4 minute read
Pricing Pool Service - Talking Pools
An Op-Editorial by Rudy Stankowitz & Andrea Nannini
We were having a conversation earlier in the Talking Pools Facebook Group about what to charge for Pool Service. People were discussing the problem of new pool service companies undercutting the market and coming in at a lower price.
Many folks were suggesting that when you do that you open up the doors to shoddy service. Ultimately they said that operating on price alone; companies have a propensity to do a bad job and disappoint their customers.
One of the people we were speaking with said that as a new company, it was harder for them to compete against seasoned well established pool service firms. Since they were less experienced they felt the need to have to compete based on price alone.
Now see, here’s a perfect scenario where someone is projecting their own lack of knowledge and lack of self-worth into commoditizing pool service.
Establish What You Should Be Charging For Pool Service
When you look at your pricing, what you would pay for something should not even factor into the equation. Your pricing should be based on what the market will bear. The best way to figure out what you should be charging for pool service is to research pricing in your market. Do a competition survey and find out what your competitors are charging and just average it out. Whether you’re in the high-end or in the low-end you should still be pricing your services at an average of what other companies in the market are charging.
Why It’s a Bad Idea to Low-Ball Pool Service Pricing
Customers have become used to seeing advertisements for discount pool cleaning services. Many have been paying low prices for decades because new companies start up in their area all the time.
New firms want to get their business going as quickly as possible so they undercut everyone in the market to build up their route as fast as they can. They charge as low as they can and do as many pools as they can. Consequently, everyone suffers.
Failing to factor in all of the variables in coming up with an industry scale pricing model is a recipe for disaster.
A Permanent Discount-Pricing is an Unsustainable Business Practice
What happens when you try to be the lowest price in your market is a combination of the following. You’ll find yourself working harder than ever, doing 100 pools a week to keep up with what you sold. This isn’t sustainable.
Before long, companies find themselves skipping steps, cutting corners and providing nominal quality that will eventually lose them the account. The customer then wants to pay $70 to the next company that comes along.
The cycle repeats itself as new companies enter the market following the same flawed strategy until eventually, the consumer perception of what pool service is supposed to cost has been drastically diminished. This is a practice that has to change for the good of everyone in our industry.
When new pool service companies set up shop in town they need to do their research to ensure they are charging prices in line with what other companies are charging. When they fail to accurately assess the prices other local firms are charging, they showcase their inexperience and allow the customers to dictate how much pool service should cost.
The customer values their time and money the same as we do. As an industry we need to ensure we are providing them a premium service; one that doesn’t operate on a cut-throat pricing model. It is how we collectively determine what pool service should cost.
When pricing what to charge for pool service do some research in your local market to see what other firms are charging first before trying to compete on price alone.
Listen to the Podcast on the Talking Pools Podcast
