Pool Builders’ Optimism Soars According to Aqua magazine’s 2019 State of the Industry Builder Report, 93% of pool builders are optimistic about their business for the year after 66% reported increased 2018 revenues, although that number has declined 7% since 2017. Metrostudy’s Q4 2018 New Pool Index (NPI) reinforces their optimism, as the NPI for the entire year increased 7.8% to 50.5, which is “approximately 50% of the new pool activity highs” of 2005. The index is expected to increase 4.2% during 2019. Of pool builders responding to the survey for the report, 58% said consumer confidence is the factor that has the greatest impact on their business and 63% said their projects are residential, 32% both residential and commercial and 5% commercial only.

Hot Tub & Spa Retailers Are Feeling Warm and Relaxed Aqua magazine’s 2019 State of the Industry Hot Tub Report revealed 62% of participating vendors said portable hot tub sales increased from 2017 to 2018, with 26% saying sales remained the same and 12% said sales decreased. In Hearth & Home’s Q1 2019 Business Climate surveys, retailers in US and Canada reported a steady improvement in spa sales: January, 39% of retailers; February, 46% of retailers; and March, 47% of retailers. In the specialized swim spa category, 67% of retailers stated they offer them at their stores and 42% said they experienced increase sales during 2018.

Retailers Are Having a Splash Party According to Aqua magazine’s 2019 State of the Industry Retail Report, 63% of survey respondents said their businesses were becoming stronger, 29% neutral and 8% weaker. 51% were “very comfortable” with the future of pool and spa retailing. Internet competition worries 45% of retailers, with another 37% saying “a little.” Developing methods to compete with Internet and big-box competition is their third most important priority for 2019. The product sales that surprised retailers the most during 2018 included automatic pool cleaners, aboveground pools, high-end spas, energy-efficient equipment, swim spas, upgraded hot tub covers and automation.

More Pools, Hot Tubs and Spas = More Service Business With the majority of pool builders and hot tub/spa retailers experiencing business growth during 2018, 60% of those responding to Aqua’s State of the Service Industry survey said their service revenues increased during 2018. Among pool and spa service company owners, 65% were “very comfortable” about the future of their businesses, 30% were “worried about the future, but doing OK for now” while 4% were “just hanging on” and 1% were about to “eject” themselves. 59% of pool and spa retailers said they did not service products customers purchased on the Internet; however, the largest percentage, or 55%, who said they did had 2018 revenues in the range of $750,000 to $1 million.

Add-Ons and New Product Insights According to a February 2019 article in Aqua, inflatable pool sales could increase significantly, because of their obvious lower cost; population density, which reduces the space for in-ground pools; and an increasing number of children of Millennials. With home automation systems/devices becoming more mainstream and affordable and common in middle-class households, more pool and spa retailers say they are selling automatic pool covers to these same middle-class households. Of the retailers contributing to Aqua magazine’s 2019 State of the Industry Hot Tub Report, 88% said cover lifters were the accessory that interest most customers, followed by spa steps, 87%; spa fragrances/conditioners, 58%; and covers, 58%.

Pools Make Homes More Valuable (In Some Metro Areas) A realtor.com report revealed homes with an entertainer’s pool or a spa increased the per- square-foot selling price by 26%, compared to similar homes without these outdoor amenities. Entertainer’s pools are most popular with Florida homebuyers. Not surprisingly, a report from Redfin stated homes with pools in warm-weather states sell for more than comparative homes without pools. Los Angeles was first, with an additional $95,000+ added to the value of homes. Austin, TX was second in the Redfin study, with an average pool premium/per square foot of $28.67. Although Orange County, CA was third based on that same measure, it was second in the added value of a pool to the median sale price, or $55,885.37.

Advertising Strategies Although only a small percentage of pool builders use TV advertising, strategically placed spots can elevate their local brand identity and help drive viewers to marketing channels they use more often, such as referrals, their Websites and social media. TV could also be a good marketing channel to promote accessories, add-ons and new products as well as service, targeting those that already have pools, hot tubs and/or spas. With Baby Boomers and older seniors the largest percentage of TV viewers, more of them staying in their homes and more needing treatment for various physical ailments, hot tub and spa retailers should find TV will generate good traffic and an excellent ROI.

New Media Strategies With customer education, understanding and willingness to spend the biggest challenge to maintain an aging pool for service businesses, social media is the best place to post short videos of customer stories about how service businesses overcame this challenge. The content on page 3 of the Profiler about boosting home values with the addition of a pool is also an excellent topic for social media. A pool and spa retailer may want to partner with a local realtor to determine the added value of a pool in the local market, and promote it. Create short “explainer” videos hosted by employees of accessories, add-ons and new products, showing how they are used, especially their convenience and time-saving benefits, and post them on retailers’ Websites and social media pages.