Building for Disruption: How Cove.tool Undercuts Traditional Consultants by 75% Without Racing to the Bottom

Building for Disruption: How Cove.tool Undercuts Traditional Consultants by 75% Without Racing to the Bottom

Real disruption means making someone uncomfortable. If your value proposition doesn’t threaten established players, you’re probably not solving a problem that matters. Sandeep Ahuja, CEO of Cove.tool, embraces this reality. His company charges a quarter of what traditional sustainability consultants charge, delivers in one week instead of four to six, and maintains quality that wins 70 of the top 100 architecture firms.

In a recent episode of Category Visionaries, Sandeep shared the philosophy and mechanics behind building a business model that fundamentally undercuts incumbents without sacrificing quality or margins. The strategy isn’t about being cheaper — it’s about being structurally different.

The Disruption Mindset

Most founders worry about making competitors angry. Sandeep sees it as validation. “I honestly believe that if you’re not making anyone uncomfortable, you’re probably not creating something that’s entirely too valuable because no one actually probably needed it,” he explains.

This perspective reframes discomfort as a signal rather than a problem. If established consultants feel threatened by your pricing and speed, it means you’re solving a real problem in a meaningfully better way. If everyone is comfortable with your entry into the market, you’re probably not different enough to matter.

“I think that if you’re creating something that someone needs and that need has somehow been filled to some degree by someone, and if you’re making it better, if you’re making it faster, if you’re making it lower cost, if you’re making it higher value, someone’s not going to be happy about it.”

This isn’t disruption for disruption’s sake. It’s accepting that genuine innovation inherently threatens those who profit from the status quo.

The Economic Equation

Traditional sustainability consultants charge approximately half a percent of a building project’s cost and require four to six weeks for delivery. For large projects, this means significant fees and timeline pressure. The model works because it’s relationship-driven and expertise-dependent.

Cove.tool’s pitch is brutally simple: “Instead of hiring a traditional consultant, that’s going to, you know, take four to six weeks and charge you about half a percent of your building project cost, come to us, we’ll charge you a quarter of that, and we’ll do it in a week versus four weeks.”

That’s 75% cost reduction and 4x speed improvement. For architecture firms, the math is obvious. Even if quality were slightly lower, the value proposition would be compelling. But Cove.tool maintains quality, making the decision almost automatic for rational buyers.

The Structural Advantage: Sassified Services

The key question: how do you deliver the same quality at 25% of the cost? The answer lies in what Sandeep calls “sassified services” — combining AI capabilities, software automation, and human expertise in a fundamentally different operating model.

Cove.tool started as pure software, achieving massive scale. “We learned that there was such beautiful harmony in being able to support not 100 projects a year, which is what we did as consultants, but 100,000 projects, which is what our software now is able to support.”

But software alone couldn’t deliver the done-for-you experience customers increasingly wanted. The AI revolution changed what was possible. “We’ve gone from software to software and services that are AI powered,” Sandeep explains. “It’s just been fun to do the same services business, but it not be just relationship driven, but it be almost sassified services.”

This hybrid model uses software for standardization, AI for analysis and optimization, and human experts for oversight and complex decision-making. The result: service delivery economics that traditional consulting firms, built on billable hours and high overhead, can’t match.

The Market Timing Element

Disruption works best when market conditions amplify your advantages. Cove.tool’s aggressive pricing hits hardest during downturns. “The architectural billing index is kind of a good measure. It’s been down for four consecutive quarters,” Sandeep notes.

When budgets tighten, cost becomes a primary consideration rather than one factor among many. “Everyone is thinking about cost cutting, and everyone is thinking about making their practice more efficient. And we are that lower cost, higher value alternative, you know, in that circumstance. So it is more appealing, even with the timing.”

This creates a ratchet effect. Firms switch to Cove.tool during downturns for cost reasons. They stay during upturns because the service quality and speed create operational advantages beyond just price. Once you’ve experienced one-week turnaround instead of four to six weeks, reverting feels like self-imposed handicapping.

Managing Customer Expectations Through Risk Reduction

Aggressive disruption could trigger buyer skepticism. How can something be 75% cheaper and 4x faster without quality compromises? Cove.tool addresses this through their land-and-expand approach.

“It’s fine if they’re not giving us for their first project, their half a million dollar project. It’s okay if they only come to us with their $10,000 project, their $50,000 project, and we show them how wonderfully we can execute on that.”

By explicitly encouraging small initial engagements, Cove.tool lets quality speak for itself. Skeptical buyers can test the offering on low-risk projects. When execution matches promises, expansion becomes natural.

This approach solves the credibility challenge inherent in disruptive pricing. Instead of asking buyers to believe your claims, you let them verify through experience.

The Competitive Response (or Lack Thereof)

What makes Cove.tool’s disruption sustainable is how difficult it is for incumbents to respond. Traditional consultants can’t simply cut prices by 75% without restructuring their entire business model. Their cost structures — relationship-driven sales, manual delivery processes, premium positioning — don’t allow it.

Matching Cove.tool’s speed requires automation and AI capabilities most consulting firms don’t have. Building those capabilities takes years and requires different talent than traditional consultancies employ. By the time incumbents respond, Cove.tool has captured market share and moved into adjacent verticals.

The Vertical Expansion Playbook

Perhaps most threatening to the broader consulting ecosystem: Cove.tool views sustainability as just the first vertical. “There’s about ten different sub-verticals that surround this architect. We’ve just tackled the first sub-vertical,” Sandeep explains.

Architects work with mechanical engineering consultants, structural consultants, civil consultants — each representing an opportunity to apply the same playbook. “Really, over the next three to five years, we’re just scaling up the playbook that we’re perfecting with this sub-vertical into other sub-verticals within our space.”

This reveals the true scope of disruption. Cove.tool isn’t just threatening sustainability consultants — they’re building a platform to systematically undercut the entire constellation of consultants surrounding architects. Each vertical they enter faces the same value proposition: 75% cost reduction, 4x speed improvement, maintained quality.

The Long-Term Vision

Sandeep’s vision extends beyond even the ten sub-verticals surrounding architects. “I envision a world where Cove.tool is the de facto design professional that lowers the cost and design time across North America. So if you drive past any building that’s getting built, for you to know that was likely designed by Cove.tool, that is my vision.”

This isn’t incremental improvement — it’s reimagining how building design works. Instead of architects coordinating with ten different consulting firms, each with their own processes and timelines, Cove.tool becomes the single AI-powered design professional handling everything.

The Broader Lesson for B2B Founders

Cove.tool’s approach challenges conventional wisdom about disruption. Many founders try to disrupt by being slightly better or slightly cheaper. Sandeep demonstrates that meaningful disruption requires being dramatically different on multiple dimensions simultaneously.

Being 10% cheaper isn’t disruptive — it’s competing. Being 75% cheaper while also being 4x faster and maintaining quality is disruptive because it’s not achievable through optimization. It requires a fundamentally different operating model.

The lesson: if you want to disrupt, build structural advantages that incumbents can’t easily replicate. Combine technology, automation, and different cost structures to create value propositions that make the old model obsolete.

And when incumbents get uncomfortable? That’s not a problem to manage. It’s confirmation you’re building something that matters.