www.swimmingpoolnews.co.uk
PRISON SENTENCE ‘NOT SEVERE ENOUGH’ FOR US BUILDER WHO LEFT UNFINISHED POOLS
The boss of one of California’s highest profile swimming pool builders has been sentenced to two years in a US state prison for diverting funds and leaving pools unfinished.
Greg Wolfe of Aquarius Pools, Sacramento had faced a maximum sentence of four years, four months. He left, leaving approximately 60 homeowners with incomplete pools and several subcontractors unpaid. The unfinished work and outstanding debts totalled approximately US$1.2m.
The case in which Wolfe was sentenced included 11 customers, who lost a total of US$223,000. Wolfe and his wife, Teresa, accepted money from customers and diverted it to a non-Aquarius account. Earlier this year, Wolfe pleaded no contest to three counts of diversion of construction funds. Teresa Wolfe pleaded no contest to felony embezzlement and tax evasion, for which she was sentenced to a year’s work furlough.
Some in the US pool and spa industry believe a two-year sentence isn’t severe enough to deter illegal contracting activity.
“To get off with two years, to me, is a slap on the wrist,” said Mike Geremia, President of SPEC, the Californian pool and spa industry legislative advocacy group. “It just seems like we’ve got to do something along the way that really shows some consequences.” When Aquarius first closed, there were questions about company owners Richard Carnation and Kevin Towle. At that time, California’s Contractors State License Board revoked their licenses, including one they held for a non-pool- related business.
“Even though the owners of Aquarius Pools did not face criminal charges in this case, they were administratively responsible for the actions of their general manager,” said David Fogt, the board’s Enforcement Chief.
WorldNews OCT 2011 SPN
50% GROWTH IN WEB SALES CHANGES SALES APPROACH IN US
A new United States survey on consumer’s trends in the pool and spa industry says internet sales are dramatically grabbing an ever-increasing percentage of the trade market share.
Not only are US shoppers purchasing more pool-related products via the web, the number of online retailers serving the industry has risen sharply in the past several years, experts say. Experts estimate that internet purchases of pool products have increased by as much as 50% in the past 12 months. Meanwhile, the range of products and spare parts customers who are willing to order online continues to expand.
“We’ve seen the sales of the parts really skyrocket in the last 24 months, for both pools and spas,” said Daniel Harrison of
Poolandspa.com, an online retailer based in Las Vegas. “And more customers are using the internet to buy products – like hot tubs – that very few people would’ve bought online three or four years ago.” This pressure has pushed an increasing number of brick-and-mortar pool retailers to enter the online arena – some reluctantly. So far, these retailers are using a mixture of strategies, from dipping their toe into e-commerce to building massive and expensive websites, but most local pool retailers expanding into online sales have chosen to differentiate their traditional business from their internet brand. Retailers are also realising that branding strategies developed in and for local markets aren’t as well adapted for the internet. While high quality local service creates loyal customers for retail outlet, these attributes often translate poorly to the online marketplace, where professionalism and authority typically make a better impression on consumers.
A number of US specialist builders are cutting back on sales staff and investing online. They believe an increase in web marketing is now likely to bring better results than the personal touch. One Californian based builder said 100% of his marketing budget was now going into an aggressive online strategy. “We have had such a response to our new website we believe it offers a more promising new business strategy than to have sales people making calls and having to invest in on- the-road salesman. We’ve been sorry to see staff go but the results have been very conclusive for us. Business is coming in through the web where we didn’t see it happening even 12 months ago. The consumers have changed when it comes to how and where they start looking for services and we have to change as well.”
US TRADE LOOKS FORWARD ONLY TO MORE TROUBLED TIMES
A troubled economy coupled with bad weather in the eastern side of the country have kept the specialist pool industry in the US from seeing the turnaround it had hoped for. 2011 will be a year of zero growth at best, say industry experts. New pool construction continues to struggle, with financing remaining a challenge. Even the high-end market, which provides the most opportunity, is being affected. Renovation, refurbishments and service work remain the strongest areas of the US industry, particularly due to the fact that consumers now are starting to spend on items they’d delayed purchasing.
The three major pool markets in the western United States – Arizona, Nevada and California – continue to suffer from some of the most catastrophic business liquidations
and are reporting little movement on new pool building.
California, normally a strong area for the specialist industry, is having a tough time. The state pool association has been reporting that 2011 will be a year that is flat – with the biggest theme being the large number of specialist companies which have been forced into liquidation.
Said swimming pool business consultant Art Bestoc: “Small pool businesses survived last year on the back of a lot of renovation work but even that is beginning to slow down. Everyone was looking for the new pool building opportunities but they just haven’t materialised in time to save a lot of businesses from having to close. The effect on the industry isn’t a good one as a lot of skilled people are leaving the business and they may not be able to find a way back in.”
81 IN BRIEF
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‘BATHING IN AND WITH NATURE’ – A NEW THEME AT AQUANALE 2011 There are well over 5,000 fitted ‘swimming ponds’ in Germany which reflects the growing trend towards natural bathing in harmony with nature.
The popularity of these natural swimming ponds has led to them having a special focus at aquanale 2011, the International Trade Fair for Sauna, Pool, Ambience, held from 26 to 29 October 2011 in Cologne. The German Society for Natural Swimming Water is organising a themed area for swimming ponds and natural pools.
A water and wellness feel- good garden set up in the exhibition halls will
demonstrate how bathing in naturally treated water can be practically installed. A swimming and bathing pond along with a natural pool will be set up in the presentation area. The presentation area will be rounded off by a wooden deck with spaciously designed patio and landscaped garden area with lawn.
This focus on natural pools will be picked up at the 4th Cologne Swimming Pool and Wellness Forum alongside the German exhibition with lectures and demonstrates on building and ecological techniques.
Said a spokesman for aquanale: “The pool industry in Europe has to become more aware of the interest in natural ponds amongst consumers. In Germany and France it is capturing the imagination of the public and we as a trade have to understand what is being offered and how it can be incorporated into the traditional pool and spa business.”
For more information visit
www.aquanale.com
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