Hot Tub Forum

Original => Hot Tub Forum => Topic started by: BullFrogSpasMN on October 02, 2020, 03:35:55 pm

Title: Spa Dealers and 2021 Product
Post by: BullFrogSpasMN on October 02, 2020, 03:35:55 pm
To those who are dealers...just wondering how your year is going so far and are you confident in product availability for 2021 and are you guys confident you'll have enough product to sell for 2021?  Just curious, we were fortunate enough to pick up (2) new manufacturers and get on order hundreds of spas, but I still have my doubts as to having enough product on order and increased delays in manufacturing....just curious how everyone else is getting along and what are you thoughts for the new year and how are you planning ahead?

Hope you're all getting by, I know a lot of dealers are getting pushed out of the business unfortunately
Title: Re: Spa Dealers and 2021 Product
Post by: Hottubguy on October 02, 2020, 10:38:57 pm
Year has been strong overall on the sales side of things. Availability has been a challenge and I expect that to be the case for all of 2021. For 2021 I don’t think anybody will have enough. I have sizable orders in with both Watkins and Nordic. Caldera side I basically added 20% to what I did this year and ordered all at once at end of June. Have added a number of trucks to my order since. On the Nordic side I typically do about 60+ - of their tubs a year. I have 6 trucks of 20 tub orders with 2021 dates on them. I also sell Marquis. They are a bit more challenging with lead times. Expect to get one more truck from them this year and have a decent amount of there tubs on order for 2021. Have also been dealing with another line that has been filling in the gaps for me. If I get what I am projected to get for 2021 I should be fine. That being said I don’t know how much faith I have in getting what I have on order in by the end of 2021. Hopefully the supply chain improves over the course of the year.
Title: Re: Spa Dealers and 2021 Product
Post by: d00nut on October 03, 2020, 12:51:13 pm
I feel like we are in decent shape if the projects hold.  Of course, I have little faith the projections hold.  What happens if we shut down again?  Good grief...

It's been strong, all year.  I think it will probably continue because we are bound to see another spike... which sucks, but I just don't see us competing with the vacation dollars out there.  I think we got a good foothold.
Title: Re: Spa Dealers and 2021 Product
Post by: BullFrogSpasMN on October 03, 2020, 04:42:17 pm
Year has been strong overall on the sales side of things. Availability has been a challenge and I expect that to be the case for all of 2021. For 2021 I don’t think anybody will have enough. I have sizable orders in with both Watkins and Nordic. Caldera side I basically added 20% to what I did this year and ordered all at once at end of June. Have added a number of trucks to my order since. On the Nordic side I typically do about 60+ - of their tubs a year. I have 6 trucks of 20 tub orders with 2021 dates on them. I also sell Marquis. They are a bit more challenging with lead times. Expect to get one more truck from them this year and have a decent amount of there tubs on order for 2021. Have also been dealing with another line that has been filling in the gaps for me. If I get what I am projected to get for 2021 I should be fine. That being said I don’t know how much faith I have in getting what I have on order in by the end of 2021. Hopefully the supply chain improves over the course of the year.

Same here on most accounts, the year to date has been incredible/overwhelming...we also do about 60-75 Nordics a year and have probably 50-60 or so on order, but we were late to the game and some of those orders are into late summer/fall of 2021 already.  In the meantime we picked up Wellis and Aspen as well, we've been flirting with both for awhile so we figured now was the time and have around 65 Wellis on order and around 40-50 Aspens + our Bullfrog 'allotment' for the year, for some reason I don't think it will be enough as I agree demand will hopefully stay high through most of 2021 but it's def. nerve wracking laying out that much cash on projections during a  worldwide pandemic but what are the other options? Let's all hope supply chain and labor can 'catch up' a bit and maybe we'll see some of these delays come down around Qtr. 3-4 of 2021 hopefully.  Stay Safe All!
Title: Re: Spa Dealers and 2021 Product
Post by: Jag8 on October 06, 2020, 12:30:47 am
Stock will be challenging for some. I feel eventually the inability to get inventory might be the demise of some smaller dealers. It's already happening, the largest accounts are taking priority from the manufacturers.

Word on the street has it that Sundance / Jaccuzzi added a full production line recently actually shortening lead times in some situations. They are also producing their top end spas with an optional insulation downgrade, in turn for a shorter lead time.
Title: Re: Spa Dealers and 2021 Product
Post by: Hottubguy on October 06, 2020, 12:48:17 am
Stock will be challenging for some. I feel eventually the inability to get inventory might be the demise of some smaller dealers. It's already happening, the largest accounts are taking priority from the manufacturers.

Word on the street has it that Sundance / Jaccuzzi added a full production line recently actually shortening lead times in some situations. They are also producing their top end spas with an optional insulation downgrade, in turn for a shorter lead time.

Do you sell Sundance/Jacuzzi?  Out of the big brands that I see they use the least amount of insulation already. Doesn’t sound like a good plan to me, then again I’m in the Northeast where you need max insulation   
Title: Re: Spa Dealers and 2021 Product
Post by: Sam on October 07, 2020, 01:59:23 pm
What are you guys seeing for expected lead times on new orders?  I heard maxx is 22 months!  That can't be true is?
Title: Re: Spa Dealers and 2021 Product
Post by: Hottubguy on October 07, 2020, 02:30:11 pm
Caldera 47 weeks
Nordic January 2022
Marquis January-February 2022

Those are brands I carry
Title: Re: Spa Dealers and 2021 Product
Post by: BullFrogSpasMN on October 07, 2020, 02:45:48 pm
What are you guys seeing for expected lead times on new orders?  I heard maxx is 22 months!  That can't be true is?

A lot of companies are out until 2022, I just ordered swim spas a couple weeks ago projected for December 2021...a lot of dealers aren't even getting product built at all and for those that haven't been ordering over the past 3-5 months they'll be lucky to see any product in 2021 at this point.  It's not good for a lot of dealers at this point, really sucks
Title: Re: Spa Dealers and 2021 Product
Post by: Red MC on October 07, 2020, 09:15:09 pm
Back in July when I was shopping, most manufacturers were saying Nov/Dec.  Just three months later, dates have moved out by a whole year.  How much of that is due to demand vs. supply?

I would think that production ought to be back to pre-pandemic levels by now, if not higher as manufacturers look to increase their capacity to keep up with demand.  Those hot tubs have to be going somewhere.  If you guys aren't getting product, where's it going?

Or is this the lone industry that hasn't gotten back to work?  Seems unlikely.
Title: Re: Spa Dealers and 2021 Product
Post by: Hottubguy on October 07, 2020, 11:27:14 pm
Back in July when I was shopping, most manufacturers were saying Nov/Dec.  Just three months later, dates have moved out by a whole year.  How much of that is due to demand vs. supply?

I would think that production ought to be back to pre-pandemic levels by now, if not higher as manufacturers look to increase their capacity to keep up with demand.  Those hot tubs have to be going somewhere.  If you guys aren't getting product, where's it going?

Or is this the lone industry that hasn't gotten back to work?  Seems unlikely.

Most is due to demand. Some is due to parts availability. I know of a couple of manufacturers that had more hot tubs ordered in August then all of 2019. Pretty wild in the spa
Industry right now
Title: Re: Spa Dealers and 2021 Product
Post by: Sam on October 08, 2020, 02:34:11 pm
Caldera 47 weeks
Nordic January 2022
Marquis January-February 2022

Those are brands I carry

That's insane.  How are small dealers going to survive this?  If you didn't order a bunch of inventory this summer, I'm not sure what you can do to keep the bills paid.
Title: Re: Spa Dealers and 2021 Product
Post by: BullFrogSpasMN on October 08, 2020, 03:47:42 pm
Caldera 47 weeks
Nordic January 2022
Marquis January-February 2022

Those are brands I carry

That's insane.  How are small dealers going to survive this?  If you didn't order a bunch of inventory this summer, I'm not sure what you can do to keep the bills paid.

They won't survive unless a big % of their income comes from 'other' items: pools, fireplaces, game room stuff, patio furniture, saunas, etc. etc. My various reps have told me they were begging their dealers to place large orders months ago and for those that didn't listen or simply didn't have the financial means to lay out that much cash they are basically at this point 'cutoff' from getting any product at all until late 2021 or 2022.  Can we just fast forward through this dumpster fire of a year?
Title: Re: Spa Dealers and 2021 Product
Post by: Red MC on October 08, 2020, 05:20:49 pm
Are you suggesting that the biggest and/or weathiest dealers pre-emptively placed large volumes of orders and are effectively monopolizing the supply, and dealers who placed orders when they had buyers (as in a normal year) are screwed because they're backed up behind all these mega-orders?  If so, I think it's short sighted for the manufacturers to allow that, because they're going to come out of this with a smaller dealer network.  Wouldn't it be better for them to make sure all of their dealers get some share of production based on their sales volume in prior years?
Title: Re: Spa Dealers and 2021 Product
Post by: BullFrogSpasMN on October 08, 2020, 06:17:46 pm
Are you suggesting that the biggest and/or weathiest dealers pre-emptively placed large volumes of orders and are effectively monopolizing the supply, and dealers who placed orders when they had buyers (as in a normal year) are screwed because they're backed up behind all these mega-orders?  If so, I think it's short sighted for the manufacturers to allow that, because they're going to come out of this with a smaller dealer network.  Wouldn't it be better for them to make sure all of their dealers get some share of production based on their sales volume in prior years?

depends, there's like 75-100 spa manufacturers probably more if you figure global manufacturers overseas and 98% of them privately owned so they can do as they please...but most of the 'big dogs' have setup order allotments therefore allowing all dealers to get some product like you said all based on sales volume in prior years so they are attempting to make it as fair as possible. Bottom line though demand is 5x normal and supply is 5x less or rather taking 5x longer to build the product so someone is going to get 'left behind' unfortunately
Title: Re: Spa Dealers and 2021 Product
Post by: Sam on October 08, 2020, 06:55:22 pm
Are you suggesting that the biggest and/or weathiest dealers pre-emptively placed large volumes of orders and are effectively monopolizing the supply, and dealers who placed orders when they had buyers (as in a normal year) are screwed because they're backed up behind all these mega-orders?  If so, I think it's short sighted for the manufacturers to allow that, because they're going to come out of this with a smaller dealer network.  Wouldn't it be better for them to make sure all of their dealers get some share of production based on their sales volume in prior years?

This is true in some cases.  Not all manufacturers are doing what BullfrogMN mentioned above and in these situations I think what you said is exactly what is happening.  It was a little nerve wracking to order millions of dollars of spas that weren't sold yet in such uncertain times but we saw no other choice.  So far it's proving to have been the right move.  Storage is going to be a problem in a few months though.
Title: Re: Spa Dealers and 2021 Product
Post by: Jag8 on December 17, 2020, 10:23:49 am
Are you suggesting that the biggest and/or weathiest dealers pre-emptively placed large volumes of orders and are effectively monopolizing the supply, and dealers who placed orders when they had buyers (as in a normal year) are screwed because they're backed up behind all these mega-orders?  If so, I think it's short sighted for the manufacturers to allow that, because they're going to come out of this with a smaller dealer network.  Wouldn't it be better for them to make sure all of their dealers get some share of production based on their sales volume in prior years?

This is true in some cases.  Not all manufacturers are doing what BullfrogMN mentioned above and in these situations I think what you said is exactly what is happening.  It was a little nerve wracking to order millions of dollars of spas that weren't sold yet in such uncertain times but we saw no other choice.  So far it's proving to have been the right move.  Storage is going to be a problem in a few months though.

With 2020 coming to a close and 2021 just weeks away, I just thought I would check in and see how everyone is doing. Inventory is trickling in at a slow but steady rate for us, luckily. 1 major manufacturer seems to be running way behind their projections while another major manufacturer seems to be fairly ontime with their time tables. The thing that has been getting to me is that with all this uncertainty in the world - Customers are on their wit's end and by default, so is our staff.

Personally, I am utterly shocked and amazed at the demand and how much the buying and selling process had changed - so rapidly. I never thought I'd see the day hots tubs would have furniture esque production timelines or that I would be saying "you can actually make a baby faster than I can get you that specific unit". Extreme lead times given and all things considered, I feel blessed to be a part of an industry that is booming and over a year out during one of the more challenging time periods that come to mind in American history.
Title: Re: Spa Dealers and 2021 Product
Post by: CanadianSpaTech on December 17, 2020, 06:08:15 pm
I think some of the increase in customers is also in part due to consumers spreading a wider net hoping to find something in stock or at the very least a reasonable lead time.
Title: Re: Spa Dealers and 2021 Product
Post by: Hottubguy on December 17, 2020, 07:46:42 pm
I think some of the increase in customers is also in part due to consumers spreading a wider net hoping to find something in stock or at the very least a reasonable lead time.


I thought the same for awhile until I started looking at lists for tubs coming in June/July. Surprised at amount that I have deposits on.
Title: Re: Spa Dealers and 2021 Product
Post by: Jag8 on December 18, 2020, 01:06:32 am
I think some of the increase in customers is also in part due to consumers spreading a wider net hoping to find something in stock or at the very least a reasonable lead time.


I thought the same for awhile until I started looking at lists for tubs coming in June/July. Surprised at amount that I have deposits on.
I have had customers place brand spanking new orders as recent as November. With a 55-60 week timeline? It will be interesting no doubt.


Title: Re: Spa Dealers and 2021 Product
Post by: BullFrogSpasMN on December 18, 2020, 12:20:02 pm
frustrating year all around, anyone in the business knows all of the problems we are having at this point lol.  We have 'slots' reserved and/or tubs on order that will land throughout all of 2021 from Bullfrog, Nordic, Wellis, Aspen, and some Swim Spas and Spas from Dynasty, if demand is similar to this year I still don't think we have enough on order or the flexibility to change/modify/expedite certain product(s) which is what it is, nothing can be done about it of course so it will be a little frustrating for sure but what can ya do besides lay out a ton of cash and hope for the best :-)

Title: Re: Spa Dealers and 2021 Product
Post by: Red MC on December 19, 2020, 09:55:01 am
I am a happy customer.  My wife and I wasted the month of July going back and forth over whether to attempt to repair the rotted frame on our old tub or buy a new one.  Uncertainty about whether we could get a new hot tub here before winter definitely made it a hard decision.  I wasn't looking forward to taking delivery with a couple feet of snow on the ground and persistent sub-freezing temps.

We put in a new order at the end of July for the exact model we wanted, with an estimated build date in late Nov.  It was built during the week of Thanksgiving and was on my patio a week later.  I am so glad we didn't wait any longer than we did, because friends who went shopping at the end of summer had to a accept a model that wasn't quite what they wanted but was already in the production queue, with delivery in Feb.  They would have had to wait until late 2021 to get the one they wanted.
Title: Re: Spa Dealers and 2021 Product
Post by: Hottubguy on December 19, 2020, 09:55:47 pm
frustrating year all around, anyone in the business knows all of the problems we are having at this point lol.  We have 'slots' reserved and/or tubs on order that will land throughout all of 2021 from Bullfrog, Nordic, Wellis, Aspen, and some Swim Spas and Spas from Dynasty, if demand is similar to this year I still don't think we have enough on order or the flexibility to change/modify/expedite certain product(s) which is what it is, nothing can be done about it of course so it will be a little frustrating for sure but what can ya do besides lay out a ton of cash and hope for the best :-)

I hear this. I did the same (different brands except Nordic). Laying out tons of cash to make it happen. Hope the payoff is there at end of year. Very nerve wracking and not knowing if I will have enough tubs to meet supply or will it be too much supply and not enough buyers. I went heavy on orders and judging by what is already sold I don’t think I will have enough tubs for the year either.
Title: Re: Spa Dealers and 2021 Product
Post by: CV3720 on January 10, 2021, 03:24:17 pm
I am a happy customer.  My wife and I wasted the month of July going back and forth over whether to attempt to repair the rotted frame on our old tub or buy a new one.  Uncertainty about whether we could get a new hot tub here before winter definitely made it a hard decision.  I wasn't looking forward to taking delivery with a couple feet of snow on the ground and persistent sub-freezing temps.

We put in a new order at the end of July for the exact model we wanted, with an estimated build date in late Nov.  It was built during the week of Thanksgiving and was on my patio a week later.  I am so glad we didn't wait any longer than we did, because friends who went shopping at the end of summer had to a accept a model that wasn't quite what they wanted but was already in the production queue, with delivery in Feb.  They would have had to wait until late 2021 to get the one they wanted.

Agreed (customer here) - ordered in July and enjoyed it in December! I contemplated a cabinet color change after the first couple of weeks, but didn't want to "risk" what that might have done to my place in line!
Title: Re: Spa Dealers and 2021 Product
Post by: Spatech_tuo on January 11, 2021, 10:52:46 am
Agreed (customer here) - ordered in July and enjoyed it in December! I contemplated a cabinet color change after the first couple of weeks, but didn't want to "risk" what that might have done to my place in line!

Yeah I'd be afraid the response to such a question would be "no soup for you, Next!".