Top shelf: 10 moneymaking retail products that customers can't get enough of—why they're selling and how you can cash in - The Money Issue

Pool & Spa News, May 23, 2003 by Rhonda J. Wilson

When Chris Callanan originally bought North Shore Pool Supply in Wakefield, Mass., the previous owner advised him not to reorder toys and games after the Fourth of July.

Yet, for more than 15 years, he's discovered that this product category sells well through the entire season, until it ends on Labor Day on the East Coast.

"People even come in at Christmastime, looking for gifts for friends or family who just bought a house with a pool," says Callanan.

Callanan's experience is not unique to retailers. Pools, hot tubs and backyard products have become big business despite the sluggish economy. The backyard now represents a relaxing retreat for most families to unwind, according to top retailers contacted by Pool & Spa News.

"In spite of the uncertainty in the economy and international turmoil, we feel secure at home," says Ian Fyffe, president of Harbor Hot Tubs in Sag Harbor, N.Y.

Other retailers have experienced the same upsurge in product interest. "Every article you pick up today is about making your backyard a nice place," says Scottie Payne, vice president of Arkansas Pools & Spas in Jonesboro, Ark. "Whether it's with outdoor kitchens, a pool or whatever, people appreciate being home with their families."

Many retailers predict that the cocooning of America will continue. "The baby boomers, who are the biggest population [segment], have had their kids and are at the highest earning capacity of their careers," says George P. Kazdin, president of Kazdin Pools and Spas in Southampton, N.Y. "Everyone is looking to de-stress from their hectic lifestyles."

The spending patterns of today's young adults also play a vital role in the increasing popularity of the backyard market. Disposable income has become more readily available to the offspring of baby boomers.

"Our customers' parents were savers with provisions for their families and children, and this money is rapidly being transferred," says Alice Goodall, owner and vice president of Goodall Pools in Camp Hill, Pa. "This creates an incredible opportunity for all of us in the leisure retail and sales marketplace."

To capitalize on the growing trend, many retailers suggest creating niche markets for pool and spa products that provide extra profit centers. For example, rather than just offering traditional backyard products such as wind chimes and hammocks, most now stock specialty items such as patio furniture with padded, adjustable chairs that lock into place for individual comfort settings--or impulse-buy toys and games for families with children.

"It gives you a way to acquire new clients in a competitive market and a broader opportunity to vertically market your existing client base," Kazdin says.

"If people are in your store and they have some time on their hands, they're going to be looking around," Callanan reveals. "If you have products they need, they will buy them. Build it and they will come."

Other retailers have been seeing customers gravitate toward timesaving merchandise such as automatic pool cleaners and all-in-one chemical test strips.

"Look at the grocery store perimeter," Goodall suggests. "It's loaded with convenience items that save time, not money. "Follow these trends and the bottom line prevails."

TOP 10 MONEYMAKING PRODUCTS

1 OVAL ABOVEGROUND POOL

Price range: $3,600 to $6,500.

What it offers: Aesthetically pleasing, yet affordable watering hole.

Why it sells: "The ovals cost about 20 percent more than the round aboveground pools," Payne says. "But they're shaped like a traditional long, narrow swimming pool, which is what appeals to customers."

The pitch: The aboveground pool provides a stay-at-home summer alternative to costly vacation plans.

2 SELF-CONTAINED, ROBOTIC POOL CLEANER

Price range: $1,300 to $2,300.

What it offers: Uses its own pump and filter to move across the pool to vacuum debris from the bottom, walls and waterline.

Why it sells: "It runs off a low-voltage transformer, so it's independent from the pool," Fyffe says. "Even if the pool system is not functional, this automatic cleaner will still operate."

The pitch: Some models feature built-in computer chips, which allow the cleaners to learn the dimensions and contours of any pool.

3 CHLORINATED TABLETS AND STICKS

Price range: $23 to $150, depending on quantity.

What they offer: Easy-to-use sanitizer that kills bacteria and algae.

Why they sell: "This isn't like buying a hammock; it's something you've got to have," Payne says. "It's like buying toothpaste."

The pitch: Customers, as well as service technicians, value it as a gotta-have-it product.

4 LIQUID SOLAR BLANKET

Price range: $10 to $12.

What it offers: Mock tropical fish release an evaporation inhibitor, which automatically floats to the pool surface.

Why it sells: "Having somewhat severe droughts in our marketplace, it is the perfect solution for customers who don't like to deal with a solar cover, or those who have irregularly shaped pools," Goodall says. "We love this product."