Latest / Scaling Up with Fexingo: How Small Businesses Become Mid-Market Companies / How a Pool Builder Scaled Past 25 Million by Fixing Its Sales Process
Transcript
- Lucas: So there's this pool builder in Arizona, and they cracked something that a lot of service businesses struggle with for years. They went from about 8 million to over 25 million in revenue in roughly three years, and the key wasn't more leads or more crews. It was fixing how they sold. Luna: Interesting. Because most people think if you want to grow a service business, you just pour money into marketing and hire more installers. But you're saying the bottleneck was the sales process itself. Lucas: Exactly. And this builder, let's call them Desert Pools — they're a real company but I'll keep the name vague — they had a classic problem. One guy, the owner, was doing all the sales. He'd go out, give quotes, and close deals. But as demand grew, he couldn't scale himself. So they hired a couple of salespeople, but the numbers didn't improve. In fact, their close rate actually dropped. Luna: That's a common story. You hire salespeople, but they don't have the owner's skin in the game, so they don't sell the same way. What did they do differently? Lucas: They completely redesigned the sales process from scratch. The first change was moving from a single salesperson model to a team approach. Instead of one person handling everything, they split it into three roles: the initial consultation, the design phase, and the closing. Luna: So like a relay race instead of one person carrying the baton the whole way. That makes sense, but it also sounds risky. What if the handoff loses the customer's trust? Lucas: That's the thing. They trained their team to be transparent about the handoff. The first person they meet is the consultant, and that person's job is not to sell. It's to educate the customer about pools, the options, the timeline, and the costs. They're told to be a trusted advisor, not a closer. Luna: So the salesperson isn't trying to close on the first visit. That's a big shift. Most home improvement sales are pushy, right? They want to lock you in before you shop around. Lucas: Right. And that's exactly what Desert Pools used to do. The owner would go to a home, give a quote, and try to close that night. But they realized that was turning off customers. So they redesigned the consultation to be a 90-minute educational session. No pressure, no 'act now' discounts. Just a thorough walkthrough of what goes into a pool. Luna: And that worked? People actually bought from a company that wasn't pushing them? Lucas: It did, and the numbers are pretty striking. Their close rate went from about 25 percent to over 35 percent. And the sales cycle shortened from an average of 45 days to about 30. They were closing more deals, faster, without being aggressive. Luna: That's a huge improvement. But I imagine that also means the sales team had to change. How did they hire for that? It's a different skill set than a traditional closer. Lucas: They stopped hiring 'salespeople' and started hiring former teachers, project managers, even a nurse. People who are naturally good at explaining things and building trust. They call them 'pool advisors' now, not sales reps. Luna: That's a nice culture shift. But what about pricing? Because a pool is a big-ticket item, and customers are going to compare quotes. How did they handle that? Lucas: That's the second big change. They moved to a transparent pricing model. No more 'call for a quote.' They publish their starting prices for each pool package on their website. And when they give a custom quote, it's itemized, with every line item explained. Luna: So they're basically taking the mystery out of pricing. That's bold. In a lot of industries, there's this fear that if you show your prices, customers will just pick the cheapest option. But it seems to have worked for them. Lucas: It did. Their average ticket actually went up, because when customers understand what goes into a pool, they're more willing to pay for quality. They also stopped discounting entirely. No more haggling. The price is the price, but they justify it with the education piece. Luna: So they're competing on value, not price. And it's working. But I'm curious about the risk. Scaling sales like that, and growing revenue so fast — did they face any growing pains? Lucas: Oh, absolutely. One of the biggest issues was that their operations couldn't keep up with sales. They were selling more pools, but the crews were still set up for the old pace. They had to revamp their scheduling and project management to handle the increased volume. There were some painful months of delays and unhappy customers. Luna: That's the classic trap. Sales outpaces operations, and then you're dealing with refunds and bad reviews. How did they get through it? Lucas: They slowed down sales temporarily. They even paused new consultations for a month to catch up on the backlog. And they invested in a project management software that gave customers real-time updates. It was a tough few months, but they came out stronger. Luna: That's a good lesson. Sometimes you have to step back to move forward. But what about the sales team themselves? Did they have to change how they compensated people? Because if you're moving from closing to advising, the incentive structure has to change too. Lucas: That's a really good point. They moved away from pure commission. The pool advisors get a base salary plus a smaller bonus that's tied to customer satisfaction and, importantly, to the accuracy of their quotes. If a quote is too low and the project loses money, they don't get a bonus. That aligns incentives with profitability, not just closing. Luna: So they're rewarding good advice, not just sales. That's pretty progressive. I'm surprised more service businesses don't do that. But I guess it's easier to just stick with commission and hope for the best. Lucas: Yeah, and it takes a certain type of owner to make that shift. But the results speak for themselves. Their customer referral rate went up too, because people were so happy with the experience. They went from about 15 percent of new business coming from referrals to over 30 percent. Luna: That's a flywheel. Better sales process leads to happier customers, which leads to more referrals, which means you need fewer paid leads. And that's a great place to be. Lucas: Exactly. And that's the thing about scaling — when you get the core process right, everything else gets easier. But it also requires a lot of discipline to keep it up as you grow. I think that's something a lot of owners underestimate. Luna: Yeah, you don't just fix it once and it's done. You have to keep improving. We talk a lot about that on this show, and it's something I've noticed in a lot of successful companies we've covered. Lucas: Which reminds me — and I know we don't do this often — but we're able to keep making these episodes ad-free because of listeners like you. If you've gotten value from any of these conversations, and you want to support that choice, the link is buy me a coffee dot com slash fexingo. No pressure, but it helps us keep doing what we do. Luna: Yeah, and it's a simple way to say thanks if you've learned something. Every bit helps us stay independent. Lucas: So back to Desert Pools — the other thing they did that I think is worth diving into is how they used technology to scale the sales process without losing the personal touch. They implemented a CRM that tracks every interaction, and they have a system for follow-up that ensures no lead falls through the cracks. Luna: That's crucial. A lot of small businesses have the 'we'll get back to you' problem. But how did they make sure the technology didn't make things feel robotic? Lucas: They set up automated reminders for follow-ups, but the actual outreach is always a personal phone call or email from the advisor. The CRM just makes sure it happens on time. And they also use it to send educational content to leads before they even have a consultation, so when they meet, the customer is already informed. Luna: So they're warming up the lead with value, not spam. That's the kind of thing that sets a company apart. But what about the actual design phase? Did they change that too? Lucas: Yeah, the design phase used to take weeks, with multiple revisions. Now they have a dedicated designer who does an initial 3D rendering within 48 hours of the consultation. They use software that lets the customer see their actual yard with the pool in it. That's a huge wow factor, and it cuts the design time in half. Luna: That's smart. Visuals sell. I'm guessing that also helps with the closing side, because the customer can see exactly what they're getting. Lucas: Exactly. So the whole process is more efficient and more compelling. They went from 25 to 30 percent close rate, but they also doubled the number of customers they can see in a week, because the handoffs are so smooth. Luna: So really, they're not just selling pools, they're selling an experience. And that's something any service business can learn from. But is there a risk that this model might not work in other industries? Lucas: I think the principles are transferable, but you have to adapt them. The key is to focus on education and transparency, and to align your team's incentives with customer satisfaction. That works in almost any industry where the purchase is significant and the customer is making a considered decision. Luna: So whether it's a pool, a kitchen remodel, or even a marketing contract, the idea is the same. Don't hard-sell, educate. Don't hide pricing, be transparent. And don't reward your team just for closing, reward them for doing right by the customer. Lucas: Right. And the proof is in the numbers. Desert Pools grew from 8 to 25 million in three years, and they did it by fixing the sales process, not by adding more pressure. That's a pretty good case study for anyone thinking about scaling. Luna: Absolutely. And I love that they hit the pause button when they needed to. That takes guts. Most owners would just keep selling and hope operations catches up. Lucas: And that's a mistake that's killed a lot of businesses. So if there's one takeaway, it's that scaling is a system, not a sprint. You have to be willing to slow down to go fast later. Luna: Well said. And I think that's a good place to leave it. Thanks for joining us on Scaling Up, and we'll see you next time. Lucas: Yeah, until next time, keep building.