1. “ The 2009 Home Improvement Economic Summit” Presented by Dave Yoho Associates The entire contents of this handout material is copyrighted by and is the intellectual property of Dave Yoho Associates. No reproduction is permitted without the express written permission of Dave Yoho Associates.

3. The Industry in Transition

4. Rick Strachan, Executive Director Hanley-Wood [email_address] Rick Strachan serves as Executive Director of Hanley Wood’s Residential Remodeling Group consisting of 12 publications, including Remodeling Magazine and The Replacement Contractor. Since 1992, he has served Hanley Wood, who is one of the top 10 business media firms in the United States. Rick is on the board of Joint Center for Housings Studies Harvard University Remodeling Futures Committee. He is an active participant in the affairs of this industry and has received the President’s award from NARI - The National Association of Remodeling Industries.

5. Resurgent Remodeling A brighter outlook through 2015 Hanley Wood’s Remodeling Network Cover the Market

6. What the experts are saying… The Market Kermit Baker Director of the Remodeling Futures Program Joint Center for Housing Studies at Harvard University Cambridge, MA

14. Growth Drivers Growth Drivers

19. Average age of interior building products Source: NAHB, Facts and Figures Dishwasher, disposal, compactor: 10 years Cabinets: 15 - 20 years Exhaust fan: 20 years Granite: 20+ years Laminate: 10 - 15 years Growth Drivers

20. Average age of exterior building products Sealer, silicone, waxes: 1 - 5 yrs Screen: 25 - 50 yrs Cement: 50 yrs Exposed exterior: 25 - 30 yrs Poured footing and foundation: 200 yrs Growth Drivers Source: NAHB, Facts and Figures

24. The bright side… Sal Alfano Editorial Director, Remodeling Group Hanley Wood Business Media Washington, DC Growth Drivers

26. What the experts are saying… Kermit Baker Director of the Remodeling Futures Program Joint Center for Housing Studies at Harvard University Cambridge, MA Remodeling Trends

33. What the industry is saying… Remodeling Trends: Projects Tom Kelly President, CEO and Owner Neil Kelly Design, Build, Remodeling Bend, OR

40. Independent Contractor Status

41. D.S. Berenson, Esquire Johanson Berenson LLP [email_address] Mr. Berenson serves as general and special counsel to contractors, remodeling industry manufacturers, trade associations, banks and consumer lenders. His experience includes the Office of Chief Counsel of the Internal Revenue Service and the Securities and Exchange Commission. A frequent lecturer and author, Mr. Berenson was one of nine attorneys honored in the 2005 Forbes Magazine “Special Tribute to America's Best Lawyers”. He is the author of Pratt’s State Law and Regulation of Closed-End Credit, a six-volume treatise of installment sale practices.

46. H.R. 6111 Employee Misclassification Prevention Act Requires any office, administration or division of the Department of Labor to report any misclassification of an employee by an employer that it discovers to the Department’s Employment Standards Administration (ESA). Authorizes the ESA to report such information to the Internal Revenue Service (IRS).

47. H.R. 6111 Employee Misclassification Prevention Act To Acquire Review of the Act - - Click onto: http:// www.govtrack.us /congress/bill.xpd?bill=h110-6111&tab=summary

48. General Tax Issues - - 2009

49. Thomas Cox, Managing Principle Thompson Greenspon - CPA [email_address] Thomas E. Cox, CPA, is the managing principle of Thompson Greenspon, Fairfax, VA. He acts as the firm’s liaison with the IRS on ruling requests, audits and other compliance areas. Prior to joining Thompson Greenspon in 1978, Tom was an appeals officer with the appellate division of the IRS and was an instructor for their advanced corporate and partnership tax courses. His experience includes tax planning for corporate reorganizations, workouts, liquidations, partnerships, compensation planning and individual and business tax planning. * This section also features D.S. Berenson, Esquire

50. Energy Tax Credits and Marketing Them

51. Nils Peterman National Fenestration Rating Council [email_address] Nils Petermann is a member of the National Fenestration Rating Council. He leads the Alliance to Save Energy’s efforts to promote energy-efficient fenestration as project manager for the Efficient Windows Collaborative, a collective project between the Alliance, the University of Minnesota, Lawrence Berkeley National Laboratory and AZS Consulting. Nils performs analysis and promotion of strategies to advance energy efficiency in the fenestration market, including utility and tax incentives, sustainable building standards and end-user education. * This section also features D.S. Berenson, Esquire and Tom Cox, CPA

56. Lead Paint Issues

57. Paul Toub, V.P. of Marketing Kachina Lead Paint Solutions LLC info@kachinacontractorsolutions.com Paul will review the amended Toxic Substances Control Act (TSCA) and its impact on the remodeling industry. As Marketing Director of Anthony Home Improvements, Inc. and Housecrafters (installers for 58 of The Home Depot stores), he understands TSCA and Lead Safe Work Practices as an industry insider. Paul’s extensive marketing and professional announcing experience make him an easy-to-understand and enjoyable presenter. * This section also features D.S. Berenson, Esquire

58. APRIL 2008 - The Toxic Substances Control Act (TSCA) was amended Significantly increased the burden and impact on our industry First change happened 12/22/2008

59. OLD

60. NEW

61. Give to the owners of any pre-1978 home prior to beginning work

62. Get signed acknowledgment Save for 6 years

63.  NON-COMPLIANCE? Criminal fines & imprisonment for up to one year/violation Civil Penalties Up to $32,500 per violation / per day Overseen by EPA & State Agencies

64.  WHAT KIND OF WORK? Removal of painted surfaces or painted components “ Renovation” = Any work that disturbs a painted surface Surface preparation on painted surfaces Sanding and scraping Other activities that may generate paint dust

65.  WHAT KIND OF WORK? Removal of large structures that may have paint on them Walls and ceilings Large surface re-plastering Major re-plumbing Weatherization projects Cutting holes in painted surfaces to blow-in insulation or gain access to attics

66.  WHAT KIND OF WORK? Window replacement Window repair (if painted)

68.  EXCLUSIONS 1978 or newer housing Minor work disrupts 6 square feet or less of painted surfaces per room (interior) 20 square feet or less (exterior) BE CAREFUL ABOUT THIS EXCLUSION

69. Do not rely on these exclusions if a child, age 6 or younger, lives or regularly visits the dwelling

71. APRIL 22 , 2010 Pamphlet + test for lead paint (pre ’78 rule still applies) If positive – lead safe work practices (LSWP)

72. EXCEPTIONS Newer construction Lead-free certified job sites Test shows no lead paint or other surface coatings that contain lead Not in excess of 1.0 mg / sq. cm (or 0.5% by weight)

74. Why owner would opt-out? $$$$$$ Can you opt-out? Yes. Refuse the work!

78. The Opportunity to Acquire Other Companies

79. David Moore, Chairman & CEO Moore Holdings [email_address] David Moore is Chairman/CEO of Moore Holdings and Chairman of Sonostar Ventures which invest in and manage a variety of private companies. He has held the following positions: CEO, Register.com (NASDAQ); Board Member, Network Solutions; and CBS Marketwatch.com (NASDAQ); Vice Chairman, Marquis Jet; Chairman, U.S. Home Systems; Chairman, Garden State Brickface and Renewal by Andersen of NY and NJ. He has served on the Boards of ten different companies, six of them public (two NYSE, four NASDAQ). David graduated magna cum laude from Amherst College in 1978 and has an MBA from Harvard University. * This section also features D.S. Berenson, Esquire

80. W. Hobson Hogan, Senior Associate FMI [email_address] Hobson Hogan is a member of FMI’s investment banking practice. He specializes in building products manufacturers and distributors, as well as other construction industry firms, focusing on mergers and acquisitions, ownership transfer issues and strategy development. He has an extensive background in finance, strategic planning, consulting and engineering. His experience provides him with an understanding of difficult organizational, operational and strategic issues facing the building and construction industry.

81. Investment Banking Drivers of Salability and Value

84. Value Drivers * Personnel Process Product Profit Projections Pricing of Debt/Equity “ 6P Framework” Company Side Numbers Side

93. Rich Nelson, President & Co-Founder PCM Construction [email_address] Rich Nelson is President and co-founder of PCM Construction. Established in 1992 PCM Construction, Inc and its Subsidiaries (PCM) provide facilities maintenance services to commercial properties in the Washington/Baltimore area. The services that PCM provides are commercial asphalt, concrete, line-striping, painting, flooring, electrical, mechanical/HVAC, plumbing, powerwashing, and waterproofing/ restoration services. PCM also has two separate general contracting divisions.

97. Mark Watts, CPA, CVA Cocke, Szpanka & Taylor [email_address] Mark Watts has over 25 years experience with an emphasis on taxation; planning, preparation, and compliance. He is a partner, advising closely-held businesses and owners, along with high net worth individuals. He is a member of the National Association of Certified Valuation Analysts and has actively participated in, or advised clients on matters of mergers and acquisitions.

100. S.F.I. Programs – The Promise and the Problems

101. Jim Hall, President TEMO, Inc. [email_address] Jim Hall is the president of TEMO, Inc. For 22 years he has lent his expertise and management skills to the growth of this dynamic company. He is an integral part of TEMO’s management team and has helped guide the growth and success of America’s thermal sunroom manufacturer leader. Jim has served TEMO as its CPA, company controller and general manager of operations. He also contributes his leadership to TEMO’s national dealer network in assisting their business development.

105. Ray Melani, Co-Owner Melani Brothers [email_address] Ray and his brother Ron are the founders, co-owners and managers of a legendary company that started with two guys and a truck (one canvassed and sold; one installed and collected). They grew into the largest marketers of sunrooms in the US, installing as many as 600 per year. They have a branch office in Richmond, VA. Melani Brothers was an early pioneer in the use of S.F.I. relationships and used this method as a leverage to build their business and establish their brand.

106. Case Study: Sears S.F.I. Program Subject: AMRE ($250 Million S.F.I.) Presented by David Moore, Chairman & CEO Moore Holdings

112. Financing Issues

113. Jim Borschow, President First Consumer Credit, Inc. [email_address] Mr. Borschow has been involved in home improvement consumer finance for most of his adult life with over 30 years of experience. As president of FCC Finance, Mr. Borschow utilizes his extensive expertise in home improvement lending to create opportunities for bringing financial transactions to completion. He could be described as a traditionalist, dedicated to understanding the business of his customers and committed to pursuing profitable business opportunities.

118. The Economic and Financial Outlook

119. Robert Genetski, Ph.D. Classic Principles rgenetski@classicalprinciples.com Dr. Robert Genetski is one of the nation’s premier interest rate forecasters and investment advisors, providing insights to economic, financial and investment matters. In the early 1980s, he correctly forecast that tax cuts would end the nation’s economic malaise by boosting productivity, reducing inflation and interest rates. Dr. Genetski has served as Senior Vice President and Chief Economist for a major Midwest bank and headed asset management, investment research and investment banking operations. He has taught economics at several major university and served on numerous boards of directors.

120. Modern Economic Principles WSJ January 6, 2009 As layoffs and store closures grip the U.S., families hope frugality will see them through. But thriftiness is a major reason the downturn may not soon end. Frugal Families Aggravate Nation’s Economic Woes

142. Growing Your Business in a Changing Economy

143. Brian Smith, Senior Account Executive Dave Yoho Associates [email_address] Joined Dave Yoho Associates as part of a “turn-around team” after almost 20 years experience in Sales Management with some of the largest and most successful home improvement retailers in the US. He now practices as a Senior Account Executive working on a broad range of consulting assignments throughout the home improvement/remodeling industry. He has developed programs for large and mid-size home improvement companies covering almost all products which are sold directly to home owners.

146. A “90 DAY CASE STUDY” CASE STUDY WDT-41 Projected annual volume (based on annual average by month) as of June 1st - $9,283,817 Projected annual volume as of September 1st - $11,245,262 SALES ISSUES Prior @90 Days Increase Demo rate - vs. leads issued 68% 75% 11.5% 1st call close rate - vs. leads issued 10% 19% 90% 1st call close rate - vs. demos 17% 30% 76% Close rate (2nd call, etc.) - to leads issued 10% 11% 10% Close rate (2nd call, etc.) to demos 17% 18% .06% Average net sales per month $812,040 $1,026,437 $214,393

147. * Increased earnings (4.05% decreased marketing costs) - - $123,172.44 A “90 DAY CASE STUDY” CASE STUDY WDT-41 MARKETING ISSUES Prior @90 DAYS INCREASE DECREASE Marketing Costs 17.01% 12.96% 4.05%* Efficiency Rating $2,351 $2,673 $322 Average Leads Issued Per Mo. 408 386 24

148. Joe Talmon, President Larmco Windows – Home Solutions [email_address] Joe Talmon is President of Larmco Windows – Home Solutions an Ohio based company, he is a 22 year veteran of the window and home improvement industry. He transformed a small regional wholesale window manufacturer into a respected retailer of high end replacement windows, siding and other products. His passion is quickly uncovered when you hear him speak about one call selling, sales training, and working shows and events.

149. We will continually be faced with many great opportunities that will be brilliantly disguised as problems or challenges. When we move the dirt away and dig past what we think we see we will discover those great opportunities and the profits they provide.

150. In 2007 we recognized that the landscape in our market looked confusing, different, more challenging and not at all like what we wanted to see. The foreclosure crisis had hit Ohio in a big way and it seemed the one thing everyone wanted to talk about was foreclosure. A competitor who had not existed 5 years earlier was now spending over $100,000 per month in radio and TV advertising according to a competitive media research study. We suddenly realized we were no longer the Big Dog in town that we had thought we were.

151. By mid 2007 I made a discovery The need to change and the want to change had little to do with changing the organization. It didn't matter how much we talked about change or agreed to change, something was missing. In the end the single key ingredient turned out to be discipline the discipline to change.

152. I decided we had to do 6 things 1.We had to stop toying with canvassing and learn to do it well 2. Show and event marketing had to be taken to a new dimension 3. Create a serious contact program for our existing customer base 4. Increase sales training to work with new lead sources 5. Tighten up lead management systems 6. Introduce new products

154. It started in a small town an hour north of our primary market at the Marion County Popcorn Festival. We took our concept on the road where no one really knew us and decided to be over the top, be ridiculously aggressive and see what happens. In a few long days, well off the beaten path, down the street nearly two blocks, then down another street nearly to the end of that section of the street we found our booth. If location is everything we had nothing. We set 57 appointments in 4 not so busy days. From that event on everything changed for us.

155. Today we have slot machines in our show and event booths and we just set a new company record by using our new and improved approach setting 203 appointments in 4 1/2 days at our home and garden show. We have added some new products – and – with the help of Terry Ferraro, E-Shield attic insulation is booming for us. We have zero service, easy installation, and great profit. We have even started to take a “window no demo” and turn it into an “insulation sales”.

156. The past customer contact program was a home run. We discovered far less service than we thought we would. We found that nearly everyone loves us (nearly everyone) And while we believed it to be true, we rediscovered that selling to our previous customers was 10 times easier than selling to anyone else. We now make QC calls to every completed installation and every completed service. We end every call with a scripted line. "Before I let you go I'm excited to tell you about a new product."

157. We are now selling new work for the first time to people within one week of a completed service or completed installation. As a result of the decision to add discipline change began to happen. By the end of 2008 our central Ohio region had overtaken our numbers from 2007 - - More importantly our profits grew. I see 2009 being an up year in both sales and profits over 2008. I believe that the future will offer us amazing opportunities that will be brilliantly disguised as problems or challenges.

158. Rick Wuest, Owner & President Thompson Creek Window Company [email_address] Rick Wuest is the Owner and President of Thompson Creek Window Company. Thompson Creek’s headquarters is in Landover MD, and services customers in Maryland, DC, and Northern Virginia. The company is a specialty remodeler marketing and installing widows, siding, entry doors, and gutter systems. The company manufactures their own replacement windows and Gutter Systems.

159. Sal Ferro, President & CEO Alure Home Improvement [email_address] Salvatore (Sal) Ferro is President and CEO of Alure Home Improvement of East Meadow, NY, a full service home improvement company with revenues of over $45 million annually. Starting as a Production Manager a scant 20 years ago, he enabled his company to grow from a small painting contractor to the successful multi-product giant of today. He has received numerous rewards from both industry and consumer groups. His company has participated six times on the ABC Extreme Home Makeover show and most notably, his company acquires over 40% of their business from referral leads.

160. Tim Musch, Business Development Dir. MarketSharp Software [email_address] Tim Musch is Director of Business Development for MarketSharp Software located in Lacrosse, WI. Prior to that, he spent 15 years gaining experience in a family owned remodeling company in Central Wisconsin. MarketSharp has supplied computerized marketing solutions to over 2000 of the country’s most successful remodelers. Tim has spent the last 18 years developing and refining computerized database marketing systems for the remodeling industry.

161. Efficiency!

162. Grow Your Business This Year By 34 % While... Only Getting 6 % Better At What You Do!

163. A Quick Lesson In Knowing Your Numbers... UPS trucks drove 2.5 billion miles last year, but the company says it’s research found by doing ONE THING saved driving 28,541,472 million miles, and three million gallons of fuel. Any Idea What It Is?

164. What Are YOUR Company’s Left Turns?

165. The Lead (inquiry) The Call (inbound/outbound) Pre-Approach Activities Presentation Systematic Lead Follow-up (asset recovery) Repeat/Referral Strategies (customer replication) Leverage Your Business’ FLEX Points!

166. Great Brainstorming Tool! It All Starts Here!

167. Planning Worksheet…

168. Brainstorm Meeting…

169. Let’s Trade… = XYZ Windows 1300 Main Street Your Town, USA 800-555-1212 Michelle Nowlan General Manager

171. “… the best way to put distance between you and the crowd, is to do an outstanding job with information. How you gather , manage , and use information will determine whether you win or lose.“ - Bill Gates

172. Report Example…

173. Marketing Savvy

174. ADVERTISING CASE HISTORY (NEWSPAPER) #170NP SUBJECT: Large window replacement retailer, $20MM annual revenue – major eastern city. GOAL: Contain/reduce marketing costs (13% in 2007). MAY 2007 meeting with competing major newspapers (reps) (together in conference room). Each given purchase order for $20M advertising (1 mo). Each given instructions to use $20M to produce as much advertising as possible for one month. Each informed: publication producing most inquiries (leads) would receive a contract for balance of the year.

179. ADVERTISING CASE HISTORY (TELEVISION) #194TV SUBJECT : Suburban company, third level market – siding, windows, roofing, heating, annual volume $13MM GOAL : Television advertising in a market supported by 6 channels – per inquiry MARKET DEFINITION : 4MM population extending 75 to 90 miles from company base. Four stations affiliated with major networks, 2 independent METHOD : All contracts based on per inquiry, space available and run of schedule COST : Per inquiry – $50-$80 each CONTROL : Shared 800 numbers with control check, reviewed monthly THE PLUS : During January/February (normally slow for stations) may get 10-20 runs per day THE MINUS : During elections, where majority of the time is booked, fewer runs

180. Discussion on

181. Ron Sherman, President Ron Sherman Advertising [email_address] Ron Sherman is the President of a multi-million dollar ad agency headquartered in Little Rock, Arkansas. He specializes in producing programs for the home improvement industry. He acts as producer and spokesperson for many of those in the room today. In any given time, throughout the US, you can count on running into a Ron Sherman production television program. He has dedicated his business and his modern production studio to the art of – producing leads.

190. Internet Marketing

191. Jim Cory, Editor Replacement Contractor Magazine [email_address] Jim Cory is the editor of Replacement Contractor, a HanleyWood publication for roofing, siding and window contractors. Prior to the launch of Replacement Contractor, in the fall of 2002, he was Senior Editor at Remodeling, another HanleyWood publication. He currently contributes to both Remodeling and Replacement Contractor as well as the respective Web sites. He organizes the Replacement Contractor Executive Conference, an annual event focusing on sales and marketing in the home improvement industry.

192. Tom Audette, Business Development Dir. Three Deep Marketing [email_address] Tom Audette is the Business Development Director for Three Deep Marketing; a digital marketing agency that does search engine optimization, paid search management and email marketing. He has over 17 years of direct industry experience as a sales rep, sales manager, marketing manager, and business executive and as VP of Marketing for a large home improvement company where he generated over 30% of revenues via the Internet with marketing costs under 10%.

193. The Death Of Old Media Yellow Page advertising in 2008 dipped below their 1998 levels. In the next 4 years, ad spending will drop an additional 39%. (Media Futurist)

194. The Death Of Old Media Newspapers have lost 23% of their revenues since 2005 and circulation is now at its lowest point in 62 years. (WSJ)

195. The Death Of Old Media Average DVR user sees only 46% of the commercials in the programs they watch. 70% of advertisers now feel the DVR will “reduce or destroy” the 30 second commercial.

200. The Growth Of Local Search FACT: Google has over 75% market share in online search If your customers can’t find you there…you aren’t even in the game!

201. Continuous Improvement Fix Every Sell Cycle Inefficiency Specific Landing Page & Lead Capture Internet Lead Sales Appointment Deal Closed 50% Appointment Set Rates 30% Sales Close Rates 15% Referral Rates In a down economy, you must fix every revenue gap in your selling cycle! A B C

202. Jesse Cory, CEO OHM Creative Group jesse@ohmdigital.com Jesse Cory is the CEO of Ohm Creative Group, a Marketing and Public Relations Firm. With a lifetime of achievements in Motion Pictures, New York’s Fashion Industry and Digital Marketing, Jesse has become an expert at bringing all his talents together to manage a diverse client base, including CBS Radio & Detroit Public Television. Utilizing his vast professional experience to turn results and profits for numerous clients.

209. Todd Bairstow, Founding Partner Keyword Advisors tbairstow@keywordadvisors.com Todd Bairstow is a Founding Partner at Keyword Advisors, a lead generation company specializing in home improvement leads and appointments. They currently work with large home improvement brands in the gutter protection and one day bath categories, their programs have generated tens of thousands of high quality home improvement leads and appointments via the Internet in the last 3 years. Todd has a background as a copywriter and associate creative director at Arnold Worldwide, one of the largest and most successful ad agencies in the US.

210. Elements of Today’s Internet Lead Generation Search Engine Optimization Paid Search Advertising Third Party Online Lead Companies

211. Anatomy of A Search Results Page natural search results paid search results

215. Travis Jenkins, President All-Tex Exteriors [email_address] Travis Jenkins is President of All-Tex Exteriors, Houston, TX. They specialize in siding, windows, sunrooms and roofing. By redirecting the marketing efforts of his company, he made a transition from the largest showroom in Houston to an Internet marketing lead generation company which now provides 10 salespeople with leads from this source. Only 30% are “pay-per-click”, 70% are from organic search and his web optimization.

221. Diversity

222. Sal Alfano, Editorial Director Hanley Wood Business Media [email_address] Sal Alfano is Editorial Director of a group of Hanley Wood Business Media magazines that includes JLC, Remodeling, Upscale Remodeling, Coastal Contractor, Professional Deck Builder, and Replacement Contractor. He brings “hands-on” experience to his editorial role. For 20 years he managed his own design/build remodeling company in Vermont. He has been active in the residential/construction industry for more than 35 years.

223. Todd Miller, President Classic Metal Roofing Systems [email_address] Todd Miller is President of Classic Metal Roofing Systems, Piqua, OH, a leading manufacturer of residential metal roofing products, using pre-painted steel, aluminum, copper and zinc. The company stays on the leading edge of coatings, metal forming, and environmental technology. Classic Metal Roofing Systems is active in educating the public as to the benefits of metal roofing. Todd is a Board Member of the Metal Roofing Alliance (MRA) and Metal Construction Association (MCA) and chairs the Governmental Relations Committee.

226. Chris Ripley, Owner Smarter Coating [email_address] Chris has been involved in the Home Improvement Industry for eleven years, eight as a manufacturer, with dealers from coast to coast covering 26 states, Chris has a birds eye view of consumer trends. As a member of the Society of Industry Leaders, private equity firms and Hedge Fund managers have relied on Chris's insight to plan multi-million dollar trading strategies in the remodeling field. Chris owns Smarter Coating a Boston based coatings distributer.

230. Terry Ferraro, President & CEO Pro Materials Direct [email_address] Terry Ferraro is President and CEO of Pro Materials Direct a distributor of specialty products to home improvement companies. They currently serve over 40% of Replacement Contractors’ (magazine) top 100. Since 1975, when he first joined Alside, he has dedicated his career to the industry. His distribution company, American Wholesale Supply, has branches in 7 southeastern states. He is a founder and director of EBank, a founder of Magnolia Windows and Gutter Protection products of America.

232. Every where we turn energy efficiency is right in front of us

233. Even this month’s National Geographic Magazine features saving energy on it’s cover.

234. Today entire magazines are dedicated to Energy Smart Homes!

235. How are Americans spending their home improvement budgets?

236. Americans are spending 42% of their home-improvement dollars on Green Products and Energy Efficiency.

237. A growing trend across the country is that homes must under go an energy performance audit before they can be placed on the market.

239. Marketing Case Studies Presented by Brian Smith Senior Account Executive Dave Yoho Associates

240. Case Study 3871C Canvassing Program Instituted Location : West Coast Products Sold : Roofing, Windows, Textured Coating Annual Revenue (Volume) : $9.8 million Average Contract Price : $14,353 Number of Sales People : 10 Major Lead Sources (’07) : Radio (1), direct mail and print (2), Events (3) Canvassing Program Instituted : Nov 2007 Number of Canvassers (currently) : 6

241. Case Study 3871C Canvassing Program Instituted Daily Schedule : 11AM – 5:30PM including (2) 15 min breaks & 30 minute lunch Canvasser Compensation : $20 per hour, 1% of net business Number of leads : 1.36 per person per hour, 41 per day Issue rate : 54% Presentation (Demo) Rate : 60% Close rate to issue : 16% Net Close : 14% Retention : 90+% Cost of Canvas Program : (fully loaded) 9% (current) Cost per Issued Lead : $76

242. Case Study 3871C Canvassing Program Instituted Details : Leads are called into call center from customers’ homes – canvassers (average age) over 40. Most have some sales background – canvassers work with a presentation book to sell the appointment (not the job). Canvassers carry mini presentation books, they are scripted and prepared to overcome objections to sell time and attention based on visual observations of problems. They operate in predetermined (upscale) neighborhoods, i.e. previous completed jobs and demographics. Each lead is called into the call center (and scheduled) from the customer’s home. Concerns: Issue rate (54%) – presentation (demo) rate 60%. The program has become their number one lead source. It created a backlog of leads, which were often set too far out. The latter reduced both the (set) and (presentation) rate.

243. Case Study EC 77 (90 day turn around) Location: Mid Atlantic Products: Windows, Siding, Sunrooms, Gutter Protection, One day bath remodeling Company Volume: 12 million Marketing Efficiencies: .25 lead per hour written; .11 appointment per hour and 19% issue rate to the sales department Fully Loaded Marketing Cost: 35%

244. Case Study EC 77 (90 day turn around) Evaluation: Company was a one source lead generator. They relied on sweepstakes at shows, on tv, internet etc… to generate all inquiries causing an enormous amount of leads and an enormous amount people to process those leads. It took 2 data entry people, 2 managers, 39 call center operators and 5 confirmers to issue 40 appointments per day. Company was severely understaffed in the sales department based on number of new inquiries.

245. Case Study EC 77 (90 day turn around) Solution: Redirect efforts to face to face appointment setting from the event or door called into a confirmer on the spot and eliminate the sweepstakes approach from all other sources. Reduce call center staff to 9, 1 manager, 1 supervisor, 1 data entry and 2 confirmers. Results: 14.9% reduced marketing cost .39 set appointment per hour; 32% issue rate, net savings $910,000 annually. Current Concerns: Sales department is still severely understaffed which is preventing a higher issue rate.

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