E-189 Pool Nation Podcast - How a Pool Company Turned a Chlorine Crisis into $75K Profit: The Secret Strategy Revealed!
Key Takeaways
- Transform crisis into opportunity by investing in scalable solutions rather than short-term fixes
- Create recurring revenue streams by renting equipment to customers instead of including costs in service
- Commit fully to new systems including comprehensive team training and customer communication
- Liquid chlorination systems can provide superior water quality and customer satisfaction compared to traditional tablets
- Bold decision-making during industry disruption can create lasting competitive advantages
When Crisis Becomes Opportunity: The Pool Industry's Ultimate Pivot
What would you do if your entire business model suddenly became impossible overnight? Most business owners would panic, scramble for quick fixes, or simply accept reduced profits. But Sarah and her team at Foot Hill Pool Care in Arizona saw the 2020 chlorine crisis differently—as an opportunity to revolutionize their service model and create a massive new revenue stream.
When the Bio-Lab chemical plant fire disrupted the chlorine tablet supply chain, affecting pool companies nationwide, Foot Hill Pool Care faced a daunting challenge: they were servicing 650 pools with tabs included in their service cost. Instead of waiting to see how the shortage would play out, they made a bold decision that would transform their business forever.
The Bold Decision That Changed Everything
The crisis began with a simple phone call from their pool supply sales representative warning them about the impending shortage. While competitors hoped things would work out or stockpiled a few buckets of tabs, Sarah and her business partner Damien recognized they needed a more substantial solution.
We realized we were going to be in big trouble with the shortage and the cost increase that was about to come. So we came up with a plan to buy the original NSF approved liquidator from HOSSA and through him we came up with the amount that we had to buy to get them at $150 per unit which was 207. So we placed an order for 207 units.
— Sarah, Foot Hill Pool Care
The math was stark: while other companies with 150 pools thought 100 buckets of tabs would suffice, Foot Hill Pool Care calculated that amount would last them barely a month. They needed a scalable, long-term solution that wouldn't leave them dependent on an unstable supply chain.
Their investment didn't stop at the liquidators. They also purchased a 1,000-gallon chlorine tank and set up their own mini bulk delivery system, essentially creating their own chemical distribution operation in their back lot.
Turning Equipment Into Recurring Revenue
Here's where the genius business strategy emerged: instead of selling the liquidators outright, Foot Hill Pool Care decided to rent them to customers for $10 per month. This decision transformed a one-time equipment purchase into a recurring revenue stream that continues to pay dividends years later.
The company gave customers three clear options: convert to salt water systems, purchase their own tabs, or rent the liquid chlorination system. By framing it as customer choice rather than a forced change, they maintained control while addressing the crisis head-on.
To this day we still have 197 of them that are rented with the cost of chlorine increasing with COVID in over the last couple years. We increased the cost to $20 per unit... So we get about $75,000 a year in extra revenue just from renting the liquidators.
— Sarah, Foot Hill Pool Care
The numbers tell an impressive story: 197 units rented at $20 per month generates $47,280 annually, with newer units commanding $40 monthly, pushing total annual revenue to approximately $75,000. What started as crisis management became a substantial profit center operating at nearly 100% margin once the initial investment was recovered.
Overcoming the Inevitable Challenges
The transition wasn't smooth sailing. Installing and maintaining 207 liquidators across 650 customers presented significant operational challenges, especially when deliveries arrived in batches during Arizona's scorching summer months.
The liquidation systems exposed existing pool problems that had been masked by traditional chlorine tablet maintenance. Air leaks caused tanks to drain, scaling issues became apparent, and the team had to rapidly develop expertise in liquid chlorine chemistry and LSI (Langelier Saturation Index) balancing.
The liquidator itself is a phenomenal piece of equipment but it brings out the problems in the pool. So because it works on physics pushes, you know, water in, water out. And there's no mechanics to it whatsoever. So if you have an air leak, your tank drains and so then you're like, the liquidator is a problem. No, you need a new Jandy valve o-ring kit.
— Sarah, Foot Hill Pool Care
The company made a complete commitment to the new system, switching entirely to LSI-based water chemistry, investing in liquid drop test kits from Taylor, and retraining their entire technical team. This comprehensive approach ensured success but required significant upfront investment in education and equipment.
Managing Team Resistance and Customer Communication
Perhaps the most challenging aspect wasn't technical—it was human. The team initially resisted the change, and industry peers were skeptical of the aggressive response to what many thought would be a temporary problem.
Customer communication proved crucial. The company had to call all 650 customers to explain the change from chemical-inclusive service to customer-provided chemicals. This conversation became easier when news media began covering the chlorine shortage, providing external validation for the company's proactive approach.
There was like this like shift with all of our customers though we had to have an you know I'm not dishing salt or tabs because but they were so much more expensive and to come to a customer and say you have to spend $250 on a bucket of tabs or you get this piece of equipment for 120 bucks and and you're good because one bucket of tabs is not guaranteed to last before year but this liquidator that's going to stay the same.
— Sarah, Foot Hill Pool Care
The value proposition became clear when customers compared spending $250 for a bucket of tabs that might not last a full season versus renting a liquidator system for consistent monthly cost and reliable service.
Long-Term Benefits Beyond Revenue
Three years later, the benefits extend far beyond the additional $75,000 annual revenue. The company discovered that liquid chlorination provides superior water quality compared to tablets, reducing the need for frequent pool draining—a significant advantage in Arizona's water-conscious environment.
The technical team, initially resistant to the change, now prefers servicing liquidator-equipped pools because they maintain more consistent water chemistry and require less troubleshooting than traditional chemical systems.
Today, Foot Hill Pool Care's customer base is split roughly equally between liquidators, salt systems, and traditional tabs, giving them diversification and reduced dependence on any single chemical supply chain.
Key Takeaways for Pool Industry Professionals
This success story offers several crucial lessons for pool service companies facing market disruption:
- Think Beyond the Immediate Crisis: While competitors hoped for the best, Foot Hill Pool Care planned for long-term sustainability and growth.
- Convert Problems Into Profit Centers: The rental model transformed crisis spending into ongoing revenue that continues years later.
- Invest in Team Training: Success required comprehensive education and commitment to new methodologies, not just new equipment.
- Communication is Critical: Transparent, value-focused customer communication helped retain clients during a major service change.
- Commit Fully: Half-measures wouldn't have worked. Complete system overhaul and unwavering commitment ensured success.
The chlorine crisis of 2020 challenged every pool service company, but few transformed that challenge into lasting competitive advantage. Foot Hill Pool Care's story demonstrates how crisis can become opportunity when approached with strategic thinking, operational excellence, and unwavering commitment to customer value.
For pool industry professionals facing their own challenges, this case study proves that the biggest risks often hide the biggest opportunities—if you're bold enough to seize them.
Episode Chapters
- 00:00 Introduction and Pool Nation Podcast Welcome
- 05:30 Meeting Sarah from Foot Hill Pool Care
- 08:15 The Chlorine Crisis and Initial Response
- 12:40 The $75K Liquidator Strategy Revealed
- 18:20 Implementation Challenges and Solutions
- 24:15 Team Resistance and Customer Communication
- 28:45 Long-term Results and Current Operations
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