Original > Hot Tub Forum
General question - amount of pymt requested at time of order?
d00nut:
We are a bit different.
Right now, we are asking 20% down for special orders (6-7 month lead time,) 30% on swimmers.
$500 down on anything coming in stock on a truck.
I'm wondering if I am too low... but that is a significant competitive advantage for me ;)
Hottubguy:
--- Quote from: Red MC on August 05, 2020, 08:53:59 pm ---Wow, I didn't think the amount I was being asked to pay up front was that low. My last purchase was 17 years ago and that was a higher percentage (I forget how high) but there wasn't much uncertainty and the delivery date was only 6 weeks out, so I had no qualms about it.
I have to say that there's no way in a million years that I'd pay 50% in current times. It's not just about the long wait time. I'm not 100% confident that companies will still be in business long enough to fulfill my order, so I don't want to put any more money on the table than I'm willing to just write off. I'm not as worried about the manufacturers as I am the dealers.
--- End quote ---
I get that. Part of the reason I’m doing small deposits on tubs not yet in stock is because if they cancel I don’t want to have to write a big check for them. That being said my company like I’m sure many others could not sell a thing the rest of the year and still have a better overall year then last year. I hit my total units sold for 2019 in late May of this year. Luckily for me I leased a large warehouse in January to have my largest inventory of hot tubs in stock at any point since I’ve owned my business. So when all this began I was in pretty good shape inventory wise (not so much now 😂) I think most dealers are having great years if not best years ever. I also do Inground pools and I’m currently booking as of today into September of 2021. I’m not going anywhere anytime soon!
castletonia:
--- Quote from: Red MC on August 05, 2020, 08:53:59 pm ---Wow, I didn't think the amount I was being asked to pay up front was that low. My last purchase was 17 years ago and that was a higher percentage (I forget how high) but there wasn't much uncertainty and the delivery date was only 6 weeks out, so I had no qualms about it.
I have to say that there's no way in a million years that I'd pay 50% in current times. It's not just about the long wait time. I'm not 100% confident that companies will still be in business long enough to fulfill my order, so I don't want to put any more money on the table than I'm willing to just write off. I'm not as worried about the manufacturers as I am the dealers.
--- End quote ---
As a business, we offer hot tubs (Hot Spring and Caldera), build in-ground pools and sell chemicals and supplies. Currently we are taking pool deposits for 2022 (2021 already booked), our chemical sales are up about 300% and we will match last years sales totals this month. We're not going anywhere.
I don't say this to be disrespectful, just my opinion as if I was a customer. If I didn't trust that the company I was about to make a large purchase from was going to be in business in 6 months, I probably wouldn't be doing business with them.
CV3720:
Interesting.
The place I ordered from required 100% (paid in full/in advance). Thought that was a bit odd! So, they're sitting on $10k - I'm guessing that PDC did not require that from them for the order.
Red MC:
Thanks, I appreciate the sensible replies.
I was thinking from a different POV, like if you don't get any product, how long can you last on deposits. I work in a completely different industry, and our ability to satisfy our commitments is falling apart due to supply chains tanking and also because of highly skilled employees who can't put in the hours in the workplace because of child care and/or fear of safety. Perhaps I'm being a bit too doom and gloom.
I just checked and the deposit we put down two weeks ago was 33% (4500/13599). But one of the most reputable dealers in my area (IMHO) sells Hot Springs and Bullfrog and only asked for $1500. I would have liked to order from him; he's got a great reputation all around, but just like the last time we purchased a hot tub he didn't have quite what we were looking for.
One pleasant surprise was that only two out of the 6-8 dealers we were interested in and got pricing from were asking for inflated prices compared to normal times.
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