Diving in

Australians love a backyard pool, which is good news for the ever-growing pool care sector that combines retail with maintenance.

Nearly 2.7 million Australians have a house with a swimming pool, according to the most recent Roy Morgan survey (2018). That translates to about 13 percent of the Australian population enjoying a backyard splash.

And according to a report on Linkedin, an estimated 25,000 new inground pools are built each year.

Lindsay McGrath, CEO of SPASA, the swimming pool and spa industry association in Australia, says there is now a six- to 12-month wait for most pools and spas.

“The industry has never before seen this level of demand. There’s been a 50 percent increase in demand for the last two years, with capacity hit at 30 to 35 percent over a normal year,” he points out.

And there’s no sign of the demand easing as Aussies continue to fulfil their dream of a backyard pool – even in smaller household settings. “The trends are swim spas and plunge pools as the smaller block size demographic has exploded and householders want a beautiful piece of blue in their backyard. Recent events have increased the desire for a happier and healthier community atmosphere a pool or spa brings to families. Everyone wants that everyday-cation feeling,” Lindsay says.

Claudia Burgio-Ficca, author of the Swimming Pool and Spa Equipment Stores in Australia report November 2021, suggests that while the sector is predicted to face smooth waters ahead, with a rise in revenue, profitability will be squeezed amid increasing competition in the sector.

In the report, produced by IBISWorld, the author predicts a positive sentiment will help the pool care stores.

A rising tide?

The pool care retail scene is a highly fragmented marketplace with Clark Rubber, Poolwerx and Swimart leading the way. However, the estimated combined market share of the three brands accounts for only about 25 percent of the market.

Aside from the bricks and mortar stores providing pool accessories and tools for home maintenance, there’s a wave of mobile van franchisees and technicians servicing pools – both residential and commercial.

Clark Rubber

How many customers will your franchisees service in 2022?

Pool servicing represents a massive opportunity for Clark Rubber, not just through the store network but also the mobile service vans. The target is to service at least 100,000 pools over 2022.

What are the top maintenance concerns for customers?

The biggest concerns for pool owners are managing the water chemistry and maintaining pool equipment. Ensuring pool and spa water is balanced, safe and healthy to swim, and keeping equipment well maintained and clean goes hand in hand with good pool water management.

How often do technicians clean a pool?

Usually a customer gets their pool cleaned once per month, but over the summer months, or if the pool is used regularly, it happens every two weeks.

How long does it take to clean a pool?

The average pool takes between 45 and 60 mins to clean.

How many clients could a franchisee service in a week?

With one technician a store could do 30 to 40 visits per week.

How do franchisees get new clients?

Social advertising/word of mouth/data collected through software called pooltrackr that registers a customer when they come into a Clark Rubber store to get their pool or spa water analysis.

What about environmental concerns?

After severe weather, pools need more attention. Not just cleaning debris, but balancing the pool chemistry after heavy rain or dusty winds blow small particles into the pool.

What will be the capital investment for a franchisee in 2022?

Depends on location, but between $250,000 and $600,000. But a mobile service van could be as little as $40,000.

Jim’s Pool Care

How many customers will your franchisees service in 2022?

Approximately 20,000 pool owners. We receive on average 10,000 new customer enquiries per year.

What are the top maintenance concerns for customers?

Water balance and knowing the pool is safe to swim for their kids, friends and family. There has been increased demand for pool minerals such as magnesium over the last few years.

How often do technicians clean a pool?

We usually service regular customers every month but some customers require fortnightly or even weekly services.

How long does it take to clean a pool?

We allow up to one hour per job but it does depend on the state of the pool and the local environment such as trees, gardens and extreme weather events.

How many clients could a franchisee service in a week?

Most mobile franchisees have a goal of 40 weekly regular customer services, but many will do less and allow time for urgent call-outs for new customers, such as green pools and equipment failures.

How do franchisees get new clients?

Jim’s Pool Care runs a national and local marketing (LAM) program. This is always complemented with franchisees following their own LAM plans.

What about environmental concerns?

There is a range of water-saving measures such as pool blankets and covers and suppliers are always innovating technology. Many products are now connected to Bluetooth, Wi-Fi and the Internet of Things (IOT). This means customers can check their pool from anywhere, turn heaters, waterfalls and lighting on and off from their phones and keep a general eye on water balance.

What will be the capital investment for a franchisee in 2022?

$69,900. This includes the franchise fee and a $25,000 start-up package. Franchisees just need to buy/lease a suitable vehicle.

A great supplier network enables Jim’s to run orders with a “just in time” strategy so they do not hold too much stock. Franchisees need to invest in a modern vehicle and keep up to date with the brand and sign writing. Often the largest capital cost besides their vehicle and water testing equipment is a fresh set of uniforms each year. 

Poolwerx

How many customers will your franchisees service in 2022?

In 2021, Poolwerx serviced 400,000 clients across all states in Australia and New Zealand.

What are the top maintenance concerns for customers?

Water balance, pH alkalinity and chlorine levels are the top three areas of concern for clients. Also, the issue of pool discolouration – such as a pool turning green in colour due to algae – is a major concern, and there is a big interest in pool blankets and rollers to reduce heat loss and evaporation.

How often do technicians clean a pool?

Technicians conduct weekly cleanings on commercial pools and fortnightly or monthly cleans on residential pools.

How long does it take to clean a pool?

It takes approximately 45 minutes to one hour for a standard service.

How many clients could a franchisee service in a week?

A Poolwerx franchise partner can service approximately 40 to 50 clients per week.

How do franchisees get new clients?

A large portion of referrals come from existing Poolwerx clients as well as direct marketing campaigns to pool owners via the exclusive Pool Point data system. A digital and social media presence, industry tenders, and preferred supplier relationships with commercial businesses are ways to acquire new clients.

What about environmental concerns?

Poolwerx has a major focus on energy-saving initiatives, creating variable speed pumps with suppliers that save over $700 per year in energy usage. The pool blankets save water by reducing evaporation through capturing solar energy to naturally heat the pool. Poolwerx has a commitment to utilising environmentfriendly or natural chemicals in all its products.

What will be the capital investment for a franchisee in 2022?

A Poolwerx franchise starts at $150,000 turnkey for a new franchise and up to $1 million for a resale of a large existing franchise with multiple retail stores and service vans.

KEY POOLCARE TRENDS

Covid-related travel restrictions have fuelled demand for industry products Challenging trading conditions and increasing competition have reduced industry profitability Competition from external players has placed downward pressure on product prices

Revenue is projected to benefit from mandatory water-saving devices and practices Stronger price-based competition among operators is likely to erode profis Consumer sentiment and income growth is likely to support demand for industry products The Covid-19 pandemic has led consumers to reallocate surplus funds to home improvement projects

Source: Swimming Pool and Spa Equipment Stores in Australia, November 2021, IBISWorld.

Swimart

How many customers will your franchisees service in 2022?

Swimart’s franchise partners currently service almost 80 different locations across Australia and New Zealand. That number will reach 90 local communities in 2022.

What are the top maintenance concerns for customers?

Green pool recovery given the wet, warm start to last year’s summer. This was heightened by climate driver La Niña producing a relatively cool, damp and stormy period for much of Australia’s north and east.

Servicing and upgrading filtration and sanitisation equipment, given more people have been using their swimming pool during Covid-related travel restrictions.

Maintaining hygienic water quality to ensure bathers are safe and swimming conditions are ideal.

How often do technicians clean a pool?

Initial once-off pool cleans are popular for new pool owners and then customers typically choose between weekly, fortnightly or monthly cycles. Commercial pools (resorts, aged care facilities, learn-to-swim schools, holiday homes, etc.) require multiple services in a week due to higher bather loads and council requirements.

How long does it take to clean a pool?

Domestic pool cleaning ranges from 30 to 45 minutes; commercial pools take from 2 to 3 hours.

Extreme weather events, faulty equipment, high bather loads, and incorrect chemical levels are just some of the factors that contribute to longer servicing requirements.

How many clients could a franchisee service in a week?

This depends on a few factors – number of staff, size of the pool, size of territory with rural technicians travelling longer distances – but a single technician can service 25 to 30 domestic swimming pools each week.

How do franchisees get new clients?

Swimart has a strong brand identity due to nearly 40 years of industry experience. Because of that, referrals from existing customer bases, local community engagement and an engaging social media strategy consistently attract new customers – while retaining existing ones. Many franchisees have been with Swimart for decades, so that long tenure has led to enduring relationships with customers and the wider community.

What about environmental concerns?

Swimart actively educates customers on using the right products to prevent water loss – ie reducing evaporation with a pool cover or liquid blanket, maintaining equipment to prevent leaks – while also advocating equipment that is environmentally conscious.

Waterco, Swimart’s franchisor, is one of the world’s leading manufacturers of water- and energy-efficient pool, spa and water treatment equipment. Many of its filtration and sanitisation innovations have achieved the coveted Climate Care Certified stamp of approval, which is an industry-led, independently audited sustainability program.

Consequently, Swimart’s franchise partners have access to best-practice water-saving systems and solutions – all of which are passed on to customers.

What will be the capital investment for a franchisee in 2022?

This depends on whether someone is setting up a greenfield franchise or investing in an existing franchise. The former depends on the size of the premises and the extent of fitout required while the latter factors in the value of plant, equipment, goodwill and going concern. Typically, an average new store costs between $150,000 and $250,000 to establish. 