WEBVTT
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Happy Thursday to everybody.
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Welcome to Talking Pools.
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Uh Thursdays with Steve and Wayne.
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Hope everybody has had a a good week, a safe week, a profitable week.
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Hope the weather's been cooperating a little bit.
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I know my side of the planet, uh things have been looking good even better.
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I mean it's October, which means we get a fall summer.
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It's supposed to be like 85, 88 degrees tomorrow, something stupidly ridiculous.
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But um and I know out your way you're still trying to recover a little bit from all the all the Yeah, we have another we have another heat wave coming.
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Um so they said for like the next week it's gonna be like in the 90s and the hundreds, and it's gonna be kind of humid.
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So just kind of dealing with that.
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But we've had it's been kinda hot the last month or so.
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My dad said though, he was in New Jersey and I spoke to him a little while ago today, and he said that they put on the air conditioners again for like the first time in a couple weeks.
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So it got got kind of cold, and he said it's getting, you know, darker earlier.
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So coming into the time where you know, you where you guys are at, the the pool season is coming to a to a quick close.
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What I always used to love about the commercial pools out that way was that like they didn't give a shit.
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They were just like, yo, like as soon as Memorial Day hits, like we're closing.
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Like, how about the Thursday of Memorial Day weekend, you know?
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And then the board's like, well, like we gotta stay open for the weekend.
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But they're like, Can you close on Memorial Day?
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Like, can you close us on Memorial Day?
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Because just they don't they don't want to deal with the pool because number one, it's such a big expense, you know.
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That's that's the first thing.
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Uh, if you're if you're heating the water and things like that, as soon as you turn off the heater, you're gonna be saving thousands and thousands of dollars in gas and energy costs.
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It's not even close if you're keeping it.
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And a lot of these places that I work at, they want to keep it at uh you know 84 degrees, 87 degrees, 89 degrees.
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Yeah.
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And you know, I know that we have some topics that we're gonna we're gonna talk about um in a second, but I I do just want to say this that I went out for this guy called us and he was like, hey, like we have like this camp.
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And I went out and saw the camp, and he was like, We're interested in having you come on and like train us and you know get our certifications and help us get our LA County certification with the hope that you work with us for like six months, and then we kind of take over.
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And I got there and I was like, okay, cool.
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I'm like, so how often does your pool guy come?
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And they were like, once a week.
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And I was like, okay, so I was like, what are you guys doing in the in the interim, you know?
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And they were like, no, no one really touches the pool, like on the six other days.
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And it's a weird, it's a weird situation because it is a northeast pool in Southern California because their camp runs from April to October, and then no one is in the pool unless they rent it from October to April.
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So right now we have a pool that is not being used at all.
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So I get that and I understand that.
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But I like went into the pump room and I went and I tested the cyaneric acid.
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The cyaneric acid was at over 300.
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It was like as soon as you put two drops of the turbidometric thing in there, it just number 13.
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Yeah.
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It just right right away just went away, right?
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So I was like, this guy, he's literally just filled, they have the rain, the big long rainbow erosion feeder, right?
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For the tablet.
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And I know what he's doing.
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He's just he's coming once a week, he's you know, collecting his check, and he's throwing in up, you know, putting if you put in 10, 11, 12 tablets, like that'll that'll get you through the week with a chlorine residual, but it's not necessarily sanitizing and oxidizing the pool.
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And the guy was super open and honest with me.
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And I just told him, I was like, look, I was like, even if you hire me, us to be your pool company, I was like, I'm gonna expect a little bit more of you than us coming once a week and like uh you guys not doing anything for six days.
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Like, you need to at least balance the water out, you know, once a day and be testing a few times a day if you have an automation system in California.
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And I went uh, you know, I kind of went through everything with him, and I was like, you know, I really would not to know the scope of work for this job because you I'm gonna give you a quote and it's gonna be apples, and what you have now is is oranges, you know.
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So he was like, Oh, he's like, I'll share the quote with you.
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So he actually just shared it with me straight away, and I was like, wow, I was like, I don't know how this guy is making money because he includes all of the chemicals also in the summertime, and it's an 80,000 gallon pool, Wayne.
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Well, so uh I was just like okay.
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I was like, listen, I was like, let's just do some light math here.
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I was like, uh this pool, every time that I come, if it's at zero, I'm gonna put in eight gallons of liquid chlorine.
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Okay, because we're gonna shock it to ten and we're gonna put in eight gallons.
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So you do that once a week, and it's actually times 78 because they want you to come twice a week during the during the summertime when the camp is over.
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So we might be doing that twice twice a week, right?
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So during part of the year, so it's something like uh 416 gallons of liquid chlorine, if it were the 52 visits or whatever.
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And you know, you multiply that times 10 because that's the retail price of liquid chlorine here in Southern California, and now all of a sudden that's four forty five hundred dollars, you know, forty six hundred dollars that you uh have to put towards, and that's just chlorine.
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Forget about muriatic acid, forget about baking soda, forget about clarifier.
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This guy was including phosphate treatments, he was including algicide treatments.
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Well, it's just like what is going on, you know, and it I know what it is, it's like a bigger company that does commercial pools and they probably subcontract out the work.
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So they're not they're not paying the people that go there, or it's the guy who owns his own company and he's not because there's no way that I could pay someone to go there, right?
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And then I also go there once in a while to train them.
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So what I actually said to them, Wayne, and I don't normally say this, I said, right now nobody's using the pool, right?
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I was like, I don't want to waste your time, money, or energy.
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I was like, why don't we get you in the CPO course, you know, in the next month, and I prepare you for the training that I'm about to give you at your place.
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Because I was like, if you if you hire me as your service company right now and you want me to come train you, I was like, these are gonna turn into, and I didn't say this, but they're fucking babysitting sessions, where I'm gonna be now I'm I'm the storyteller, right?
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And I'm gonna be because all the CPO things are all like visual stories with the PowerPoint, and like so you can understand and you know, really retain the concepts.
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So I was just like, look, you need to, I think you and your other manager need to go through the CPO course first.
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And I was like, then you can hire us as your service company, and then we can come out once a week and we can go over all the things that you need to go over.
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And now you're gonna know how to test for alkalinity.
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You're gonna know, like, you will understand that your cyanuric acid is three times the amount that it's supposed to be from the environmental protection agency.
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And like we could argue about this all day that, like, oh, they were gonna bring it up, or like that's what it is.
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Like the EPA says once it goes over a hundred that you should drain your whole pool.
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So, like, those are the these those are the types of you know things that I'm gonna listen to, right?
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So it was a situation where I really want I want the contract, I do, but I didn't feel comfortable taking this on and no one's using the pool, and then just like now all of a sudden doubling their monthly cost for no reason, you know.
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Like I and also I want to come in and know this is also like liability-wise for for us, like we don't want to just have you using our license and no one else takes care of the pool, you know, and that's how it kind of goes in some of the other states.
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I have like clients and commercial clients and all, like they don't we go once a week, but I had to train all of like their teachers and coaches and all that stuff.
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I go there at the beginning of the year and I say, like, you are in charge here every day that the kids are in the pool with you.
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Like, uh, you gotta test the water beforehand and after, and you know, possibly put in chlorine and all that stuff.
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And that's why we did a big CPO course with them.
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But that's why it's so important to really have your CPO because there's a lot of guys and girls out there that are, you know, in maintenance or working at like camp pools or you know, kind of like gray area pools where they just don't have any of the certifications or the knowledge, and now they're hiring these pool companies that really aren't doing anybody, you know, they're doing a disservice is really what it what it comes down to.
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But you know, like I said, not to go off on a tangent from what we were you know gonna talk about, which is pretty important, it just kind of falls in with that, with like, you know, know who you're working with and and make sure that they know what they're doing, you know.
00:10:06.070 --> 00:10:29.509
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00:12:53.590 --> 00:13:04.870
Hey everyone, and welcome back to another episode of the Insurance Interlude with your host, Steve Sherwood, and as always, our co-host, Pat Grignon from California Pool Association.
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So, Pat, thanks so much for being on.
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Last week we had a really great segment where we talked about the flooding that we had here in Long Beach, and um there's another hurricane coming too.
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That should be by the time this episode comes out, we should be like right in the thick of it.
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So hopefully everything goes well with that.
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But I I want to really get all of my ducks in a row and all of my shit situated before this comes.
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So I was really, really, really apprehensive when we were away and this first storm came with Hurricane Marie, and that there was like just a foot and a half of just moving water coming through the alley where our car is.
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And to be completely honest, like we've been holding on to this car for a while.
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You know, like this car is almost ready to go.
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Um, but we do have full coverage on it because we use it for the, you know, because we use it for for business.
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But like I was for sure because I lost my car in certain my my car in Hurricane Sandy, I was 100% sure that we were gonna come back, and this car was just gonna be a couple thousand pound paperweight in front of my garage, right?
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Down the street.
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So lucky, um, and just blessed that like nothing happens to us and none of our none of our stuff was damaged or lost.
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But what comes with my commercial auto policy?
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Does it include flooding and and damage from stuff like that?
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And I know that like you shed some light on some other stuff in the last interlude where like you talked about like wind and and hail and and stuff like that.
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And like, are there certain things that are that are covered under the policy, and then there's certain things that aren't covered under the policy?
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And like, what do I need to be aware of before this next hurricane hits?
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So, you know, we're fully covered.
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Yep, yeah, perfect.
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Well, first of all, thanks for having me again, Steve.
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Appreciate that.
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Yeah, so auto is is very different than like property coverage, like your homeowners, your building, you know, your stuff, things like that.
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So auto and and commercial auto, it really follows the exact same forms as your personal auto policy.
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It's just that your personal auto policy, all of them have a business use exclusion.
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And of course they're priced differently and have different coverage limits.
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But they're essentially essentially the same, you know, forms that they use for both.
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So just speaking broadly to auto in general, personal and commercial, if it's a flood, then you should have coverage for it.
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I mean, honestly, like if you accidentally drive it off the pier into the ocean, you would have coverage for it as long as you carried physical damage, your full coverage is what folks commonly call it.
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But you know, there's two parts to an auto policy: there's liability, and then which is of the third-party coverage, and then there's the physical damage, your comprehensive, which is theft, uh, acts of God, and then collision, which, you know, you smash into something, someone smashes into you, and then your vehicle damage is covered.
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So it's really broad, and frankly, that's why it's really expensive compared to a lot of other policies, is just because like they have to prove that you purposely like set fire to your car or you purposely drove it off of that pier into the ocean to get your insurance money out of it, which is hard to do unless you're blatant about it.
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So it's very broad.
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If your car were to have had damage in the flood, you do carry physical damage, it would fall under your comprehensive deductible.
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Yeah.
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And you'd pay your deductible, and and the you would get the value of the vehicle for basically what Blue Book is, and um, you're off and running.
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So you'd have coverage for that on your car.
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That this just made me think of another situation because you know, all of these new vacuums that we have that are, you know, the riptide and the bottom feeder and the hammerhead, they all come with these fucking, you know, motorcycle slash car batteries, basically, right?
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And like, sure, they come in like a housing that like uh isn't supposed to get wet inside and stuff, but like uh shit happens, right?
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So what happens if you you know, a lot of people have their riptide hanging on the back, right?
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So that wouldn't be too damaging, but some people have the like travel ones, right?
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Where it's just got like a smaller battery and like you can kind of throw it in the back of the truck, and just just like lithium batteries in general, because now like 20 years ago, like there there was no there was no lithium batteries to to be had, you know, so like uh everything was lead acid and a little bit different, right?
00:17:38.470 --> 00:17:44.629
So, how has that kind of changed the landscape for you guys and how you look at just batteries in general?
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And like, what if I have my uh my e-bike in the back of my truck and now the whole truck goes on fire because the battery blows up.
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And you know, sometimes these batteries cause fires, but sometimes they like my one buddy, he had like an e-foil one and it like uh blew up when they weren't in the room, but the whole it didn't cause a fire, but it was like a bomb went off.
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Yeah.
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And like all of the walls were black and stuff, so like it's like I don't think that you would have survived if you were in the room.
00:18:16.069 --> 00:18:16.309
Jeez.
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But it was a really, you know, crazy situation.
00:18:18.949 --> 00:18:35.909
So like what's what's the situation if like you have a total loss of your, you know, with because like that's equipment, like I I would never think that that would happen, but now I don't have a car, and you know, the you guys determined that it was because of the the battery that was in the car.
00:18:36.149 --> 00:18:36.709
Yeah, yeah.
00:18:36.869 --> 00:18:39.990
No, the th there's a there's a handful of of things to that.
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So if you have an e-bike in the back of your truck and and it gets stolen, damaged or otherwise, there wouldn't be any coverage for that under your auto policy.
00:18:51.669 --> 00:19:00.709
Auto auto is gonna cover things that are permanently attached to the vehicle, and they consider anything that's like attached via the trailer hitch in that boat.
00:19:00.869 --> 00:19:06.629
So, like for the hammerhead's in the back and it's attached to the truck, then it's part of the truck.
00:19:06.869 --> 00:19:07.509
Yeah, yeah, yeah.
00:19:07.750 --> 00:19:13.669
If it's just sitting in the back seat on the back seat or on the floor of the back seat, then it's not part of the truck.
00:19:13.909 --> 00:19:18.949
Yeah, you your stuff is not covered under under an auto policy unless it's permanently attached.
00:19:19.029 --> 00:19:24.949
But like, let's say you're towing a trailer, you don't have to buy separate liability insurance for that trailer.
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The liability of the vehicle towing it covers everything that's attached to it.
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So you, if for physical damage, you would have to buy that separately for the actual trailer value.
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But if you like, if you backed into somebody in the parking lot and your hammerhead or your riptide ended up causing damage to the car, like that would be covered under, you know, your your auto policy because they consider that permanently attached.
00:19:48.469 --> 00:20:01.189
Your stuff is going to be covered under either a homeowner's policy or an inland marine policy, is what they call it, or an equipment floater is a separate policy for commercial purposes.
00:20:01.429 --> 00:20:21.509
So, so yes, and you know, if if if if the lithium battery ended up causing a fire and burned down the car, they would not cover the cost of the e-bike that started the fire, but they would cover your vehicle damage as long as you carried comp and collision, your full coverage, your physical damage coverage.
00:20:21.669 --> 00:20:26.149
Um, that wouldn't negate coverage, even though it's your stuff that caused the fire.
00:20:26.789 --> 00:20:33.589
As long as you didn't do it on purpose and they can and they can prove you did it on purpose, then it's very broad and that would be covered for sure.
00:20:33.829 --> 00:20:37.909
You know, the the other the other things to consider, like pollution is a good example.
00:20:38.069 --> 00:20:43.829
Like our general liability policy has uh$50,000 for pollution slash hazmat.
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So if you like have an accident and you've got like liquid chemicals or any chemicals in the back of your car, because a standard auto auto policy always excludes that.
00:20:53.349 --> 00:21:06.869
So, you know, the only time that you know, if you flip your car and you've got oil and gasoline and stuff is like leaking into a storm drain, that would be covered under your auto because it's part of what's permanently attached to the auto.
00:21:06.949 --> 00:21:20.709
But if you f if you flip over, someone hits you and spill a bunch of chlorine tabs into the gutter, you know, like and they send hazmat out to clean it up, then you know, that would not be covered under a standard auto policy, like any of them, period.
00:21:20.869 --> 00:21:24.389
No companies were going to cover pollution uh because you're carrying stuff.
00:21:24.469 --> 00:21:26.469
So what do you there's ways to address it?
00:21:26.709 --> 00:21:29.029
Yeah, what do you have to do to get that?
00:21:29.269 --> 00:21:30.629
And do we have that?
00:21:30.949 --> 00:21:38.949
Yeah, so you can get a separate standard, you can get a policy for anything, but yes, you can you can get a separate pollution policy if you've got major concerns with that.
00:21:39.029 --> 00:21:46.309
Like our general liability policy for your business that we have you insured under, it has a separate limit, special limit in there.
00:21:46.389 --> 00:21:49.829
It's an endorsement that will cover up to 50 grand for hazmat cleanup.
00:21:49.909 --> 00:22:02.469
And we have paid several of those claims out over all these years where you know, like they're quick, especially you you get in states like California and some others where like they're gonna send out the hazmat team, EPA, Coastal Commission, like you're stroke.
00:22:03.189 --> 00:22:04.709
You can get an all or check before you look at it.
00:22:07.029 --> 00:22:07.909
Yep, for sure.
00:22:08.069 --> 00:22:22.949
So, you know, some policies are gonna give you that endorsement or give you the ability to add that on via rider to have pollution coverage while you have, you know, pool chemicals and transport, but your auto will never cover that under a standard auto, whether it's personal or commercial.
00:22:23.029 --> 00:22:25.429
So you want to make sure it's addressed one way or the other.
00:22:25.669 --> 00:22:26.069
Right.
00:22:26.309 --> 00:22:27.990
Because that's likely to happen, right?
00:22:28.309 --> 00:22:31.990
Auto accidents are the most common claims out of all types of insurance.
00:22:32.069 --> 00:22:38.389
And so the ones that we paid out on, our guy was hit and you know, it was just chemicals spilled out.
00:22:38.469 --> 00:22:47.109
They were hit, but you know, because if even though it wasn't his fault, their other pol the person who hit him's auto policy isn't going to cover pollution.
00:22:47.269 --> 00:22:51.509
His policy wouldn't have covered pollution, and so you know, our policy stepped in and covered it.
00:22:51.990 --> 00:22:52.709
Wait, wait, wait, though.
00:22:53.269 --> 00:23:01.990
So now you hit me and you don't have the insurance to cover the shit that I just spilled.
00:23:02.309 --> 00:23:02.709
Yeah.
00:23:03.189 --> 00:23:06.469
And I don't have the insurance to cover the shit that I just spilled.
00:23:06.949 --> 00:23:08.309
Sounds like you're getting sued.
00:23:08.709 --> 00:23:09.829
Yeah, a hundred percent.
00:23:09.990 --> 00:23:13.189
And that's why that's the next step in this?
00:23:13.429 --> 00:23:14.709
B both of you would.
00:23:14.789 --> 00:23:15.029
Yeah.
00:23:15.109 --> 00:23:24.789
The city or the whoever the entity, the the state, city, whatever, the county, um, they would go look to recoup for the money spent on the hazmat cleanup for sure.
00:23:24.949 --> 00:23:35.349
So that's why what happened in this in this particular one, our insured was hit, caught that didn't cause the spill, but spilled because he was carrying the pool the pool chemicals.
00:23:35.669 --> 00:23:37.109
And he had insurance for that, though?
00:23:37.349 --> 00:23:39.509
He had insurance under our general liability.
00:23:39.589 --> 00:23:41.669
So they're like, someone's gonna pay for this.
00:23:41.750 --> 00:23:45.909
So our insurance company likely came back to the person who hit him.
00:23:46.069 --> 00:23:55.829
They stroke the check for 50 grand, got it paid, and then they go back with their team and they go try to get their 50 grand back from the person who caused the accident, is essentially how that works.
00:23:55.990 --> 00:23:59.990
So I I didn't hear if they did or not, but our insured was covered.
00:24:00.069 --> 00:24:02.549
They stroked the check and he was free and clear.
00:24:02.789 --> 00:24:03.589
Got it.
00:24:03.990 --> 00:24:17.109
So, and most of the time, I would assume pulling back the curtain a little bit, you go back to this person who hit them, and you're probably gonna settle and take less than 50 grand.
00:24:17.509 --> 00:24:25.029
If anything, but it's the insurance company's fault problem if if you have coverage for it, you don't have to it's not my problem anymore.
00:24:25.109 --> 00:24:29.909
I'm just I'm just trying to look at you know the inner workings of what you guys are doing on the back end, right?
00:24:29.990 --> 00:24:35.189
Because obviously, you know, you want that money back, but that person doesn't have the insurance for it.
00:24:35.349 --> 00:24:40.549
Like, yeah, how would you go about without divulging too much?
00:24:40.629 --> 00:24:41.269
You know what I mean?
00:24:41.349 --> 00:24:48.629
Like you're gonna send them to collections because like if collections was calling me about that shit, I would be like, All right, dude, like see you later.
00:24:49.109 --> 00:24:49.990
Like, I'll get a lawyer.
00:24:50.069 --> 00:24:52.389
Like, I'd be like, This doesn't sound like my fucking problem, you know?
00:24:52.549 --> 00:24:53.269
Yeah, yeah.
00:24:53.349 --> 00:24:58.949
Um but now you gotta hire a lawyer, and then you know the lawyer probably comes back and says, Hey, this is pretty serious.
00:24:59.349 --> 00:25:04.949
They'd probably they'd probably settle, or if there's nothing there, then they walk away and just eat the 50 grand, the insurance company gets it.
00:25:05.109 --> 00:25:07.269
No, and I'm I'm sure it could happen both ways, I guess, right?
00:25:07.349 --> 00:25:09.589
So it just really depends on on the situation.
00:25:09.909 --> 00:25:20.789
But but just like to put a bow on that, like 99% of of coverage like would not kick in 99% of the people out there who had this accident.
00:25:20.949 --> 00:25:26.149
Like, it it just it's always excluded from pollution's excluded from all general liability.
00:25:26.309 --> 00:25:30.549
Pollution out of the back of an auto is excluded under every auto policy.
00:25:30.629 --> 00:25:39.349
So if you don't have a specific rider or a separate pollution policy, it's like it's highly unlikely that that there's any coverage that would kick in under any circumstance.
00:25:39.429 --> 00:25:41.990
So talk to your insurance agent and make sure you got coverage.
00:25:42.309 --> 00:25:43.669
Well, this is spicy, right?
00:25:43.750 --> 00:25:47.269
Because like uh I I have that coverage for me.
00:25:47.429 --> 00:25:48.149
Yeah, right.
00:25:48.469 --> 00:25:51.750
So and that's under our general liability or no?
00:25:51.829 --> 00:25:53.429
Do we have to have we have a separate right policy?
00:25:53.669 --> 00:25:55.189
Nope, it's under your general liability.
00:25:55.269 --> 00:26:01.909
Our our our our service program policy, it includes that sublimit because it's such a it's such a relevant.
00:26:02.309 --> 00:26:05.990
Because now I'm just thinking about like my like the guys that I work with on the road, right?
00:26:06.069 --> 00:26:09.589
Because they all have insurance through you as well, too, because they're 1099s.
00:26:09.990 --> 00:26:16.869
And it's kind of silly for like me to have it if they're out there with like I don't go out with chemicals that often anymore, you know.
00:26:17.189 --> 00:26:21.829
When I do, it's it's like it's like one case of chlorine, it's not like 12 cases of chlorine.
00:26:22.469 --> 00:26:22.709
Yeah.
00:26:22.869 --> 00:26:28.469
Um, so for you know, my thestol process is stuff, they get into an accident or somebody hits them to make sure that that they're covered too.
00:26:28.549 --> 00:26:29.029
So that's good.
00:26:29.589 --> 00:26:30.149
That's part of that.
00:26:30.469 --> 00:26:32.389
The nice part is that it comes included.
00:26:32.469 --> 00:26:37.750
Like, even if you wanted to remove it, it wouldn't change the price by a cent from our general liability policy.
00:26:37.909 --> 00:26:51.029
If you were in a position where you had a GL policy that didn't have that sublimit, that 50 grand for pollution, and you were thinking about buying a separate one, you know, then for sure you just got if you don't do that very often, then I would say don't buy the extra policy.
00:26:51.189 --> 00:26:56.469
But for years, you know, we felt like it was important to just include it in the normal standard coverages.
00:26:56.549 --> 00:27:03.429
And so, yeah, you're you're no one's paying extra for it, but it is included because it is, you know, it's yeah, not all the time, but it's not in three.
00:27:04.069 --> 00:27:07.269
But you keep saying that it's not included, so I just wanted to make sure.
00:27:07.429 --> 00:27:10.229
Because in most policies, it's it's not, you know.
00:27:10.709 --> 00:27:10.949
Correct.
00:27:11.429 --> 00:27:20.789
That's the great thing about California Pool Association for me is that you know, every time we do this, there's not too many times where Pat will come back and tell me, oh, you would need to add this on.
00:27:20.869 --> 00:27:35.349
Um, you guys are pretty well versed in what what the pool guy does and the you know the trials and tribulations of the things that that may happen to you when you're in someone's backyard and on the road, and obviously we have you know toxic chemicals that are you know don't can't be mixed with each other.
00:27:35.589 --> 00:27:45.109
And the state and local authorities, they they don't want this stuff going into our waterways and the sewers and stuff, so that's why they have these hazmat people come out.
00:27:45.269 --> 00:27:49.750
So, Pat, thank you so much for shedding some light on this today because I think that this was pretty eye-opening for everybody.
00:27:49.990 --> 00:27:59.829
So, you know, if you guys aren't with California Pool Association, I definitely implore you to go and talk to your insurer and make sure that this is part of your policy.
00:28:00.069 --> 00:28:07.829
And if it's not part of your policy, I would love for you to reach out to California Pool Association because that is something that they include.
00:28:07.909 --> 00:28:13.829
And not only do they include that, they include uh, you know, a bunch of other things in there as well, too, which we've talked about on previous shows.
00:28:14.069 --> 00:28:22.709
So if you reach out to them and you come on board for an annual policy, they will give you a one-month, one-month break if uh you mention the Talking Pools podcast.
00:28:22.869 --> 00:28:24.709
So, Pat, thanks so much for being here.
00:28:24.789 --> 00:28:26.389
And guys, thanks so much for listening.
00:28:26.469 --> 00:28:29.990
This is the Insurance Interlude, and we will talk at you next week.
00:28:30.389 --> 00:28:31.349
Thanks, Steve.
00:29:14.869 --> 00:29:21.189
Um venues uh sources, but uh Leslie's you say that word, and either people go, yay, or uh.
00:29:21.829 --> 00:29:35.109
Um Leslie's is um now I might not be using the wording carefully because I'm not a an attorney or anything like that, but they're they're in a kind of bankruptcy, bankruptcy where they reorganize and things like that.
00:29:35.269 --> 00:29:38.469
They're closing what was Steve, 250 stores?
00:29:38.869 --> 00:29:42.229
So it could be it could be up to 250 stores.
00:29:42.549 --> 00:29:49.349
I think that they're going so basically they filed, they officially filed or are going to file for chapter 11 bankruptcy.
00:29:49.429 --> 00:29:49.750
That's it.
00:29:49.990 --> 00:29:56.629
And what that means is they're not closing, they're not closing the brand, they're just going to be restructuring their money.
00:29:56.789 --> 00:30:02.949
And now the lenders are actually going to be in control of the money and where it goes.
00:30:03.189 --> 00:30:13.750
So I think what what that kind of does is it relinquishes them saying, Oh, we we really like that store in that area because of whatever.
00:30:13.909 --> 00:30:20.309
And they're like, Well, the numbers don't like that store's closing because they don't make enough revenue, is really what it count to.
00:30:20.549 --> 00:30:30.949
So they're gonna go, and they did this already, I guess it was like two years ago, because uh I work, I shop at one of the local Leslie's here, and there were three of them in that same town.
00:30:31.109 --> 00:30:34.469
I think two of them have closed, so this is like the commercial center that's there.
00:30:34.629 --> 00:30:36.629
So that's the only one that's open now.
00:30:36.869 --> 00:30:49.269
But there was a point where they like changed around management, and there was like a manager there the one day doing like inventory, and they basically were like, Hey, they just informed us today.
00:30:49.429 --> 00:30:55.750
We just want you to know that like we can't do any price matching because I'm always going to them, being like, Hey, can you price match this?
00:30:55.829 --> 00:30:58.869
I need this right now, but I can buy it here for this.
00:30:59.189 --> 00:31:00.469
Will you give it to me for that?
00:31:00.629 --> 00:31:07.029
And if they say no, I just say, Okay, cool, you can have it back, and I'm gonna go to the store where I can get it cheaper and just buy it at that store.
00:31:07.109 --> 00:31:07.429
Yeah.
00:31:07.589 --> 00:31:12.069
So they basically prepared me for that because they were like, We know you do a lot of the price matching stuff.
00:31:12.229 --> 00:31:14.469
They were like, Those days are kind of over.
00:31:14.629 --> 00:31:27.589
And now, about six months ago, they actually said, Oh, hey, like, we do want you to start buying these filters from us in bulk, and we do want you, we do want your business back for the hilarious vacuums and stuff.
00:31:27.829 --> 00:31:31.509
And I was like, Okay, cool, but like I need I need you to price match for me.
00:31:31.589 --> 00:31:32.629
And they were like, Okay, cool.
00:31:32.709 --> 00:31:33.990
And they they started doing it again.
00:31:34.069 --> 00:31:39.990
So I want I'm not apprehensive to see, but I'm just I I want to see like worried, yeah.
00:31:40.789 --> 00:31:58.549
Yeah, I mean, like, it's not that it's not that I'm so much worried like for our business, because like we're still gonna go and buy stuff from where SCP or Heritage or you know, insert whatever big, big, big box vendor, you know, wholesaler and distributor that you're gonna that you want to, and we're gonna go buy from them.
00:31:58.869 --> 00:32:04.789
But I really like the fact that Leslie's is in the the game, you know.
00:32:05.029 --> 00:32:19.029
Not only that, like they I just think part of the problem is like uh just like every time I go to a different branch of the same company, and let's just say pool corp, because they're the biggest one, right?
00:32:19.269 --> 00:32:24.629
So there's pool corp branches, literally, there's 11 of them in Southern California.
00:32:24.789 --> 00:32:36.709
So if I needed to find something, like a heater part or like a sometimes I'll have to go find like these weird, we just had to go find a five horsepower housing, like a front end of a pump, like a wet end of a pump.
00:32:36.869 --> 00:32:42.389
And that's not like something that everyone has sitting on the shelf because it's it's actually high voltage and all that stuff.
00:32:42.709 --> 00:32:57.189
So, you know, we went and drove to where we had to go pick it up, and we're just so accustomed to being at our local, you know, branch where we walk in, we know everybody, we, you know, we teach classes there.
00:32:57.429 --> 00:33:05.429
So like I can and that was one of the things that I didn't really like about um when I was like in the mix doing pools all the time.
00:33:05.589 --> 00:33:20.709
I would have to strategically go to the distributor at a certain time because if I showed up when they first opened up, I could be there for 50 minutes, you know, an hour, an hour and 10 minutes, because there's there's six guys that are there in front of you.
00:33:20.789 --> 00:33:22.309
Like that's when everybody's starting their day.
00:33:22.389 --> 00:33:23.269
They're there at 6 a.m.
00:33:23.509 --> 00:33:24.709
If they open up at 6 a.m.
00:33:25.029 --> 00:33:33.909
So I would strategically like leave space in my truck, but bring enough for my first couple pools, and I'd like head in that general direction.
00:33:34.149 --> 00:33:41.269
And then like in the middle of the day, when there was a bit of a dip point, I would go in and uh, you know, buy my stuff.
00:33:41.349 --> 00:33:47.189
And then I was able to like kind of and then like when I was promoting the classes, I would sit there and I would be like, Okay, cool.
00:33:47.429 --> 00:33:50.149
And then I asked them, I'm like, What's what's like your busy time?
00:33:50.229 --> 00:33:55.109
And it's like the beginning of the day and like right after lunchtime, you know, those are their their busiest times.
00:33:55.349 --> 00:33:55.750
Yeah.
00:33:55.990 --> 00:34:12.949
Regardless, you know, Leslie's, you know, you can't as a as a homeowner who has a pool, you don't have the option to go to to SCP or to Heritage or to the old PEP or Gorman or any of these places, right?
00:34:13.110 --> 00:34:21.670
Like you have to go to Leslie's, or you have to go to, you know, there's this one place that I always used to go to in Jersey.
00:34:21.750 --> 00:34:24.869
It was like called Jersey Chemical in in Patterson, New Jersey.
00:34:25.110 --> 00:34:27.110
Yeah, there's a number of independent ones around.
00:34:27.510 --> 00:34:27.750
Right.
00:34:27.829 --> 00:34:37.510
No, but I would always cringe when I would go there because like uh you'd be buying a part at like full retail plus 10%.
00:34:38.309 --> 00:34:48.710
You know, where like if you went to the distributor and you looked at this price and it was a$20 piece, like you could expect that it would be a$70 piece at this, yeah, you know, this independent distributor.
00:34:48.869 --> 00:35:02.150
And I'm not ragging on the independent distributors, everybody's got to put money in their pocket, and you know, as it goes down the line of you know, transfers and sales and stuff, people need to make their money, which I'm I'm totally fine with.
00:35:02.390 --> 00:35:25.110
But now we're kind of locking out the homeowner, yeah, you know, and where there used to be a lot of people have called me and I'm like, okay, you know, you it sounds like you you don't need my services, but what you should do is you should go down to your local Leslie's and have them test your water for you, and then I'll go over with them.
00:35:25.269 --> 00:35:29.349
If these levels are high, you want to just drain your pool, and sometimes it's better to just start over.
00:35:29.750 --> 00:35:43.910
And they're like, Oh, yeah, there used to be a Leslie's over here on uh, you know, southern and western or whatever, but like uh they closed and now the let the the closest Leslie's is 20 minutes away, or the closest Leslie's is 15 minutes away.
00:35:44.309 --> 00:35:51.190
Now where I live, I there used to be five Leslie's branches within a 10 mile radius.
00:35:51.510 --> 00:35:51.750
Right.
00:35:51.910 --> 00:35:53.269
And how many are there now?
00:35:53.750 --> 00:35:55.510
Two that I that I know of.
00:35:55.829 --> 00:36:17.829
But I I wanted to bring in a little bit of a different perspective and as a manufacturer, as a former manufacturer, is that when when Leslie's kind of emerged in the industry, I know that that Taylor, for example, was very hesitant to get on board with them because they weren't sure if if it was gonna work or not.
00:36:17.990 --> 00:36:23.750
Uh, a couple years after that, they approached us to a private label, and you might have seen it when you go to the book.
00:36:23.990 --> 00:36:26.950
Those are that's I mean, that's the most lucrative thing that you can do, right?
00:36:27.030 --> 00:36:28.230
I think that's what we did.
00:36:28.789 --> 00:36:37.829
Because that's you know, hey, you're just we're gonna do the same thing, we're gonna sell it to you, and you're gonna sell it as your own brand.
00:36:38.070 --> 00:36:38.550
Right.
00:36:38.789 --> 00:36:40.789
But everybody makes money, you know what I mean?
00:36:41.110 --> 00:36:49.829
So you're not having you're not actually having to do any of the legwork of the sales, you're just putting it on their shelf and then bam, it's selling itself, right?
00:36:49.990 --> 00:36:50.550
So right.
00:36:50.789 --> 00:36:59.670
And and and and realistically, when a Leslie's uh order came in, it was like 20, 25 pages thick.
00:37:01.030 --> 00:37:02.789
Dude, there's a lot remote.
00:37:03.829 --> 00:37:09.349
All she did all day long was enter Leslie's orders until it became automated a while ago.
00:37:09.670 --> 00:37:27.030
But my my point was that uh as a manufacturer, situations like that that the the order is so big that basically you have to stop everything else you're doing and do that order by whatever date they needed to be done.
00:37:27.110 --> 00:37:32.870
It was a significant amount of time on the manufacturer's part to get it out the door.
00:37:33.510 --> 00:37:33.990
Of course.
00:37:34.230 --> 00:37:38.390
So so we we we loved and we hated Leslie's orders.
00:37:38.630 --> 00:37:43.510
You know, we knew what money was coming in, but we knew the time it took to get them out.
00:37:43.829 --> 00:37:47.910
So it and and tied into that is shipping and and all that other stuff.
00:37:48.309 --> 00:38:01.510
But you would say that that was a very successful partnership between both Leslie's and Taylor because they're still sitting on the shelf today in the in the famous blue box, right?
00:38:01.590 --> 00:38:06.710
So now now I don't know what specifically, if anything, has changed.
00:38:06.950 --> 00:38:10.550
Because remember, I left in September of 2022.
00:38:10.950 --> 00:38:11.670
Sure, yeah, of course.
00:38:13.670 --> 00:38:16.150
Things are always gonna, you know, things are always gonna change.
00:38:16.230 --> 00:38:17.829
But uh Yeah.
00:38:18.309 --> 00:38:23.110
It's uh it it's uh, you know, you you love to be in bed with them, but kick them out.
00:38:23.510 --> 00:38:26.150
Or you know, you notice little things about them.
00:38:26.550 --> 00:38:29.670
But um Leslie's as very good to Taylor.
00:38:29.750 --> 00:38:50.550
They were they were as far as uh they weren't a true what we called back then full stocking distributor, because to us a full stocking distributor, we went by then it was NSPI guidelines, which means that at least I believe it was 70% of their business was commercial, right?
00:38:51.190 --> 00:38:52.470
Not open to the public.
00:38:52.789 --> 00:38:54.550
I know that's changed a little bit.
00:38:54.710 --> 00:39:02.070
I don't know what the specific numbers are, but Leslie's had its had its own discount structure above and beyond anybody else.
00:39:02.390 --> 00:39:03.190
Of course, yeah.
00:39:03.510 --> 00:39:06.950
And that's just because on the back end they're they're a whale, right?
00:39:07.110 --> 00:39:12.870
So like you give you give whales bigger discounts, obviously, and the more you buy, that's with anything.
00:39:13.030 --> 00:39:22.789
Like I I saw these really cool tents when I went to a weekend concert, you know, not too long ago, and this guy was like, Oh, he's like, I can get them manufactured in China, and basically they're the same thing as shift pods.
00:39:23.110 --> 00:39:24.230
And I was like, Oh, cool.
00:39:24.309 --> 00:39:25.829
And like, I was like, I want to know more about that.
00:39:25.910 --> 00:39:43.190
And like he sent me like the pricing structure sheet, and like, you know, if you bought 50 of them, the shipping was pretty significant, but if you bought 500 of them, the shipping fell off a cliff, you know, so it's like it's almost non-existent at that point because now you're filling up the you know the pallets themselves.
00:39:43.510 --> 00:39:58.550
My you know, my my biggest thing with with this happening with Leslie's, like I said, is that you know it's just taking a big player out of the game, and I think that allows the other big players in the game to now charge more.
00:39:58.789 --> 00:40:00.070
Well, that was my next one.
00:40:00.309 --> 00:40:08.789
It's really what it comes down to, like what happens to pricing with uh you know, with all of this, and and how does that affect you know, how does that affect that?
00:40:09.190 --> 00:40:16.309
And what happens if, God forbid, and it's and it's very conceivable, Leslie's closes up.
00:40:17.110 --> 00:40:20.789
All the stores are closed, I mean everything's completely liquidated.
00:40:20.950 --> 00:40:45.110
Now, granted, there'll be a lot to happen if that if I think that someone with someone with capital would come in and be like, look, we're gonna buy your debt and we're gonna buy the company and we're gonna restructure it or or whatever, but like uh it's too big of a market share to be left on the table for all of independent distributors.
00:40:45.269 --> 00:40:46.150
There's not enough.
00:40:46.710 --> 00:40:49.110
There's just not enough of them out there, right?
00:40:49.190 --> 00:40:53.829
For them to be taking care of the the type of pool, the the amount of pools.
00:40:54.070 --> 00:40:59.829
So like maybe they maybe Leslie's now becomes like in and out.
00:41:00.390 --> 00:41:06.710
Like you can only get you can only get it in Southern California, in Arizona, in Texas, in Florida.
00:41:06.950 --> 00:41:09.269
Like maybe they move out of Idaho.
00:41:09.430 --> 00:41:13.110
And uh they're in Chatsworth, isn't isn't that the main location?
00:41:13.269 --> 00:41:14.230
Yeah, Chatsworth.
00:41:14.710 --> 00:41:15.349
I think so, yeah.
00:41:15.430 --> 00:41:25.510
So but they're in they're in a bunch of different places, and like, but just maybe, you know, they're gonna close a bunch of stores, but like uh I mean it's gonna hurt.
00:41:25.670 --> 00:41:28.309
It's gonna hurt in some way or another.
00:41:28.390 --> 00:41:33.190
I just hope that one, they they don't you know liquidate and get and go bye-bye.
00:41:33.430 --> 00:41:43.430
And your scenario of an investor coming through to kind of they've got 850 to 860 stores that are open in America right now.
00:41:43.750 --> 00:41:58.230
So two to two fifty, I mean it's it's significant, but again, like I know here just in my local locale, there's two of them here in Torrance that are up the street from each other.
00:41:58.630 --> 00:42:00.150
They closed the third one already.
00:42:00.230 --> 00:42:04.070
There was another one that was like the town over in Huntington Beach.
00:42:04.230 --> 00:42:11.430
There's there's two or three of them that are you know kind of like spread out through Costa Mesa, and like you know, it's just in the next town.
00:42:11.510 --> 00:42:16.870
So it's like maybe instead of them being Starbucks, where they're on every corner.
00:42:17.269 --> 00:42:18.470
Well, Starbucks, yeah.
00:42:19.110 --> 00:42:20.070
Well, it's just here.
00:42:20.230 --> 00:42:24.309
Starbucks is uh, you know, every single it's kind of like where you're at, where Dunkin' Donuts is, right?
00:42:24.390 --> 00:42:29.430
Like exactly you can't go two miles without seeing uh seeing a Dunkin' Donuts.
00:42:30.070 --> 00:42:41.190
So I just think that they're you know Jersey Mike's is on the the uptrend with they want to double their stores and stuff, but it just comes down to to revenue, right?
00:42:41.269 --> 00:42:50.870
And like if you if you're not making enough revenue and you're a publicly traded company, they don't give a shit about how many stores they need to close.
00:42:51.110 --> 00:43:08.230
Like they just want they want the stockholders to to get their money, and the only way that the stockholders get money is if they get dividends and the company is actually clearing money, because if the company's not clearing money, then no one's getting extra money and your stock price is plummeting.
00:43:08.470 --> 00:43:12.950
But you could also be like Jersey Mike's right now, like their stock is terrible right now.
00:43:13.110 --> 00:43:13.430
Yeah.
00:43:13.750 --> 00:43:17.510
They started off at like 26 bucks or something, I think it's at like eight now.
00:43:18.550 --> 00:43:20.710
So I'm glad I bought into that right at the beginning.
00:43:21.030 --> 00:43:21.990
It'll go back out.
00:43:22.309 --> 00:43:23.510
It'll go back out.
00:43:24.309 --> 00:43:24.950
Wild.
00:43:25.430 --> 00:43:28.390
This episode is brought to you in part by Pool Brain.
00:43:28.630 --> 00:43:35.110
Pool Brain gives pool professionals the tools to run smarter, more efficient, and more profitable service businesses.
00:43:35.349 --> 00:43:37.430
Check them out at PoolBrain.com.
00:43:37.670 --> 00:43:39.269
Breaking news from Leslie's.
00:43:39.430 --> 00:43:49.670
In a press release dated September 30th, 2026, Leslie's announced a strategic transaction to strengthen its financial foundation and position the company for the future.
00:43:49.910 --> 00:44:00.070
The company has entered into a restructuring support agreement to eliminate approximately 90% of its debt and secure$150 million in new capital.
00:44:00.309 --> 00:44:07.349
That includes$90 million in new money debtor in possession financing and$60 million in equity financing.
00:44:07.590 --> 00:44:18.309
With support from more than 80% of its existing lenders, Leslie's has initiated a prearranged restructuring process to implement a financial and operational reorganization.
00:44:18.550 --> 00:44:23.030
According to the company, operations will continue in the ordinary course.
00:44:23.269 --> 00:44:29.990
Customers will continue to receive the products, solutions, and service they rely on for their pool and spa care needs.
00:44:30.230 --> 00:44:32.309
The press release is as follows.
00:44:32.630 --> 00:44:39.510
On September 30th, 2026, Leslie's incorporated the largest and most trusted direct-to-customer brand in the U.S.
00:44:39.590 --> 00:44:52.230
pool and spa care industry, serving residential customers and pool professionals nationwide, today announced that it has entered into a restructuring support agreement with a group of its existing lenders.
00:44:53.349 --> 00:45:03.510
Agreement lays the groundwork for transactions that will significantly strengthen the company's capital structure, rationalize its retail operational footprint, and create greater financial flexibility.
00:45:03.750 --> 00:45:11.030
This will support reinvestment in the business and a continued focus on operating execution of its strategic transformation.
00:45:11.269 --> 00:45:19.190
The restructuring support agreement includes commitments for$90 million of new money, debtor in possession financing, and$60 million of equity financing.
00:45:19.349 --> 00:45:23.990
The equity financing is fully backstop by certain parties to the agreement.
00:45:24.230 --> 00:45:33.670
It also includes a reduction of approximately$685 million or 90% of the company's outstanding funded debt.
00:45:33.910 --> 00:45:54.630
With a stronger financial foundation, a deliverage balance sheet, an optimized store footprint, and liquidity to further invest in the business, Leslie's will be well positioned to reinvest in its operations, enhance the customer experience, and continue serving customers with the service, expertise, and solutions that make Leslie's the best choice for pool and spa owners.
00:45:54.789 --> 00:46:08.630
To implement the restructuring transactions contemplated by the agreement as efficiently as possible, Leslie's filed voluntary petitions for pre-arranged Chapter 11 cases in the United States bankruptcy court for the Southern District of Texas.
00:46:08.789 --> 00:46:20.309
Upon emergence, the company expects to be under the majority ownership of a group of its existing lenders who support Leslie's mission to deliver unparalleled expertise, service, and innovative solutions for its customers.
00:46:20.470 --> 00:46:27.190
Leslie's expects to move through this process efficiently with the goal of emerging from Chapter 11 in early 2027.
00:46:27.510 --> 00:46:36.789
Jason McDonnell, Chief Executive Officer of Leslie, said today's announcement marks an important milestone in our commitment to our customers and our business.
00:46:36.950 --> 00:46:48.789
With a stronger balance sheet and greater financial flexibility, Leslie's can reinvest across the business to strengthen operating execution and deliver an even better experience for our customers, both in-store and online.
00:46:49.269 --> 00:47:00.309
Leslie's is here to stay, and I am deeply grateful to our employees, customers, and partners for their continued support as we work to position Leslie's for a strong future.
00:47:00.630 --> 00:47:09.750
Importantly, Leslie's remains fully operational and committed to serving customers without interruption, including through its physical stores and digital platforms.
00:47:09.910 --> 00:47:20.309
As a part of its ongoing efforts to strengthen operating performance, Leslie's continues to evaluate opportunities to better align its store network with customer demand and long-term business objectives.
00:47:20.470 --> 00:47:25.910
In connection with this evaluation, Leslie's Today announced the closure of 76 stores.
00:47:26.150 --> 00:47:32.070
All remaining stores outside of those that were recently closed remain open and fully operational to serve customers.
00:47:32.230 --> 00:47:40.550
Through the Chapter 11 process, Leslie's will continue to evaluate its real estate portfolio to better align its footprint with the long-term needs of the business.
00:47:40.789 --> 00:47:45.910
Leslie's will continue operating in the ordinary course of business throughout the Chapter 11 process.
00:47:46.070 --> 00:47:54.950
It remains committed to honoring its obligations to employees, partners, and vendors and delivering for its customers without disruption.
00:47:55.110 --> 00:47:58.390
The company has filed a number of customary first day motions.
00:47:58.550 --> 00:48:11.910
Upon approval by the court, these motions will enable Leslie's to continue to pay employee wages and benefits as usual, maintain customer programs, honor obligations to vendors, and obtain other relief measures common in these circumstances.
00:48:12.150 --> 00:48:16.390
All gift cards and loyalty program benefits will continue to be honored.
00:48:16.550 --> 00:48:28.630
To fund operations without disruption during the Chapter 11 process, Leslie's has also filed a motion seeking approval of the$90 million debtor in possession facility from a group of its existing lenders.
00:48:28.789 --> 00:48:39.590
It is also seeking approval of a fully committed$225 million debtor in possession asset-based financing facility from its existing asset-based lending leaders.
00:48:39.750 --> 00:48:48.150
Upon court approval, these financing arrangements will provide sufficient liquidity to support the company's operations throughout the chapter 11 process.
00:48:48.390 --> 00:48:58.470
Additional information regarding Leslie's Chapter 11 cases, including court filings and other documents related to its proceedings, is available through the company's claims agent, Kroll.
00:48:58.630 --> 00:49:08.470
The website is restructuring.com slash Leslie's pool.
00:49:08.710 --> 00:49:21.269
Stakeholders with questions can contact Kroll by calling eight four four four zero eight three three nine seven in the United States or in Canada.
00:49:56.150 --> 00:49:57.910
So gang.
00:49:58.470 --> 00:50:05.910
If you have any uh stories that are related to what we just talked about, you know, Leslie's you know, independent stores, things like that.
00:50:05.990 --> 00:50:13.110
Or if you have any ideas for suggestions or ideas or comments or whatnot, please send them to talkingpools at gmail.com.
00:50:13.430 --> 00:50:21.590
We will get them, we will look at them, and if we if we can use them when we broadcast, we'll send you a little present as a thank you.
00:50:22.230 --> 00:50:24.150
Steven, thank you, as always.
00:50:24.390 --> 00:50:26.390
Be safe out there on the west side of things.
00:50:26.470 --> 00:50:32.150
And I'll try to not you know wash away, be washed away by the ocean anytime real soon.
00:50:32.710 --> 00:50:34.230
We all gotta worry about that right now.
00:50:34.309 --> 00:50:35.670
So jeez.
00:50:36.070 --> 00:50:37.590
Okay, well, take care, guys.
00:50:37.750 --> 00:50:39.110
Uh, we'll talk at you soon.
00:50:39.510 --> 00:50:39.829
Take care.
00:50:40.150 --> 00:50:40.630
Bye bye.
00:50:41.030 --> 00:50:41.590
You too.
00:00:53.509 --> 00:00:55.269
Happy Thursday to everybody.
00:00:55.429 --> 00:00:57.030
Welcome to Talking Pools.
00:00:57.189 --> 00:00:59.189
Uh Thursdays with Steve and Wayne.
00:00:59.429 --> 00:01:03.030
Hope everybody has had a a good week, a safe week, a profitable week.
00:01:03.189 --> 00:01:05.189
Hope the weather's been cooperating a little bit.
00:01:05.269 --> 00:01:09.829
I know my side of the planet, uh things have been looking good even better.
00:01:09.989 --> 00:01:12.310
I mean it's October, which means we get a fall summer.
00:01:12.710 --> 00:01:17.750
It's supposed to be like 85, 88 degrees tomorrow, something stupidly ridiculous.
00:01:18.390 --> 00:01:27.430
But um and I know out your way you're still trying to recover a little bit from all the all the Yeah, we have another we have another heat wave coming.
00:01:27.670 --> 00:01:33.430
Um so they said for like the next week it's gonna be like in the 90s and the hundreds, and it's gonna be kind of humid.
00:01:34.069 --> 00:01:35.829
So just kind of dealing with that.
00:01:35.909 --> 00:01:38.549
But we've had it's been kinda hot the last month or so.
00:01:38.870 --> 00:01:49.670
My dad said though, he was in New Jersey and I spoke to him a little while ago today, and he said that they put on the air conditioners again for like the first time in a couple weeks.
00:01:50.150 --> 00:01:53.990
So it got got kind of cold, and he said it's getting, you know, darker earlier.
00:01:54.150 --> 00:02:00.790
So coming into the time where you know, you where you guys are at, the the pool season is coming to a to a quick close.
00:02:01.109 --> 00:02:07.829
What I always used to love about the commercial pools out that way was that like they didn't give a shit.
00:02:07.989 --> 00:02:11.590
They were just like, yo, like as soon as Memorial Day hits, like we're closing.
00:02:11.670 --> 00:02:13.990
Like, how about the Thursday of Memorial Day weekend, you know?
00:02:14.069 --> 00:02:16.469
And then the board's like, well, like we gotta stay open for the weekend.
00:02:16.550 --> 00:02:18.790
But they're like, Can you close on Memorial Day?
00:02:18.870 --> 00:02:20.949
Like, can you close us on Memorial Day?
00:02:22.230 --> 00:02:28.550
Because just they don't they don't want to deal with the pool because number one, it's such a big expense, you know.
00:02:28.629 --> 00:02:29.590
That's that's the first thing.
00:02:29.670 --> 00:02:38.790
Uh, if you're if you're heating the water and things like that, as soon as you turn off the heater, you're gonna be saving thousands and thousands of dollars in gas and energy costs.
00:02:38.870 --> 00:02:41.189
It's not even close if you're keeping it.
00:02:41.269 --> 00:02:49.509
And a lot of these places that I work at, they want to keep it at uh you know 84 degrees, 87 degrees, 89 degrees.
00:02:49.829 --> 00:02:50.069
Yeah.
00:02:50.629 --> 00:03:02.389
And you know, I know that we have some topics that we're gonna we're gonna talk about um in a second, but I I do just want to say this that I went out for this guy called us and he was like, hey, like we have like this camp.
00:03:02.550 --> 00:03:15.910
And I went out and saw the camp, and he was like, We're interested in having you come on and like train us and you know get our certifications and help us get our LA County certification with the hope that you work with us for like six months, and then we kind of take over.
00:03:16.149 --> 00:03:17.829
And I got there and I was like, okay, cool.
00:03:17.910 --> 00:03:19.910
I'm like, so how often does your pool guy come?
00:03:20.069 --> 00:03:21.509
And they were like, once a week.
00:03:21.750 --> 00:03:25.509
And I was like, okay, so I was like, what are you guys doing in the in the interim, you know?
00:03:25.589 --> 00:03:30.230
And they were like, no, no one really touches the pool, like on the six other days.
00:03:30.550 --> 00:03:47.029
And it's a weird, it's a weird situation because it is a northeast pool in Southern California because their camp runs from April to October, and then no one is in the pool unless they rent it from October to April.
00:03:47.350 --> 00:03:53.110
So right now we have a pool that is not being used at all.
00:03:53.269 --> 00:03:55.670
So I get that and I understand that.
00:03:55.829 --> 00:03:59.750
But I like went into the pump room and I went and I tested the cyaneric acid.
00:03:59.910 --> 00:04:02.069
The cyaneric acid was at over 300.
00:04:02.230 --> 00:04:08.310
It was like as soon as you put two drops of the turbidometric thing in there, it just number 13.
00:04:08.389 --> 00:04:08.709
Yeah.
00:04:08.949 --> 00:04:11.509
It just right right away just went away, right?
00:04:11.670 --> 00:04:17.670
So I was like, this guy, he's literally just filled, they have the rain, the big long rainbow erosion feeder, right?
00:04:17.750 --> 00:04:18.310
For the tablet.
00:04:18.709 --> 00:04:19.670
And I know what he's doing.
00:04:19.750 --> 00:04:34.709
He's just he's coming once a week, he's you know, collecting his check, and he's throwing in up, you know, putting if you put in 10, 11, 12 tablets, like that'll that'll get you through the week with a chlorine residual, but it's not necessarily sanitizing and oxidizing the pool.
00:04:35.110 --> 00:04:37.269
And the guy was super open and honest with me.
00:04:37.350 --> 00:04:52.069
And I just told him, I was like, look, I was like, even if you hire me, us to be your pool company, I was like, I'm gonna expect a little bit more of you than us coming once a week and like uh you guys not doing anything for six days.
00:04:52.149 --> 00:04:59.990
Like, you need to at least balance the water out, you know, once a day and be testing a few times a day if you have an automation system in California.
00:05:00.069 --> 00:05:12.710
And I went uh, you know, I kind of went through everything with him, and I was like, you know, I really would not to know the scope of work for this job because you I'm gonna give you a quote and it's gonna be apples, and what you have now is is oranges, you know.
00:05:12.790 --> 00:05:14.870
So he was like, Oh, he's like, I'll share the quote with you.
00:05:15.030 --> 00:05:30.790
So he actually just shared it with me straight away, and I was like, wow, I was like, I don't know how this guy is making money because he includes all of the chemicals also in the summertime, and it's an 80,000 gallon pool, Wayne.
00:05:31.350 --> 00:05:35.270
Well, so uh I was just like okay.
00:05:35.430 --> 00:05:38.470
I was like, listen, I was like, let's just do some light math here.
00:05:38.710 --> 00:05:45.750
I was like, uh this pool, every time that I come, if it's at zero, I'm gonna put in eight gallons of liquid chlorine.
00:05:45.990 --> 00:05:49.990
Okay, because we're gonna shock it to ten and we're gonna put in eight gallons.
00:05:50.389 --> 00:06:01.430
So you do that once a week, and it's actually times 78 because they want you to come twice a week during the during the summertime when the camp is over.
00:06:01.830 --> 00:06:04.310
So we might be doing that twice twice a week, right?
00:06:04.470 --> 00:06:14.150
So during part of the year, so it's something like uh 416 gallons of liquid chlorine, if it were the 52 visits or whatever.
00:06:14.790 --> 00:06:32.389
And you know, you multiply that times 10 because that's the retail price of liquid chlorine here in Southern California, and now all of a sudden that's four forty five hundred dollars, you know, forty six hundred dollars that you uh have to put towards, and that's just chlorine.
00:06:32.470 --> 00:06:36.310
Forget about muriatic acid, forget about baking soda, forget about clarifier.
00:06:36.470 --> 00:06:41.990
This guy was including phosphate treatments, he was including algicide treatments.
00:06:42.230 --> 00:06:52.949
Well, it's just like what is going on, you know, and it I know what it is, it's like a bigger company that does commercial pools and they probably subcontract out the work.
00:06:53.110 --> 00:07:02.310
So they're not they're not paying the people that go there, or it's the guy who owns his own company and he's not because there's no way that I could pay someone to go there, right?
00:07:02.550 --> 00:07:06.150
And then I also go there once in a while to train them.
00:07:06.389 --> 00:07:12.949
So what I actually said to them, Wayne, and I don't normally say this, I said, right now nobody's using the pool, right?
00:07:13.189 --> 00:07:16.230
I was like, I don't want to waste your time, money, or energy.
00:07:16.389 --> 00:07:27.110
I was like, why don't we get you in the CPO course, you know, in the next month, and I prepare you for the training that I'm about to give you at your place.
00:07:27.270 --> 00:07:39.509
Because I was like, if you if you hire me as your service company right now and you want me to come train you, I was like, these are gonna turn into, and I didn't say this, but they're fucking babysitting sessions, where I'm gonna be now I'm I'm the storyteller, right?
00:07:39.590 --> 00:07:49.270
And I'm gonna be because all the CPO things are all like visual stories with the PowerPoint, and like so you can understand and you know, really retain the concepts.
00:07:49.509 --> 00:07:55.910
So I was just like, look, you need to, I think you and your other manager need to go through the CPO course first.
00:07:56.069 --> 00:08:03.910
And I was like, then you can hire us as your service company, and then we can come out once a week and we can go over all the things that you need to go over.
00:08:03.990 --> 00:08:05.990
And now you're gonna know how to test for alkalinity.
00:08:06.069 --> 00:08:15.670
You're gonna know, like, you will understand that your cyanuric acid is three times the amount that it's supposed to be from the environmental protection agency.
00:08:15.830 --> 00:08:20.150
And like we could argue about this all day that, like, oh, they were gonna bring it up, or like that's what it is.
00:08:20.230 --> 00:08:23.670
Like the EPA says once it goes over a hundred that you should drain your whole pool.
00:08:23.830 --> 00:08:30.550
So, like, those are the these those are the types of you know things that I'm gonna listen to, right?
00:08:31.030 --> 00:08:51.110
So it was a situation where I really want I want the contract, I do, but I didn't feel comfortable taking this on and no one's using the pool, and then just like now all of a sudden doubling their monthly cost for no reason, you know.
00:08:51.189 --> 00:09:06.470
Like I and also I want to come in and know this is also like liability-wise for for us, like we don't want to just have you using our license and no one else takes care of the pool, you know, and that's how it kind of goes in some of the other states.
00:09:06.549 --> 00:09:15.830
I have like clients and commercial clients and all, like they don't we go once a week, but I had to train all of like their teachers and coaches and all that stuff.
00:09:15.909 --> 00:09:21.990
I go there at the beginning of the year and I say, like, you are in charge here every day that the kids are in the pool with you.
00:09:22.149 --> 00:09:27.750
Like, uh, you gotta test the water beforehand and after, and you know, possibly put in chlorine and all that stuff.
00:09:27.830 --> 00:09:30.310
And that's why we did a big CPO course with them.
00:09:30.470 --> 00:09:52.070
But that's why it's so important to really have your CPO because there's a lot of guys and girls out there that are, you know, in maintenance or working at like camp pools or you know, kind of like gray area pools where they just don't have any of the certifications or the knowledge, and now they're hiring these pool companies that really aren't doing anybody, you know, they're doing a disservice is really what it what it comes down to.
00:09:52.230 --> 00:10:05.909
But you know, like I said, not to go off on a tangent from what we were you know gonna talk about, which is pretty important, it just kind of falls in with that, with like, you know, know who you're working with and and make sure that they know what they're doing, you know.
00:10:06.070 --> 00:10:29.509
And I know so segueing from that, I know we wanted to chat a little yeah, the 2026 Talking Pools Podcast, top ten.
00:10:30.070 --> 00:10:41.909
Pool industry mentors are Jeff Hampi, John Poma, Greg Beard, Lacey Davis, Tim McDowell, Chris Kavanaugh, Terry Timinen, Peter Wiederman, and Jerry Wallace.
00:10:44.550 --> 00:10:49.669
The mobile waterlink spin touch allows pool and spa professionals the ability to test water in the field.
00:10:49.830 --> 00:10:58.389
A patented Waterlink Spin reagent disk is used with the innovative photometer to measure 10 different tests in just 60 seconds.
00:10:58.550 --> 00:11:05.830
That's right, just 60 seconds, and you'll have results displayed simultaneously on the photometer's touchscreen.
00:11:06.149 --> 00:11:06.950
That's not all.
00:11:07.190 --> 00:11:12.550
You also have the ability to send the data through Bluetooth into a smartphone or a tablet device.
00:11:12.710 --> 00:11:39.269
The photometer can measure free chlorine, bromine, photo chlorine, combined chlorine, phi 8, alkalinity, hardware, stinogas, and copper, iron, phosphate, chloride, fibanide, fibranite shock, and the water analysis can be proactive since they are able to measure all of these important tests and recommend correct prestiges to fix their water chemistry issues when using our Waterlink Solutions Pro software program.
00:11:39.669 --> 00:11:44.389
It allows pool and spa analysts the best way to achieve precise results.
00:11:44.550 --> 00:11:46.950
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00:11:47.110 --> 00:11:53.509
This is the most advanced system for precise use of wet chemistry methods ever produced.
00:11:53.750 --> 00:11:59.750
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00:11:59.990 --> 00:12:06.550
This groundbreaking analysis system is so simple, no vials to fill, no prep time, no guessing.
00:12:06.789 --> 00:12:13.830
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00:12:14.070 --> 00:12:18.870
Again, www.waterlinkspintouch.com.
00:12:26.950 --> 00:12:28.310
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00:12:28.550 --> 00:12:31.509
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00:12:31.669 --> 00:12:41.909
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00:12:42.070 --> 00:12:44.389
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00:12:44.550 --> 00:12:47.909
That's cmahc.org.
00:12:53.590 --> 00:13:04.870
Hey everyone, and welcome back to another episode of the Insurance Interlude with your host, Steve Sherwood, and as always, our co-host, Pat Grignon from California Pool Association.
00:13:05.110 --> 00:13:07.750
So, Pat, thanks so much for being on.
00:13:08.070 --> 00:13:16.070
Last week we had a really great segment where we talked about the flooding that we had here in Long Beach, and um there's another hurricane coming too.
00:13:16.149 --> 00:13:19.750
That should be by the time this episode comes out, we should be like right in the thick of it.
00:13:19.830 --> 00:13:21.590
So hopefully everything goes well with that.
00:13:21.750 --> 00:13:28.789
But I I want to really get all of my ducks in a row and all of my shit situated before this comes.
00:13:28.950 --> 00:13:44.389
So I was really, really, really apprehensive when we were away and this first storm came with Hurricane Marie, and that there was like just a foot and a half of just moving water coming through the alley where our car is.
00:13:44.550 --> 00:13:49.350
And to be completely honest, like we've been holding on to this car for a while.
00:13:49.509 --> 00:13:51.830
You know, like this car is almost ready to go.
00:13:52.070 --> 00:13:56.950
Um, but we do have full coverage on it because we use it for the, you know, because we use it for for business.
00:13:57.350 --> 00:14:12.550
But like I was for sure because I lost my car in certain my my car in Hurricane Sandy, I was 100% sure that we were gonna come back, and this car was just gonna be a couple thousand pound paperweight in front of my garage, right?
00:14:12.950 --> 00:14:13.509
Down the street.
00:14:13.750 --> 00:14:23.190
So lucky, um, and just blessed that like nothing happens to us and none of our none of our stuff was damaged or lost.
00:14:23.430 --> 00:14:28.149
But what comes with my commercial auto policy?
00:14:28.470 --> 00:14:33.590
Does it include flooding and and damage from stuff like that?
00:14:33.750 --> 00:14:43.350
And I know that like you shed some light on some other stuff in the last interlude where like you talked about like wind and and hail and and stuff like that.
00:14:43.430 --> 00:14:50.149
And like, are there certain things that are that are covered under the policy, and then there's certain things that aren't covered under the policy?
00:14:50.389 --> 00:14:54.149
And like, what do I need to be aware of before this next hurricane hits?
00:14:54.310 --> 00:14:56.070
So, you know, we're fully covered.
00:14:56.230 --> 00:14:57.190
Yep, yeah, perfect.
00:14:57.269 --> 00:14:59.110
Well, first of all, thanks for having me again, Steve.
00:14:59.269 --> 00:15:00.070
Appreciate that.
00:15:00.310 --> 00:15:08.149
Yeah, so auto is is very different than like property coverage, like your homeowners, your building, you know, your stuff, things like that.
00:15:08.389 --> 00:15:15.909
So auto and and commercial auto, it really follows the exact same forms as your personal auto policy.
00:15:15.990 --> 00:15:20.070
It's just that your personal auto policy, all of them have a business use exclusion.
00:15:20.149 --> 00:15:23.110
And of course they're priced differently and have different coverage limits.
00:15:23.350 --> 00:15:27.350
But they're essentially essentially the same, you know, forms that they use for both.
00:15:27.509 --> 00:15:34.470
So just speaking broadly to auto in general, personal and commercial, if it's a flood, then you should have coverage for it.
00:15:34.629 --> 00:15:45.830
I mean, honestly, like if you accidentally drive it off the pier into the ocean, you would have coverage for it as long as you carried physical damage, your full coverage is what folks commonly call it.
00:15:45.990 --> 00:16:03.669
But you know, there's two parts to an auto policy: there's liability, and then which is of the third-party coverage, and then there's the physical damage, your comprehensive, which is theft, uh, acts of God, and then collision, which, you know, you smash into something, someone smashes into you, and then your vehicle damage is covered.
00:16:03.830 --> 00:16:21.590
So it's really broad, and frankly, that's why it's really expensive compared to a lot of other policies, is just because like they have to prove that you purposely like set fire to your car or you purposely drove it off of that pier into the ocean to get your insurance money out of it, which is hard to do unless you're blatant about it.
00:16:21.750 --> 00:16:23.110
So it's very broad.
00:16:23.269 --> 00:16:31.190
If your car were to have had damage in the flood, you do carry physical damage, it would fall under your comprehensive deductible.
00:16:31.350 --> 00:16:31.830
Yeah.
00:16:32.070 --> 00:16:40.470
And you'd pay your deductible, and and the you would get the value of the vehicle for basically what Blue Book is, and um, you're off and running.
00:16:40.629 --> 00:16:42.389
So you'd have coverage for that on your car.
00:16:42.710 --> 00:17:01.029
That this just made me think of another situation because you know, all of these new vacuums that we have that are, you know, the riptide and the bottom feeder and the hammerhead, they all come with these fucking, you know, motorcycle slash car batteries, basically, right?
00:17:01.190 --> 00:17:09.509
And like, sure, they come in like a housing that like uh isn't supposed to get wet inside and stuff, but like uh shit happens, right?
00:17:09.829 --> 00:17:15.589
So what happens if you you know, a lot of people have their riptide hanging on the back, right?
00:17:15.669 --> 00:17:20.149
So that wouldn't be too damaging, but some people have the like travel ones, right?
00:17:20.309 --> 00:17:38.309
Where it's just got like a smaller battery and like you can kind of throw it in the back of the truck, and just just like lithium batteries in general, because now like 20 years ago, like there there was no there was no lithium batteries to to be had, you know, so like uh everything was lead acid and a little bit different, right?
00:17:38.470 --> 00:17:44.629
So, how has that kind of changed the landscape for you guys and how you look at just batteries in general?
00:17:44.710 --> 00:17:52.549
And like, what if I have my uh my e-bike in the back of my truck and now the whole truck goes on fire because the battery blows up.
00:17:52.629 --> 00:18:08.629
And you know, sometimes these batteries cause fires, but sometimes they like my one buddy, he had like an e-foil one and it like uh blew up when they weren't in the room, but the whole it didn't cause a fire, but it was like a bomb went off.
00:18:08.789 --> 00:18:09.189
Yeah.
00:18:09.429 --> 00:18:15.829
And like all of the walls were black and stuff, so like it's like I don't think that you would have survived if you were in the room.
00:18:16.069 --> 00:18:16.309
Jeez.
00:18:16.629 --> 00:18:18.869
But it was a really, you know, crazy situation.
00:18:18.949 --> 00:18:35.909
So like what's what's the situation if like you have a total loss of your, you know, with because like that's equipment, like I I would never think that that would happen, but now I don't have a car, and you know, the you guys determined that it was because of the the battery that was in the car.
00:18:36.149 --> 00:18:36.709
Yeah, yeah.
00:18:36.869 --> 00:18:39.990
No, the th there's a there's a handful of of things to that.
00:18:40.149 --> 00:18:51.509
So if you have an e-bike in the back of your truck and and it gets stolen, damaged or otherwise, there wouldn't be any coverage for that under your auto policy.
00:18:51.669 --> 00:19:00.709
Auto auto is gonna cover things that are permanently attached to the vehicle, and they consider anything that's like attached via the trailer hitch in that boat.
00:19:00.869 --> 00:19:06.629
So, like for the hammerhead's in the back and it's attached to the truck, then it's part of the truck.
00:19:06.869 --> 00:19:07.509
Yeah, yeah, yeah.
00:19:07.750 --> 00:19:13.669
If it's just sitting in the back seat on the back seat or on the floor of the back seat, then it's not part of the truck.
00:19:13.909 --> 00:19:18.949
Yeah, you your stuff is not covered under under an auto policy unless it's permanently attached.
00:19:19.029 --> 00:19:24.949
But like, let's say you're towing a trailer, you don't have to buy separate liability insurance for that trailer.
00:19:25.109 --> 00:19:28.949
The liability of the vehicle towing it covers everything that's attached to it.
00:19:29.029 --> 00:19:34.629
So you, if for physical damage, you would have to buy that separately for the actual trailer value.
00:19:34.789 --> 00:19:48.229
But if you like, if you backed into somebody in the parking lot and your hammerhead or your riptide ended up causing damage to the car, like that would be covered under, you know, your your auto policy because they consider that permanently attached.
00:19:48.469 --> 00:20:01.189
Your stuff is going to be covered under either a homeowner's policy or an inland marine policy, is what they call it, or an equipment floater is a separate policy for commercial purposes.
00:20:01.429 --> 00:20:21.509
So, so yes, and you know, if if if if the lithium battery ended up causing a fire and burned down the car, they would not cover the cost of the e-bike that started the fire, but they would cover your vehicle damage as long as you carried comp and collision, your full coverage, your physical damage coverage.
00:20:21.669 --> 00:20:26.149
Um, that wouldn't negate coverage, even though it's your stuff that caused the fire.
00:20:26.789 --> 00:20:33.589
As long as you didn't do it on purpose and they can and they can prove you did it on purpose, then it's very broad and that would be covered for sure.
00:20:33.829 --> 00:20:37.909
You know, the the other the other things to consider, like pollution is a good example.
00:20:38.069 --> 00:20:43.829
Like our general liability policy has uh$50,000 for pollution slash hazmat.
00:20:44.069 --> 00:20:53.109
So if you like have an accident and you've got like liquid chemicals or any chemicals in the back of your car, because a standard auto auto policy always excludes that.
00:20:53.349 --> 00:21:06.869
So, you know, the only time that you know, if you flip your car and you've got oil and gasoline and stuff is like leaking into a storm drain, that would be covered under your auto because it's part of what's permanently attached to the auto.
00:21:06.949 --> 00:21:20.709
But if you f if you flip over, someone hits you and spill a bunch of chlorine tabs into the gutter, you know, like and they send hazmat out to clean it up, then you know, that would not be covered under a standard auto policy, like any of them, period.
00:21:20.869 --> 00:21:24.389
No companies were going to cover pollution uh because you're carrying stuff.
00:21:24.469 --> 00:21:26.469
So what do you there's ways to address it?
00:21:26.709 --> 00:21:29.029
Yeah, what do you have to do to get that?
00:21:29.269 --> 00:21:30.629
And do we have that?
00:21:30.949 --> 00:21:38.949
Yeah, so you can get a separate standard, you can get a policy for anything, but yes, you can you can get a separate pollution policy if you've got major concerns with that.
00:21:39.029 --> 00:21:46.309
Like our general liability policy for your business that we have you insured under, it has a separate limit, special limit in there.
00:21:46.389 --> 00:21:49.829
It's an endorsement that will cover up to 50 grand for hazmat cleanup.
00:21:49.909 --> 00:22:02.469
And we have paid several of those claims out over all these years where you know, like they're quick, especially you you get in states like California and some others where like they're gonna send out the hazmat team, EPA, Coastal Commission, like you're stroke.
00:22:03.189 --> 00:22:04.709
You can get an all or check before you look at it.
00:22:07.029 --> 00:22:07.909
Yep, for sure.
00:22:08.069 --> 00:22:22.949
So, you know, some policies are gonna give you that endorsement or give you the ability to add that on via rider to have pollution coverage while you have, you know, pool chemicals and transport, but your auto will never cover that under a standard auto, whether it's personal or commercial.
00:22:23.029 --> 00:22:25.429
So you want to make sure it's addressed one way or the other.
00:22:25.669 --> 00:22:26.069
Right.
00:22:26.309 --> 00:22:27.990
Because that's likely to happen, right?
00:22:28.309 --> 00:22:31.990
Auto accidents are the most common claims out of all types of insurance.
00:22:32.069 --> 00:22:38.389
And so the ones that we paid out on, our guy was hit and you know, it was just chemicals spilled out.
00:22:38.469 --> 00:22:47.109
They were hit, but you know, because if even though it wasn't his fault, their other pol the person who hit him's auto policy isn't going to cover pollution.
00:22:47.269 --> 00:22:51.509
His policy wouldn't have covered pollution, and so you know, our policy stepped in and covered it.
00:22:51.990 --> 00:22:52.709
Wait, wait, wait, though.
00:22:53.269 --> 00:23:01.990
So now you hit me and you don't have the insurance to cover the shit that I just spilled.
00:23:02.309 --> 00:23:02.709
Yeah.
00:23:03.189 --> 00:23:06.469
And I don't have the insurance to cover the shit that I just spilled.
00:23:06.949 --> 00:23:08.309
Sounds like you're getting sued.
00:23:08.709 --> 00:23:09.829
Yeah, a hundred percent.
00:23:09.990 --> 00:23:13.189
And that's why that's the next step in this?
00:23:13.429 --> 00:23:14.709
B both of you would.
00:23:14.789 --> 00:23:15.029
Yeah.
00:23:15.109 --> 00:23:24.789
The city or the whoever the entity, the the state, city, whatever, the county, um, they would go look to recoup for the money spent on the hazmat cleanup for sure.
00:23:24.949 --> 00:23:35.349
So that's why what happened in this in this particular one, our insured was hit, caught that didn't cause the spill, but spilled because he was carrying the pool the pool chemicals.
00:23:35.669 --> 00:23:37.109
And he had insurance for that, though?
00:23:37.349 --> 00:23:39.509
He had insurance under our general liability.
00:23:39.589 --> 00:23:41.669
So they're like, someone's gonna pay for this.
00:23:41.750 --> 00:23:45.909
So our insurance company likely came back to the person who hit him.
00:23:46.069 --> 00:23:55.829
They stroke the check for 50 grand, got it paid, and then they go back with their team and they go try to get their 50 grand back from the person who caused the accident, is essentially how that works.
00:23:55.990 --> 00:23:59.990
So I I didn't hear if they did or not, but our insured was covered.
00:24:00.069 --> 00:24:02.549
They stroked the check and he was free and clear.
00:24:02.789 --> 00:24:03.589
Got it.
00:24:03.990 --> 00:24:17.109
So, and most of the time, I would assume pulling back the curtain a little bit, you go back to this person who hit them, and you're probably gonna settle and take less than 50 grand.
00:24:17.509 --> 00:24:25.029
If anything, but it's the insurance company's fault problem if if you have coverage for it, you don't have to it's not my problem anymore.
00:24:25.109 --> 00:24:29.909
I'm just I'm just trying to look at you know the inner workings of what you guys are doing on the back end, right?
00:24:29.990 --> 00:24:35.189
Because obviously, you know, you want that money back, but that person doesn't have the insurance for it.
00:24:35.349 --> 00:24:40.549
Like, yeah, how would you go about without divulging too much?
00:24:40.629 --> 00:24:41.269
You know what I mean?
00:24:41.349 --> 00:24:48.629
Like you're gonna send them to collections because like if collections was calling me about that shit, I would be like, All right, dude, like see you later.
00:24:49.109 --> 00:24:49.990
Like, I'll get a lawyer.
00:24:50.069 --> 00:24:52.389
Like, I'd be like, This doesn't sound like my fucking problem, you know?
00:24:52.549 --> 00:24:53.269
Yeah, yeah.
00:24:53.349 --> 00:24:58.949
Um but now you gotta hire a lawyer, and then you know the lawyer probably comes back and says, Hey, this is pretty serious.
00:24:59.349 --> 00:25:04.949
They'd probably they'd probably settle, or if there's nothing there, then they walk away and just eat the 50 grand, the insurance company gets it.
00:25:05.109 --> 00:25:07.269
No, and I'm I'm sure it could happen both ways, I guess, right?
00:25:07.349 --> 00:25:09.589
So it just really depends on on the situation.
00:25:09.909 --> 00:25:20.789
But but just like to put a bow on that, like 99% of of coverage like would not kick in 99% of the people out there who had this accident.
00:25:20.949 --> 00:25:26.149
Like, it it just it's always excluded from pollution's excluded from all general liability.
00:25:26.309 --> 00:25:30.549
Pollution out of the back of an auto is excluded under every auto policy.
00:25:30.629 --> 00:25:39.349
So if you don't have a specific rider or a separate pollution policy, it's like it's highly unlikely that that there's any coverage that would kick in under any circumstance.
00:25:39.429 --> 00:25:41.990
So talk to your insurance agent and make sure you got coverage.
00:25:42.309 --> 00:25:43.669
Well, this is spicy, right?
00:25:43.750 --> 00:25:47.269
Because like uh I I have that coverage for me.
00:25:47.429 --> 00:25:48.149
Yeah, right.
00:25:48.469 --> 00:25:51.750
So and that's under our general liability or no?
00:25:51.829 --> 00:25:53.429
Do we have to have we have a separate right policy?
00:25:53.669 --> 00:25:55.189
Nope, it's under your general liability.
00:25:55.269 --> 00:26:01.909
Our our our our service program policy, it includes that sublimit because it's such a it's such a relevant.
00:26:02.309 --> 00:26:05.990
Because now I'm just thinking about like my like the guys that I work with on the road, right?
00:26:06.069 --> 00:26:09.589
Because they all have insurance through you as well, too, because they're 1099s.
00:26:09.990 --> 00:26:16.869
And it's kind of silly for like me to have it if they're out there with like I don't go out with chemicals that often anymore, you know.
00:26:17.189 --> 00:26:21.829
When I do, it's it's like it's like one case of chlorine, it's not like 12 cases of chlorine.
00:26:22.469 --> 00:26:22.709
Yeah.
00:26:22.869 --> 00:26:28.469
Um, so for you know, my thestol process is stuff, they get into an accident or somebody hits them to make sure that that they're covered too.
00:26:28.549 --> 00:26:29.029
So that's good.
00:26:29.589 --> 00:26:30.149
That's part of that.
00:26:30.469 --> 00:26:32.389
The nice part is that it comes included.
00:26:32.469 --> 00:26:37.750
Like, even if you wanted to remove it, it wouldn't change the price by a cent from our general liability policy.
00:26:37.909 --> 00:26:51.029
If you were in a position where you had a GL policy that didn't have that sublimit, that 50 grand for pollution, and you were thinking about buying a separate one, you know, then for sure you just got if you don't do that very often, then I would say don't buy the extra policy.
00:26:51.189 --> 00:26:56.469
But for years, you know, we felt like it was important to just include it in the normal standard coverages.
00:26:56.549 --> 00:27:03.429
And so, yeah, you're you're no one's paying extra for it, but it is included because it is, you know, it's yeah, not all the time, but it's not in three.
00:27:04.069 --> 00:27:07.269
But you keep saying that it's not included, so I just wanted to make sure.
00:27:07.429 --> 00:27:10.229
Because in most policies, it's it's not, you know.
00:27:10.709 --> 00:27:10.949
Correct.
00:27:11.429 --> 00:27:20.789
That's the great thing about California Pool Association for me is that you know, every time we do this, there's not too many times where Pat will come back and tell me, oh, you would need to add this on.
00:27:20.869 --> 00:27:35.349
Um, you guys are pretty well versed in what what the pool guy does and the you know the trials and tribulations of the things that that may happen to you when you're in someone's backyard and on the road, and obviously we have you know toxic chemicals that are you know don't can't be mixed with each other.
00:27:35.589 --> 00:27:45.109
And the state and local authorities, they they don't want this stuff going into our waterways and the sewers and stuff, so that's why they have these hazmat people come out.
00:27:45.269 --> 00:27:49.750
So, Pat, thank you so much for shedding some light on this today because I think that this was pretty eye-opening for everybody.
00:27:49.990 --> 00:27:59.829
So, you know, if you guys aren't with California Pool Association, I definitely implore you to go and talk to your insurer and make sure that this is part of your policy.
00:28:00.069 --> 00:28:07.829
And if it's not part of your policy, I would love for you to reach out to California Pool Association because that is something that they include.
00:28:07.909 --> 00:28:13.829
And not only do they include that, they include uh, you know, a bunch of other things in there as well, too, which we've talked about on previous shows.
00:28:14.069 --> 00:28:22.709
So if you reach out to them and you come on board for an annual policy, they will give you a one-month, one-month break if uh you mention the Talking Pools podcast.
00:28:22.869 --> 00:28:24.709
So, Pat, thanks so much for being here.
00:28:24.789 --> 00:28:26.389
And guys, thanks so much for listening.
00:28:26.469 --> 00:28:29.990
This is the Insurance Interlude, and we will talk at you next week.
00:28:30.389 --> 00:28:31.349
Thanks, Steve.
00:29:14.869 --> 00:29:21.189
Um venues uh sources, but uh Leslie's you say that word, and either people go, yay, or uh.
00:29:21.829 --> 00:29:35.109
Um Leslie's is um now I might not be using the wording carefully because I'm not a an attorney or anything like that, but they're they're in a kind of bankruptcy, bankruptcy where they reorganize and things like that.
00:29:35.269 --> 00:29:38.469
They're closing what was Steve, 250 stores?
00:29:38.869 --> 00:29:42.229
So it could be it could be up to 250 stores.
00:29:42.549 --> 00:29:49.349
I think that they're going so basically they filed, they officially filed or are going to file for chapter 11 bankruptcy.
00:29:49.429 --> 00:29:49.750
That's it.
00:29:49.990 --> 00:29:56.629
And what that means is they're not closing, they're not closing the brand, they're just going to be restructuring their money.
00:29:56.789 --> 00:30:02.949
And now the lenders are actually going to be in control of the money and where it goes.
00:30:03.189 --> 00:30:13.750
So I think what what that kind of does is it relinquishes them saying, Oh, we we really like that store in that area because of whatever.
00:30:13.909 --> 00:30:20.309
And they're like, Well, the numbers don't like that store's closing because they don't make enough revenue, is really what it count to.
00:30:20.549 --> 00:30:30.949
So they're gonna go, and they did this already, I guess it was like two years ago, because uh I work, I shop at one of the local Leslie's here, and there were three of them in that same town.
00:30:31.109 --> 00:30:34.469
I think two of them have closed, so this is like the commercial center that's there.
00:30:34.629 --> 00:30:36.629
So that's the only one that's open now.
00:30:36.869 --> 00:30:49.269
But there was a point where they like changed around management, and there was like a manager there the one day doing like inventory, and they basically were like, Hey, they just informed us today.
00:30:49.429 --> 00:30:55.750
We just want you to know that like we can't do any price matching because I'm always going to them, being like, Hey, can you price match this?
00:30:55.829 --> 00:30:58.869
I need this right now, but I can buy it here for this.
00:30:59.189 --> 00:31:00.469
Will you give it to me for that?
00:31:00.629 --> 00:31:07.029
And if they say no, I just say, Okay, cool, you can have it back, and I'm gonna go to the store where I can get it cheaper and just buy it at that store.
00:31:07.109 --> 00:31:07.429
Yeah.
00:31:07.589 --> 00:31:12.069
So they basically prepared me for that because they were like, We know you do a lot of the price matching stuff.
00:31:12.229 --> 00:31:14.469
They were like, Those days are kind of over.
00:31:14.629 --> 00:31:27.589
And now, about six months ago, they actually said, Oh, hey, like, we do want you to start buying these filters from us in bulk, and we do want you, we do want your business back for the hilarious vacuums and stuff.
00:31:27.829 --> 00:31:31.509
And I was like, Okay, cool, but like I need I need you to price match for me.
00:31:31.589 --> 00:31:32.629
And they were like, Okay, cool.
00:31:32.709 --> 00:31:33.990
And they they started doing it again.
00:31:34.069 --> 00:31:39.990
So I want I'm not apprehensive to see, but I'm just I I want to see like worried, yeah.
00:31:40.789 --> 00:31:58.549
Yeah, I mean, like, it's not that it's not that I'm so much worried like for our business, because like we're still gonna go and buy stuff from where SCP or Heritage or you know, insert whatever big, big, big box vendor, you know, wholesaler and distributor that you're gonna that you want to, and we're gonna go buy from them.
00:31:58.869 --> 00:32:04.789
But I really like the fact that Leslie's is in the the game, you know.
00:32:05.029 --> 00:32:19.029
Not only that, like they I just think part of the problem is like uh just like every time I go to a different branch of the same company, and let's just say pool corp, because they're the biggest one, right?
00:32:19.269 --> 00:32:24.629
So there's pool corp branches, literally, there's 11 of them in Southern California.
00:32:24.789 --> 00:32:36.709
So if I needed to find something, like a heater part or like a sometimes I'll have to go find like these weird, we just had to go find a five horsepower housing, like a front end of a pump, like a wet end of a pump.
00:32:36.869 --> 00:32:42.389
And that's not like something that everyone has sitting on the shelf because it's it's actually high voltage and all that stuff.
00:32:42.709 --> 00:32:57.189
So, you know, we went and drove to where we had to go pick it up, and we're just so accustomed to being at our local, you know, branch where we walk in, we know everybody, we, you know, we teach classes there.
00:32:57.429 --> 00:33:05.429
So like I can and that was one of the things that I didn't really like about um when I was like in the mix doing pools all the time.
00:33:05.589 --> 00:33:20.709
I would have to strategically go to the distributor at a certain time because if I showed up when they first opened up, I could be there for 50 minutes, you know, an hour, an hour and 10 minutes, because there's there's six guys that are there in front of you.
00:33:20.789 --> 00:33:22.309
Like that's when everybody's starting their day.
00:33:22.389 --> 00:33:23.269
They're there at 6 a.m.
00:33:23.509 --> 00:33:24.709
If they open up at 6 a.m.
00:33:25.029 --> 00:33:33.909
So I would strategically like leave space in my truck, but bring enough for my first couple pools, and I'd like head in that general direction.
00:33:34.149 --> 00:33:41.269
And then like in the middle of the day, when there was a bit of a dip point, I would go in and uh, you know, buy my stuff.
00:33:41.349 --> 00:33:47.189
And then I was able to like kind of and then like when I was promoting the classes, I would sit there and I would be like, Okay, cool.
00:33:47.429 --> 00:33:50.149
And then I asked them, I'm like, What's what's like your busy time?
00:33:50.229 --> 00:33:55.109
And it's like the beginning of the day and like right after lunchtime, you know, those are their their busiest times.
00:33:55.349 --> 00:33:55.750
Yeah.
00:33:55.990 --> 00:34:12.949
Regardless, you know, Leslie's, you know, you can't as a as a homeowner who has a pool, you don't have the option to go to to SCP or to Heritage or to the old PEP or Gorman or any of these places, right?
00:34:13.110 --> 00:34:21.670
Like you have to go to Leslie's, or you have to go to, you know, there's this one place that I always used to go to in Jersey.
00:34:21.750 --> 00:34:24.869
It was like called Jersey Chemical in in Patterson, New Jersey.
00:34:25.110 --> 00:34:27.110
Yeah, there's a number of independent ones around.
00:34:27.510 --> 00:34:27.750
Right.
00:34:27.829 --> 00:34:37.510
No, but I would always cringe when I would go there because like uh you'd be buying a part at like full retail plus 10%.
00:34:38.309 --> 00:34:48.710
You know, where like if you went to the distributor and you looked at this price and it was a$20 piece, like you could expect that it would be a$70 piece at this, yeah, you know, this independent distributor.
00:34:48.869 --> 00:35:02.150
And I'm not ragging on the independent distributors, everybody's got to put money in their pocket, and you know, as it goes down the line of you know, transfers and sales and stuff, people need to make their money, which I'm I'm totally fine with.
00:35:02.390 --> 00:35:25.110
But now we're kind of locking out the homeowner, yeah, you know, and where there used to be a lot of people have called me and I'm like, okay, you know, you it sounds like you you don't need my services, but what you should do is you should go down to your local Leslie's and have them test your water for you, and then I'll go over with them.
00:35:25.269 --> 00:35:29.349
If these levels are high, you want to just drain your pool, and sometimes it's better to just start over.
00:35:29.750 --> 00:35:43.910
And they're like, Oh, yeah, there used to be a Leslie's over here on uh, you know, southern and western or whatever, but like uh they closed and now the let the the closest Leslie's is 20 minutes away, or the closest Leslie's is 15 minutes away.
00:35:44.309 --> 00:35:51.190
Now where I live, I there used to be five Leslie's branches within a 10 mile radius.
00:35:51.510 --> 00:35:51.750
Right.
00:35:51.910 --> 00:35:53.269
And how many are there now?
00:35:53.750 --> 00:35:55.510
Two that I that I know of.
00:35:55.829 --> 00:36:17.829
But I I wanted to bring in a little bit of a different perspective and as a manufacturer, as a former manufacturer, is that when when Leslie's kind of emerged in the industry, I know that that Taylor, for example, was very hesitant to get on board with them because they weren't sure if if it was gonna work or not.
00:36:17.990 --> 00:36:23.750
Uh, a couple years after that, they approached us to a private label, and you might have seen it when you go to the book.
00:36:23.990 --> 00:36:26.950
Those are that's I mean, that's the most lucrative thing that you can do, right?
00:36:27.030 --> 00:36:28.230
I think that's what we did.
00:36:28.789 --> 00:36:37.829
Because that's you know, hey, you're just we're gonna do the same thing, we're gonna sell it to you, and you're gonna sell it as your own brand.
00:36:38.070 --> 00:36:38.550
Right.
00:36:38.789 --> 00:36:40.789
But everybody makes money, you know what I mean?
00:36:41.110 --> 00:36:49.829
So you're not having you're not actually having to do any of the legwork of the sales, you're just putting it on their shelf and then bam, it's selling itself, right?
00:36:49.990 --> 00:36:50.550
So right.
00:36:50.789 --> 00:36:59.670
And and and and realistically, when a Leslie's uh order came in, it was like 20, 25 pages thick.
00:37:01.030 --> 00:37:02.789
Dude, there's a lot remote.
00:37:03.829 --> 00:37:09.349
All she did all day long was enter Leslie's orders until it became automated a while ago.
00:37:09.670 --> 00:37:27.030
But my my point was that uh as a manufacturer, situations like that that the the order is so big that basically you have to stop everything else you're doing and do that order by whatever date they needed to be done.
00:37:27.110 --> 00:37:32.870
It was a significant amount of time on the manufacturer's part to get it out the door.
00:37:33.510 --> 00:37:33.990
Of course.
00:37:34.230 --> 00:37:38.390
So so we we we loved and we hated Leslie's orders.
00:37:38.630 --> 00:37:43.510
You know, we knew what money was coming in, but we knew the time it took to get them out.
00:37:43.829 --> 00:37:47.910
So it and and tied into that is shipping and and all that other stuff.
00:37:48.309 --> 00:38:01.510
But you would say that that was a very successful partnership between both Leslie's and Taylor because they're still sitting on the shelf today in the in the famous blue box, right?
00:38:01.590 --> 00:38:06.710
So now now I don't know what specifically, if anything, has changed.
00:38:06.950 --> 00:38:10.550
Because remember, I left in September of 2022.
00:38:10.950 --> 00:38:11.670
Sure, yeah, of course.
00:38:13.670 --> 00:38:16.150
Things are always gonna, you know, things are always gonna change.
00:38:16.230 --> 00:38:17.829
But uh Yeah.
00:38:18.309 --> 00:38:23.110
It's uh it it's uh, you know, you you love to be in bed with them, but kick them out.
00:38:23.510 --> 00:38:26.150
Or you know, you notice little things about them.
00:38:26.550 --> 00:38:29.670
But um Leslie's as very good to Taylor.
00:38:29.750 --> 00:38:50.550
They were they were as far as uh they weren't a true what we called back then full stocking distributor, because to us a full stocking distributor, we went by then it was NSPI guidelines, which means that at least I believe it was 70% of their business was commercial, right?
00:38:51.190 --> 00:38:52.470
Not open to the public.
00:38:52.789 --> 00:38:54.550
I know that's changed a little bit.
00:38:54.710 --> 00:39:02.070
I don't know what the specific numbers are, but Leslie's had its had its own discount structure above and beyond anybody else.
00:39:02.390 --> 00:39:03.190
Of course, yeah.
00:39:03.510 --> 00:39:06.950
And that's just because on the back end they're they're a whale, right?
00:39:07.110 --> 00:39:12.870
So like you give you give whales bigger discounts, obviously, and the more you buy, that's with anything.
00:39:13.030 --> 00:39:22.789
Like I I saw these really cool tents when I went to a weekend concert, you know, not too long ago, and this guy was like, Oh, he's like, I can get them manufactured in China, and basically they're the same thing as shift pods.
00:39:23.110 --> 00:39:24.230
And I was like, Oh, cool.
00:39:24.309 --> 00:39:25.829
And like, I was like, I want to know more about that.
00:39:25.910 --> 00:39:43.190
And like he sent me like the pricing structure sheet, and like, you know, if you bought 50 of them, the shipping was pretty significant, but if you bought 500 of them, the shipping fell off a cliff, you know, so it's like it's almost non-existent at that point because now you're filling up the you know the pallets themselves.
00:39:43.510 --> 00:39:58.550
My you know, my my biggest thing with with this happening with Leslie's, like I said, is that you know it's just taking a big player out of the game, and I think that allows the other big players in the game to now charge more.
00:39:58.789 --> 00:40:00.070
Well, that was my next one.
00:40:00.309 --> 00:40:08.789
It's really what it comes down to, like what happens to pricing with uh you know, with all of this, and and how does that affect you know, how does that affect that?
00:40:09.190 --> 00:40:16.309
And what happens if, God forbid, and it's and it's very conceivable, Leslie's closes up.
00:40:17.110 --> 00:40:20.789
All the stores are closed, I mean everything's completely liquidated.
00:40:20.950 --> 00:40:45.110
Now, granted, there'll be a lot to happen if that if I think that someone with someone with capital would come in and be like, look, we're gonna buy your debt and we're gonna buy the company and we're gonna restructure it or or whatever, but like uh it's too big of a market share to be left on the table for all of independent distributors.
00:40:45.269 --> 00:40:46.150
There's not enough.
00:40:46.710 --> 00:40:49.110
There's just not enough of them out there, right?
00:40:49.190 --> 00:40:53.829
For them to be taking care of the the type of pool, the the amount of pools.
00:40:54.070 --> 00:40:59.829
So like maybe they maybe Leslie's now becomes like in and out.
00:41:00.390 --> 00:41:06.710
Like you can only get you can only get it in Southern California, in Arizona, in Texas, in Florida.
00:41:06.950 --> 00:41:09.269
Like maybe they move out of Idaho.
00:41:09.430 --> 00:41:13.110
And uh they're in Chatsworth, isn't isn't that the main location?
00:41:13.269 --> 00:41:14.230
Yeah, Chatsworth.
00:41:14.710 --> 00:41:15.349
I think so, yeah.
00:41:15.430 --> 00:41:25.510
So but they're in they're in a bunch of different places, and like, but just maybe, you know, they're gonna close a bunch of stores, but like uh I mean it's gonna hurt.
00:41:25.670 --> 00:41:28.309
It's gonna hurt in some way or another.
00:41:28.390 --> 00:41:33.190
I just hope that one, they they don't you know liquidate and get and go bye-bye.
00:41:33.430 --> 00:41:43.430
And your scenario of an investor coming through to kind of they've got 850 to 860 stores that are open in America right now.
00:41:43.750 --> 00:41:58.230
So two to two fifty, I mean it's it's significant, but again, like I know here just in my local locale, there's two of them here in Torrance that are up the street from each other.
00:41:58.630 --> 00:42:00.150
They closed the third one already.
00:42:00.230 --> 00:42:04.070
There was another one that was like the town over in Huntington Beach.
00:42:04.230 --> 00:42:11.430
There's there's two or three of them that are you know kind of like spread out through Costa Mesa, and like you know, it's just in the next town.
00:42:11.510 --> 00:42:16.870
So it's like maybe instead of them being Starbucks, where they're on every corner.
00:42:17.269 --> 00:42:18.470
Well, Starbucks, yeah.
00:42:19.110 --> 00:42:20.070
Well, it's just here.
00:42:20.230 --> 00:42:24.309
Starbucks is uh, you know, every single it's kind of like where you're at, where Dunkin' Donuts is, right?
00:42:24.390 --> 00:42:29.430
Like exactly you can't go two miles without seeing uh seeing a Dunkin' Donuts.
00:42:30.070 --> 00:42:41.190
So I just think that they're you know Jersey Mike's is on the the uptrend with they want to double their stores and stuff, but it just comes down to to revenue, right?
00:42:41.269 --> 00:42:50.870
And like if you if you're not making enough revenue and you're a publicly traded company, they don't give a shit about how many stores they need to close.
00:42:51.110 --> 00:43:08.230
Like they just want they want the stockholders to to get their money, and the only way that the stockholders get money is if they get dividends and the company is actually clearing money, because if the company's not clearing money, then no one's getting extra money and your stock price is plummeting.
00:43:08.470 --> 00:43:12.950
But you could also be like Jersey Mike's right now, like their stock is terrible right now.
00:43:13.110 --> 00:43:13.430
Yeah.
00:43:13.750 --> 00:43:17.510
They started off at like 26 bucks or something, I think it's at like eight now.
00:43:18.550 --> 00:43:20.710
So I'm glad I bought into that right at the beginning.
00:43:21.030 --> 00:43:21.990
It'll go back out.
00:43:22.309 --> 00:43:23.510
It'll go back out.
00:43:24.309 --> 00:43:24.950
Wild.
00:43:25.430 --> 00:43:28.390
This episode is brought to you in part by Pool Brain.
00:43:28.630 --> 00:43:35.110
Pool Brain gives pool professionals the tools to run smarter, more efficient, and more profitable service businesses.
00:43:35.349 --> 00:43:37.430
Check them out at PoolBrain.com.
00:43:37.670 --> 00:43:39.269
Breaking news from Leslie's.
00:43:39.430 --> 00:43:49.670
In a press release dated September 30th, 2026, Leslie's announced a strategic transaction to strengthen its financial foundation and position the company for the future.
00:43:49.910 --> 00:44:00.070
The company has entered into a restructuring support agreement to eliminate approximately 90% of its debt and secure$150 million in new capital.
00:44:00.309 --> 00:44:07.349
That includes$90 million in new money debtor in possession financing and$60 million in equity financing.
00:44:07.590 --> 00:44:18.309
With support from more than 80% of its existing lenders, Leslie's has initiated a prearranged restructuring process to implement a financial and operational reorganization.
00:44:18.550 --> 00:44:23.030
According to the company, operations will continue in the ordinary course.
00:44:23.269 --> 00:44:29.990
Customers will continue to receive the products, solutions, and service they rely on for their pool and spa care needs.
00:44:30.230 --> 00:44:32.309
The press release is as follows.
00:44:32.630 --> 00:44:39.510
On September 30th, 2026, Leslie's incorporated the largest and most trusted direct-to-customer brand in the U.S.
00:44:39.590 --> 00:44:52.230
pool and spa care industry, serving residential customers and pool professionals nationwide, today announced that it has entered into a restructuring support agreement with a group of its existing lenders.
00:44:53.349 --> 00:45:03.510
Agreement lays the groundwork for transactions that will significantly strengthen the company's capital structure, rationalize its retail operational footprint, and create greater financial flexibility.
00:45:03.750 --> 00:45:11.030
This will support reinvestment in the business and a continued focus on operating execution of its strategic transformation.
00:45:11.269 --> 00:45:19.190
The restructuring support agreement includes commitments for$90 million of new money, debtor in possession financing, and$60 million of equity financing.
00:45:19.349 --> 00:45:23.990
The equity financing is fully backstop by certain parties to the agreement.
00:45:24.230 --> 00:45:33.670
It also includes a reduction of approximately$685 million or 90% of the company's outstanding funded debt.
00:45:33.910 --> 00:45:54.630
With a stronger financial foundation, a deliverage balance sheet, an optimized store footprint, and liquidity to further invest in the business, Leslie's will be well positioned to reinvest in its operations, enhance the customer experience, and continue serving customers with the service, expertise, and solutions that make Leslie's the best choice for pool and spa owners.
00:45:54.789 --> 00:46:08.630
To implement the restructuring transactions contemplated by the agreement as efficiently as possible, Leslie's filed voluntary petitions for pre-arranged Chapter 11 cases in the United States bankruptcy court for the Southern District of Texas.
00:46:08.789 --> 00:46:20.309
Upon emergence, the company expects to be under the majority ownership of a group of its existing lenders who support Leslie's mission to deliver unparalleled expertise, service, and innovative solutions for its customers.
00:46:20.470 --> 00:46:27.190
Leslie's expects to move through this process efficiently with the goal of emerging from Chapter 11 in early 2027.
00:46:27.510 --> 00:46:36.789
Jason McDonnell, Chief Executive Officer of Leslie, said today's announcement marks an important milestone in our commitment to our customers and our business.
00:46:36.950 --> 00:46:48.789
With a stronger balance sheet and greater financial flexibility, Leslie's can reinvest across the business to strengthen operating execution and deliver an even better experience for our customers, both in-store and online.
00:46:49.269 --> 00:47:00.309
Leslie's is here to stay, and I am deeply grateful to our employees, customers, and partners for their continued support as we work to position Leslie's for a strong future.
00:47:00.630 --> 00:47:09.750
Importantly, Leslie's remains fully operational and committed to serving customers without interruption, including through its physical stores and digital platforms.
00:47:09.910 --> 00:47:20.309
As a part of its ongoing efforts to strengthen operating performance, Leslie's continues to evaluate opportunities to better align its store network with customer demand and long-term business objectives.
00:47:20.470 --> 00:47:25.910
In connection with this evaluation, Leslie's Today announced the closure of 76 stores.
00:47:26.150 --> 00:47:32.070
All remaining stores outside of those that were recently closed remain open and fully operational to serve customers.
00:47:32.230 --> 00:47:40.550
Through the Chapter 11 process, Leslie's will continue to evaluate its real estate portfolio to better align its footprint with the long-term needs of the business.
00:47:40.789 --> 00:47:45.910
Leslie's will continue operating in the ordinary course of business throughout the Chapter 11 process.
00:47:46.070 --> 00:47:54.950
It remains committed to honoring its obligations to employees, partners, and vendors and delivering for its customers without disruption.
00:47:55.110 --> 00:47:58.390
The company has filed a number of customary first day motions.
00:47:58.550 --> 00:48:11.910
Upon approval by the court, these motions will enable Leslie's to continue to pay employee wages and benefits as usual, maintain customer programs, honor obligations to vendors, and obtain other relief measures common in these circumstances.
00:48:12.150 --> 00:48:16.390
All gift cards and loyalty program benefits will continue to be honored.
00:48:16.550 --> 00:48:28.630
To fund operations without disruption during the Chapter 11 process, Leslie's has also filed a motion seeking approval of the$90 million debtor in possession facility from a group of its existing lenders.
00:48:28.789 --> 00:48:39.590
It is also seeking approval of a fully committed$225 million debtor in possession asset-based financing facility from its existing asset-based lending leaders.
00:48:39.750 --> 00:48:48.150
Upon court approval, these financing arrangements will provide sufficient liquidity to support the company's operations throughout the chapter 11 process.
00:48:48.390 --> 00:48:58.470
Additional information regarding Leslie's Chapter 11 cases, including court filings and other documents related to its proceedings, is available through the company's claims agent, Kroll.
00:48:58.630 --> 00:49:08.470
The website is restructuring.com slash Leslie's pool.
00:49:08.710 --> 00:49:21.269
Stakeholders with questions can contact Kroll by calling eight four four four zero eight three three nine seven in the United States or in Canada.
00:49:56.150 --> 00:49:57.910
So gang.
00:49:58.470 --> 00:50:05.910
If you have any uh stories that are related to what we just talked about, you know, Leslie's you know, independent stores, things like that.
00:50:05.990 --> 00:50:13.110
Or if you have any ideas for suggestions or ideas or comments or whatnot, please send them to talkingpools at gmail.com.
00:50:13.430 --> 00:50:21.590
We will get them, we will look at them, and if we if we can use them when we broadcast, we'll send you a little present as a thank you.
00:50:22.230 --> 00:50:24.150
Steven, thank you, as always.
00:50:24.390 --> 00:50:26.390
Be safe out there on the west side of things.
00:50:26.470 --> 00:50:32.150
And I'll try to not you know wash away, be washed away by the ocean anytime real soon.
00:50:32.710 --> 00:50:34.230
We all gotta worry about that right now.
00:50:34.309 --> 00:50:35.670
So jeez.
00:50:36.070 --> 00:50:37.590
Okay, well, take care, guys.
00:50:37.750 --> 00:50:39.110
Uh, we'll talk at you soon.
00:50:39.510 --> 00:50:39.829
Take care.
00:50:40.150 --> 00:50:40.630
Bye bye.
00:50:41.030 --> 00:50:41.590
You too.
