Customer referrals

Customer referrals are the key to any successful small business who does not have unlimited advertising budgets.  I would estimate that 90% of all of our work is from a referral of some type.  I am currently working a very high project over $100,000.00 for a client who was referred to us from his neighbor across the street.  I built the neighbor’s pool approximately six or seven years ago.  I honestly don’t remember much about the pool or the process, and we rarely have had any contact with the customer since we finished the pool.  When my new client called he said, “I was referred to you by my neighbor and he told me he had a wonderful experience with you and the landscaper, but he would not recommend the contractor who built his addition to his house.” 

To me, this is the highest complement I can receive and it is a 95% chance the project is already sold.  When I meet the client for the first time, they wanted to walk across the street to see the pool I built many years ago.  Honestly, that is scary.  I don’t know how they have taken care of the pool.  I know my workmanship has developed for the better over the years and there will be items that I will see, but most likely no one will notice.  What if their college kids had a party last night the place is trashed?  I was very impressed with the condition of the pool, and yes I did see some minor cosmetic items that we perform differently now.  It was very hard to not to say, “Yes, I will do it like that, but yours will be better.”  The meeting continued to go extremely smooth, my clients are super nice people and we designed and contracted their project.

Yesterday I went to meet a gentleman who was referred to us by a client we completed a project for over the winter.  This guy already has a swimming pool which is only a few years old.  It was built by one of the “BIG” national companies and there are many issues that need to be addressed.  It is a well designed vanishing edge swimming over-looking Lake Norman but the vanishing edge weir wall is approximately ½” out of level, lack of water-proofing has caused effloresces and stone pop-offs, and the worst plumbing lay-out I think I have ever seen.  The repair may exceed $30,000.00 to fix the project correctly, but it would have cost approximately $4,000.00 to do it right the first time.  The owner of the franchise told the client that the problem was the home builders fault since they provided the stone work.  Well, who installed the plumbing and tile for the vanishing edge?  Basically, he told his client to “stick it” because the home builder is no longer in business and he claims the home builder did not pay them $25,000.00.  Well if that was true, the pool builder should have put a lien on the house.  I point the mistake and poor workmanship directly to poor management on the jobsite and free-for-all subcontractors. 

These scenarios happen to me all of the time.  Not to say I’m perfect, but at least I always put the most reasonable and allowable effort to please my clients.  I started thinking why some builder can get away with this stuff and why I can’t.  It’s easy; they do not rely on customer referrals.  Yes, it is very easy to get a referral list for you website or a good quote from a client because very pool builder has built a good pool at one time and I’ve seen them.  What they rely on is strong advertising, billboards, unlimited corporate website exposure, and radio commercials claiming to “build your pool in 30 days – Guaranteed!”  They need volume for the large corporate machine to work, so quantity outweighs quality.  If a project does not go as planned, there are no worries because the phone is still going to ring for them. 

The most frustrating part of this example is that the customization of vanishing edge swimming pool is over most of the companies’ subcontractor’s abilities.  I know that the national companies are very capable of building stamped swimming pool designs in normal yard situations, but when it comes to difficult grades and vanishing edge details, this work should be left to us contractors who stay on the job, oversee the progression, and strive for excellence. 

So, if you are considering a swimming pool project and have a situation that is a challenge and expect perfection, look to the smaller contractors who you may have to search for a little harder and realize that companies who claim to be in business for 50 and 60 years are only a franchise and have limited qualifications in some cases.

A poor buying decision.

I would like to discuss the most important aspect of swimming pool construction which applies to all trades and business.  Truthfulness to your client is the easiest part of owning your business, but it is overlooked by many.  I have to share a personal experience about being the consumer and dealing with an untruthful company.  Currently, I am building a new steel building for my office and warehouse location at my residence.  I live on a farm, and with the amount of land available and the lack of neighbors, it’s a no brainer.  So long to the days of paying rent.

I am a licensed commercial general contractor and I know a few things about commercial construction, so why not build my office.  I searched the internet looking for a reputable steel building supplier, and like many business, I had a hard time receiving a call back or any pricing structure.  Out of three companies, only one called back and informed me that they could sell me the building, but they did not have an authorized builder in my area.  Sounds good, I’ll be your authorized builder and if we can build a building or two over the course of the year which could become profitable, I’m in for it. 

The salesman said the right thing, I’m looking at the bait and like a hungry fish I jump and make a wrong discussion.  He claimed that I needed to commit and pay a deposit to lock in the steel rate.  The price seemed fair, he had what I wanted, so let’s go!  Now being a contractor, I not a total idiot.  My rebar and other material prices jump all around constantly from job to job, so I normally round my steel prices to the nearest fair price so that I can sleep at night knowing that my next job will be priced close enough to make a profit.  I’m in, sign the contract, summit a deposit and then I wait for a next day delivery of color samples so they can get started.  I was told I would have the building with-in eight weeks so I needed to get started clearing land, building retaining wall, etc. 

They assign me a project manager, and soon after they receive my color selections, I receive a component order for all the extras such as: doors, windows, insulation, weather-stripping, closure seals, gutters, etc.  I’m trying to build this building on a budget and we discussed all of this stuff.  It was listed on the contract, but after review noticed how they made it look like it was included, but it was not.  I was relying on the salesman’s word, not combing over the contract.  It’s amazing how similar the swimming pool business can be.  The building price has now doubled in cost and I’m mad as Hell.  My project manager acts if he has no control, he doesn’t know what the salesman told me, and it’s not his problem.  I demand to speak with the President of the company, and it’s not going to happen.  I finally get a hold of the Vice President, and he does give me a discounted price on the components, but still my project is over budget.  He guaranteed that the building would be in my hands by June 12, 2011.  That date is two week past the salesman’s delivery date, and I need this building completed due to my wife and I are having our first child sometime in July.   

I receive the blueprints, everything seems to be fine, and then I receive a phone call from the shipping manager claiming that the freight cost was going to be $2,000.00 since they cannot find a joint shipment to the Carolinas from Colorado.  Well, shouldn’t have they figured that out before now?  Again, I call the VP wanting to know what that was all about, and warned him that we agreed on a new price and I wasn’t going to pay a dime more than we discussed.  After threatening attorneys and BBB complaints, he informed me in writing that they would absorb the freight charge. 

That’s where we stand today, and hopefully my building will arrive in time.  I do have my doubts and will discuss this later, but this is the same bait and switch tactics that some custom pool installers play in our industry.  Salespeople receive their pay as soon as a swimming pool is excavated.  They will tell you anything to get you to sign a contract.   Once the contract is signed, you will not hear from them again.  You will get assigned a project manager, and most likely you will get approached with change orders and unforeseen issues that are initially left out so that the contract price looks appealing.   Once the pool is excavated, what are you going to do?  Most of the time the contractor knows that most custom swimming pool clients have the money to spend, so they know they will get paid to continue or stop construction.  Most companies have large advertising budgets, so they don’t rely on word of mouth referrals.  Their phone will continue to ring based on billboard, radio, internet, and yellow pages ads. 

I have a completely different approach to building swimming pool project, which starts with dealing with one person, the president of company from start to finish.  I recently received a referral from a past client from 2004 to their neighbor across the street.  We walked across the street to view the pool I built years ago and was very impressed with the upkeep my clients have provided over the years.  I explained to my new clients the procedures for designing the pool and made clear statements that my pricing will include allowance for rock removal (which they warned me about), soil removal, complete waterproofing, proper plumbing size and distance from the pool to the equipment pad, etc.  They received a complete turn key price which included options that they may or may not want or have budgeted for.  If they were to compare my proposal with other companies, we may by thousands of dollars difference.  I know that I can build the project for my price, and I know if I did not receive the project, another company would end up charging the same, if not more for the completed project.  I rely on referrals like this example, and normally they already know what to expect based on the referral client’s experience with Falling Water Custom Pools, Inc.  Hopefully, my new clients and Falling Water Custom Pools, Inc. will become a good match and we can move forward with their project. 

I hope that my bad experience with my building and my dedication to truthfulness in sales for my own company strikes some reality for you who read this.  Don’t think that you are receiving a deal if the price is lower.  In many cases the highest, more through estimate may have less of a margin and may be your best deal. I fault myself in not dealing with a local company for my project, and have recently found that I could have worked with a more locally owned steel building company, but they did not pop up on the internet.  This has been one of my largest purchases beside my home, and I have learned my lesson.  Unfortunately, they same as happened to swimming pool cusumers who will never own another swimming pool after the experiences that they have encountered.  Do your homework, deal with a honest company and if you make the right decisions, you will get a well built project that it fair to both you and your contractor.      

Consumer Education - The start of a new beginning.

It's time to educate consumers about the real issue regarding the major purchase of a custom gunite swimming pool in the Charlotte, NC and surrounding areas of Cabarrus, Iredell, Union, York and Lancaster counties.  I have witnessed numerous project exceeding $100,000.00 only to have major renovations or in some cases, customer's selling their homes to get out of a failed swimming pool project.  This can be solved by my education blog and the discussions on the reality of our unique industry.  I do not believe that anyone deliberately wants to build a faulty project, but I do know that the temptation to sell an "over the top" project does get some companies into some trouble. 

I started Falling Water Custom Pools, Inc. 10 years ago in 2001.  I was young and thought I knew everything about swimming pool due to my previous nine years of experience in the business.  Yes, I understood the concept of building custom swimming pools and built many wonderful projects.  To date, I have built over 200 swimming pool in the Charlotte area for many celebrities, athletes, and upscale clients. 

When you deal with swimming pools, a minor construction issue that you would find on home construction becomes a major swimming pool issue.  For example, let’s say your new kitchen countertops settle slightly and a hair line crack that you really can’t see appears between the backsplash and the countertop.  What happens? Nothing!  Do you call your builder? No!  Is their a problem cooking your meals?  No!  So now the same issue arises with your new glass tile installation on your spa.  What happens with the hairline crack?  1) We have a leak; 2) white scale called efflorescence begins to leach out starts to stain the tile.  Is this an installation issue with the pool contractor?  No, it is a natural occurrence that no one has control over.  Pools are exposed to extreme temperatures and weather conditions, unlike the interior of your house. 

Here is the good news!  With proper education and the builder wanting to provide the best they can for the client, there are many flexible waterproofing products that can prevent this issue and provide a long lasting profession installation.  But, the builder needs to address this and sell the proper products and charge the correct labor rates to build the pool correctly.  We are going to address all of these issues, step by step in this blog.  As an educated consumer who is willing to spend the money to have your own paradise in your backyard, you should be willing to spend the appropriate amount to build a project correctly the first time.  With that said, apples to apples comparisons are extremely rare in our business.  You are going to talk to only a few types of builders: 1) Salesmen who don’t care (give me my commission). 2) The builder who doesn’t know. 3) The builder who gets it and wants to do the best he can.  It’s pretty simple when you think about it.

I’m looking forward to many discussions about different aspects of construction including: plumbing, rebar, tile installation, grades of stone, etc.  There will be no competition names used in my charlotte swimming pool blog, but we will study cases where projects went wrong and what was needed to correct and it some cases, can’t correct.  I also want to be very clear on this statement, “I don’t know everything!”  This business is a daily learning curve and I try to improve on every new project, the pool I built last month is better than my personal pool, and the project that I will build in six weeks, I plan on trying another new product to help improve all projects in the future.  That’s the best part of construction; you always have the opportunity to do better.