If you’re considering starting a swimming pool business, you may wonder what sort of profits you can make — and if you’re already running one, you may be interested in how you could boost your profitability. While the potential of each business depends on several factors, there are some reliable equations you can use to forecast profitability based on certain metrics. This can be a useful tool for setting future goals, as well as evaluating current state.
Below, we’ll share some average startup costs that will be important for new swimming pool business owners to account for, followed by information about average profit margins and revenue, plus tips for boosting both. We’ll focus on starting a swimming pool cleaning business, as that is the most common and easiest arena to start in as a first-time pool business owner.
Swimming Pool Business Startup Costs
Startup costs can vary depending on your client base, business size, and location, but Truic, Starter Story, and Broadly estimate these minimum, maximum, and average startup costs:
- Minimum: $2,000
- Maximum: $35,923
- Average: $19,267
Most of these costs will go toward:
- Pool-cleaning chemicals such as disinfectants and sanitizing products
- Water-testing kits
- Skimmers and brushes
- Vacuums
- Rakes
- Vehicle or trailer to transport equipment
- Business insurance and certifications
- Advertising
- Uniforms with company logo
Swimming Pool Business Profit Margins and Annual Revenue
Potential revenue for a swimming pool cleaning business is based on the number of customers served, the price of the service, and the number of times their pool will be serviced. For example, 15 pools cleaned per day, 5 days per week, at an average price of $80, equals $24,000 of revenue per month. Remember, this is an estimate, so you’ll need to leave plenty of wiggle room. According to StartingYourBusiness.com, SpringBoard, and the International Centre for Trade and Sustainable Development (ICSTD), swimming pool businesses can expect these minimum, maximum, and average annual revenue levels:
- Minimum: $57,000
- Maximum: $124,800
- Average: $75,000
Profit margins also vary greatly depending on factors like the size of your swimming pool business, its location, and services offered. GoCanvas, ICSTD, and BizBuySell estimate these minimum, maximum, and average profit margins for pool cleaning businesses:
- Minimum: 15%
- Maximum: 42%
- Average: 40%
5 Tips for Boosting Your Swimming Pool Business Profitability
To increase profitability, swimming pool business owners should focus on increasing revenue while keeping expenses low. Here are a few tips:
- Streamline your business by adopting technology like scheduling software, inventory management, and automated billing to minimize labor and administrative costs.
- Provide phenomenal customer service and offer loyalty rewards and discounts to build and maintain your customer base — returning customers often account for more revenue than new customers.
- Market effectively using email lists, social media, and following up on leads and referrals promptly.
- Consider adding to your service offerings to include repairs or even new pool construction. These services can usually be offered at a higher markup than pool cleaning.
- Use a service routing and scheduling service to reduce fuel costs and time spent on travel.
RB’s software is designed for swimming pool businesses and offers all of these features and more. We’ve spent decades learning directly from our customers so we can offer the most comprehensive pool and spa business software possible. From point-of-sale and inventory management to marketing, scheduling, and service routing, our software offers everything you need to keep your business running at maximum efficiency. With the time and money saved using our bespoke pool and spa business software, you’re guaranteed to make your investment back. Learn how in our eBook, 4 Ways to Save Money and Boost Sales with RB Pool Business Software. If you’re ready to see the software in action, schedule a no-strings-attached demo with us today.
