Primer: Pool Service Business and Case Study

Send us Fan MailThe Swimming Pool Cleaning Services industry provides cleaning and maintenance services for swimming and wading pools, spas, hot tubs, whirlpools, and saunas. These services include surface cleaning and maintenance of equipment such as pumps, heaters, and filters, chemical adjustments, pool opening and closing, and inspections.According to the industry report, the US Swimming Pool Cleaning Services industry has grown significantly. Over the five years to 2022, industry revenue is expected to rise at an annualized rate of 6.1% to $7.8 billion. This growth was initially supported by an expanding economy pre-pandemic and was further fueled by an unprecedented demand for backyard pools during the COVID-19 pandemic. In 2022, revenue is expected to increase by 0.9%. The industry is projected to continue expanding over the five years to 2027, but at a slower annualized rate of 2.0% to $8.6 billion. Rising chlorine prices have aided profitability, as operators have been able to pass these costs on to consumers.The industry is characterized by low market share concentration and no major players. Most operators are self-employed individuals or small businesses with few employees; in 2022, nearly 89.0% of industry operators were non-employers. This is likely due to the localized nature of the services and limited opportunities for economies of scale. Barriers to entry are generally low.The industry's main activities include cleaning swimming pools and spas, equipment maintenance and repair, chemical adjustment services, and opening and closing services. The major products and services are general cleaning, equipment cleaning and maintenance, chemical adjustments, and other niche services. The industry serves a range of markets, with single-unit households, multi-unit residential, commercial clients like hotels and fitness centers, and institutional/municipal clients. Demand from residential consumers has historically been driven by consumer spending, disposable income, and the number of high-income households. The condition of the hospitality and recreation sectors influences commercial demand.External competition comes from do-it-yourself homeowners and commercial facilities' in-house maintenance staff. Technological advancements in automated pool cleaners pose a potential constraint on growth, although they cannot fully replace the spectrum of professional services offered.The industry is subject to a moderate and increasing level of regulation, including federal mandates on chemical handling and transportation and state-based licensing and certification requirements. While the industry does not receive direct government subsidies, professional organizations like the Association of Pool and Spa Professionals (APSP) and the Independent Pool and Spa Services Association (IPSSA) provide resources and promote standards.The case study covers a highly profitable pool service and repair business in Southern New Jersey with nearly $1 million in annualized revenue in 2022. This company offers service, repair, maintenance, and renovation to high-end clients and sources business through referrals and past clients. It operated with full-time and part-time staff and utilizes software like QuickBooks and Verizon Connect. The owner was looking to retire, highlighting the prevalence of smaller, owner-operated businesses in the industry, consistent with the industry report's findings. The business stopped new construction in 2014, but continued renovation work for long-term customers. The owner had a Certified Pool Operator on staff and a home improvement license. This example reinforces the services mentioned in the industry report and the focus on the business's cleaning and maintenance/repair aspects. Support the showWebsite: https://murphybusiness.com/edison/Current Listings: https://murphybusiness.com/edison/businesses-for-sale/