Tips for retailers and pool builders on how to make more money

by Sally Bouorm | June 1, 2013 9:23 am

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By Connie Sue Centrella

All indicators show optimism for growth in new pool construction this year. Home sales are up; foreclosures are down, and in some markets, home supply is at an all-time low, so the demand is there. Homeowners are ready to invest in additions to their homes, including renovation and new pool construction. Pool contractors must be ready to meet the demand. Customers are looking for new and innovative features that use the latest technologies and are energy efficient. They also want added value. Gone are the days of traditional rectangles and classic roman-end pools; prospective pool buyers are visualizing unique designs while remaining eco-friendly by reducing energy use. Therefore, it is the aquatic industry’s responsibility to offer prospective pool owners the best products available in the marketplace, while still being able to remain profitable.

Get smart with technology

Consumers are doing their ‘homework’ by surfing the Internet for innovative pool equipment. Therefore, in order to achieve maximum profits, it is important to know what the customer has in mind when making the initial sales call.

Getting smart means being able to understand and explain the value of hydraulics such as increasing pipe size to reduce friction loss; offering variable and multi-speed pumps as up-sell items (providing the energy saving potential can be explained to the customer properly); and obtaining pool audits from suppliers and manufacturers to include in sales presentations.

Added value can also mean shifting one’s thoughts about pool heating equipment. For instance, gas heating has higher efficiency ratings; however, the customer can be up-sold on the use of heat pumps as a ‘proactive collector of solar energy.’ For customers who want additional lighting fixtures included in their pool, the use of specialty lighting, such as today’s light-emitting diode (LED) equipment, can be used to further impress customers during the sales presentation.

Having a safe, healthy pool environment is also important to every pool owner. With this in mind, another way to enhance profits is by adding a salt chlorine generator into the pool sale. By explaining how this equipment provides a continuous feed of chlorine to the pool and makes water maintenance easier, the customer will appreciate the concern towards providing them a safe and healthy bathing environment. Also, be sure to present safety options, such as alarms and fencing, which provide layers of protection. Do not forget, fencing can also be incorporated into the design as a decorative feature.

During the sales presentation, talk to the homeowner about the features and benefits of each product being added to their pool as the key to gaining a competitive advantage over other pool retailers/builders is knowing more than them and being able to educate the customer.

Listen to the customer

Never start a sales presentation with a preconceived idea of what the homeowner wants in a pool design. Listening more than speaking is the goal; however, be sure to ask a multitude of questions to better understand what they are envisioning. Then, sit back, listen, and take notes. People take pride in their personal pool environment and want something unique that will set their backyard apart from their neighbours. Additionally, this is the opportunity to design/build a project that differentiates the company from its competition.

To do this, investigate early on in the presentation for what the client is seeking and what they want to achieve. For example, are they family oriented or entertainers? Family oriented pool buyers want more shallow waters for their children to play, as well as more steps and benches. On the other hand, entertainers are looking for more illusionary options along with expansive decking areas, and firepit features.

Pool design education and training is encouraged

‘Water in transit’ is the industry’s relatively new buzz phrase with respect to pool/spa design. It refers to a number of water-feature focused construction techniques that will work for almost any project. However, before offering one of these design features on a project, education and training is important to not only understand how they work, but also to comprehend the various construction techniques involved (e.g. surge tank installations, pitch tolerances for vanishing edges, and suitable stone facings and decking) based on different project sites.

For example, vanishing edge pools can even be installed on a flat plane. In fact, they can be built to function in most terrains. Other innovative construction techniques that can add illusion and reflection to any pool project include perimeter overflow systems and ‘wet decks.’ Another unique design idea is a beach-entry pool with an additional ‘sun shelf.’

However, do not throw caution to the wind. Before venturing into these unique construction techniques, know the material and labour costs involved. When bidding on these projects, add more than the traditional markup for these designs as this increases their value and overall profits.

Adding value to increase profits

Spillover spas, waterfalls, interactive water features all add value to the design and overall profits. Homeowners may not think of these additions; therefore, these options should be presented to the customer in the sales pitch.

Interior surfaces can also add additional value. White marble plaster has shifted to exposed aggregate or coloured quartz finishes, while fully tiled interiors are also gaining interest. Once again, the key is to understand the prep work involved and the proper swimming pool chemical start up procedures.

Finally, fire and water combinations draw focal points to the outdoor environment. Customers can be encouraged to look at these added features by creating a picture in their mind of cascading waterfalls, exotic auras, and sensations. When incorporating fire features into a swimming pool design, keep in mind the potential for wind and bad weather conditions. Therefore, design safety and consideration of emergency shut off devices should be top of mind.

Take advantage of technological advancements

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Today, design software has become an integral piece of the puzzle in new sales presentations. There is an array of computer-aided design (CAD) software available. Incorporating this technology into a sales presentation can further differentiate a company from its competitors. One precaution for those using CAD drawings to illustrate the details of a project to the client is to never leave the drawing with the homeowner as they may use it to shop around the ideas it presents.

Further, websites should always be upgraded and the content kept current. As stated earlier, homeowners interested in purchasing a swimming pool often search the Internet for various design options and features as well as to learn about the latest equipment and accessories currently available. Therefore, websites should promote innovative pool designs, present ideas, and discuss technologies.

The final bid

The key to maximizing profits and enhancing the bottom line is to have a realistic picture of how much the proposed pool will cost before presenting the final bid. To do this properly, a job cost model is strongly encouraged. It is important to calculate not only the direct material, subcontractor, and labour expenses, but also any hidden and overhead costs. Factor in the time spent on the job, transportation costs, and add freight to all ordered accessories. Map out the construction plan from start to finish and consider obstacles as a cost. Understand that downtime is also a cost; therefore, following up with suppliers to avoid any wasted time and effort imposed by a delay in delivering materials.

Last but not least, do not match a competitor’s price. Be proactive and not reactive by planning projects thoroughly—from start to finish—keeping the intended profit margins in mind.

 

 

Connie Sue Centrella is a professor and department chair for the online Aquatic Engineering Degree Program at Keiser University eCampus. She was honoured with the Evelyn C. Keiser Teaching Excellence Award ‘Instructor of Distinction’ and holds certification as a chief sustainability officer for the Team Horner Group. Centrella is an industry veteran with more than 40 years of experience in the aquatics field. She is also a former pool builder with extensive knowledge in pool construction, equipment installation, and manufacturing.

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