The Pool Industry Is Growing As More People Set Up Their Backyards For Fun
Pinch A Penny Pool Patio Spa is a key player in a growing, needs-based business. In a growth industry that encompasses everything from construction to maintenance to retail, Pinch A Penny is much more than a pool cleaning business or swimming pool supply franchise. Pinch A Penny does everything except build the pool.
With more than 10.4 million residential pools in the U.S.1, pools are big business, and business is good. In a recent survey of its members, the Pool & Hot Tub Alliance, the nation’s primary pool industry trade group, reported that 45% of its members forecast annual revenues would increase 10% or more.
The swimming pool industry is worth an estimated $15 billion.2 Although most in-ground pools are built as part of new residential construction, spring 2020 brought a surge in demand for pools (above-ground and in-ground) for existing houses that was double to quadruple the normal levels. Families invested time and money in home improvements and an outdoor-centered lifestyle as they spent the summer at home rather than on vacation.
Pool and spa usage, interest in building and owning pools and pool construction remain at high levels.
About half of all pool owners hire someone else to service their pools. The rest of them need chemicals, supplies and equipment to keep their pools working efficiently. That’s why our business model is based on multiple streams of revenue – retail, pool cleaning and backyard services.
An increase in pool construction and more people enjoying “staycations” in their own backyards has been a boost for an already growing pool industry
Pinch A Penny has recorded positive growth for more than 45 years, through economic downturns as well as periods of rapid economic growth. Our average store revenue is $1.7 million3.
Historically, an economic downturn brings increased interest in franchising because people become more interested in controlling their own destiny. Additionally, franchises in the home improvement and maintenance sectors tend to fare well through economic ups and downs. Homeowners are more likely to stay home and fix up their property than buy new or go on extravagant vacations when the economy is shaky.
Pinch A Penny earned a spot on Franchise Business Review’s (FBR) 2020 special report, “Top 50 Recession-Proof Franchises” because of its financial performance during the pandemic and its designation as an essential business.
Location is a big factor in the success of a pool business, which is why Pinch A Penny started in Florida and is growing throughout the Southeast and Texas.
After a pool is built, however, the real work begins. Pool maintenance is a thriving and recurring business, because pools need to be taken care of to continue to work properly and safely. Pool maintenance companies range from mom-and-pop shops to corporate-owned businesses to independently owned and operated swimming pool franchises such as Pinch A Penny.
Retail stores that sell pool supplies, including chemicals and equipment, are destinations for pool owners year-round. Customers include DIYers who handle their own routine maintenance and chemicals to homeowners interested in adding a heater or spa.
Pinch A Penny is growing revenues by offering a variety of backyard and repair services that include leak detection, pool resurfacing, power washing, equipment installation and more.
Pinch A Penny franchisees can choose to add a number of ancillary services to increase revenue and grow their business. Most of Pinch A Penny’s competitors – some are retail stores and others are pool cleaning services – simply do not offer the diversity of services that Pinch A Penny locations do. Pinch A Penny stores, which are locally owned and operated, have been able to grow by diversifying and adding services that make sense for their markets.
Learn more about the benefits of ancillary service offerings.
2 U.S. Residential Swimming Pool Market Report by PKdata
3 For the year ending December 31, 2021, Pinch A Penny had 262 stores open. Of those stores, 257 have been open at least one year. Of those open at least one year, the average annual gross sales were $1,773,164 and some stores (39%) had annual gross sales that exceeded the average. Your results may differ. There is no assurance that you will do as well. See our 2022 Franchise Disclosure Document for more information.
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