Original > Hot Tub Forum
Another Newbie, Another question. Something a bit different - water changes?
silversun:
--- Quote from: castletonia on October 28, 2018, 10:51:46 pm ---Here is my take as a dealer.
There are a lot of variables that go into the price of the hot tub. Most manufacturer's do have an MSRP. That MSRP is for the hot tub and usually the cover. It doesn't include a step, cover lift, chemical kit, shipping from the manufacturer to the dealer, delivery from the dealer to the customer, or any other accessory you may want. You also have different price point accessories. Shipping will cost more the further you are from the manufacturer. Each delivery is different. Each dealer handles service different. Some contract out. Others handle it inhouse. Some don't charge travel fees and some do. With all the variables, how can the manufacturer list a price that applies to everybody? The answer is they can't.
I invite anyone to argue this statement. People only hear or read what they want to. If I put on my website that a hot tub starts at $10,000, consumers usually miss the "starts at" and assume the hot tub is $10,000. They don't want to be told there are extras that they think should be standard and that the cost could be more. It is always easier for me as a dealer to take away than to ask for more.
I've tried pricing my products at the lowest possible price and with haggle room. It didn't work well because all my competition had negotiable prices.
Most consumers understand that nothing sells for MSRP which means that MSRP is then irrelevant. Every dealer has different overhead costs, different costs of doing business, which affect what they sell for. Every business is in business to make money and if you think otherwise, you are mistaken. I do like to think most are trying to make an honest profit and not screw the customer.
--- End quote ---
I don't think anyone is suggesting manufacturers publish an MSRP, or that dealers expose this to customers. I think its clear that MSRP is a joke, and each dealer can have a different cost structure. Nobody wants to run their local hot tub dealer out of business, and I'm fine with them even making (gasp!) a profit off of my business. I'm not arguing any of this. I don't think consumers in generally are disputing any of these facts.
It's also pretty well understood that you can't just drive a hot tub off the lot like you can a car. We get all of this. but none of these considerations require getting pricing to be as obscure as it is. I think you're making assumptions that simply because costs are variable, and there are optional accessories, you can't expose pricing.
Michael Russell:
I visited quite a few stores in my search. In the end I liked the stores that had pricing on the tubs when you walked through the door. They seemed more open and up front. I know that the price on the tub has decent margin and room for negotiating but it gives us both a starting point. Other stores I visited I usually played dumb to see what they come out with. This is when the greasy sales guys come out of there shell.. Mark up of $2-3k above what other stores selling the same tub have listed on them....
Sales is a greasy business. Hot tub sales is no different. The stores that want to be around for the long term and are not just out to make a quick buck with have honest and open pricing. Anything else and they will get a bad name for themselves... Its that easy.
castletonia:
--- Quote from: swilly1000 on October 29, 2018, 06:29:30 am ---
--- Quote from: castletonia on October 28, 2018, 10:51:46 pm ---I've tried pricing my products at the lowest possible price and with haggle room.
--- End quote ---
Have you tried publicizing your pricing?
--- End quote ---
No. The policy of the manufacturer is I can only post MSRP. If that is all you can see, you may choose to bypass my store thinking the price is too high, since all MSRP's are high. In my store, all of my sale signs show the MSRP for the hot tub with the package and what my everyday, or regular price is. During promotions, a "sidebar" piece is added indicating the sale price. Everyone is welcome to negotiate to their hearts desire. I have had people walk away because I would not meet their price demand, and that's fine.
castletonia:
--- Quote from: Michael Russell on October 29, 2018, 09:54:30 am ---I visited quite a few stores in my search. In the end I liked the stores that had pricing on the tubs when you walked through the door. They seemed more open and up front. I know that the price on the tub has decent margin and room for negotiating but it gives us both a starting point. Other stores I visited I usually played dumb to see what they come out with. This is when the greasy sales guys come out of there shell.. Mark up of $2-3k above what other stores selling the same tub have listed on them....
Sales is a greasy business. Hot tub sales is no different. The stores that want to be around for the long term and are not just out to make a quick buck with have honest and open pricing. Anything else and they will get a bad name for themselves... Its that easy.
--- End quote ---
That is the definition of shady, in my opinion. I have had competitors not put prices on their spas and to me that is only done in an attempt to be dishonest. There is a difference between making a business sustaining profit and screwing the customer. Not showing prices is in my opinion meant to achieve the latter.
Hottubguy:
--- Quote from: Michael Russell on October 29, 2018, 09:54:30 am ---I visited quite a few stores in my search. In the end I liked the stores that had pricing on the tubs when you walked through the door. They seemed more open and up front. I know that the price on the tub has decent margin and room for negotiating but it gives us both a starting point. Other stores I visited I usually played dumb to see what they come out with. This is when the greasy sales guys come out of there shell.. Mark up of $2-3k above what other stores selling the same tub have listed on them....
Sales is a greasy business. Hot tub sales is no different. The stores that want to be around for the long term and are not just out to make a quick buck with have honest and open pricing. Anything else and they will get a bad name for themselves... Its that easy.
--- End quote ---
Your post sums up the problem I run into. I have tried putting my best prices out on tubs, customers always think that it can be negotiated lower. I have also made my prices higher expecting negotiating and some just see the price on the tub and walk. It’s definitely not easy either way. Customers in general want to think they “win”. Currently I have MSRP with my sales price next to it. For the most part my pricing is what it is and a lot of people get mad because my price isn’t negotiable but they think they got a great deal down the road because he magically took $3000 off his price. At the end of the day we are selling tubs at the same profit margin with a different approach
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