2012 06-07 nahb leading suppliers council - start-up kit


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  • Homeowner mindset - better conditions them to understand the value of making energy efficient upgrades beyond the scope of their remodeling project.
  • 2012 06-07 nahb leading suppliers council - start-up kit

    1. 1. Needs & Motivations of Remodelers for Adding Energy Efficiency Amber Wood Manager, Energy Programs NAHB Leading Suppliers Council June 7, 2012Driving Innovation in Housing Technology
    2. 2. Building America Private/public R&D partnership sponsored by DOE Energy-efficient solutions for new and existing housing  Technologies/Systems  Whole-House Test Homes  Quality Processes
    3. 3. Needs & Motivations of Remodelers Current remodeling industry Role of energy efficiency Identify the gaps and barriers Quantify and prioritize needs to increase sales & projects involving improving home energy efficiency 3
    4. 4. Remodelers’ View of CurrentIndustry & Energy Efficiency(initial set of focus groups) 4
    5. 5. Current Remodeling Industry  The economic climate has shifted greater to focus to remodeling  More consumers are staying in their homes  Many builders are turning to remodeling work  Competitive, price sensitive market due to  Lending restrictions  Lack of appraisal value on energy efficient upgrades  Flood of individuals into the remodeling arena 5
    6. 6. Current Industry (cont.) Qualified remodelers strive to differentiate themselves  Convey to the consumer the value of an experienced, qualified remodeler  Position the remodeler as the expert & serve to build trust and confidence among consumers 6
    7. 7. “This is the way we build”Believe energy efficient upgrades are part of “doing things the right way”;incorporate as part of their business modelHave certain upgrades that include as standard part of process, if warrantedApproach as “this is what we’re going to do” then educate consumer as towhy they do it “My responsibility to recommend”Believe energy efficient upgrades are in customer’s best interest and activelyseek opportunities to recommend upgradesSeek to guide consumers as to benefits; try to drive them toward itMay recommend upfront, but most often wait until have gotten a feel for thehouse and customer “We’ll offer as an option”Intellectually know it should be recommended, but don’t have strength ofconvictionView more as a consumer driven decision; give them information then let themdecideAnticipate consumer bottom line focus 7
    8. 8. Role of Energy Efficiency in Remodeling Provide a cost/benefit analysis for energy efficient upgrades  Include an energy audit assessing energy consumption & lifestyle  Demonstrate potential savings for various upgrades; connect the dots in terms of upgrades and real world benefits. 8
    9. 9. Best Approach to Energy Efficiency Knowledgeable recommendation with the consumer’s best interest in mind Sales attempt with the remodeler’s/builder’s financial interest in mind. 9
    10. 10. Remodelers’ Gaps & Barriers to Adding Energy Efficiency into Remodeling (2nd set of focus groups) 10
    11. 11. Gaps & Barriers to Adding Energy Efficiency See growth potential for energy efficient upgrades Long-term success is dependent on upgrades becoming market driven.  Need incentives based on improved home performance (not specific products)  Shifting homeowner mindsets to “performance” of the home 11
    12. 12. Challenges . . . Perceived value in doing energy efficient upgrades Costs  Auditing/testing  Limited homeowner resources  Energy savings vs. upgrade investment  Energy efficient improvements do not add appraisal value 12
    13. 13. Reasons to Invest in Energy Upgrades Motivators Include:  Reducing monthly energy bills  Having more predictable energy bills  Increased comfort  Improving indoor air quality  Environment, conservation, and/or green Helping homeowners to connect the dots between a problem and solutions is necessary for buy in 13
    14. 14. Selling vs. Solutions for Remodelers Educational information regarding energy inefficiency can create awareness  Did you know that you could be paying more than you should be in monthly energy costs because of leaky ducts, drafts, outdated heating & cooling systems or insufficient insulation? 14
    15. 15. Growing Energy Upgrades  Nationwide existing home performance scores  Establishing appraisal value for energy efficient upgrades  Realtor education as to value energy efficient upgrades bring, and how to sell the features  Points off mortgage interest for energy efficient upgrades 15
    16. 16. Tools Needed Informational/educational resources  Shift consumer thinking to home performance  Increase understanding of problems  Understand benefits of various types of upgrades  Website, DVD, printed materials 16
    17. 17. Tools Needed (cont.) Consumer campaign Free/low cost energy audits for homeowners Key questions to ask in order to identify opportunities Means of quantifying impact of energy efficient upgrades Connecting remodelers with energy auditors to develop referral network 17
    18. 18. Remodelers’ Needs forImproving Home Energy Efficiency (quantitative marketresearch based on focus groups) 18
    19. 19. Prioritize the Support Needs Quantitative market research with remodelers. Build upon the qualitative remodeler focus groups, Quantify and prioritize the support needs  Increase sales and projects involving improving home energy efficiency 19
    20. 20.  What percentage of your recent clients fit into the following groups when it comes to accepting energy efficient upgrades? % Clients in Following Groups Mean Bottom line focused - will not spend any more 40% than they have to. Can be convinced - may or may not think about 39% energy efficiency, but are open to the upgrades once they understand the benefits. Embraces, or actively seeks, energy efficiency. 21% Total 100% 20
    21. 21.  When working with clients, which of the following statements most closely describes your company’s approach to energy efficient upgrades? Company Approach to Energy Efficient Upgrades Freq. We do not try to sell or offer energy efficient 6% upgrades unless they are specifically asked for by the client. We offer or recommend it when the energy 51% efficient upgrade is cost effective and is directly related to the home improvement project. We believe energy efficient upgrades are part of 43% “doing it the right way” and incorporate this into as many remodeling jobs as possible. Total 100% 21
    22. 22.  What is the relative importance of all of the issues?Priority Issues sorted by Importance to Remodelers 1 Appraisal values factor into what type of remodels clients are willing to undertake, and energy efficiency is difficult to value. 2 Clients are typically unable to discern between high quality and low quality construction at the bidding phase. Often they select the lowest cost bidder. This makes selling upgraded energy efficiency difficult. 3 Realtors, who are in contact with homeowners as they buy/sell homes, aren’t able to describe the value of energy efficiency. 4 There is no standard way to compare a home’s energy efficiency when buying or selling an existing home. 5 Homeowners want to see tangible differences, often focusing on aesthetics or functionality, which makes energy efficiency a difficult sell. 22
    23. 23.  What is the relative importance of all of the issues?Priority Issues sorted by Importance to Remodelers 6 One popular way to determine airtighness, a blower door test, is expensive and most clients are not willing to pay for just an evaluation. 7 Homeowners see energy efficiency upgrade costs as an expense and not an investment. 8 Clients don’t understand the value of energy efficiency. They place little value on it. If consumers don’t see a problem, then they won’t purchase the solution. 9 There is little real demand for energy efficiency. Homeowners are just following the money for rebates. 10 No coordinated efforts between the federal government, state government, and utilities when it comes to offering, applying for, and complying with energy efficiency incentive programs. 23
    24. 24. Next Steps Outline potential solutions Determine homeowners gaps & needs 24
    25. 25. Resources Building America  www.eere.energy.gov/buildings/building_america Builders Challenge  Program: www.eere.energy.gov/buildings/challenge NAHB Research Center  Main Website: www.nahbrc.com  Technical Info: www.toolbase.org
    26. 26. Questions? 26
    27. 27. Thank You! Amber Wood NAHB Research Center Manager, Energy Programs 400 Prince George’s Blvd  Upper Marlboro, MD 20774 (direct) 301.430.6309  (fax) 301.430.6180 www.nahbrc.comDriving Innovation in Housing Technology