Arizona is HOT and having swimming pools is a must! Being a pool owner myself, I pay to have my pool maintained monthly, with service provided weekly. As a Realtor here, I always recommend pool services to my clients who buy homes with pools. We want to take over an existing pool service route with 53 clients under contract at $150 per month per client, delivering receivables of $7950 per month. The purchase price of this customer base and supplies is $78,000. There is very little overhead, mainly gas, & chemicals.
All clients pay in advance monthly. Chemicals are extra, so adjustments are made and invoiced, per client. Margins are approximately 30-45% overall on all upsold products. Our plan is to continuously grow our customer base by offering discounted start up service plans for new customers; offering one free week of service for referrals from existing customers and other means.
This is a pretty simple and straightforward business: Delivering weekly maintenance and pool cleaning services to existing and new customers at $150 per month. Each pool usually takes about 15-20 minutes to service each week. With the current 53 customers under contract, that equates to 10 pools per day, 5 days per week. Our business plan calls for us to expand the customer base by 20% or an additional 22 customers equalling 75 customers under contract. We're confident we can do 15 pools per day , five days a week for a total of 75 pools per week.
Phase 2 of our business plan is to hire an additional independent contractor to service 12 pools per day times 5 days for an additional 60 pools per week, bringing our total customer base to 135 under contract. We anticipate that to generate $20,250.00 of gross revenue per month. At a conservative 35% profit margin, we anticipate this to deliver $7,087.00 in profit per month or $85,050.00 annually. There are no additional employees at the moment and if extra help is needed, all pool technicians will be 1099 independent contractors, so no overhead or carry costs with that regard.
A preferred , third option is to purchase the 96 total customers at $135,000. Initial receivables, just maintaining and servicing these existing customers equates to $14,400 per month. This would include the initial 53 customers plus an additional 43 under contract. And remember! There is added revenue for the chemicals used at each property, delivering a margin of about 35% - 50% .
There would be one independent contractor servicing the 43 customers in the Tempe, Mesa and Gilbert area. Growth and expansion plans would remain the same as described above. The larger route of 53 customers would be serviced by myself and my son as owner operators.
Pros to buying pool service routes:
Recurring Revenue,
Home-Based Business Model