No place like home: gazebos can enhance the backyard's appeal—and your profits

Pool & Spa News, March 14, 2005 by Margot Carmichael Lester

Americans are spending more than ever on home-improvement projects--and it's not limited to interiors. They want to enhance the look and feel of their backyards, too.

Home-improvement expenditures rose 52 percent--from $153 billion in 1995 to $233 billion in 2003--according to a report by Harvard University's Joint Center for Housing Studies. Kitchens and bathrooms are the most popular remodeling projects, but outdoor upgrades also rank high on homeowners' wish lists.

"People are putting money into their yards now," says Eric O'Dell, director of marketing and sales at All-Seasons in Cherry Hill, N.J. "They see the backyard as the focal point for entertaining outside, and one aspect of that is a spa area."

But it's not just the spa that has some consumers buzzing. Retailers have found it profitable to offer additional spa-related amenities to help their clients enhance the great outdoors. A favorite choice: gazebos. By teaming a gazebo with a spa, responsive retailers can cash in on this lucrative trend.

The boom in outdoor rooms

Growth in homeownership and higher-income households has contributed to the surge in remodeling, the Harvard report finds. Favorable mortgage rates, increased equity and profitable refinancing also have generated extra cash for owners to use to better their homes.

The resultant customer base meshes perfectly with gazebo shoppers. "Gazebos are fairly expensive, so they're definitely geared toward a higher-end customer," says Noah Williams, sales manager at Watson's in Indianapolis.

Prices vary widely, depending largely on the gazebo's size and the amenities included in the project. Whereas a simple lattice gazebo is typically priced around $2,000, a more deluxe enclosure can run as high as $12,000.

"The market's been growing the last six years [due to the public's] increased awareness of spas," O'Dell notes. "The competition has stepped up, and so have consumers."

Gazebo purchases are almost always part of larger home-improvement investments, dealers say. "Most of our customers buy the enclosure with the spa," says Don Riling, sales manager at Seattle s Olympic Hot Tub Co. Seldom do we sell them aftermarket.

Others, including O'Dell, advocate a more restrained, wait-and-see attitude when promoting gazebos. This gives people more time to see how they will actually use their spas. "We tell our customers to buy and in stall the hot tub first, use it for a year and then decide if they want to install the gazebo," he says.

"They might choose something simple, like lattice, only to find out later that they want more protection," he adds. "This way, they'll know for sure if they need protection from a nosy neighbor, a brisk west wind--or if they want to see the stars."

Star qualities

With gazebos, there isn't a "one size fits all" sales philosophy. The variety of custom and prefabricated gazebo models on the market means there's bound to be a choice that fits the decor of every home.

"Most people in the Northwest prefer to sit in their hot tubs under the stars. Rain on your head while in the hot tub is a welcome refresher," Riling says. Those customers prefer a more open-air design that allows the elements in while keeping prying eyes out.

For the best of both worlds, many spa owners select gazebos that are cut in half on the diagonal, with a partial roof. Despite being in the Midwest, Williams says he sells a lot of these. The appeal is obvious: "It creates a guarded area, but still lets you see the stars at night," he explains.

When people come in looking for gazebos, most want natural-looking enclosures. The perennial favorite materials are redwood and cedar, dealers say. Though redwood is becoming less popular because of concerns over deforestation, both woods remain top sellers for the following reasons:

* Durability Their natural oils make them resistant to rot, and they hold up well in any sort of weather.

* Bug resistance. The oils also are natural insect repellants, so boring bugs aren't a problem as with other woods. Some customers even claim the scent keeps certain insects at bay.

* Low-maintenance finish. The natural cinnamon-colored heartwood ages nicely to a silver-gray. Customers who want to keep the original color can apply a transparent stain.

Other materials, including polymers, aluminum, vinyl and pressure-treated lumber, have their staunch supporters, too. "Many customers are looking for maintenance-free gazebos," O'Dell says. "That makes the decision clear."

Making the choice

While most gazebos are hassle-free for the owners, dealers agree that it's critical to consider the local climate when deciding which styles and materials to stock.

For instance, all mountable enclosures aren't created equal. If the mounting mechanism isn't strong enough or there aren't enough latches, the tops can fly off in a strong wind.

"A lot of hot tub companies just buy poorly built enclosures and suffer this type of misfortune in high winds and storms," Riling laments. If you operate in an area susceptible to fierce winds, be sure to investigate the security of the mounts before settling on a particular product line.