house-building.com NEWSLETTER
#215
New House Building: Money Saving, Convenience and Healthy House Tips
James Todd.
May 2003
Happy Memorial Day
Beginning with this edition, newsletters
will now be archived
online at: http://www.house-building.com/newsletters/newsletters.html
CONTENTS:
- What is Energy Star and how can it save you money?
- BoneYards are not Just for Canines.
Guest article, by Chris McMinn, Professional
Cost Analyst
- Useful Links
- Thought for the Day
- Subscription Information
Please forward this newsletter to anyone whom
you think may be interested!
1. Energy Star
ENERGY STAR is a government-backed program helping businesses and individuals
protect the environment through superior energy efficiency. Last year
alone, Americans, with the help of ENERGY STAR, saved enough energy to
power 10 million homes and avoid greenhouse gas emissions from 12 million
cars - all while saving $6 billion.
However when it comes to building your new home, not only can
Energy Star appliances save you money by lowering your utilities bills
for years to come, but the Energy Star program can save you money now —today— on
the purchase of new appliance. Many manufacturers, partnering with the
government’s Energy Star program offer generous rebates for the
purchase of many different types of appliances. If you go to the following
page on the Energy Star website and enter you zip code, the available
rebates will be displayed.
http://www.energystar.gov/index.cfm?fuseaction=rebate.rebate_locator
In addition to the Energy Star program, most local electric and gas utilities
offer rebates for more energy efficient appliances. Unfortunately there
is no ONE place you can go to find these. You will have to do some research
on the Internet for your own local utility— and perhaps even make
a phone call.
For example, here is one website which covers the State of California.
http://www.consumerenergycenter.org/rebate/index.php
If you search only under the category of residential rebates there are
212 at the time this newsletter is being written.
Every state does not have such a website, but with a little work, you
should be able to find a website for your State or utility company that
lists available rebate programs.
Lastly here is another website that lists rebates for alternative energy
sources. Many of these are far afield for a conventional home but you
may find something of interest
http://www.aapspower.com/energyguides1.html
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2. Bone Yards are not Just
for Canines
This article is excerpted
from one of Mr. Chris McMinn’s books. McMinn & Associates
are professional cost analysts and consultants. They
review and analyze a large range of residential and commercial
construction projects, applying the same methods and
techniques of cost engineering to residential construction
projects as they do for their commercial customers.
If you are looking for a professional cost consultant, we encourage
you to contact Chris.
If you are looking for written Guide to many of the same issues Chris
points out, we encourage you to take a look at the House Building Guide.
Continued from April… (Click or paste
link below to read April’s)
http://www.house-building.com/newsletters/mechanic-lien-0403.html
Rather than fix your sights on an exact make of door/window/appliance
or whatever, be willing to accommodate some alternatives.
Experience teaches that most manufacturers within a given
price range tend to produce similar products, even as they
work very hard to try and convince you, the consumer, that
their product is absolutely unique and far better than any
thing else on the market.
Being flexible within certain boundaries
is essential if you wish to be a
successful "boneyarder." Yes,
you can hang on for a particular
make/style, but if that's your final
decision, be prepared
to look for a l-o-n-g time. On the other hand, once you realize that
products by different manufacturers may look almost identical and will
make no significant difference to your finished project, you have grasped
one of the key elements of discount buying.
Naturally, you will need to study the contents of each boneyard,
making a note of the manufacturer, style, hardware and so
forth. But when
you find a really close match, or can place one window on a landing,
and another in the bathroom, clinch the deal with cash. Make an offer
at around 20% of the new price. If you don't know what windows/doors/appliances
and fixtures cost new, go back to a regular lumber yard and do some
more homework. You need a clear idea of what that unit would sell for "retail." Before
you shake on a price, enquire about warranties. Usually the seller
will honor the manufacturer's guarantee, but sometimes the products
will be sold in "as is" condition. This requires some thought.
Ask more questions like: is this product still being manufactured?
(usually the answer is no). Are parts available? How do I get it serviced?
But ask these questions after you agree on a price. If you sound too
reluctant, or too exacting up front, the price will go up. Try to put
yourself in the shoes of the seller. He (or she) has products they
really want to sell. The quicker and easier they can do that, the better.
Present yourself as an easy customer up front, and you'll get better
prices. Then make discreet further enquiries about all the other items
just mentioned.
Over the years I have never had any problems with warranty
issues or parts availability. In fact, I bought a whole house
load of windows
many years ago from a reputable builder's yard, (and paid full price
for them), only to be told a few months later the manufacturer filed
bankruptcy and the entire plant was liquidated—no parts, service
or warranty. That's why, when you begin to shop the boneyards, stick
with established, reputable businesses. They want you as a repeat customer;
they want to sell off their surplus stock, plus they want to build
an expanding marketing base, which includes good relationships, service
and so on.
If you get stuck with repairs or problems, go back to the original
manufacturer. Most of the time they will have a representative in your
area who will go out of his way to provide you with service. This is
why it will help you enormously to research the products you need in
advance. Make sure you find out how long different manufacturers have
been in business. Avoid new start-ups and local operations with short
business histories. At the same time, if you have a local manufacturer
in your area, make sure you pay them a visit. They will have an excellent
boneyard.
Numerous lumber yards and wood related manufacturing facilities
can be found within thirty miles of where I live. I've visited
them all
and found wonderful deals—all sorts of good stuff just sitting
in their yards: plywood, lumber, beams, trusses... They practically
fell over me when I asked if I could take some of that stuff off their
hands.
Another point to consider: the best time to shop boneyards is when
construction in your area is at an all time low. Things get very quiet
around Christmas time and January. Business owners are looking at bills,
taxes, and a stagnant inventory. In you come with cash. They will do
anything to see at least some sales to cover that crushing weight of
overhead. But, if you turn up in the middle of the summer boom, or
whenever construction really cranks in your area, don't expect red
carpet treatment. Again, plan ahead. Take full advantage of local economic
cycles.
How many building suppliers have boneyards? Just about all of them.
They may call it surplus, over stock, returns, rejects, obsolete, but
you can find this material everywhere: roofing companies, masonry yards,
fireplace manufacturers, tile stores, paint suppliers, plumbing wholesalers...
practically anything you can think of will end up somewhere in a boneyard.
You will find more material in the strictly wholesale companies than
in those stores whose primary source of revenue is retail sales. Geared
as they are for consumers, they usually handle returns and overstocks
far more effectively than the mass merchandisers of specialty products.
So this is where you need to look. Find the biggest wholesale plumbing
supply warehouse in town. Walk into their yard and ask them if they
have surplus, leftover stock they cannot sell. That's where you find
the twenty five dollar tubs and $200 dollar Jacuzzis.
It takes time to develop a "feel" for boneyard
shopping. For many of you, the idea will be brand new. But
don't be shy. Those
suppliers want to shift that material; they'll take cash and be pleased
you arrived. You in turn will save a lot of money.
The list that follows includes the most commonly available building
products found in boneyards. Start with your local yellow pages and
check them all out. I've bought material from every one of my local
suppliers in the areas specified. The most I paid was about 60% of
normal building supply yard's prices (for appliances, lumber and hardware).
On average, I bought the majority of these supplies at something like
30% of their original cost.
COMMON BONEYARD MATERIALS:
As you search around, you may locate other boneyards.
I've bought structural steel (occasionally) but this
tends to be a specialized item. I've sometimes found
great deals on pre-mixed concrete, but only because a
price war was going on, or I happened to call when someone
had a batch of concrete previously ordered, and then
cancelled. As long as you grasp the essential principle:
that a vast array of building material will be sold at
tremendous discount prices, you know enough to find out
where it is. There are many other sources we haven't
begun to explore, but boneyards represent a reliable,
renewable resource. They work, and deliver consistent
results. Do your homework well: define what you need
and allow plenty of time to search for specific products.
When you find a great deal—keep it quiet.
One other consideration, when it comes time to look for
floor coverings. You will soon find yourself sifting
through remnant sales. Sometimes you can find good prices,
but I've had more success with the large carpet merchants.
Find the biggest one you can in your area, or even in
a nearby city, then ask them if they have any special
purchases, one-of-a-kind rolls, odd dye lots, cancellations...
Sometimes you have to be persistent. Try to work with
just one salesperson and get to know them. I regularly
locate new carpet for between $5 and $10 per yard, sometimes
extremely good material, simply by regularly calling
and checking with one particular contact I have. Get
the lowest quote you can find, then call the next carpet
company and tell them you're looking at a purchase of
so much a square yard. Do they have anything that can
beat it? Carpet sellers keep far more stock on hand than
they may display or post prices on. Sometimes a motivated
buyer with an enticing offer will persuade them to offer
you those "boneyard specials" they keep for
their favorite customers, which could be you.
Copyright © 2003 C. S. McMinn
3.
Useful
Links
The
following
are
useful
links
relating
to
the
housing
industry
may
be
of
interest.
U.S Governments Energy Star Program
http://www.energystar.gov
Tauton Publishing – This company publishes
Fine Home Building Magazine. In addition it has many other related
guides and links
on its website that may be of help when building you new home
http://www.taunton.com/index.asp
B4Ubuild – This site has a
very detailed residential construction timeline. Although it is very
thorough, it is also quite overwhelming
unless you build houses for a living. That is why we continue to
recommend that you use a builder, and save money by using some of
the tips in the House Building Building Guide.
http://www.b4ubuild.com/resources/schedule/6kproj.shtml
4. Thought For The Day - Courage
Courage is resistance to fear, mastery of fear—not absence
of fear.
---Mark Twain
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