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I am pleased to announce that Cactus Valley Pool Supply has been selected for the 2009 Best of Mesa Award in the Swimming Pool Chemicals & Equipment category by the US Commerce Association. Cactus Valley Pool Supply Opens a Store in Maricopa, Arizona, July, 2006 The Franchise Guys, Pool & Spa NEWS, June 5, 2006 “If you give old-fashioned customer service, the customers will continue to come back,” Aaron said. The 31 year-old brothers started their pool service company in1997. They gained experience from watching and working with service pros. “With one friend,” Aaron recalled,” we got free training, and she got someone to push the pole.” To help publicize their fledgling business, they distributed flyers—and spread the word about their dedication to customer service. In just two years, they had 250 accounts. In April, 2000, Aaron and David opened their retail store, Cactus Valley Pool Supply, in Mesa, Ariz. It took off right away, and by 2002 they had two more in the works. The first store was across the street from the No. 1-grossing Wal-Mart. “The draw at the intersection was huge,” Aaron said. From that point on, they made sure every store was in a prime location. The Hagen brothers started selling franchises because they had a product that worked. Their stores are scaled down to avoid spending money on extra warehouse space. The largest outlet is only 1,400 square feet. “Having our inventory streamlined made it a good business model for us,” Aaron said. He and David also are careful to include an in-store “lab” for water testing in their store layouts.
Once a new franchisee joins the team, he or she receives intensive training. The Hagens note that their first franchisee did not know much about the pool business, yet things went so well that he’s gearing up to open a second store. These days the brothers are concentrating on selling franchises. David estimates they’ll have 10 or 11 stores by next summer. The work is taxing, but they’re pleased with the results. “Being the fastest-growing pool supply store chain is a lot of work, and we manage it well with the irreplaceable employees we have,” he said. “We’ve got a good thing going.” The Mesa Republic, May 26, 2006 Each store is equipped with a camera system that allows employees to communicate about parts, for instance, or let management check in. David happened to look in on a franchise store a couple of Sundays ago and realized they were short-staffed, so he hopped in his truck and finished the afternoon working alongside other employees. That sort of diligence and attention to detail is part of the Hagen's recipe for success. The stores' computerized water testing equipment is unique, reliable, and keeps customers coming back, Aaron said. While some of their competitors have larger stores, Cactus Valley Pool Supply stores are smaller and can get daily deliveries of product instead of wasting retail space to warehouse product. When they're eyeing a busy street corner for a new location, they'll find out how many pools are located within a couple of miles, and then often charter a plane to take a bird's-eye view to confirm the numbers, Aaron said. "There have been a lot of locations where it looks good, but we'll charter a plane and it shows it's not ready," he said. And to Cactus Valley Pool Supply, location is everything. It was a shock, Aaron admitted, to sign the first lease on a store for five years and hundreds of thousands of dollars in rent, but they quickly realized that location--across from the Wal-Mart on Baseline Road and Stapley Drive--was worth it. "The busiest stores are Wal-Mart, and we knew instantly that that's the intersection we need to go," he said. "We're not afraid to pay rent. If you have to spend more money on advertising to drag them into an out-of-the-way place, it's not worth it." And the Hagen brothers should know. Neither went to business school, but both have learned a lifetime of valuable lessons on the job in the last nine years, a lesson that started with that $1,000 loan. But you wouldn't know it by looking at them. "People look at us when they come in and they don't ever believe that we're the owners," Aaron said. Cactus Valley Pool Supply Begins Offering Franchises, April 19, 2006 “We plan to sell about four franchises this year,” said David Hagen. “There are excellent sites available yet in the East Valley area as well as in the North, Central, and West Phoenix metro areas,” he added. Aaron Hagen said that the franchise program will allow Cactus Valley Pool Supply to open stores more quickly than would be possible through company expansion alone. Cactus Valley Pool Supply stores sell pool supplies, provide services and repairs to pool owners, carry approximately 8,000 items in stock, and have access to 100,000 items available from local distribution. |





“Every franchisee has been successful, and no one’s complained,” Aaron said. “Perhaps it’s because the Hagens take the franchisee approval process seriously. Noting that some prospective buyers have been turned away, Aaron said, “It’s important that the right people are wearing our hat.”