Welcome to BDC Magazine’s new outlet for keeping you (our subscribers) up to date and informed regarding the latest in the design center industry–our BLOG!

Our Goal

Our goal is to stay connected with our reader base in an interactive, fun, and informative manner between electronic issues of the magazine. We also aim to facilitate connection among our readers, because we believe that design centers can benefit from being part of a community, especially during such a tough market.

 Topics for Discussion

From this Blog, you can expect to find exactly what you find in the magazine–including tips, tools, advice, and updated news and events. Topics may include anything that peaks our interest, or anything we think will peak yours. (If you have any ideas, feel free to contact us at http://bdcmagazine.com/contactus.) We are looking forward to having fun with this!

BDC Bloggers

BDC Bloggers will include the staff at BDC Magazine, our column of industry-leading experts and contributors whose advice you have come to respect, and other industry specialists.

Your Role 

You can help build the BDC community by visiting on your lunch break, sending a link to a friend, or adding comments and valued insight to our entries.

Most importantly, become a part of the BDC community by subscribing to this blog!

Thanks for visiting!

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For more information on the magazine, please visit our website at http://bdcmagazine.com. While you are there, sign up for a free subscription!

http://bdcmagazine.com/survey/survey.php?sid=30

Eligible respondants will be entered into a drawing to win free registration* to Artisan Design Group’s Design Center Forum 2008! Simply fill out the brief survey, indicate your job title, and be sure to enter your email address when asked. For more information regarding the conference, go to http://www.designcenterforum.com/. Entry deadline is July 15, 2008.

*prize package does not include airfare or hotel fees, winner will be notified by email

by Maria Muto-Porter, Editor, BDC Magazine

From the time the Europeans came to North America with only what they could carry on several scary-tiny ships, people learned to find ways to accomplish what they wanted using limited resources. Some lessons were learned from the Native Americans, for whom living off the land was a way of life. Some were naturally adept at adapting, discovering multiple uses for tools and scavenging for the rest from the forests around them. Others lamented what they once had, and failure meant returning to the old country, or simply not surviving.

Although we’ve had downturns before, most agree that we are hitting new ground with this drop, and like Americans confronting new frontiers, people in the housing industry are discovering just how adaptable they can be. Some are finding ways to survive and thrive. One company is making a good living completing unfinished homes that have been repossessed by banks, making them ready to sell. Another builder has gone back to its home buyers from the past 8 years, offering renovation opportunities such as finished basements and outdoor kitchens. Others, of course, have not found ways to make it through these tough times, and we are losing some.

At BDC Magazine, we’ve had to face our own grizzly bears. A new magazine – even one as well received as ours – has a tough time in tough times. But we’ve found a way to remain a part of the adventure with limited resources. And the journey is an exciting one!

We’re taking this opportunity to significantly expand our e-outreach to you. We will be expanding our eNewsletters and eBlasts – not to inundate you with them, but to share ideas and news as it comes along. We’re also starting this Blog, with a plan to have new information and postings at least every week. And we welcome the opportunity to hear from you. If you have something to say, talk to us and we’ll get you posted. The best news is that we’re not bound by the calendar anymore. Instead of hearing from us quarterly, you can look us up anytime and find new articles, features on design centers and showrooms, news about people and products in the industry, and suggestions to make your lives and your work better.

We have pushed back our publication of the paper version of BDC Magazine, but we will be producing an online magazine later this year. With the opportunity to embed videos, audio clips, animation, and direct links to the information provided on each page, the new BDC will be much more interactive and immediate. And in the spirit of going green – we’re cutting our carbon footprint down to almost nothing. I may even go wild and leave an incandescent bulb burning for no reason! (OH – never mind, I’d better not go there – my very sustainable client base would not be happy with me and we can’t have that.)

And for those of you who find yourselves set adrift by an organization that can no longer support its full team, please re-subscribe as yourselves – because we want to stay in touch with you. We will start including ideas for coping with this situation as individuals, as well as within organizations. It can seem like a lonely time right now, but you do have us in your corner still.

It’s a wonderful thing to have beautiful well-designed magazines with high-quality paper and great photos coming for free to your door. It’s been a true joy to put them together for you over the past year. But better for all of us is to get you good information in a timely way – with some great photos too – using tools that allow us to stay with you now, and come back with more great magazines as the market gives us the opportunity.

As always, thanks for your continued commitment to our efforts. Your feedback and contributions will make BDCMagazine.com a stronger blog and website. While I’ll stop short at a quick couple of verses of Kumbaya around the campfire – I want you to know that your continual notes and calls help me to know that what we’re doing is useful to you. 

Stay in touch, and we will too!

Maria

Selling Green

by Tracy Reid, East Coast Design Center Manager, Shaw Industries

You learn at a tender age that yellow and blue make green.  The question then becomes how to make green by selling green?  The statistics are in and consumer research reveals that 78% of consumers make a conscious effort to recycle, and 88% are interested in learning about environmental products.  So, how do you close the sale on green products?

First things first, education is key. Make sure you are well-versed on all of the environmentally friendly offerings in your design center. You may be surprised that you were already green and didn’t even know it. Have your trade partners train you and your staff on all the green benefits that already exist in your line up.  Label these products as green so that all associates can easily identify them. You will then most likely add more green products, as this is not a passing trend.  Green is becoming a lifestyle, so learn the lingo (see our glossary below). Don’t let “green washing” in. Get the facts. You can rehearse your green product presentation in the mirror if that’s what it takes. Hey, don’t knock it ‘til you try it!   

Next, put your knowledge to work.  As you are interacting and getting to know your customer’s taste, lifestyle, and preferences, simply ask them, “do you recycle?”  If there is a twinkle in their eye as they answer yes, gently lead them into your green offerings.  Whether that be an energy saving appliance that will positively impact their utility bill, low V.O.C. (Volatile Organic Compounds) paints to improve indoor air quality, or sustainable carpet that never has to hit a landfill, you can find out where their passion lies. 

We are finding that future homebuyers are not upgrading products in their house simply because it is green. We are not quite there yet.  Green is an added benefit.  If the product they fall in love with fits their lifestyle needs and happens to be green, they’ll feel even better about their purchase.  This way you won’t see that buyer’s remorse, which rears its ugly head as the dreaded change order.  Grrrrrrrrrrrrrrrrrr.

At Shaw, we offer green flooring solutions in all price points from base grade to designer levels in our Epic hardwood, Anso® nylon, and N6 carpets.  We believe your homebuyers do not have to sacrifice style and design to go green.  They can have a beautiful home and contribute to a beautiful earth.  The key is affordability relative to their comfort level, lifestyle, and pocket book.  If you relate that the upgraded product is not only useful, beautiful, and budget-friendly, but that it will also benefit future generations, you will tug on their heart strings and open their purse strings.   

I will leave you with a Native American Proverb: “We do not inherit the earth from our ancestors; we borrow it from our children.”  And really, isn’t that what it’s all about?  

Key Terms:

• Cradle-to-Grave: at the end of a product’s useful life it is disposed      
• Cradle-to-Cradle: at the end of a product’s useful life it is recycled back into itself       
• Green Washing: false or misleading green marketing claims     
• Recyclable: a product that is made of reusable materials  
• Sustainable: a product that can be collected and safely recycled into the same product

Research to Build On

By: Rick Palacios
John Burns Real Estate Consulting

Times of hardship should motivate our industry’s leaders to ready themselves for when the market begins to recover.  Forecasts, however bleak they may seem right now, play an integral role in the preparation stages, helping us identify the ever-elusive bottom of the market.  Comprehensive research is a must at this stage in the housing cycle.  By focusing on research now, you can ensure that your business will flourish over the long term.

Below are five indicators that we believe everyone in the housing-related industries should be monitoring to help their business succeed.

1) Job Growth:
Job growth is the primary determinant of the demand for housing, and thus a very important indicator to watch.  The overall job market got off to an unpromising start for 2008, with the U.S. economy experiencing its first monthly decrease in January in more than four years.  But not all housing markets are in economic peril, with some markets still bucking the trend and continuing to experience healthy job growth.  Continue to monitor employment trends in each of your markets, as well as other markets where you feel opportunistic investments may arise.       

2) Supply: 
The unsold housing inventory is much too high – at 10 months of supply in both the new and resale home markets nationally and needs to decline significantly.  We believe that a healthy level of supply is closer to 4-6 months in the major housing markets.  Aside from monitoring usual resale/new home supply metrics, pay close attention to foreclosure activity.  A peak in foreclosure activity will be significant for our industry, indicating that excess/speculative investment properties are beginning to be flushed out of the system.           

3) Sales Volumes:
In a number of markets that were among the earliest to enter the down cycle, we don’t believe sales volumes can possibly fall much lower, and expect to see initial signs of recovery in the coming year.  Both existing and new home sales volumes have plummeted in this down cycle, falling to their lowest levels since 2000 and 1995, respectively.  Sales volumes will serve as one of the first signs of a recovery in the overall housing market.   

4) Sales Price:
Watch for price stability in the new home market first.  New home prices have been freefalling since early 2007, while resale prices have just recently begun to plummet.  Builders have done a better job of marking to market, something that existing homeowners are often unwilling to do.  Therefore, home builders have the upper hand in terms of value, a fact that should be emphasized whenever possible.   

5) Mortgage Trends:
In addition to rate fluctuations, we suggest monitoring loan-to-value (LTV) ratios.  Everyone knows that interest rates are still low in comparison to history.  However, this fact is irrelevant if credit guidelines limit the number of people that can actually qualify for a loan.    High LTV ratios were common up until 2005-2006 but have declined since.  As lenders begin to grow more confident that prices have stabilized, LTV ratios should begin to steadily increase, pointing towards a recovery and overall confidence in the market.       

Conclusion:
Housing is a cyclical business, and the current downturn will be followed by a period of recovery, which will provide great opportunities for the builders and industry participants who are well-prepared.  Monitoring key trends and forecasts will help you to navigate both down and up cycles and enable you to mitigate some of the inherent uncertainty in the home-building industry.

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RICK PALACIOS
Research Analyst

Prior to joining John Burns Real Estate Consulting, Mr. Palacios worked as a Sr. Analyst for RSM EquiCo, the investment banking division of H&R Block. Additionally, Mr. Palacios has worked as an International Trade Specialist for the U.S. Department of Commerce. His experience includes extensive market research, international trade and financial analysis. Mr. Palacios double majored at the University of California, Irvine, receiving a B.A. in both Political Science/Economy as well as International Relations. 

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John Burns Real Estate Consulting helps their clients determine strategies, make decisions and monitor real estate market conditions. Our Building Market Intelligence TM consulting process helps bring clarity to the decision-making process. (shown here: John Burns, President)

John Burns Real Estate Consulting Headquarters: 4000 Barranca Pkwy, Ste 250, Irvine, CA 92604  Office (949) 870-1200 Fax (949) 870-1299 www.realestateconsulting.com

By Bethanie Hestermann, Editorial Assistant, BDC Magazine

Ever wished there was a Design Center Managers Anonymous? You know, a place to go when you need support and encouragement? A place where your struggles are empathized with and your successes are celebrated? If so, consider the advantages of starting a Roundtable in your area.

Why Roundtable?

A Roundtable can be defined as anything from a support group (hence the AA reference above), to a sort of “book club” for design center managers. The concept of the group, regardless of what you decide to call it, is to discuss, collaborate, share with, and support fellow attendees who are working in the same market as you. Not warming up to the idea of sharing with your peers? Think your ideas are yours and yours alone? You are missing out. It is important to recognize that design centers are not in competition with each other! Be honest about your strengths and weaknesses—while you may be a shining example in one area, chances are you could use some help elsewhere. Think of it as a tradeoff; bring something to the table, and expect to take something away. Remember, the concept is built around a roundtable, meaning everybody shares and benefits equally. If you come prepared to share and exchange insights and ideas, you’ll leave with a fresh perspective and some new friends.

Make your Roundtable a Success

Logistics
While you may be the pioneer of your group, don’t think you have to do all the work. At your first meeting, set aside some time to gather ideas from your guests. How do they feel about hosting a Roundtable at their facility? Suggest moving the meeting each time to a new location, and sharing the hosting responsibilities. Consider separately assigning hosting and facilitating duties. (This way, no one is overloaded with both tasks.) Discuss funding and ways of providing food and drinks in a way that makes each member comfortable. Often local reps will sponsor these meetings, covering the cost of food and drinks. Consider how often you would like to meet. Monthly? Bi-monthly? Quarterly? Make sure you find a day and time which does not conflict with the other group members’ schedules.

Agenda
Are your meetings going to be themed? (And no, I don’t mean Hawaiian or disco-themed.) Rather, will your discussion agenda revolve around a central topic, a range of related topics, or will it be more of an open forum where each member comes in with a list of potential areas to be explored? Experiment with each style, or hold a vote at your first meeting to decide which will be the most effective for your particular group.

More Ideas
Spice up your Roundtable (and increase attendance) by inviting a special guest to your meeting. Reps and local manufacturers may be able to offer opportunities for training or tours of their facilities.  Schedule a tour of local design centers or model homes. Hold a social event to gather more members. Ask core attendees to contact other design center managers in the area and personally invite them to the next meeting. (A personal invite goes a long way.) Also, don’t forget to lure other managers to your event with the promise of food or snacks. If you’re really ambitious, you can give out some wine samples too! (After all, this is “DCMA,” not AA!)

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The Roundtable advantage is even more pronounced in a tough market such as today’s. Take the opportunity to learn, grow, and improve your design center through networking. When the market turns around, you’ll be in a stronger place because of it.

Nancy’s Picks at K/BIS 2008

by: Nancy Hugo, CKD

Like 45,000 other designers, builders and the like, I make the pilgrimage to Chicago in April to see what new and exciting products, appliances and trends were being introduced at the Kitchen and Bath Industry Show.  After perusing 600,000 square feet, well most of it anyway, I chose some of my favorite products, if money were not an issue, that I would put into my home tomorrow.   

The Most Useful in my opinion was the Brew Express, a built-in-the-wall coffee system, introduced in 2005.  Easy to install, small enough (rough-in is 8.5” x 10” x 4” high) to fit in the backsplash of any kitchen or coffee bar, the Brew Express self-fills from a dispenser bottle and pump under the counter or plumbed in the wall from a cold water supply line.  There are two outlets on the front of the unit, a programmable timer/clock and a stainless steel carafe.  You can choose from a 12-cup, 10-cup or 4-cup unit.  Prices range from $289 to $449.   Gotta have one in my office !

The Most Green and beautiful flooring and countertops are made from the mesquite tree exhibited by Living Elements, a Texas based company.  Mesquite is a legume, and, when harvested, the root system and trunk remain – very much alive – to be harvested another day. I was not aware of all the interesting properties of mesquite, but it certainly fits into the practical and sustainable list of materials we should be using.  Check out their website www.livingelements.com. Great item for leeds points

The Most Whimsical item found at the show was the Vanity Watch Waste from Murano House.  Hand-made in Italy, the watch comes with precious stones set into the timepiece.  The case is made of waterproof, stainless steel and has a high-impact glass covering the face.  The complete assembly including a 2-year warranty priced at $550.  Impressing your friends – priceless!

The Most Rejuvenating item is theProSun Sunshower, a device that uses ultraviolet lamps and filters giving the user a tan and a daily supply of vitamin D while showering.  Optional LEDs can be added to the unit at time of order reduce the appearance of aging, fine lines, enlarged pores and wrinkles.  Damaged skin cells are repaired and replenished and stimulated to produce collagen.  The complete shower unit ranges from $10,900 to $13,400, not including installation.   A must have for anyone over 30!

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Nancy Hugo, CKD is an independent Certified Kitchen Designer specializing in interior residential remodeling and new construction design in the Phoenix metropolitan area.
Nancy is well known for her aesthetic qualities as well as functional designs. Working closely with her clients, Nancy develops their ideas and dreams into a reality.

The Four Oxen and the Lion

by Charlie Scott, Woodland, O’Brien & Scott

In the last issue of Builder Design Center Magazine I wrote a column using a fable as the basis for a lesson.  That fable approach generated more positive comments than I have received from any column in recent memory….so, let another fable begin…

In the days before civilization there lived four oxen on the prairie of Africa.  These four oxen had unknowingly learned, over time, that they were safer as a group than they were as individuals.  These four oxen had often seen individual oxen enjoying the many succulent prairie grasses but only for short periods of time.  The four oxen always assumed that the individual oxen had moved on to “greener pastures”, which was perplexing given the prairie had more food types to offer than could be consumed by a thousand oxen. 

Naturally, these four oxen were constantly on the lookout for the perils of the prairie, specifically lions.  A frequent threat was a local lion (let’s name it Marty) which had been hanging around this prairie for many years.  On one occasion Marty had stalked these four oxen only to learn that as a group these four oxen were a formidable force and invincible. On that lone stalking occasion, a twitch of an ox’s ear was the signal for all the oxen to band together and assume their defensive positions.  Their defense was quite elementary.  The four oxen would back their tails together with each oxen facing outward; this may have been the first recorded “I’ve got your back” teamwork.  Their configuration allowed the oxen to see in all directions neutralizing Marty’s element of surprise and foiling any attack.  Marty never stalked them again.  

One fateful day, the oxen disagreed as to where on of the prairie to graze.  They all seemed to have their own opinion and preferences.  Soon angry grunts were exchanged driving a wedge among the four oxen.  They decided to disband and go out in pursuit of their individual desires; they were each convinced they knew where the best grazing was.  The oxen came to enjoy their independence, and so did Marty the lion.  Marty the lion had no trouble stalking a lone ox and doing what lions do (how’s that for saying it nicely).  Soon, the four oxen were no more.

This fable is a perfect analogy for homebuilders.  You see, homebuilding is equally a team activity requiring coordinated efforts from the: Sales, Design Studio, Field and Internal Operations Teams.  By working together as a team you do more than just protect yourselves against potential threats (i.e. an upset customer). You can also confer on resolution strategies using the two (or four) heads are better than one philosophy to enhance solutions and all be on the same page.  How’s that for revolutionary concept?   In addition, the homebuilding team can emotionally support each other in the event of an error (hey, everybody makes misteaks, right?).  Most importantly a homebuilding “team” sends a loud and clear message to the client that the team is well informed, talk & care about the customer, and are professional and supportive of one another.  You see, teamwork is as obvious to a customer as it was to Marty the lion. Our Woodland, O’Brien & Scott customer research shows that a builder’s teamwork rating is very strongly correlated to their customer’s enthusiasm and propensity to refer the builder to family members and friends.  So, being a team is easier, more enjoyable, more productive, and better serves the customer.  Unfortunately, all it takes is one team member to wander off (or criticize another member) and the strength of the bond weakens.

The moral of the story:  A team mindset has countless benefits for the team and ultimately better serves the client.  Or, as the saying goes, “united we stand; divided we fall”. 

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Charlie Scott worked for a national award winning builder for 19 years. He is now a partner at Woodland O’Brien & Scott, joining fellow ex-homebuilders John Woodward and Keith O’Brien. Woodland O’Brien and Scott specializes in helping homebuilding operations enhance customer (and employee) satisfaction and increase referral sales. He is also an author, columnist and frequent speaker at industry events.

Here are some trends and highlights from Surfaces 2008:

These bamboo flooring samples reflect a trend in natural flooring that was big at Surfaces this year. Bamboo is no longer a one-trick pony; with a diversity of finishes and color combinations, it is now a versatile way to add a touch of naturalism to a home.

Don’t limit comfort and style to indoor design! In this display, Dale Tile brought rich color, appealing design, and indoor comfort to outdoor design.

Leather is not just for car seats, expensive jackets, and purses anymore! Would you believe that leather is now a luxury in flooring?? Shown here, EcoDomo’s Leather Tile collection was yet another reflection of this year’s trend in natural flooring.

  Where better than at Surfaces to realize that flooring choices don’t all have to look alike! Beyond the conference’s emphasis on naturalistic textures and materials, Imagine Tile demonstrates how to introduce nature into the home in a bold way. Their colorful array of patterns grabbed our attention, and our imaginations!

Here are some highlights of 2008’s International Builders’ Show:

Lennox’s “Radium” fireplace stood out with its sleek design, completely flush with the wall. This approach to a fireplace is innovative, space-saving, and eye-catching.

Doors are not only the entrance points into a home, they are design elements which can make or break a home’s decor. Trends in artsy doors include designs such as this iron-wraught wonder.

Environmentally-friendly options were a huge part of IBS 2008. Many lighting companies displayed their energy conscious products with pride. Here, Vierti stylishly displayed its energy-saving lighting options.

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Now that you know what captured our attention, what was your favorite part of these shows? We heard that while the attendance was understandably low compared to previous years, the quality was exceptionally high! Do you agree? If you were unable to attend, why not?