Why Vinyl Is Better Than Gunite

Pool & Spa News - Nov 1, 2004 by Bob Dumas

Making waves: the new and improved vinyl-liner pool is grabbing a bigger piece of the market—and that's making some of the competition nervous

It's right there on the Web site of a gunite builder: "Vinyl pools are bad."

The headline on the page reads, "Vinyl-liner Pools? You Can't Be Serious!" Then it adds a piece of advice: "Just Say NO to Vinyl." The page goes on to list five reasons to avoid vinyl-liner pools. The fact that some of these claims are simply not true would likely be lost on the casual pool shopper.

Why would a successful, reputable gunite pool-building company feel the need to spread misinformation about not just a particular rival, but an entire industry? It's likely the answer lies in the fact that the vinyl-liner pool industry has come a long way in just a few years. Improved materials, technologies and designs have allowed package pool builders to emulate just about anything a gunite competitor can do--and usually for significantly less money. That's bound to make sonic guniters nervous.

"[Gunite is very popular] in the Southern states," says David Hall, CEO of Sentry Pools, a package pool dealer in Moline, Ill. "But at the same time, they should be a little fearful because [vinyl-liner pools] could easily penetrate the market with their value costs."

Indeed, a recent survey conducted exclusively for Pool & Spa News by Readex Inc. in Stillwater, Minn., shows that vinyl-liner pools are more popular with consumers than ever before. A majority of dealers are predicting an upswing in their revenues for 2004.

Approximately 52 percent of package pool dealers questioned for the survey say their revenues will increase, while 26 percent indicate they will remain the same. Only 6 percent predict a drop in sales.

"I think [the business] is growing unbelievably," says Bill Leffingwell, president of Leffingwell Pools, a package pool dealer in Norwich, Conn. "We used to do 23 pools a year; now we are doing 55. I can't find enough help to keep up."

Eye of the beholder

Not surprisingly, the survey's dealer respondents say that consumer perceptions of package pools have improved. Fifty-three percent report that shoppers have either a "very positive" or "somewhat positive" image of the product; 35 percent assert that there's some sort of negative perception. The survey also reveals that 49 percent believe package pools are more popular with consumers now compared with five years ago, while 39 percent say they are less popular and 21 percent say things are about the same.

Today, people have more resources at their disposal to research buying decisions, and package pool dealers say they welcome the scrutiny. In fact, dealers believe that modern consumers are the savviest yet. Thanks to the Internet, they know much more about a product before they enter a showroom.

"I field a number of calls [from people] asking about the difference between gunite and vinyl," says Barry Hamilton, a sales executive with Aloha Pools & Spas in North Little Rock, Ark. "Many of them already know a lot about [package pools] because they've researched them."

Improvements such as polymer walls; thicker, more tear-resistant liners; and better pool design choices are some of the things that appeal to consumers. Nevertheless, in some areas, especially the South, gunite remains king. Therefore, to make a sale, vinyl-liner pool professionals need to cut through layers of preconceived notions about the products.

"A lot of customers here in Texas perceive them as being inferior and more or less an economy pool," explains Roy Mendelssohn, owner of Aqua-Tech Pools, a vinyl-liner installer in San Marcos.

Vinyl-liner pools certainly cost less than gunite. According to the survey, about 22 percent say the cost of their pools ranges between $50,000 and $99,000. But the majority (61 percent) say their prices fall between the $20,000 and $49,000 mark.

Mendelssohn says it's not the price alone that sells the package pool--it's what you get for the price. He believes that if you can convince people to stand still long enough to learn about package pools, you can convert them.

"They can be convinced," he says. "I show them the advantages: the lower chemical costs, costly resurfacing vs. a liner. I can save them a couple of thousand dollars."

Consumers may be taking their vinyl-liner installations as seriously as their neighboring gunite pool owners. In fact, 78 percent of those surveyed indicate that the proportion of the total budget spent on landscaping around a vinyl-liner pool is more than it was five years ago.

"More and more people are asking for the whole package: the pool, decking, fencing and landscaping," says Keith Cowell, owner of Prestige Pools, a vinyl-liner dealer in Raleigh, N.C.

The survey shows that nearly 15 percent of the entire cost of a vinyl-liner installation is spent on landscaping these days--hardly an "economy" pool project. If such data doesn't convince skeptical shoppers, a look at all the options and accessories that now are part of the package pool segment might.

Extras, extras!

In its early stages, the package pool was a simple rectangle or oval. It didn't have a lot of bells and whistles to give it a technological or aesthetic jolt. Vinyl-liner pool dealers now oiler add-ons heretofore considered to be an exclusive part of the gunite domain.

The Pool & Spa News survey shows an overwhelming number of design and accessory packages, which are being offered to buyers. For example, 76 percent of vinyl-liner pool pros say they sell automation products; 61 percent offer free-form shapes; and 45 percent sell specialized coping. Twenty-two percent say they build vinyl-liner vanishing-edge pools, and 21 percent say their installations include landscaping.

"We do it all," Leffingwell says. "Last year, we did a couple [of pools] that went over $100,000. They included landscaping, paver stones, a sitting wall, a fence, a spillover spa--and we did all the electrical. Plus, it was totally automated and had an in-floor cleaning unit."

The in-floor cleaning system is a relatively new add-on for package pools, Leffingwell says, noting that until this year, he'd only sold a couple. So far in 2004, his company has installed 15.

Another new option that consumers are looking fi3r is the salt-pool chlorinator, say some dealers. It's another product more commonly associated with gunite pools. "Our pools averaged about $2,500 more this year with all the new add-ons," Cowell says. "But the big thing this year has been the [salt-pool chlorinator]. About 40 percent of my pools have them."

Waterfeatures--long a cornerstone of gunite building--now are a staple of vinyl-liner pools as well. Survey respondents say 23 percent of their pools sport a waterfeature, and 11.5 percent say they include a spillover spa. These figures are up considerably. Five years ago, vinyl-liner installers included a waterfeature only about 14 percent of the time and a spillover spa about 7 percent of the time.

Cowell says his customers like deck jets. "About 15 percent of my pools get those now," he reports. "Two years ago I didn't do any."

A developing pattern

In years past, liner pattern choices were limited. No longer. Manufacturers now offer so many pattern options, it can be confounding to consumers.

"We have 48 to 50 patterns to choose from, which is too many," Hamilton says. "It's nice to have choices, but it can get confusing. Sometimes confusion can chase [potential customers] off."

Nonetheless, the Pool & Spa News survey indicates that package pool dealers believe pattern options are key. In fact, 63 percent say they are "very important," while 15 percent say they are "important." Not a single respondent says they are "not important at all."

Leffingwell considers liner patterns a vital selling tool. "A brochure will show only five different liners, but I have 18," he says. "And I will bring samples to [the customer's] house and let them go over them."

Who selects the liner pattern? When it comes to couples choosing a pool liner, survey respondents say they've never seen the male make the decision alone. The female picks 68 percent of the time, and couples pick the pattern together 32 percent of the time.

Cowell is not surprised by the data. He notes that when it comes to pattern choices, the husband usually defers to the wife.

Leffingwell also acknowledges gender-specific buying traits. "You go over the price with the men, but you go over colors and liners and decks with the women," he says. "The husband is more concerned about elevations and grades and where the equipment pad will sit. But you sell to the woman."

Package/Vinyl Pool
Popularity

How would you describe the popularity
of package/vinyl-liner pools compared with
five years ago?

LESS POPULAR NOW      30%
ABOUT THE SAME        21%
MORE POPULAR NOW      49%

Note: Table made from pie chart.

Typical Consumer's
Perception

What do you think the typical consumer's
perception is of package/vinyl-liner pools?

NEGATIVE              35%
NEUTRAL               12%
POSITIVE              53%

Note: Table made from pie chart.

Options Offered

Which of these options does
your company offer with its
package/vinyl liner pools?

automation products    76%
   customized steps    68%
   free-form shapes    61%
        landscaping    21%
 specialized coping    45%
      tile surround    27%
     vanishing edge    22%

Note: Table made from bar graph.

Vinyl-Liner Replacement

Has your company ever replaced a vinyl liner
on an existing package/vinyl-liner pool simply
because the customer wanted a different look?

DON'T KNOW     6%
NO            40%
YES           54%

Note: Table made from pie chart.

Vinyl Liner
Decision-Maker

Who typically makes the pattern decisions for
your customers' package/vinyl-liner pools?

MALE       0%
BOTH      32%
FEMALE    68%

Note: Table made from pie chart.

Cost of Pool Project

In total, how much does each of your company's
customers spend on a new package/vinyl finer
pool--including the cost of the pool and any
landscaping, waterfeatures and the like?

17%    $10,000-$19,999
61%    $20,000-$49,999
22%    $50,000-$100,000

Note: Table made from pie chart.

Pool Budget
Breakdown

About what proportion of a
consumer's budget is spent
on each of these areas?

OTHER               9%

LANDSCAPING
(INCLUDING
ANY UPGRADED
DECKING)           15%

POOL               76%

Note: Table made from pie chart.

Landscaping Expenditures:
Then and Now

How would you say the proportion
customers spend on landscaping around
a package/vinyl-liner pool has changed
compared to five years ago?

LESS IS SPENT ON LANDSCAPING NOW     5%
NO CHANGE                           17%
MORE IS SPENT ON LANDSCAPING NOW    78%

Note: Table made from pie chart.

Water features:
Then and Now

About what proportion of the
package/vinyl-liner pools your
company builds, compared with
five years ago, are constructed
with waterfeatures?

today                23%
five years ago       14%

Note: Table made from pie chart.

Pool Warranty Claims

About what proportion of your
company's warranty claims were
associated with each of the following
in the last 12 months?

OTHER                    14%
FAULTY INSTALLATION      10%
PRODUCT DEFECTS          76%

Note: Table made from bar graph.

Expected Change in
Revenue

Do you expect your company's 2004
revenue to increase, stay about the same,
or decrease from 2003?

DON'T KNOW              16%
DECREASE                 6%
STAY ABOUT THE SAME     26%
INCREASE                52%

Note: Table made from pie chart.

Vinyl-Liner Patterns

How important do you think pattern options are to
customers when buying a package/vinyl-liner pool?

NOT IMPORTANT     0%
NEUTRAL          21%
IMPORTANT        79%

Note: Table made from pie chart.

RELATED ARTICLE: Small claims.

Package pool manufacturers back their products with warranties, and luckily, warranty claims are few and far between.

Dealers say many of the claims they receive cite the product as the problem rather than the installation, according to a recent survey conducted by Readex Inc. of Stillwater, Minn., for Pool 6 Spa News

Specifically, the survey reports that 76 percent of warranty claims are product defects, and nearly 10 percent are faulty installations.

"Faulty installation happens, but it is in the minority," says Barry Hamilton, a sales executive at Aloha Pools & Spas in North Little Rock, Ark.

"It is usually something like a bad heating element right out of the box or a pump that has a short in it," he adds. "But generally, we don't have too many problems."

Keith Cowell agrees. "[A warranty claim] is a rarity," says the owner of Prestige Pools, a vinyl-liner dealer in Raleigh, N.C. "We haven't had any badly sized liners this year, and last year we only had two.

"Normally, we don't have any problems with that, even with [free-form pools]," he adds. "I deal with one vinyl-liner company and know who to call if we have a problem."

Roy Mendelssohn recalls an instance where the liner was cut backward, putting the deep end on the wrong side of the pool. However, the owner of Aqua-Tech Pools, a vinyl-liner installer in San Marcos, Texas, points out that the manufacturer was quick to fix the error.

"At first, we thought we made the mistake," Mendelssohn recalls. "But it wasn't us. And they replaced it at no cost. This sort of thing doesn't happen much."--B.D.

COPYRIGHT 2004 Hanley-Wood, Inc.
COPYRIGHT 2004 Gale Group