This year marks the 40th anniversary of Water by Design, a family-owned business with four locations across Virginia, including Roanoke, Lynchburg and Christiansburg. The company has evolved into one of the region’s most respected hot tub retailers, thanks to the vision and entrepreneurial spirit of Paul Madden Sr. and his son, Paul Madden Jr.
Water by Design’s origins date back to when it was known as Industrial Piping Products Inc. The company’s early focus was on plumbing supplies, but fate intervened when a hot tub salesperson walked into the plumbing showroom.
“He said I would be an amazing hot tub salesperson — which I’m sure he would have said to anybody sitting in front of him — but I believed him,” Madden Sr. says.
The company leaped into the hot tub industry, and after selling three tubs before they even arrived, they never looked back. “Selling plumbing supplies was a necessity,” Madden Sr. says. “Selling hot tubs was a luxury — a totally different mindset — and I liked everything about it. We stuck with it and have done really well.”
One of the most unique aspects of Water by Design’s success is the relationship between Madden Sr. and Madden Jr., which thrives on mutual respect and a willingness to embrace change.
“I always say I’m the yin to his yang,” Madden Sr. says. “I’ve always valued his opinion; when you have two different avenues to look at something, you come up with the right answer.”
Madden Jr., who had no initial plans to remain in the family business, joined full-time after graduating in 2008 and struggling to find a job.
“I had a marketing degree and all of these ideas, and [my dad] was very open to [allowing me] the opportunity to initiate stuff, which kept me interested,” Madden Jr. says.
Madden Sr. couldn’t be happier with how things worked out.
“What he has done with this company is remarkable,” Madden Sr. says. “I’m probably the only person who says that the 2008 recession was the best thing that ever happened to this company because I acquired my partner.”
I’m probably the only person who says that the 2008 recession was the best thing that ever happened to this company because I acquired my partner.”
Paul Madden Sr., Water by Design
But like many businesses, Water by Design has faced its share of challenges. The 2008 recession could have been a major hurdle, but the company was small enough to weather the storm.
“We weren’t a large conglomerate that had to make so much money,” Madden Sr. explains. “I [just] had to make enough to pay the bills.”
Fast forward to the COVID-19 pandemic, and Water by Design faced an entirely different kind of challenge — keeping up with skyrocketing demand.
“We were able to purchase our 3-acre headquarters facility in Roanoke because the pandemic skyrocketed [sales] — it was crazy good,” Madden Jr. says.
Despite the success, the post-pandemic slowdown created another hurdle — retraining salespeople who were hired at the height of the sales boom.
“We had to hire people throughout the pandemic to keep up with demand, and now we are retraining them to see how it’s really done and what the downtimes in the business are really like,” Madden Sr. says.
At the heart of Water by Design’s success is its people. The Maddens firmly believe in hiring for personality over skill.
“You can teach good personalities anything,” Madden Sr. says. “We have such a good crew with a good mindset. It’s not just a bunch of people who come in for a paycheck — it’s a fun, happy place to work.”
Madden Jr. echoes this sentiment, noting that they’ve developed a hiring process that focuses on core characteristics like teamwork, dependability and creativity.
“We went over our vision statement, mission statement and core competencies, and then we looked at the employees who were already successful and broke down their characteristics,” Madden Jr. explains. “We came up with interview questions that would test those personality traits. So every time we’re interviewing somebody, it’s more about their personality and how well they fit.”
This emphasis on people has fostered a positive workplace culture, which both Maddens agree is crucial to the company’s longevity.
“We created an environment we want to come to every day,” Madden Sr. says.
As Water by Design celebrates its 40th anniversary, the future looks bright. With four locations and a strong leadership team, they continue to innovate while staying true to their roots. Madden Sr., who has gradually stepped back to let his son take the reins, doesn’t see himself fully retiring anytime soon. “I love going to work,” he says.
For the Maddens, the key to long-term success lies in their willingness to embrace change and take advice from all sides.
“It’s a unique kind of person who has a business for 40 or 50 years,” Madden Sr. says. “[Short-term owners are] not the ones who will have the same longevity and friendships and camaraderie that us older dealers do.”