This is a YouTube video titled "Why I Love Pool Service Businesses" containing a monologue or presentation discussing the business model and financial aspects of pool service companies. The speaker explains the stickiness, recurring revenue, and efficiency improvements possible in this sector, using personal anecdotes and details about a recent deal in the Kentucky market. The content is a single-speaker explanation without dialogue.
Pool services. Alicia and Patrick just closed on this in the Kentucky market. They're doing commercial work. This is a interesting category for the same reasons I just said, the same reason of I was giving with the pool services at my house. The pool guy came with a house. You know, like this house was built in 1990. The guy that lived here before me lived here for, you know, since 1990. I bought the house in 21 and the pool guy came with a house. Why would I bring a pool guy from my other house to this house if this guy knows the pool, right? And so he knows the pool. As soon as I got into there, I said, okay, I want to redo the pebble tech in the pool, which means it's resurfacing. That was like a $12,000 ticket price. I want to switch this over from fresh water to salt water because it's better for my kids. And, you know, like, salt water is better than all the chlorine and the chemicals. So that was $12,000, right? And then the, the monthly service is always something. The skimmer is this, that, the chemicals, this, the chemical, whatever, right? It's $500 a month. Next thing you know. But no, it was $200 a month to start out with. That was a very reasonable thing. And for me to switch from my current from my old pool guy to the new pool guy, like, who's going to make that switch? So it's very sticky. And I love that about the pool services business. Like, again, in these types of businesses, it's gonna be very hard to lose your job when you have a client unless you just do a catastrophic job, right? And so think about all the things that they. I pay my pool guy $30,000 easily since I've been in this house. Upgrades and nonsense and things, right? And so there's value add. It's sticky and it's reoccurring revenue, right? I don't, you know, the guy comes Thursday morning, 10 o', clock, he's here for 15 minutes. He does the PH levels, he tops the things, he skims it, he runs the pump. Boom, he's out of here. Right? Same thing as a landscaping. Same thing as, you know, a number of these businesses, right? It's the same model. And so that's why I like pool services. Patrick and Alicia's deal, I think after debt, there's about $500,000 in free cash flow. They actually thought there was going to be a lot more or think there's going to be a lot more after we did the deal. Just because there's total inefficiencies. They been doing things the same way for 50 years. The guy bought it from somebody else who owned it for 20 years. Right. So now you have a 50 year old business that was owned by somebody for 20 years and it's been making $900,000 a year after debt service. It'll make 500 to start. But they're going to get really efficient with what they're doing and it's going to be really tough. They're in a rural market. There's not that many pool services companies out there. You get name, reputation, brand, clients, employees, I mean, processes, all the stuff. Just by digitizing that business, they'll be able to make 5, 6, $700,000 a year in no time whatsoever. Okay, I like pool services.
