In 2001, Scott Kellogg’s dream of owning his own business became a reality when he founded Kellogg Contracting Inc.
In his high school and college years, he worked side jobs that kept his hands busy and built his muscles. After college he spent 10 successful years in his dad’s insurance office, refining his customer service, communications, networking and people skills. He still uses all those skills daily, and every day his business success grows.
Kellogg started his business in Franktown, Colo., with a particular insight. “I realized that builders subbed earthmoving tasks to several contractors, and this created jobsite coordination issues,” he says.
His vision was to offer a unified menu of services, improve coordination, and eliminate administrative issues. He describes his approach as a “one-stop dirt shop.”
Located about 35 miles southeast of Denver, and working in a 75-mile radius, the firm works mostly on onsite systems for homes in the range of $750,000.
In that market, his customers expect and demand more from all of the building trades. “Profession-alism must show in every customer contact, from the initial call through the delivery of the as-built drawings,” Kellogg says.
In 2008, he added septic system maintenance services by buying an established company. Today, the installation business includes about 60 percent new installations and 40 percent repairs. The service side performs 60 to 70 pump-outs and 10 to 15 system inspections per month.
Entrepreneurial spirit
Creating the business was a natural for a young man who has a business management degree from Ft. Lewis College in Colorado. Kellogg first knew the joy of working for himself doing “side work” during high school and college. He found it fulfilling to satisfy others’ needs and work outdoors.
Kellogg knows he must show meticulous attention to quality and detail in all customer interactions. These attributes first become evident in his written proposals. “The days of handing a customer a proposal that is a sketch and a number on a napkin are over,” he says. “Our proposals are professional in appearance. We incorporate a level of detail that actually educates the customer.”
By including line-item pricing, Kellogg can avoid price shock when unexpected circumstances affect the final tally. He points to the “rock clause” that explains how the use of more rock than expected affects total project costs. Line-item pricing lets him make use of every income opportunity, while keeping customers fully informed. It addresses the what-ifs upfront and helps him avoid “eating” unanticipated costs.
Proposals for system repair work are itemized. Repair work customers shop price. “There is not a lot of room for price flexibility for these projects,” Kellogg says. “Even so, there is no reason to be less professional simply because it is a repair project.”
He finds communication with all involved parties essential. “Our preference is to collaborate with the designer from the outset,” he says. If unforeseen challenges arise, he is instantly on the phone to the designer and, if necessary, with the regulator, until the issue is resolved.
Regardless of the job, these attributes carry over to field work. “From start to finish, we take care to do it right the first time,” Kellogg says. “We are not a one-day wonder, and we do not want to be called back to a job because we took a shortcut or missed a detail.”
Recognizing opportunities
Entrepreneurs recognize and capitalize on opportunities many others miss. “Onsite system installation is a niche enterprise that requires specialized knowledge and techniques,” Kellogg says. “In the early years, only 10 percent of our work was with onsite systems. Less than seven years later, about 45 percent of our business is onsite system-related. We expect that percentage to increase.”
The company has welcomed innovative and alternative onsite technologies and readily adds them to the toolbox. Drip irrigation systems using tubing from Geoflow Inc. supported by controllers from SJE-Rhombus and electronic components from Septronics let Kellogg offer new treatment solutions.
Kellogg is recognized by Orenco Systems Inc. to install its AdvanTex treatment units. The company also installs gravel-less technologies from Infiltrator Systems Inc. in gravity and low-pressure distribution configurations.
These technologies require knowledge and skills that Kellogg and his employees gain through training sessions sponsored by the Colorado Professionals in Onsite Wastewater (CPOW), a NOWRA affiliate. Manufacturer-sponsored training is another source of education.
Growth and diversity
In early 2008, Kellogg bought Douglass County Septic, a septic tank pumping and service company. “I made that acquisition in anticipation of a slowing construction market,” he says. “Homeowners will always need service and maintenance. I believe I can double the size of our onsite services business.”
Douglass County Septic, with a longer history than Kellogg Contracting, has a 3,800-client book of business. In both enterprises, repeat business is good. Callbacks are not, and Kellogg works hard to prevent them.
“We are considering the consolidation of our onsite services under the Douglass County Septic banner,” he says. “General excavation would remain with Kellogg Contracting Inc.” This would allow each business to focus its strengths, enable intra-company referrals and further build the companies’ client bases.
Already, Kellogg markets onsite services to homeowner associations and has secured contracts for dozens or even hundreds of homes in a single sales and marketing effort. The approach works whether the association has charge of a single community system, several cluster systems, everyone’s individual system, an NPDES-permitted small treatment plant or any combination.
Kellogg presents onsite system workshops for plumbing contractors who understand pipes and pumps but do not know soil or advanced treatment units. When plumbers recognize that there is a learning curve and a new body of knowledge to master, Kellogg hopes he will get ATU-related service referrals.
A good relationship with designers, who in Colorado are regulated by counties, is another referral connection that brings business to both of Kelloggs’ enterprises. In his service area, he is on several designers’ preferred installer lists. A designer’s referral is a “foot in the door” to a long-term relationship with a new homeowner.
Personnel strength
Kellogg doesn’t do it all alone. Dannette Steck, office manager for both companies, keeps the work flowing in the right directions. She is taking on more marketing responsibilities, including cold-calling to develop both pumping and installation work. Kellogg sees her doing more such work as he spends more time on other office and field tasks.
Mike Oliver, onsite installation foreman, directs the occasional day laborer and the two college students who have worked for Kellogg for several summers. Brad Metzger, excavating supervisor, spends 10 to 15 percent of his time on onsite projects and the rest on general excavating. Rafael Miranda, vacuum truck operator and onsite system repair foreman, joined Kellogg with the Douglass County Septic acquisition.
Supporting the crew is a diverse equipment roster that includes two Bobcat skid-steers (Models 863G and 873G). A John Deere 624J four-wheel-drive front loader and a Case CX80 excavator do the heavy lifting. A Bobcat 341k mini-excavator and a 1998 Case 660 trencher, with laser-directed hydraulics for elevation control, also help the work get done. For elevation control, the company relies on three Topcon lasers.
“What we do not have is a wheeled backhoe,” Kellogg says. “I prefer tracked equipment for its lighter loading rates. That lighter loading minimizes soil compaction.”
Always a professional
Kellogg’s personal history and business approach are indistinguishable. Without sacrificing quality or professionalism, he does what it takes to get the job done while balancing customer expectations in changing markets.
“Most customers do not recognize the amount of office work needed to support an installation,” he says. “They want to see me working on their property, doing their project.” And that is where he is most comfortable.
Kellogg’s ability to spot opportunities, recognize overlooked niches, and turn obstacles into advantages continues to lead him to business growth and personal satisfaction.
