Editor’s Note – The following is a guest post by Ralph Ingrassia, President of Endeavour Technologies, LLC, and a project management consulting guru. A longtime reader of The Hot Iron – not to mention client of Dunkirk Systems, LLC and close friend of Mike Maddaloni – he shares some of his wisdom and experience here, which we hope will be the first of many guest posts.
Who isn’t trying to cut costs these days, whether those be business or personal costs? One cost I was considering cutting was my weekly pool service. But, having tried that in the past and failed miserably, I had decided that maybe this wasn’t a cost worth cutting yet.
Over the years I’ve used the larger pool servicing companies, but have always been left disappointed by the higher prices, nickel and diming and lack of professionalism. So, being a small business owner myself, I settled on an independent Pool Guy and have been happy for the last few years. I could pick up the phone and he’d be here if I was having a party or if I had any problems whatsoever and it was always clear that his priority was that I was happy with his work.
Things started to change this year. The first point of concern was that his price went up this year again for the third year in a row. Now last year I understood a price increase due to the rising cost of gas but this year’s price increase left me confused. If anything I would have anticipated a steady price this year. Still, his prices were much more competitive than the larger companies mentioned above so I didn’t say anything. Then the nickel and diming started. Not much, but a few bucks here and there. Again, I was still saving money so I decided to just keep an eye on these charges over time.
Last week, however, was the deal-breaker. After completing my service he knocked on my door for payment and I happened to be on a conference call that I had muted. I decided that it would be easier to pay cash which left me $8 over the service price. I informed him that if he didn’t have any change we could just apply it to next week. The response was, “Ralph, you’re cheap just like my Dad.” “He won’t give a tip to save his life.” Now, anyone who knows me knows that I value good service and in situations where a tip is warranted, it is awarded. I worked in the restaurant industry and completely understand how the American restaurant system makes it so gratuities make up the lion’s share of a server’s income. Jokingly, I also thought that the fact that I actually had a Pool Guy would classify me as being not cheap.
But from the customer perspective, a line had been crossed here. As small business owners, we try to price ourselves competitively, prevent scope creep to manage the need for cost increases or business losses, and provide the utmost in professional service. In most cases, I find that it is the professional and personalized service that is most valued by my customers relative to my fees. The example I’ve detailed with my Pool Guy can be applied to my own business as well.
So what has gone wrong here? Is it just a case of temporary insanity or has the service provider forgotten that I am a long term customer that he has a pleasant relationship with and not a friend? Or, is it that this particular small business owner has forgotten to holistically look at their services and fees and evaluate if his customers are really receiving a superior service for their dollar regardless of a competitor’s price? In this case maybe it’s all three.
In the end, the decision that I made was to cut back on my service to bi-weekly instead of weekly. Was this decision driven solely by the lack of professionalism? No. But, it was a factor in a decision I had been teetering back and forth on.
This is from The Hot Iron, a journal on business and technology by Mike Maddaloni.
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You were supposed to tip the guy? Had you ever tipped the guy before? Is that standard practice? Assuming “no” to all these, then you’re not cheap, the pool guy is weird. He should of answered “no problem, I’ll issue a credit memo” (or something like that).
I guess he thought he was being funny, but you gotta make sure you really know a client before you take that route. I think it’s always best to remain professional when talking money.
As a business owner I would never ask for a tip. It is his business and he should not be fishing for tips. If you charge correctly you shouldn’t need tips. I resisted a tip jar at my coffee shop but customers would just leave the change on the counter so I finally gave in.I still don’t feel right taking them.
Huh? I thought business owners didn’t take tips, they take the sale money, and their margin with it. I always thought one tipped employees, who have tips and salary as revenues.
Maybe it’s because I’m foreign, but I don’t get this pool guy’s attitude.
Comment by HuguesWow! I can’t believe your pool guy would even imply that. I own my own pool service and am grateful to the customer if they just pay me for the service on time forget about the tip. In 12 years I have hardley ever seen a tip even at Christmas time and I have had customers for over ten years. You won’t save money by using me over the bigger companies but you will get better overall service and the peace of mind knowing who is coming to your home everyweek. I have watched peoples children go from 1st grade to graduation to college and I still love what I do. If your pool guy priced right, gave great service then He wouldn’t need to feel like he is not making money. Too many times guys get in the business and to build up they cut prices instead of enhancing service, people will pay for good service and peace of mind, when you advertise cheap you are only lowering yourself and people wont value or respect you or your biz.
Comment by Darby@Darby - Thanks for visiting and sharing your thoughts, as it’s always great to have someone in the industry comment.
You didn’t include your Web site’s link in your post or the form, as readers may want to contact you!
mp/m
Web site under const. should be up by new year
Comment by Lawrence@Lawrence - Good to hear, please come back and post a link to it. And if you need help with your Web site, Dunkirk can help! ;)
mp/m
I also agree that a business owner shouldn’t take any tips. The price he/she charges should include his service. Tips are for employees of some industries like restaurants or hotels but not for small business owners in other industries. Furthermore, it’s always very frustrating when a supplier asks for a price increase with no real explanation for the reasons and no service enhancement. This guy should at least spend some time explaining his reasons for the increase and should at least have maintained the quality of his customer services instead of reducing it. I would look for another pool guy even if it ends up costing me more!
Operating a professional business can make or break a company. I have seen both sides of this throughout the years. Knowing every aspect of business, including how to act/present yourself, is something that can propel your company to new heights.
I just want to clarify that he is not talking about the business, My Pool Guy, but his actual pool guy. We are an Austin based pool company and we would never say that.
Thank you
@Sara - You are correct, as this pool person was in New Jersey.
mp/m
My husband and I own a pool service and repair businesses,we would never ask for a tip,although if given is very much appreciated,we go out of our way to make sure customers are happy and the pools are taken care of.we charge lower prices than most companies here,my husband services the pools himself,we also do repairs.I feel this guy was out if line by asking for
tip.
Comment by lisa riesI had a very disappointing experience with pool cleaning service and have quit since…I am currently using a pool cleaning machine….trust me, they are million times smarter and hassle-free and effective!
Best wishes!
Julia
I will say this Julia Evans. I resent your comment. Sorry you had a bad pool service company. You may like your pool cleaner at the moment but wait until it wears and you have to replace those parts or replace the unit. Second I have been in business for 15 years and have not found a single automatic pool cleaner that had a 142 IQ or could clean steps, swim out or the spa. To imply a machine is smarter is classifying all pool industry people as stupid. Sorry but you comments make you sound ignorant. I guess the cleaner also tests and balances the pool water. Please keep your distasteful comments to yourself. All professions have people who don’t do that industry any favors, but to classify everyone into a single group is wrong how would you like to have that done to you?
Comment by Lawrence DarbyYou ARE cheap Ralph. I don’t know anyone that does any kind of SERVICE for anyone that wouldn’t like a tip every once in awhile. Not tipping at Christmas is just wrong and so very cheap. I read here that you call him up if you’re having a problem or for a party and he comes over. That would NEVER happen here without a fee. Pool people have a schedule. Usually a day and time. He is not your PRIVATE pool person. As far as this nickel and dime phrase…is he supposed to give you a lung too? He has to pay for extras so why should you get them free? Pool maintenance is just that. It doesn’t include stabilizer or algaecide or storm clean up or any other extras. A Christmas tip is one month’s service. Still alive Ralph you cheap skate.
Comment by DeeRalph It has been awhile but I read your post again. You when you were looking for a service grab the cheapest person you could trying to save a dollar, when you did that you yourself sacraficed quality and courtesy. Am I going to recieve the same service at Burger Palace as I would a 5 star restaraunt. You are a cheap ass. You expected this guy to kiss your ass while you were looking for the lowest price with the most service then you cut the service back. For one it would be bi-monthly not bi weekly meaning twice a month not twice a week. I would have told your cheap ass to find another pool guy then black listed you with the good ones. Second you said you were a small business owner so you thought you would support another small business. I bet his was the only one you thought you were supporting evey indication in this article says your a Wal mart, Dollar General discount store shopper. Have no idea what you do but let us know so we can treat you the way you treat people you deal with. I said earlier I didn’t expect tips, didnt say I don’t get them, I do well for myself so when I recieve tips I buy Toys and donate them to the Toys 4 Tots program. My kids are grown and I am single so this is what I choose to do with tip money. Ralph you said yourself he would be at your service with a phone call, even with 3 yrs price increase he was still cheaper then the big guys and now he is nickel a diming you bcuz your equiptment is 3 yrs older and has that much more wear on it so I guess its his fault. He should have dumped you long ago he doesn’t owe your cheap ass pool service.
Comment by DarbyNice story Mike
My husband and I own a pool maintenance service, and we offer great prices on our service. We have a basic price for maintenance which includes basic chemicals. (Chlorine, acid, shock and soda ash) If our weekly maintenance prices included the other chemicals such as stabilizers, algae treatments or anything else we may need over and above the basics we would price ourselves out of business. The main way we make money is the repair work that comes with the maintenance accounts. My husband does not nickel and dime people as you say. If we have to replace parts if you buy parts from us we install for free. Our maintenance accounts pay for themselves most of the time, but repairs pay most of our bills. So yes tips at Christmas are greatly appreciated. Also for everyone reading this if you have a pool man do not pay late if you can help it. We buy our chemicals all at one time for the month and a late payment can result in a lack of chemicals for everyone on the route and it is a pain to have to chase our money down. You don’t like your paycheck being messed with and neither do we.
Comment by Melinda HallNote: Comment moderation is active, and your comment will be viewable once it is reviewed.
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