I read an article on the internet a few days ago about the slump in sales of RVs. For 2008 sales were off 33% and in 2009 the number could be even higher than 60%. Dealers across the US are closing their doors and two of the RV manufacturers have filed for Chapter 11 bankruptcy. Hmmm? Does this sound familiar?
I read an article on the internet a few days ago about the slump in sales of RVs. For 2008 sales were off 33% and in 2009 the number could be even higher than 60%. Dealers across the US are closing their doors and two of the RV manufacturers have filed for Chapter 11 bankruptcy. Hmmm? Does this sound familiar?
The bad news of course is that our industry has also taken a huge hit in the current economic climate. We hear of pool dealers in the Sun Belt going out of business, sales off more than 50%, etc. The good news is that there are a few things that make our industry different from the RV industry and why I don’t think we are going the same way.
First, in 2008, the RV industry was hit by gas prices of over $4.00 per gallon – just the thing that helped drive whatever business we did last year, for people to build pools so they didn’t have to contend with transportation costs – think Staycation! Second, even though the real estate market took a huge dive in the past year, the savvy home owner knows that having a pool in her backyard actually increases the value of her home by 8% (NRA statistical report 2004). The last I checked, having a $100,000 RV in the driveway didn’t increase the value of anybody’s home. Not to mention that the value of an RV quickly depreciates in a few years, whereas a well-maintained pool does not. Third, as the economy recovers and more people are back to work, there will be more traffic on the roads blocking the path for all those beautiful but expensive RVs from getting where they want to go. Meantime, the pool owner sits back in his lounge chair by the pool, listens to the ball game while his kids play, and smirks at the traffic reports on the backups on I-95 in CT, or the Garden State Parkway in NJ.
Staycation is a great term to use in marketing our category. There is plenty of value we can talk about.
There is still demand for new pools while clearly the percentage is far below the volume many of us had become accustomed. The real issue here is unlike any of the previous recessions in my lifetime credit has dried up. In the past there was always credit available to those that had a steady job and the ability to pay. Even in the 78-81 recession there was credit of course the interest was sky high with mortgages at nearly 17%. However with savy negotiating with a lender and the pool dealer could arrange to by down the rate to 7% by providing the lender a 10% discount on the payout to the dealer. Despite the TARP monies intended to be loaned out and restart the economy which was given to the banks by our all to generous with our precious tax dollars Government the credit engine is not running. The Banks need to be called on the carpet to explain why and need to get back to lending honest hard working Americans money to keep our econmomy from diving even deeper.
I’m all for freedom of speech and public dissent/discord, but for God’s sake, this is a professional trade association website. I’d like to think that the discussions to be found in here would be a bit higher minded than this sort of low brow political diatribe.
Isn’t that sort of nonsense best left to lonely home bound spouses with too much time on their hands and nobody to listen to them except small children?
Honestly, in this economic environment, any builder with any business sense at all would be focussing his or her efforts on RENOVATION and V.G.B. compliance. The reason is simple; you can’t sell your way out of your home and debt issues in this real estate market or economic climate so a homeowners best investment lies in a savvy renovation of his existing pool and equipment in anticipation of a recovering market. Similarly, eco-friendly sales are always sound in today’s economy although I feel our organization has missed the boat vis a vis; procuring government grant money for homeowners who make eco-friendly upgrades such as salt generators, Hi-E heaters/ heat pumps, solar, etc.
Home buyers are becoming increasingly aware of the hidden costs of poor purchasing decisions and nothing will queer the deal of a home sale than an outrageously substandard swimming pool in the backyard.
While I’m at it here…. let’s talk STAYCATION.
It’s a not too clever pun that may work for short sales like amusement parks, museums and convenience stores but let’s face it, a pool in the backyard does little to quell the dreams of workaday homeowners to basque in the sun on some FOREIGN stretch of sand. I think it is far more socially responsible and market savvy to market HOME BOUND AQUATIC LEISURE as a family friendly way to promote GOOD HEALTH and physical fitness.
For the record, have any of you builders out there ever closed a deal on $60K pool because Mr. Smith is tired of the shore house he’s been renting for the last 20 years?
Michael Phelps is a perfect example. Nevermind that he got caught sucking a bong instead of a snorkel tube. His loss could easily be our gain. Here is a man that is just dying for some good publicity and an invitation back into the world of corporate sponsorship. I’m certain that he could get himself booked all over the morning news program circuit to promote safe aquatic leisure at home which would do wonders to rehab his public image and just imagine the number of V.G.B. compliance sales that could be made in the wake of a publicity campaign involving someone with that high a profile, if you’ll pardon the pun.
But I still think it’s better than STAYCATION!
As for Mr. Gorlins comments regarding STAYCATIONS;
The yearly cost of professionally opening and closing a pool in addition to utilities, chemicals and repairs when necessary are likely to cost the average consumer the same amount he would pay for his week long family vacation at the Jersey shore. If said consumer has a maintenance contract for his pool, this would on average pay the airfare for his family to go to someplace a little more exotic. There are so many holes in the STAYCATION myth that I can imagine potential customers rolling their eyes in disgust when some self serving salesman tries to sell them a line of goods that a $20K-60K investment in his backyard will make his wife and children stop asking for a trip to Disney World or Paradise Island Bahamas so they can swim with jailed dolphins. Hell, I want to swim with the jailed dolphins!
In summation, I think we would all do better as contractors and consumers if we stuck to the legitimate physical and sociological benefits of SAFE aquatic leisure activities and the economic value of a safe, efficient, ENVIRONMENTALLY FRIENDLY swimming facility.
Wishing you and yours a very happy and prosperous new year !
Like what you did. Here’s wishing you and yours a very happy and prosperous new year !
Came clueless, left worried. Thanks for the post.