GuildQuality Member Predictions & Strategies: Q3 2010

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Predictions & Strategies

This report contains a summary of the feedback received from our members in the Q3 2010 Market Predictions & Strategies Survey conducted during the week of September 13. This survey is a follow up to the survey we began in October 2008, and have continued on a quarterly basis since then. In this and prior surveys, GuildQuality requested feedback from the owners and operators among our more than 500 home builders, remodelers, contractors, and real estate developers that use our service. In each of the surveys, more than 100 people provided feedback.

Our members are representative of the best businesses in the building, remodel-ing, and real estate profession. And just as the strength of the building industry has historically forecasted the strength of our entire economy, I believe that our mem-ber sentiment is a leading indicator within the building industry.

About GuildQuality

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GuildQuality provides customer satisfaction surveying, web-based performance reporting, peer benchmarking, and performance marketing for construction and real estate companies that seek to deliver a consistently exceptional customer ex-perience.

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Thanks to all those who participated!

We greatly appreciate your participating in the survey and welcome any com-ments, suggestions, or requests you have about this and future reports.

To review prior reports, visit the search for “predictions” on the GuildQuality Blog.This image is the Wordle representation of every comment received in response to our strategy questions.

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Guildmember Confidence Index. A positive number indicates more people forecast improvement than decline. A negative number indi-cates more people forecast decline than improvement. 100% would indicate all respondents forecasted improvement; -100% would indi-cate all respondents forecasted decline.

Guildmember Confidence IndexThe Guildmember Confidence Index is a forward looking indi-cator that summarizes the predictions of the members who participated in our survey. A positive number suggests that more members predict improvement than decline.In Q3 2010, members continue to predict improvement in both their companyʼs performance and the market. Relative to Q2 2010, there was less confidence in the market in general, and greater confidence in peopleʼs own companies.




Confidence Level DistributionWhen asked what kind of change they expect in the market in general, 46% of members predicted conditions would stay about the same. This is fewer than last quarterʼs 53%. While more predict improvement (38% relative to last quarterʼs 36%), the percentage of members predicting decline or significant decline jumped from last quarterʼs 11% to 16% -- second only to the extreme pessimism we saw way back in Q4 2008ʼs.Conversely, when asked about their own companies, 61% pre-dict either improvement or significant improvement. That num-ber is up considerably from Q3ʼs 54%.


Confidence Level Distribution. Guildmembers were asked to predict whether the performance of their company and the market would sig-nificantly improve, improve, remain the same, decline, or significantly decline over the next six months.



Comments: Each quarter we alternate between asking a handful of open ended questions, and not asking any open ended questions. In Q2, we asked no open ended questions, though a handful of members provided us with additional feed-back. Their comments:

EMERGING TRENDS

“What trends do you see emerging among your customer preferences?”

1. Smaller, more energy efficient homes that provide more controlled energy bills and low maintenance.

2. Doing more maintenance type projects like windows and siding. Bath-rooms and kitchens are still a popular option.

3. More emphasis on cost, wanting to talk to multiple contractors before making a decision, remodeling areas like kitchens and bathrooms rather than adding rooms or whole house remodels.

4. Low cost options. Some energy saving options are gaining popularity.

5. Single room remodeling with value being demanded for a low price. Still looking for energy efficiency, and want high end finishes.

6. Remodels that provide more efficient use of space.

7. Wider use of energy efficient products & construction, smaller sized homes.

8. A lot of smaller scale jobs.

9. Lower on the frills in favor of a conservative budget. It is all about value these days.

10. Price is everything. Forget "green" features.

11. More practical.

12. Potential customers are hesitant to take action because of the policies of the potential actions of the federal government and the fact that so much is uncertain with the economy.

13. Smaller projects; quality over quantity.

14. Continued growth in the sustainable and green alternative products.

15. Using cash, not borrowing, no frills, just solid plain jobs that are a benefit to the entire family.

16. Value and durability over time. Smaller projects with good return and im-pact.

17. Still want footage but willing to delete all luxuries.

18. They are willing to sacrifice minor to major parts of their project to keep within budget. No longer do they just add on.

19. Energy efficient products, demanding higher customer service, demand-ing quicker turnaround.

20. Cost being really important.

21. Desire is still occasionally there for larger projects but they are thinking long & hard about their investment and also the loans are problems.

22. Staying in their homes longer and remodeling to accommodate aging needs.

23. We have experienced an increase in the use of resilient flooring and laminate countertops. I believe people are beginning to consider the cost vs. value of a remodeling project due to the fact that property values are not likely to increase significantly in the near future.

24. Value driven trends, with an eye on costs, and still saying wow.

25. Budget minded, sustainable materials.

26. Smaller remodel jobs with nice finishes, function with a less importance on style.

27. More about value and getting something that will last and provide them enjoyment.

28. Very cost conscience, review and then reviews cost again.

29. Hesitancy, long time period to complete a sale price is most important.

30. Smaller size projects.

31. Value, budget and some luxuries but very few and carefully thought about.

32. Smaller homes at affordable pricing.

33. Competitive balance. More 'retail' type comparisons.




34. We are seeing homeowners calling about additions, tear down and build new home, lots of kitchen remodels.

35. Low ball offers on current inventory. It is getting bad. Very low offers. people will walk away from a deal over $500.

36. Spending less and getting more.

37. More energy awareness.

38. They still want what they want at the higher-end. In the mid-range they are willing to settle for smaller but still want quality and features.

39. Smaller size, more quality.

40. Smaller projects, longer sales cycle, nervous about getting stung.

41. Cheaper, smaller, cheaper.

42. Smaller smarter design, strong cost conscious.

43. Families are making changes in living environments that are moderate in scope, perhaps asking for renovations which can be phased in instead of done in one phase.

44. Smaller projects, less "pizazz" and more comfort.

45. I see more customers holding off their project, but higher end products are selling.

46. Our customers are more concerned about value these days more than anything else.

47. It seems that the commercial world is up and coming. Many projects that have been shelved are coming to life in both commercial and residential. The only problem is that everyone is squeezing as much as they can and we hear more and more "If you can drop your price $5k, you can have the job." Really? We pride ourselves on pricing very fairly from the start and often can't afford to drop the price, but can't afford to lose the job.

48. More price sensitive.

49. Investing in home while attempting to sell in down market.

50. A greater focus on practicality and value as opposed to luxury and acces-sories.

51. Smaller projects.

52. Sightly smaller job sizes.

53. Smaller projects, but looking for design package as a turn key project.

54. Kitchens, baths and upgrading finishes value conscious improvements.

55. Slightly smaller plans and high quality.

56. Customers want to do work on much more of a scaled down budget.

57. We strictly do bathroom remodels and we feel like that market is only getting better.

58. All customers want more for less. We spend our time pricing and re-pricing trying to get more work.

59. Back to basics. Not as much emphasis on the "cadillac" type renovations and more on the practical.

60. Customers are looking for "Value" not grandeur. They are thinking more about long term needs and less about short term value of their improve-ments.

61. Higher quality of materials.

62. Whole house layout changes. More work on ranch homes and homes built between 1940-1960.

63. In the past 4 months we have seen clients returning to purchasing older homes that require additions and remodeling of significant scope. Our clients have become more concerned about the value that our design build work will add to their property relative to the cost. Our clients are looking for designs that have timeless attributes so they will retain value, and materials that will be durable and long lasting that again will retain value. There is more attention to the basics, they have cut out the extras.

64. Projects are smaller (an avg of 50%) and the clients are pickier

65. Fairly price sensitive. Some of the wants gets set aside to hold to a real budget.

66. Preference for master down/ranch plans. Granite, hardwoods, stainless steel appliances.

67. Smaller job scopes, lowest pricing.

68. Limiting amount of renovations, cutting back on wants and focusing more on needs.

69. Increased interest in lowering energy costs.

70. Green for energy savings more so than sustainability.




71. Most clients are trying to do the work out of pocket. Very seldom do we talk with anybody who is doing financing.

72. Customers purchasing homes using 203K loans...we are being paid by the lender. continue to remodel Master Bath and Kitchen. Job sizes con-tinue to be small because over 50% of homeowners are underwater with their mortgages - can't sell so they are remodeling.

73. Customers who want something for little or no profit.

74. Homeowners know they have the upper hand when it comes to pricing.

75. Remodeling over building new.

76. Price, Price, Price getting as much as they can for dollar spent / Value / likes extras but does not want to pay for them.

77. A desire to have smaller, lower priced home but still high end amenities.

78. The are choosing to spend less and down size in design...concerned about budgets.

79. They are all worried about the next 24 months. The uncertain economy, the elimination of the tax breaks, the security of their jobs, etc. Very wor-ried about the future environment.

80. Increased willingness to forego some upgrades and options.

81. Smaller jobs and tighter budgets.

82. Improving as opposed to moving.

83. Tight budget adherence.

84. People are more concerned about costs more than ever.

85. Downsizing, lower price points.

86. Lower price points, bonus room, 1 story family room.


This image is the Wordle representation of every comment received in response to our question about emerging trends.





WANING TRENDS

“What trends are becoming less and less important to your customers?”

1. Large square footage homes.

2. High-end materials.

3. High cost options.

4. Have not noticed any real items or choices not being important.

5. Remodels that provide comfort or luxury.

6. Larger homes.

7. Quality, they seem to be only concerned with price.

8. It is less about keeping up with the Jones and more about meeting very specific personal needs.

9. "Green" features.

10. Glitz.

11. Quality seems to be less important as price becomes the most important factor.

12. Adding lots of space.

13. High end products.

14. Leading edge design trends.

15. Fireplaces, soaker tubs, Upgraded Cabinets, Trim.

16. Products that aren't energy efficient, products that are outrageously ex-pensive, products that don't have a good repair history or that aren't backed by a good warranty.

17. It seems less are caring about the amount of Care that a company puts in until they need to be rescued.

18. A huge home loan.

19. Garden tubs, theatre rooms, game rooms.

20. Professional grade cooking appliances.

21. Structural changes.

22. Less fashion, more practical.

23. Remodeling with the idea of selling the home.

24. HIghest priced project.

25. Most space, remodeling existing spaces.

26. Luxury items are declining.

27. Quality.

28. Everything luxury - the biggest and best.

29. High-end products.

30. Timing. Less initiative to pursue building.

31. They are willing to accept less upgrades and they focus on the over all price.

32. The top of the line items such as plumbing fixtures and lighting.

33. Large homes.

34. Big is not always better.

35. Bigger.

36. Green construction.

37. Larger, additional cost for adding quality.

38. The finishes in kitchens and baths are not as important as the overall space. In addition, clients formerly put the scheduling of their project as a top priority but they are now willing to wait to get their project done.

39. McMansion type projects.

40. They are less concerned with cheap temporary solutions, and more con-cerned about performance of the products over the long haul.

41. Quality seems to be going by the wayside a bit. Everyone has waited so long to get their project moving that price seems to be the deciding factor, which I fear is going to cause problems for many structures over a long term....lowest price is not sustainable, but it has been the reason we've had to decline some projects.

42. Going green at their expense.

43. Higher end investments.

44. Extravagant designs with all the bells and whistles.




45. Luxury items such as large body spray showers, etc.

46. Luxury type remodels.

47. Full tear down and rebuild.

48. Large expansions, luxury anything.

49. Home Theaters. They prewire and install at later date, if at all.

50. Additions. We are doing much more remodeling.

51. Flash and fancy.

52. Whirlpool Tubs.

53. Big & flashy.

54. High performance design, but not "Green". That is our customers want a well designed house that is very energy efficient, but are not really inter-ested in all of the detailed aspects of "Green design and construction".

55. Size of home.

56. Second story additions have been cost prohibitive.

57. Our clients are less inclined to include items that could be considered conspicuous consumption.

58. People are less concerned about longevity in business, professional affiliations, certifications and more concerned about price. It is common for people to have 5 or 6 estimates today.

59. Fluff is gone. Good design is benefit. Less wasted space. Over the top design elements and amenities are gone.

60. Size. More interested in quality and functionality.

61. Additional space, high end appliances, custom finishes.

62. Sustainability, high end choices.

63. How huge the project can be.

64. Room additions and media rooms.

65. Quality businesses performing the work.

66. We see more meat and potatoes jobs as op-

posed to big-time design features.

67. Price is pushing track our record / systems / to the back burner.

68. Green products that do not relate financially to them. For example they want energy efficient windows because it saves them money but any product made from recycled product that is going to cost them but not save them in the future they aren't interested in.

69. Appearance. More customers today are considering vinyl windows be-cause of the cost vs. wood or wood clad.

70. Everything has to be top-of-the-line.

71. Keeping up with the neighbors.

72. Spending on frills.

73. There has been a slight decline in quality in favor of pricing.

74. Big square footage.

75. Some, not all, of our customers are prioritizing their wants and needs over time.

76. 2 story family room, interior trim detail.


A Wordle representation of every comment received in response to our question about waning trends.





NEAR-TERM STRATEGY

“What is your business doing to address your most pressing NEAR-TERM challenges?”

1. Estimating reduced profit margins in an attempt to get consistent work rather than max profit on each job.

2. Estimating reduced profit margins in an attempt to get consistent work rather than max profit on each job.

3. Modified the homepage to make it more Google friendly, direct mailing to neighborhoods we want to work in and following up with phone calls.

4. We have increased staffing with well-qualified employees so that when we get work, we can turn it out quickly with no slippage.

5. We are keeping costs as low as possible.

6. Continuing to lean out, overhead cuts and streamlining of systems for efficiency.

7. More networking, learning about social media, & trying to educate the consumers.

8. More aggressive purchasing.

9. Continued new training and upgrading our computer systems to increase efficiency.

10. Sales and Marketing continue to be our major focus.

11. We have increased our advertising budget. In the past few months a lot of companies have decreased their advertising budget. We want to stay in front of consumers.

12. Everything we can.

13. Praying.

14. Cost-cutting, not expanding, yet staying true to our vision and goals of a quality community.

15. More clearly defining our market niche, to be able to improve the signal-to-noise ratio.

16. Examining our process of getting and managing jobs for improvement in efficiency and accuracy.

17. Marketing.

18. Adjusting our marketing. Adding selective replacement products (siding and doors) to our offering.

19. Staying ahead of the market as far as pricing, keeping land position sta-ble and buying it at the correct future needs price.

20. Focusing on sales and face-to-face networking. We've never been a sales driven company, but we are now!

21. Hiring employees to help us achieve our goals, the appropriate people for our "bus". Seeking guidance/business coaching to guide us in our quest to achieve our goals.

22. We have recently began to retrain all staff to to meet my expectations ,and have it well documented. We are also making constant contact to customers, to insure our field promises are being up held.

23. Trying to be competitive in small-jobs ($5000 - $25,000) and doing some handyman work (less than $5000).

24. Local marketing.

25. We are beginning to develop lower priced remodeling alternatives. We always encourage the use of high quality materials and processes and remind our customers that for example, a laminate countertop will easily last 20 years if it is cared for.

26. We have settled in on maximizing our efficiencies, communications with our clients, and absolutely controlling overhead costs.

27. Minimizing expenses.

28. Trying to establish more on-line presence for marketing.

29. We have incorporated all sorts of overhead decreases. Looking to sell another truck and possible sell our building and relocate to a more cost effective office.

30. Pricing and selling model changes.

31. Marketing and internal training.

32. Hurry up and wait...helping clients in design move their projects to the build side of the house. We are always focused on marketing and sales.

33. Using non-traditional marketing, open houses, events and festivals.

34. We are looking to hire a new lead carpenter to take some of the addi-tional work off the existing employees in the field.




35. Build for less. less options, pay less for options.

36. Increasing our marketing and diversifying.

37. Cut overhead and increase web based marketing.

38. Remodeling and additions.

39. More remodeling.

40. Spending a lot of time.

41. Reduced overhead, no extra spending.

42. Prayer: we seem powerless to do much anything else.

43. We are increasing our production staff. In addition, we are doing more customer engagement activities to keep the relationship intact.

44. More emphasis on marketing and sales.

45. We are training our sales staff more and more. We closely monitor all marketing sources.

46. We are working on giving the customer the overall experience. Paying attention to detail.

47. We are revamping how we explain the value in quality and our offerings. We are more frequently reviewing the differences between our company and our competitors.

48. Looking at smaller jobs.

49. Training and becoming better at what we do.

50. Nurturing every qualified lead as a prized jewel.

51. Hiring outside sales training.

52. Give clients more options to chose from, start with a lower base price and then show upgrades.

53. Efficient project management focus.

54. Marketing for what we perceive to be the want's of our clients. Expanding our specialty offerings regarding painting and hard-scapes.

55. More marketing for remodeling projects.

56. We are trying a lot of hands on type marketing to meet people and get leads.

57. Questioning every expense.

58. We are designing a portfolio of more affordable homes. We are trying to bring a product to market for the first time home buyer at a COMPEL-LING price to the market.

59. Implementing an integrated soft-ware program so all areas of the busi-ness are covered under one program rather than numerous spreadsheets and programs.

60. We have been very proactive in reducing all overhead expenses. We have requested that all of our vendors do the same so that we provide the best value to our customers.

61. Morphing into everybody else.

62. Fighting to retain clients who want quality and craftsmanship. Making sure not to sign clients only interested in price.

63. Our most pressing near term challenge is sales volume. We are network-ing with previous clients and our business associates to increase referrals and repeat client sales. We are pursuing our qualified leads with more urgency and turning around proposals more quickly.

64. We are focusing on our marketing of our past clients whom are more discriminating.

65. Cautiously hiring people. Our last 10 months have been great.

66. Qualified customers is our biggest near term challenge.

67. Improving customer service. On time and on budget focused renovations. Summarizing customer feedback. Identifying areas that need improving. Larger web presence.

68. Seeking new avenues for obtaining business.

69. Reducing operating costs and launching new marketing projects to in-crease leads/appointments.

70. Building procedures manuals, improving employee benefits.

71. Working harder on sales activity. Diligence with customer service and guerilla marketing. Networking is working.

72. Near term challenge is getting more work. We are doing more face to face marketing. Touching past clients and getting in front of people where we can.




73. Continue marketing and networking; laid off all office staff; re-negotiated contracts with vendors to reduce overhead (IT support, business liability/workers comp insurance, etc).

74. More marketing and sales training.

75. We are trying to cut costs to raise our margins.

76. Hired a PR company to increase sales.

77. Reducing costs and pushing calendaring and specifications etc very early to push jobs ahead. Reduced cycle times saves money. 16 month jobs are now 12 months. This is also working since we have the Subs undi-vided attention as their entire company can focus on one or two jobs at a time.

78. We're turning most of our product before beginning new starts, getting more bids on product lines before beginning the building process, re-searching through our local realtors, prospective buyers etc to see what is most important to our buyers and cutting our the frills that are not im-portant.

79. Securing construction financing.

80. More direct mail. Radius mailers around job sites. Door knockers. Up-dated web site.

81. The near-term challenge is overcoming uncertainty among buyers, par-ticularly when they own a current home that isn't selling. The only way we can address that is to be willing to make reasonable concessions that entice them to act sooner rather than later.

82. Doing handyman jobs and learning how to manage smaller jobs with a faster turn around.

83. Keeping a close eye on spending.

84. Working smarter.

85. Capitalizing on our reputation which brings quite a few opportunities at projects.

86. Nurturing every lead, securing competitive pricing from trades and sup-pliers, modifying our specifications to deliver a better price.

87. Increasing sales and marketing efforts.

88. Redesigning product with less 2 story areas, more efficient floor plans to get lower price point.




LONG-TERM STRATEGY

“What is your business doing to increase your likelihood of success in the LONG-TERM?”

1. Establishing ourselves as leaders in the green, energy efficient home building industry.

2. Keeping overhead down, controlling costs, looking for new options that allow us to keep are prices competitive. Working the schedules with our customers, vendors and our internal people.

3. Making a better budget for next year, depositing a portion of all payments into a money market to be used for working capital, paying down debt, better marketing campaigns.

4. We are keeping costs as low as possible.

5. Rebuilding our website, and reaching out to more public venues.

6. Maintaining the leanest structure we have had for 10 years. We do not plan on adding people or costs until we are being pushed by backlog.

7. We have added a totally different product line that will help save energy costs. It has a much lower total dollar amount per contract but much higher profit. Smaller ticket items that can start returning dividends imme-diately will help the bottom line a lot.

8. Praying.

9. Maintaining the core concepts that we believed in when we started the development five years ago.

10. More clearly defining our market niche, to be able to improve the signal-to-noise ratio.

11. Improving our sales process to educate the consumer more as to why my company is a superior choice

12. Brand building.

13. Investing in the internet. More selectively targeting our clients.

14. Sticking close to our bankers, looking into subdivision that offer extended lots, huge amenity packages and are family centric.

15. Working with a sales trainer to increase the value of each lead we re-ceive.

16. Increasing marketing. Putting together a growth plan. Putting together a staffing plan. Putting together a wealth building plan.

17. Concentrating on having the proper infrastructure to make sure the field staff has the needed support to exceed the customers expectations.

18. Fine-tuning our processes & estimating.

19. Consistency.

20. We are doing our best to sense and serve local needs. Advise and con-sult with honesty. There are times when our company is not a good fit for a project. I believe that openly discussing this provides the transparency that so often is lacking in a business negotiation. We are doing our best to cultivate our referral business as it is our best marketing tool.

21. Building and growing from our reserves, avoiding debt.

22. Networking & Marketing.

23. Working on getting the phone to ring, thru marketing and referrals and learning and taking classes on sale system to maximize our rate of turn-ing leads into business.

24. Continue to market consistently and stay lean.

25. Holding fast to mark up and quality. Careful with sub selections and sub performances. Maintain a good, talented staff.

26. Pricing approach.

27. Expanding services.

28. Marketing!

29. Providing reasonable priced product.

30. More marketing.

31. Becoming more organized and weeding out the customer's who are just looking for a number so we don't waste precious time working on an es-timate when there is a good chance we won't get the job.

32. Doing what it takes to make it work. You have to think outside the box. Be creative in advertising, financing and sales. You must be able to come down to there level or what they are will to pay for a new home.

33. Diversifying.

34. Better systems are in place as we move forward.




35. Developing a line of semi-custom products that are price sensitive to the market.

36. Diversification into remodeling.

37. Surviving.

38. Survival is the key and how long the biggest question.

39. We are continuing to market heavily during this time, almost doubling our marketing expenditures since 2008. We closely monitor our cash flow to remain solvent.

40. Organizing and perfecting systems.

41. Keeping costs under control and increase all business efficiencies from sales to production to marketing.

42. Working on every aspect of the company from sales and marketing to admin and production.

43. We are cutting long term costs where possible and trying to plan for staff-ing and such (training now for busier times ahead).

44. Focusing on more creative marketing.

45. as above, training and becoming better at what we do.

46. Taking a hard look at ourselves as a company, and revisiting our busi-ness and marketing plans. We see our marketing plan undergoing the greatest amount of revision.

47. Hiring outside sales training.

48. Drive home customer service with our employees and sub-trades.

49. Refocus on those that are our raving fans along with and active search for an organic public relations person.

50. Being profitable now as we don't believe that anything will change very fast from the current economic climate.

51. Paying down debt on lots owned.

52. We are being very fiscally cautious and looking at every opportunity care-fully.

53. Increase our marketing efforts through the internet.

54. We are working on our purchasing powers. We are working to provide more affordable pricing by aggressive price negotiating with vendors & trades.

55. Ensuring each and every client is a delighted client.

56. We have continued with our marketing program, though much scaled back. We do not have any company debt and our overhead is very low so we are positioned to be profitable at almost any level of revenues includ-ing todays which is 2/3's less than in previous years.

57. Developing more community outreach programs to stay top-of-mind in our client pool. Working to continue producing award winning clients with a great team of employees.

58. We are investing time and resources in training staff, improving operating systems, and focusing on effective marketing.

59. We are as lean as we can be and be professional and provide great serv-ice. We had lowered our prices to be more competitive and are now slowly raising them.

60. Designing, pricing and building homes that our prospects realize the win-dow of opportunity is short so they'd better get off the fence and commit.

61. Looking at alternative revenue sources including general contracting and custom homes.

62. Cultivating past clients, calling, follow-up, asking for referrals.

63. Focusing on dual strategies of best world class service and being a cost leader.

64. Expanding our building options in the range of green building.

65. Networking to a higher end niche.

66. We hope to be SOLD!

67. Trying to increase market share.

68. Increasing margins.

69. Targeting wealthier customers.

70. Cutting margins and profits to bone. work for wages, (hopefully) Installa-tion subs and vendors have reduced pricing substantially. we see a need in the manufacturing and government areas to reduce their costs.




71. We feel the above will not only address the challenges now but help us in the long term as well.

72. Building in high traffic/ dense local markets with entry level to mid level product.

73. More direct mail, more radius mailers, reducing my news print advertising increasing participation in spring home shows and updated web site. Also installed MarketSharp E to better manage my business.

74. We've dramatically reduced cycle time, improved systems and made ra-tional cuts to our overhead (e.g., reduced our space and thereby our rent by over 60%).

75. Keep our marketing up and hanging on to our good employees.

76. Advertising to previous clients.

77. Writing more proposals.

78. Expanding our customer base, increasing our sales skills, etc.

79. Developing systems focused on efficiency and quality control.

80. We're enrolled in a sales training course to develop a sales system. We are laser focused on the customers for whom we are working now.




ADDITIONAL COMMENTS

1. The general tone of the custom home building market is definitely improv-ing, albeit slowly. Much more hope entering 2011 than 2010.

2. People are being careful with their money but they haven't abandoned fixing up their homes. Value is more important now than ever.

3. Give us a new congress!

4. People no longer seem content with win-win situations...it almost seems as if people are so set on getting the best deal possible that they don't care if the other side takes a loss. Not good for long term relationships and the damage done may not recover for years to come.

5. We see the entire market wanting to move forward but unwilling to do so. They are waiting to see if we have another dip, or is this the real bottom. Until clear support of value is established, the market will be at a stand still.

6. We are finding many clients that are doing a lot of internet shopping or that feel they are "experts" - making our jobs difficult at times and at other times, making sure that we're always one step ahead of them! Clients seem to be increasingly demanding. Wanting more and more for less and less. I think part of this is the press - telling the public that contractors are hungry for work and are willing to cut their prices.

7. We are still in the cautious optimism mode. Controlled, profitable, and competitive growth. With strong referral business. And an eye on expand-ing our marketing impact.

8. In our area, we are seeing a quick turnaround in homeowner's decision to go ahead with remodeling their homes. I think that people have given up with the idea of moving because they can't or probably won't get the money out of their house that they may have invested into it or have a mortgage for so they are doing work on their home.

9. The market is improving for us in the northeast. June and July where really bad for sales. September is looking stronger than August. We ex-pect the market move up and down for some time before settling in. This is the new norm.

10. The large custom market is dead for now.

11. Marketing differentiation will be a key for us- we have a high quality prod-uct in a competitive market, so we are looking for an innovative "edge".

12. The economy has forced us to become better. I wish we would have worked harder to improve our company before the recession.

13. Several customers seem to be waiting until the mid-term elections before making any decisions.

14. This winter is going to be tough for us due to a lack of people wanting to build!

15. We have found that over the past 4 months that our leads from potential clients that have or will purchase a home needing significant remodeling and/or additions has increased dramatically. We had no serious leads for this type of work from Oct 2008 - May 2010, however this type of lead has resurfaced in a significant way. We see this as a significant shift in our market area, a very positive shift because this type of project had disappeared from the radar for more than 20 months.

16. 2010 is shaping up to be one of the best our company has ever been. Our volume is good, margin will be down slightly but so are costs to pro-duce. We actually are blessed and very happy. We are actually seeing positive signs of keeping the momentum for 4th quarter 2010 and 1st quarter of 2011. We believe we have found the right product at the right price for the current economic climate.

17. In our market we are experiencing very cautious buyers. they are putting off major purchases of high ticket items. Very hard to generate leads right now.

18. The wealthy retired customers are not affected by the economy, so we are going after there business.

19. We continue to put a heavy emphasis on customer satisfaction. Our use of GuildQuality is the main tool for this.




GuildQuality Member Predictions & Strategies: Q3 2010

Real Estate

experience guildquality

signicant decline

handful of members

signicant improvement

signicantly decline

percentage of members

guildmember condence

real estate companies