Pro dealers to hone business skills
The ProDealer Industry Summit, sponsored jointly by the National Lumber and Building Material Dealers Association (NLBMDA) and Home Channel News, will explore macroeconomic forces, as well as the everyday running of an LBM business.
One of those business-improvement presentations is “The One Minute Negotiator,” which isn’t geared toward consummating a deal in less than 60 seconds, stressed George Lucas, who will open the general session on Oct. 25. The author, trainer and consultant is focused on a one-minute strategy toward sizing up the other side of a negotiation and choosing the correct approach.
“Most people are fearful of negotiations,” Lucas said. “They think it’s going to damage relationships.” But negotiating skills are more important than ever in the current LBM market, he added.
“Margins are thinner than they’ve ever been, and it’s extremely difficult to win new business based on price alone,” said Lucas, whose client list includes Orgill and Rust-Oleum. “Any attempt that’s price-based is going to get the incumbent to cut their price.”
Knowing the other side’s negotiating style — i.e., collaborative, competitive, accommodating, conflict-avoiding — is always helpful when entering into a deal-making session. But Lucas can offer pointers when recognizance is in short supply. “I try to help people get their mind around a negotiation in a short amount of time,” Lucas said.
The ProDealer Industry Summit will be held Oct. 24 to 26 at the Westin Savannah in Savannah, Ga. Jointly sponsored by Home Channel News and the NLBMDA, the three-day conference will include a dinner banquet, networking events, a golf tournament and educational sessions. For more information, visit prodealer.com.
KB Home reports strong third quarter
KB Home reported third-quarter revenues increased 16% to $424.5 million, compared with $367.3 million in the third quarter of 2011. The company cited growth in the number of homes delivered and a higher average selling price for the increase.
Net income for the quarter ended Aug. 31 totaled $3.3 million, up $12.9 million from a net loss of $9.6 million in the year-earlier quarter.
The company’s home-0building operating income increased to $10.9 million in the current quarter, up from $1.4 million in the year-earlier quarter.
The home builder delivered 1,720 homes, up 7% from the year-earlier quarter, with three of its four home-building regions posting year-over-year increases. The overall average selling price of $245,100 rose by $17,700, or 8%, from $227,400 for the year-earlier quarter.
For the nine months ended Aug. 31, revenues totaled $981.9 million, up 17% from $836.0 million for the year-earlier period. The company’s net loss of $66.7 million improved from the net loss of $192.7 million for the nine months ended Aug. 31, 2011.
Homes delivered increased 9% to 4,160, up from 3,817 in the year-earlier period.
The overall average selling price of $234,100 was up 8% from $217,400 for the corresponding period of 2011.
Home prices continue upward trend
The S&P/Case Shiller Index, a bellwether for the new housing market, reported that all 20 cities that it tracks on its home-price composites recorded positive monthly changes for the third consecutive month. Excluding a slight dip for Detroit last April, the composites are on a four-month roll for home price increases.
The average home price in July 2012 grew by 1.5% for the 10-city composite and by 1.6% for the 20-city composite versus June 2012.
Fifteen of the 20 MSAs and both composites posted better annual returns in July as compared with June 2012. Dallas and Washington, D.C., saw no change in their annual rates; and Cleveland, Detroit and New York saw their rates worsen in July, with respective returns of +0.4%, +6.2% and -2.6%. After nine consecutive months of double-digit annual declines, Atlanta finally improved to a single-digit decline of 9.9%.