E-241 Pool Nation Podcast: Pool Pros Beware: Tariff Shocks & Price Hikes That Could Ruin Your Bottom Line!

The Storm Is Coming: Why Pool Pros Need to Act Now

Picture this: You're cruising through another busy summer season, installing pumps, balancing chemicals, and keeping pools sparkling. But behind the scenes, a financial tsunami is building that could wipe out your profit margins overnight. New tariffs on imported goods are set to hit the pool industry hard, and if you're not prepared, you could find yourself working harder while making less money.

In a recent episode of the Pool Nation Podcast, industry veterans Edgar De Jesus and Zach Nicholas broke down exactly what's coming and how pool professionals can protect their businesses. The message is clear: the time to prepare is now, not when your costs have already skyrocketed.

Understanding the Tariff Impact: It's Bigger Than You Think

The new rounds of tariffs aren't just a minor inconvenience – they're a fundamental shift that will affect nearly every aspect of pool service operations. These tariffs are targeting imported goods from China specifically, with additional threats looming for products from Canada and Mexico.

These tariffs are really going to range anywhere from 20% to 50% increase on certain things, right? And it's not 20% to 50% on everything. Some things will get taxed more than others. But they're supposed to be hitting gradually over the rest of 2025 and 2026.

— Edgar De Jesus, Pool Nation Podcast

What makes this particularly challenging is the gradual rollout. Unlike a sudden price shock that forces immediate action, these increases will creep up over time, making it easier to ignore until it's too late. The products affected read like a pool service professional's shopping list:

• Pool chemicals (chlorine, algaecides, pH balancers, shock treatments)
• Equipment (pumps, motors, heat pumps)
• LED lights and automation systems
• PVC fittings and plastic supplies
• Testing equipment and tools
• Pool cleaners and robotic vacuums

The Hidden Costs: Beyond Products and Equipment

While most pool pros immediately think about direct product costs, the ripple effects run much deeper. Zach Nicholas highlighted a crucial point that many business owners overlook:

When we think tariffs, we think products, right? But this is going to potentially impact all areas of business. It's going to impact operational costs, things like that, because you start looking at your utility providers, and are they going to be impacted in some way because of whatever they use to deliver their service goes up in costs.

— Zach Nicholas, Pool Nation Podcast

This means your electricity bills, gas costs, uniform services, and even office supplies could all see increases. These smaller, seemingly insignificant cost bumps can add up to thousands of dollars annually – money that comes straight out of your profit margin if you're not tracking and adjusting for it.

The Rear-View Mirror Problem: Why Most Pool Pros Will Get Caught Off Guard

One of the most dangerous habits in business is reactive financial management – waiting until the end of the month, quarter, or year to assess your costs. Edgar De Jesus nailed this common mistake:

We tend to look in the rear view mirror. So, when we look at our expenses and we look at all those things, we look at them at the end of the month or the end of the quarter or the end of the half of the year. The problem is you're looking in the rear view mirror. There's nothing you can change at that stage.

— Edgar De Jesus, Pool Nation Podcast

This reactive approach is particularly dangerous during busy seasons when pool pros are working from sunup to sundown. It's easy to fall into autopilot mode, grabbing supplies without checking prices, assuming costs remain stable. But in today's environment, that assumption could cost you thousands.

Consider this scenario: A pump that previously cost $400 now costs $470 due to tariffs. If you install ten pumps over the summer without adjusting your pricing, you've just lost $700 in profit – and that's just one product. Multiply this across all your supplies and equipment, and the impact becomes staggering.

Proactive Strategies: Protecting Your Profit Margins

The key to surviving these tariff increases lies in proactive management and strategic pricing adjustments. Here are the essential strategies every pool professional should implement immediately:

1. Implement Real-Time Cost Tracking

Don't just grab your invoice and stuff it in your pocket. Make it a habit to review every purchase, even during your busiest periods. Set up a simple system to track cost changes on your most frequently purchased items.

2. Establish Regular Pricing Reviews

Instead of annual pricing reviews, move to quarterly or even monthly assessments. This allows you to catch and adjust for cost increases before they eat into your profits for an entire season.

3. Build Cost Escalation Clauses into Contracts

For larger projects or maintenance contracts, include language that allows for price adjustments based on material cost increases. This protects you from absorbing significant cost spikes on longer-term commitments.

4. Diversify Your Supply Chain

Work with your distributors to identify alternative products or suppliers that might be less affected by tariffs. This gives you options when primary products become too expensive.

Communication Is Key: Managing Customer Expectations

Price increases are never easy conversations, but transparency and proactive communication can help maintain customer relationships while protecting your margins. Rather than absorbing costs and hoping they'll stabilize, address the situation head-on with your clients.

Explain the external factors driving price increases – most customers understand that businesses face cost pressures beyond their control. The key is communicating these changes before they're implemented, not after the fact.

Consider offering value-added services or package deals that help offset the sticker shock of individual price increases. This approach maintains perceived value while ensuring your business remains profitable.

The Long-Term View: Adapting to a New Normal

These tariff increases aren't temporary blips – they represent a fundamental shift in the cost structure of pool service operations. Successful pool professionals will adapt their business models to thrive in this new environment rather than simply trying to weather the storm.

If you don't stay ahead of this and start planning now, best case scenario, nothing happens and we sail on, but I'm doubtful of that. I think no matter what, we're going to be impacted.

— Zach Nicholas, Pool Nation Podcast

This means building cost management into your regular business operations, not treating it as a special project. It means training your team to be cost-conscious and empowering them to flag unusual price increases. Most importantly, it means shifting from reactive to proactive financial management.

Taking Action: Your Next Steps

The pool professionals who emerge stronger from these tariff challenges will be those who act decisively now. Don't wait for the busy season to hit before addressing these issues. Start by conducting a comprehensive review of your current costs and pricing structure.

Identify your most frequently purchased items and establish baseline costs. Set up a simple tracking system – even a basic spreadsheet can be effective. Schedule regular check-ins with your suppliers to stay informed about upcoming price changes.

Most importantly, remember that you're not powerless in this situation. While you can't control tariff policies, you can control how your business responds to them. The pool pros who focus on what they can control – their pricing, their cost management, and their customer communication – will not only survive these challenges but potentially gain market share from competitors who fail to adapt.

As Edgar De Jesus often says on the podcast, "Let's control what we can control, baby." The tariff storm is coming, but with preparation, awareness, and proactive management, your pool service business can weather it successfully and emerge even stronger on the other side.

Episode Chapters

• 00:00 Introduction and Heritage Bootcamp Preview
• 08:00 Understanding Tariff Impacts on Pool Industry
• 15:00 Products and Equipment Affected by Tariffs
• 22:00 Protecting Profit Margins and Cost Tracking
• 28:00 The Rear-View Mirror Problem
• 35:00 Proactive Strategies for Pool Professionals