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E-193 Pool Nation Podcast Profitability and Your Cost of Service

Pool Nation Podcast April 28, 2024 45 min
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45 min · Pool Nation Podcast
0:00 45 min

Key Takeaways

  • Most pool service businesses fail because owners don't understand their true cost of service and price based on competitors rather than their actual business needs
  • Business ownership requires mastering entirely different skills than technical pool service expertise, including financials, HR, strategy, and customer retention
  • The transition from working 'in' your business to working 'on' your business typically happens 3-4 years in, when current strategies stop working for growth
  • Success requires the same dedication to learning business skills that professionals already apply to mastering technical pool service knowledge
  • Structured, industry-specific business education with actionable implementation strategies is essential for building profitable pool service companies

The Pool Professional's Profitability Paradox

Picture this: You're working seven days a week, your schedule is completely booked, customers are happy, and money is flowing in regularly. Yet somehow, at the end of each month, you're left wondering where all that revenue went. If this scenario sounds painfully familiar, you're not alone in the pool service industry.

In a recent solo episode of the Pool Nation Podcast, host Edgar DeJesus tackled one of the most pressing issues facing pool professionals today: the gap between being busy and being profitable. This isn't just about working harder—it's about understanding the fundamental business principles that separate thriving companies from those barely staying afloat.

The Universal Journey of Pool Business Owners

What's fascinating about the pool industry is how universal the entrepreneurial journey seems to be. Edgar recently discovered this firsthand during a trip to Puerto Rico, where he connected with local podcast hosts Omar and Miguel:

It was really interesting that a lot of what we're going through here is exactly what they're going through over there and the industry is almost at the same spot. So it's really interesting to be able to connect with other pool pros in other part of the country, another part of the US, not the US, but part of the world. You see that our journeys are very similar.

— Edgar DeJesus, Pool Nation Podcast

This revelation underscores a critical point: the challenges facing pool professionals aren't isolated incidents or regional problems. They're systemic issues that affect pool service providers globally, which means the solutions and strategies that work can be universally applied.

The pattern is remarkably consistent. Pool professionals start their businesses with technical expertise—they know water chemistry, equipment repair, and customer service. But as Edgar points out, business ownership requires an entirely different skill set that most entrepreneurs have to learn through trial and error.

The Reality Check Every Pool Pro Faces

Co-host Zach Nicholas perfectly captured the entrepreneurial roller coaster that most pool professionals experience. His description, written during Pool Nation's strategic planning process, reads like a mirror for many business owners:

You started a business and it's off to the races. You feel the excitement of trying to drum up new business and grow your clientele... The money starts rolling in and your schedule is filling up. You're in high demand... Monday through Friday becomes Monday through Sunday, and you find yourself working all hours of the day... You start wondering why you are getting paid all this money, but never seemed to have any left at the end of the day. Where is it all going? What am I missing?

— Zach Nicholas, Pool Nation Podcast

This progression from excitement to exhaustion and confusion is almost inevitable when business owners focus solely on service delivery without understanding the underlying economics of their operations. The technical skills that got you started in business—water chemistry expertise, equipment knowledge, customer service—are just the foundation. Building a profitable, sustainable business requires mastering an entirely different set of competencies.

The Four Pillars of Business Failure

Through their training programs, the Pool Nation team has identified four primary reasons why small businesses fail in the United States. While Edgar only detailed the first one in this episode, it's arguably the most critical:

1. Not Knowing Your True Cost of Service

This is the number one killer of pool service businesses. Many professionals set their prices based on what competitors charge rather than what their specific business actually needs to generate profit. As Edgar explains:

When we do that in the pool industry, we've started selling our service or charging for our service based on what everybody else is charging and not by what your business needs, right? Because everybody's different.

— Edgar DeJesus, Pool Nation Podcast

Consider two hypothetical pool service providers: one operates with a brand-new truck and top-tier equipment, while another runs an older vehicle and basic tools. Their cost structures are fundamentally different, yet many would price their services identically based on local market rates. This approach ignores the reality that each business has unique financial requirements.

Understanding your true cost of service means accounting for:

  • Vehicle depreciation and maintenance costs
  • Equipment replacement schedules
  • Insurance and licensing fees
  • Storage and office expenses
  • Your actual hourly wage requirements
  • Business growth and emergency fund contributions

The Hidden Complexity of Pool Business Operations

One of the most challenging aspects of running a pool service business is the sheer breadth of knowledge required. Edgar emphasizes that business owners must become experts in multiple domains:

For the business side, you take a look at it and you've got to learn financials. If you are in a stage where you're going to hire people, now you have to learn a whole HR side. You've got to learn strategy. You've got to learn employee retention. You got to understand customer retention. And on top of all of that, you still have to continue to master the things that you do with running your business.

— Edgar DeJesus, Pool Nation Podcast

This multi-faceted responsibility is what makes pool service entrepreneurship so demanding. You're simultaneously a chemist, mechanic, customer service representative, accountant, marketer, and strategic planner. Each of these roles requires dedicated time and energy to master, yet most business owners try to learn them all while maintaining full-time service schedules.

The technical aspects of pool service—water chemistry, equipment repair, maintenance protocols—require hundreds of hours of study and hands-on experience to master. The business side demands the same level of commitment and learning, but it's often treated as secondary or learned reactively when problems arise.

Pool Nation's Solution: Structured Business Education

Recognizing these widespread challenges, Pool Nation is launching a new initiative: in-depth business-focused video episodes available exclusively through their mobile app. This isn't just another educational series—it's a structured approach to building business acumen specifically for pool professionals.

The format will differ from their regular podcast episodes. These business-focused sessions will feature deep dives into specific topics, expert interviews, and most importantly, actionable implementation strategies. The goal isn't just education—it's transformation.

Edgar emphasizes the practical nature of this approach: "What we want to do is we want to do them in a way to help you learn on that topic, but more importantly, be able to put into action what it is that you learn."

This focus on implementation addresses one of the biggest gaps in business education. Many entrepreneurs consume endless content about business principles but struggle to translate that knowledge into concrete changes in their operations.

From Technical Expert to Business Owner

The transition from pool technician to business owner represents a fundamental shift in mindset and responsibilities. Early in the business journey, success is measured by customer satisfaction and technical problem-solving. But as Edgar points out, sustainable business growth requires a different perspective:

After three or four years of grinding and building a customer base, many pool professionals hit a wall. The strategies that got them started—taking any customer, working excessive hours, competing primarily on price—become barriers to growth. This is what Edgar refers to as the "it" that stops working.

At this crucial juncture, business owners face a choice: continue operating as highly paid technicians or evolve into true business leaders. The latter path requires developing systems, processes, and strategies that can function without constant personal involvement.

This evolution isn't just about delegation—it's about building a business that creates value beyond the owner's direct labor. It requires understanding financial metrics, developing standard operating procedures, creating employee training programs, and building customer retention systems.

The Path Forward: Structured Learning and Implementation

Pool Nation's approach to business education recognizes that pool professionals need more than generic business advice. They need industry-specific strategies, real-world examples from successful pool companies, and step-by-step implementation guides.

The upcoming video series will address the specific challenges pool businesses face: seasonal fluctuations, equipment-intensive operations, chemical handling regulations, customer education needs, and the physical demands of the work. This targeted approach ensures that the education provided is immediately applicable and relevant.

Key areas that will likely be covered include:

  • Financial management and pricing strategies
  • Employee recruitment and training systems
  • Customer retention and communication
  • Operational efficiency and route optimization
  • Technology integration and automation
  • Business growth and scaling strategies

Conclusion: Building a Nation of Profitable Pool Pros

The pool service industry is at a crossroads. Technical knowledge and customer service excellence are no longer sufficient differentiators in an increasingly competitive market. The businesses that will thrive are those that combine technical expertise with sound business fundamentals.

Edgar's message is clear: success in the pool industry requires the same dedication to learning business skills that professionals already apply to technical mastery. Just as you wouldn't attempt complex equipment repairs without proper training, building a profitable business requires structured education and deliberate practice.

Pool Nation's new business education initiative represents a significant step toward elevating the entire industry. By providing pool professionals with the tools, knowledge, and strategies needed to build profitable businesses, they're working toward their stated goal of creating "a nation of pool pros."

The question for every pool service provider is simple: Are you ready to evolve from being a great technician to being a great business owner? The technical skills got you started, but business skills will determine whether you build something truly sustainable and profitable.

For pool professionals tired of working harder without seeing proportional financial returns, the path forward involves embracing the business side of the business. It's not about working more hours—it's about making every hour more valuable through strategic thinking, systematic operations, and truly understanding what it costs to deliver your service profitably.

Episode Chapters

  • 00:00 Introduction and Housekeeping
  • 05:30 Business Focus and Global Industry Similarities
  • 12:00 The Pool Professional's Journey
  • 18:45 Four Reasons Small Businesses Fail
  • 25:20 New Business Video Series Announcement
  • 30:15 Cost of Service Deep Dive

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