General > General info Somewhat hot tub related
Hot tub industry - careers
Jacuzzi Jim:
On a good month I average say 5 to 15 spas a month give or take, at various price ranges. I only get 3% from any spa sale I make, but I also make a really nice salary as I dont do just sales.
I do all the purchasing for the spa end,I am also the service manager,handle all the service calls and set up all deliveries for the customers, not to mention anything else that comes along in my spa world. ::)
What happens though I dont get paid my 3% till the spa is delivered,so I could sell 15 spas in a month, none of which might not get delivered for a month,2 months and even longer so as far as money coming in I am basically collecting money monthly from sales that could be 3 weeks/3 months ago or longer.
Quite a few spas I sell if in stock, do go out pretty fast. If they are an order in its about 3 1/2 weeks and most people are ready for there spa at that point.
So is not getting paid till after the delivery the norm in the industry??
Some months I am glad I am paid that nice salary,if not I know I could not live in the house I do and would probably be doing something else.
Will I stay here? Yes, the company I work for is a major heating and A/C business, and is in the process of building a new store the 2nd one now with patio furniture,bbq"s spa's all kinds of back yard type stuff, along with gas/wood stoves,fireplaces the works. All in all pretty happy doing what I am doing. :)
Till I win the lottery that is,I just have to play more. ::)
ndabunka:
--- Quote ---I have been in this industry over 20 years. I have many salespeople that work for me. As far as I know, no salesman in the spa industry makes 3-5k for selling 3-4 tubs. Thats about double of what the good ones make
--- End quote ---
It looks like someone took my original comments out of context. I said the GROSS profit was around $3K PER TUB for the DEALERSHIP, not the salesman's cut of the profit.
ndabunka:
--- Quote --- On a good month I average say 5 to 15 spas a month give or take, at various price ranges. I only get 3% from any spa sale I make, but I also make a really nice salary as I dont do just sales.
I do all the purchasing for the spa end,I am also the service manager,handle all the service calls and set up all deliveries for the customers, not to mention anything else that comes along in my spa world. ::)
What happens though I dont get paid my 3% till the spa is delivered,so I could sell 15 spas in a month, none of which might not get delivered for a month,2 months and even longer so as far as money coming in I am basically collecting money monthly from sales that could be 3 weeks/3 months ago or longer.
Quite a few spas I sell if in stock, do go out pretty fast. If they are an order in its about 3 1/2 weeks and most people are ready for there spa at that point.
So is not getting paid till after the delivery the norm in the industry??
Some months I am glad I am paid that nice salary,if not I know I could not live in the house I do and would probably be doing something else.
Will I stay here? Yes, the company I work for is a major heating and A/C business, and is in the process of building a new store the 2nd one now with patio furniture,bbq"s spa's all kinds of back yard type stuff, along with gas/wood stoves,fireplaces the works. All in all pretty happy doing what I am doing. :)
Till I win the lottery that is,I just have to play more. ::)
--- End quote ---
Sounds like you are a sales manager so the salary seems like a better plan (less risk) than a traditional salesman would have to endure. I would expect that holding payment until the Spa is delivered would be a pretty common method as it is in other "big ticket" retail industries. In my prior business I didn't pay the rep until the client paid me. That simple precaution helped protect me from an unscrupulous sales person that tried to write a bunch of "paper" (orders) right before his departure.
Three percent of a $8K spa is only $240.00 so it doesn't sound like much but if you average 10/month your still bringing in an extra $2,400/month as "icing on your cake" so it sounds like you are doing pretty well.
Micah:
--- Quote --- a single salesman selling 3-4 tubs could likely make enough to keep at it ($3 to $5K/month depending on the split with the owner of the business).
--- End quote ---
ndabunka,
This is the quote I was refering to. My statement remains the same. In our industry selling 3-4 spas will not make a salesman 3-5 k. If I am "misquoting" you I am sorry. It does however seem to me like you are saying that a salesman can make at or above $1000 in commission per tub. Average sale is lets say $7500, that means the salesman is getting 13.5% commission. That is the best paid salesman I have ever heard of in the spa industry.
D.P. Roberts:
--- Quote --- Will I stay here? Yes, the company I work for is a major heating and A/C business, and is in the process of building a new store the 2nd one now with patio furniture,bbq"s spa's all kinds of back yard type stuff, along with gas/wood stoves,fireplaces the works. All in all pretty happy doing what I am doing. :)
--- End quote ---
1) Jim, the company you work for is primarily a heating & A/C contractor? That sounds a little unusual. Most of the companies around here "diversify" into other products such as the patio furniture, fireplaces, etc. like your second store is selling. Pool tables and other "rec room" stuff is also a common combination. In some areas of the country, swimming pool installers also sell tubs.
I'm just curious because it seems like most spa dealers sell other stuff besides spas to support themselves in the "off season". HVAC is a little unusual - are there any other "weird" combinations out there?
2) To generalize:
A) Owners sometimes pay themselves a salary, but basically live off whatever net profit they may make.
B) Full-time salespeople earn about 5%-8% commission or a flat $500 or so on their sales.
C) Employees with other responsibilities earn a salary plus a small commission (like JJ's 3%) if they also make some sales.
Is this a reasonable summary of what one would expect to see at most spa dealers?
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