Start A Pool Cleaning Business – The past five years have seen the overall pool cleaning services business increase by approximately 8.1% between 2017 and 2022. As of 2022, there are an estimated 84,128 businesses in this industry that has grown by 8% in just one year between 2021 and 2022 With an estimated market size of $6 billion and more than 90,000 employees, it’s the perfect time to get a piece of the pie.
This article contains the information that you will need to start a pool cleaning business that will generate profits and allow you to join this large industry.
Start A Pool Cleaning Business
The costs of starting a pool cleaning business can vary greatly depending on the area, clients and how big you want to start right away.
Swimming Pool Service Technician
According to three different sources (Truic, Starter Story, Broad) there is a wide range of projected startup costs:
The goal of any business is to generate income. Several factors play a role in determining the potential for a high income business such as the number of clients and the types of work required. Whether your clients are private homes or commercial facilities will have the same impact on earning potential as the weather; A longer winter means less work.
Before we jump into revenue in more detail, we have a pool cleaning template that you can use to calculate your revenue.
The first step to discovering the company’s potential for higher profit is to price your pool cleaning services correctly. Most companies make one mistake when they’re first starting out – they charge too little for the service.
Pool Service Software
The hope is that the price will outpace the competition and bring in more customers, and therefore more revenue. However, more often than not, this backfires because such low pricing cannot be sustained for a longer period of time. There are some pricing strategies that a swimming pool cleaning company can use.
Cost-Incremental Pricing: Known as markup pricing, it is a simple strategy where the price is a fixed percentage added to the total cost of providing the service. Submitting a good quote depends on working knowledge of the following information:
Market-based pricing: Another simple pricing strategy that companies in many industries use quite often. The idea is to find out what competitors in the area are charging with a simple internet search. Thumbtack says the national average for a weekly pool cleaning service is $86 a month or $1,032 a year. Specialized services can run as high as $400.
Gross profit target pricing: This approach causes companies to set a price based on their desired gross profit margin. A quick search online reveals that the gross profit margin for a swimming pool cleaning business is around 40%.
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Suppose, for example, that you know that the above material cost, salary, and operating expenses combined will be $100 for work performed. Calculating the sales price based on a hoped-for 40% gross profit margin has you taking $100 and dividing it by 60%(.6), or the costs percentage of the total price, to arrive at roughly $166.66 to your customer’s $170: the total price you should charge company.
An integral part of knowing potential revenue is estimating how many pools a technician can service in an hour. Based on this number and the exact price from the points above, potential revenue will begin to appear.
According to Pool Route Sales, on average, a technician should service about 20 pools within a day, with some going to 30 and others doing as few as 20. Commercial accounts will also take longer, so fewer Most of the pools are cleaned that day to be expected. Drive time must also be factored into the amount of rallies the technician will complete in a day, scheduling their route in the most appropriate manner.
Seasonality is an important component when it comes to calculating potential revenue and deciding on a business plan. As indicated by mHelpDesk, pool cleaning companies should try to take advantage of the off-season to their advantage.
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Businesses that operate in colder climates, such as the Midwest, must expect private homeowners to close their swimming pools by the end of summer. The upcoming change of seasons is the best time to squeeze in preparation for winter, something many homeowners fail to do, but it is a necessary, welcome boost to revenues for the coming winter months.
Commercial and indoor pools should become the focus of any pool cleaning business during the off-season. Since many of these types of contracts have to be lined up by the time summer draws to a close in hopes of keeping the revenue flowing.
With the hard work out of the way, you should be able to quickly estimate potential revenue for your pool cleaning business based on the project’s number of clients X the number of times their pool will be serviced X the price of the service.
3 months of pool season (This number will change depending on where you plan to open your business. For this example, we’ll be using the Midwest with a 3-month season).
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This offer is based solely on the pool cleaning service, but pools also require a little more work. Whether a customer will pay to open or close their pool along with other maintenance, this estimated number will fluctuate.
Some days the technician will clean more pools and some less, especially if maintenance is required which takes longer. One thing that can be expected is that although more than $100,000 in annual revenue is a perfectly acceptable way to start a profitable business, it is not sustainable in the long run. The business must go beyond the scope of the owner to reach a higher return and total return.
Earning potential is one of the essential pieces of information any new business owner will want to know; Swimming pool cleaning companies are no exception. In fact, according to these three sources (StartYourBusiness.com, SpringBoard, and ICSTD), here are the projected revenues for your pool cleaning service startup:
This pool cleaning financial projection template is a great help in determining potential revenue for the first five years of the business.
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Operating expenses, both fixed and variable, are part of doing business. This is an expense that cannot be overlooked and will affect the total amount of wages earned from the home.
Fixed expenses are those that will not change in amount from month to month and will not be concerned with the number of swimming pools being serviced. All variable expenses depend on the amount of work done during the month. The key is that the total amount of these expenses should not exceed more than 20% of revenue, although it may be higher at first.
Three different sources (GoCanvas, ICSTD and BizBuySell) give us the potential profit margin you can get with any profitable pool cleaning business.
Armed with all of this information, filling out the form with information such as start-up costs, projected revenues, and operating expenses should be easy.
Atlantis Pools & Spas Inc
A professional writer for the past two years, Agata has had a passion for writing since early childhood. Agata specializes in writing informative articles and blogs on various topics, and her focus is on personal finance.
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All good businesses start with a business plan that defines the business mission, examining the target market, competition, start-up costs, revenue projections, marketing plan, business structure, and more. The more time and effort you put into your pool service business plan, the better prepared you will be when it comes time to open up to customers. There are a number of templates available to make it easier for you, and they are absolutely essential if you plan to seek investors to help you get up and running.
At this point, you’ll want to focus on your market research. How many swimming pools in the area? How many pool cleaning companies are there in the area? How can you make yourself different to attract more customers? You’ll need to use a tool like KWFinder to do some local keyword research to help
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