Op Editorials
Why Good Contractors Cost More Than Their Competitors
Time. It is a limited resource and ultimately a good contractor’s most valuable asset. When you carve out and hold sacred the personal time needed for God, Family, Friends, Fellowship, Rest, Relaxation, and Recovery, the decisions you make on how you spend the time allocated to the “work-day” become even more imperative. Successful contractors are purposeful with how they spend their time, always cognizant that wasted time is something that can never be recovered.
Eliminating wasted time is one of the motivating factors that drive good contractors to improve themselves and their companies. Managing time becomes a differentiator that sets them apart from their competition. Contractors invest in developing systems and processes that pay dividends as their companies begin to run like well-oiled machines.
The best contractors devote themselves to improvement through industry education across all facets of the business — from design and construction to sales and business. They allocate resources to building a company that values relationships built; both internal with employees and sub-contractors and external with their customers and the communities in which they thrive. They desire to leave a mark — to weather the storms and to stand the test of time.
In my role as a traveling design professional, I have had the opportunity to meet many of these visionary contractors at all stages of their journeys. Through our interactions, I have watched and learned from them as we have partnered on their designs. We have discussed their successes and struggles alike, and I have been inspired by the insights learned from them. I hope that sharing these will help others facing similar questions and challenges.
A unique aspect of my travels is the unique regional differences, biases, and issues that our partnered contractors face in their businesses. Whether it is a product that is considered a necessity in Richmond, VA, but would never be considered in Charlotte, NC (which is only 5 hours away), or how a contractor in Port Charlotte, FL deals with labor issues differently than another in Denver, CO – each with their own success.
Sometimes the issues are climate-related, and in other places biases appear more psychologically motivated. Each region seems to have its own set of specific conundrums to work through. But one truth that I have found to be universal when working with these quality-focused contractors from across the land is their frustration when their market competition actively works to label them to prospective clients as “too expensive” and uniformly undercuts their pricing – often to disastrous results.
Time Invested Into Your Clients
The client relationship process takes time — valuable work-day time that cannot be recaptured if something or someone takes it awry. It takes time to properly vet the prospect, work through a design process, and establish a solid relationship base where you feel comfortable moving forward into construction. It takes time to provide both rough framework estimates and detailed project bids, and then often to revise both the design and bid to best suit the needs of the client.
This allocated time is an investment on your part and should be reciprocated in kind on your client’s part as the purchase they are about to make as they add to the value of their home is, for the most part, the second largest they will make in their lives — more so than luxury vehicles, lavish vacations, college tuitions, and children’s weddings. As such, this investment should be treated with the respect it is due by all parties in the process (which is an entire another topic for a future article).
What often takes this process off the rails is when a third-party “spoiler” enters the mix and actively works to sow the seeds of doubt in the mind of the client. I have seen this spoiler come in multiple persons — from a client’s homebuilder who likes to use his pool guy (often cheaper and with a kick-back), to the infamous “neighbor at a party” who brags about the “deal” that he got on his pool.
The most common spoiler is direct from a competitor pool company, who actively uses the fact that quality-focused contractors are not cheap against them with phrases like, “he sure is proud of what he does”, or “pools should never cost that much.” Or the best one that I hear, “he is just trying to get rich off of one project, we just make a little off of each project that we build.”
Where you have invested time, effort, and attention to detail to prepare and plan the seamless execution of a signature project, the competitor is looking to swoop in and derail the entire process you have built with either a smoke-and-mirrors sales number deception or a true blissful ignorance of actual project costs when completed to high-performance standards.
It is human nature to be frustrated with your client when they question why you are so much higher than the other builders in their market. So how do you educate them as to the valid reasons why good contractors cost more than their competitors?
As a professional serving in an owner’s representative role in reviewing contractor bids for high-end clients, I have three criteria that I look for in the reviewed proposals. I believe these are the differentiators that separate quality-focused contractors from their market competition. Quality-focused contractors will:
Credit – Luxury Outdoor Living Designer: Jason Brownlee
Consider and Include Everything
When a quality-focused contractor Considers and includes everything, it eliminates the “I didn’t include that” or “We don’t do that” comments from the bid comparison that are either intentionally or artificially deflated to make the number look better.
Every contractor has to pull permits, handle excess dirt or spoils, build an access road to the backyard, provide dumpsters and a portable bathroom, bring in a gravel sub-base, handle drainage, and provide utility extensions to the spaces (gas, electric, low voltage, etc.), include fencing (both during construction and final security enclosure), consider landscaping, lighting, irrigation, and on and on.
Many bids I see leave these and other necessary line items off in order to make a number look better. But at the end of the project, the costs are similar between the low and higher bids. This is a smoke-and-mirrors deception designed to get the client on the hook, then deal with the “misunderstanding” aftermath later. Almost every contractor has the same built-in profit margin –assuming they know it. The difference in the proposal price does not come in how much money the owner is bringing home. Instead, it comes in the process, how they operate, and what they choose to include and exclude.
Build It Right
When a quality-focused contractor commits to building it right, this means he holds their construction processes to a higher standard and will not deviate from that. It is not enough to meet the “minimum code” and expect to build a structural vessel that will not have issues down the road. There are standards that need to be adhered to in order to build a quality vessel because there are so many ways to cut corners and literally bury them underground.
When reviewing bid proposals with owners, I sit down with them and get very technical, discussing and reviewing bullet-point style construction standards in a proposal before they make their selection. This shows the owner that a contractor has a working knowledge and understanding of what it takes to build correctly and indicates if they have pursued the advanced industry education available and understand the importance of a quality build.
Offer More
Finally, when a quality-focused contractor offers more, it means that they are abreast of the full scope and range of features and options available and either addresses or include them in their proposal to allow the client an option to select yes or no. This includes equipment options such as alternative sanitizers, heating option availability, automation control, lighting systems, water and fire visual features, finish and veneer selection upgrades throughout, outdoor kitchen components, etc. etc. The scope and scale of the final project with its ease-of-use options should ultimately be up to the client to decide and not pre-conceived by a contractor who may not know their personal preferences, needs, or desires for the space.
A favorite saying that we use in our classes is, “Don’t let your Middle-Class get in the way of that man’s money!” I have seen a contractor or pool designer / sales person end up talking a wealthy client out of an all-tile pool finish or automated chemistry control system, simply because it is out of the contractor or designer’s personal budget mindset. But to the client, it might be nothing more than what they would have spent on another toy in their garage. It is not your money to spend! Instead it is your job to know and offer all of the options available and then allow the client to decide what they like and don’t like, or need and don’t need for their own personal outdoor living experience.
Final Thoughts
In the end, when the client signs a construction contract, he or she is buying into you. Show the client that you have considered and included all aspects of the job and they will not have hidden charges that could have been known. Demonstrate that you are committed to building to a higher standard with industry integrity that is backed by educational certification. Show all of the options that they may wish to consider, not just the few that are easiest or readily available and let them decide the scope and scale of the project they want for their family.
If you can prove these points, you will have transitioned that client away from a price-point buyer over to an investment-focused mindset. Now the time you have invested into the client relationship as well as in the systems and advancement of your company – will pay its dividend.
Photo Credit: J Brownlee Design
Skimmer, a leading-edge pool service software provider, recently unveiled its “2024 State of Pool Service Report,” a comprehensive analysis based on the invaluable feedback from over 1,700 pool service professionals who responded. This report delves deep into key facets of the industry, such as market challenges, business structures, pricing strategies, technology adoption, and growth plans. Notably, the report culminates from survey responses from Skimmer’s platform of over 25,000 users as well as insights gleaned from broader market research.
Rising Tides of Costs and Strategic Business Responses
One of the more eye-opening aspects to the report, 73% of surveyed pool service professionals reported a commendable upswing in revenue in 2023 compared to the previous year. However, the buoyancy in revenue was tempered by a prevailing concern – rising costs. The majority identified escalating costs as the most formidable challenge faced in 2023, with an anticipatory nod to this trend persisting into the unfolding year of 2024.
A significant number of companies are gearing up to address these rising costs by contemplating price adjustments, with nearly 74% of pool professionals signaling their intention to implement price increases in the current year to sustain revenue streams.
In an exclusive interview with Talking Pools Podcast, Jack Nelson, CEO of Skimmer, underscored this critical issue, stating, “Everyone in the industry feels like costs are going to keep rising. It’s unfortunately an inevitability with sort of inflation. The question is, what are we going to do about it? It’s really interesting to see that most respondents said they were planning on raising prices in order to maintain profit margins.”
Workforce Dynamics and Marketing Strategies
Beyond the realms of financial strategies, the report casts its gaze on the dynamic workforce within the pool service industry. A noteworthy revelation is that 52% of respondents expressed an intent to expand their teams in 2024. This metric supports a positive indicator that most respondents believe the industry will continue to grow rather than contract.
One statistic you may find surprising, the report indicated that the majority of service technicians still rely heavily on the age-old method of word-of-mouth referrals, with only a modest 35% reporting that they’re investing in marketing. Nelson, who has experienced this sentiment first hand expressed that this way of thinking might be outdated.
“So many folks in the industry think they don’t need to pay for marketing because they get a lot of referrals,” said Nelson, “that’s true. You can grow your business that way, but you can grow it so much more quickly if you are spending a little bit of marketing. Because most of the industry is still not doing it, there’s a real chance to kind of take advantage of that. It’s a huge opportunity for ambitious pool service companies.”
Technology Integration: The Digital Oasis
In counterpoint to that, one area where the pool industry is embracing technology is business operations. One pivotal aspect of the report indicated an escalating integration of technology within the pool service industry. Approximately 75% of respondents revealed that they are leveraging software to streamline various aspects of their business operations. This underscores a growing acknowledgment of the pivotal role technology plays in enhancing efficiency, streamlining operations, and staying ahead in a competitive landscape.
“I think knowing your numbers is absolutely critical,” said Nelson, “so is embracing technology to operate your business more efficiently. That’s true whether it’s Skimmer or any other type of technology. I think there’s a tendency to underestimate the cost associated with doing business. Time is money. If you’re accepting a check from a customer because that customer refuses to get on ACH or credit card, there’s time associated with that cost. I think really understanding where you can automate different aspects of your business to save time and money is critical as costs continue to rise.”
Strategic Navigations for Future Growth
One noteworthy observation gleaned from the report is the success of companies that choose to bill separately for chemicals. Businesses charging customers separately for chemicals were on average more profitable than those who opted to include chemicals in the total price of service.
Including the price of chemicals has traditionally been a more straightforward, fixed-rate structure that is perhaps more easily grasped by pool owners and simplifies billing for pool professionals. However, the drawback lies in the susceptibility to frequent price adjustments due to significant fluctuations in chemical costs.
According to Skimmer’s data analysis, the model that charges extra for chemicals, known as the “plus chems” model, emerges as the most effective strategy in mitigating the impact of both fluctuating chemical costs and variations in weather patterns that might affect chemical usage, providing a robust buffer against such uncertainties.
Beyond immediate challenges, the report reveals a spectrum of strategic approaches pool service professionals are exploring for future growth. Notably, 33% of respondents expressed a nuanced interest in reducing their customer count while concurrently focusing on upselling more services and augmenting the overall value provided per pool serviced. Additionally, 43% are pinning their hopes on introducing operational efficiencies to curtail costs and bolster profitability.
Want to take a deeper dive? Read Skimmer’s 2024 State of Pool Service Report or listen to the interview on the Talking Pools Podcast.
Ground Penetrating Radar (GPR) – allows contractors to actually “see” inside pool structures. GPR systems are perfect for locating reinforcing steel and determining the thickness of the concrete. Another helpful aspect of GPR is its use in locating elements inside of framed buildings, pipes, and conduits. Though these systems typically are priced at over $12,000, once prorated across many jobs, the cost is minuscule, while the benefits can be monumental.
What is Ground Penetrating Radar?
Ground Penetrating Radar is a geophysical method that uses radar pulses to image the subsurface of the ground. It is a non-destructive and non-intrusive technique commonly employed in various fields, including archaeology, geology, environmental studies, civil engineering, and utility detection. The primary purpose of GPR is to identify and map subsurface features, anomalies, or objects without the need for excavation.
How Does It Work?
GPR works by emitting short pulses of electromagnetic waves into the ground. These radar pulses penetrate the subsurface and interact with different materials and structures. As the waves encounter boundaries between materials, some of the energy is reflected back to the surface. The GPR antenna receives these reflections, and the system processes the signals to create a detailed image of the subsurface. GPR is widely used for utility detection, subsurface mapping, and construction applications, providing valuable information without the need for excavation.
GPR For Pool Builders & Contractors
Today, construction technology is evolving. Ground Penetrating Radar (GPR) has become a valuable tool for pool builders and contractors in various aspects of their work. Here are some ways in which GPR can be beneficial for professionals in the pool construction industry:
- Locating Utilities
- Identifying Subsurface Anomalies
- Mapping Soil Stratigraphy
- Detecting Void Spaces
- Quality Control and Inspection
- Ensuring Compliance with Regulations
- Time and Cost Savings
Using GPR for Non-Destructive Testing
Today, there are a number of intelligent reasons to be using a ground penetrating radar to scan your pool shells. GPR is a non-destructive method to determine what is actually occurring inside of the concrete, without having to drill cores or demolish concrete. Radar allows experts to see the rebar schedule and depth within concrete. Pool construction professionals have even used them to validate the presence of bonding clamps and wire, when inspections were missed (for other contractors).
Use of Ground Penetrating Radar in Remodeling Swimming Pools
For contractors, being able to precisely locate the placement of the reinforcing steel is invaluable. When planning for coring a shell for pool lighting, add plumbing or coring for samples, it is critical to know where the steel is located. Hitting a rebar while coring can easily damage a $500 core bit. Worse yet, a handheld drill binds and kicks back, breaking the user’s thumb.
After stripping the plaster, scanning the shell can definitively determine if there’s sufficient shotcrete coverage over the steel. If it’s insufficient, then the pool can be “flashed” with additional shotcrete (at an additional charge). This will require new coping and tile as well, as the interior dimensions will change. In my own personal firm’s pool remodeling contracts, we have a disclaimer about shotcrete thickness. We will scan the shell for free, but if there is an inadequate amount of coverage, there will be a change order to add shotcrete and adjust the coping, tile and fittings. Think of this as a potential profit center. You can actually show the owners the location and depth of the rebar.
GPR companies charge $500-600 for a 1-hour visit. You can see how quickly owning a GPR unit can pay for itself. After a while, it will actually start earning you money! A Proceq GP8800 can be had for around $12,000 plus the cost of an iPad.
Photo Credits: Proceq
Op Editorials
Mark Zuckerberg Plans To Build a Survival Bunker With a Pool
Facebook founder Mark Zuckerberg plans to build the ultimate survival bunker complete with its own swimming pool.
Mark Zuckerberg, the founder of Facebook and the brains behind the metaverse, is planning on building a lavish new compound complete with an underground survival bunker. According to an exclusive investigation by Wired, the billionaire doomsday prepper is shelling out some serious coin to build the estate, with costs rumored to exceed a whopping $100 million.
Details Emerge About Plans For a Luxury Estate Complete With a Doomsday Bunker
Based on information from both public records and a confidential insider, Wired has disclosed that Mark Zuckerberg’s estate is on the verge of completion. The primary living quarters comprise over a dozen buildings, featuring a remarkable 30 bedrooms and 30 bathrooms. Central to the compound are two colossal mansions, rivaling the size of a professional football field, equipped with offices, elevators, conference rooms, and an expansive industrial-grade kitchen. Evoking a sci-fi ambiance, numerous doors within the compound will be soundproofed, operated through keypads, or designed as “blind doors” seamlessly blending with the surrounding walls.
A tunnel is rumored to connect the two mansions, providing a discreet pathway to the bunker. An additional structure on the estate is set to include a full-size gym, pools, a sauna, a hot tub, a cold plunge pool, and a tennis court. Adding an adventurous touch, 11 treehouses, connected by rope bridges, allow guests to navigate between structures without setting foot on the ground. Notably, Zuckerberg has reportedly hosted at least two corporate events on the property, showcasing the multifaceted nature of this extraordinary compound.
This End of Days Bunker Comes With a Swimming Pool
The compound named Koolau Ranch, sits on Zuckerberg’s purchased land, a tropical haven he bought for a cool $170 million. With plans for the new development leaked, a 5,000-square-foot underground shelter with all the bells and whistles is apparently envisioned to make surviving the end of days a five-star experience.
The investigation by Wired referenced information from sources and planning documents acquired through requests for public records. The documents detailed that the primary residences will be accompanied by a 5,000-square-foot underground shelter, complete with living spaces and an emergency escape hatch.
As plans continue to take shape, one of the most intriguing aspects of the project has surfaced – an 18-foot water tank and pump system. Speculations are rife about its purpose, with rumors circulating that this colossal water reservoir is more than just a contingency plan for the apocalypse. Could it be a key component in Zuckerberg’s ambitious underground pool project?
Billionaire tech moguls are apparently sparing no expense when it comes to preparing for a doomsday scenario. A tell-all book called Survival of The Richest by Douglas Rushkoff reveals that these bunkers are equipped with cutting-edge technology, state-of-the-art security systems, and amenities that make five-star hotels blush.
In the unlikely event of an apocalypse, one can’t help but imagine Mark Zuckerberg’s friend requests suddenly resembling Jim Carrey’s inbox in Bruce Almighty. Forget about FarmVille requests; now it’s all about securing a spot in Zuck’s luxury bunker-ville! Picture this: while the world outside is in chaos, inside the bunker, Zuckerberg’s getting notifications like, “Hey Mark, long time no apocalypse, can I crash at yours?”
As the doomsday clock ticks away, Zuckerberg’s friend count might skyrocket faster than a viral cat video. Everyone from old high school buddies to that guy who accidentally poked him in 2009 will be sliding into his DMs, desperately seeking refuge in the ultimate VIP shelter. The allure of a bunker designed by the creator of the social network could turn Zuckerberg into the most sought-after doomsday BFF.
Interested in learning more? Good luck. Zuckerberg’s compound is now encircled by a 6-foot wall, and, as reported by Wired, an additional layer of confidentiality has been added to the project. Every contracted worker, regardless of their position or role, is said to have been required to sign non-disclosure agreements (NDAs) pertaining to their contributions to the property. This heightened level of secrecy suggests that specific details about the construction and features of the compound are likely to be tightly guarded and may not easily find their way into the public domain.
Featured Photo Credit: MidJourney AI
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