Dan Lenz could see early on that the Covid bubble was beginning to slowly deflate. So he made some changes that have helped keep the company on track with the last few years.

“I’m very optimistic for this year, as compared to where I was six or seven months ago,” says the co-owner of All Seasons Pools, Spas and Outdoor Living in Orland Park, Ill.

One such change – taking more renovation work — has kept construction even for the firm, which traditionally builds about 30 to 40 pools annually.

But All Seasons also started a new policy that has helped boost equipment sales, compete against online sellers and extend its relationships with customers.

“2020 through 2022… Those numbers were not normal,” Lenz says. “So if we could keep that 2019/2020 level, I was telling myself I’d be happy with that. Well, we’re well past that.”

Analytical approach

When 2022 came around, Lenz noticed a difference in market dynamics when it comes to equipment.

During the worst of the supply-chain struggles, pool/spa equipment had little to no online presence, because it was so hard to come by. But once manufacturers ramped production back up, the competitive pressure from online retailers returned. Even with the superior warranties that many manufacturers offer for equipment that is purchased and installed by a pool/spa professional, consumers were willing to take the risk, Lenz found.

In addition to competing with this force, Lenz wanted to lengthen the customer relationship past the typical manufacturer warranty: Once the warranty expires, some clients are apt to give their repair business to the lowest bidder. He wanted to provide more incentive to stay with his firm.

Extending the equipment warranties might accomplish all these goals, Lenz thought. So he did some data crunching to see if it could work.

He looked at equipment sales between 2017 and 2022, and analyzed the number of repairs the company did for each product. He was looking for service performed both during the warranty period and two years after. He took the costs of pump repairs performed during that period, and divided it by the number of units that had been sold. He did the same thing with filters and heaters.

The outcome gave him the confidence to move forward. Now, equipment purchased from and installed by the company is covered for an extra two years, fulfilled by All Seasons at no extra cost to the customer. Examining the data, Lenz found it extremely affordable. “I was absolutely amazed that it was less than 1% of the cost of the unit prior to adding the warranty,” he says.

During the extended warranty period, clients do pay for the diagnostic evaluation, but then the repair is free. “So we’re getting a little bit of offset in terms of revenue,” he says.

Lenz likes how this move positions the company. “If we keep our foot in the back door… the homeowner is going to call us first,” he says. “We’re the first in the backyard to find that pump that needs to be replaced, or the filter that has a problem that needs [repair].”

The results were already apparent in the second quarter of 2023. “Our equipment sales are up 40% over last year,” he says. “Our overall revenue is basically equal to last year, and our profit is ahead of last year.”