Hot Tub Forum
Original => Hot Tub Forum => Topic started by: CV3720 on August 05, 2020, 04:07:55 pm
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Just wondering when placing an order for a hot tub, through a dealer, what amount of payment you've typically been asked to make. (informal poll!)
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I asked a bunch of different dealers the same question last month. The answers I got ranged from $1500 to $5000. Due to the pandemic related delays, I suspect the dealers on the high end of that range were trying to get a little more up front than they might usually ask for, but I'm not sure about that. Quotes on the various hot tubs we were looking at ranged from $11k to $18k, but I'm not sure if that would make any difference.
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Every dealer is different. I request 50% down on special orders and 25% down if the hot tub was available inventory on an incoming truck,
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Want my COVID answer or regular answer lol. Typically I’m same as Castletonia for most part. In stock 20% special order 50%. Right now in stock paid in full but special orders I am taking smaller deposits because of the uncertainty of when tubs will be received. I’m giving everybody outs on special orders until I get confirmation they are in production then I up the deposit to my normal amounts.
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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.
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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 ;)
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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.
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!
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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.
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.
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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.
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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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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.
You in New Hampshire?
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Yup
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Too bad the BF/Hot Spring dealer didn’t have what you needed. Tommy is a good guy to deal with over there. Super friendly and knowledgeable
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That's my impression as well. I've met Tom, Steve, Bob (co-owner) and Mary. They're friendly, knowledgeable, low pressure, offer a fair price up front so you don't waste time playing haggling games, and they have one of the best reputations in the area among owners. I did buy a Big Green Egg from them, and it was the first place we went to when looking for a new hot tub. It's just that we wanted a spa that could fit 8, preferably with no lounger. Hot Spring doesn't make anything that big. Bullfrog offers the M9, which we were interested in, but we weren't sure about the Adirondack chair-style seating. We didn't care for the Adirondack chair seats in the D1 Amore Bay that we tested, and we sometimes like to play cards while we're soaking and you need to sit upright for that. There was no chance of testing the M9 since nobody has them, at least not around here, so that was out. We like the A8 and the Grandee, but just decided to go bigger.
By the way, are you down in Lakeville? If so, have you ever sold a V150P swim spa? We were really curious about that one, but the length would have been awfully tight on our patio.
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Yes I am. I have 3 on order but haven’t delivered any yet. It’s new for this year. Seems like a pretty cool unit.
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I'm curious, since we have a lot of dealers online here. Are the manufacturers requiring a down payment, or is it just the dealers that are requesting a down payment? Reason I ask, is that I too am being asked to put 50% down. It's not that I don't trust that they'll be in business, it's the fact that I'll have $7k wrapped up ($14 total) in a hot tub that I won't get for at least 6 months from now. I understand that dealers want a deposit to make sure that the buyers are serious and can afford the final price when it comes, but when the wait is over 6 months now, 50% seems excessive.
To give you perspective on this, I'm selling some of my personal investments to pay for the hot tub. $7k upfront for the hot tub down payment, invested at 10% rate of return over the 6 months I have to wait, is about $350. I'm losing $350 just by having the dealer hold my money versus letting my investments build more money until the hot tub arrives. That would almost completely pay for my EOS Ozone Generator.
I'm just trying to figure out why the down payments are so large.
I understand having to put down something, but 50% seems outrageous. I mean to reserve a Tesla Model 3, all you had to do was put down $1000 and that was a significantly more expensive purchase than a hot tub.
I am not meaning any disrespect to the dealers on here, I'm just trying to understand why the deposit is so high.
Thanks!
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No manufacturers I deal with require downpayments. You either pay for the tubs before they ship out which I do sometimes or some dealers have a floor planning system where you pay as they are sold. Like I said in a previous post I’m doing small deposits once tub goes into production in x number of weeks or months I get a second deposit and on delivery final payment. Personally I don’t want the large down payment right now because I’m being very flexible with my cancellation policy. What other dealers are doing is really up to them as well as up to the clients. Have you asked about putting a smaller deposit down and maybe upping deposit when tub goes into production?