To be a pool builder is to keep one eye on the market and one eye on the clientele as you plan for the coming year. This spring, we mark the fourth anniversary of the historic surge that took pool and spa ownership to record levels. That momentous outpouring of passion for our products has abated to some extent, but retains much of its flow, and sales remain at elevated levels.
Still, throughout this report, respondents indicate they're keeping a watchful eye out for what many consider an inevitable downturn. Those who saw 2008 and 1993 firsthand have a hard time believing these days will last forever. For now, though, it remains a great time to be a pool builder.
Labor
Labor remains a hurdle for pool builders, as it is for all of the trades. It's a problem with many facets, and construction companies cope with it with different strategies to attract and retain good workers. This year's SOI survey details both the scope and severity of the situation.
Operations
Builders face a rapidly evolving economic landscape, and companies are adjusting quickly to respond to changes in supply, logistics, worker needs, product demand and consumer psychology, to name just a few mentioned below.
Carla Barrera, Director of Business Development & Elite Program, Lyon Financial
INDUSTRY SPOTLIGHT: LYON FINANCIAL
Financing can play a vital role in the success of your pool and spa business, as it provides customers with the means to start a backyard project that may otherwise be out of reach. The right financial partner can even help to accelerate your sales process, increase customer retention and generate new business. Carla Barrera, Director of Business Development & Elite Program at Lyon Financial, lends her expertise on the subject below.
AQUA: What kind of pool financing does Lyon Financial offer for 2024?
Carla Barrera, Lyon Financial: Lyon Financial offers unsecured loans for swimming pools and backyard living projects with no equity or appraisals required. With terms up to 30 years, low rates, and no prepayment penalties or consulting fees, we make the dream of a backyard escape a reality for homeowners, even without perfect credit.
AQUA: Why should builders offer financing to their customers?
CB: The right financing sells pools. It takes the sometimes-overwhelming cost of a pool project and breaks it into manageable payments for potential customers, meaning they’re more likely to become buyers. Offering loan options has never been more important than right now, when the economy is uncertain, and homeowners do not want to part with their cash or withdraw from their investments. Financing is also an effective tool for upselling. Affordable monthly payment examples easily demonstrate to customers how a slight increase in their monthly loan payments allows them to have the upgrades they really want.
AQUA: What sets Lyon apart from other financing options?
CB: Lyon provides an exceptional customer service experience for both builders and their clients because we know that reputation is everything. We are a true partner with both the builder and homeowner throughout construction, until the project is complete. Unlike other financing options, we pay the builder directly to ensure that funds are dispersed in a timely manner; the homeowner’s funds are tied to their pool project. Builders won’t lose a project because the homeowner has decided to take that cash and buy a car, take a trip to Europe, or save funds for a rainy day. We also keep our service fees manageable. Some other finance options charge up to 6% of the loan amount in fees just to process the loan application and turn funds over to the homeowner — that’s $6,000 for a $100,000 loan!
AQUA: Why is it important for builders to work with a financial consultant specific to their industry?
CB: This year is Lyon’s 45th anniversary. Since 1979, we have specialized in pool, outdoor living, and home improvement financing, and we understand the industry inside and out like no other finance option does. We can assist homeowners and their builders with just about any issue that arises. We understand the unique challenges of the industry, and we are a true partner. We know what goes into building a pool and that makes us a better resource for both builders and homeowners.
AQUA: What advice would you offer to builders whose clients are hesitant to move forward with their projects due to cost?
CB: Sell a payment, not a pool! Drive home the fact that while rates will fluctuate, pool prices will only continue to increase. With Lyon’s 30-year term, homeowners don’t have to put their pool dreams on hold. They can stretch that payment out over a longer period, paying the loan off early when they are able to avoid additional interest. There are never any prepayment penalties on any of our loan options. Once they’re swimming and making memories with loved ones, their only regret will be that they didn’t get a pool sooner.
