Navigating the Waters of Pricing Your Pool Service: Tips and Strategies
If you’re new to pool service or recently decided to add service options to your existing business, you may be unsure how much you should charge. Many factors go into pricing pool service, starting with your pool service costs and including your local market, competitor offerings, and more.
Tips for Pricing Your Pool Service
Determine Your Pool Service Cost
You are in business to make a profit, so you obviously have to charge your customers more than it costs you to provide the service. When pricing your pool services, write down all your costs. Remember to include materials, supplies, and any equipment you may need, considering that it will need to be replaced at some point.
When looking at labor costs, factor in the hourly wage you pay, employer taxes, and any employee benefits you offer. Finally, determine the overhead costs of adding this service to your business. This may include renting office space, vehicle maintenance and gas, insurance, and office-related expenses.
Spend Some Time on Market Research
Your local market will determine how much you can charge. Like anything else, pool service pricing varies by area and is strongly impacted by simple supply and demand. The ratio of pools to pool service providers influences how much you can charge. A higher number of providers generally makes for a more competitive market where pricing will significantly affect market share. Location also plays a role, as typical weather conditions and the length of the season will dictate how much you need to earn per client to make a service business profitable.
Find Your Competitors
You can find competitors using simple search terms like “pool services,” “pool cleaning,” or “best pool cleaning” combined with the name of your town or geographical area. Focus on those at the top of the search results, especially if they appear in multiple searches. Look at their websites to see their services and how much they charge. Look for a pool service pricing list and, if necessary, contact them to request it. Find out what services are included, how much any extra services cost, if they offer any discounts, and whether they charge by the hour or service type. Record this information in a spreadsheet to keep the information organized and spot trends.
Compare Your Services
Do you offer the same services as your competitors? If so, what makes your service different? Are there changes you can make in pricing your pool service that would make your pool service fees more attractive to customers? If competitors charge by the hour, customers may be attracted by a flat fee so that they know what they will pay upfront. Does your competition charge a premium for after-hours service? A slightly higher per-hour rate may be less expensive and preferred by customers over a surcharge. If you offer something no one else does, like expertise in salt water or eco-friendly systems, customers may be happy to pay higher fees for your expert service.
Choose What Pool Services to Offer and Set Your Prices
Once you understand the market and know the “going rate,” you will better understand what pool services make sense to offer as part of your business plan and can confidently set up competitive pricing. Decide what services you will provide: regular maintenance, pool openings and closings, equipment cleaning and repair. Then, consider whether you want different service level packages or a flat-fee model and what frequency of services you will offer. For example, a premium package could include a specified number of emergency visits each season.
Pricing Your Pool Service: Strategies to Conquer the Competition
Offer something your competitors can’t. Take advantage of neglected niches, like particular pool types or eco-friendly services. Take market research a step further: check your competitors’ reviews. Look for negative comments and focus on how you do things better. If you offer services they don’t, highlight that in your advertising and price lists.
Consider dynamic pricing. Periodically adjust your prices based on customer demand, market conditions, and the season. Offering a lower price to customers who sign up for a seasonal contract in the off-season allows you to charge more in-season.
Bundle services. Offer a group of services together as a package deal or a discount for customers who sign up for a service package with a pool installation or pool opening. Many of these discounts will pay for themselves, either in money saved when a tech performs multiple tasks in one visit or knowing how many employees you will need to schedule.
Offer promotional pricing. This can be a percentage off, BOGO offers, holiday or limited-time sales, referral discounts, or prepay discounts. You can also consider special deals such as discounts for first-time customers or long-time customers who make referrals.
RB Software Helps You Upgrade Every Aspect of Your Pool Business
Pricing your pool service can feel like a challenge, but by taking the appropriate steps your business can be competitive and thrive. From determining pool service costs to billing, scheduling, and ongoing customer communication, RB’s software will help you organize your business and keep it running smoothly. Our eBook, Your Ultimate Guide to Running a Smooth and Streamlined Pool & Spa Business, offers additional advice and tips. If you’re ready to see the software in action, check out our on-demand virtual demos!