Waterco Performs Well In Difficult Economic Times

July 21, 2009 - PRLog -- Waterco Limited  has had a successful year, turning in a good performance during testing economic times. In Australia, the company’s Swimart franchise business continues to grow strongly, with more than half of their 62 stores now turning over in excess of $1m annually.

According to Waterco’s Chief Operating Officer, Mr David Marginson, three stores turned over in excess of $2m this last year.

“Our business model provides the company as well as our franchisees with consistent and sustainable growth. This has resulted not only in a first class business, but also in long-term franchisees, many whom have been with us for in excess of 20 years. This is in sharp contrast to most of our competitors, who seem to experience a rapid rate of franchisee turnover”.

David Marginson said that one of the attractions of the Swimart franchise is their low franchisee fees and advertising levels.

“On average, these equate to just 6.6% of a store’s revenue, which is fixed and not variable according to monthly sales throughput. We only increase these fees on a fixed yearly basis determined at the start of the franchise”.

In Australia and New Zealand Waterco’s focus is firmly on the manufacture, wholesale, export and retail of swimming pool equipment and accessories. David Marginson says this means the company is highly focused on assisting Swimart’s franchisees to grow and prosper.

“This is a strong plus for our franchisees because Waterco makes its profit from sales of product directly to them. This allows us to keep the franchise fees low and the franchisees profits robust.

Another factor that is attracting new franchisees to the group is the variety of work and different income streams they enjoy, ranging from retail sales through the stores to in-home pool servicing and from light commercial pool servicing to working with schools. In these testing times Swimart franchisees are benefiting from cocooning – householders staying at home and entertaining rather than travelling overseas for their holidays.

“In addition when they come to sell some franchisees are now able to realise a price that equates to more than 60% of their store’s revenue as a sale price,” David Marginson said.”

“And for stores that turnover more that $1m a year, this is an exceptional price in any market especially considering a new store can be established for $200 to 250K.”

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