Demanding Clients and Pool Maintenance Tips

When Pool Professionals Face the Discount Dilemma

Every pool service professional has been there: a client asking for a discount, a competitor offering lower prices, or the internal struggle of maintaining profitability while staying competitive. In a recent episode of the Talking Pools Podcast, hosts Wayne and Steve tackled one of the most challenging aspects of running a pool service business – how to handle discounts strategically without sacrificing your bottom line.

Drawing from their extensive experience in both service and manufacturing sides of the pool industry, Wayne and Steve offer a refreshingly honest perspective on pricing strategies that can make or break your business. Their insights reveal why the approach to discounting can be just as important as the discount itself.

The Smart Way to Offer Discounts: Time Over Product

When it comes to offering discounts, not all approaches are created equal. Steve, who runs his own pool service business, has developed a strategic method that protects his profit margins while still providing value to clients.

So, if you are going to discount something, it's way better to do it off of the time rather than the product itself. Because you are actually paying for the product. You are actually the one going out there and buying it from your distributor.

— Steve, Talking Pools Podcast

This approach makes financial sense for several reasons. When you discount time instead of materials, you're essentially giving away something that has already been spent rather than reducing the margin on physical products that cost you money. For example, if a job takes 2.5 hours but you typically charge a minimum of 3 hours, discounting that half-hour shows value to the customer without impacting your material costs.

Steve explains his billing philosophy:

And what we had said is that when I come out for 15 minutes, it's still a minimum hour service call, right? So, you're going to be paying an hour no matter what.

— Steve, Talking Pools Podcast

This strategy also provides transparency. Customers can see the discount itemized on their bill, which creates a sense of value and appreciation. It's a psychological win that doesn't hurt your wallet as much as discounting expensive pool chemicals or equipment.

Building Relationships with Distributors: Your Secret Weapon

One of the most valuable insights from the episode revolves around the importance of maintaining strong relationships with multiple distributors. Steve shared a recent experience that illustrates this perfectly – when he noticed one distributor's chlorine cases were $8 more expensive than a competitor's, a simple phone call resolved the pricing discrepancy.

Wayne, drawing from his experience on the manufacturing side, explained the complex world of distributor pricing structures. The reality is that manufacturers sell to distributors at various discount levels, and what distributors do with that pricing is entirely up to them.

Once it left our facility, okay, and the order was placed, it's left our facility, it was the distributor's property. And they can do with it whatever they wanted. If they wanted to charge full price, if they wanted to raise the price, they could do whatever they want with it because they've already bought it from us.

— Wayne, Talking Pools Podcast

This revelation underscores why pool professionals should maintain relationships with multiple distributors. Pricing can vary significantly between suppliers, and loyalty to just one distributor might be costing you money. Regular price comparisons and open communication about competitive pricing can lead to better deals and improved profit margins.

The Psychology of Perceived Value

Both hosts emphasized an important concept that extends beyond just pool services: perceived value. Whether you're dealing with clients or suppliers, the relationship and perceived mutual benefit play crucial roles in business transactions.

Steve noted that building relationships with manufacturer representatives can pay dividends when new products are released. Instead of blindly purchasing untested equipment, established relationships can lead to trial opportunities or detailed product demonstrations.

Wayne confirmed this from the manufacturer's perspective, explaining that companies are always evaluating

what are we getting out of this?

— Steve, Talking Pools Podcast

when considering special pricing or trial products. The key is demonstrating mutual value – how your business relationship benefits both parties.

Technology Trends: The Future of Pool Monitoring

The conversation also touched on emerging technology trends in pool maintenance, particularly around remote monitoring systems. Steve discussed a client's need for remote pH and ORP monitoring, highlighting the challenge many pool owners face: wanting technology without the premium price tag.

While systems like Pentair's IntelliChem offer comprehensive automation, their cost can be prohibitive. This has led to the emergence of monitoring-only systems that track water chemistry and alert owners via smartphone apps, without the automatic dosing capabilities.

Steve praised the IntelliChem system for its user-friendly approach to calibration, explaining why it stands out from competitors:

I like the Pantharia IntelliChem because you go to it and you say, hey, when you dose for one time doing chlorine, you put in seven ounces... I'm a simple guy. And if you tell me that I can dose something in actual number ounces, as opposed to seconds, it's going to make it a lot easier for me to calibrate that machine.

— Steve, Talking Pools Podcast

This preference for simplicity over complexity is something many pool professionals can relate to. When technology makes the job easier rather than more complicated, it's more likely to be adopted and recommended to clients.

Regional Differences and Business Adaptation

An interesting aspect of the discussion was how regional market conditions affect business strategies. The hosts referenced their colleague Peter from Australia, who operates in such a busy market that discounting isn't necessary or advisable. This contrasts with other markets where competitive pricing is essential for survival.

Understanding your local market dynamics is crucial for implementing the right pricing strategy. In oversaturated markets, value-added services might be more important than low prices. In competitive markets, strategic discounting might be necessary to win and retain clients.

The key is adapting these strategies to your specific situation while maintaining profitability. Whether you're in a high-demand market like Peter's or facing more competition, the principles of smart discounting and relationship building remain constant.

Practical Implementation for Pool Professionals

For pool service professionals looking to implement these strategies, start with a thorough analysis of your current pricing structure. Identify where you have flexibility in time-based charges versus product margins. Consider implementing minimum service charges that allow for strategic time-based discounting.

Next, audit your distributor relationships. Are you working with multiple suppliers? When did you last compare pricing across distributors? Make this a regular practice, and don't hesitate to have conversations about competitive pricing.

Finally, invest time in building relationships with manufacturer representatives and distributor sales teams. These relationships can provide early access to new products, better pricing opportunities, and valuable market insights that can give your business a competitive edge.

The pool industry continues to evolve with new technologies and changing customer expectations. Success comes from balancing profitability with customer satisfaction, leveraging relationships for mutual benefit, and staying informed about industry trends. By implementing strategic discounting practices and maintaining strong supplier relationships, pool professionals can build sustainable, profitable businesses that provide genuine value to their clients.

Episode Chapters

• 00:00 Introduction and Weather Chat
• 03:15 Discount Strategies Discussion
• 08:30 Time vs Product Discounting
• 12:45 Distributor Relationships and Pricing
• 18:20 Manufacturer Perspective on Discounts
• 24:10 Pool Technology and Monitoring Systems
• 31:00 Regional Market Differences