It looks like the “new pool frenzy of 2020–2022” may finally be over…
Let me be blunt. I think there’s trouble brewing for new pool builders in 2023.
For the last three years, most pool builders have experienced record demand, and record growth. The biggest challenge has been (1) handling all the incoming leads, and (2) trying to fulfill the demand.
But let’s look at the facts:
- Leads in 2020 were about 5X what they were in 2019.
- Leads in 2021 were still crazy, but only about half what they were in 2020.
- In 2022, leads are barely half what they were in 2021, which is bringing us back down into the range of 2019. (And as I remember it, 2019 wasn’t particularly strong.)
Now let’s look at what’s ahead of us for the next 18 to 36 months:
- Rising interest rates
- A declining economy
- A reduction in home starts
- Significantly higher pool prices and significantly longer build times, compared to 2019.
- And a marketplace that has already “pulled in” and spent most of its future demand.
When you combine all these factors, I see overwhelming evidence that there just won’t be as many homeowners lining for new pools next year.
That’s why I’m suggesting pool contractors may want to consider RENOVATIONS in 2023.
Fortunately, there is still an overwhelming demand for swimming pool renovations.
The latest data from PHTA indicates we have at least 10 million inground pools in the US that are more than five years old. If we presume a pool is due for some level of renovation on average every 10 years, then that means in 2023, there should be at least one million swimming pools in need of a renovation. Contrast that figure to new pool sales, which typically average less than 100,000 new pools per year.
That means you have 10 times more opportunities to get a renovation job than a new pool job.
So first of all, let’s agree that if you choose to pivot to renovations, there’s plenty of demand out there.
And let’s consider the average revenue per job. A basic plaster, tile, coping job might be about 10% of the cost of a new pool, right? But who wants to sell a basic tile-plaster-coping job? That’s not what I’m suggesting at all.
People still want to spend more time at home than ever before. And they want to enjoy that home – including the backyard – more than ever before. So most pool owners who need a renovation are probably also looking for (or would consider) a lot more than just plaster, tile and coping.
This is a golden opportunity for an expert pool builder like you to bring your creative new pool design and construction talents to shine.
A pool that’s more than 10 years old probably doesn’t have a tanning ledge, or vanishing edge, or a cabana, or an outdoor fireplace, or a man-cave sports bar, or a putting green, or a sports court, or any of a number of other highly-enjoyable features you could bring to the homeowner’s backyard.
And it’s probably surrounded by regular grass, which would be much more environmentally-friendly if you replaced it with high quality turf. (Very popular now, but almost unheard of 10 years ago.)
Seriously, it’s not crazy to quote a $100,000 to $300,000 renovation on an existing pool that only cost $20,000 when it was new. Many existing pool owners would be thrilled to convert their tired old swimming pool area into the spectacular backyard they’ve always dreamed of.
And here’s another interesting irony that puts you at a unique advantage. Most pool companies who specialize in repair and renovation are quite comfortable quoting renovations in the $10K to $20K range. That’s their wheelhouse. They are really good in that area.
You, by contrast, have a lot more experience with cabanas and fireplaces and tanning ledges and built-in tables, barstools and umbrellas, and outdoor living areas, and all kinds of other fabulous features that are totally in YOUR wheelhouse.
Now picture this: A homeowner receives three or four bids from renovators, each in the neighborhood of $20,000. Then you walk in with a bid for $167,000, to completely transform their backyard into something magical.
Suddenly, you look VERY different from everyone else.
And while some pool owners will stick with the boring, bare-minimum plaster job, many pool owners will be DELIGHTED to purchase your life-changing transformation, and thank their lucky stars they met you.
Now suppose you’re not highly experienced in the “renovations” area…
Maybe you’ve been burned in the past because of “hidden issues” that were discovered in the middle of your last renovation.
Well, I’ve got some good news for you there too.
I recently witnessed a unique renovations program used by a large renovator in Florida for many years. It had nothing to do with the equipment or materials, or which items he would or would not renovate.
It had everything to do with how he managed the client’s expectations before, during and after the renovation.
He showed me how one procedural change brought in an extra $1M a year in renovations revenue. And just about all of it was higher margin than the renovation itself.
And surprisingly, the clients are actually happier because of it. (Because the pool owner perceived it as proactive rather than reactive.) It made the renovator look like a true expert and professional.
A client of mine has been using this system for several months now. On the first project they quoted, they got a $9000 upsell on an $8000 plaster job. And just last week, they pulled in an extra $27,000 on upsells.
And the clients are HAPPY!
Now let me clarify, I don’t offer this program myself. I’m just passing this along, because I’m anticipating some serious challenges for new pool builders in 2023. And I think this might be the perfect solution to protect your revenue stream and profitability in the years ahead.
If you want to know more about this program, I suggest you go straight to the guy who invented it, and helped my client implement it: Todd Gregorcic.
The best way to reach Todd is via email: Todd@CyberFunnels.com.