Upscale Downstairs

Get More for Less

info@upscaledownstairs.com (upscaleadmin) — Thu, 02 Aug 2007 12:58:52 -0400

It�s seems that everyday we hear about �rewards programs," especially from credit card companies. In my experience, most sound nice but in reality are disappointing. Put $50K on your card, get one-way air to Nephi. So far, for me, only the Cabelas program has been gratifying � and that�s just because I�m happy to earn a FREE fishing fly every so often (a whopping $1.25 retail value). However, I want you to see, no � I want you to experience how Upscale Rewards is different.

First, there are many ways to earn points. Basically, do anything that might promote our business and you earn points. That might be placing a sign in your yard, writing a testimonial, or attending one of our free design classes. Most commonly, and perhaps easiest of all, refer a friend or colleague to Upscale Downstairs. (You both get points when it happens that way.)

Many of our past and present clients are doing these types of things already, and we feel they should be rewarded. And for the rest of you, hey, why not get some free stuff? You don�t have to be a client � or even own a home or have a basement � to join in.

Second, the rewards are seriously nice items. Not AM Walkmans or logoed Frisbees. We offer nice incentives like Bed & Breakfast stays, day spa retreats, Nintendo Wii systems, Thanksgiving Point golf passes, Prada purses and even 50� HD TVs and cruises to the Mexican Riviera. (No, I�m sorry we don�t have any FREE fishing flies available � although we do offer a guided fly fishing trip!)

Most importantly, these items are relatively easy to earn. Consider our popular Nintendo Wii party bundle � fully equipped for a good time. Impossible to earn? Not really. Say you refer three friends to Upscale Downstairs (300 points). Two of them hire us (1200 points). Now get yourself a free Wii (1000 points) and still have points left over for a mind-blowing escape to Sego Lily Day Spa (500 points). Maybe take both of your friends with you to the spa � they came to us as a referral (600 points each) so they�ll also have more than enough points to come along. See why Upscale Rewards is different?

OK, I know what you�re thinking but NO - a program like this does not increase our overhead/sales price. In fact, it just lowered it by reducing the amount of less-effective marketing that we�d spend elsewhere. And no, this isn�t an MLM (although if your three friends each get three friends�just kidding!). Truly, this is a fun and simple way to get free stuff by helping spread the word: Upscale Downstairs is the leader when it comes to Utah basements.

To check out all the details, click here.

Until next time,

Cory, the Bloggin Builder

Avoiding Remodeling Hell

info@upscaledownstairs.com (upscaleadmin) — Tue, 14 Nov 2006 13:22:47 -0500

One popular cartoon is said to demonstrate the stress of large remodeling projects. In this depiction, people are lined up in front of two sets of stairs � one going down to �Hell,� the other ascending to �Remodeling Project.� The line for �Hell� is much longer, as it is the preferred destination for people.

At Upscale Downstairs, we have several programs in place to make �remodeling projects� a more popular destination. We're not perfect, but we are sure trying. We value and welcome your suggestions and experiences, too.

One of the most important keys to reducing stress is proper planning. As a design/build company, we begin by creating a custom floor plan for every project, something we're able to do well because we�re basement specialists. Then, at the initial design meeting, what we call the �pre-pre,� we go over the floor plan with our clients, making changes as requested. At this time, and the subsequent pre-construction (�pre-con�) meeting, we also discuss cabinet layouts, payment schedules, change orders, job-site access, and other potentially stressful issues, making sure everyone is on the same page.

We also invite each client to our design room, located at our model, where they will pick colors, flooring, and other interior elements � all at one spot. You might expect similar programs among large home builders, but such steps are virtually non-existent with remodelers. By having these multiple meetings, typically before any construction begins, we work hard to reduce stress and make the remodeling experience more positive.

As I mentioned, we're not perfect, and in this industry, things don't always go as planned. Still, we acknowledge the stress that comes, and we're leading the pack when it comes to improving the remodeling industry.

If you have any suggestions or experiences that might help us or another homeowner, please post your comments here.

Until next blog,
Cory

It's a risky business...

info@upscaledownstairs.com (upscaleadmin) — Thu, 15 Jun 2006 12:10:20 -0400

My heart sunk earlier today as I read about the conviction. A personal friend of mine, and former owner of a construction company, was found guilty on Monday of negligent homicide and endangerment after two of his employees were killed in a tragic accident on the job. Although I believe that jury�s decision wasn�t the right one, this is a sobering reminder of the risk construction companies and their owners face. These are the kind of stories that keep me awake at night.

Because of the low barrier to entry, many people enter the construction industry. However, few, especially in residential construction, understand the risk associated with their business. (From my discussions with my friend, I think he did understand his risk, and planned accordingly.) Among the things that can go wrong in a construction project are unanticipated costs, sudden increases in material prices, unavailability of qualified labor, clients who are unable or unwilling to pay, equipment malfunction and breakdown, weather-related delays and damage, property destruction, even personal injury or death.

For a general contractor, such as Upscale Downstairs, the construction company must not only worry about their direct risk, but also the indirect risk associated with subcontractors and their independent suppliers. Second, third, and even fourth-level parties all pose potential risk to the general contractor. This is one reason why we carefully hand-pick every subcontractor and supplier who becomes a part of our team. Those trades who work with Upscale Downstairs are proud of this. We may have to pay (and charge) more for first-rate service, but that peace of mind adds value to everyone involved, both contractors and clients.

For those of you who feel that the cost to finish your basement, build a home, or hire any contractor to perform any other job is surprisingly high, I can sympathize � I pay the price, too. However, I argue that many of these costs should be even higher, especially in the remodeling industry. Why? Because of the principle every stock broker, gambler, and employee understands: HIGH PROBABLE RISK EQUALS POTENTIALLY HIGH RETURN.

If you purchase a conservative mutual fund, you expect conservative results. If you bet on the favorite horse, you can�t anticipate big bucks. And if you work for the government, you appreciate security and benefits, not usually unending future potential. As a building contractor takes on potentially greater risk, he/she should charge accordingly. In land development, commercial, and industrial construction, many experienced and educated builders understand this principle. But again, where barrier to entry is lowest, in the residential sector, this is different. A new remodeling contractor, anxious to generate business, doesn�t understand his/her risk, and usually doesn�t charge near enough to compensate for that risk potential, let alone his own costs. I know. I�ve been there before.

I can remember one house I remodeled years ago for an investor. I was probably the only one willing to do the work. The place was a ticking time bomb, ready to go off. Mold was everywhere. The electrical was outdated and unsafe. Pipes and roofs leaked. The house itself was structurally unsound. With my crew, we cleaned the place up. But it was impossible, especially with such a low budget, to foresee and correct every problem. Fortunately, I had enough foresight to have the owner sign a special waiver of liability. Even still, I would never consider such a project today, and anybody who does should charge handsomely. There are a thousand things that could go wrong, for any of which the contractor, in today�s sue-happy society, might be found responsible. Those are the types of projects that stay in the back of my mind, keeping me wondering if one day I will get a phone call�

Now finishing your basement isn�t half as risky, right? There shouldn�t be any mold problems, and if the house is newer, the electrical, plumbing, and structure should all be in great shape. But it isn�t that simple. The long list of potential risk I mentioned earlier, including property damage and personal injury, might still occur.

Speaking in general terms then, and applying the risk-return principle, I should profit substantially more than, say, a database administrator who also has a four-year degree but who doesn�t face the same level of risk. Likewise, I might profit less than a civil engineer who has a six-year year degree and who also faces serious risk. So why then isn�t this the case? Why do so many contractors struggle to pay the bills? Poor financial management is part of the problem, but it�s not the whole story.

Unfortunately, those who don�t understand risk, and don�t charge a risk-appropriate fee for their service, force the rest of us to lower our prices to remain competitive. Worse yet, unlicensed and uninsured �contractors� really hurt the industry. Without the experience required for a license and the high expense of liability insurance, these folks really hurt price standards when they offer lower cost services than their insured competitors. And when something goes wrong on a job, it�s often from one of these people, and the entire industry suffers, partially resulting in the negative stereotype contractors face today. (For more on this topic, see the previous blog)

So the next time you are surprised by a �high� price from any contractor, be thankful the price isn�t higher � it probably should be. And remember my dear friend in jail, and the high price we pay to be building contractors.

***
As always, I encourage your comments. Use the link at the bottom of the page to share your thoughts.
***

Watch-out! Don't get ripped-off...

info@upscaledownstairs.com (upscaleadmin) — Fri, 21 Apr 2006 11:40:27 -0400

I just got off of the phone with a woman who had been ripped-off. Several months ago, her family was ready to get started on their basement. She contacted several contractors, including Upscale Downstairs. Unfortunately, they decided to go with the lowest bid. �It wasn't just about price,� she explained, �they really played into the 'trust factor.'� Claiming to be closely associated with the local religion, being a family run business, and in need of some extra work were all comments this fraudulent construction company made. They put together a nice presentation, and the price was great, so this family put 40% down, and got excited. The family never checked the contractor's references. Slowly, the job got started. Not long after, the contractor was asking for more money, this time to pay his subcontractors, who should have been paid with the first deposit. �The real red flag was when they asked for gas money to get to work,� she said. �At first I said 'no way,' but they really pulled at the heartstrings.� Then one day, the contractor showed up, removed all of his tools, and disappeared with a lot of money and less than half done.

So today she called, of course regretting having not selected a better company. Her family is in dire need of the space, and they're short on money. I agreed to do what we could to help. At the same time, we discussed the demise of another popular basement finishing company that went bankrupt, leaving many jobs unfinished and even more subcontractors unpaid. Interestingly, the most amazing part of my conversation with this woman was her great attitude. Despite her losses, she remained upbeat, even humorous. �There's nothing I can do at this point,� she said �but laugh.�

I share this story with you, not to make a hero out of our efforts, or to use scare tactics, but instead to issue a sincere warning: beware! Unlike many industries, the barriers-to-entry for a residential remodeling company are very low. All a person needs is a small knowledge of construction and a beat-up pickup truck, and he is on his/her way, with or without any experience in running a business, dealing with cash flow, or performing quality work on time.

For many people, finishing the basement will be one of the largest investments that they will ever make, second only to the purchase of a home. You can't afford to hire the wrong company. Listed below are a few suggestions on how to hire the right contractor. (You can find more information on this topic here on our website, under references, then choosing the right contractor.)

1. Call on several references, don't just ask for a list.

2. Check the status of their contractor's license and insurance. Copies aren't enough.

3. Avoid selecting a bid that is significantly less expensive than the others. A very low price will end up costing you more.

4. Visit projects completed, and underway, of the contractor in question. Examine firsthand their quality.

5. Look for membership with local agencies, such as the Homebuilder's Association or the Better Business Bureau. Typically, these organizations tend to keep companies accountable. Plus, they often offer assistance for mistreated homeowners.

6. Listen to your instincts, and ask lots of questions. Don't do it if it doesn't feel right.

Interestingly, I have a similar set of questions that I ponder when deciding whether or not to do work for a particular client. There have been times when my gut told me that a particular client would be unrealistic, or otherwise impossible to work with. Sometimes, I have ignored that instinct, and have regretted it. Fortunately, most often I listen.

As scary as all this might sound, there are many fine contractors who are honest and fair. Upscale Downstairs is just one of those. If your homework is properly done, then you shouldn't need to worry. Working with a trustworthy company can be a very rewarding experience, and although it's not stress free, you don't have to get ripped-off when finishing your basement.

Again, if you've had an experience working with a contractor, positive or negative, and you think it could be helpful to other readers, please post a comment here. We don't want any unfair mudslinging, so please avoid using names. Just provide helpful experiences and lessons learned.

Until next blog,

-Cory

The Bloggin' Builder

info@upscaledownstairs.com (upscaleadmin) — Tue, 28 Mar 2006 11:46:56 -0500

The Bloggin' Builder?

Yes, it seems strange to find a builder blogging. But maybe I�m not a stereotypical contractor, either�

***

I am the child of a psychologist and a programmer. At home, fixations and floppies were better understood than fascias. But building was still in my blood, as I later connected with my maternal grandfather, a custom home builder for many years. Growing up, I was constantly creating, often taking cues from my favorite book, Childcraft�s Make and Do. Today, Lego toys still remain an indulgence.

With a passion for laboring with my hands, and an increasing desire to work and interact with people, I enrolled in pre-med classes at Brigham Young University with the plan to become a specialized surgeon. Learning from present doctors, however, I was blind-sided as my eyes were opened to the misery called med school and the literal misfortune known as malpractice. (Not to mention the melancholy of cellular biology.)

At the same time, I was enjoying my part-time job at a local flooring company, where a fascination for the construction industry was built. Measuring new homes for carpet and tile, I learned that the builder, general contractor, general, GC, boss, owner, negotiator, and even �dirty, lying thief� were often the same dude. (And rarely, despite my best price, did that guy want to buy my freize carpet, preferring instead to �use [his] guys.� Still, like life-sized Legos, building homes provoked my appeal.

Around the same time, I met with a trusted friend/liberator who introduced me to the construction management program at BYU. With one check online, viewing classes with titles like �Real Estate Principles and Development� and �Construction Company Operations,� the choice to change careers was crystal clear � I didn�t even need to pray about it! My only fear was the possible let down of my fianc�e, now wife, who was planning on marrying a doctor. Fortunately, it turns out she wasn�t too hip on the whole non-paid, rectal-examining, red-eye/graveyard, hospital internship idea, and she quickly ratified my new deal. In less than 24 hours, I swapped majors and fates, from medicine to construction. I have never looked back since.

Not much later, I found a new job working, or faking, as a handyman for an apartment-management company. I went to Anderson Lumber and bought $68 worth of hand tools, including my first real hammer. After a lot of internet research, I began patching drywall and fixing toilets. My �talent� was still pretty raw at that point; initially it took me hours to do 5-minutes of work. I remember asking the lumber yard if they could cut a 4� x 8� piece of sheetrock into 4 pieces so I could fit it into the back seat of my Honda Corolla. Learning the hard way, I got a lot of experience in multiple trades in a very short time, and eventually could fix most anything that came my way. I even moved up and purchased a �work truck,� a 1987 Nissan Pathfinder with 200k miles (and a blown head gasket as I later learned.)

When I first started this handyman job, I was asked to work as an independent contractor (now I know why), and thereby started my own business without even trying. Making one of the most common contractor marketing mistakes, I gave the company my own last name, calling it �Hogan Remodel & Repair.� Gradually, as I became more experienced, I started doing work for friends and family.

Then one day I started doing work for strangers. At first, I took the jobs that no one else wanted. One of my first real projects was cleaning up an old rental home that had been abused for years. I employed my new wife, where she spent a week just removing old wallpaper. Together, we laid a kitchen floor with self-adhesive vinyl tiles, a mistake I will never make again.

After gaining valuable experience on the �hole� jobs, I gradually started to gain a reputation as a qualified remodeler. I got fully licensed and insured. I added employees, one by one, until we reached over 10. In time, I started and completed some beautiful projects, such as remodeling bathrooms with travertine stone floors, custom mahogany cabinets, and lavish granite countertops. From minor repairs to major renovations, I confidently built a large client base, keeping busy year-round.

At its peak, Hogan Remodel & Repair completed over 100 projects in a year, based upon a steady source of referrals and repeat business. As much as I enjoyed being part of the growth, I was overwhelmed with the never ending responsibility of running and staffing a full-service remodeling company. On top of it all, a demanding government contract added drama to our already overwhelmed residential and commercial work. It was beginning to be too much.

I considered many strategies to the �over-worked, under-paid� problem, including employing my workers as contract installers for big-box stores or fixing and flipping homes. While mulling through some options, I began realizing that success, and simplicity, might come through specialization. The challenge would be to beat my own deterioration.

Meanwhile, basement finishing was one of my favorite remodeling projects. Because there were fewer surprises than most remodels, basement costs were more predictable. Plus, most of the work could be subcontracted, meaning fewer in-house employees and overhead. The biggest challenge would be completing a large project in an occupied home, but having already dealt with �remodeling-fever� many times, I was conscious of the unique customer service requirements necessary to finish basements.

After drafting a business plan and completing a marketing study, it was clear that establishing a new company as Utah�s basement specialist was the answer. The name �Upscale Downstairs� was drafted to promote our new company�s commitment to high quality. This website was launched as one of many steps to convey our professional image, helping to define our commitment to be the best in basement remodels.

In short time, Upscale Downstairs has risen to become the premiere choice for finishing basements. With typically over 15 projects simultaneously running, the company has established a solid base and an excellent reputation. More than half of all of our work comes from referrals. Although I admit we can�t please everyone every time, I�m very proud of our industry-leading focus on customer service. Currently, we operate in both Salt Lake and Utah counties, and we are gradually expanding our services. The future looks bright for Upscale Downstairs.

Since then, the former company Hogan Remodel & Repair has been valued by a business broker at over a quarter of a million dollars. Although that company hasn�t sold, the professional appraisal quantified a journey. I have come a long way since the early handyman era.

***

Now that I�ve introduced myself, it�s time for you to chime in. Please leave your respectful comments here on the blog. Tell me why you think I�m a stereotypical (or atypical) contractor. Tell me what you think of this website. Above all, tell me about your basement finishing questions, frustrations, dreams, and dilemmas. I�ll try and help.

Otherwise, there�s always the LONG version of my story!

-Cory

Intro to the Basement Blog

info@upscaledownstairs.com (upscaleadmin) — Mon, 06 Mar 2006 17:28:49 -0500

Welcome to our basement blog, where we will be adding stories, anecdotes, and lessons learned about finishing basements!