Now, seven years later, Modpools has offered one thousand swimming pools. It’s opened a second manufacturing facility, in Texas. And, it’s on monitor to make $20 million in income in 2022. With its delivery-friendly, relocatable swimming pools, Modpools has carved out a distinct segment within the international pool business — which is projected to develop $3.56 billion from 2019 to 2024, in keeping with a report by Technavio.
There’s been an uptick in demand for swimming pools in the course of the pandemic, when “the sudden shift in shopper habits favored spending on family enhancements and outside experiences, together with pool development,” in keeping with a September report by IBISWorld. Right this moment, the report says, “a rising share of pool tools gross sales is prone to be siphoned by on-line retailers,” with e-commerce accounting for 14.4% of annual development within the swimming pool tools business, from 2017 to 2022.
Modpools merchandise, offered direct-to-consumer by its web site, have been featured on TV exhibits corresponding to “Property Brothers” and “Tiny Home Nation.” They’re additionally versatile and can be utilized in company settings corresponding to business swimming pools and canine spas. “When every little thing exhibits up, it’s plug-and-play prepared,” Rathnam advised Trendy Retail. “I feel that’s what’s actually drawn folks to our product.”
Customization and know-how are key to Modpools’ enterprise mannequin. Clients can design their swimming pools on the corporate web site, selecting totally different colours and totally different sizes. The smallest pool, at 12 ft lengthy, begins at $28,500. The most important pool, at 40 ft lengthy, begins at $53,500. Purchasers can enhance the pool’s width and add spa seating and stairs for a further value. Then, as soon as they’ve their swimming pools, they’ll add WiFi and management it by an app on their telephones. The swimming pools take about eight to 18 weeks to show round, however as soon as they’re put in, “you might be utilizing it inside just a few days,” Rathnam mentioned.
To extend its manufacturing capabilities, Modpools opened a bigger facility in Houston, Texas, final fall. The corporate now has about 100 workers throughout its divisions and places. Whereas early phases of the corporate targeted on designing a prototype, “we’re in essence a producer now,” Rathnam mentioned.
There was lots to get proper. “Constructing a pool, perhaps from the surface, doesn’t look that sophisticated,” Rathnam mentioned. “However there’s actually a number of sophisticated steps which have lots to do with temperature and timing… Numerous it has been trial and error. It’s been so tough that I spotted that any main competitor coming in actually has an uphill battle.”
Above-ground swimming pools are usually less expensive than in-ground swimming pools, as a result of they don’t require as a lot development or landscaping. In accordance with HomeGuide, an in-ground swimming pool prices a mean of $35,000. An above-ground swimming pool, with set up, prices between $1,850 and $4,977, on common.
However becoming them into an current house requires some math. “Relying on the circumstances of the yard or environment and the place the pool is situated, the problem and design strategy will probably be totally different,” Ana Maria Torres, founding father of At Architects in New York Metropolis, mentioned in an electronic mail.
The pool market has a number of parts. Along with corporations that promote swimming pools, scorching tubs and swim spas, there are retailers that promote pool-related tools, cleansing chemical compounds, upkeep provides and pool and yard equipment. There are additionally constructing and development corporations that set up the pool, and repair corporations that restore and preserve the pool.
One of many largest gamers within the pool business, Pool Company, says it distributes greater than 160,000 nationwide model and personal label merchandise to about 100,000 wholesale clients all over the world. The corporate reported record-setting development final quarter, with web gross sales totaling $2.1 billion.
And above-ground swimming pools are particularly seeing newfound development. In 2021, there have been nearly 250,000 above-ground pool items offered — a rise of 8.7% from 2020 — in keeping with P.Okay. Information, Inc.
Typically, the pool market operates on a seasonal schedule. Firms extra closely inventory their stock within the late winter and early spring to be prepared for the late spring, summer season and early fall, in keeping with Michael Anastasiou, analysis affiliate at Cowen.
Whereas a lot of the world has grappled with record-breaking temperatures, current demand for swimming swimming pools could have much less to do with the warmth — and extra to do with a shift in shopper conduct, Anastasiou says. “I’d say a much bigger drive of the growth of swimming pools within the final a number of years has been from an incredible working-from-home/versatile work setting, fairly than any climate issues,” he advised Trendy Retail.
Rathnam needed Modpools to begin as a DTC enterprise as a result of “we determined we wanted full management of the product from starting to finish,” he mentioned. “We had been additionally uncertain of our revenue margins and needed to make full margin as a way to finance our development and never need to convey on traders.”
Going ahead, although, the corporate is on the lookout for a retail associate, ideally within the outside way of life, pool provide or scorching tub areas.
“With our new manufacturing facility up and operating and our new output capability doubling this 12 months, we’re taking a look at beginning a supplier/re-seller program,” Rathnam mentioned. “We envision this program to work greatest with landscapers, contractors and pool builders and plan to supply them an escalating low cost primarily based on what number of swimming pools they promote.”
