PITTSBURGH -
"Credit unions are paying a lot more attention to the need to keep things fresh at their branch than before," said Jim Caliendo, president of PWCampbell, here. "They realize they can't just build new branches, they have to look at the entire network."
Though it can really pay to renovate an existing branch, sometimes it really does make more sense to close it and move to a new location. "You have to do the cost-benefit analysis," he said. "People assume that renovating is always cheaper, and that's not true. It depends on what's behind the walls, the plumbing and mechanical. It also depends on the government-the regulatory and compliance costs can really add up. Bringing things up to code can really eat up your space, too, and what you find is that you can't get what you want in the four walls you've got."
Case in point: PWCampbell had a client that wanted to renovate a former funeral home and turn it into a branch, rather than demolish the building and start over on the site. "We went in and modernized it and got everything up to speed, but by the end of it, they didn't have enough space to grow."
Adding on to an existing building can pose the same problem, if it eats away at the number of parking spaces, for example, or changes the traffic pattern at the drive-through.
"When a credit union opens a new branch, they frequently want to replicate that in their other branches," Caliendo offered. "But the cost of truly replicating that can be expensive. Sometimes it makes more sense to just changes the finishes. Look at the color of your carpet, the laminates and wall coverings. Bring in plasma screens or even just marketing poster campaign."
CUJ Asks The Experts
Other tips from Jim Caliendo:
* Exterior signage is a great way to get real bang for the buck.
* Find "little" things that can add drive-by appeal. "We have a customer with 15 branches, and we developed an awning over the windows that creates an image," he observed. "It's a whole lot cheaper than changing the fascia of a building:
* If you're looking to gain market share, you can't look at "just" revamping existing branches or "just" building new branches. "You have to do both simultaneously, particularly if you are going to a community charter."
* Expand your drive-through for an instant jolt to profitability of an existing branch.
* Hopefully the credit union is using quality materials that will last some 30 years, but just because they last 30 years doesn't mean they should be kept for 30 years.
* Technological innovations have allowed for a smaller footprint. What used to take 4,000 square feet is now down to 2,500 square feet.
FOR MORE RESOURCES
For info on this story:
* www.lamacchiagrouop.com
* www.kdaholdingsinc.com
* www.hbecorp.com
* www.pwcampbell.com
