The solution
There are three primary ways specialty pool retailers can profit from saltwater pools, differentiate themselves in the marketplace and provide pool owners good reasons to shop at their stores. They are:
- Offer premium products and services for saltwater pools that restore profitability, differentiate their store and provide a better pool experience for customers.
- Become the knowledgeable expert in saltwater pools.
- Gear marketing toward customer relationships.
Offering premium products and services
Offering premium products and services for saltwater pools provides better profitability compared with commodity salts. For example, since basic pool salt is now so inexpensive and widely available, retailers can offer higher-quality pool salt products that are only available through professional pool dealers. These products are designed specifically for the unique needs of saltwater pools, with some even containing anti-stain and anti-scale ingredients.
For example, if a specialty pool retailer replaces commodity pool salt with a premium product priced at $39.99 per bag, a 45 per cent profit margin generates $90 per pool (assuming the same five bags of salt are sold per pool during the season).
Mark Donaldson, owner of Solar Swim in Orangeville, Ont., stopped carrying commodity pool salt and now offers only premium pool-salt products, as he finds they provide better results for saltwater pools in his area in addition to providing better profits.
“My customers expect new, innovative products from me that deliver results, and that is what I offer,” he said. “Customers who can afford a nice inground pool can also afford premium products. They will pay more for the best products that deliver value.”
This is just one example. Other premium merchandise, which is specifically designed for saltwater pools, includes:
- Specially formulated treatment products, which prevent stain and scale;
- Powder-coated ladders, handrails and light rings, which resist corrosion;
- Deck sealants and treatments;
- Cleaners for removing scale from electrolytic chlorine generator (ECG) cells; and
- Automated controllers that monitor pH and other water balance factors.
Premium services such as simple water testing to client home visits for pool startups and routine maintenance can also be offered. These types of products and services deliver significant benefits to saltwater pool owners and are worth a premium price, generating higher profits. They also help differentiate the store from mass retailers, who typically only carry a few products in any given category.
Value in expert advice
Pool owners shop at specialty pool retail stores for a number of reasons—from product assortment and quality to service and convenience. The primary reason, however, is for expert knowledge in solving problems and maximizing enjoyment. Therefore, if pool retailers fail to provide the level of advice expected, customers will find it elsewhere.
There are a number of ways retailers can increase their knowledge of saltwater pool care and maintenance. For instance, trade publications, trade shows and educational seminars, buying group meetings and networking events, and operating manuals offer excellent information. Many saltwater pool vendors and manufacturers also offer free training in support of their products, which is also helpful in solving problems and recommending the right products for customers.
Proper training—for both dealers and seasonal employees—is critical to defending a pool retailer’s competitive advantage, as well as generating and maintaining customer loyalty.
