Driving Sales During Normalization - Dan Lenz

The pool industry is entering a new era. After years of unprecedented demand driven by the COVID-19 pandemic, pool professionals are facing what industry expert Dan Lenz calls "normalization" – a return to more competitive market conditions where superior customer service and streamlined business processes make all the difference between thriving and merely surviving.

In a recent episode of the Talking Pools Podcast, Lenz, a seasoned pool industry professional from the Chicago market, shared invaluable insights on how pool businesses can adapt their operations to drive sales and maintain profitability during this transition period. His approach centers on making it easier for customers to do business with you while protecting your company's interests through systematic processes.

The Reality of Post-COVID Market Conditions

The pool industry experienced an unprecedented boom during the pandemic years, but those days are behind us. As Lenz explains, the industry dynamics have fundamentally shifted:

COVID is over, the COVID drive that's given us so much in the last few years. It's been easy to not worry about business, right? Everything just sort of happened. We were much more order takers than we were salespeople. We were many of us not really keeping our eye on customer service in many ways. And we're certainly going to see 2024 play out to be a challenge in a lot of ways.

— Dan Lenz, Talking Pools Podcast

This shift means pool professionals must return to fundamental business practices that may have been neglected during the boom years. Companies can no longer rely on overwhelming demand to drive their success – they must actively compete for customers and work harder to retain existing ones.

The transition requires a mindset change from being order-takers to becoming proactive salespeople and customer service experts. This means paying closer attention to every touchpoint in the customer journey, from initial contact through project completion and ongoing service relationships.

Building Bulletproof Service Agreements

One of the most critical aspects of protecting your business while improving customer service is implementing comprehensive written agreements for every service you provide. Lenz emphasizes that verbal agreements are no longer sufficient in today's business environment.

Effective service agreements should clearly outline several key components:

• Detailed scope of work and limitations
• Payment terms and methods
• Warranty information and coverage details
• Cancellation policies
• Additional charges for unforeseen circumstances

For example, when installing pool heaters, Lenz's company includes specific language about connection limitations:

On heaters, for example, we put in our agreements that we're connecting to existing gas, electric and pool plumbing water connections within five feet of the heater's location. If we get out there and we find that the gas line is inadequately sized, as I was talking about last week, that we have no obligation to replace that gas line to make it proper.

— Dan Lenz, Talking Pools Podcast

This approach prevents the common scenario where customers expect contractors to fix underlying infrastructure problems at no additional cost, simply because they weren't explicitly excluded from the original agreement.

Leveraging Electronic Signatures for Efficiency

Modern pool businesses must embrace technology to stay competitive, and electronic signature platforms represent one of the most impactful tools available. Lenz's company uses Adobe's electronic signature service to streamline their agreement process and improve customer convenience.

The benefits of electronic signatures extend beyond simple convenience. These platforms can be configured to automatically follow up with customers who haven't yet signed agreements, keeping your services top-of-mind without requiring manual intervention from your staff.

Electronic signature platforms also enable you to collect payments at the time of agreement signing, which provides multiple business advantages:

• Reduces outstanding debt and improves cash flow
• Decreases the likelihood of customers shopping around after committing
• Eliminates payment collection issues before work begins
• Demonstrates commitment from both parties

The key is making the process as seamless as possible for customers while protecting your business interests.

Implementing Strategic Payment and Cancellation Policies

Cash flow management becomes increasingly important during market normalization periods. Lenz advocates for collecting payments upfront whenever possible, particularly for diagnostic services and smaller repairs.

His company's diagnostic service model provides an excellent example of strategic pricing and payment collection:

We get $199 I believe for a heater diagnostic if I'm not mistaken. The technician will go out and evaluate the heater. Find out what's wrong with it. When he finds out what's wrong with it, he'll have a conversation with a homeowner saying you need a new XYZ and the cost of it is going to be this. That's over and above the diagnostic fee. If you have us put that component in and get the heater working for you, then we're going to guarantee the diagnostic portion of this service call for 12 months.

— Dan Lenz, Talking Pools Podcast

This approach accomplishes several objectives simultaneously: it ensures payment for diagnostic work, provides additional value through extended warranties, and creates incentives for customers to use your company for repairs.

Equally important are clear cancellation policies that protect your business from last-minute changes that can devastate scheduling efficiency. Lenz's company implements a tiered cancellation fee structure:

• 48+ hours notice: Full refund
• 24-48 hours notice: $50 penalty
• Less than 24 hours notice: $150 penalty

These policies aren't punitive – they're protective measures that help maintain operational efficiency during peak season when every hour of technician time is valuable.

Creating Comprehensive Warranty Programs

In an increasingly competitive market, warranty programs can serve as powerful differentiators that justify premium pricing and build customer loyalty. Lenz's company has developed an innovative warranty structure that extends manufacturer warranties and provides additional value to customers.

For example, with Pentair heaters that come with standard two-year warranties, Lenz's company provides an additional two years of coverage, effectively doubling the warranty period. This approach helps combat online sales competition by providing value that internet retailers cannot match.

Last year, we began a program where we double that warranty out of all seasons, BUNCA. So we provide an additional two years at the end of the factory two years. It's an effort to battle a little bit with online sales, to give people more comfort in working with all seasons and add value to what we do.

— Dan Lenz, Talking Pools Podcast

Extended warranty programs work because they address one of the primary concerns customers have when making significant purchases – what happens if something goes wrong? By providing longer coverage periods than competitors, you demonstrate confidence in your work and provide peace of mind that justifies higher prices.

Maximizing Seasonal Efficiency Through Pre-Scheduling

For pool businesses in seasonal markets, maximizing efficiency during peak periods is crucial for annual profitability. Lenz emphasizes that his Chicago-area business must generate 85-90% of their annual revenue between April 1 and November 1, making operational efficiency paramount.

Pre-scheduling services like pool openings and closings during off-peak periods provides multiple benefits:

• Keeps office staff productive during slower months
• Provides predictable revenue scheduling
• Reduces peak-season administrative burden
• Improves customer satisfaction through guaranteed service dates
• Enables better resource allocation and planning

This proactive approach transforms seasonal challenges into competitive advantages by ensuring your team is fully utilized year-round and your customers receive reliable service when they need it most.

Technology Integration for Customer Communication

Modern pool businesses must leverage technology platforms to maintain consistent, professional communication with customers throughout the service process. Lenz's company uses Podium, a text messaging platform that enables real-time communication and creates documented records of customer interactions.

The platform allows technicians to confirm work approvals, process payments, and maintain communication trails that protect both the company and the customer. This systematic approach to communication helps prevent misunderstandings and provides documentation for warranty claims or disputes.

Key features of effective communication platforms include:

• Multi-channel communication capabilities (text, email, voice)
• Integration with payment processing systems
• Automated follow-up and reminder capabilities
• Team-wide visibility into customer conversations
• Documentation and record-keeping features

Conclusion: Adapting to the New Normal

The pool industry's post-COVID normalization presents both challenges and opportunities for forward-thinking businesses. Success in this new environment requires a return to fundamental business practices enhanced by modern technology and systematic processes.

The key strategies outlined by Dan Lenz – comprehensive agreements, electronic signatures, strategic payment policies, extended warranties, and proactive scheduling – work together to create a business model that prioritizes customer convenience while protecting company interests.

Most importantly, these approaches focus on making it easier for customers to do business with you, which becomes increasingly important as competition intensifies. By implementing systematic processes that improve efficiency, protect cash flow, and enhance customer experience, pool businesses can not only survive the normalization period but emerge stronger and more profitable than ever.

The companies that embrace these changes and invest in systematic improvements to their business processes will be best positioned to thrive in the competitive landscape ahead. As Lenz demonstrates, success comes from combining time-tested business principles with modern technology to create seamless customer experiences that drive loyalty and profitability.

Episode Chapters

• 00:00 Introduction to Market Normalization
• 05:30 Building Comprehensive Service Agreements
• 12:15 Electronic Signatures and Payment Collection
• 18:45 Diagnostic Services and Warranty Programs
• 25:20 Cancellation Policies and Customer Communication
• 32:10 Pre-Scheduling for Seasonal Operations