Pool Doctor

Executive Summary

        The Pool Doctor, based in Winnipeg, was started by Jeff Golfman and Alan Secter, which started out by selling ionization water purification systems, but the idea was dropped after it failed to meet the partners’ expectations.  The business switched to maintaining pools, and providing a clean swimming pool.  

        After the 1989 season, the 1990 season was approaching fast and Mr. Golfman was meeting with the bank manager he dealt with for his business, in order to discuss the business and possible funding and requirements for the business to meet.  Revenues had substantially increases year-over-year with a 319% increase.  The revenue increase was contributed to higher chemical sales, and the pool servicing.  One number that should not be ignored is the total expenses that have increased 539% year-over-year due to higher wages, bonuses, and unnecessary costs.  

        The marketing plan proved to be a success with the attendance of the Customer Appreciation Show put on by Aristocrat Pools.  This is the same company that supplies the chemicals to the Pool Doctor, and as it will be read, the Pool Doctor should stick with Aristocrat because they offer valuable knowledge on products, and service, even though they have a poor reputation in the industry.

        As well, the competition in the pool industry shows that there is one significant competitor to the Pool Doctor, and this is The Pool Pros.  The person who started the business is a former employee of the Pool Doctor, but has not been able to take away the business from Pool Doctor.  It is assumed that the clients gained are the same ones that this employee cleaned.  The independents and the pool stores are very different from each other because the pool stores are focused on the sales, and installation of pools where as independents are more focused on the maintenance, summarization, winterization, and pool repairs.  

        In the PEST analysis, a point that is kept in mind is that the more profit that is generated the more money that will have to be paid in taxes.  Furthermore, the implication of the chlorine-free pool device would hurt the business and should not be implemented because there will be money lost if the Pool Doctor implemented it.  

        To conclude, the price of the service should remain the same and that the marketing should be directed towards the existing pool owner because they are the ones with the money to afford the maintenance whereas the new pool owner does not have the cash to spend on such an expense after spending money to install the pool.  

Problems

The Pool Doctor, established in 1988, Jeff Golfman and Alan Secter started a pool servicing business, which grew to an 18.4% market share.  At the end of 1989, Mr. Golfman was faced with meeting with his bank the first week of January to discuss the strategic plan for 1990, which included how he should market his business, and whether to stay with the current chemical supplier, as well, how to meet his profit objective for the summer of 1990.  

Objectives

For Mr. Golfman, on the corporate level:

• Expected the Pool Doctor to generate sales of $100,000 and an overall profit of $22,000, which would be achieved by establishing a customer base of 80 customers and ensuring little or no turnover
• Reducing:

• Bad debt and repair expenses
• Eliminating inventory write-offs
• Changing strategy from growth to maintaining and extending the value of each customer by providing a wider range of services
• Could reduce overhead expenses by about $11,000

Personal level:

• Gain valuable business experience
• Work during summers and travel during winters
• Avoid monotony and stagnation
• Set own work hours (work at own pace)
• Live balanced lifestyle.

In addition:

• Prepared to sell business if the price was right.

Analysis

Implications

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