www.1Paramount.com 1.800.621.5886

3 | Pool of the Month Award Winners 3 | Money Minute 4 | Buzz Words Joining the Social Circle

6 | Sales Corner G’day Australia!

8 | Social Media Highlight See how Seasonal World, Platinum and Pentair successfully leverage social media.

10 | Customer Connection

11 | New Paramount Employees

11 | Employees of the Quarter

CongratulationsKathi Penley Jenkinsof Almar Jackson Pools

Winner of the free iPad from the “I Choose to Cruise to...” drawing

Thanks for interacting with us, Kathi!

InThisIssue

There’s still time to qualify...Paramount and its Vendor Partners want

to help you make it to the 2010 Choose

Your Cruise Passport to Paradise trip with

Double & Triple Points during August.

POINTS DEADLINE:

AUGUST 31, 2010

SEE FULL PROMO DETAILS AT:

www.1Paramount.com/blog

Texas Pools The Woodlands, TX | JUN 2010

Gibbons Pools Islandia, NY | APR 2010

John Pack Custom Pools Georgetown, TX | FEB 2010

Kobs Pools Americus, GA | MAY 2010

Hamlin Pools Pharr, TX | MAR 2010

Champange Aquatech Sanford, FL | JAN 2010

MONTH WINNERS | 3POOL OF THE

With President Obama signing in the largest financial reform bill since the 1930’s, ques-tions still remain in the financial industry as to the impact it will have on everything from lending to Wall Street. The bill was written with very broad guidelines, leaving specula-tion as to the details that can be written in later by regulators. The bill’s impact might not be felt or known for years as the details get written and filled in. In the meantime lenders are holding steadfast in their current guidelines and programs.

Currently the credit markets are still tight (with respect to where it was 3 years ago) but

if you ask a bank or lender about the current status of credit markets, they will tell you they have gone back to “responsible lend-ing”. Lenders want to see solid credit but just as important to them, are customers not being over extended in debt. Debt ratio has become the dominant factor aside from credit score/history in lending. Whether it is secured financing or unsecured financing, lenders want to know the customer (Continued on page 6)

THE MONEY MINUTE

SCOTT PLEASANTFinance ManagerSPleasant@1paramount.com

4 | BUZZ WORDS

I n a time when the number of Facebook users surpasses the populations of the USA,

England, Australia, Canada and Germany combined, the need for a shift within our industry towards social media marketing is now. I hear too many individuals and organizations suggest that the idea of marketing and building community with the social media is a “fad” or “a waste of time”. It is this same group that needs to break through these outdated opinions or suffer being left outside social cir-cle, eventually losing touch

with the buying groups of tomorrow. The Millen-nial generation (buyers in their 20s & 30s) all speak in a digital language and they want you to speak the same language in order to connect. Are you prepared for that? You might be inquiring, “OK, social media is great and all, but where will I find the time to learn and implement social media strategies, especially since social media doesn’t feel like any type of marketing I have ever done before, nor is it clear how it could possibly contribute to our sales?” Whatever your arguments against using social media marketing, once you genuinely under-stand the application and

power of these tools, you will realize the arguments in favor greatly outweigh those against. What other marketing mediums are as inexpensive, targeted, and fresh? I’ve heard it said, “The ROI of Social Media is that your company will still exist in 5 years”, though that statement is overstated, an aspect of it is true. - if you don’t invest in going where the people are, how do you expect to sell your product? Perhaps most importantly, social media provides you with immediate feedback allowing you the oppor-tunity to interact with consumers at a speed and reach that our industry has never before experienced.As the years continue to fly by (and in this digital age they do fly faster) the need for promoting your company with these social tools will intensify. Your competitors may or may not be involved in social media but your customers and potential customers are already there, awaiting your arrival. Even if you have no internet presence and are not participating in social media marketing on any level, your brand ispresently being defined by

this social media phenom-enon. Bottom line, if this trend continue (and there are no signs of it slowing) you must act soon. I view marketing within these social circles as a crucial step in keeping us on the leading edge of the industry, and I personally put great value in pushing it forward for Paramount. You can’t argue that it is an extremely cost-effective way to reach our market. Many of the tools of social media require only the commitment of your time, with zero expenditure of dollars or only a nominal expense. In fact, if you choose a fully hands-on approach, you could liter-ally launch an entire social media marketing campaign without ever spending a penny. Since the launch of Paramount’s social media strategy six months ago (which included a presence on Facebook, Twitter, You-tube and Paramount Blog) we’ve already learned a great deal about the power of its immediacy and how we utilize it to grow and maintain our busi-ness, both now and in the future. I have to admit that originally “going social” was a complicated idea

President of Paramountbghiz@1Paramount.comtwitter.com/buzz_ghiz

Be Creative_______________________Relax, be creative, and have some fun. These social media outlets offer you op-portunities to break outside of the box and practice non-conventional market-ing tactics. Offer a video contest or a discount for answering a question you posted, whatever you do just keep it fresh.

Always Make It Personal_______________________Most importantly, stay connected to your cus-tomers on a personal level. Even though this new media is called “social”, you still have to make a conscious effort to create valuable connections; they don’t happen automati-cally. Be ready to listen to your customers and quickly address any questions or concerns they may have. Be ready for negativity and use it as an opportunity to learn how to improve your customer’s experience. Bot-tom line, the more people feel like they’re connecting

by the thought of “going social”, just start small and continue building. A great place to begin would be creating accounts on Facebook and Twitter.

Content is King_______________________Establish yourself as the expert in your field by offering good content. Not all content has to be origi-nal; for example, you can link to a good blog article on winterizing that is help-ful to your customer. The key is to offer up content that isn’t silly and useless, but interesting and useful to your audience.

Stay Consistent_______________________Like in any other effective marketing medium consis-tency equals effectiveness. This truth is even more so in social media. You must offer your audience a steady stream of informa-tion otherwise suffer the consequence of appearing stale. The easiest way to stay consistent is to plan your strategy in 2, 4 or 6-month spans.

for me to wrap my brain around. However, once I began to recognize its power for connecting with our customers, I adopted the mantra, “More Social. Less Media.” as a way of keeping us on track with our business vision and objectives. At Paramount, we have always strived to develop a community with our valued customers and social media was seen as a logical extension of that philosophy. Getting into the world of social media we knew that we didn’t desire to produce “another media” where we push out only self-focused infor-mation; we sought to go where our customers were, build a community within the ever growing social circle, and continue being the trusted experts in our field. If you are on the outside looking in and are still not convinced, don’t be afraid to jump in. I, too, was a skeptic, however, through these past couple years I’ve developed a handful of principles that we have utilized to some success. This is not an exhaustive list of principles; it a basis by which you can begin to develop your own strategy.

Start Small &Get Going_______________________The first step can some-times be the hardest, so keep it simple and jump in! Don’t get overwhelmed

with you and the less like they’re being “marketed” to the better. Keep it per-sonal!

Our hope is that by the end of the 1st Quarter of 2011 we will roll out a social media resource guide tailored to the pool and spa industry. We understand that at the end of the day, if we can assist in positioning your brand within these new mediums then we all succeed. You are the reason why Paramount exists and the reason why we press forward. Let’s press forward together. Thank you for your continued confidence in Paramount and the relationships we have built together. Your business and friendship is very much ap-preciated by all of us atParamount. May God bless you and your families and let his blessings overflow in your lives.

78%A mere 14%

of consumers trustpeer recommendations.

trust advertisements.

The number of Facebook users surpass the combined populations of the US, Japan and Germany.

( = 10 million)

96% of millenials joinsocial networks.

The top social media sites for small businesses:

FacebookTwitterYouTubeLinkedinWordpress

78%A mere 14%

of consumers trustpeer recommendations.

trust advertisements.

The number of Facebook users surpass the combined populations of the US, Japan and Germany.

( = 10 million)

96% of millenials joinsocial networks.

The top social media sites for small businesses:

FacebookTwitterYouTubeLinkedinWordpress

78%A mere 14%

of consumers trustpeer recommendations.

trust advertisements.

The number of Facebook users surpass the combined populations of the US, Japan and Germany.

( = 10 million)

96% of millenials joinsocial networks.

The top social media sites for small businesses:

FacebookTwitterYouTubeLinkedinWordpress

78%A mere 14%

of consumers trustpeer recommendations.

trust advertisements.

The number of Facebook users surpass the combined populations of the US, Japan and Germany.

( = 10 million)

96% of millenials joinsocial networks.

The top social media sites for small businesses:

FacebookTwitterYouTubeLinkedinWordpress

78%A mere 14%

of consumers trustpeer recommendations.

trust advertisements.

The number of Facebook users surpass the combined populations of the US, Japan and Germany.

( = 10 million)

96% of millenials joinsocial networks.

The top social media sites for small businesses:

FacebookTwitterYouTubeLinkedinWordpress

(Continuation from page 3)

has the ability to repay the loan.

Debt ratio is calculated by taking the sum of customer’s outgoing minimum monthly payments (only those debts reporting on their credit report) and dividing that sum into the customer’s gross (before taxes) monthly income. As a rule of thumb, lenders currently want to see customers have a debt ratio below 40%, which should also include the customer’s new pool financing minimum payment. There are some lenders that require a smaller debt ratio and a few others that are bit more liberal and go a little higher on their ratio.

Debt ratios can also vary by the type of lending product. Unsecured financing tends to require lower debt ratios while secured financing overall, tends to be a bit more lib-eral because the lender has a secured interest against the loan and therefore less risk to the lender.

Interest rates remain very attractive overall, especially for secured financing where first mortgages, second mortgages and HELOCS (home equity line of credit) are categorized. Rates have remained at or near historic lows thru much of 2010. Despite the federal government not buying up Freddie Mac and Fannie Mae loans any longer, rates have managed to stay very low. If a customer does have equity, a mortgage product would be the route of choice for the customer. In addition to excellent rates on secured lending products, lenders are willing to go lower on FICO scores, a little higher on customers’ debt ratios and there could be tax advantages for the customer as the interest could be tax deductible (customer should always consult their own tax advisor). Lastly, secured financing offers longer terms, stretching as long as 15-20 years, allowing for smaller monthly payments.

Unsecured financing on the other hand has more strin-gent guidelines overall compared to secured financing and much shorter terms. As referenced above, lenders tend to require lower debt ratios but also tend to require higher FICO scores and some even want liquid assets to qualify for their unsecured program. The good news on unsecured loans is that we are seeing more banks start to lend again on these programs. The not so good news is that they are not lending to the length of terms we would all like to see. The standard term in the industry currently is at 5 years for unsecured financing programs. Financing a pool has become very similar to financing a car with regard to the monthly payment the customers should expect.

We will do our best here at Paramount Capital to keep you informed as changes are made or announced in the lending industry that could affect pool financing.

• • •

6 | THE MONEY MINUTE

SALES CORNER | 7

Paramount is blessed to have some great busi-ness partners in the land Down Under; Pool Wa-

ter Products and Compass Pools/Waterline Innovations. These companies have done an out-standing job of growing the mar-ket for Paramount in Australia. We truly appreciate their efforts.

POOL WATER PRODUCTSANNUAL TRIP

In May I had the opportunity to participate in Pool Water Prod-ucts annual dealer trip.

The trip began in the small town of Alice Springs which is located in the heart of the Australian outback (check it out on Google Maps or Google Earth). After touring the area including the West MacDonnell Range and the Desert Park we embarked on The Ghan Train for the 2 day trip to Darwin in the Northern Territory. Along the way we stopped in the town of Katherine to tour the Katherine Gorge (pictured on right) before the final run into Darwin. The group stayed at the Sky City Hotel and Casino in Darwin and had lots of fun enjoy-ing the surrounding area includ-ing a day on the Adelaide River. Perhaps you have ever seen pic-tures or television shows about the huge crocodiles in Australia. Well we had the opportunity to meet them up close and person-al on the “Jumping Crocodiles Tour”.

I also had the opportunity to meet a number of local beers with my Aussie mates. Anyway, I just wanted to give you a little taste of Australia and send a shout-out to the owners, management, sales team and clients of Pool Water Products. Congratulations on a successful year and a great trip.

COMPASS POOLS / WA-TERLINE INNOVATIONS

Paramount also extends our sin-cere congratulations to Compass Pools on their 30th Anniversary. The Mewett family has built a very successful company and is by far the world’s leader in the sales of in-floor cleaning sys-tems in one-piece/fiberglass pools through their dealer network. They held their annual dealer conference in the Hunter Valley the week of June 21st.

If you visit the Compass Pools website at: www.compasspools.com.au/self-cleaning-pool.html you will see how well they have integrated the maintenance free pool concept into their market-ing.

We genuinely appreciate and re-spect the efforts of our Australian Partners. If you haven’t visited this wonderful country I hope you get the opportunity some-day…

Director of Sales & Marketinge | bburt@1Paramount.com t | twitter.com/Bill_Burt

The group as we’re about to

board The Ghan

USATo AUS

A taste of Australia with some friends Jumping Crocodiles Tour

8 | CUSTOMER CONNECTION

MEET THE TEAM //

HOURS 6AM TO 5PM (MST) MAIN 1.800.621.5886 FAX 480.753.3397

VIEW THE REGION MAP BY GOING TO WWW.1PARAMOUNT.COM/BLOG

LINDA RAINERDirector of Customer ServiceRegion: 50lrainer@1paramount.comExt: 211

WENDY WATSONCustomer Care SpecialistRegions: 4 & 5wwatson@1paramount.comExt: 217

TAMMY BARBERCustomer Care SpecialistRegions: 1, 2, 8 & 10tbarber@1paramount.comExt: 232

LISA ROSECustomer Care SpecialistRegions: 6 & 9lrose@1paramount.comExt: 225

We always enjoy taking care of you, our customers, and thought you might like to put a face to the names. Feel free to give us a call if you ever need any assistance.

Pentair Ad No. PEL-10-1PARA1/2 Page Bleed, 4 color processBleed: 8.625" x 5.625" Trim: 8.5" x 5.5" 1paramountAlexander Marketing Services, Inc.Grand Rapids, Michigan 49504 USAJob No. PEL-37391July 23, 2010

Be a hero in their eyes with the “smart pumps” that re ect well on you.IntelliFlo® and IntelliPro® variable speed pumps are the only time-tested smart pumps in the industry. Since 2005, they’ve delivered hundreds of dollars in annual energy savings to elated pool owners while enhancing the reputations of pool professionals like you.

Every pump features our exclusive digital controls and proprietary software. Speeds are custom-programmed so pools operate effortlessly at optimum efficiency, creating annual electric bill savings from $620 to $1,360!*

The only line of variable speed pumps with… • Exclusive 32-magnet motor design for greater efficiency; eliminates unpleasant high frequency noise• Built-in diagnostics to guard against premature failure• Integrated keypad—no need to purchase separately at additional cost• Self-adjusting variable fl ow model for ultimate efficiency and convenience• SVRS option for an important built-in layer of entrapment protection

Don’t disappoint your customers with a lesser pump. Offer them the variable speed pumps that outsell all others combined. To learn more, call or click today.

1-800-374-4300www.pentairpool.com or www.staritepool.com

*Savings based on comparison single-speed, 2 horsepower pump running between 6 and 12 hours/day at $.15/kWh in a 20,000 gallon pool. Savings may vary based on plumbing size and length, pump model, service factor, fl ow rates and other hydraulic factors.

Pentair Ad No. PEL-10-1PARA1/2 Page Bleed, 4 color processBleed: 8.625" x 5.625" Trim: 8.5" x 5.5" 1paramountAlexander Marketing Services, Inc.Grand Rapids, Michigan 49504 USAJob No. PEL-37391July 23, 2010

Be a hero in their eyes with the “smart pumps” that re ect well on you.IntelliFlo® and IntelliPro® variable speed pumps are the only time-tested smart pumps in the industry. Since 2005, they’ve delivered hundreds of dollars in annual energy savings to elated pool owners while enhancing the reputations of pool professionals like you.

Every pump features our exclusive digital controls and proprietary software. Speeds are custom-programmed so pools operate effortlessly at optimum efficiency, creating annual electric bill savings from $620 to $1,360!*

The only line of variable speed pumps with… • Exclusive 32-magnet motor design for greater efficiency; eliminates unpleasant high frequency noise• Built-in diagnostics to guard against premature failure• Integrated keypad—no need to purchase separately at additional cost• Self-adjusting variable fl ow model for ultimate efficiency and convenience• SVRS option for an important built-in layer of entrapment protection

Don’t disappoint your customers with a lesser pump. Offer them the variable speed pumps that outsell all others combined. To learn more, call or click today.

1-800-374-4300www.pentairpool.com or www.staritepool.com

*Savings based on comparison single-speed, 2 horsepower pump running between 6 and 12 hours/day at $.15/kWh in a 20,000 gallon pool. Savings may vary based on plumbing size and length, pump model, service factor, fl ow rates and other hydraulic factors.

NEW PARAMOUNT EMPLOYEES | 9

EMPLOYEE OF THE QUARTER

TONY ANASTASIO | Q1 2010Tony has been with Paramount for over 9 years and comes to work every day with a positive attitude and a smile on his face.  Tony is ex-tremely dependable and he is always willing to do whatever it takes to get the job done correctly.  He is very detailed in his work and helps when needed in any department.  

DUSTIN SUMMERS | Q2 2010Dustin is willing to take on new tasks with enthusiasm. Dustin is pro-active in his thinking to try and find solutions to issues that appear on a daily basis. He works well and communicates with fellow employ-ees to create a positive environment. He has good knowledge of the parts, understanding of procedures in completing tasks that have been assigned and is a team player. He has excellent understanding of the requirements of his job.

Robert BeckI’ve lived in Arizona most of my life, but also lived in Washington State and North Carolina when I was stationed at Ft. Bragg as a member of the 82nd airborne division. Prior to being hired at Paramount, I worked in the wholesale flooring industry for 10 years. I enjoy camping, fishing and I’m an avid NFL and NASCAR fan.

Rudy Smith Sr.YA’TA’HEY! I have a beautiful young wife and two handsome boys (14 years and 3 years old). I also have two pit-bulls and two kittens. I am Native American, descending from the Navajo and Acoma tribes. I enjoy anything that is family oriented. My previous job was in construction (pipefitting). I am currently employed by the #1 and best pool product manufacturer in the world, Paramount Pool & Spa Systems. My official title is Material Handler.

Robert RobertsI have been working here at Paramount since May 7th. Before coming to Paramount I was an over-the-road truck driver for Swift Transportation. I am married and have a 12-year-old daughter. When I’m not working, I enjoy spending time with my family, watching movies and exploring the culinary art of vegan cuisine.

Rick RiniAlthough I have been with Paramount a short time I feel that the company has a lot of opportu-nity to learn and is a nice place to work. I also feel there is a lot of team work and the people are very nice to work with. The company I came from did not have much opportunity for learning or team work.

Lisa RoseI am the newest member to the Paramount Customer Care team. I have been with Paramount for a little over 90 days now and I love the wonderful team I work with! I have worked in customer service for the past 6 years. I love this field of work because it brings new and exciting challenges everyday. I also enjoy dealing with the public and helping them with their needs.

Seasonal World and Platinum Pools share their social media wisdom with us.

Like a massive tidal wave, social media is sweeping across the globe. People are con-necting with friends and organizations more now than at any other time in history, and this trend is creating a huge opportunity in

our industry.

The Need for a Social StrategyThere is a lot of business potential built into social media, and developing a solid social media strategy is more important now than ever. We’ve seen how it has positively affected many businesses in our in-dustry, including Platinum Pools, Seasonal World and Pentair. In fact, we were able to talk one on one with Platinum Pools and Seasonal World about their recent successes with social media. They’ve shared with us a few of their own thoughts about building a solid social media strategy.

Cultivating Social GrowthIn less than a year Platinum Pools has attracted over 400 Facebook fans and 200 Twitter followers, while Seasonal World has attracted over 700 Face-book fans and more than 2,100 followers on Twit-ter. Their social media followings did not happen overnight. Developing a healthy social media strat-egy takes time, dedicated effort and even a little trial and error. When we spoke to Seasonal World about their strategy, they compared it to gardening. “You plant seeds by posting and tweeting engaging messages to people that you have invited to join you. In time… your garden will become more lush and your harvest more plentiful. It takes time and constant diligence, but the return is well worth the investment.”

Actively Improving RelationshipsIn our industry, we know how important it is to build relationships. Social media can greatly en-hance your ability to build lasting relationships with both customers and prospects. Platinum Pools included, “It is our goal for potential and existing customers to get to know us through social media, and trust us to teach them about swimming pools and spas.”

The best way to get people engaged with your or-ganization is for you to frequently post informative and entertaining information. This information should be relevant to your organization and target

TWITTERVIEWParamount // Pentairconnect online to share social media insights

See the Full Twitterview at:www.1Paramount.com/blog

Could you give a brief description of Pen-tair for our followers?

Pentair is the world’s leading manufacturer of pool and spa equipment & innovation leader in variable speed pumps, iPhone &iPad com-patible pool remotes & more.

Great answer. Why has Pentair decided to be-gin using social media?

What part of the company has social media really helped or influenced so far?

Has the effort of entering social media proved to be valuable to Pentair?

Customer’s are turning to the online conversa-tion space to form opinions about products; ours included. We want to build relationships with those stakeholders.

It’s an invaluable resource for product devel-opment, customer service, sales & marketing. The voice of the customer influences every-thing we do and how we do it.

Yes, a forum that fosters collaboration, sharing of best practices, concerns, issues and action-able insights for product enhancements is in-valuable.

audience so they can connect with you and add to the conversation. If people feel that they have something to contribute, they will be more likely to participate. As you connect with them and provide quality con-tent, their trust in you will grow.

Finding the right content is often the hardest part of any strategy. Seasonal World’s strategy includes ask-ing questions, getting those who have a pool to brag about them, and posting links with ideas about how to have more fun outside and enjoy their pools and patios.

Don’t Abandon Your Strategy Once you’ve started, don’t throw in the towel after a few short weeks if you feel it’s not producing the results you wanted. Building and cultivating your garden will take time. Always be sure to create and find opportunities to continue promoting your orga-nization. Seasonal World has found that, “There is no better advertising than someone posting on their Facebook wall, ‘just went swimming in our new pool! It’s awesome!’” A statement like that can reach hundreds of users. Make sure to connect with that person and get them to continue the conversation. These opportunities can have lasting effects, espe-cially as those thinking about purchasing a pool read something like that from a friend.

The Next StepThis is just a quick summary of why developing a strategy is so crucial today. I encourage you to build out your own strategy and see what works for you and what doesn’t. The more creative and dedicated you are, the more success you’ll see.

• • •

BRETT FARRMarketing Coordinator (aka Social Guru)Brett@1paramount.com

Please check out our blog for the full interviews with Platinum Pools and Seasonal World. These will provide more information on how to imple-ment social media in your business.

295 East Corporate PlaceChandler, AZ 85225

1.800.621.5886 www.1Paramount.com