E-240 Pool Nation Podcast - Brace for Impact: Surviving Tariff Hikes in the Pool Industry
Key Takeaways
- Focus on controlling what you can control rather than worrying about macro-economic factors beyond your influence
- Consider strategic partnerships with domestic suppliers to reduce tariff exposure and price volatility
- Build more resilient business models that can withstand ongoing economic pressures rather than hoping for a return to pre-COVID conditions
- Communicate value effectively to customers who are becoming more price-sensitive across all sectors
- Prepare pricing strategies that reflect the new reality of higher costs while maintaining competitive positioning
The Never-Ending Price Climb: Why Pool Pros Can't Catch a Break
If you're a pool professional, you've probably felt like you're trapped in a never-ending cycle of price increases. Just when you think costs might stabilize, another wave of tariffs, inflation, or supply chain disruptions hits the industry. The latest episode of Pool Nation Podcast tackles this head-on, with hosts Edgar De Jesus, John "JJ Flawless," and Zach "The Pool Boy" Nicholas diving deep into the reality of surviving tariff hikes and the broader economic pressures facing pool professionals today.
What makes this conversation particularly relevant is how the hosts connect the dots between macro-economic trends and the day-to-day challenges pool pros face. From equipment costs to grocery bills, the ripple effects of inflation are touching every aspect of business and personal life.
The Harsh Reality of Today's Economic Landscape
The conversation opens with a stark reality check about how expensive life has become across all sectors, not just the pool industry. As the hosts point out, what used to be considered a comfortable living wage now barely covers basic expenses.
Life is expensive, dude. And that is like – I was just thinking about this... there's so much truth behind a lot of things... somebody who said, when I was making X amount of money and then me when I was making over $100,000 a year, what my life would be like. And how you live in poor now and the income you need to generate in order to live, like, just the humble, peaceful life that you thought you wanted or needed when you were a kid.
— John, Pool Nation Podcast
This sentiment resonates with many pool professionals who find themselves working harder than ever but struggling to maintain profitability. The hosts use relatable examples, from housing costs to grocery bills, to illustrate how widespread these economic pressures have become. A million-dollar home, once a symbol of luxury, now represents a basic family residence in many markets.
The Pool Industry's Perfect Storm
The pool industry faces a unique set of challenges that compound the general economic pressures. Equipment costs have skyrocketed, labor shortages persist, and now tariffs add another layer of complexity to pricing strategies. The hosts emphasize that this isn't just a temporary blip – it's a fundamental shift in how the industry operates.
For our industry, it just feels like it doesn't stop. That's why I sent that little meme. I don't know if you guys saw it. It was like the guys walking off the pirate ship and everything exploding behind. And it's like, oh, here we go again.
— Edgar De Jesus, Pool Nation Podcast
This "here we go again" mentality reflects the exhaustion many pool professionals feel when facing yet another round of price increases. The industry has been dealing with supply chain disruptions, material shortages, and labor costs since COVID, and tariffs represent the latest challenge in an already difficult environment.
Beyond Tariffs: The Broader Impact on Pool Businesses
While tariffs grab headlines, the hosts make it clear that they're just one piece of a larger puzzle affecting pool businesses. The real challenge lies in how these various cost pressures compound each other, creating a situation where traditional pricing strategies may no longer be sufficient.
Consider the ripple effects: higher equipment costs due to tariffs, increased labor costs due to inflation, rising fuel costs affecting service routes, and customers who are also feeling financial pressure. Pool professionals must navigate all these factors while maintaining service quality and business profitability.
It's impossible to go to the grocery store and spend less than $500. And we have a family of six, right? And we're just going, it's like, oh, let's cook and not eat out and save some money and let's cook. Bullshit, bro. You know, you go to make like a pasta, right? You know, you get the ingredients to make like a pasta sauce or something like that. Something simple, you know what I mean? With some meat or whatever it may be. And you're at like 150 bucks.
— Edgar De Jesus, Pool Nation Podcast
This personal example illustrates why customers are becoming more price-sensitive. When basic necessities cost more, discretionary spending on pool services and equipment naturally comes under scrutiny.
Strategic Responses: Controlling What You Can Control
Despite the challenges, the Pool Nation hosts maintain their philosophy of focusing on what can be controlled. This mindset shift is crucial for pool professionals looking to not just survive but thrive in this environment.
The key is developing strategies that address both immediate cost pressures and long-term business sustainability. This might include renegotiating supplier relationships, implementing more efficient service routes, or restructuring service packages to better reflect current costs while providing clear value to customers.
One interesting point raised during the discussion is the concept of "buying American" as a way to potentially avoid some tariff impacts. Products like Aquastar, which haven't raised prices in two years, represent the type of strategic partnerships that can help insulate businesses from some economic volatility.
The Psychology of Pricing in a High-Inflation Environment
The hosts touch on an important psychological aspect of current economic conditions: the normalization of higher prices across all sectors. This creates both challenges and opportunities for pool professionals.
On one hand, customers are becoming accustomed to higher prices for everything from coffee to cars. On the other hand, they're also becoming more discerning about where they spend their money. This means pool professionals must be more strategic about how they communicate value and justify pricing.
More money, more bills as you grow and you start making more money. You work hard. You want to get a nicer house. You want to get a nicer car. You want to eat out more often... So your expenses start to go up. And it's the rat race, literally. But at some point, it's like almost, what the hell, man? And we work so hard.
— Edgar De Jesus, Pool Nation Podcast
Looking Forward: Building Resilience in Uncertain Times
The conversation ultimately points toward the need for pool professionals to build more resilient business models. This means diversifying revenue streams, building stronger customer relationships, and developing operational efficiencies that can withstand economic volatility.
The hosts emphasize that while individual pool professionals can't control tariffs, inflation, or broader economic trends, they can control how they respond to these challenges. This includes everything from pricing strategies to customer communication to operational efficiency.
Building resilience also means preparing for a future where higher costs may be the new normal. Pool professionals who adapt their business models now will be better positioned to succeed as the industry continues to evolve.
Conclusion: Embracing Reality and Taking Action
The Pool Nation Podcast episode serves as both a reality check and a call to action for pool professionals. While the economic environment presents significant challenges, it also creates opportunities for businesses that can adapt effectively.
The key takeaway is that success in this environment requires a fundamental shift in thinking. Rather than hoping for a return to pre-COVID pricing and economic conditions, pool professionals need to build business models that can thrive in the current reality.
This means embracing strategic pricing, focusing on value creation, building operational efficiency, and maintaining strong customer relationships. Most importantly, it means controlling what you can control while adapting to the factors you cannot.
As the hosts remind us, the pool industry has weathered many storms before. Those who approach current challenges with the right mindset and strategies will not only survive but position themselves for long-term success in an evolving marketplace.
Episode Chapters
- 00:00 Introduction and Banter
- 05:30 The Economic Reality Check
- 12:15 Tariffs and Pool Industry Impact
- 18:45 Controlling What You Can Control
- 25:20 Strategic Responses and Solutions
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