo- tHe WAter doCtors Local Contact - Scott Danielson phone: 218-844-7873 email: [email protected] web: kinetic.com
Foltz dryWAll, InC. Nate Foltz phone: 218-844-8837 email: [email protected]
gemstone mAsonry Todd Rodeman phone: 218-334-3274 email: [email protected] web: gemstonemasonryinc.com
geo dIreCt suPPly, InC Kevin Olson phone: 218-367-5196 email: [email protected] web: www.geodirectsupply.com
goodIn ComPAny Jonna Esser phone: 218-847-9211 Web: goodinco.com
greens PlumBIng & HeAtIng Mark Green/Nick Green phone: 218-847-7542 email: [email protected] web: greensplumbing andheating.com
HougH InC. Mike Hough phone: 218-847-7391 email: [email protected]
I’ll tIle & stone Troy Fingalson phone: 218-847-0335 email: [email protected] web: www.illtileandstone.com
Jutz exCAvAtIng Ed Jutz phone: 218-334-5692
kAHle PlumBIng & HeAtIng Dave Kahle phone: 218-847-1008
lAneys, InC. Chad Harstad phone: 218-847-1309
lAvelle ComPAny Tim Roble phone: 218-849-7876
mAlstrom eleCtrIC Brad Malstrom phone: 218-847-3132 email: info@malstrom electricinc.com web: malstromelectricinc.com
menArds Steve Novak phone: 218-846-9885
mIdWest BAnk Stephen Daggett & Denise Fredrickson phone: 218-847-4771 Email: denise.fredrickson @midwestbank.net web: midwestbank.net
mIdWest mInnesotA CommunIty develoPment John King phone: 218-847-3191 email: [email protected] web: mmcdc.com
modern HeAtIng & PlumBIng Rick Michaelson phone: 218-847-7459 email: [email protected] web: modernheating
andplumbing.com
nortH Country kItCHens Ed Lillis phone: 218-847-1022 email: [email protected] web: northcountrykitchens.net
olson Pool & sPAs Steve Olson phone: 218-483-3541 email: steve@olsonpools andspas.com web: olsonpoolsandspas.com
PAInters Plus oF dl Shane Heille phone: 218-847-5295 email: [email protected]
PellA WIndoWs & doors Wayne Reichling phone: 701-281-1390 email: [email protected] web: pella.com
Pro BuIld Curtis Thom phone: 218-847-2688 email: [email protected] web: probuild.com
Pro systems CorP Mike Brodsho phone: 218-847-9277 web: psys.com
sCHIller InsurAnCe Ross Gailfus phone: 218-847-5696 email: rgailfus@warner andcompany.com web: schillerins.com
stAte BAnk & trust Julia Okeson phone: 218-844-3000 email: jokeson@ statebanks.com web: statebanks.com
stenerson lumBer oF detroIt lAkes Joel Nelson phone: 218-847-2188
stenerson lumBer oF Fergus FAlls Mike Diekman phone: 218-739-4481 email: mdiekman@ stenersonlumber.com web: stenersonlumber.com
tWIn CIty gArAge door Jeff Swenson phone: 701-281-4759 email: [email protected] web: tcgdwf.com
tWeeton reFrIgerAtIon & HeAtIng Dan Tweeton/Scott McKenzie phone 218-847-7537 email: [email protected]
Western ProduCts, InC. Katy Krehlik/Designer phone: 701-280-5994 email: katyk@ westernproducts.com web: westernproducts.com
WAter FurnACe InternAtIonAl Jeff Petersen phone: 877-533-0026 email: jeff.petersen@
waterfurnace.comweb: www.waterfurnace.com
zAyIC ConCrete John Brehm phone: 218-844-2200 email: [email protected] web: zayicconcrete.com
MEMBERSHIp DIRECTORY
getting involveD
is key!!
you will get out of your Membership what you put in!
* Join An event Committee* Attend Monthly Meetings* Attend All of our events
“spIFF FoR BucKs” is our new member campaign for 2012. The NAHB will be giving the association back 50% or $75.00 for each new member we have over the number we had on December 31st, 2011. This runs through December 31st, 2012. Because of this the LRBA board with the recommendation of Tim Roble, chair of the membership committee, decided to do our own member-ship campaign. We are going to give $25.00 to the member that brings in a new member. We need to get our subs and others to join our association. We can do this by promoting what you as a member get out of being a member, by having NAHB and BAM working on trying to make sure the laws and regulations make for good practices for the builder and consumers. In monetary benefits, by having Verizon for themselves and their employees, will usually cover the cost of your membership plus more. Lets get people to know the advantages of being a member and shoot for 30 new members for this year. As of the end of September we are only ahead one new member, with members falling off.
spIKes are also eligible to get in on the action. Any Spike who recruits a new member during the drive will receive double Spike Credits. When a Spike brings in 11 or more new members, he or she receives quadruple Spike Credits for each member they recruit above 10.For example, if a Spike recruits 15 new members, he or she receives 40 Spike Credits: Recruits 1-10 will count double (10x2 = 20 credits) and recruits 11-15 will count quadruple (5x4 = 20 credits). Top Spikes will also have the opportunity to win additional tick-ets to the Spike Party at the 2013 International Builders Show in Las Vegas!
Jeff Petersen – Water Furnace International re-ceiving his new member packet from his sponsor Rick Michaelson of Modern Heating & Plumbing.
Jeff is also a new board member.
The only way we will grow is if you ask some-one to be a part of our association. Tell them about our meetings, the networking, monetary
benefits and why you are a member.
CoDe oF ethiCsMembers of the Home Builders association subscribe to the following Code of ethics
n Members shall constantly seek to provide better val-ues for the customers they serve.
n Members shall at times share their knowledge with fellow members in the public in the best interest of those they serve.
n Members shall not obtain any business by means of fraudulet statements or by use of implications unwar-ranted by fact or reason-able probability.
n Members shall comply, both in spirit and letter, with rules and regulations prescribed by law and government agencies for health, safety and progress of the community.
n Members shall not perform a cause to be performed at any act which would tend to reflect on or bring into disrepute any party of the industry served by this as-sociation.
“to promote professionalism and to educate members and
consumers on legislative issues, while fostering
cooperative relationships for all stakeholders”
page 7page 2
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!HUNTER BRIARD
218-439-6043 • Cell: 218-841-3238Email: [email protected]
12568 E. Pearl Lake Road • Detroit Lakes, MN 56501
BRIARD CONSTRUCTIONNEW CONSTRUCTION • REMODELING • SHINGLING
SIDING • DECKS • ADDITIONS • GARAGES • DOORS • WINDOWS
my ViewSharon Westerholm, EOHere we are coming up
on the Christmas season again. I am not sure where the year went. I love this time of year and would love it more if it was warmer. There has been much going on, as usual, with working on the two
EXPO’s, the Annual Meeting and Christmas Party and the Home, Garden and Sport Show. If you haven’t booked your booth, I would suggest you do so as soon as possible as we are about ¾ booked up. Watch your mail for information on the Annual Meeting. It is scheduled for January 10th, with dinner at the Legion, then we will go to the Detroit Lakes Community Center to see “Deuces Wild Dueling Pianos”. I guess Dave and Ted put on a fantastic performance. The Annual Meeting will be held during dinner, with the new board of directors being sworn in, recognition of the outgoing and new President and outgoing board members. We will also be giving out awards for Builder/Remodeler of the Year, Associate of the Year, Citizenship, and BEAM (Builders Employing Associate Members). If you have not voted yet, please call for a nomination form. It will be a jam packed evening, so don’t miss it.
INTERNATIONAL BUILDERS SHOW – there is still time to register to receive discounts. It is being held January 20th – 24th, 2013 in Las Vegas, Nevada. First time attendees registration is $125.00, Early Bird by Dec. 3rd is $325.00 and On Site registration is $450.00. Go on line to www.nahb.org to register.
We have a few ad spots, in the newsletter, open. Cost for a small ad is $160.00 per year and $300.00 for a double. Please call if you are interested.
I want to wish everyone a very Merry Christmas and a Happy New Year.
God’s Blessings to you all!
Fill in the blank…The most frequent questions I get, as a manage-
ment consultant and former CFO for a top 100 builder, are inquiries such as these…
• When do I need another construction manager? • Can I afford a model home? • How many people do I need if I double my
revenue?Financial benchmarks can answer all these ques-
tions and become a foundation for your operational business model for years to come. In this message, you will find ways to not only answer these types of questions but also a means of making budgeting much easier.
Benchmarks and the Financial Business ModelOne of my primary goals when working with a
client is to help them establish their own financial business model. The business model includes the con-cepts and operational goals needed for the most direct path to long term success of any organization. The financial business model represents the “numbers” side of the model.
A business model, to be valid, must be three things: sustainable, scalable and replicatable. This means that you can…
• Meet the results year after year (it is sustainable), • Scalable means you can apply the same model as
you grow or contract the business (raise or lower your revenue) and
• The model can be replicated geographically if desired (think McDonalds or any other success franchise).
The financial business model is the set of bench-marks that when met and maintained produce the best results in profitability and operational efficiency. They produce that “sweet spot” of results which are sustainable, scalable and replicatable.
Operational Benchmark ExamplesThere are some basic benchmarks that are fairly
consistent with all successful homebuilders. Others are specific to the company and their way of doing business. With time and experience, you will be able to firm up your company specific business model benchmarks. Some of the benchmarks that are consistent between builders are the ones that can address the questions at the start of this management message.
As an example, a construction manager’s salary (bonus included) and salary related burden (payroll taxes, etc.) should cost you 1.5% of the revenue he produces (houses he constructs). This means an employee with a $60K annual cost in this position should produce $4 Million in homes. Now in your business model this may be 10 - $400K homes or 20 - $200K homes or even 4 $1 Million homes, but the benchmark is pretty consistent as an average.
So if the company was going to do $12 Million in revenue and their average cost per construction manager was this $60K number, then your company would need and be able to afford three construction managers (sometimes referred to as Superintendents). This is then one component of your business model.
Can you see how this would make decisions (especially correct and valid business decisions) easier
for the business owner or manager? You have a time tested business model principle to fall back on.
Another example benchmark helps answer the question of “when can I afford a model or a second model in a single location?” This benchmark has a little more range of correct answers, but depending upon your volume, model home expense should be .5% to 1.0% of the sales revenue generated by the model homes. The smaller the volume of the builder the closer the correct benchmark is to 1.0%. The national builders typically use a benchmark of .5% or sometimes even a wee bit less.
The model home expenses to be considered within this benchmark are…
• The interest on the model construction loan (or lease amount if sold and leased back)
• The utilities of the model home• The cleaning, landscape maintenance and pos-
sible snow removal contracts for the model home and parking lot.
• The expenses of maintaining the sales office within the model home (not the salary of a salaries salesperson). Copier, phone line, paper and office sup-plies are included here.
So a company with a single model home with $35,000 per year in overhead expenses related to that model home should be producing $3.5 Million (thus the expenses would be 1% of the revenue) or more (less that 1%) of revenue through that model home.
How Benchmarks and the Business Model can Benefit Your Company
Once you have a reasonable set of benchmarks es-tablished for all areas of your business and have a staff that is trained to understand the benchmarks and the resultant business model, you will be surprised at how the decisions become easier. You will also find that it is easier to push management decisions down to lower levels within your company and thus save yourself time and frustration.
A great example of this is in budgeting. The budget, in many areas, becomes a by-product of the established benchmarks.
During my days as a builder, my most consistent benchmarks helped the company build 500+ homes per year much more easily than what we experienced building 50 homes per year. I knew how many em-ployees it took to maximize volume and profitability and keep the turnover (from employee burnout) low. I knew that it took 7000 annual model home visitors to make 700 gross sales and 590 net sales. How many new customer registration cards would you have professionally printed each year if you knew these numbers? When would you reduce/increase advertis-ing? What would be your monthly traffic registration goal on average?
All these operational questions were addressed by the numbers or benchmarks that comprised our business model. Do you see how they helped us make better (and quicker) management decisions?
Hope you enjoyed this article courtesy of your local HBA.
Thanks, Bob Whitten, SMA [email protected]
“How mucH sHould I spend on…?”
Crane JohnsonLumber Co.
established 1883
620 East Main • Perham, MN 56573phone 218.346.5555 • fax 218.346.9200
GreG NeiseNsalEs MaNagEr
2012 Election ResultsThis year’s election saw change here in Minnesota, but
nationally the balance of power stayed the same. Nation-ally, most swing states went blue, and the coalition put together by democrats in 2008 including minority voters, young adults, education professionals, and women held, for the most part, assisting President Obama in winning reelection. In Minnesota, Obama won by nine points.
On a state election level, the Minnesota senate DFL had a net gain of 8 seats of which they needed 4 to take the majority. The senate balance went from 37 republicans and 30 democrats to 28 republicans and 39 democrats. In the House, democrats had a net gain of 11. They needed six to regain the majority. The makeup of the House went from 72 republicans and 61 democrats to 61 republicans and 73 democrats. The two bodies have chosen their leadership. Senator Tom Bakk is the Senate Majority Leader and Representative Paul Thissen is the new Speaker of the House.
See a full run down of the election results nationally and in Minnesota at:
Star Tribune http://elections.startribune.com/re-turns/index.html
CBS http://www.cbsnews.com/election-results-2012/
BAM put together a list of housing friendly candidates on both sides of the aisle and targeted those individuals for BAM-PAC donations. We are happy to report that 31 of our 37 candidates were elected putting us at an 84% success rate.
What This Means For BAMOver the last couple of years we’ve expanded and
intensified our relationship with democrats and repub-licans, rural and metro legislators, across the state. We have strong relationships with legislators that understand our priorities, and that is going to be especially important now that we have a DFL majority in both the house and senate.
In the coming months and during session we will need to keep our message clear – a healthy housing industry means a healthy economy and jobs. In the time leading up to session, please be sure to introduce yourself to your legislators. With several new legislators at the Capitol it’s especially important that we educate them about our issues. It will also be important to have a big showing at Builder Day at the Capitol January 30th. Please mark your calendars and plan to attend.
The BAM Awards Dinner and Pam’s Goodbye Party is December 5, 2012 at the Crowne Plaza Minneapo-lis North. All are invited to attend as we celebrate Pam Perri’s time with the Builders Association of Minneso-ta. Pam will be present as we give her a formal send off and thank you for her service as BAM’s Executive Vice President these past 11 years. Come
celebrate the last decade at BAM and this year’s award winners. You won’t want to miss this event!
Cocktail reception begins at 5:00pm. Dinner and program start at 6:00.
RSVPRegistration is required for this
event and is done online. Cost is $25. Sponsorships Available
Find out how your company can reach a statewide audience through sponsorship - visit bamn.org/spon-sorship-opps for more information and contact Jenae Palewicz with any questions at [email protected].
We’re excited to celebrate with you! Register today and we’ll see you December 5th!
www.HBArebates.com What would you think if you
could get a rebate for your loyalty to many of the nation’s leading housing industry Manufacturers? Well, now you can regardless of your volume!
We’re happy to introduce the BAM Member Rebate Program,
a free member benefit, aimed at increasing your bottom line. For the minimal effort of informing us about the products you use, and telling us when you close on a home or project, you’ll be putting money back in your pocket. When you participate in the BAM Member Rebate Program, every home you
build can earn you rebate checks! Remember, both Builders AND Remodelers qualify for the BAM Member Rebate Program. Over 70% of the Builders & Remodelers who participated last year received back in rebates more than they paid in annual dues to the Association!
BAm montHly column
a style for every point of view
Melody Kruckenberg, Owner218-844-7052
1326 Loring Ave • Detroit [email protected]
budgetblinds.com
November 2012
This week at BAM...
BAM Member Rebate program
page 1page 8
A Cut AboveLake Region Builders AssociationDeCeMbeR 2012
A Monthly newsletteR seRving beCkeR, otteRtAil, noRMAn, wilkin AnD MAhnoMen Counties
eMAil: [email protected]: 218.847.0699visit ouR websitewww.lakeregionbuilders.com
lake RegionbuildersAssociation
pResiDent bryan schoenberger, Pike Creek Builders/Modern Living Concepts
seCRetARy/tReAsuReR Jason Coley, Don Tietz Construction
pAst pResiDent tim Roble
viCe pResiDent nick green, Green's Plumbing and Heating
eXeCutive oFFiCeR sharon westerholm
tim Roble, Lavelle Company
Mike hough, Hough, Inc.
greg neisen, Crane Johnson Lumber, Perham
nick green, Green's Plumbing and Heating
Marty ekern, Apex Electric
shaun engelsrud, Kinetico
scott buchholz, Scott Buchholz Construction
boARD oF DiReCtoRs
— visit bam.org each week for updates —
525 Park Street, Suite 150 • St. Paul, MN 55103p. 1.800.654.7783 or 651.646.7959f. 651.646.2860 www.bamn.org
1201 15th Street, NW • Washington, DC 20005p. 800.368.5242 or 202.266.8200x0f. 202.266.8400 www.nahb.org
lRbA leADeRship
Homes of DistinctionGeneral ContraCtor
new Homes
remodelinG
residential
CommerCial
Call us today to start planning your perfect home.
DON TIETZ CONSTRUCTION, INC.
“The name built on quality” 439-6271
Thirty years of excellence
1040 Randolph Road • Detroit Lakes
218-847-7459www.ModernHeatingAndPlumbing.com
For Your Familys Comfort
30614 SunSet Road • detRoit LakeS
218-847-1946
Residential • new Homes & Remodelinglicensed & Bonded • electRical contRacting
mn lic# Bc-20460621nd lic# 32002
Detroit Lakes, MNHome (218) 846-0079
Cell (218) 849-4489
“Committed to Quality & Service”• Post Frame Buildings• Residential• New Construction• Remodeling• Garages
• Doors & Windows• Decks• Siding• Light
Commercial
FRANCIS CONSTRUCTION
— Dave Francis — 218-847-4054
— Scott Francis — 218-847-3556
Specializing In...
Offering...
• State of the art construction materials & techniques • High quality workmanship • Complete satisfaction guaranteed
• New Homes • Steel Siding • Remodeling • Garages • Additions • Replacement Windows • Decks • Sunrooms
“Your Hometown Quality Builder & Remodelers”O
Specializing In...
Of
StamaHig
• Cog
S i li i I
O
• S m• H• C
18872 Co Hwy 21 • Detroit LakesTom Kirby, manager
218-847-1133 or 1-888-757-1133
Safety is a Way of Life
OUR NEXT MEETING IS SCHEDULED FOR DECEMBER 13TH AT I’LL TILE & STONE
They are located at 1673 Dan St., Detroit Lakes. (North on Richwood Road, left at Tower Road/Fer-rell Gas corner. Take the first left for about 1/4th block). They will provide food and beverages and a very informational meeting. Check out their new website at www.illtileandstone.com.
ouR noveMbeR 15th Meeting wAs helD At the speAk eAsy RestAuRAnt with JeFF peteRsen from the Water Furnace International being our speaker for the meeting. Jeff gave us some very good information on geo-thermal heating and what the savings could be for if you install this in new homes, as well as, existing homes. Jeff has joined our Association, so if you have questions, please contact him at 1-877-533-0026.
THIS SpACE AvAILABLE!Contact Sharon at 847-0699 for
details!
Heat Pumps • Earthloop Materials Radiant Floor Heat Materials • Electric Boilers
Heat Recovery Ventilators • Fan Coils
Kevin OlsOn 218-367-5196
[email protected] • www.geodirectsupply.comOver 20 years of Geo-Thermal Experience
GeoSupply, inc.DIRECT
Greetings,The holiday season is here along
with the music, shopping and cheers! Hopefully everyone has their outdoor projects wrapped up and is moving inside. The Builder’s Day, at the capital, is coming January 30th. If you haven't signed up, talk with Sharon. It is important that the building industry has a strong showing. I recently sat in on the unlicensed task force for BAM. We are working on strategies for improving the contractor’s recovery fund. There have been some issues with the funds over the years and we are working to keep them directed towards what they are intended. Merry Christmas and a Happy New Year to all! Be safe out there.
Bryan SchoenbergerLRBA President
builDeRs buZZ