Raising revenues by updating the beauty and functionality of pools

by Sally Bouorm | February 1, 2012 3:58 pm

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By Jill Thompson

Renovation projects are becoming a larger segment of every pool business. Profit margins on these projects are often higher than those earned in new pool construction. Not everyone is able to track which part of the renovation project makes the most money, but universally, pool builders say today’s accessories are definitely contributing to the bottom line.

Accessories come in a wide range of categories—from slides and diving boards, to water features, games, fire pits, outdoor TVs, lighting, even control systems and variable frequency pumps and drives. Most pool builders will agree, once they are in the backyard of a homeowner who is interested in updating their pool, having the ability to offer various accessory-related options for consideration is beneficial to their business.

“It is important to ensure homeowners are aware of all the products available that can be added onto their pools,” says Martin Rowland of Bama Pools in Florence, Ala. “Having knowledge about a wide range of accessories, at various price points, can play a factor in securing a renovation project and obtaining a lifelong customer.”

Renovation key in today’s economy

New construction is still the bread and butter for a majority of pool builders; however, many have found profits in renovation projects, and as a result are focusing more on this type of work. For example, a renovation project can range from $3,000 for a basic job to upwards of $150,000 to $250,000 for a complete remodel.

“In the past, we were strictly a new pool construction company; however, we do at least 100 remodel projects a year now,” says Mike Clark of Pulliam Pools in Fort Worth, Tex. “With the change in the economy we realized the potential in renovation projects and four years ago started a department strictly dedicated to this type of work.

“Typical renovation projects run $10,000 to $15,000 and include replacement of tile, coping and plaster, as well as the addition of a water feature, slide or diving board. If we renovate the pool deck as well, it can turn into a $20,000 to $25,000 job.”

Builders such as Sterling Pools, which has served the Peterborough, Ont., area for 53 years, has also seen a growing trend in renovation work and says it now represents 50 per cent of their projects.

“Renovation work is growing every year, as there are many older pools in this area,” says Sterling’s Wayne Couglin. “The accessory we sell the most on these projects are stairs, as most of these pools only have ladders. This is a great profit centre for us because we have to break up the concrete around the pool to install the stairs, which often leads the customer to re-evaluate their pool deck.”

Builders that have been in the industry for a long time are now finding they are renovating pools they originally installed more than 20 years ago.

“My business reflects the evolution of the pool industry,” says Rowland. “We built pools two decades ago for clients and their children. Now these clients are calling us back because they want to update their pool to entice their grandchildren to come and visit.”

Using accessories to get the client excited

Glen Bullard of Forth Worth Custom Pools in Fort Worth, Texas, says they get their foot in the door starting with renovating the pool’s tile, coping and equipment.

“Then we show the client some of the products and accessories they can add to their pool to update its look and functionality—this is what gets them really excited,” he says.

Clark agrees, “Once we get into the backyard, we then find ourselves adding various other profitable accessories as part of the project.”

Slides and diving boards

Whether they are standalone products or custom designs, slides and diving boards offer builders great profit potential. Many homeowners had pools built before they had children or when they had older children. Now that they are grandparents, with young children coming over to enjoy the pool, this has changed. As a result, this can be a key factor in up-selling slides and diving boards.

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“Slides are key to our renovation projects,” says Bullard. “Not only are custom slides a great profit centre for us, they also help distinguish us from our competitors. We sell a lot of these accessories by taking our customers to completed job sites, which incorporate these accessories.”

For builders interested in a faster profit centre, standalone slides or diving boards, which do not require additional rock and concrete work, are also popular among pool renovators.

“Slides are a big part of our remodels; we’ve had great success with them as they make the pool more fun and appealing to children,” says Clark. “They take less than five hours to install and at a sale price of approximately $3,500, pool renovators may see a profit of $1,400 and upwards.

In terms of diving boards, Fort Worth Custom Pools has seen a lot of profit in renovations related to these accessories that have deteriorated and/or rusted over time.

“It’s easy to remove an old, corroded diving board and install a new one without having to rip up the deck,” says Bullard. “In less than two man hours you can make a profit by simply replacing the diving board.”

Water features and fire pits

Additional backyard accessories builders are finding success with are water features and fire pits. In fact, companies like Sterling Pools and All Seasons Pools (Orland Park, Ill.), say water features are one of the top accessories they sell on renovation projects.

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More specifically, deck sprays have been extremely profitable and popular for Sterling Pools in the Peterborough region, while structural water features, which can run $10,000 to $15,000 per job, have been the number one accessory for All Seasons Pools.

“In the grand scale of a renovation project, water/fire bowls are great profit centres,” says Bullard. “These accessories can be easily added to any project to give the pool a quick facelift. When I show clients they can spend $20,000 to $30,000 and get a pool that looks brand new, they get really excited.”

Rowland has also seen success with poolside water features such as two-tiered water bowls, saying his customers are pleasantly surprised by their look and appeal and are not too concerned with their cost (under $1,000) in the scope of a $20,000 to $30,000 renovation project.

“They take less than an hour to install and provide an approximate $300 profit per unit,” he says.

Bama Pools, on the other hand, has seen success with artificial rock waterfalls, installing them for clients who are looking to enhance their backyard retreat.

“These types of waterfall features are an easy-to-install accessory that can be used to update any pool,” says Rowland. “In less than two hours, I can install one of these products to enhance the look of the pool and make a nice profit.”

Games and rail goods

When it comes to accessories such as games and rail goods, many pool owners are unfamiliar with what may be available to them—especially if their pool is already built.

For example, many builders have experienced increased profits by offering built-in gaming products such as basketball and volleyball equipment. The in-deck games are more attractive than typical plastic versions on the market and installing the deck anchors is easy.

“The basketball hoop is a prime example of the importance in offering a wide range of accessories,” says Rowland. “Most people think the plastic sets they find at big box outlets are their only option. However, when I show my customers there is a high-end basketball hoop available, which installs directly into the pool deck, they are happy to know this option exists.

“These products are also a great profit centre for renovation projects,” Rowland adds. “It takes no more than an hour to install a unit that sells for approximately $900 to $1,000, which translates into a profit of about $350 per unit.”

Rail goods are also often overlooked, even after rust has formed making the entire pool area look terrible.

“Installing new rails, sometimes even powder-coated rails, can greatly improve the pool’s appearance,” says All Seasons Pools, Dan Lenz. “Replacing rails takes less than an hour each, with a profit margin of approximately $200 per rail. Similarly, it may take about an hour to install a new ladder, with profits of approximately $300 to $400 each.”

Upgrading technology

Technology also plays a key role in swimming pool renovation projects and continues to be a major profit centre for builders. High-tech accessories and equipment such as variable-speed pumps and automation devices are constantly being updated to operate more efficiently. Whether part of a renovation project or not, even a pool installed five years ago can benefit from a technological overhaul.

“Variable-speed drives are a big part of our renovation business—especially for our older clients who are trying to lower or control their monthly operating expenses,” says Clark. “A variable-speed drive can reduce electric bills for consumers by approximately 70 per cent.”

Many builders have also found high profits in automatic control systems, as homeowners love the digital/gadget experience.

“Our goal is not only to make our clients’ pools prettier but also more functional,” says Bullard. “Remote control devices are huge. They are probably our number one renovation update, followed immediately by light-emitting diode (LED) lighting—both in and around the pool area.”

Lenz agrees and says his company has also seen increased profits in combining lights and automation products on renovation projects.

“Pool and landscape lighting integrates into the control system and becomes an easy sell,” he says. “If the renovation project runs $60,000 to $70,000, then it’s usually pretty easy to up sell an automation system for another $3,000.”

Accessories for the entire backyard

For Fort Worth Custom Pools, backyard living spaces and outdoor living have become a large part of its renovation business. For instance, this type of work in the past, which includes designing and building arbours, gazebos, outdoor kitchens, as well as selling patio furniture and other related backyard accessories, represented a mere five per cent of the company’s business. Today, however, it represents nearly 40 per cent.

Renovating backyard living spaces has also grown exponentially for All Seasons Pools.

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“From structures and furniture to installing anchors for umbrellas, these are the types of accessories that can provide higher profits on renovation projects,” says Lenz. “Our goal is to remain in the backyard and do everything we can for the client. We strive to offer one-stop shopping for everything in the backyard.

“In the past we would tell customers to call a landscaper to get their paver, concrete or other landscaping and hardscaping work done. Now we do everything ourselves.”

In fact, re-doing concrete and paver work has become a large part of Bama Pools’ renovation projects, as well. The company says this work is sometimes out of necessity when replacing old, plastic drop-in steps that are leaking and cracked.

“This requires breaking up the concrete behind and around the steps,” says Rowland. “So, rather than patch with concrete, we use pavers so it looks intentional, like it belongs.”

Accessories: good for business and the industry

Pool professionals need to look carefully at their accessory offerings, not only to increase profit margins but to also create additional business and revenue streams. Further, by renovating pools and backyards with the latest accessories it benefits the industry by keeping homeowners interested in their swimming pools and backyards.

 

 

Jill Thompson is the marketing manager for Inter-Fab Inc., a manufacturer of residential deck accessories such as water slides, diving boards and rails goods in Tucson, Ariz. She has been with the company since 2003 and has more than 20 years experience in marketing and commercial printing. She can be reached via e-mail at jill@inter-fab.com[5]. 

Source URL: https://www.poolspamarketing.com/trade/raising-revenues-by-updating-the-beauty-and-functionality-of-pools/

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