Original > Hot Tub Forum
Prices paid for Sundance Optima
ndabunka:
NeedaSPA's figures are off. It is true that spa's have significant mark up. But that's at the FULL REATIL price. On the Optima/Cameo that price is $8,900. The Mark up is NOT 60%. It is more like 40% (unless they are a big dealer where it "might" get as high as 50%). Assuming the 40% mark at $8,900, the dealer cost is around $6K. The Lowest price ANYONE has EVER claimed online for a NEW bare bones Optima is $6,800 and that was a seasonal close out. The most common "best prices" we've seen online are $7,200 to $7,300. If that's the figure he has, he should buy it before the dealer decides he's had enough of needaspa and sells it to someone else.
poolboy34:
thank you bunka.................hopefully wantasaspa....I mean needsaspa will listen to you and take the deal he has on the table!!!!!!!! and then hopefully he'll take his ball and go home :D
Cajun_Mike:
Let me assure all of you... the dealer margin on these tubs is at a minimum 30% and likely 40%. I was in the durable medical equipment industry for almost 20 years until a year ago. At one point in the 80s we even sold spas. That whole industry uses a factor of 1.666. In other words if a tub costs the dealer 5 grand he multiplies 5k X 1.666 to get his list price and if he wants to stay in business he will never sell any tub lower than a 25% margin. Factor for a 30% margin is 1.443 and for a 25% margin 1.333. I'm sure the manufacturers also give them a retail price list that is somewhere between 30 and 40%. I'm sure bigger dealers might be able to get a deal where they order so many spas and get free freight from the manufacturer. Or maybe there is a secondary discount of a few points if they pay their invoices within 30 or 60 days.
The bottom line is that the dealer has to stock the spas, service them, advertise them, pay his utilities, pay his employees, his rent, etc. Some of these profit margins that I have seen cited on this form are an absolute joke and fabrication. If there is anyone here that thinks that a business can operate and succeed with a 20% profit margin, I will show you someone that was probably a liberal arts major in college. :P
needaspa:
Cajun Mike,
'That whole industry uses a factor of 1.666. In other words if a tub costs the dealer 5 grand he multiplies 5k X 1.666 to get his list price and if he wants to stay in business he will never sell any tub lower than a 25% margin.'
25 % markup - the factor is 1.25
30% markup - the factor is 1.30
etc
So you are saying the industry has a 66% markup. Close, but it is prob in the range 75% to 100%.
'if he wants to stay in business he will never sell any tub lower than a 25% margin' - You can speak for all dealers? There are so many factors that go into the equation that creates sale price some including time of year (a sales quota needed to achieve), discounts from manufacturer, etc.
Brewman:
I am more apt to belive Cajun Mike than you.
He at least cites real life exaples, and sounds credible and reasonable. You on the other hand, can't provide one gram of evidence to support your claims. Where did you get YOUR inside track on spa pricing?
Brewman
PS- How's that $6500 spa deal going?
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