Going Commercial to Increase Pool Service Revenue

When residential pools shut down for the winter and your service revenue takes a nosedive, what's a pool professional to do? The answer might be closer than you think – and it involves diving into the commercial pool market. But before you start chasing every apartment complex and hotel in town, there are crucial strategies and potential pitfalls you need to understand to make commercial work profitable without putting your business at risk.

The Winter Revenue Solution: Why Commercial Makes Sense

For pool service companies in seasonal markets, the winter months can be financially brutal. While residential pools sit dormant under covers or frozen solid, bills continue to pile up and employees need steady work. This is where commercial pool services can be a game-changer.

We were answering an email actually that Jordan, it's not asking what can you do in the wintertime and how the potential of expanding some into commercial to have that as an opportunity in the wintertime has worked for our company.

— Dan, Talking Pools Podcast

Commercial properties – including hotels, fitness centers, apartment complexes, and community centers – often operate their pools year-round. Even when they don't, they frequently need equipment repairs, upgrades, and maintenance during off-peak seasons. This creates a perfect opportunity for residential pool companies to diversify their revenue streams and keep their teams employed through the winter.

The key is timing your entry into commercial work strategically. Rather than viewing it as a complete business pivot, successful pool companies use commercial accounts as a supplement to their core residential business, particularly during slower periods.

The Golden Rule: Diversification Without Dependence

While commercial work offers excellent opportunities, experienced pool professionals warn against putting too many eggs in the commercial basket. The reason? Commercial clients operate very differently from residential customers when it comes to loyalty and long-term relationships.

We've always limited our commercial work to, I think I mentioned it last week, about 15 to 20% of our overall business. And the biggest reason for that is that I found commercial properties to not be very loyal over time.

— Dan, Talking Pools Podcast

This strategic limitation isn't arbitrary – it's based on years of real-world experience. Residential customers who receive quality service tend to stick with their pool company for years, often decades. They refer friends, recommend you to new homeowners, and build genuine relationships with service providers.

Commercial properties, however, operate under different pressures. Management companies change, HOA boards turnover, and purchasing decisions often come down to the lowest bid rather than service quality. A property you've serviced excellently for three years might suddenly switch to a competitor simply because a new management company has existing relationships elsewhere.

Licensing Requirements and Professional Standards

Before diving into commercial work, understanding your local licensing requirements is crucial. The regulatory landscape for commercial pool work is significantly more complex than residential service, and the requirements vary dramatically by state and municipality.

In some areas, any work over $500 requires a contractor's license, while others have specific commercial pool contractor certifications. Equipment repairs and replacements typically require higher-level licensing than basic maintenance and chemical service.

So when it comes to repairs of commercial pools, you do have to have a contractor's even to even to switch out a main drain cover.

— Kelly, Talking Pools Podcast

The Certified Pool Operator (CPO) certification is another critical consideration. While requirements vary by location, most serious commercial properties expect their service providers to hold current CPO certifications. This isn't just about meeting minimum requirements – it's about demonstrating professional competence and understanding of commercial pool operations.

Many commercial properties are required to have a CPO on staff for oversight, but they often rely on their service company's expertise for guidance. Having properly certified technicians can be a significant competitive advantage when bidding for commercial accounts.

The Quality vs. Price Battle in Commercial Markets

One of the biggest challenges in commercial pool work is competing against low-cost providers who win contracts based solely on price. This race-to-the-bottom mentality creates problems for everyone involved – the property gets substandard service, legitimate contractors lose profitable work, and ultimately, pool users suffer.

The podcast hosts shared numerous examples of commercial properties suffering from cheap service providers who cut corners on everything from water chemistry to equipment maintenance. These shortcuts inevitably lead to bigger problems and higher costs down the road.

Oh my God, the cheap service is why you go through a heater every six months. Right. For a number of reasons, right? It's not always just water chemistry related.

— Kelly, Talking Pools Podcast

Smart commercial pool contractors position themselves as the premium option by emphasizing long-term value over short-term savings. This means demonstrating expertise, maintaining proper documentation, using quality products, and showing properties how proper maintenance prevents costly repairs and replacements.

Documentation is particularly crucial in commercial settings. Proper pool logs aren't just regulatory requirements – they're legal documents that can be subpoenaed in litigation. Properties that understand this are willing to pay for service providers who take documentation seriously.

Practical Strategies for Commercial Success

Successfully integrating commercial work into your pool service business requires a strategic approach. Here are key considerations for making commercial accounts profitable:

Timing Your Entry: The best time to pursue commercial accounts is during your slower residential periods. This allows you to use commercial work to smooth out seasonal revenue fluctuations without overcommitting to accounts you might not be able to properly service during peak residential season.

Account Selection: Not all commercial accounts are created equal. Focus on properties with stable management, adequate budgets, and realistic expectations. Avoid properties that are primarily focused on getting the lowest possible price – these accounts are rarely profitable long-term.

Service Differentiation: Develop systems and processes that clearly differentiate your service from low-cost competitors. This includes detailed reporting, proactive maintenance recommendations, emergency response capabilities, and professional presentation.

Relationship Building: While commercial accounts may be less loyal than residential customers, building strong relationships with property managers and decision-makers can still provide stability. Focus on becoming a trusted advisor rather than just another vendor.

Proper Pricing: Commercial work often involves different cost structures than residential service. Factor in additional insurance requirements, more complex scheduling, detailed documentation needs, and the potential for emergency calls when pricing commercial accounts.

Avoiding Common Commercial Pitfalls

The allure of large commercial contracts can lead pool companies to make mistakes that ultimately hurt their business. Understanding these common pitfalls can help you avoid costly errors:

Over-dependence on Commercial Revenue: Companies that become too dependent on commercial accounts often struggle when contracts are lost. Maintaining the 15-20% guideline helps ensure that losing even a large commercial account won't devastate your business.

Inadequate Insurance and Bonding: Commercial properties typically have higher insurance and bonding requirements than residential work. Make sure your coverage is adequate before taking on commercial accounts.

Underestimating Complexity: Commercial pools often have more complex systems, higher bather loads, and stricter regulatory requirements than residential pools. Don't assume that residential expertise automatically translates to commercial competence.

Poor Documentation Practices: Commercial properties require detailed documentation for regulatory compliance and liability protection. Develop systems for proper record-keeping before taking on commercial accounts.

Competing Solely on Price: Trying to win commercial accounts by being the lowest bidder is a recipe for disaster. Focus on value proposition and service quality instead of engaging in price wars.

Building a Sustainable Commercial Strategy

The most successful pool companies view commercial work as one component of a diversified business strategy. This means developing commercial capabilities while maintaining strong residential relationships and other revenue streams.

Consider starting small with one or two commercial accounts to develop your systems and processes before pursuing larger contracts. This allows you to learn the unique requirements of commercial work without overwhelming your existing operations.

Invest in proper training and certifications for your team. Commercial work often requires different skills and knowledge than residential service, and having properly trained technicians is essential for success.

Develop relationships with other commercial service providers who can refer overflow work or partner on larger projects. The commercial market often involves more collaboration between contractors than the residential market.

Finally, maintain realistic expectations about commercial work. While it can provide valuable revenue diversification and winter work opportunities, it's not a magic solution to all business challenges. Success in commercial pool service requires the same dedication to quality and customer service that makes residential companies successful.

By approaching commercial pool service strategically – as a complement to rather than replacement for residential work – pool companies can build more stable, profitable businesses that weather seasonal fluctuations and provide year-round opportunities for growth.

Episode Chapters

• 00:00 Introduction and Holiday Check-in
• 05:30 Networking with Other Pool Companies
• 12:15 Frozen Pool Challenges
• 18:45 Introduction to Commercial Pool Services
• 22:30 Commercial Licensing Requirements
• 28:00 Loyalty Issues with Commercial Accounts
• 35:15 Quality vs. Price in Commercial Work
• 42:00 Documentation and Legal Requirements