Correctly Valuing Your Rates for Cleaning Visits - Peter, Shane, Lee

If you're running a pool service business and barely breaking even—or worse, losing money on every job—you're not alone. Many pool service professionals drastically undercharge for their services, failing to account for the true costs of running a business. In a recent episode of the Talking Pools Podcast, industry veterans Peter, Shane, and Lee dive deep into the art and science of correctly valuing your pool cleaning services.

The Shocking Reality: Most Pool Services Are Undercharging

The conversation kicks off with a sobering story from Peter about a new pool service operator who was charging dangerously low rates:

I met with a guy now he is a listener I'm not going to name him. I fairly recently started up his own pool service business and he had a few questions and rang up a few times for a chat... And as he was talking I thought hang on something's not right here so I said what do you charge per hour? What do you charge your customers as a business? And he told me and I said you need to at least triple that.

— Peter, Talking Pools Podcast

This isn't an isolated case. Many pool service professionals make the critical error of only considering their direct labor costs without factoring in the numerous overhead expenses that can quickly eat into profits. The result? Businesses that work harder but never seem to get ahead financially.

Flat-Rate vs. Hourly: Choosing Your Pricing Strategy

Shane from New Zealand shares his company's approach to pricing, which challenges the traditional hourly billing model popular in many markets:

So what we decided to do and this was taken a little bit from my previous employment as well is we did decide to do a set price. I'll wait for the hate mail to come in now. I'm sure it's on its way. Well the US, lots of people in the US do it. It's not common practice here but it is common there.

— Shane, Talking Pools Podcast

Shane's company conducted market research, analyzing the top 10 companies in Auckland to determine competitive rates. They developed a tiered flat-rate system based on pool volume:

• Under 50,000 liters
• 50,000 to 90,000 liters
• 90,000 to 120,000 liters

Importantly, their flat rate covers only basic chemicals (chlorine, alkalinity, pH, calcium, stabilizer, salt), with specialty chemicals charged separately. This approach provides customers with predictable budgeting while protecting the business from unexpected chemical costs.

The customer preference was clear—95% of Shane's surveyed clients preferred knowing their exact costs upfront rather than variable hourly billing.

The Hidden Costs That Kill Your Profit Margins

Peter breaks down the often-overlooked costs that must be factored into your pricing structure. In Australia, these include:

• Annual Leave: 4 weeks per year of paid vacation
• Personal/Sick Leave: 2 weeks per year
• Public Holidays: 10 days annually (varies by state)
• Superannuation: 11% of annual wages (retirement funding)
• Leave Loading: 17% bonus on holiday pay
• Payroll Tax: 5.5% additional tax when wages exceed $1 million annually

As Peter explains the mathematics of employment costs:

So there's eight weeks that I have to pay someone for that they're not bringing in any money, not bringing in any income to help cover the costs. So we need to factor that on top of their hourly rate.

— Peter, Talking Pools Podcast

These costs compound quickly. What appears to be a $25/hour employee actually costs significantly more when you factor in all mandatory benefits and time off.

Weather Clauses and Unexpected Situations

One critical aspect of pricing that many overlook is how to handle extraordinary circumstances. Shane addresses this challenge:

We do have clauses in there. If anything is out of the norm that we need to add as service grows on the road, we know roughly how much pool is going to need each visit... As long as you're informing the client if there is anything out of the norm, they have been made aware.

— Peter, Talking Pools Podcast

These situations include:

• Extreme weather causing chemical dilution
• Equipment failures requiring additional service time
• Heavy pool usage (parties, events) requiring shock treatments
• Customer negligence (leaving hoses running, improper chemical addition)

Clear communication and well-defined terms of service protect both the business and maintain customer relationships during these challenging situations.

Regional Challenges and Infrastructure Issues

The discussion also touches on unique regional challenges that can affect service costs. Peter describes infrastructure problems in Perth, Australia:

As urban sprawl increases and population density grows without corresponding infrastructure improvements, some suburbs experience severely limited water pressure. This seemingly minor issue can significantly impact service time, particularly when cleaning cartridge filters or filling pools.

These regional factors must be considered when setting rates. Some areas may require premium pricing due to infrastructure limitations or longer travel times between jobs.

Building Your Pricing Formula

To develop sustainable pricing, consider this framework:

Step 1: Calculate True Labor Costs

• Base hourly wage
• Mandatory benefits (varies by country/state)
• Paid time off
• Training and development costs

Step 2: Add Business Overhead

• Vehicle costs (fuel, maintenance, insurance)
• Equipment and tools
• Insurance and licensing
• Administrative costs
• Marketing and customer acquisition

Step 3: Include Profit Margin

• Business growth and reinvestment
• Emergency fund
• Owner compensation

Step 4: Test and Adjust

• Monitor job profitability
• Adjust for seasonal variations
• Account for regional factors

The Bottom Line: Charge What You're Worth

The pool service industry provides essential maintenance that protects both health and significant financial investments. However, too many operators undervalue their expertise and fail to account for true business costs.

Whether you choose flat-rate or hourly billing, the key is understanding your complete cost structure and pricing accordingly. As Peter's story illustrates, the difference between success and failure often comes down to having the courage to charge what your services are actually worth.

Remember, customers generally prefer predictable pricing and are willing to pay fair rates for reliable, professional service. By implementing proper pricing strategies with clear terms and communication, you can build a sustainable business that serves both your customers' needs and your financial goals.

The pool service industry needs profitable, professional operators. By charging appropriate rates, you're not just ensuring your own success—you're helping to elevate the entire industry's standards and sustainability.

Episode Chapters

• 00:00 Introduction and Weather Check-in
• 05:30 The Undercharging Problem Story
• 10:15 Shane's Flat-Rate Pricing Strategy
• 18:20 Weather Clauses and Special Circumstances
• 25:45 Hidden Employment Costs Breakdown
• 32:10 Regional Infrastructure Challenges
• 38:30 Calculating True Service Costs