POOLCORP has begun announcing their intention to increase prices. Letters have already begun to circulate within the industry. SCP announced price increases last month that would begin on May 3rd. An official statement from Robert Rankin, Vice President at Poolcorp sent out a letter to retailers this week. It explained the difficulty the company has had struggling to maintain pricing structures given the rising increases from the industries most popular vendors.
“The virus has hit shipping at the ports, in the air and at the freight terminals, and the simple “supply in demand” exercise means raw material increases are mounting and therefore vendors are being forced to respond. The latest example of this is the recent price increase announcements from Hasa, Pentair, Fluidra and Hayward. New pricing from these vendors is being sent to the industry now and will culminate with price increases effective at our branches on May 3, 2021.”
ROBERT RANKIN – VICE PRESIDENT OF POOLCORP
Poolcorp Letter Announcing Price Increases
There is mounting concerns that Increasing Prices may destabilize many pool companies abilities to stay in business. Already many pool companies have been forced to switch to liquid chlorine instead of chlorine tablets. There is a huge valve shortage going on in the industry as well as many other vital components that have become scarce in light of enormous price gouging going on in the secondary markets.
Harold Evans owner of Orenda Technlogies described the current perception of the climate when he stated.. “I went into the parking lot of Poolcorp in Plano at 4:00pm and I was the only truck. Companies are taking large deposits on equipment that is unavailable which is a sign of the cash flow desperation. Nothing compares to this in my years since 1984.”
News impacting the Pool Industry
The big pool news this week going around Social Media unlikely enough coincided with Poolcorp’s notice to increase prices. With far reaching ramifications, a situation unfolding in the Middle East is predicted to only worsen the climate for increasing prices in the pool industry.
Recent events in the Suez Canal are currently complicating pricing and supply chain issues globally. Some 10% of the entire world’s trade goes through the Canal on a daily basis. There has been an Ever Given shipping tanker blocking Egypt’s busy Suez Canal for several days now. The delay effecting transport is expected to be costing the global economy some $10 billion dollars a day and may have unforeseen trickle down effects that impact the pool industry.
With recent factory closures, supply chain issues, freezing temperatures and price increases – many pool companies are wondering, will it get any better in 2021? Already many pool builders and service companies are feeling the financial crunch. Rising oil prices have seen fuel costs sky rocket for pool companies across the nation. The problem is now finally trickling down to the consumer level as companies are forced to pass along those price increases to home owners.
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