TODAYS NEWS IS GREAT FOR MAJOR REVENUE INCREASES...
As a pool builder I can tell you that it cost us $1500 just to dig the pool plus $50/hour for the dump trucks to haul off the dirt. So on average to dig the pool it cost us about $1800. Not only that but after the pool is finished we pay a company to come in and do a full cleanup of the job site and spread a load of dirt around the pool. This usually cost us $400 for labor and $100 for the dirt. So you can see it cost us (LABOR)for digging the pool and clean up $2200/pool. I said yesterday the avergage pool we build cost $45,000 with a profit margin of 23-25%. At 25% that is $11,250 profit on each pool. Now they just added $2,200 more profit on each pool by owning their own company to do these 2 jobs. This one move just raised there profit margins to 30%. If they build 50 pools a year that is another $110,000 net profit added to the bottom line. Not to mention in the news it said they will get more revenue from the company by just being in the overall construction business.
Not only that but they can now offer full landscaping service. The one thing we have to do is send our customers to Hooglands Nursey for landscaping. The average job is ususlly around $3000 to come in and put sod around the pool, plant some palm trees around the pool. So now they have another revenue stream coming in from that part of the business. Also like I said yesterday the real money is in the weekly pool maintenances. It said in the news today they will get their monthly pool service plans. BINGO! That is where the big money is each and every month. Go back and read my post that is sticky above.
This company is not only going acquire/merger with pool companies, now we see they are going to own the sub contractors. How many we do not know yet. Let see they can still acquire a company that does all the plumbing and steel in the pools, the sub that pours the concrete decks, the sub that does the tile and coping, and perhaps the sub that shoots the gunite. Todays news alone just added 5% profit to each pool. You can only imagine what happens when they own all the subs to do each phase of the pool. I had a feeling this is what they were doing. First buy up as many of the subcontractors companies and then get the struggling pool stores and show them how to make big money. Also by them owning all the subs there pricing pricing will crush the other pool builders simply because they don't have to hire out subs for every stage of the pool building. Talking about corning the market. And they can do this over a very large part of central Texas. We are talking being able to do 500-700 pool per year. Is this possible, oh yeah Blue Haven Pool in 2009 built 165 pools in our area with a population of 300,000 people. If this is what Jose is doing, this will be a gold mine as profits will soar.
Take care my friends,
Mike
