Print full article

Tips for pool and hot tub dealerships to compete against Internet and big-box retailers

Tactics: Address and satisfy unsatisfied needs

A common phrase in the pool and hot tub dealerships community is “One cannot compete against Wal-Mart.”
A common phrase in the pool and hot tub dealer community is “One cannot compete against Wal-Mart.”

Great businesses are always built around discovering and solving unsatisfied needs. Pool and hot tub owners have many. Saltwater pool customers are a good example, as they comprise 20 per cent of the North American market (one in five customers) and many of them go to big-box stores.

These consumers believe they are part of a special breed and wish to be respected for that. They paid more for their pool to be equipped with a saltwater system in comparison to what a traditional pool would cost. They want to have their unique needs addressed; their pools are different, as are their reasons for buying a saltwater system. They do not want a complex, traditional, weekly pool care program; they want simplicity and problem-free maintenance. It is a win-win scenario for dealers who can provide these products and services for this client base.

Action steps:

To succeed at this, dealers should seek out higher performing, unique products that fulfil unsatisfied needs, and build their businesses around them. Further, the products and systems being promoted should meet three criteria:

  1. They solve unsatisfied customer needs;
  2. They increase profits and customer retention; and
  3. They are unique with limited market access.

Focus: Create exceptional and personalized customer experiences

The soft underbelly of big-box and Internet vendors is competent, knowledgeable, personalized customer care. Pool and hot tub businesses should exploit this. Hire and train exceptional staff, and teach them about the importance of ‘soft skills,’ e.g. how to make eye contact, remember client’s names, saying “Thank you,” and being proactive in preventing problems. Even more so, make a habit of following up with customers on every pool or hot tub problem. Consumers love the personal approach specialty businesses can provide.

Action steps:

To do this, dealers should modernize their hiring strategy and focus on those candidates with great ‘soft skills.’ Many dealers in the pool and hot tub industry use http://hiringsmart.com/, as a tool to hire better. Finally, as previously mentioned, dealers should follow-up on all client problems with a personal call to ensure what was recommended resolved the issue at hand.

Commit: If a dealer wants to win, they have to act

It is one thing to complain about the problems the business is facing, committing to take action and meaningful steps in the right direction is something else. It takes work, effort, and learning to politely say “No” with respect to products and ideas that are not in keeping with the business’ strategy. Above all, it requires a pool and hot tub dealer’s personal leadership to execute. The rubber meets the road when a business owner commits to becoming David, no longer playing Goliath’s game. The rest is easy. Professional dealers built this industry and now it is time to fight back.

Dennis GrayDennis Gray leads Backyard Brands Inc., as founder and president. He has 43 years of experience in developing and marketing water care technologies for swimming pool and hot tubs. His company markets its brands of pool and spa water care products exclusively throughout Canada, and more recently also through the U.S. to backyard leisure specialists. Gray is a frequent international conference presenter and family-business trainer who has delivered more than 500 major presentations for various industry and professional associations worldwide. He is an honours business graduate from Ryerson University, with continued business studies at the University of Toronto, and is a graduate of the Ivey School of Business Executive program. Gray is an internationally certified consultant in theory of constraints, a certified behavioral analyst, and a past member of the Canadian Association of Professional Speakers (CAPS). He can be reached via e-mail at dennis.gray@backyardbrands.com.

Leave a Comment

Comments