Skimmer, a leading-edge pool service software provider, recently unveiled its “2024 State of Pool Service Report,” a comprehensive analysis based on the invaluable feedback from over 1,700 pool service professionals who responded. This report delves deep into key facets of the industry, such as market challenges, business structures, pricing strategies, technology adoption, and growth plans. Notably, the report culminates from survey responses from Skimmer’s platform of over 25,000 users as well as insights gleaned from broader market research.
Rising Tides of Costs and Strategic Business Responses
One of the more eye-opening aspects to the report, 73% of surveyed pool service professionals reported a commendable upswing in revenue in 2023 compared to the previous year. However, the buoyancy in revenue was tempered by a prevailing concern – rising costs. The majority identified escalating costs as the most formidable challenge faced in 2023, with an anticipatory nod to this trend persisting into the unfolding year of 2024.
A significant number of companies are gearing up to address these rising costs by contemplating price adjustments, with nearly 74% of pool professionals signaling their intention to implement price increases in the current year to sustain revenue streams.
In an exclusive interview with Talking Pools Podcast, Jack Nelson, CEO of Skimmer, underscored this critical issue, stating, “Everyone in the industry feels like costs are going to keep rising. It’s unfortunately an inevitability with sort of inflation. The question is, what are we going to do about it? It’s really interesting to see that most respondents said they were planning on raising prices in order to maintain profit margins.”
Workforce Dynamics and Marketing Strategies
Beyond the realms of financial strategies, the report casts its gaze on the dynamic workforce within the pool service industry. A noteworthy revelation is that 52% of respondents expressed an intent to expand their teams in 2024. This metric supports a positive indicator that most respondents believe the industry will continue to grow rather than contract.
One statistic you may find surprising, the report indicated that the majority of service technicians still rely heavily on the age-old method of word-of-mouth referrals, with only a modest 35% reporting that they’re investing in marketing. Nelson, who has experienced this sentiment first hand expressed that this way of thinking might be outdated.
“So many folks in the industry think they don’t need to pay for marketing because they get a lot of referrals,” said Nelson, “that’s true. You can grow your business that way, but you can grow it so much more quickly if you are spending a little bit of marketing. Because most of the industry is still not doing it, there’s a real chance to kind of take advantage of that. It’s a huge opportunity for ambitious pool service companies.”
Technology Integration: The Digital Oasis
In counterpoint to that, one area where the pool industry is embracing technology is business operations. One pivotal aspect of the report indicated an escalating integration of technology within the pool service industry. Approximately 75% of respondents revealed that they are leveraging software to streamline various aspects of their business operations. This underscores a growing acknowledgment of the pivotal role technology plays in enhancing efficiency, streamlining operations, and staying ahead in a competitive landscape.
“I think knowing your numbers is absolutely critical,” said Nelson, “so is embracing technology to operate your business more efficiently. That’s true whether it’s Skimmer or any other type of technology. I think there’s a tendency to underestimate the cost associated with doing business. Time is money. If you’re accepting a check from a customer because that customer refuses to get on ACH or credit card, there’s time associated with that cost. I think really understanding where you can automate different aspects of your business to save time and money is critical as costs continue to rise.”
Strategic Navigations for Future Growth
One noteworthy observation gleaned from the report is the success of companies that choose to bill separately for chemicals. Businesses charging customers separately for chemicals were on average more profitable than those who opted to include chemicals in the total price of service.
Including the price of chemicals has traditionally been a more straightforward, fixed-rate structure that is perhaps more easily grasped by pool owners and simplifies billing for pool professionals. However, the drawback lies in the susceptibility to frequent price adjustments due to significant fluctuations in chemical costs.
According to Skimmer’s data analysis, the model that charges extra for chemicals, known as the “plus chems” model, emerges as the most effective strategy in mitigating the impact of both fluctuating chemical costs and variations in weather patterns that might affect chemical usage, providing a robust buffer against such uncertainties.
Beyond immediate challenges, the report reveals a spectrum of strategic approaches pool service professionals are exploring for future growth. Notably, 33% of respondents expressed a nuanced interest in reducing their customer count while concurrently focusing on upselling more services and augmenting the overall value provided per pool serviced. Additionally, 43% are pinning their hopes on introducing operational efficiencies to curtail costs and bolster profitability.
Want to take a deeper dive? Read Skimmer’s 2024 State of Pool Service Report or listen to the interview on the Talking Pools Podcast.
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