The Sixteenth Annual AQUA 100

Look around today and you'll notice some pretty big changes. That 20-ounce soda that used to be called a large is now a small. A plain-old station wagon was once considered roomy enough for a family trip to Florida, but today's family travels in a big, burly SUV, preferably a Suburban-sized one. Even Wal-Marts are being replaced by Wal-Mart Supercenters, which are leaving the dead husks of regularsized Wal-Marts scattered across the nation. The AQUA 100, for one, remains steadfast in its belief that bigger doesn't necessarily mean better. Things like customer service, store design and quality workmanship are still far more important than size around here.

While companies on the list come in all shapes and sizes, all can claim to be among the best in the business. Companies that didn't make the list can perhaps learn something from these paradigms of pool building, spa selling and service. That's the real value of the AQUA 100.

In addition to welcoming 24 companies to this year's list, AQUA is recognizing five new Hall of Famers, companies that have consistently won spots on the prestigious list.

We hope you enjoy this year's AQUA 100 section and ask you to join us in congratulating the winners.

2005 inductee

BACHMANN POOLS & SPAS, LLC  

The Bachmann Construction company has been building and remodeling homes and renovating historic buildings in Madison, Wis., since 1954. In 1985, Fred and his brother Al Bachmann became interested in hot tubs. "They bought some for themselves and their friends, and that made them dealers," says Pete Papineau, Bachmann Pools & Spas' general manager. "They put one in the construction office, then they decided to open a store, and it evolved into what we have today.

"When I started we had one service guy, one sales guy and Fred's mom. She did the books. We were in the same location but only had a third of the space."

Within five years, Papineau recalls, things had changed dramatically. They'd added a separate service center and warehouse and remodeled the showroom and added staff. In 2002, Bachmann opened a store in Janesville, about 45 minutes south of Madison. The company has also added above-ground pools, casual furniture and more to round out its offerings.

The secret to Bachmann's success. According to Papineau, it's as simple as treating customers well, selling a good product and backing it up with a good service department.

But having service isn't enough, he says. You also have to make sure the service department doesn't drag you down.

"Our focus for the last few years has been giving good service, but also making money at it," Papineau explains. "You're always going to have broken hot tubs, but you might not have someone walking into the store to buy a new one. And if people aren't spending money on new stuff, they're going to be spending money fixing their old stuff.

"We're striving to stay in the service industry. We don't just sell stuff and then forget about it."

Today Fred Bachmann is the sole owner of Bachmann Pools & Spas and is building on the good name the family has established. And that name certainly is an asset in Madison. "Fifty years of name recognition helps," Papineau says.

Location: Madison, Wis.

Principal: Fred Bachmann, owner

Founded: 1985

Outlets: 2

Employees: 16 year-round, 18 in-season

Products Sold: above-ground pools, portable spas, chemicals, pool/spa equipment, saunas, gazebos, casual furniture, toys

GREAT ATLANTIC POOLS, SPAS, PATIO, FIREPLACE

Rich Werber, president of Great Atlantic Pools, Spas, Patio, Fireplace, got into the spa and pool business like many of his peers: by sheer luck. "My partner was a contractor, and he went out to California go see his brother, who had a hot tub. Well, he decided he wanted one, but when he got back here he realized he couldn't get one anywhere but California.

"One thing led to another, and after one too many beers we decided to open a hot tub store in Virginia Beach.

"You couldn't buy one other than by mail order from the West Coast, so we started buying the raw redwood, building them ourselves and selling them through our own retail store."

Of course, back then awareness of hot tubs was relatively low east of the Pacific Coast, Werber says, but Great Atlantic's location did provide one benefit.

"We're in a fairly dense military market and one of the early favorable factors was that we were getting a lot of officers from California, so that allowed for some early success," Werber says.

The company continued making hot tubs until the early1980s, when self-contained portable spas made their way to the East Coast. "When we saw them we recognized right away that they were a better product," Werber says. "And it wasn't a construction job anymore."

Werber says he sold Jerico Spas at first then switched to Watkins in 1983 when Jerico closed its doors.

Though he's been selling Watkins for over 20 years, he still gets an occasional service call on an old redwood model, though such calls are getting to be rare and he sees fewer and fewer of them every year. That's not to say they've completely disappeared, though.

"We had brass plates made that we put on every one of our redwood tubs," Werber says. "One Sunday we went to church and on the altar is a big redwood hot tub with our name on it filled with water for a baptism."

Werber waited until after the service and talked to the person whose idea it was to bring in the tub. "This guy said he had a wooden vessel that would work and everyone thought, 'Why not?'"

The biggest surprise may have been that after all those years, the tub didn't leak.

Location: Virginia Beach, Va.

Principals: Richard A. Werber, president; Eileen S. Werber, vice president

Founded: 1978

Outlets: 4

Employees: 26 year-round, 30 in-season

Products Sold: vinyl-liner pools, above-ground pools, portable spas, chemicals, pool/spa equipment, saunas, gazebos, casual furniture, toys, grills, hearth products, tableware, garden accessories, patio islands/bars, residential and commercial service

MARYLAND POOLS

Maryland Pools was founded in 1949 by Jerry Weiss, a small residential pool builder who gradually grew larger and moved into commercial pool construction. In the mid-1970s, Mort Spero, the father of current company vice president Bob Spero, became a partner in the business. Soon after, Bob Landon joined the company, and the three of them ran the company until Jerry retired in the 1980s.

"We grew and grew, and as we did we moved into larger locations and became a bigger, regional company," says Bob Spero. "I took over for my father seven years ago when he semi-retired."

The elder Spero still works for the company, and despite his "semi-retirement" is still Maryland Pools' leading salesperson.

"He's 76 years old, so he brings a wealth of talent and information to all of us," Bob Spero says. As for Landon, who currently serves as Maryland Pools' president, don't expect him to join his former partner in semi-retirement anytime soon.

"Bob Landon still enjoys the business and plans on sticking around indefinitely," Bob Spero says.

The company owes much of its success to an idea that's gained currency in recent years, but has been a part of Maryland Pools' way of thinking for many years.

"We're not just building a pool, we're designing a backyard," Bob Spero says. "We like to say we build outdoor additions. It'll be a place where kids will play, where adults will entertain. We try to exceed our clients' expectations, which I think we do."

Another factor, Spero adds, is the company's affiliation with the Master Pools Guild.

"You get to learn alongside some of the best builders in the industry. We've been in it for 25 years," Spero says. "You try to imitate success. We've tried to do the right thing as we've grown and have tried to foster an image of treating our clients better than anyone else could."

But, like the rest of the builders in the Master Pools Guild, beauty takes a backseat to an even more important factor at Maryland Pools.

"We want it to be safe, first of all." Bob Spero says. "Then functional and aesthetically pleasing."

Location: Columbia, Md.

Principals: Robert Landon, president; Bob Spero, vice president

Founded: 1949

Outlets: 2

Employees: 50 year-round, 200 in-season

Products Sold: gunite pools, indoor pools, decks

OREGON HOTSPRING SPAS, INC.

We were always kind of a rebel," says Wilfried Mueller-Crispin, president of Oregon HotSpring Spas in Beaverton. "We've always tried new ways of doing business.

"We've never had sales. It's always been, 'This is the product and this is the price,' and we've gotten a lot of referrals because of that. People appreciate that kind of honesty. And if we see something that's not right, we'll make it right even if it's not outlined in the fine print."

Those rebellious business practices have been a hallmark of the company, which last year celebrated its 25th anniversary.

"It was kind of a coincidence," Mueller-Crispin says of how he got into the business. A friend of his knew of a hot tub company that was going bankrupt, and MuellerCrispin took it over, paid off the debts over time and developed a deep customer base.

"We just sort of evolved from there," he says. "We had a handful of manufacturers we represented — in-ground mostly. We sold two to three wooden ones, probably six brands of in-ground shells and one brand of portable hot tubs.

"In 1982 we were approached by Watkins. One of the founders came around with a motor home and a trailer loaded with a spa. He and his wife said, 'Wilfried, we hear you have a fantastic reputation.'"

This was Watkins' third attempt to get him to sell their product, and he wasn't going to give up easily.

"He said, 'This is the last time I'm going to call you. Try it for 30 days and if you don't like it, I'll leave you alone.

"I have a mechanical engineering background so I checked it over and we decided to drop all the other lines."

Always the rebel, Mueller-Crispin was going against conventional wisdom, which said a spa dealer couldn't be successful selling one brand, one model, in one color.

"Everybody else at that time was selling in-grounds, and we were selling these 'dog-dish' models.

"We're still selling them today, but obviously HotSpring has added a lot of different models and different options."

Mueller-Crispin may have gotten into the business by accident, but his success is anything but accidental.

"We've always given people a higher level of service and have been there when they needed us for anything," he says.

Location: Beaverton, Ore.

Principals: Wilfried Mueller-Crispin, president; Deanna MuellerCrispin, strategic planning

Founded: 1979

Outlets: 6

Employees: 27 year-round, 27 in-season

Products Sold: portable spas, chemicals, gazebos, toys, residential service

WILDWOOD AQUATECH POOLS INC.  

Wildwood Aquatech Pools didn't start out in the pool business at all. It was a landscape company that was approached by a couple of clients that wanted them to try their hand at pool-building.

"That's how we got our feet wet, and, well, one thing led to another and it just grew from there," says company president Jeff Kearns, an original employee of the firm who took over the reigns in 1980.

"A couple of the early pools were in new areas, and as new people moved in they asked who did their yards. We ended up getting so many calls for swimming pools that it became our primary business."

Though Wildwood stopping doing landscaping in 1975 to concentrate on building pools, the company's early experience gives them a distinct advantage over ordinary builders, Kearns says.

"People like to work with one company that can do it all," he explains. "They have one company they can call so they don't have two or three generals in the same yard.

"We don't necessarily pick out the plant material at this point, although we could. But we'll put in the trees and shrubs and that helps our sales presentation."

In the late-'70s, after about four years in the pool business, the young company began to struggle as interest rates soared and demand for new pools sunk. Between 1978 and '79, contracts dropped from 168 to about 50, and Kearns' boss decided to step aside.

"We didn't want to fold the company, so I stepped in and completed the pools that were under construction," Kearns recalls. "Then I took the money from those and acted on the leads we had. I was already well-versed on the construction side, and I became the salesperson, too."

In the early years of Kearns' control, competitors would use the company's near-death episode and financial difficulties against him. He took to calling the company Wildwood II to signal its new beginning and soldiered on.

Those difficulties are a distant memory for the company, which today specializes in the types of difficult projects others don't want to get involved in, according to Kearns.

Networking has also been hugely beneficial to Kearns. "There are people in the industry with a world of knowledge," he says. "They're just a phone call away."

Location: Fresno, Calif.

Principals: Jeff Kearns, president

Founded: 1972

Outlets: 2

Employees: 25 year-round, 30 in-season

Products Sold: gunite pools, indoor pools, renovations, commercial pools, residential service

AQUA POOL & SPA Location: Modesto, Calif.

Principals: Richard Townsend, president; Gregg Whitley, general manager Motto: The customer comes first Founded: 1989 Outlets: 7 Employees: 375 year-round, 400 in season AQUA 100 Appearances: 4 Products/Services: gunite pools, renovations, residential service Status report: Modesto, Calif.-based Aqua Pool & Spa merged with Vintage Pools last year and became the highest-volume builder on this year's AQUA 100. General manager Gregg Whitley also credits a new designing and building process and the company's strong renovation and service division for last year's 50 percent increase in gross revenues. For 2005, he's expecting another 15 percent jump thanks to strong referrals. Plans for 2005 include a new design and retail center.

Best thing I did for my business in 2004: We increased the products we offer and merged with Vintage Pools.

Tip For Success: The customer is No. 1, so treat them with the utmost respect. Also, treat your employees with respect and deliver a high-quality product on time.

AQUALAND POOL, SPA & PATIO Location: Bowling Green, Ky.

Principals: Darri Pinerola, president; Dino Pinerola, vice president; Jerry Mefford, general manager Founded: 1982 Outlets: 1 Employees: 10 year-round, 14 in season AQUA 100 Appearances: 4 Products/Services: vinyl-liner pools, fiberglass pools, portable spas, above-ground pools, saunas, chemicals, equipment, toys, residential service Status report: AquaLand, which makes its fourth appearance on the AQUA 100, saw sales of in-ground pools increase dramatically after adding fiberglass pools and a dedicated inground salesperson in 2004. Spa sales also increased thanks to an additional 1,600 square feet of spa showroom space.

Above-ground pools, on the other hand, suffered from what sales manager Chris Irvine described as horrible weather and an intensification of local competition. For 2005 the company plans to increase its focus on in-ground pool sales and to increase its advertising expenditures.

Best thing I did for my business in 2004: We hired an inground pool salesperson full-time and we expanded our spa showroom.

Tip For Success: Be organized, manage your schedule, stay on task, be focused, have good employees and retain them, and give 110 percent in season.

CLAFFEY POOLS Location: Southlake, Texas Principals: Charlie Claffey, president; Shelly Claffey Broder, vice president; Brian Claffey, secretary/treasurer Motto: Quality is our commitment to you Founded: 1987 Outlets: 1 Employees: 52 year-round, 52 in season AQUA 100 Appearances: 3 Products/Services: gunite pools, indoor pools, commercial pools, renovations, chemicals, equipment, casual furniture, toys, grills Status report: "When you do quality work and service the customer, revenues will snowball," says Charlie Claffey, president of Claffey Pools, which saw revenues rise by a robust 20 percent in 2004. This year the company plans to expand by opening another office and to increase its ad budget. Claffey says he expects revenues to increase again in 2005. The reason. "We are not planning on changing our philosophy and we have great employees," he says.

Best thing I did for my business in 2004: We shortened our objective time frame.

Tip For Success: Treat every customer like you treated your first customer and become passionate about your pursuit of quality.

COLLEY'S POOLS & SPAS Location: Hamburg, N.Y.

Principals: Jeanine Colley, Scott Colley, co-owners Motto: Escape to your backyard Founded: 1963 Outlets: 3 Employees: 20 year-round, 75 in season AQUA 100 Appearances: 5 Products/Services: gunite pools, vinyl-liner pools, indoor pools, commercial pools, renovations, portable spas, aboveground pools, saunas, chemicals, equipment, gazebos, casual furniture, toys, grills, holiday items, ATVs, snowmobiles, propane, residential service, commercial service Status report: Bad weather dampened in-ground sales in 2004, but the company plans to increase its sales staff this year and expects revenues to grow by about 5 percent. The company put its advertising budget in the hands of its retail operations manager, who plans on doing more television advertising. The company's best advertising, however, is its customer base and the referrals they give. Chemical sales, which increase every year, are helped by Colley's free delivery.

Best thing I did for my business in 2004: We started to install and renovate in-ground gunite pools.

Tip For Success: Put the customer first.

The AQUA 100: State-By-State It seems that every year the AQUA 100 comprises more companies from Texas than any other state, so we decided to take a look at where this year's winners and the AQUA 100 Hall of Fame came from. It's no surprise that the Lone Star State came out on top, but the fact that it's home to nearly twice as many as runners-up California and New York is sure to raise some eyebrows.

CONTEMPORARY WATERCRAFTERS Location: Gaithersburg, Md.

Principals: Howard Weiss, president Motto: Making poolside living easy Founded: 1982 Outlets: 2 Employees: 23 year-round, 33 in season AQUA 100 Appearances: 5 Products/Services: chemicals, equipment, casual furniture, toys, grills, residential service Status report: This Gaithersburg, Md., company, which concentrates on service and equipment installation, renovated its retail showrooms and closed one location in 2004. Revenues dipped slightly in 2004, and the company plans to focus on building its infrastructure rather than increasing sales in 2005, so it expects revenues to remain steady. Chemical sales for 2005 should increase, though, as Contemporary Watercrafters plans to increase prices.

Best thing I did for my business in 2004: We renovated our showrooms and identified and marketed to our most profitable clientele.

CUSTOM POOLS BY GREGG MOON/TEXAS HOT TUBS Location: Conroe, Texas Principals: Gregg Moon, owner and president Motto: Perfection is our goal. Excellence will be tolerated.

Founded: 1985 Outlets: 1 Employees: 5 year-round, 6 in season AQUA 100 Appearances: 1 Products/Services: gunite pools, indoor pools, commercial pools, portable spas, above-ground pools, saunas, chemicals, equipment, gazebos, toys, play systems Status report: Gregg Moon had been building pools for almost 20 years when he decided to open a retail store and sell hot tubs and above-ground pools in 2004. The first year went well, but he's looking for an even better 2005 as referrals increase and ads attract new customers. He plans on keeping the new retail location as-is until 2007, when he'll expand it. Sales of inground pool sales rose 20 percent thanks to an improving economy and new relationships with home builders, Moon says.

Best thing I did for my business in 2004: Opening a retail store (Texas Hot Tubs).

Tip For Success: Strive to be the best at what you do, and take care of your customers.

Wageworker Woes Have a hard time finding good workers.

Whether or not you have trouble finding good employees, or keeping them from jumping ship, it's good to keep a few things in mind. First off, even though everyone wants a bigger paycheck, that in itself isn't going to keep most people from browsing through the help wanted ads. Here are some non-monetary ways, suggested by AQUA 100 companies, to develop happy, devoted employees.

  • Invest time in training, education and employees' welfare.
  • Foster a friendly, positive work environment.
  • Compensate employees well not only in salary and benefits, but

also in flexible work schedules.

• Provide monetary sale incentives and bonus plans to salespeople.

Respect and treat employees as members of the team.

• Listen to and implement their suggestions and ideas. Even pay staffers for ideas! • Provide consistent training through vendor seminars, trade shows, product videos and in-house training. "There is a direct correlation between taking our staff to trade shows, seminars, etc, and tripling our sales over a period of six years," says one executive.

  • Try to provide year-round employment.
  • Keep things fun but focused.
  • Provide them the opportunity to recommend improvements.
  • Praise your employees for a job well done and reprimand when

they do a poor job.

  • Treat your people with respect and always listen.
  • Recruit employees from factories with higher skill levels when needed

and recruit other workers from temp agencies.

• Whether it's in sales, service or administration, employees want to work with a winner and be part of the team.

  • Treat them well and offer good training and opportunity for advancement.
  • Maintain good communication.
  • Hire on integrity, not only ability.
  • Take time to train your employees. Give them responsibility, encourage them, correct them and respect them. If they feel important and like a part of the team, they will become an asset to

your company.

• Be upfront with new employees, paying and treating them with respect and assuring them that they are "part of the family."

  • Hire the best-quality people and train for the position.
  • Give them feedback on performance by recommending improvements and noting a job well done.

"It takes everyone to make this business work," said one executive. Keep that in mind and let your employees know that's how you feel, and you'll have a lot easier time than your competitors at finding and keeping workers who'll help your business, not just show up for a paycheck.

Up To The Challenge Rising materials costs. Lack of qualified labor. Escalating insurance premiums. Everyone in the spa and pool business faces certain challenges, even those companies that are on top of their games. Here's a sampling of the feedback this year's winners gave us about the biggest challenges the industry is facing today.

• Increase in material costs, increase in insurance and regulation by building departments • Frivolous liability suits, lack of professionalism and the high cost of raw materials • Bad builders without licenses. There are far too many "pool builders" that have no construction knowledge.

  • Recruiting, training and unreasonable legal challenges
  • Too many start-ups out to make a quick dollar in the pool business. They assume it's good money because the guys who've

stuck it out for years are doing well.

  • Negative publicity about product
  • Product branding and company branding
  • Getting the public to appreciate the talented and professional

skill required to be successful in our industry • Maintaining the professional image and competitive edge that distinguishes us from mass merchants and other retailers • The low prices, low quality and poor customer service of Internet retailers • Convincing people to spend their income for their backyard rather than boats, RVs and vacation homes.

  • Labor costs, liability and the image of our industry
  • Pricing and job costing. We need to select products and price

them fairly, so we can both attract and keep customers and maintain profits.

• The fluctuation in weather patterns in the Midwest. I know we can't control Mother Nature, but can we have a hot summer, please.

Degrees Of Difficulty Hill Country Conundrum River Oaks Pools in San Antonio, Texas, faced quite a challenge in building this pool project. Because of the adjacent home's sloping backyard and the homeowner's wish for the pool and patio to be on the same level, workers had to add 4 to 8 feet of loose fill and a steel-reinforced concrete "cradle" to support the free-form pool, spa and waterfall.

"The loose fill had to be excavated and removed at the beginning of the project and a cradle was engineered with an 18-inch perimeter beam — 2 feet into the natural grade — around the entire pool," says owner Dan Pendley. "In addition, there was a 24-inch-wide beam through the center cross-section of the pool and lengthwise in the deep end.

There were two tons of 60-grade #4 steel rebar and one ton of #5 steel rebar used or these beams, which required 85 yards of 4,500-psi concrete. Number 4, 60-grade steel dowels were stubbed out of the cradle to be used to tie the steel cage."

After the concrete cradle cured, the company constructed the free-form pool on top. But, again, concessions had to be made because of the site. "We had to double the steel and gunite requirements because there was no natural support for the pool, the water and the boulders we used for the waterfall," Pendley explains.

Because of the pool's doublethickness, the customer had to basically pay twice what he would have paid had be bought a home on a level lot — a rarity in Texas Hill County.

"That cost is on top of the concrete cradle, which cost about as much as an ordinary pool itself," Pendley says. "Some of what we did was probably overkill, but we'd rather over-engineer it than take any chances."

Guiton's Vs. The Volcano If you're ever building a pool by a volcano, remember to bring some heavy excavating equipment for the dig.

Just ask Dale Simpson, president of Redding, Calif.-based Guiton's Pool Center. He built a pool for a customer near a volcanic mountain that required a Caterpillar 330 excavator with an 8,000-pound hydraulic hammer.

"We had to use that for 10 days because of a lava cap rock formation," he says.

$6 Million Mansion When it landed a job at a $6 million estate in Westlake, Texas, Claffey Pools had to find a way to build a masterpiece poolscape in keeping with the architecture of the house while battling the yard's elevation changes.

"The spa/waterfall was created with custom-designed cast-stone coping, which mixed effectively with the stone veneer of the house," says Shelly Broder, vice president of Claffey Pools, Southlake, Texas. "The two copper bowls were customspun by a local company to create a unique and elegant water feature.

"Because we wanted the pool to step up with the custom stone coping, we were challenged with effectively concealing the skimmer rings and auto-fill devices. Our solution was architectural columns with custom-built cast-iron doors."

The project wouldn't be complete without the two custom-designed fountains flanking the sides of the perfectly centered pool.

ERICKSON CUSTOM POOLS & SPAS, INC.

Location: Clermont, Fla.

Principals: Nils Erickson, president; Dave Allen, general manager Motto: Fun — family — paradise Founded: 1984 Outlets: 3 Employees: 50 year-round, 60 in season AQUA 100 Appearances: 3 Products/Services: gunite pools, fiberglass pools, indoor pools, commercial pools, portable spas, swim spas, chemicals, equipment, gazebos, casual furniture, toys, grills, hearth products Status report: Erickson Custom Pools & Spas spends more money on advertising than almost any other company on this year's AQUA 100, and judging by the company's healthy growth in 2004, the message is getting through to customers. General manager David Allen believes next year will be another good one. "We can't possibly have four hurricanes again," he says. Plans for this year include adding a service department and remodeling.

Best thing I did for my business in 2004: Relocating our Clermont location.

Tip For Success: Stay focused and constantly follow up. Stay on the cutting edge of technology for both products and processes.

FLOHR POOLS, INC.

Location: Chambersburg, Pa.

Principals: Mark R. Flohr, president; Frank R. Flohr, vice president Motto: We create your backyard vacation Founded: 1968 Outlets: 3 Employees: 25 year-round, 85 in season AQUA 100 Appearances: 6 Products/Services: vinyl-liner pools, indoor pools, portable spas, above-ground pools, chemicals, equipment, residential service Status report: Mark Flohr, president of Flohr Pools, plans to display more mid-priced portable spas in 2005, a strategy he believes will help the company sell more units. He also expects to see increased sales of both in-ground and aboveground pools, pointing to solid early bookings for the former. Chemical sales have gone up steadily and predictably every year, he says, but a major price increase for chemicals could dampen sales.

GUITON'S POOL CENTER, INC.

Location: Redding, Calif.

Principals: Dale Simpson, president; Skip Brown, vice president; Peggy McClary, secretary treasurer Motto: For people who care Founded: 1966 Outlets: 1 Employees: 42 year-round, 47 in season AQUA 100 Appearances: 5 Products/Services: gunite pools, indoor pools, commercial

pools, renovations, portable spas, above-ground pools, saunas, chemicals, equipment, casual furniture, toys, hearth products, residential service, commercial service Status report: Redding, Calif.-based Guiton's Pool Center plans to increase its advertising budget in an effort to reach new people moving into the area, according to president Dale Simpson. Company growth has slowed recently, he says, and last year unit sales of spas and above-ground and in-ground pools were down slightly. Still, good weather late in the season helped the company grow gross revenues by 3.1 percent.

Best thing I did for my business in 2004: We started to use CAD drawing programs.

Tip For Success: Invest in your employees and invest your time in the community you live in.

LUTHER STEM POOLS & SPAS Location: Fort Smith, Ark.

Principals: Luther N. Stem, Jr., owner; Luther N.

Stem III, president; Wendell W. Stem, vice president; Debra Stem, secretary/treasurer Motto: Where better pools are built, we build them! Founded: 1962 Outlets: 1 Employees: 31 year-round, 34 in season AQUA 100 Appearances: 4 Products/Services: gunite pools, indoor pools, commercial pools, renovations, portable spas, aboveground pools, saunas, chemicals, equipment, gazebos, toys, holiday items, residential service, commercial service

Status report: Luther Stem Pools & Spas is the oldest company on this year's AQUA 100, having opened for business in 1962. In 2004, the company's revenues grew by 3 percent, thanks to increased sales of portable spas and above-ground pools. "We add printed beaded liners to our above-ground pools for a more luxurious look," says Luther N. Stem III, president of the company. "And we have the best installer in the area, with 10 years' experience with us."

Best thing I did for my business in 2004: We had a catchy jingle made to hopefully bond customers to our company.

Tip For Success: Pay attention to detail and do more than you promised.

OCEAN SPRAY POOLS AND SPAS Location: Westhampton Beach, N.Y.

Principals: Joseph C. Musnicki, president Motto: Changing with the seasons Founded: 1981 Outlets: 3 Employees: 20 year-round, 35 in season AQUA 100 Appearances: 2 Products/Services: gunite pools, renovations, portable spas, chemicals, equipment, gazebos Status report: Ocean Spray plans to remodel two of its stores and add a fourth location in 2005, all of which should boost gross revenues by an estimated 20 percent, according to president Joseph Musnicki. Last year portable spa sales grew by a robust 15 percent thanks to Ocean Spray's large and growing referral base of customers and contractors. According to Musnicki, 40 percent of sales come from referrals.

Best thing I did for my business in 2004: We delegated more to our employees than ever.

Tip For Success: Surround yourself with professionals, give them authority and reward them accordingly.

PARAGON POOLS Location: Las Vegas Principals: Joseph M. Vassallo, president Motto: A model of excellence and perfection Founded: 2001 Outlets: 1 Employees: 9 year-round, 9 in season AQUA 100 Appearances: 2 Products/Services: gunite pools, indoor pools, commercial pools, renovations Status report: According to Joseph Vassallo, president of Paragon Pools in Las Vegas, his company built 60 percent more pools last year than the year before, and for 2005 he's looking to increase that number by another 20 percent. As America's fastest-growing city, Las Vegas certainly has a robust home-building industry, and it's Paragon's homebuilder program that Vassallo credits for much of his success in the high-end pool-building business. Another big factor is Paragon's public relations efforts, Vassallo says.

Best thing I did for my business in 2004: Moving the office to a new and bigger location.

Tip For Success: Make a professional presentation to your clients. Listen to what they want and deliver it to them.

POOL & PATIO CENTER, INC.

Location: Coventry, R.I.

Principals: Kenneth J. Stockley, president and treasurer; Annette M. Stockley, vice president and secretary Motto: Outstanding, outrageous & unexpected customer service since 1986 and We make it easy! Founded: 1986 Outlets: 1 Employees: 5 year-round, 30 in season AQUA 100 Appearances: 5 Products/Services: portable spas, above-ground pools, chemicals, equipment, toys, billiards, residential service Status report: Pool & Patio Center president Kenneth Stockley points to a growing customer referral base, effective advertising and home show exhibition for his company's 13 percent increase in unit sales of spas last year. "This was our fifth year selling portable spas and we are optimistic that we have not yet reached our potential," he says. Poor weather in the Northeast took a toll on above-ground pool sales. "We experienced only two days where the temperature reached above 90 degrees," he laments. Plans for 2005 include two new service vehicles and — since the company's lease expires in a year — a new retail location.

Best thing I did for my business in 2004: We continued to expand our service department by hiring and training four additional service staff members. Although we have always serviced the products we sold, we have aggressively expanded the service division of our retail operation in the past three years.

Tip For Success: Never, ever rest on your laurels. Be humble and continue to educate yourself and your staff. Make it easy! When you make it easy, you are giving your customers a gift — the gift of time.

POOLMAN OF WISCONSIN Location: Eau Claire, Wis.

Principals: Wes Wiedenbeck, president; Barb Wiedenbeck, vice president Motto: Families that play together stay together Founded: 1983 Outlets: 1 Employees: 7 year-round, 11 in season AQUA 100 Appearances: 2 Products/Services: vinyl-liner pools, fiberglass pools, indoor pools, commercial pools, renovations, portable spas, above-ground pools, swim spas, chemicals, equipment, gazebos, casual furniture, toys, hearth products, residential service, commercial service Status report: Eau Claire-based Poolman of Wisconsin had a competitor move into its territory last year, and that hamstrung in-ground pool sales.

That shouldn't happen again in 2005, though. "Their number has been disconnected and to the best of our knowledge they are no longer in business," says co-owner Barb Wiedenbeck. A new showroom and ad campaign last year helped with spa and above-ground pool sales, though, as the company's gross revenues increased by 10 percent over the previous year.

Best thing I did for my business in 2004: We strengthened our staff through additional hires and additional training.

We also sent out a gift of fudge packages to customers with self-addressed questionnaires.

Tip For Success: Always be fair and up front and honest with your customers.

Listen to their concerns, as they feel it's important. It is!

POOLS OF FUN Location: Plainfield, Ind.

Principals: Bruce Holmes, CEO Motto: We make dreams a reality Founded: 1981 Outlets: 5 Employees: 65 year-round, 75 in season AQUA 100 Appearances: 3 Products/Services: vinyl-liner pools, fiberglass pools, indoor pools, renovations, portable spas, chemicals, equipment, casual furniture, toys, grills, holiday items Status report: Pools of Fun had a good year in 2004, but after purchasing a fiberglass dealer in the area and increasing its visibility through advertising and marketing efforts, it's looking for an even better one in 2005. The local economy kept a lid on in-ground pool sales last year, but chemical sales increased due to the company's increased marketing and expanded retail stores.

Tip For Success: Serve all customers, both internal and external, as well as possible. Build a quality product with exceptional employees and success will follow.

POOLS PLUS, INC.

Location: Elizabethtown, Ky.

Principals: Fred and Linda Butler, owners Motto: Your outdoor store Founded: 1981 Outlets: 3 Employees: 20 year-round, 40 in season AQUA 100 Appearances: 3 Products/Services: vinyl-liner pools, renovations, portable spas, aboveground pools, swim spas, saunas, chemicals, equipment, gazebos, casual furniture, toys, grills, hearth products, residential service Status report: After five years, Pools Plus re-entered the construction business and saw gross profits increase by a healthy 25 percent. This year company officials are targeting growth of 20 percent and plan to debut a new marketing campaign and improved employee training to help achieve that goal. "We hired a marketing consultant to give us a more professional and consistent campaign," says owner Fred Butler.

Best thing I did for my business in 2004: We reorganized our personnel and brought in-ground construction back.

Tip For Success: Train and educate your employees — they are the face of your company!

POOLSIDE Location: St. Paul, Minn.

Principals: Rob Anderson, president; Jerry Theisen, president of Poolside in Eagan, Minn.

Motto: Backyard living at its best Founded: 1964 Outlets: 2 Employees: 25 year-round, 50 in season AQUA 100 Appearances: 3 Products/Services: vinyl-liner pools, indoor pools, commercial pools, renovations, portable spas, above-ground pools, swim spas, saunas, chemicals, equipment, gazebos, casual furniture, toys, grills, billiards, barbecue accessories, residential service, commercial service

Status report: Sales of above-ground pools have been declining steadily at Poolside, according to Jerry Theisen, who is president of the company's Eagan, Minn., location. In-ground pools and portable spas sold well in 2004, though, which helped the company's gross profits stay steady.

"That's good considering we had a cold summer," he says. Business at the main store in St. Paul is so good Poolside is planning to expand it in 2005.

Best thing I did for my business in 2004: We added a new spa line.

Tip For Success: Going the extra mile for customers has benefited us tremendously over the past 40 years.

PRECISION POOLS AND SPAS Location: Chandler, Ariz.

Principals: Kevin Woodhurst, president; Pam Woodhurst, vice president Motto: Excellence is all we do Founded: 2003 Outlets: 2 Employees: 10 year-round, 14 in season AQUA 100 Appearances: 1 Products/Services: gunite pools, renovations, equipment, residential service, commercial service Status report: In its second year in operation, Precision Pools and Spas tripled sales of in-ground pools. Not satisfied, president Kevin Woodhurst expects sales to double again in 2005.

A new design center this spring and additional staffers should help the company achieve its goals. Unlike many of his peers, Woodhurst hasn't had a hard time attracting and keeping good employees, which is another factor contributing to his optimism for the 2005 season.

Best thing I did for my business in 2004: We added staff.

Tip For Success: Commit yourself and organize for excellence. Don't worry about what others are doing, carve your own niche.

RIVER OAKS POOLS, LP Location: San Antonio, Texas Principals: Dan Pendley, president; Jim Wannamaker, general manager Motto: Designs of distinction Founded: 1984 Outlets: 1 Employees: 65 year-round, 65 in season AQUA 100 Appearances: 8 Products/Services: gunite pools, renovations, import pottery, residential service Status report: An increasingly experienced sales and construction staff, along with an improved economy and favorable interest rates, were factors in River Oaks Pools' 20 percent increase in in-ground pool installations last year, according to Jim Wannamaker, general manager. He looks forward to a similar increase in sales and revenues in 2005 thanks to additional demo pools and water features and additional salespeople.

Best thing I did for my business in 2004: Focused on commercial pool sales.

Tip For Success: Put together a team of employees and contractors that are dependable and provide quality work.

ROBERTS POOL AND SPA Location: Omaha, Neb.

Principals: Jesse and Marcy Roberts, owners Motto: A passion for service, a commitment to excellence Founded: 2001 Outlets: 1 Employees: 17 year-round, 21 in season AQUA 100 Appearances: 2 Products/Services: gunite pools, vinyl-liner pools, fiberglass pools, indoor pools, commercial pools, portable spas, above-ground pools, swim spas, saunas, chemicals, equipment, gazebos, casual furniture, toys, grills, tanning beds, residential service, commercial service Status report: According to manager Mary Greise, Omaha, Neb., had only one hot day last summer, and that hurt sales of in-ground and above-ground pools slightly. Spa sales also dipped a little. Looking to bolster those sales figures, the company plans to increase its advertising, remodel the store and step-up training efforts. "We turned our wet test room into a lifestyle room offering customers the choice of using our spa, tanning beds or sauna," Greise says.

Best thing I did for my business in 2004: We began to offer financing on our in-ground pools.

Tip For Success: Stay focused on understanding your customers' needs, exceeding those needs to achieve customer loyalty.

SABINE POOLS & SPAS Location: Lake Charles, La.

Principals: Joey Tassin, Dean Tassin, David Tassin, owners Motto: Backyard living at its best! Founded: 1975 Outlets: 4 Employees: 72 year-round, 72 in season AQUA 100 Appearances: 5 Products/Services: gunite pools, vinyl-liner pools, indoor pools, commercial pools, renovations, portable spas, aboveground pools, chemicals, equipment, gazebos, casual furniture, toys, grills, play systems, residential service, commercial service Status report: A recovering economy and the addition of casual furniture should help Sabine grow gross revenues in 2005, according to advertising director Koni Benoit, who plans to increase ad expenditures to get the word out about the new product line. Other changes in 2005 will be the addition of a less-expensive line of above-ground pools, a move aimed at combating what Benoit calls an influx of discount inflatables in the company's market.

Best thing I did for my business in 2004: We expanded our product lines.

Tip For Success: Train every team member to keep this as his or her goal: Make it easier for each customer to do business with you than not.

WESTPORT POOLS Location: Maryland Heights, Mo.

Principals: James Bastian, chairman; Doug Caton, president; Wayne George, vice president; Bert Forde, vice president; Dave White, director of business development Motto: The design and installation of signature pools Founded: 1967 Outlets: 1 Employees: 84 year-round, 114 in season AQUA 100 Appearances: 6 Products/Services: gunite pools, indoor pools, commercial pools, renovations, chemicals, equipment, residential service, commercial service Status report: Westport builds both residential and commercial pools, using different marketing approaches for each. Trade shows work best for drumming up commercial business, while target marketing is most effective for generating sales of residential pools, according to Dave White, director of business development. Chemical sales skyrocketed by 25 percent in 2004 after the company took on a commercial sales rep.

Best thing I did for my business in 2004: We restructured our administrative hierarchy.

Tip For Success: By relying on our management expertise, we have learned how to truly listen to our clients.

WOLTER POOL CO., INC.

Location: Beloit, Wis.

Principals: Russ and Pat Wolter, owners Motto: A family owned business serving families since 1965 Founded: 1965 Outlets: 1 Employees: 6 year-round, 14 in season AQUA 100 Appearances: 2 Products/Services: vinyl-liner pools, indoor pools, renovations, portable spas, above-ground pools, swim spas, saunas, chemicals, equipment, gazebos, casual furniture, toys, grills, holiday items, candles, hammocks, chimes, residential service Status report: This Beloit, Wis., builder and retailer marks its 40th year in business in 2005, and plans an anniversary celebration, which company officials believe will help boost sales. Better weather in southern Wisconsin will also help, according to owners Russ and Pat Wolter. Sales of in-ground pools rose in 2004 due to increased advertising. This year Wolter will focus on technology, as inhome controls, fountains, automatic covers and perimeter fiber-optic lighting take on a bigger role in the company's projects.

Best thing I did for my business in 2004: We hired an advertising and promotion director.

Tip For Success: Train and maintain a good, honest workforce. You can have the best store in the best location, but if you don't have knowledgeable and friendly employees, customers will go elsewhere.

YEAR ROUND POOL COMPANY, INC.

Location: Bluffton, S.C.

Principals: Frank X. Fotia, president Founded: 1980 Outlets: 3 Employees: 180 year-round, 180 in season AQUA 100 Appearances: 6 Products/Services: gunite pools, indoor pools, commercial pools, renovations, portable spas, above-ground pools, chemicals, equipment, toys, residential service, commercial service Status report: According to Chad Perrine, director of marketing and retail operations for YRPC, the key to a successful ad campaign is frequency, not size. Perrine uses a mix of television, radio, e-mail, newspapers and direct mail to reach potential customers, and in 2005 he plans to increase expenditures to reach a wider market.

Rising local real estate values and competitive financing rates helped the company's gross revenues grow by 5 percent last year.

Best thing I did for my business in 2004: Hiring and training new salespeople.

Tip For Success: When you give deserving employees the empowerment to make decisions on their own you get happier customers as well as happier employees.

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