As business costs inevitably rise, you’ll have to consider a pool service price increase to maintain profitability.
However, it’s crucial you don’t let the fear of losing clients keep you from making price adjustments.
Although some clients will inevitably leave, there are a few ways you can minimize the chances of them leaving for the competition.
Use the advice in this article to successfully complete a pool service price increase and minimize the risk of losing clients.
With the inevitable rising business costs, you’ll need to consistently reassess prices based on current industry standards.
For example, the recent chlorine shortage has almost doubled the cost of chlorine within the past year.
As a result, successful businesses have been forced to increase pool service prices in order to remain adequately profitable.
In turn, regular price assessments on client profitability need to be performed. Also, this allows you to discover your current break-even point so that profit goals can be achieved.
Although, don’t get too carried away with comparing your prices to the competition. Due to the local and state costs and averages, every pool service business’ ideal price greatly varies.
By properly timing your price increase, you’ll be able to minimize client losses and keep as many of them as possible.
Much like other field service industries, the pool service industry typically has busy and slow seasons based on the area.
Which means, the busy selling season during the months leading up to the spring and summer is likely one of the worst times in your area to raise prices.
Keep in mind, the competition is most likely to try to steal your clients during the busy selling season.
For instance, the competition will likely target your clients with ads and other tactics in an attempt to poach them.
Though, there are times when raising pool service prices during these times is unavoidable. For example, if a client is unprofitable, then you’ll likely need to raise their price.
Although, in these instances it’s usually best to save your valuable resources and allow the unprofitable client to leave for the competition.
Even though you shouldn’t raise prices during the busy selling season, here are a few times when you should consider implementing a new price change:
Always remember, it’s best to increase prices when the competition is more likely to be too busy to target your clientbase.
In addition, many clients are likely to forget about the price increase by the time pool season ends.
Before you roll out a new price increase onto your entire clientbase, it’s important to first raise prices on your least profitable clients.
As a result, you can perfect the process with minimally profitable clients before rolling it onto more profitable ones.
This way, if you lose clients, you’ll only lose minimally profitable ones (as opposed to your most profitable accounts).
To start, reassess all of your existing accounts to determine current profitability. Then, compare it to your profit goals to determine which accounts do/don’t match up.
Plus, this process is simple and easy when you use Service Autopilot!
Which means, you don’t have to waste endless hours crunching numbers on a calculator and flagging down files to examine profitability.
Manage your clients and employees all in one system
One of the biggest aspects of effectively releasing a successful pool service price increase is by sending a letter explaining the new changes.
For example, repeat and recurring clients receiving routine pool cleaning and services should receive a letter.
In addition, this letter can be used to really sell clients on why their prices are increasing as well as reassure them of their continued high-quality service.
[insert pool service business logo]
Dear [Client Name],
Due to rising economic factors, [pool service business name] will be adjusting our prices soon.
Our billing reflects the labor, chemicals, equipment, maintenance, fuel, office/billing expenses, and other various costs, which make up the cost of our services.
In order to continue providing you with the highest-quality pool services you deserve, our pool service price for [insert pool service client’s service/agreement/contract] will increase to $XXX.XX on Month Day, Year.
We will continue to invest in the best chemicals, materials, equipment, and training available to us. This will allow us to send the best pool service technicians to your property.
We're continuing our commitment to a complete satisfaction guarantee. If you’re not 100% satisfied with your pool services, then we will return, free of charge to resolve the issue.
As always, call our office at XXX-XXX-XXXX with any questions, comments, concerns, or updates to your scheduled services.
[pool service business owner name]
[pool service business owner signature]
After sending your pool service price increase letter, you can test and perfect the process before raising prices for your remaining clients.
Plus, you can measure the success of your process by sending email and text surveys. As a result this feedback can perfect the process for more profitable clients.
Remember, it’s better to raise prices on a low-profit or minimally profitable client and lose them than it is to keep them on.
After all, you don’t want to waste valuable time and resources on unprofitable clients when those resources could’ve been spent on profitable ones.
Even though a pool service price increase might seem intimidating, you can use these steps to simplify the process and effectively raise prices now!
Originally published March 10, 2022 7:00 AM