Swimming pool builders are seeing a decrease in their new construction leads, sakes, and revenues. This is forcing them to adjust to their day-to-day operations. They have two options: reduce overhead, or replace lost revenue with less affected services.
It can be difficult to reduce overhead because it could mean laying off long-term employees, friends, and even family. Finding other services can be more appealing. In this situation, it is logical for a pool builder to get involved in pool renovations. This is a good idea for a number of reasons.
First, pool renovations remain in high demand. In the United States alone it is expected that almost one million pools will require some form of renovation this year. In that virtually all staff and infrastructure can be reused for renovations, there is a direct link between them and new pool construction. Lastly, many pool builders and suppliers offer products that can be used to renovate pools.
MAKE IT PAY
Although it’s an attractive option that looks great, it can be difficult and costly. A pool builder must make this transition because they may know how to renovate a pool, but not how to create a profitable renovation business.
Renovating pools is a completely different beast than new construction. These can be more difficult due to the wide range of variables involved. You may also inherit pre-existing conditions or discover deficiencies after work starts. These incontinences can cause scheduling conflicts, warranty issues, and unhappy customers.
Pool renovations are a great opportunity to make a profit. They take less time and can be paid faster. Because there are generally more projects, and less-sophisticated companies competing for them, it is easier for builders to capture a significant amount of the local market.
Let’s now discuss a transitional plan that builders can use to scale up or add new renovations. This plan covers two essential elements that are required to make a pool renovation business profitable and efficient: customer acquisition and production.
CUSTOMER ACQUISITION
There are three types of customer acquisition: lead generation, sales, and reviews. Let’s start with lead generation. This is the main problem for contractors. They often have several companies that do different parts of their lead-generation that aren’t strategically aligned.
One company may be doing SEO and another Google PP. Another managing Facebook. Yet another posting content on social media. And yet another printing ads. This is just a small example of the chaos that can occur. Marketing chaos.
Another option is to interview several companies and choose one person who will control the entire strategy. This includes messaging across all channels and tactics. This integration will create alignment and coherence, better lead volume, consistent results, and ultimately lower the cost per acquisition for new clients.
Sales is the second part of customer acquisition. Once you have increased your lead flow, the next step is to convert those leads into high-margin clients.
We see a lot of problems in the pool industry. The salesperson often walks into the home to pitch customers cold. This is not ideal as the entire responsibility falls on the salesperson. They must build a relationship, answer questions, develop a solution, present your products, tell your company’s story and explain why you are better than your competitors.
If so, follow-up is initiated. This repetitive process can cause inconsistency, fatigue, burnout, and ultimately turnover if it is repeated multiple times per day for every prospect. This can also be a disservice for your customers as they might not be getting the full story.
It is better to pre-sell to prospects in the critical time between the appointment being set and the prospect actually meeting with a salesperson. The prospect is at their best, as they are in their element searching for answers and being excited.
What can you do? Create a learning module that includes videos, downloads checklists, planning guides, planning guides, product brochures, and customer testimonials. This link can be sent to prospects immediately following their appointment. It can also be included in the confirmation email. The learning module can be used to help you learn.
can be shared with other decision makers in the house. This powerful strategy will help you stand out from your competitors and convince your potential customers that you are the best choice.
Once you’ve completed the renovations for your customer it is important to make them an advocate who will tell others about the positive experience.
You are a business owner and you need to know the proper procedure for finishing a job. However, you also need a way to get customer reviews. These can be in the form of a video testimonial, an online rating or simply an honest review about their experience with your company. A formal rewards program can make a big difference.
You will make every customer feel great after the job is done, even if there were some bumpy patches. People forget what you said and what you did. These memories fade over time. But what they will remember is how you made their feel. Let them feel grateful, thankful, and happy about their company.
PRODUCTION
Let’s say you have now integrated your marketing and created a learning module. This is sent out to all who book an appointment with your sales team. You are receiving many great referrals and reviews. You are seeing an increase in sales, so you need to make sure that the work is done efficiently.
Production focuses on three areas: process management, project management, and profitability.
A swimming pool renovation can be complex, time-consuming and expensive. To ensure the best outcome of your renovation project, you need to have current processes and documented workflows. This will help to avoid delays and ensure that every step is completed according to plan. Regular updates to workflows and processes can help you identify potential areas for improvement, increase efficiency, and reduce project timelines.
Documented workflows can also be used to establish clear communication between customers and team members to ensure that everyone is on the same page.
The way the project is started is a major difference between renovations and new construction. The builder usually sends the first crew to a new pool. They may install erosion fencing, strip the area, or start the layout.
However, in renovations, the field inspector or superintendent should conduct the initial staging together with the customer, and then a complete 21-point inspection. This inspection serves two purposes. It is used to review the details of the agreement and check for any unforeseen defects. Surface delamination, cracks in bond beams and shell fractures are all examples. Broken main drains, rusted light holes, and broken main drains are also possible.
If there are any deficiencies, you can add high-margin, additional items to your scope of work. You can offer the customer multiple options: Your company will do the work for a longer fee, they can get estimates from other contractors (which is almost never the case), or they can sign off that they don’t want additional work and assume all liability.
Project management is the next step in production. For pool builders to achieve great results, they should use completion certificates at the end of each stage. Ask the customer to sign them and rate the workmanship. It’s important that any problem is addressed immediately so it doesn’t become a collection issue. This will help crews be accountable for their work, keep the site clean and make cleanup easier.
A customer should also complete an online review of the work. This will increase the number of positive reviews as well as your overall score.
Profitability is the third aspect of production. You can increase profits per project by considering several issues. First, convert your in-house staff to work flat rate or on projects per hour. It will be a great tool for motivated hustlers. It is possible to increase your profits by charging more for certain items, such as engineering plans, permits and dump and disposal fees. It’s amazing how little items such as these can add up. Simply add language to your agreement stating that these items will be charged at the cost of the final bill.
Finally, and most importantly, when you collect your draws, profitability is key. Our clients should change the terms of their special offers or free items. This is contingent on timely payment. Customers who want to alter the payment terms or keep money in reserve at the end of the project may lose any discounts, special offers, or free items. This gives a company great leverage and often eliminates the need to chase money.
These best practices can help pool builders ensure that renovations are completed on-time, on budget, and to the highest possible standards.
This article was first published in AQUA Magazine’s March 2023 issue. It is the best resource for builders, retailers, and service professionals in the spa and pool industry. All industry professionals can subscribe to the magazine for free. Subscribe by clicking here
