Firing a Customer

When Business Relationships Go Underwater: The Reality of Client Management

Running a pool service business isn't just about maintaining crystal-clear water and balanced chemistry—it's about managing relationships, setting boundaries, and making tough business decisions. Sometimes, that means letting go of clients who no longer serve your business needs. In a recent episode of the Talking Pools Podcast, hosts Wayne and Steve dive deep into the often-uncomfortable topic of firing customers and the comprehensive process of properly onboarding new ones.

While many service professionals struggle with the idea of turning away business, the reality is that not every client relationship is profitable or sustainable. Understanding when and how to part ways with problematic customers—while simultaneously improving your client acquisition process—can be the difference between a thriving business and one that's barely staying afloat.

Recognizing When It's Time to Let a Customer Go

The decision to fire a customer isn't one that should be taken lightly, but there are clear indicators when a business relationship is no longer beneficial. Steve from the Talking Pools Podcast explains one of the most critical factors:

I have some clients when I was a single poller that I was doing for like, we were negotiating, you know, and I wanted the business. So I would take them on for 40, $50 a visit or whatever it was. And that was okay, because I was the only one that was in their backyard. But as my pool company grew, and I started taking on employees, and now those employees are going out and, you know, vacuuming the pool and doing the pool route. So it kind of ate into my money.

— Steve, Talking Pools Podcast

This scenario illustrates a common challenge in growing service businesses: deals that made sense as a solo operator may no longer be profitable when you factor in employee wages, benefits, and overhead costs. The key is regularly analyzing your profit margins on each account and being willing to address unprofitable relationships.

Beyond financial considerations, there are other red flags that indicate a customer relationship may need to end:

• Excessive demands on your time: Clients who constantly text or call outside business hours with non-emergency issues
• Unrealistic expectations: Customers who treat you as their only client, demanding immediate attention for minor issues
• Chronic complaints: Clients who consistently find fault with your work, creating a pattern of negative interactions
• Scope creep: Situations where a residential pool effectively becomes a commercial operation without appropriate pricing adjustments

The Art of Professional Boundary Setting

Before resorting to firing a customer, experienced pool professionals often attempt to reset expectations and establish clearer boundaries. Steve shares an example of how he handled a client who was using a service called Swimply (essentially Airbnb for pools) while paying residential rates:

I had a guy and he just, he's running Swimply at his pool. And Swimply was basically what, like an Airbnb where you can have other people rent your pool for an hour... And these people are telling me like, nobody really uses the pool. And it's like, nobody really uses the pool, but there's 25, 30 people in the pool during the week. So that's a lot of people in the pool. So this is almost now like a commercial pool, you know?

— Steve, Talking Pools Podcast

In situations like this, the solution isn't necessarily to fire the customer immediately. Instead, it's about having honest conversations about service levels, pricing, and expectations. Sometimes, a simple adjustment in communication methods or service frequency can salvage a relationship that might otherwise be headed for termination.

When setting boundaries with clients, consider:

• Establishing clear communication protocols (phone calls vs. texting, business hours, emergency definitions)
• Adjusting pricing to reflect actual usage and service requirements
• Setting expectations about response times for different types of issues
• Creating written agreements that outline scope of services

The Financial Reality: Making Tough Decisions

One of the most challenging aspects of running a service business is recognizing when you're losing money on an account. Steve emphasizes the importance of tracking every detail:

That's why it's so important to document and measure everything that you're putting in the pool. Because now, at the end of the month, you can see, shit, I didn't, you know, I can see exactly what I put in. I can see exactly how much money I made or didn't make.

— Steve, Talking Pools Podcast

This level of detailed tracking allows business owners to identify accounts where they're actually losing money after factoring in:

• Chemical costs
• Labor expenses (including benefits and payroll taxes)
• Equipment and tool usage
• Vehicle expenses and travel time
• Administrative overhead

When these calculations reveal that you're only making $5-15 per visit after expenses, it's time for a difficult conversation with the client about pricing adjustments or service modifications.

Communicating Difficult Decisions Professionally

When the time comes to end a client relationship, how you communicate this decision reflects your professionalism and can impact your reputation in the community. Steve suggests using specific language that focuses on business realities rather than personal conflicts:

I always tell the words that I use are very specific words when I'm talking to clients. And when I'm telling them that like, I, you know, this doesn't make sense anymore. I tell them it's not this is not fiscally responsible for my business anymore.

— Steve, Talking Pools Podcast

This approach accomplishes several important goals:

• It removes personal emotion from the conversation
• It focuses on objective business factors
• It maintains your professional reputation
• It leaves the door open for future relationships if circumstances change

The phrase "fiscally responsible" is particularly effective because it's difficult to argue with—most clients understand that businesses need to be profitable to survive and provide good service to their customers.

Quality Control and Employee Management

Sometimes, client dissatisfaction stems not from pricing or communication issues, but from service quality problems. This is particularly common in growing businesses where owners are relying more heavily on employees to deliver services. Regular quality control becomes crucial for maintaining client relationships and identifying training opportunities.

Steve mentions a systematic approach to quality control:

So I'm always you know, you always want to make sure that you check up on your guys, especially if you're not a single polar. And that means like going around every once in a while and like the day after or like two days after going and checking on those pools and just giving them another test.

— Steve, Talking Pools Podcast

This type of follow-up often reveals issues such as:

• Incomplete chemical testing procedures
• Inadequate chemical treatments
• Skipped maintenance tasks
• Poor time management leading to rushed service

By identifying these issues early, business owners can provide additional training and prevent client dissatisfaction that might otherwise lead to lost accounts.

Building Systems for Sustainable Growth

The challenges discussed in this podcast episode highlight the importance of building robust systems and processes as your business grows. What works as a solo operator often breaks down when you're managing multiple employees and dozens of accounts.

Key systems that successful pool service companies implement include:

• Detailed record-keeping: Tracking chemical usage, labor time, and profitability by account
• Standardized procedures: Ensuring consistent service delivery across all employees
• Regular quality audits: Systematic checking of employee work and client satisfaction
• Clear communication protocols: Establishing boundaries and expectations with clients
• Pricing reviews: Regular analysis of account profitability and market rates

These systems help prevent many of the problems that lead to difficult client relationships in the first place.

Conclusion: Making Strategic Decisions for Long-Term Success

The pool service industry, like many service businesses, requires operators to make difficult decisions about client relationships. While it may feel counterintuitive to fire customers, the reality is that maintaining unprofitable or problematic accounts can drain resources that could be better invested in serving good clients and growing the business.

The key takeaways from this discussion are clear: document everything, regularly analyze account profitability, set clear boundaries with clients, and don't be afraid to make tough decisions when relationships aren't working. As Steve and Wayne demonstrate, successful pool service professionals understand that not every client is the right fit, and that's okay.

By implementing systematic approaches to client management, quality control, and financial analysis, pool service companies can build sustainable businesses that serve their best clients exceptionally well while maintaining healthy profit margins. Sometimes, the best decision for both the business and the client is to part ways professionally, allowing both parties to find better-fitting relationships.

Remember, firing a client doesn't represent failure—it represents strategic business management and the wisdom to focus your resources where they can do the most good.

Episode Chapters

• 00:00 Introduction and Hurricane Milton Update
• 05:30 When to Fire Unprofitable Customers
• 12:15 Setting Boundaries with Difficult Clients
• 18:45 Managing Client Communication Expectations
• 25:20 Quality Control and Employee Management
• 32:10 Professional Ways to End Client Relationships