PoolCorp Acquires General Pool Supply, But Where Do Dealers Stand?I recommend you all read the linked article, and then come back here to leave your thoughts and comments.I am very interested to hear peoples reactions:Does this affect you?Are General's customers at risk?Are Pool Corp's customers happy?Will a Distribution 'monopoly' force Dealers to pay higher prices, or simply re-invigorate the market by weeding out Distributor locations that are not flourishing?If prices do go up, what will you do about it?I can't wait to hear your thoughts, but please remember to keep everything civil and thought-provoking...I am not looking for rants! (There's already a group for that *wink wink*)

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  • A lot of what you experience with a branch is dependent upon the manager of that particular branch. I am lucky to have one with SCP who is terrific, runs a tight ship and is willing to bring in the product we ask for. They are also located right across from our warehouse facility, which is handy, and close to my two stores. I know that sometimes this is not the case, though, and that is a tough situation. All of you who rep a product know the most difficult thing we do is getting a manager to stock our products, tell people they have them and SELL rather than order take. The branches who do this are invariably the most successful and have the most satisfied customers.

    One thing I can suggest is that if you want the branch to carry certain things, become a "nice nag". Bug the manager to bring them in, and repeat until he does. In a nice way. Having raised a husband and three teenagers, I am an expert at this. It is one of my few talents. I'm a nicer nag to a manager than I was to them, though! Them I just NAGGED!
  • You bring up several good points. However poolcorps growth has also been into non-pool applications such as the landscaping industry. It is necessary for the business to stay viable but as they diversify where there business comes from they can also take hits in there other areas.

    PoolDraw said:
    Another good discussion Monique and a great response Merry -
    I enjoy reading what ever you both post on the PGN.

    We don't have anything to do with Pool Corp today but in the past (when we were pool builders) it always seemed to me that the relationship with the local branch was almost as significant as pricing and I don't think that support is necessarily going to change. Here in the Tampa Bay area we do have distributor choices so branch representatives are an important element in the market.

    In my opinion, it is a good thing that Pool Corp is still wanting to expand their business and exhibit confidence in the industry.Their success depends on the pool industry remaining viable so I don't think that, in the present economy, it will be in Pool Corp's best interests to raise their prices just because there is a reduction in distributor competition - the pool builder has to be able to sell the job and the customer doesn't care what contributes to the price so if Pool Corp prices equipment too high then the job can't be sold. On the PGN main page in the APSP SmartBriefs, there was recently a link to information about 3rd Q earnings loss for PoolCorp - they need to sell product just like the rest of us! so pricing pool industry folks out of business would seem unlikely.
  • In Charlotte pool corp is already a monopoly in the market, with only one competitor in the immediate area and the next ones about an hour and a half away. Pool corp will continue to have relatively low prices simply because of there buying power. However, where the dealer is going to suffer is in the quality of service. Others experiences may vary, but it as been a long time since I was able to go into an SCP or superior pools that had the parts i needed in stock, or an employee that had the pool knowledge that was necessary. The other dealer in town does have higher prices (on some items) but runs a higher caliber of business.

    It is in our best interest to have a market rich with both large corporations to do business with as well as small interdependent's. The same way our customers benefit from being able to shop between the expertise of the mom and pops, big box stores, and national chains. Competition will ultimately keep the business at the top of its game.
  • Another good discussion Monique and a great response Merry -
    I enjoy reading what ever you both post on the PGN.

    We don't have anything to do with Pool Corp today but in the past (when we were pool builders) it always seemed to me that the relationship with the local branch was almost as significant as pricing and I don't think that support is necessarily going to change. Here in the Tampa Bay area we do have distributor choices so branch representatives are an important element in the market.

    In my opinion, it is a good thing that Pool Corp is still wanting to expand their business and exhibit confidence in the industry.Their success depends on the pool industry remaining viable so I don't think that, in the present economy, it will be in Pool Corp's best interests to raise their prices just because there is a reduction in distributor competition - the pool builder has to be able to sell the job and the customer doesn't care what contributes to the price so if Pool Corp prices equipment too high then the job can't be sold. On the PGN main page in the APSP SmartBriefs, there was recently a link to information about 3rd Q earnings loss for PoolCorp - they need to sell product just like the rest of us! so pricing pool industry folks out of business would seem unlikely.
  • Thanks for the comments Merry and Tony!

    As a manufacturer, we of course deal with Pool Corp on a regular basis, so I am glad to hear that they are getting positive feedback.

    Tony, when you said "less competition", this still leaves the question open to whether or not this is good or bad. Personally, I think in the current economy is a very gratifying to hear that Pool Corp is still able to expand so considerably. I think that is nothing if not a good omen. If they expand, then they are also expecting their customers to expand, and that bodes well for all PGN members!

    I think, as with most situations, not everyone will be either happy or upset. It is usually a mixed bag. I would love to hear more feedback, but only time will tell...

    Monique
  • Less competition for sure.
  • I deal with PoolCorp extensively both as a customer and a vendor, and I have been very pleased with my relationship with them in both areas. Yes, they are big, and have their own way of doing things, and there are things I would like to see them do differently in some areas, but I have received terrific service from them as a customer, fair treatment on pricing, and surprisingly good treatment as a vendor given I am so small for them as one.

    To answer your direct questions, Monique, it affects me as a vendor giving me access to more of the market through their system which is a good thing for me. I wouldn't think General's customers would be "at risk" although I can see where a monopoly in a market can lead to higher prices, but I have not found them to be bad for us on pricing given we buy a fair amount and have a good relationship with our PoolCorp manager. We do check pricing and overall we are coming out fine with them.

    As a dealer evaluating pricing, you have to look at it overall, not get hung up on one or two products that might be "cheaper" elsewhere but where you might also pay the same or more for things you use the most of, and sit down with your overall pricing numbers and volume of each product and really see where you come out with them versus someone else OVERALL. We find the pricing fair and the service we receive locally superior to what else we can get. We do have a really terrific PoolCorp local manager of our branch we deal with. The manager and personnel of any distributor branch is a big key to how good a job they do for you.

    Prices always go up. That happens inevitably. What you do about it is to loss lead what you can against any local discounters, and give superior service and keep your margins high enough to make a profit overall. You can also market more effectively and we have the perfect people to teach you how here at Pool Genius Network and through the Pool Genius Academy program.

    These guys know their stuff and I have been impressed and learned a lot from the online seminars, and I have been around pushing 40 years now, so I've seen a lot of techniques and seminars over that time. In this business change is inevitable, too, and you have to constantly be open to new ways of doing things to survive.

    Price is a factor in our market but not the most important factor. Think about how you make your own buying decisions. Do you ONLY choose what you want to buy by price? Or do you prefer to buy quality, service, a helpful and pleasant shopping environment, etc.? We have a slogan in our company which is an acronym of our name: Wisdom, Integrity, Service, Experience, and we try to sell not just pools and suppiles but WISE. At a competitive price. And a profitable price for us. Tricky, yes, but the pool business is not for sissies.
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