Tom Weiher, president of Carmel Builders, has not had time to mourn Home Star’s death; he’s been too busy with the slew of upgrades coming his way via Wisconsin’s
Focus on Energy initiative. “It’s a win-win situation,” Weiher says. “It’s grown our business as we’ve introduced it to a lot of people. Once you establish a good relationship with the homeowner and bring them some value, you’re the first company they think of when it’s time to remodel.”
And apparently a lot of homeowners thought of Carmel Builders first: Weiher estimates that the company has added $75,000 to its annual bottom line since it began performing these upgrades. Referrals from those jobs alone have generated an additional $150,000, and “our indicators are that we’ll double that this year,” he says.
Focus on Energy is funded by Wisconsin citizens who have been paying for it via their utility bills. The rebates are issued once the upgrades are completed and approved. The entire process begins with an evaluation by an independent home performance consultant, which costs the homeowner around $750. The homeowner receives an in-depth “prescription” about what improvements are needed, and then Carmel Builders steps in. Since the company is an allied partner, it gets the recommendation from either the evaluator or from Focus on Energy’s website. Weiher adds that all it took to become a partner was the time to register and to have a couple of employees trained in specific processes.
Obviously, the energy upgrade work gives Carmel Builders the foot in the newly weather-stripped door for other potential remodeling projects. In some cases, Weiher says that the upgrades go a bit above and beyond what the independent evaluator recommended. E.g., if new weather stripping is needed around 25-year-old patio doors, it would be beneficial for all parties to replace the doors altogether. While the customer gets a better-insulated door and frame, Carmel Builders earns a bigger margin.
Aside from using the upgrades to turn new clients into repeat customers, Weiher has also leveraged them as an incentive for clients contemplating a standard remodeling job. Carmel Builders offers to pay for the evaluation once the client has signed a formal design/build contract. “If it’s a $200,000 job, I can afford to cut a $750 check,” Weiher says.
The remodeler can’t deny that performing these upgrades gives him a definite advantage. “I was looking at a potential client’s house last weekend and it was only five years old,” he says, “but as I made my pitch to the homeowner, he was not familiar with the Focus on Energy program. So I took him around the basement and showed him where he was losing energy. He was dumbfounded that the builder took a lot of shortcuts.” Carmel Builders’ knowledge and ability in the energy-efficiency realm gave the company a leg up on the other three contractors coming to bid on the project. “All things being equal,” Weiher says, “I think I have a pretty good shot at getting that job.”