The swimming pool service sector is being squeezed from two sides now. In the last couple of years, National Pool Partners (NPP) has been buying up large pool service companies and merging them into giant regional pool service companies sometimes taking over entire communities. Now PoolCorp has thrown its hat into the pool service arena by their recent purchase of the Pinch A Penny franchise parent company Porpoise Pool & Patio Inc, and Sun Wholesale Supply Inc.
What does all of this mean for your pool service company? That all depends on your region and company size but in a nutshell, these two entities are going to create more cooperate-run competition for you. NPP is expanding mainly in employer-friendly states like Florida and Texas and they are actively purchasing large pool companies with 1,000 or 2,000 or more accounts. Gobbling up the big fish companies in the areas they operate in. But NPP is not a discount pool service and they will be charging premium rates. Think Terminix vs your local mom and pop pest control.
PoolCorp acquiring Pinch A Penny is a real head-scratcher. They are known as a wholesaler that supplies local pool stores and local pool service companies so purchasing a company that has franchise pool stores and service companies is a big step out of their well-defined box. The local SCP and Superior locations do not sell directly to homeowners so I am not sure how essentially buying 260 pool stores will affect other pool stores they sell to in the Pinch A Penny territories. The Pinch A Penny stores are independently operated and pay a franchise fee to use that branding. The problem I see is that these locations also provide weekly pool service.
My best guess is that PoolCorp will aggressively expand the Pinch A Penny franchise opportunities and that they are looking to double or triple the amount of Pinch A Penny stores across the nation. In a way, this is bad news for other pool stores and other pool service companies. Logically PoolCorp will favor the Pinch A Penny franchisee over other stores and pool companies they sell wholesale to. If you are being paid a franchise fee you want to expand offering a discounted wholesale pricing model is a smart business. They will also favor the Pinch A Penny locations when it comes to chemicals and equipment putting those 260 stores first on the list and any new stores that open under the Pinch A Penny name.
For the largest wholesaler to purchase a franchise pool company seems a bit out in the left-field and a move that could alienate their loyal customers in those regions where Pinch A Penny now operates and will expand to. The only good thing about being in California is that the state is not employer-friendly. Not one bit. NPP is staying out of California and I suspect PoolCorp is already feeling the pain of operating in California and has little desire to expand here shortly. So at least we California pool companies are safe from these cooperate giants for the moment.
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