WorldWide Drilling Resource

Ronnie’s Real World Here’s something everyone should be looking at and guess who is concerned about it? you answered correctly, Justin Hammond, that’s who. So young, and yet so very intelligent. Future & Current Landscape of Water Well Drilling Chapter 4 Justin Hammond, Martin B. Hammond Co. Ltd. Justin has learned a great deal from the ground up, through his education at Sir Sandford Fleming College, and from his family. I feel certain this part of his story came from watching his family and other drilling contractors throughout his life. What is your take on it? Here is what Justin has to say . . . “‘Why can’t prices budge?’ is what we ask ourselves. Well, through my experience, I’ve learned the answer is simple - well drilling contractors are their own worst enemies. It turns out my family business has the reputation for quality work and premium service. I often have conversations with customers that choose us over our competi- tors, even though we may be slightly more expensive. The same reason I buy Apple iPhones over Blackberry devices, the upfront cost is more, but I get more for my money. Customers appreciate the detail we put into every aspect of having their water well drilled, they realize the long-term benefit of having the job done right, instead of the job done cheaper. We realize that ‘It takes years to create an excellent reputation, and five minutes to destroy it’, a quote from Warren Buffett. There are a few core business principles we follow. For example, we hardly ever lower our prices, and are very hesitant to give any discounts on any jobs. Our view is if you get a premium job done, that job deserves a premium price. you can’t simply walk into an Apple store and bargain with the salesperson for a deal on an iPad; and you shouldn’t be able to do the same with a local business next door. We also never deal for [unrecorded] cash. What is the good of the cash? We can’t pay bills, we can’t buy inventory, we can’t buy new equipment, or pay employees. We can’t put it in the bank and reinvest it back into the business at all. In business terms, in my books, cash under the table is dead money, messing up your books and taking up your sock drawers, leaving you looking behind your shoulder for the CRA (Canada Revenue Agency). Set a premium price for your quality of work, and let your business enjoy what it right- fully earned instead of stealing from your own business. Price cutting is a race to the bottom; and striking under-the-table cash deals are two of the reasons not all well drilling contractors are good business people . . .” To be continued next month . . . This truly is, Ronnie’s Real World . . . 38 MAY 2018 WorldWide Drilling Resource ®