I couldn’t agree more!  I can’t say this is true for all areas but in my area, the biggest issue is the lack of understanding from those out here as business owners.  We need more folks willing to educate or consult for some of these others who are either just starting out or have been stuck in the same spot for years.  The sad truth most in our area cannot tell you some of the basics that are needed to make the needed decisions as a business owner.  You need to be able to determine what it costs you per month to run your company, you need to know what your average cost to service a pool is, and you need to know how to create and use a P&L to determine if or how profitable you are as a company.  These will be the same ones running around doing pools for $115-$120 a month and then go under in the first year leaving customers high and dry.  

We are the ones who control this market and as a group, we need to start controlling it.  If we were all on the same page or close you have to ask yourself what could you be making.  We do work hard, we do take on a lot of liabilities out here every day, and we do spend a lot of time and money doing the job better than our competition.  Why wouldn’t we charge more for that?  If you believe you are not worth more then why would your customer believe differently?  This is not just a job it's a long-term investment to provide for your family the rest of your life so treat it as such.  No one should be going into business to just get by.  Anyone not wanting to pay your rate is just not your customer it is that simple.  Our area is full of the $120 guys who say they can’t get more or they’ll lose accounts if they rate hike.  They are losing money now and do not even realize it.  I try to help educate everyone out here I meet in passing so that we can all be successful.  Some are thankful and stay in touch while others give me the deer in a headlights look and have no idea what I’m saying.  

The bottom line I suppose in all this is to let everyone know a race to the bottom is also a race to being out of business sooner than later.     

Well said and I concur with the OP and the comment above. I’ll admit that I was guilty of this at first too. I had very competitive rates when I first started out because I was eager to grow my route. Luckily, I have business experience and quickly changed that approach shortly after starting by raising my rates more in line to what they should be and even sometimes well over what they should be for accounts that maybe I didn’t really want or didn’t feel like doing and guess what, most would still sign up. What I have experienced is that customers are just happy that you answered the phone because most if not all the companies they called, did not. That said, they are likely to pay any reasonable amount you provide. As mentioned above, we have control of the market rates. There is plenty of pools out there for all of us. 

I also agree, but I realized that nobody  mentions what they feel is a fair price or how they come to this conclusion . I think it's useless to complain about the low ballers and not state where your prices are, or where you feel the right price is.  As we all know , no pool is alike, enclosed or open , 10k gallons , 70k gallons . Do we price per gallon, how many tress are surrounding the pool, is there a spa , are they snow birds , chlorine, salt, bromine, organic . Do they have pop ups, auto cleaners, are they going to be a pain in the back side. So many variables . There is one thing that can be concluded and is for certain , we all want to make the most money per pool, per stop. If we can find a way to collaborate as pool maintenance companies and set a price locally , now that would move the needle . until then most small companies will fear the rejection, or cancelation until they stop caring , which is while they are on their way out. I love our industry , and yes im a small company 300 accounts , I try to use a set price per pool but at the same time I try to read the potential client . I know what the big companies charge as well as the owner operator . I find my pricing in the middle at the moment . example my prices rang from 125-560 . yes 560 2 stops per week ( monster pool) . I START AT 125 for an enclosed 15k gallons or less salt pool. I go up from there. the price range for the competition 95( owner operator)to -160 ( big companies ) . this upcoming year I will be raising prices 10-15 per pool .

I think the fair price for the easiest pools should fall around 140-150 and up from there . We can't keep adding pools to our techs and expect quality work without fair comp. 

So lets figure out a way to join all the pool maintenance companies across the nation on one free platform so we can set the market price and not allow the homeowners to put us into a race to the bottom. 

So I would ask you, do you feel your service is subpar to the “bigger companies”?  You being an owner-operator should have no real bearing on pricing, your service should determine that.  Big companies don’t have some special power to charge more just by being a brand name or national chain.  Are you okay making less than your competition?  I sure wouldn’t be, “if they can get it then why can’t we” has always been our mentality. If your service is on par with the company getting $160 then your price should be $160 that’s the market for that type of service regardless of name.  Why would you be lower?    

No customer can ever put you into a race to the bottom, that is a personal decision based on the fear you cannot grow at the larger price for your service.  Those that aren’t okay with your price are also not your target customer.  If you're signing every account you bid then there is an issue, it means you are too cheap.  I made this leap over a year ago but I am a numbers guy and the numbers didn’t make sense.  I still added 140 accounts last year and 75 already this year.  Our starting rate is $169 and that leaves us about a 20% margin which isn’t great but its acceptable.  

Let's say we are both at 300 accounts (I have 340 actual accounts) to make this easy your current starting is $125 and mine is $169.  That means this is how we compare in billing:

300 x 125 = $37,500 monthly and $450,000 yearly 

300 x 169 = $$50,700 monthly and $608,400 yearly 

Hope all of this doesn’t come off wrong, but this is exactly what I was referring to in this thread.  I hope this helps in some way.  

This is such a great article. I run into so many other companies that undercut everyone in order to pull more customers. Two things happen here: the business owner makes zero profit and works themselves to death in the process, and the customer does not get what they deserve from a pool professional. 

There are customers out there that will price shop, and honestly they will get what they pay for. In turn, the customers that want quality, honest, reliable service will pay a better price. The key is, in my experience, being able to forge a good relationship with the customer and ensuring a trust bond is built with them. 

When we raised prices this year, we did not lose one customer. No one even questioned it, which is exactly what we work so hard for. Forging trust through hard work, trustworthiness, and educating the customer on their pool is what we have founded our business on.

Bottom line is, don’t undervalue your business and yourself, in turn you undervalue the entire profession. Like expressed previously in this thread, if a customer won't pay the price your business deserves and provides, then they aren't for you. 

The great thing about this industry is in most places there is a very lower barrier to entry. But that same low barrier to entry is the problem for the “race to the bottom”. There are so many variables in maintaining a pool properly which invites many of the bottom feeders to cut corners which allows them to lower the price and race to the bottom. 

One of the main issues with this is the lack of education the home owner has. They think as long as the pool is clear and blue the company must be doing a good job. I can’t count how many pools I’ve tested on estimates that fit the clients perceived “well cared for” only to find the salt system is cranked all the way up with zero stabilizer and pH through the roof, or a zero alkalinity and piss yellow pH with a stabilizer over 100. Both appear to be well taken care of to the untrained eye but I wouldn’t want any of my clients swimming in either of those pools. 

So we come in at a much higher rate, but we do things the way they should. Actually balance the pool, maintain the equipment, etc etc. 

All the things you mentioned OP; honesty, integrity, dependability are all things to be very transparent about. Clients love that stuff and only shows the value you bring to the table, so the extra money to them is well spent. 

Hi Mike,

I completely agree with you. Competing on price alone is a dangerous race to the bottom that harms the industry in the long run. At ACORB Pools, we focus on building trust with our customers through honesty, integrity, and communication. Educating clients and providing dependable service sets us apart, and it’s these small but impactful actions that create loyalty. Like you said, we’re all in the service business, and the more we make it easy for customers to trust us, the stronger our businesses will be.

Best,  
Gonzalo, ACORB POOLS