Engineered quality for high-end homeowners

Sam Zeitoun has no tolerance for cutting corners. Long before he started landscaping, he worked as a civil engineer designing retaining walls (and other structures) and monitoring construction for quality control for the Argonne National Laboratory. At Argonne, he was responsible for quality control on the $1 billion Advanced Photon Source research facility project.

Sam understands the reasons behind design specifications and what will result if corners are cut. So when he launched Olive Grove Landscaping, Inc., he had a real edge on other commercial retaining wall builders – or so you would think.

It's curious how construction knowledge and quality are critical qualities for hiring a commercial wall engineer. But for a commercial wall builder, Sam found that construction knowledge and quality take a back seat to low bid – so much so that he no longer builds commercial walls because he can't compete.

And, odd as it may sound, the commercial engineer's commitment to quality turned out to be more well suited to high-end residential clientele, people who value quality as much as Sam does. Today, Olive Grove is focused on designing, building and maintaining residential outdoor living spaces for the well-to-do.

Sam says you can gear your company to have the best service, the best quality or the best price. "We believe you can only achieve 2 out of the 3. We focus on quality and service. We moved away from competitive bid projects because we're not going to win. When a job is awarded based on the quality and the value, we win.

"We're not trying to be the largest company or the fastest company or the company that lays the most brick within a year, or even the cheapest company. We're trying to be the best company. We are trying to build a name and create an image for ourselves, a brand that people will seek out and say 'I want Olive Grove to do my project.'"

'That's a great company'

No doubt engineering knowhow impresses clients. You're going to win people over when you can walk onto a property and identify drainage or structural problems and authoritatively explain how you will fix them.

Sam applies his engineer's standards for quality beyond building structures to his entire organization. Everything about Olive Grove is geared toward providing the highest quality experience for his target clientele, and he's working a long term plan to further entrench his company in this market.

"We sell the total package. From the first minute we show up to the minute we finish and walk away from the project, our goal is to leave our customers with the sense that 'Wow. That's a great company. I'm really happy I found them and hired them to do my project.'"

"We're selling something no one else can offer. We're selling our design which will be structurally sound, very functional and entirely geared towards their tastes, wants, needs – and perhaps most importantly, improve their quality of life to spend more time outside in a healthy environment with family and friends. Another company won't have the same quality, the same skilled labor. And they don't have me. I am going to be very responsive and address every issue a customer may have."

The company takes a number of steps to ensure they leave people with a positive feeling:

• Olive Grove offers a quality guarantee they call Peace of Mind. "If we design it, build it and maintain it, it's guaranteed for life including plants, hardscape, even sod. With our work standards we rarely have issues with hardscape installations. But we will stand behind our work."
• Olive Grove guarantees satisfaction. "If, at the end of the day, a customer is not happy with something, we don't argue even if we disagree. We will redo it. I've done this many times where I went over hours and lost money. But I can say that customer was satisfied. Satisfied customers are the key to our future."
• Olive Grove is moving into a new 7 1/2 acre facility in St. Charles, IL, the heart of the high-end homeowner market they serve. Being close, they'll be able to serve it better.
• Now, this one's controversial so it's covered more extensively in the next section: Sam emphasizes quality, not production hours.
  

Quality, not production hours

Sam avoids stressing the need to meet production hours. He believes if you push production hours, employees are tempted to make up time by taking short cuts. So he pushes quality, service and hard work instead. Just the same, he says his crews do bring most projects in within the estimated hours.

"If we do go over hours, it's probably an issue with excavating, underestimating some special item or maybe bad management of the job. You can't blame the crew.

"I always tell my crews, 'We need to do this right.' We teach a certain way, and we do all projects that way. It becomes instilled in our people. And I know, for example, backfill will be compacted properly in 2" to 3" lifts. But if I tell them, 'You have to get so many feet of wall done in a day,' they might compact in 1' lifts to go faster. My guys don't do that. With all the walls we've built, we've never had a failure, and we don't want one."

Working hard

Sam says maintaining a positive company culture is the key to getting employees to work hard without emphasizing production hours. "I let them know that they are part of this company, that the success of this company depends on them building that job right and doing it efficiently. They have a stake in it. If that job is successful, it's going to bring us another project.

"I think the number one thing in motivating people is to treat them with a lot of respect. Everybody in this company is equal, from me to the laborer who just started yesterday. He just has a different job. I go with the guys and watch soccer games, to sport bars and watch a game. We have barbeques where everyone relaxes. They know there are certain expectations of them, but they're treated like friends, not like employees. No one is going to yell and scream at them here.

"You will see it in their attitude. Our guys are happy. They're very respectful to customers, and customers are thrilled with them. They keep the jobsite clean. They like working for our company and love what they do. And they work very hard."

Quality comes at a price

From the beginning Sam has been frustrated that the landscape industry doesn't charge for site consultations or designs. Engineers charge for their time and expertise as do contractors in many other industries. About 7 years ago Sam attended a seminar where Vander Kooi consultant Joe Palimeno explained how he charged for designs.

"Joe had an impact on me. I was thinking 'Yes, it can be done in the industry. I'm not the only one who believes this.'"

In 2004 Sam went forward with a plan to start charging consultation fees for initial site visits and design fees. It wasn't easy.

"People in my own company said, 'No Sam, this is wrong. Nobody is going to go with us.' I had to convince the receptionist and everyone who took calls. They have to believe in it to make it work. If they don't believe it, you're not going to sell it. I couldn't convince one designer and he left."

Sam says at first maybe 10% of those who called in would not pay the consultation fee. But he questions how many of those would have ultimately become their construction client had there been no fee. Today, the economy makes charging a fee more challenging. But he plans to stay the course because he believes in it.

To make the fees more palatable, Olive Grove credits the $75 consultation fee if the client signs a design contract. Then, they will credit the design fee if the client signs a construction contract. Most referral clients accept the fees for the level of service/quality they expect. Charging fees actually boosts the value of their work in the client's eyes, and the company wastes very little time on tire-kickers.

"When people tell me they have 3 other companies coming out offering free designs, I explain to them: First of all, there is nothing free in life. Obviously they're going to build in the cost somehow. Then I sell the value of our services, 'We're going to spend time on your project applying our knowledge and expertise. We're going to generate 3D plans and even a movie where you can tour your backyard from different angles. We're going to give you a masterpiece based on your needs and your lifestyle and what you ask for.

"The fees are a commitment by the customer to work with our company. If someone is willing to pay $1,000 for a design for example, we know they are serious about us. Now we do whatever it takes to make sure we win that customer. Our closing ratio is a lot higher 80%-90% when someone pays the fee and has us do a design. It's also a lot higher when they agree to the $75 consultation fee.