Their Heads Well Above Water With total disposable income in the US at $14.345 trillion, as of January 2017, and steady economic growth, it’s no wonder that 75% of pool retailers said their businesses were stronger during 2016 than 2015, an 18% increase. AQUA magazine’s survey of pool retailers for its 2017 State of the Industry issue (May 2017) also found that just 5.7% of respondents said their businesses were weaker, which is half of the 2015 rate. 64% of survey participants said they were very comfortable about the future of the industry, although their top concerns were hiring and training new staff members, 31%; Internet/big box store competition, 30%; increasing their customer base, 11%.

More Consumers Take the Hot Tub Plunge AQUA magazine’s 2017 State of the Industry issue included separate results of a survey of hot tub retailers, and the big news is that 67% reported increased sales during 2016, compared to 2015, an 8% increase. According to the survey, 76% of retailers sell portable spas and 59% sell swim spas, an 11% increase from 2015’s survey, although consumers in colder climates are less likely to purchase swim spas. Many hot tub retailers report that some customers have done their research (typically online) and know that prices for high quality hot tubs start at $5,000 while others are clearly uninformed and think their prices are similar to plug-and-play models.

More Pools, Tubs and Spas = More Service Although the recession severely depressed the pool, hot tub & spa building and installation portions of the industry, existing units still needed servicing, so 27% of service professionals said they have experienced very strong growth during 2016. Another 52%, according to the AQUA magazine survey, said business was “pretty good” while 15% said they were doing OK and only 6% reported having a struggling business or that 2016 was a very bad year. 41% of service pros attributed their success during 2016 to efficiency and hard work, followed by “our great people,” 19%; good marketing, 16%; booming local economy, 10%; good weather, 8%; sales expertise, 3%; and education, 3%.

Builders Expect a Buoyant Future The AQUA magazine survey also reported that 73% of pool, hot tub and spa designers/builders/installers said their 2016 revenues increased; however, 95% are optimistic about their business and revenues for 2017. Consumer confidence was the factor having the greatest impact on their business, according to 54% of survey participants, followed by the housing market, 22%; competition, 9%; government regulations, 3%; and interest rates, 1%. Builders said that 73% of their pools are concrete/shotcrete/gunite; 43% are vinyl liner/package goods; and 21% are Fiberglass, while 79% said they use a saltwater chlorination system.

Advertising Strategies Although many retailers in the industry emphasize the relaxing and fun aspects of owning a pool, hot tub or spa, some may find a competitive edge by emphasizing and targeting the health benefits to Baby Boomers, the largest percentage of TV viewers. These specialty retailers have many opportunities to promote discounted bundles: a pool and hot tub combo to high-income consumers; a fun package of pool toys and similar products for a qualifying pool purchase; a healthy skin products package for spa purchasers. Those builders who offer a broad range of other outdoor living products may find it advantageous to market themselves as a one-stop shop, not only designing, building and installing a pool, but also decking, furniture, lighting, kitchens and audio systems.

New Media Strategies Residential pool care professionals can conduct an online contest with the winner receiving a free pool party for 25 family members and friends, with decorations, refreshments, etc. Invite others to join the party online with live streaming video from the party. Consumers love to spend their money with local businesses that support the community. Offer to clean the pool at a non-profit facility for free. Invite one or more homeless families to enjoy a hot tub during after- or off-hours at the store. Feature videos online. Online surveys/polls are inexpensive and easy methods to engage with customers and the public via social media or email campaigns. Publish the findings online and incentivize participation by drawing a name from all participants for an appropriate prize.