Directions CB/USA Webinar

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Directions CB/USA Webinar

  1. 1. CB/USA WEBINAR Directions ‘09
  2. 2. <ul><li>Bill Smithers – CEO </li></ul><ul><li>Co-Founder of CB/USA </li></ul><ul><li>24 years experience as a builder </li></ul><ul><li>A Custom Builder for 15 years </li></ul><ul><li>2006 Builder Magazine “50 Most Influential People” </li></ul><ul><li>Past Chairman of the NVBIA Custom Builders Council </li></ul><ul><li>2003 CBC Builder of the Year </li></ul><ul><li>Former Ryland Homes, Division President </li></ul>
  3. 3. CB/USA was formed in 2004 by a group of builders in Northern Virginia
  4. 4. Custom and Independent Homebuilders pay too much for the materials and labor that go into their homes.
  5. 5. Custom and Independent Homebuilders pay too much for the materials and labor that go into their homes. No leverage with relatively small purchase volume
  6. 6. Custom and Independent Homebuilders pay too much for the materials and labor that go into their homes. Project Complexity No leverage with relatively small purchase volume
  7. 7. Custom and Independent Homebuilders pay too much for the materials and labor that go into their homes. Project Complexity Limited systems and technology to conduct proper price analysis No leverage with relatively small purchase volume
  8. 8. Custom and Independent Homebuilders pay too much for the materials and labor that go into their homes. Project Complexity Limited systems and technology to conduct proper price analysis Inability to ‘qualify’ vendors without risk ? No leverage with relatively small purchase volume
  9. 9. Custom and Independent Homebuilders pay too much for the materials and labor that go into their homes. No leverage with relatively small purchase volume
  10. 10. We don’t have the same buying power as a National Production Builder
  11. 11. What if you could join other top builders, leverage your combined purchasing power and obtain better pricing and higher levels of service?
  12. 12. CB/USA has built the Nation’s first and largest network of the industries’ most reputable builders to deliver significant cost savings and superior customer service
  13. 13. AVERAGE BUILDER: AVERAGE LLC: CBUSA NETWORK: We work with “A” list builders in each of our active markets and form an LLC that you and your peers own. STARTS SPEND (on materials and labor) DYNAMIC 10 homes / yr $4.06M Limited access and exposure to new and better suppliers 125 homes / yr $55M Real time resources for the market’s best vendors and contractors with quality reference 1600 homes / yr $700M Relationships with industry leading manufacturers with new opportunities for education, training and customer service support
  14. 14. Our national network and your local LLC combine to give you spending power and industry clout you cannot get on your own AVERAGE BUILDER: AVERAGE LLC: CBUSA NETWORK: STARTS SPEND (on materials and labor) DYNAMIC 10 homes / yr $4.06M Limited access and exposure to new and better suppliers 125 homes / yr $55M Real time resources for the market’s best vendors and contractors with quality reference 1600 homes / yr $700M Relationships with industry leading manufacturers with new opportunities for education, training and customer service support
  15. 15. Custom home projects are complex and each builder is unique in the way they run their jobs... Project Complexity Limited systems and technology to conduct proper price analysis Inability to ‘qualify’ vendors without risk ? No leverage with relatively small purchase volume
  16. 16. Custom home projects are complex and each builder is unique in the way they run their jobs... Project Complexity
  17. 17. … making it difficult for suppliers to provide us with competitive pricing. Project Complexity
  18. 18. <ul><li>Unlimited range of architectural styles </li></ul>… making it difficult for suppliers to provide us with competitive pricing. Project Complexity
  19. 19. <ul><li>Unlimited range of architectural styles </li></ul><ul><li>Significant time involved in doing take-offs and bids for large homes </li></ul>… making it difficult for suppliers to provide us with competitive pricing. Project Complexity
  20. 20. <ul><li>Unlimited range of architectural styles </li></ul><ul><li>Significant time involved in doing take-offs and bids for large homes </li></ul><ul><li>Construction details are complicated and vary from builder to builder </li></ul>… making it difficult for suppliers to provide us with competitive pricing. Project Complexity
  21. 21. <ul><li>Unlimited range of architectural styles </li></ul><ul><li>Significant time involved in doing take-offs and bids for large homes </li></ul><ul><li>Construction details are complicated and vary from builder to builder </li></ul><ul><li>Most custom projects require more deliveries and pick-ups </li></ul>… making it difficult for suppliers to provide us with competitive pricing. Project Complexity
  22. 22. <ul><li>Unlimited range of architectural styles </li></ul><ul><li>Significant time involved in doing take-offs and bids for large homes </li></ul><ul><li>Construction details are complicated and vary from builder to builder </li></ul><ul><li>Most custom projects require more deliveries and pick-ups </li></ul><ul><li>High Maintenance = High Price </li></ul>… making it difficult for suppliers to provide us with competitive pricing. Project Complexity
  23. 23. A big part of the problem stems from the way that we ask our Vendors and Subcontractors for pricing. Project Complexity
  24. 24. A big part of the problem stems from the way that we ask our Vendors and Subcontractors for pricing. <ul><li>We ask them to do the take-off work for us </li></ul>Project Complexity
  25. 25. A big part of the problem stems from the way that we ask our Vendors and Subcontractors for pricing. <ul><li>We ask them to do the take-off work for us </li></ul><ul><li>We provide them with an incomplete take-off that we’ve done ourselves </li></ul>Project Complexity
  26. 26. A big part of the problem stems from the way that we ask our Vendors and Subcontractors for pricing. <ul><li>We ask them to do the take-off work for us </li></ul><ul><li>We provide them with an incomplete take-off that we’ve done ourselves </li></ul><ul><li>We do no take-off at all and estimate the job based on square footage </li></ul>Project Complexity
  27. 27. <ul><li>We ask them to do the take-off work for us </li></ul><ul><li>We provide them with an incomplete take-off that we’ve done ourselves </li></ul><ul><li>We do no take-off at all and estimate the job based on square footage </li></ul>Any of these 3 scenarios can lead to problems and cost a Vendor time & money. Project Complexity
  28. 28. What if you had a service that provided detailed take-offs and color-coded drawings for use in bidding and building your project?
  29. 29. CB/USA addresses the problem of complexity by offering accurate and cost-effective take-off services to help you manage your projects and quantify your costs.
  30. 30. With CB/USA, even the most complex architectural plans are reduced to an accurate list of materials using product descriptions that you control
  31. 31. With CB/USA, even the most complex architectural plans are reduced to an accurate list of materials using product descriptions that you control
  32. 32. Most importantly, the take-offs are uploaded to the CB/USA Software for you, which lets you get accurate cost comparisons in seconds.
  33. 33. Pricing is only good if you know what it does and doesn’t include.
  34. 34. What if you had access to detailed bid specs to clarify what you are asking vendors to price?
  35. 35. What if you had access to detailed bid specs to clarify what you are asking vendors to price?
  36. 36. Bid Specifications that are put in place by CB/USA help to ensure that you are getting comparable product quality and service from each vendor that is pricing product
  37. 37. Bid Specifications that are put in place by CB/USA help to ensure that you are getting comparable product quality and service from each vendor that is pricing product
  38. 38. CB/USA’s Take-off and Bid Specification Systems enable you to…
  39. 39. CB/USA’s Take-off and Bid Specification Systems enable you to… <ul><li>Improve the accuracy of your material orders </li></ul>
  40. 40. CB/USA’s Take-off and Bid Specification Systems enable you to… <ul><li>Improve the accuracy of your material orders </li></ul><ul><li>Minimize margin erosion due to incomplete take-offs </li></ul>
  41. 41. CB/USA’s Take-off and Bid Specification Systems enable you to… <ul><li>Improve the accuracy of your material orders </li></ul><ul><li>Minimize margin erosion due to incomplete take-offs </li></ul><ul><li>Compare pricing from various vendors on a true “apples-to-apples” basis </li></ul>
  42. 42. CB/USA’s Take-off and Bid Specification Systems enable you to… <ul><li>Improve the accuracy of your material orders </li></ul><ul><li>Minimize margin erosion due to incomplete take-offs </li></ul><ul><li>Compare pricing from various vendors on a true “apples-to-apples” basis </li></ul><ul><li>Reduce waste </li></ul>
  43. 43. CB/USA’s Take-off and Bid Specification Systems enable you to… <ul><li>Improve the accuracy of your material orders </li></ul><ul><li>Minimize margin erosion due to incomplete take-offs </li></ul><ul><li>Compare pricing from various vendors on a true “apples-to-apples” basis </li></ul><ul><li>Reduce waste </li></ul><ul><li>Significantly improve the efficiency of the bidding and construction processes </li></ul>
  44. 44. CB/USA’s Take-off and Bid Specification Systems enable you to… <ul><li>Improve the accuracy of your material orders </li></ul><ul><li>Minimize margin erosion due to incomplete take-offs </li></ul><ul><li>Compare pricing from various vendors on a true “apples-to-apples” basis </li></ul><ul><li>Reduce waste </li></ul><ul><li>Significantly improve the efficiency of the bidding and construction processes </li></ul><ul><li>Reduce overhead </li></ul>
  45. 45. With limited resources and off-the-shelf technology, it is nearly impossible to conduct accurate price comparisons in a cost-effective manner Project Complexity Inability to ‘qualify’ vendors without risk ? No leverage with relatively small purchase volume
  46. 46. With limited resources and off-the-shelf technology, it is nearly impossible to conduct accurate price comparisons in a cost-effective manner
  47. 47. The methods used by many Builders to get their pricing leave a lot of room for errors.
  48. 48. The methods used by many Builders to get their pricing leave a lot of room for errors. “ Here are my plans, Mr. Sales Rep. You do the take-off, then give me a price.”
  49. 49. The methods used by many Builders to get their pricing leave a lot of room for errors. “ Here are my plans, Mr. Sales Rep. You do the take-off, then give me a price.” “ Let’s take our in-house estimate and add 10% for anything we might have missed”
  50. 50. The methods used by many Builders to get their pricing leave a lot of room for errors. “ Here are my plans, Mr. Sales Rep. You do the take-off, then give me a price.” “ Let’s take our in-house estimate and add 10% for anything we might have missed” “ Joe over at XYZ Lumber says we’re at their best pricing level, so let’s give him the order.”
  51. 51. Even if we do get competitive bids, they are usually received in a form that doesn’t allow us to make accurate comparisons.
  52. 52. What if you had a web-based tool to compare pricing in seconds from multiple suppliers using the same product descriptions?
  53. 53. CB/USA’s web-based software is unlike anything else in the industry. Our builder members conduct accurate price comparisons anytime, anywhere they have internet access and can place orders electronically
  54. 54. … and realize significant cost savings!
  55. 55. With the CB/USA software, you can either use our take-off service to build orders or build them yourself online.
  56. 56. With a take-off entered into the software, builders can access the pricing from multiple vendors in seconds
  57. 57. With a take-off entered into the software, builders can access the pricing from multiple vendors in seconds
  58. 58. With a take-off entered into the software, builders can access the pricing from multiple vendors in seconds
  59. 59. Builders are able to competitively bid major phases with a minimum investment of their time.
  60. 60. Builders are able to competitively bid major phases with a minimum investment of their time.
  61. 61. Vendors must price the exact item you are requesting or notify you that they are substituting a product in its place
  62. 62. Builders can easily request pricing from a vendor for any item not priced
  63. 63. CB/USA’s software allows you to accurately compare real-time pricing amongst multiple vendors and make good business decisions for your company
  64. 64. Once the purchasing decision is made, orders can be placed directly through the software…
  65. 65. … reducing the possibility of communication errors and price changes from vendors.
  66. 66. Choosing the right suppliers and subcontractors for your project is critical to your success. Project Complexity Limited systems and technology to conduct proper price analysis No leverage with relatively small purchase volume
  67. 67. How do you qualify the right suppliers and contractors for the job when there are so many unknowns?
  68. 68. CB/USA’s Member Directory provides a database of pre-screened, qualified companies that you can use with confidence
  69. 69. Vendors are easily located by company name, employee name, product or services that they provide
  70. 70. This directory contains only those vendors that have been accepted by you and your peers. Each vendor has their own micro-site where they manage critical program, product, and service information.
  71. 71. Members also rate Vendors in 7 critical areas to give you insight on their strengths and weaknesses before using them on your project
  72. 72. By combining this tool with CB/USA’s state-of-the-art price comparison technology, you can make good decisions based not just on price, but quality and service, thus reducing the risk typically associated with changes in your resource pool.
  73. 73. CB/USA also maintains local and national e-mail message boards so our members can get instant answers from reputable builders, saving you countless hours looking for qualified advice
  74. 74. CB/USA also maintains local and national e-mail message boards so our members can get instant answers from reputable builders, saving you countless hours looking for qualified advice Members, We need an asphalt paving contractor, ours went out of business. Michael Michael Belle New Century Homes, LLC
  75. 75. CB/USA also maintains local and national e-mail message boards so our members can get instant answers from reputable builders, saving you countless hours looking for qualified advice Members, We need an asphalt paving contractor, ours went out of business. Michael Michael, Try Haines Paving 541.471.7600. He has done very nice work for us and is as price competitive as anyone in the market. Wayne Michael Belle New Century Homes, LLC Wayne Foley W.M. Foley Construction Corp.
  76. 76. Project Complexity Limited systems and technology to conduct proper price analysis Inability to ‘qualify’ vendors without risk ? No leverage with relatively small purchase volume CB/USA has leveled the playing field for its premier network of builders ….
  77. 77. Project Complexity Limited systems and technology to conduct proper price analysis Inability to ‘qualify’ vendors without risk ? No leverage with relatively small purchase volume By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  78. 78. No leverage with relatively small purchase volume By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  79. 79. Builders leverage their combined volume and work as “ONE” in the market By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  80. 80. Project Complexity By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  81. 81. Projects Simplified By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  82. 82. Limited systems and technology to conduct proper price analysis By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  83. 83. Industry leading systems and technology for accurate price analysis By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  84. 84. Inability to ‘qualify’ vendors without risk ? By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  85. 85. Add new vendors with confidence By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  86. 86. Limited systems and technology to conduct proper price analysis Inability to ‘qualify’ vendors without risk ? No leverage with relatively small purchase volume Builders leverage their combined volume and work as “ONE” in the market Projects Simplified Industry leading systems and technology for accurate price analysis Add new vendors with confidence By providing them with the systems, technology and staffing to participate in an effective group purchasing program in their own markets.
  87. 87. CB/USA’s Platform has Revolutionized the Purchasing Process for Independent and Custom Builders
  88. 88. CB/USA’s Platform has Revolutionized the Purchasing Process for Independent and Custom Builders Vendor B Vendor A Vendor C Vendor Directory Vendor Selection
  89. 89. CB/USA’s Platform has Revolutionized the Purchasing Process for Independent and Custom Builders Automated Price Comparison Tool Vendor Rating Tool Vendor B Vendor A Vendor C Vendor Directory Vendor Selection Value Analysis
  90. 90. CB/USA’s Platform has Revolutionized the Purchasing Process for Independent and Custom Builders Automated Price Comparison Tool Vendor Rating Tool Vendor B Vendor A Vendor C Vendor Directory Online Order Vendor Selection Value Analysis Informed Decision
  91. 91. CB/USA’s Platform has Revolutionized the Purchasing Process for Independent and Custom Builders Automated Price Comparison Tool Vendor Rating Tool Vendor B Vendor A Vendor C Vendor Directory Online Order Vendor Selection Value Analysis Informed Decision Our program allows you to reduce your costs, increase your service levels and maintain strong relationships with the best vendors and subcontractors in your market.
  92. 92. Here’s what our members have to say about CB/USA and how their companies have benefited from our program “ ... in 3 ½ months of involvement in the program my company has saved over $18,000 . In addition to the cost savings we have also been pleasantly surprised by the service levels of the participating vendor members and the ability to talk with other builder members about best practices and their experiences with trades or suppliers. CB/USA San Antonio is now and will continue to be a key aspect to my company’s success .” – Jesse Piggot, San Antonio, TX
  93. 93. “ Joining CB/USA, is the equivalent of having a purchasing agent on my staff without having to pay their salary. The monthly comparison of material suppliers researched by CB/USA is invaluable. If you’re interested in driving costs down; join CB/USA .” -Dave Konkol, Orlando, FL Here’s what our members have to say about CB/USA and how their companies have benefited from our program
  94. 94. “ I have used CB/USA Takeoff Services for two homes now and I am thoroughly impressed . First of all, the ease of doing business is phenomenal. The finished product is excellent. Not only am I more confident that my estimates are accurate , but they are timely, uploaded in to the CB/USA pricing platform, and I have a color coded cut sheet for my carpenters.” -Justin Whitney, Charleston, SC Here’s what our members have to say about CB/USA and how their companies have benefited from our program
  95. 95. CB/USA’s position as the market leader is strong, and our competitive advantages provide each of our members with the opportunity to strengthen their bottom lines while providing greater value to their customers.
  96. 96. For more information about joining an existing CB/USA group or starting a CB/USA operation in your market, please contact me directly. Bill Smithers [email_address] (540) 454-3862 You can also visit our website at www.cbusa.us to learn more about how our program works and the advantages we can provide to your company.

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