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SWIMMING POOL SALES SEE FIRST SALES INCREASE IN 3 YEARS
October 18, 2010
Poolandspa.com News
From
Poolandspa.com Newsletter October 2010
Las Vegas, NV USA
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PENT-UP DEMAND
CAUSING PEOPLE TO START BUYING
SWIMMING POOLS AGAIN
"Pent up
demand" is an economic term that has
not been used that often in recent
years, but we are now beginning to
see it work its way into the
vocabulary of business and commerce
once again. Especially now that
"the recovery" has started...ending
the longest and worst economic
recession since the Great
Depression.
The
basic economics of "pent up demand
theory" is that money is currently
being saved by the consumer in order
to pay down existing credit card or
loan debt - or to counter the risk
of job loss, or to offset thoughts
of an uncertain future (i.e. save it
for a rainy day approach).
This
money that is sitting on the
sidelines will be spent at some
point. Necessary items like
replacing balding tires, fixing
leaking roofs, replacing old TV's
and appliances, buying new clothes
and other numerous maintenance-type
purchases are already seeing a
rebound.
These
purchases account for the pent up
demand curves that have been forming
that have different shapes depending
on the consumer's ability to
postpone taking care of the
inevitable...what they would
consider "necessary purchases".
However
at some point during the economic
recovery process, the spending
curves overlap and herdish spending
begins amongst the backdrop of
stable energy prices, government
stimulus, new job creation and the
inevitable stabilizing of the real
estate markets - normally starting
with the basic non-essentials (like
a flat screen TV, a camera, or a
nice computer), and then moving on
to the larger consumer purchases
such as boats, RV's, hot tubs,
swimming pools and their associated
commodities. This is happening.
There is no doubt. This cyclical
economic trend recently repeated
itself during the recession of
1999-2001. In the pool & spa
industry, 2001 was a very bad year.
But it rebounded tremendously in
2002 and grew at an exponential rate
all the way until 2007.
After
all, how long can you drive a
clunker for instance? How long can
you go before you need a new pool
liner? How many thousands of people
are sitting around RIGHT NOW
dreaming about getting a hot tub or
a swimming pool? The answer to that
last question is hundreds of
thousands of people. Possibly
millions of people.
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Gunite Pool Being Built |
THE SWIMMING POOL INDUSTRY IS
STARTING TO SEE THE REBOUND
And the Swimming Pool Industry is
starting to see the turn around in a big way. Pool
sales in the third quarter of 2010 have shown a
remarkable increase in sales all of a sudden.
Curt Prystupa, the President of Sun
Fiberglass Pools, reports that they have had a
good year overall (in 2010). "The
surprise has been that our Kentucky Plant has had the
best year since we opened the plant in 2007" he reports.
Sun Fiberglass Pools has
introduced two new anniversary pool editions for the
2010 season as they are celebrating their 15th year.
These new models are value based, offering special LED
colored lights and a Spa Cove package with 6 adjustable
hydro therapy jets standard.
Prystupa says "The hot
summer of 2010 stimulated early season sales as
customers realized that if you wait to buy the pool
memorial day weekend it's too late to enjoy the pool all
season . A backyard pool isn't normally an impulse
purchase and it takes preparation to get a inground pool
constructed as building permits, homeowner association
approvals, special order options all take time to
process".
He continues, "When I'm
asked the question, When is the best time to build a
pool?, my answer is (usually) the fall. The
weather is better the ground is normally drier
minimizing the damage to the overall site, the
construction can be done quickly and the pool can be
used for the entire season the following spring, the
customers can install the landscaping and enjoy the pool
the whole summer".
The prices for the
industry have been flat for the last few years with the
economic conditions. The 2010 season surprised
many suppliers in the industry and inventory levels are
at an all time low, the wholesale prices on materials
will increase for the 2011 season as the manufacturer's
will need to re-supply the inventory . Manufacturer's
have announced several price increases for (the 2011)
season.
At Sun Fiberglass Pools,
they are offering an early buy program where the
customers can place their order with a small deposit and
they will hold the price as long as they take delivery
by March 31, 2011.
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Viking Pools - Fiberglass Cancun Model |
NATIONWIDE POOL BUILDERS SEES BIG
INCREASES
Billie Yost, of Viking Pools, another
nationwide retailer of fiberglass pools reports
that "(Their) pool leads are up 40% this year compared
to last year at this time. And although pool sales
aren't what they once were, we've noted an increase in
sales this year compared to 2008 and 2009."
R’nelle Lazlo, the national vice president of Blue Haven
Pools & Spas, the number-one ranked pool builder by Pool & Spa News, reports that "Our offices around the country report a lot of new
business from pent-up demand - all those homeowners who
want a pool, but who had been sitting on the fence”.
She
adds, "Now the homeowners have grown tired of waiting,
and they are taking the plunge and moving forward with
home-improvement projects like a new pool.
Homeowners still want the advantages that a private
backyard pool offers”.
Additionally Blue
Haven Pools, which operates 60 U.S. offices, notes that
“Our
construction pipeline around the country is filling up
with new projects from homeowners who want a new pool or
remodel with all the bells and whistles like handheld
remote controls, multicolor LED lighting, salt systems,
and virtually chlorine-free purification.”
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Above Ground Pools offer Family
Fun For Less Money |
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ONLINE SALES OF ABOVE GROUND
POOLS CONTINUE TO INCREASE
Tim Casey, Product manager at
Poolandspa.com's E-Commerce Division notes that,
"The sale of above ground pool kits online has
increased for us over 350% this year.
Simply put, 2008 and 2009 were really bad years
for online above ground pools sales nationwide.
The weather was bad and the economy sucked - so
what would you expect?"
He continues, "This year, in
2010, we have seen the sales of online above
ground pool kits soar to levels we never saw
before - even before the recession".
Jeff
Fausett, President and CEO of Aquatech Corp
says "Above Ground pool
kit (sales) online have increased for us over
400% this year. Let's face it....2008 and
2009 were really bad for online above ground
pools - and from what I have heard - for local
bricks-and-mortar above ground retailers as
well. The bad weather combined with the
bad economy wreaked havoc throughout the above
ground pool industry." |
Top Of the Line
Inground Pool With Hot Tub Spa |
NATIONWIDE POOL BUILDERS SEES
BIG INCREASES
Rebecca Robledo from Pool & Spa News reports
that "With the swimming season officially
over, industry experts expect new-pool sales for
2010 to close a few percentage points higher
than 2009. Estimates for (new) digs nationwide
are predicted to come in between 45,000 to
50,000 for the year compared with approximately
45,000 in 2009."
She adds,
"The Florida market, arguably the region hit
hardest during this recession, also saw some of
the strongest gains. Permit reports from the
state’s major markets show that new-pool
construction increased 12 percent in the
Sunshine State from January through August,
compared with the same period last year."
"Another
devastated market, the Phoenix metro area, also
may be rising, according to anecdotal
information. The Texas, a market that has fared
better than many other parts of the Sunbelt, saw
a 2010 increase of close to 7 percent over the
period of January through August in 2009. And
two areas with record-breaking rainfall last
summer - the Northeast and Midwest - saw
rebounds as well."
“I don’t
think anybody is calling for parades to go down
Broadway, but it is getting better,” said
Lawrence Caniglia, executive director of the
Northeast Pool & Spa Association, with the
Northeast being one of the absolute hardest hit
markets in the nation for pool sales over the
past two years.
Manuel
Perez de la Mesa, CEO of PoolCorp, the nation's
largest pool supply distributor said that “The
markets that were hardest hit (during the
recession) were areas like Florida, California,
Arizona and Las Vegas, where the pools are
largely concrete.”
Rebecca Robledo reports that "As far as
pool type went, vinyl and fiberglass held
steadier than their concrete counterparts, due
largely to the locations where they are popular.
Some say that fiberglass pools have actually
gained market share."
“Before the
recession, fiberglass pools made up the
fastest-growing sector in the industry,” said
Ashley Gill, CEO of Leisure Pools USA in San
Antonio. “Everything got derailed during those
recession years, but it seems to be bouncing
back (now).”
Jeff
Fausett, from Aquatech Corp. adds that "This
recovery’s going to be 5 percent at a time.
It’s not going to leap up 20 percent in one
year. Where new construction was once 250,000,
it fell down [drastically] and it’s going to
climb out 5,000 pools at a time each year.” |
Nice Inground Pool With A Hot Tub Spa |
SO WHAT DOES THIS MEAN TO
YOU?
If you are
one of the thousands of people who are sitting
"on the fence" waiting to finally get the
beautiful inground or above ground pool that you
have always wanted, there will probably never be
another time like this in your lifetime.
A time
where you can get a very high quality swimming
pool at the best possible price, to add to your
backyard. If you are not a victim of
foreclosure, and you are planning to stay in
your home like the vast majority of Americans,
now is definitely the time to invest in your
family's future...and take the plunge into all
the benefits of swimming pool ownership today. |
Related Links:
Go To Back To The
Online Newsletter Page
Swimming Pool & Swim Spa
Buyer's Guide
Special Thanks To The Folks Who Provided Information
For This Article:
Sun
Fiberglass Pools & Spas
Blue
Haven Pools
Viking Pools
Poolandspa.com Above Ground Pools
Aquatech Corp.
Pool & Spa News
Northeast Pool & Spa Association
Pool
Corp.
Leisure Pools USA
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article: "Article information provided by Poolandspa.com".
© Copyright 2010 by
Poolandspa.com Inc
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