Tommy Diaz, 365 Pool Service and Repairs
There is a race happening in the commercial pool industry. It is a race toward the lowest number. A little less labor. A little less supervisor time. Maybe we assume the property will not need as much attention as it probably does. Maybe we convince ourselves that we will make it up in repairs. Maybe we just want the account. The problem is that when enough contractors think that way, the market drifts downward. Low pricing feels strategic in the moment. You win the contract. The revenue line grows. The portfolio looks stronger. But what really grows is obligation. Commercial accounts carry real expectations, real visibility, and real liability. They require staffing, documentation, preventative maintenance, and leadership presence. When pricing does not support those things, something has to give. It is usually the margin first. Then morale. Then, service consistency.
The race to the bottom is fueled by contractors who undercut themselves before the conversation even begins. We assume the board will push back. We assume the property manager only cares about price. We negotiate against a resistance that has not even been expressed. That mindset trains the market. If enough of us lead with fear, the market will expect cheap. Here is the uncomfortable truth: if a contract cannot support proper staffing and oversight at a healthy margin, it is not a good contract. It does not matter how attractive the property is or how impressive the revenue number looks. Revenue without margin is just expensive work. Being busy is not the same as being profitable.
Underpriced contracts create predictable consequences. Visits get rushed. Preventative maintenance becomes reactive. Equipment advisories are delayed because there is no margin to support long-term planning. Technicians feel pressure to move faster than they should. Supervisors spend more time putting out fires than building relationships. Boards sense inconsistency. Eventually, the very account you fought to win becomes the account that drains your resources.Some contractors defend low pricing by saying the market demands it. Markets do not demand weakness. They respond to positioning. When contractors consistently drop their price to secure work, they normalize it. But markets also self-regulate. Contracts priced too low eventually expose their flaws. Service suffers. Corners get cut. Margins disappear. Either prices go up, the contractor exits, or the client looks for stability. The market corrects over time. The question is whether your company has the discipline to survive that correction.
Knowing when to walk away is one of the hardest skills in business. It requires clarity in your numbers and confidence in your value. If you know your true cost per visit, your fully loaded labor rate, and the level of oversight required to protect a commercial relationship, your price should reflect that reality. If a prospect insists on a number that compromises your standards, walking away is not arrogance. It is leadership.
There will always be someone willing to go lower. Competing at that level is a choice. The real question is what kind of company you are building. A business built on thin margins and constant pressure is fragile. A business built on disciplined pricing and clear standards is resilient.
As Alex Hormozi says, “If people are buying on price, it’s because you gave them nothing else to buy on.” If commercial clients are choosing strictly on price, it is worth asking whether you have clearly communicated the value you bring to the table. The race to the bottom is not inevitable. It is a decision.
