An Ode to Pool Service Companies: Part 2

For those of you in the Pool Industry who appreciate the tenacity of Pool Service companies thorughout the past few years - and who would like to figure out how to use their successful strategies in your own business - I have theorized on some of their techniques. If you missed the first point, you can read it here: Diversify. 

http://liquidpoolcovers.com/blog/2012/05/17/an-ode-to-service-companies

2) Add On and Up Sell.

This is very similar to my first point, but different. In the past few years, many pool owners have decreased their demands on service companies - not cancelling their services entirely, but picking up some of the work themselves. This means that for a lot of service companies, they are having to make a similar number of stops on their route, but being compensated less for it.

Retailers may have had a similar experience - you find yourself having to stock all the same products and varieties that you did in previous years, but consumers are doing more price comparisons and shopping around, and you are being faced with price negotiations. You have probably had some of the toughest customers of your life in the past few years, but seen less revenue for them. If you aren't familiar with the 80 / 20 rule of business, I encourage you to google it. It is eye-opening.

So, how did service companies overcome this difficulty? They started to offer add on products and up sell services. For example, if a pool owner decides to take care of their own water testing, the service company is down one task. But, to make life easier for the pool owner, the service company may propose they invest in a high quality water test machine / kit. This way, the service company benefits somewhat, even though the are missing part of their normal account, and they are helping the customer do a better job and take better care of their pool.

How can retailers and builders apply this strategy?

If you notice a lot of your customers have down graded to no-name brands, or cheaper chemicals, you can try to gain back that margin by offering them other products that will help their pools. If you believe that a product is worth its cost, you will have no trouble explaining the benefits to the consumer. More often than not, it is truly not all about the price tag. It is about everything that comes with the price tag. If a consumer believes a cheaper product will produce exactly the same results as a more expensive product, AND they are carefully monitoring their budget, they will opt for the lower priced product.

BUT that doesn't mean they aren't willing to spend money to get the results and experience they are dreaming of. So, even if they are buying the bargain chlorine, they may still be interested in another product that has a higher price tag, but will add to their  enjoyment. You just have to figure out what they are dreaming of when the dream of their pool. (Replacing their falling apart plastic pool blanket with something infinitely eaiser might be just what they were dreamign of. Try Ecosavr^TM, the liquid pool cover fish!)
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Would you like to help me out? I am always looking for guest blog posters! If you have any great pool industry words of wisdom you would like to share, please email me: [email protected]