By Bob Harper
Specialty pool retailers are facing stiffer competition from mass retailers, such as Wal-Mart, Home Depot and Canadian Tire. It is not surprising, as pool owners are desirable customers for any retailer. They typically have more disposable income, they need a regular supply of pool treatment products and they likely own a home and a yard that require other products to furnish and maintain. So, national mass retailers have implemented a new strategy—offer basic pool treatment products at low prices, luring these customers into their stores in the hopes that other, higher-margin products will catch their eye.
Competing with mass retailers on price alone is a losing proposition for specialty pool retailers. A better solution is to differentiate themselves from mass retailers by emphasizing the distinct value they provide to pool owners. Specialty and mass retailers offer different value propositions.
Mass retailers
- Typically focus on a broad array of product categories (lawn and garden products, paint, household goods, etc.);
- Offer a narrow, fairly standard selection of products per product category across all stores;
- Have less knowledgeable sales staff and less personalized service. Most of the time, mass retail staff members are paid to stock shelves and help shoppers find what they are looking for, rather than recommend ways to solve pool problems;
- ‘Follow’ specialty retail stores in what they carry, avoiding new products, which require specialized training to sell;
- Do not offer extra services (e.g. water testing or pool maintenance plans);
- Offer lower pricing and frequent sales; and
- Have numerous locations and extended store hours for consumer convenience.
Specialty retailers
- Typically focus on fewer product categories (e.g. swimming pools, hot tubs and other products relating to outdoor living);
- Offer a wide selection of products for this category, ranging from basic commodities to unique products. Pool owners will be able to meet all their needs in one stop;
- Have a knowledgeable sales staff that can diagnose problems and recommend effective treatments and problem prevention;
- Know their customers and their pools;
- Introduce new, cutting-edge products and technologies that offer greater benefits to consumers (e.g. time savings or better pool protection);
- Offer services, such as water testing, pool service, new pool construction and renovation. (If a specialty retailer does not build pools, he/she can typically refer consumer inquiries to quality builders in the area);
- Have slightly higher prices and less feature pricing; and
- Have fewer locations and shorter store hours.
As the name implies, mass retailers aim to please the ‘masses’ in terms of convenience, low prices and range of product categories (one-stop shopping). They certainly have their place, but when it comes to swimming pools, they cannot match the product quality and expertise of a specialty pool retailer.
Specialty retailers fill a significant need for consumers. For swimming pool retailers, this means having the right tools and expertise to diagnose and solve problems, recommending the right products and programs, as well as staying abreast of new products, offering specialty products that mass retailers do not carry and remembering specifics about each customer’s pool.
