E-261 Pool Nation Podcast: Roadmap to Profitability Part 2: Avoiding Profit Killers for Pool Pros
Key Takeaways
- Flip your business model from day one: Focus on profitability and understanding your numbers before expanding services, rather than adding profit considerations as an afterthought
- Implement seasonal pricing strategies: Charge premium rates for emergency calls and extreme weather work, and schedule major installations during more favorable conditions
- Master your metrics: Calculate your true cost per pool including all expenses, and understand the difference between profit on paper and actual cash flow
- Build systems for scalability: Develop team management skills and accountability processes to grow beyond the owner-operator model
Picture this: You're a pool service professional working 12-hour days under the scorching summer sun, installing pumps when it's 118 degrees outside, and wondering why your bank account doesn't reflect all the sweat equity you're putting in. If this sounds familiar, you're not alone – and more importantly, you're likely falling victim to what the experts call "profit killers."
In the latest episode of the Pool Nation Podcast, hosts Edgar De Jesus, John "JJ Flawless," and Zach "the Pool Boy" Nicholas dive deep into part two of their Roadmap to Profitability series, focusing specifically on the hidden traps that prevent pool professionals from building truly profitable businesses. Their candid discussion, peppered with real-world experiences and practical insights, offers a roadmap for avoiding the pitfalls that keep so many pool pros stuck in the "busy but broke" cycle.
The Reality Check: Why Most Pool Pros Struggle with Profitability
The episode opens with a stark reminder of the physical demands pool professionals face daily. John's exhausted state after a particularly brutal installation day serves as a perfect example of how the industry's focus on "doing the work" often overshadows the critical business fundamentals.
Today, I was actually questioning myself and I'm like, we talked about how do you do it? I was like, how did I do this last year? You know what I mean? How did I get through this?
— John "JJ Flawless," Pool Nation Podcast
This moment of vulnerability highlights a common issue in the pool service industry: professionals are so focused on getting the job done that they rarely step back to evaluate whether they're building a sustainable, profitable business model. The traditional approach – start with service, learn chemistry, move to repairs, and maybe think about profits later – is fundamentally flawed.
The hosts emphasize that profit isn't just about making money; it's about creating the fuel for growth, stability, and most importantly, avoiding burnout. When you're working harder but not seeing proportional financial returns, burnout becomes inevitable.
The Backwards Business Model That's Killing Your Profits
One of the most eye-opening segments of the discussion focuses on how most pool professionals approach their business development. The traditional progression – service first, profits later – creates a foundation that's difficult to modify once established.
Edgar explains that most pool pros follow a predictable pattern: they start by focusing on water chemistry and basic service, gradually move into repairs and equipment work, and only years later begin to seriously consider profitability metrics. This backwards approach creates several critical problems:
- Pricing structures based on competition rather than actual costs
- Service offerings that may not be profitable
- Cash flow issues that persist despite being "busy"
- Inability to scale without proportionally increasing personal work hours
The solution? Flip the script from day one. Understanding your numbers, calculating your true cost per pool, and building profit margins into your pricing structure should be the foundation upon which everything else is built.
The Power of Data-Driven Decision Making
Perhaps the most crucial insight from the episode revolves around the importance of understanding your business metrics. The hosts spent considerable time before the podcast analyzing numbers, calculations, and profit margins – a practice they strongly encourage for all pool professionals.
If you guys don't understand your numbers and don't have the correct data, it's going to be really hard to make some significant impacts or moves or changes in your business.
— Zach "the Pool Boy" Nicholas, Pool Nation Podcast
This isn't just about knowing your revenue; it's about understanding the deeper financial mechanics of your operation:
- Cost per pool: What does it actually cost you to service each account?
- Gross vs. net profit: Understanding the difference and what each tells you about your business health
- Cash flow vs. profit: Why showing profit on paper doesn't always mean you can pay your bills
- Seasonal fluctuations: How to plan for slower periods and capitalize on busy seasons
The analogy Edgar draws between business metrics and water chemistry is particularly apt – both seem overwhelming at first, but become second nature with practice and application.
Seasonal Strategy: Working Smarter, Not Just Harder
The episode provides valuable insights into how experienced pool professionals adapt their services and strategies based on seasonal demands. The brutal summer heat that left John exhausted serves as a perfect example of why strategic planning matters.
Over the years we've learned to wear non-essential or we're not doing tile blasts. We're not doing big equipment upgrades, stuff that can be put off towards fall. We usually do that.
— Edgar De Jesus, Pool Nation Podcast
This strategic approach to seasonal work offers several benefits:
- Preserves technician health and energy during extreme weather
- Creates opportunities for higher-margin work during more comfortable seasons
- Improves customer satisfaction by scheduling major work when conditions are optimal
- Helps balance workload and cash flow throughout the year
However, the reality is that emergencies still happen, and customer demands don't always align with logical scheduling. The key is building these seasonal considerations into your pricing and service agreements from the beginning.
The Customer Reality: Managing Expectations and Emergency Calls
One of the most relatable moments in the episode comes when the hosts discuss receiving an emergency call about a spa heater on a 118-degree day. The customer's demand to use their jacuzzi in the middle of a scorching afternoon highlights the disconnect between customer expectations and operational realities.
We get a call from a property manager and saying that the guests were complaining that they want to use the jacuzzi or the spa. And this is in the middle of the afternoon. This was like four o'clock in the afternoon. And I think the temperature that day was only like 118.
— Edgar De Jesus, Pool Nation Podcast
These situations illustrate why emergency pricing, clear service agreements, and customer education are crucial components of a profitable pool service business. Every "emergency" call that disrupts your planned route costs money – and that cost should be reflected in your pricing structure.
Building a Business, Not Just a Route
The discussion naturally leads to the importance of building systems and processes that can operate without your constant physical presence. This is where the upcoming Pool Nation Conference training becomes particularly relevant.
The conference curriculum focuses on several key areas that directly address the profit killers discussed in the episode:
- Turning Pools into Profit: Building a business model focused on profitability from day one
- Metrics into Money: Using data to drive decisions rather than guessing
- Know Your Costs, Grow Your Profits: Practical business math for proper pricing
- Financial Planning and Exit Strategy: Building long-term value in your business
- Profit vs. Cash Flow: Understanding why profit on paper doesn't always pay bills
These topics directly address the most common profit killers that plague pool service businesses: lack of systematic pricing, poor financial understanding, and the inability to scale beyond personal capacity.
The Human Element: Team Development and Scalability
Day two of the conference curriculum focuses on what might be the ultimate profit killer: the inability to build and manage effective teams. Most pool service businesses remain trapped at the owner-operator level because they never develop the systems and leadership skills necessary for growth.
The training modules on talent lifecycle, high-performing teams, and accountability directly address this challenge. As Edgar notes, "it's all about the people." Your ability to develop others not only determines your scalability but also your eventual exit strategy value.
Key areas covered include:
- Building skills at every stage of employee development
- Creating systems for collaboration and communication
- Implementing accountability measures that drive results
- Developing leadership capabilities within your organization
Practical Implementation: Your Next Steps
The episode concludes with practical steps pool professionals can take immediately to start addressing these profit killers:
- Calculate your true cost per pool: Include all expenses – vehicle, insurance, labor, chemicals, equipment wear
- Implement seasonal pricing strategies: Charge appropriately for emergency and off-season work
- Develop service agreements: Set clear expectations and emergency call procedures
- Track key metrics weekly: Don't wait until year-end to understand your financial position
- Plan for growth: Start building systems and training protocols now, even if you're a solo operation
The hosts' offer of free expo passes (using code "POOLNATION") demonstrates their commitment to helping industry professionals access the education and networking opportunities that can transform their businesses.
The most powerful takeaway from this episode is that profitability isn't an accident – it's the result of intentional decisions, systematic approaches, and continuous learning. Whether you're just starting out or you've been in the industry for years, it's never too late to flip the script and start building a truly profitable pool service business.
As the Pool Nation team prepares for their comprehensive training at the PSP Expo, they're offering the industry a roadmap to escape the profit killers that trap so many hardworking pool professionals. The question isn't whether you can afford to invest in this knowledge – it's whether you can afford not to.
Episode Chapters
- 00:00 Introduction and Host Updates
- 15:30 Summer Heat Reality Check
- 25:45 PSP Expo and Pool Nation Conference Preview
- 35:20 Roadmap to Profitability Part 1 Recap
- 42:10 The Backwards Business Model Problem
- 58:30 Profit Killers and Mindset Traps
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