When the Ice Thaws

Pool builders and service professionals on the western and southern coasts of the country have it good: because of moderate year-round temperatures, every season is busy season. Come November in the Midwest or Northeast, however, business starts to wane and, by the following march, pool pros are anxious for grass to start poking through the snow. In these regions, it takes preparation, and maybe a few hard lessons over the years, to survive the off-season and gear up for constant work again.

What the off-season looks like
Generally, the off-season in these wintery regions — or relatively slower months when it comes to revenue — is from the end of October to March or April. During that time, some pool professionals may dig into other industries to make ends meet, such as snow removal or Christmas tree disposal. All Pool Services in Little Canada, Minn., tried offering other services for awhile.

“Now we pretty much concentrate on selling hot tubs, barbecues and saunas,” says owner Rob Anderson. “We also cater to the commercial market, so we’re able to provide indoor pool service to hotels, motels and apartments.” He is also looking into establishing a working relationship with local indoor water parks and recreational pools.

Since its offerings are strictly pool service–related, Diamond Pool & Spa, Inc, in Bridgeview, Ill., may be an exception to the off-season concept, despite its suburban Chicago location. “We are unusual in that we are open year-round, and that’s something we pride ourselves on: being a solid, available-all-the-time company,” says business manager Lynette Shemanski. Diamond also provides commercial services, which is a majority of its slower-season revenue.

In East Lyme, Conn., Pools Etc., Inc., also has very little down time, staying open year round, and six days a week in winter. “We do take some time off around Christmas and New Year’s Day, but preparations for the upcoming season begin as soon as we settle into the first full week of January,” says Mark Jamieson, director of operations. Pools Etc. also has a significant number of service accounts with indoor pools, hotels and hot tub owners that require weekly maintenance visits even during the winter months.

Nicholas Pools in Toms River, N.J., closes its doors from mid-December to the end of January. “We are there on the weekends and by appointment for our customers,” says vice president Theodora Sergiou. “Since this has been our practice for over 15 years, our customers know to come and purchase supplies at the beginning of December — or that we will meet them there and open if supplies are needed or send a tech if required.”

Staying alive
What does Anderson do during the off-season? “Um, borrow money,” he jokes.

“Cash flow is tricky,” Shemanski says of the slower months. “You have to get creative and be very mindful of where and how you’re spending your dollars because it is difficult to get through the lean months. We do our best to prepare and, by the time March rolls around, we are definitely ready for a little bit more spring income.”

“Preparing financially is always a struggle with a seasonal business,” Sergiou says. She recommends putting at least 30 percent aside of what you take in during the busy summer season in order to pay your winter bills. “Many forget that you still have to pay the rent, insurance, taxes, utilities and loans over the winter months.”

One lesson Shemanski learned the hard way? Just because there is a deal at the end of the year doesn’t mean you can afford it. “We used to make purchases from some of our suppliers’ year-end sales,” says Shemanski. “With the cash flow going out, we were sitting on the inventory too long before that new revenue came in.” Though it costs a bit more, Diamond Pool & Spa now takes advantage of early buys before the active season starts.

Pools Etc., Diamond Pool and All Poolside Service also offer loyal customers the opportunity to do an early renewal of their annual service contracts. “We have what we call an Advantage Program, and our customers become members by paying a nominal fee,” Anderson says, “then we offer them discounts on their service and purchases throughout the year. We send those out at the beginning of the year so we can get all those customers scheduled with their preferred dates before new customers sign up.”

What about the staff?
All Poolside Service goes from 12 to 15 employees in winter to more than 30 in summer. “We’ve been pretty fortunate through the years to have certain individuals who like getting laid off and will come back,” Anderson says. “They have other interests they can delve into in the winter, whether it’s productive or relaxation.”

For those employees who stick around, Anderson recommends using the off-season to improve their knowledge and your own, whether it’s business management or technical skills. In order to save on overhead, he utilizes training and information his manufacturers provide.

Sergiou also believes in furthering education when there is down time: Nicholas Pools staff attends pool and spa shows, industry seminars, and business-partner educational conferences to prepare and plan for the new year.

“Most of our employees are year-round and salaried,” Jamieson says. “We don’t lay anyone off.” Instead, he makes sure the Pools Etc. staff is participating in continuing education for current certifications, as well as pursuing higher levels of certification through Connecticut-run programs and industry associations. “We typically hire some seasonal help — college students — by the end of March and will train them with in-house PowerPoint presentations, online classes and in-the-field instruction as soon as they are hired.”

Springtime preparations
Jamieson and the Pools Etc. staff stay busy during the off-season with many tasks to fully prepare for March. Some of these include:

     • Performing a full inventory and restocking as needed

     • Servicing and preparing vehicles, equipment and tools

     • Updating and improving IT infrastructure

     • Planning spring and summer marketing efforts

     • Preparing quotes for pool services it will need to perform in the spring

     • Planning for construction projects already scheduled for the next year, including pulling permits

     • Following up with leads to secure new customers

     • Attending industry-related expositions and classes

While All Poolside Service does similar off-season preparation, Anderson makes sure to keep his overhead low. “Don’t be afraid to minimize everything you possibly can in the winter,” Anderson says. “If you have a good year, don’t expect the next year will be the same way. Protect yourself from the ups and downs of this crazy business.”

Creating an advertising budget to save money throughout the year is a top priority for Sergiou. “It is too easy to spend a lot of money advertising your product, so make a budget and stick to it,” she says. “Decide what you can afford to spend and do not add to it because you are being offered special rates. It is better to spend the money on providing a quality product and service so customers recommend you than to try and impress with advertising.”

Jamieson echoes the overall minimalist approach. “Play it conservative,” he says. “You’re in it for the long haul. Just being in business is risky enough. But don’t quit.” Regardless of your approach to the slower months, Shemanski emphasizes preparing for the busy season is crucial. “Have a plan,” she says. “It’s going to change, so then you’ll tweak it. But if you don’t start with a plan, you’ll be sorry in the end.”