How Reputable Pool Builders Price Projects

Identifying “less-than-reputable” builders and some of their “less-than-reputable” practices has been our goal these past few weeks as we help educate you on how to choose the right builder.  Today we’re going to talk about the Good Guys – those reputable builders who’ve been in business for years and have great reviews and portfolios, and who can provide customer references, certificates of insurance and warrantees for their work.  Builders who are able to provide these things won’t be the cheapest, but they will stand behind their work and take care of their customers, no matter what.

So, they’re not the cheapest, but why?  The answer is simple: they don’t cut corners!  Now, how do they calculate those prices?  Let’s dive into that!

How Reputable Pool Builders Price Projects

Most pool builders typically use a structured pricing model to ensure transparency and cover their costs:

1. Material Costs – These generally account for 35-40% of the total project cost, including steel, gunite, pvc, filtration systems, and finishing materials.  A lot of the finishing materials can vary quite a bit in cost.  For example, a standard plaster finish is much more cost effective than an aggregate finish.  However, the longevity and durability of the aggregate will far exceed the standard plaster. 

2. Labor Costs – These represent another 35-40% and cover skilled labor for excavation, construction, plumbing, electrical work, and finishing.  Many pool builders will use multiple different subcontractors for multiple different phases of their projects, and they do this in order to save costs and meet schedules.  The Pool Man does use subcontractors, but we have partnered with the same subcontractors for years and they know the high standards that we uphold. 

3. Gross Profit Margin - The remaining 20-30% supports operational expenses (e.g., showroom maintenance, office personnel, utilities, insurance and employee benefits) and allows for a sustainable profit margin.  Obviously those builders we referenced earlier in this series of blog posts who work out of their garages don’t have the overhead that a larger company has, and therefore they are able to lower their costs.  They also won’t be able to provide you with a dedicated team of happy employees who will be there for you to help with your pool in any way possible!