Hot Tub Forum
Original => Hot Tub Forum => Topic started by: mowgli1 on March 30, 2005, 09:59:30 am
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I have been getting prices while shopping for a tub in an unique way. We live in Michigan but will be moving to Tucson Az. in a few months. We have been looking in Michigan and getting prices here and talking also to dealers in Tucson where we will be buying. We have narrowed it down to D1 Sarena Bay and 2005 Sundance Maxxus. The price for the Sarena Bay in Mi is $13,000 and $11,000 in Tucson. Maxxus is $11,900 in Mi and $9900 in Tucson. I know prices vary because of shipping and other factors but $2000 is quite substantial. Samhunter's price on his Maxxus was about the same as I was quoted in Tucson and his tub will be shipped from Cailfornia to New Hampshire. It can't be just about shipping costs. I'm just glad I'm buying in Az not Mi! Anyone have a plausible explanation? ??
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Fixed Cost
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Fixed Cost
Can you expand on that a little more?
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I think its Chas here that uses his own truck to pick up from the Manufacturer. Volume may play a key with the unit and shipping costs. I work in a Warehouse and I deal with software that sets rates for trucking companies and the rates can vary a great deal based on volume, location, and how much we fill the truck.
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Can you expand on that a little more?
Salary, rent, utilities, taxes...
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i think there are several reasons for the difference, some mentioned above. we also live in a capitalist society (this is a GOOD THING) a dealer has to make money to stay open and provide service. if he undercharges, he goes bankrupt. if he overcharges, no/ low sales, and he could still go bankrupt.
every market is different.
for example: i have a 15 year old, 2200 sq ft house on a quarter acre lot, in va beach. houses in my neighborhood sell for $250-300k. several months ago, almost moved to ga(just 21 miles north of atlanta) and could have bought new construction, 3/4 acre lot, 3500 sq ft home with 1600 sq ft walk out basement (total just over 5000 sq ft) for $325k.
you pay what the market will bear, which is often dependent on where you live...
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i think there are several reasons for the difference, some mentioned above. we also live in a capitalist society (this is a GOOD THING) a dealer has to make money to stay open and provide service. if he undercharges, he goes bankrupt. if he overcharges, no/ low sales, and he could still go bankrupt.
every market is different.
for example: i have a 15 year old, 2200 sq ft house on a quarter acre lot, in va beach. houses in my neighborhood sell for $250-300k. several months ago, almost moved to ga(just 21 miles north of atlanta) and could have bought new construction, 3/4 acre lot, 3500 sq ft home with 1600 sq ft walk out basement (total just over 5000 sq ft) for $325k.
you pay what the market will bear, which is often dependent on where you live...
Your house would be worth a million in Orange county. Not the same analogy. A Maxxus is the same in Va or Ga or Mi or Ca. I don't see how fixed costs warrant a $2000 per unit diference, $500- $800 maybe. But I don't sell spas for a living, so I defer to those that do.
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Exactly- Free market at work.
If prices are too low, dealers go out of business. If they are truly overpriced, then the run out of customers and go out of business anyway.
Even though my Sundance dealer has a lock on the brand in my area, they still have to compete with the multitude of other brands.
Test the waters by offering less than asking price and see what, if any, room for negotiation you get.
My dealer doesn't negotiate on anything except clearance floor models, and they don't give much there.
And yet they are thriving. Or appear to be.
Brewman
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Your house would be worth a million in Orange county. Not the same analogy. A Maxxus is the same in Va or Ga or Mi or Ca. I don't see how fixed costs warrant a $2000 per unit diference, $500- $800 maybe. But I don't sell spas for a living, so I defer to those that do.
to a point i agree, housing is more subjective.
better example. i bought a conversion van last october. i wound up buying it thru an i-net site that specializes in hightop vans. the conversion company is quality coach in indiana. they have an authorized dealer here in my area (with in 22 miles) the local dealer wanted $3,680 MORE for the exact same unit that i got thru a dealer in indiana. i paid $565 to have it shipped here to my office, so the net difference was, i saved $3,115, again, on the exact same new vehicle. the dealer in indiana isn't santa claus, i know they made some money off the deal, and more power to them. i felt i got a good value for my money
i am not a spa dealer, so i dont know what the mark up is.
ther are some fixed costs, and some variable, depending on dealer volume, their shipping costs, etc.... but i strongly agree with the above statement, ITS A FREE MARKET.
pricing is largely dictated by what the market will bear.
i'm sure you COULD build a tub that seats 12-15, has 6 5-horse pumps, 150 jets, motorized cover, 50" flat screen tv, stereo,a cappucino maker, blender and waterproof wireless i-net mouse and keyboard.
but who would buy a $25k hot tub?? :o :o
you know.... it may not be that hard to add i-net access to your tub (assuming you have a tv already there, and cable). i wonder if any one makes a waterproof keyboard and mouse? ;D :D ;D
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to a point i agree, housing is more subjective.
better example. i bought a conversion van last october. i wound up buying it thru an i-net site that specializes in hightop vans. the conversion company is quality coach in indiana. they have an authorized dealer here in my area (with in 22 miles) the local dealer wanted $3,680 MORE for the exact same unit that i got thru a dealer in indiana. i paid $565 to have it shipped here to my office, so the net difference was, i saved $3,115, again, on the exact same new vehicle. the dealer in indiana isn't santa claus, i know they made some money off the deal, and more power to them. i felt i got a good value for my money
i am not a spa dealer, so i dont know what the mark up is.
ther are some fixed costs, and some variable, depending on dealer volume, their shipping costs, etc.... but i strongly agree with the above statement, ITS A FREE MARKET.
pricing is largely dictated by what the market will bear.
i'm sure you COULD build a tub that seats 12-15, has 6 5-horse pumps, 150 jets, motorized cover, 50" flat screen tv, stereo,a cappucino maker, blender and waterproof wireless i-net mouse and keyboard.
but who would buy a $25k hot tub?? :o :o
you know.... it may not be that hard to add i-net access to your tub (assuming you have a tv already there, and cable). i wonder if any one makes a waterproof keyboard and mouse? ;D :D ;D
How does your local dealer feel about servicing your van that you didn't buy from him? By your logic one should just scour the country looking for the best price and have your spa shipped to you. I tried that with the Master Spa traveling road show until Stuart showed me the flawed logic in buying like that. Any way I am not trying to imply good dealers are overcharging customers. My number one consideration when buying my spa will be the dealer relationship. There are so many good products on the market. I know I can find the right tub but the right dealer will be just as important
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Spas and Housing....some use this as an example....myself included .....the point to it, is not the cost of the spa in a area but the cost of doing business in an area that varies greatly.... things like Gary mentioned are simple realties ....Insurnace .....Salaries.. rent and also if you live in a seasonal area where it is only practical to do install of your spa only during the fall...spring or summer but winter might not be .... this will have an effect on the costs .....but I will say that 2000.00 is a steep difference ...
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as to my van, there are 9 chevy dealers with in 35 miles of my home. where i have my service done is not even the dealer that sells quality coach conversions. chevy warrantees the chevy van, and gm corp pays the dealer for service work done, no matter if the dealer is here or anywhere else. quality coach has their own 3 yr warrantee on the conversion package. they will pay any chevy dealer for work required. (they already did once on my van, and i had no problems with them at all).
part of my decision was to buy from a conversion van company with a great reputation for service and longevity in the biz. very similar to my hot tub search. i went to the dealer here that sells QC vans, and showed him the quote from the IN dealer, and the estimate for shipping. tried to work out a deal. he said no. his price is his price, take it or leave it. thats how a free market works. in this case i left it and bought the exact same thing (not similar, but exact) thru another dealer for a LOT less. as i work hard for my money, and i would assume everyone else does, i dont see why i should throw away $3k for no reason???
HOWEVER, as they are nowhere near as many tub dealers as there are chevy dealers, so its a different ballgame. if you read back thru my earlier posts, you will see very clearly that i was at one point looking to buy tub online. as service is and will be an ongoing issue, i purchased locally from a rep. dealer, and strongly encourage others to do the same.
on that note....
HEY DEALER FOLKS. how does it work for you guys as far as servicing a brand you sell, but not an actual tub you sold? if its valid warrantee work, doesn't the maker pay you the same as if you sold it from your store? do you treat them differently? i notice chas is looking for a source for sundance parts, i dont think he even sells that line, but he is servicing them anyway. your thoughts?
before we get to much farther off track......
i still stand by my original statement. how much you pay can/is based on where you live and what your local market is like. AND IT SHOULD BE! healthy competition, for the most part, keeps everything balanced. if the michigan market is charging an average of $2000 more than the arizona market, and people are paying the price, as long as they do, the prices will stay the same..... sounds like they need a dose of competition.... ;) ;)
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I just returned from a Master Spa dealer who doesn't carry D1 any longer because of the shipping (PA here). He can't justify to the customer why he is better off with a unit that is more expensive simply due to the expense of getting it here from CA. And just off the top of my head, I would think there is more demand for a spa in colder climates than in very warm ones (but what do I know, lol)
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hello! ! !
yeah..i agree.. 2000K is a BIG DIFFERENCE.. but... what if he has 2 times the amount of employees in order to service his spa customers 10 times better..what if the rent of the property is twice as much.. what if.. what if...
the SPA market could be different as well.. if the first dealer you addressed was in a market where there was 10 cheapo spa dealers within 10 miles.. it might be more difficult to compete.. and for competition reasons.. he might have to price his tubs with little or no margin..
but.. if the second dealer has a market with higher priced dealers.. it might be the "going thing" to have a higher priced tub .. IN ORDER TO COMPETE...
when's the last time you saw a company in the newspaper.. that went outta buisness .. cuz the prices were too high??! ;o)
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as to my van, there are 9 chevy dealers with in 35 miles of my home. where i have my service done is not even the dealer that sells quality coach conversions. chevy warrantees the chevy van, and gm corp pays the dealer for service work done, no matter if the dealer is here or anywhere else. quality coach has their own 3 yr warrantee on the conversion package. they will pay any chevy dealer for work required. (they already did once on my van, and i had no problems with them at all).
part of my decision was to buy from a conversion van company with a great reputation for service and longevity in the biz. very similar to my hot tub search. i went to the dealer here that sells QC vans, and showed him the quote from the IN dealer, and the estimate for shipping. tried to work out a deal. he said no. his price is his price, take it or leave it. thats how a free market works. in this case i left it and bought the exact same thing (not similar, but exact) thru another dealer for a LOT less. as i work hard for my money, and i would assume everyone else does, i dont see why i should throw away $3k for no reason???
HOWEVER, as they are nowhere near as many tub dealers as there are chevy dealers, so its a different ballgame. if you read back thru my earlier posts, you will see very clearly that i was at one point looking to buy tub online. as service is and will be an ongoing issue, i purchased locally from a rep. dealer, and strongly encourage others to do the same.
on that note....
HEY DEALER FOLKS. how does it work for you guys as far as servicing a brand you sell, but not an actual tub you sold? if its valid warrantee work, doesn't the maker pay you the same as if you sold it from your store? do you treat them differently? i notice chas is looking for a source for sundance parts, i dont think he even sells that line, but he is servicing them anyway. your thoughts?
before we get to much farther off track......
i still stand by my original statement. how much you pay can/is based on where you live and what your local market is like. AND IT SHOULD BE! healthy competition, for the most part, keeps everything balanced. if the michigan market is charging an average of $2000 more than the arizona market, and people are paying the price, as long as they do, the prices will stay the same..... sounds like they need a dose of competition.... ;) ;)
I'm just happy to be moving to Tucson where the market "bears" low prices on spas and high prices on snow shovels and rock salt!! 8) ;D
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hello! ! !
yeah..i agree.. 2000K is a BIG DIFFERENCE.. but... what if he has 2 times the amount of employees in order to service his spa customers 10 times better..what if the rent of the property is twice as much.. what if.. what if...
the SPA market could be different as well.. if the first dealer you addressed was in a market where there was 10 cheapo spa dealers within 10 miles.. it might be more difficult to compete.. and for competition reasons.. he might have to price his tubs with little or no margin..
but.. if the second dealer has a market with higher priced dealers.. it might be the "going thing" to have a higher priced tub .. IN ORDER TO COMPETE...
when's the last time you saw a company in the newspaper.. that went outta buisness .. cuz the prices were too high??! ;o)
Sounds like a great business model . Airlines, steel, and textiles to name a few are out of business because they couldn't compete
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here's a few more variables:
What type of stores do they have??? Are they big 10K sq ft stores??? Large stores cost a lot of money to heat and cool.
what type of help do they have??? Good help is difficult to find, and even more difficult to keep around.
What kind of lift, steps or other accessories are being included in the price quote??? Not all steps and lifters are made the same, even though they all do the same thing.
Just some food for thought.
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Kent ,this may start a problem, but, if a customer buys a tub from a different dealer in the same geographic area as my store he will not be getting service from me. Warranty work is not profitable. When we set the price for a tub we are not only factoring in cost of spa, shipping, etc. but the any possible future service calls. If a consumer moves a spa from a different locale and provides me with proof of purchase I will gladly service it. If you go 100 miles away to save $200.00 don't ask me to fix any problems under warranty. I would definitely be interseted to hear other dealers thoughts.
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Kent ,this may start a problem, but, if a customer buys a tub from a different dealer in the same geographic area as my store he will not be getting service from me. Warranty work is not profitable. When we set the price for a tub we are not only factoring in cost of spa, shipping, etc. but the any possible future service calls. If a consumer moves a spa from a different locale and provides me with proof of purchase I will gladly service it. If you go 100 miles away to save $200.00 don't ask me to fix any problems under warranty. I would definitely be interseted to hear other dealers thoughts.
To be clear............I know nothing about running a spa dealership and repair service. I have however been in a service related industry for 20 years and this just seems a bit short sighted to me. Wouldn't you want to provide good service no matter where the spa was purchased? Wouldn't that give you the chance to I don't know, sell some Chems, make new contacts with their friends, family and co-workers who are ready to buy, be next in line for the time they move and want to get something new?
I'm currious, how much would you build into the price of the spa for "possible" future service calls? It would seem to me a consumer might like to have the choice of whether they'd like to prepay for service they might need at some point.
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Kent ,this may start a problem, but, if a customer buys a tub from a different dealer in the same geographic area as my store he will not be getting service from me. Warranty work is not profitable. When we set the price for a tub we are not only factoring in cost of spa, shipping, etc. but the any possible future service calls. If a consumer moves a spa from a different locale and provides me with proof of purchase I will gladly service it. If you go 100 miles away to save $200.00 don't ask me to fix any problems under warranty. I would definitely be interseted to hear other dealers thoughts.
Wow! I have a problem with that! >:(
Kvnlaw, how in the hell can you factor in "possible futrue service calls" ??? ??? I am assuming that you at least "break even" on warranty service calls. That being said, say I buy a spa and have no warranty service calls. You factored in the "possible future service calls" into my price. Now, two years after the warranty expires, I have a service call that you charge me for (as well you should if the warranty expired). So, in essence, you have charged me TWICE for the service call! >:( >:(
Once on the"possible future service call" and once on the actual call when the tub is out of warranty. Please let me know if you are located in the NW PA/ NW Ohio area so I can AVOID buying a spa from you!!! This "possible future service call" sounds like a rip-off to me!!
drprwnap 8)
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drprwnap,
You said, “Wouldn't you want to provide good service no matter where the spa was purchased? Wouldn't that give you the chance to I don't know, sell some Chems, make new contacts with their friends, family and co-workers who are ready to buy, be next in line for the time they move and want to get something new?”
If it were that easy it would be great, but if you are not a dealer for a specific brand it tends to be difficult to replace certain parts. A perfect example would be the “Moto-Massage.” Try to get that part from a non-Hotspring dealer. That is why the majority of dealers do not service spas unless they are a dealer for that specific brand.
Most dealers I think would love to be able to fix anyones spa, but it can be somewhat difficult getting parts for them.
Chris
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would have to agree with perky...
i i bought a brand x tub from you and a pump died with in a year, you would replace it and bill the manufacturer, wouldn't you? if i bought a brand x tub from a dealer 100 miles away to save $1000, and the pump breaks with in the year, as a brand x dealer, you can opt not to repair a warrantee issue? this is different than my biz. i am the ops manager for a security/ home automation/ CCTV installation company. we use specific lines of equipment, but often pick up service work on equip we did not install (i.e. home/buisness owner had sytems installed thru a builder when home was new, already there when purchased,etc...) we do charge trip charge and/or labor if makers warrantee is still in effect. but as a dealer of certain equipment, we often get referals from manufacturer to repair/replace things we didnt install.
in my biz we sell service contracts that range from $5-25 a month.(depending on the type, size, and cost of the system) for that, we will fix or repair anything defective or even NORMAL wear and tear, as long as they pay the monthly fee. does anything like this exist in the spa industry? i think you would find many people interested in some thing like that.....
and you would get a higher satisfaction rating in the long run.....
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Kent,
When I was going to buy a master spa from a factory rep at a show in Mi, I was told it would be delivered and serviced by the local MS dealer in Tucson. When I called the Tucson dealer he told me he would not deliver or service it since I didn't buy it from him. I would have get service from a contract repair service that master spa corp. refered me to. So I guess a dealer can refuse to do warranty work
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I am assuming that you at least "break even" on warranty service calls.
When you assume you make an... (teasing)
The reality is that quite often a dealer does not break even on warranty work, mainly due to the expense and time of getting a service tech out to a customers home (sometimes more than once).
Now if somebody wanted to bring their hot tub to the store tol be worked on, that's a different story :D
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drprwnap,
You said, “Wouldn't you want to provide good service no matter where the spa was purchased? Wouldn't that give you the chance to I don't know, sell some Chems, make new contacts with their friends, family and co-workers who are ready to buy, be next in line for the time they move and want to get something new?”
If it were that easy it would be great, but if you are not a dealer for a specific brand it tends to be difficult to replace certain parts. A perfect example would be the “Moto-Massage.” Try to get that part from a non-Hotspring dealer. That is why the majority of dealers do not service spas unless they are a dealer for that specific brand.
Most dealers I think would love to be able to fix anyones spa, but it can be somewhat difficult getting parts for them.
Chris
i dont know about the other posts, but i meant brand specific. if i have a HS spa and you are an HS dealer, and i have a valid warantee claim or problem (pump failure for example) how can a HS dealer say no, i wont work on your HS spa, as you didnt buy it from me? what if i bought it from another dealer who is now closed and you are the only dealer left in the area?
is the spa biz that much different that any other? if your paid for doing warrantee work by the manufacturer, what difference could it make where i bought it from??? :o :o
i myself just bought a caldera, only had it for a week, and just found out i may be moving to delaware. i doudt i can recoup full price to include it with the house when its sold, so i was planning on moving it with me. i guess i better check on the caldera dealers up there to see what their policy is....
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If you read the warranty on most tubs it states that warranty work will be done by an authorized service agent designated by the manufacturer, not the dealer of your choice.
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Wow! I have a problem with that! >:(
Kvnlaw, how in the hell can you factor in "possible futrue service calls" ??? ???
That's how I understand it from what I've heard dealers say. They generally do not profit nor "break even" for warranty work and therefore their margin includes "cost" of warranty work. (Many dealers also will charge a "trip charge" for warranty calls.)
think of it as an obligatory insurance premium
Here's a thought...
Wouldn't it be nifty if dealers gave you the option?...
Price of the spa is $xxxxx.
You can choose the unlimited warranty service for an additional $yyy or pay $zzzz for each warranty service call.
any dealer offer such an option?
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i myself just bought a caldera, only had it for a week, and just found out i may be moving to delaware. i doudt i can recoup full price to include it with the house when its sold, so i was planning on moving it with me. i guess i better check on the caldera dealers up there to see what their policy is....
I imagine their policy is the same as ours. If someone drives 2 hours to buy a HotSpring Spa in Dallas, that is their prerogative. It is our prerogative not to service it as we would expect the Dallas dealer to do so.
If someone lives in Dallas, bought a HotSpring Spa up there, and moved here, we would happily service that spa.
Do you see the difference?
Terminator
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I imagine their policy is the same as ours. If someone drives 2 hours to buy a HotSpring Spa in Dallas, that is their prerogative. It is our prerogative not to service it as we would expect the Dallas dealer to do so.
If someone lives in Dallas, bought a HotSpring Spa up there, and moved here, we would happily service that spa.
Do you see the difference?
Terminator
Nicely put!
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Warranty work was discussed on Doc's board about 6 months ago. Basically ALL dealers have the right to refuse service - unlike a warranty from a car manufacturer.
That is why you need to weigh the savings that your getting with possibility of local service. I bought at a dealer who told me their customers take priority over other calls. I'm hoping that they will be around for many years ... just in case.
I actually have a local dealer by me that closes up shop whenever he feels like it and goes on vacation without backup. I called the manufacturer and they said most repairs can wait until the dealer gets back. That put a red flag out to me and thought of the scenario of -40 F winter and tub dies and my dealer is off skiing and having a good time - I quickly decided that the dealer and manufacturer were off my list.
After reading the thread on Doc's board, I have to say that the dealers are right. If they don't get paid what the tech makes they won't be there in the future. Doing warranty work is a necessary evil for the dealers. They have to be there for their customers.
As a consumer, you have the right to go elsewhere to purchase a tub, as a dealer they have the right to say no. It is 2 sided!
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I really don't have a problem with a dealer refusing to service a tub that someone went elsewhere to buy for a better price. My problem is the "futrue service calls factored into" the price of my spa. If I buy a spa from a dealer and he treats me good, I will:
1. Buy chemicals from him.
2. Buy spa accessories from him.
3. Tell everyone I know what a great dealer he is and praise him to no end (especially to friends looking for a spa). :D :D
So the dealer gets a new, loyal customer. Why the need for the "future service calls" bs???
drprwnap 8)
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Well, I guess it gets down to price and I would think that all dealers are building that in. If they have 5 service techs and there's no long wait times - that is what your paying for or the owner goes out on the service calls, maybe it's greed. If you looked at brand A and saw it for $7,000 and you look at the same brand and found it for $6,700 then most likely you will go the second store and buy, but do they have the same service department?
What is considered good? Is a low price considered good? If the owner remembering your name is that considered good? Your tub breaks down on Thanksgiving (or a Sunday) and they get a tech out to you considered good? I would opt for this! After reading posts for a long time A LOT of people want that $12,000 spa for $4,000.
I agree with you but to some people a low price is what their after. In my example I probably could have gotten a spa cheaper by going with the local dealer who does what he wants but I decided to buy from a different dealer who wasn't as flaky.
Did I shop price - sure I did. But all the dealers I called to shop at I asked if they would cross territory lines and they all answered - yes! I would have expected them to service what they sell.
Will I support my dealer - I can't honestly say yes. I would love to but they are 1/2 hour away and I'm sure pricey on most of their items (I could buy 2 bottles of dichlor at a time). If it's an Artesian product - I'll be there (pillows and such) but I probably can get product (dichlor) on line for cheaper.
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If I buy a spa from a dealer and he treats me good, I will:
1. Buy chemicals from him.
2. Buy spa accessories from him.
3. Tell everyone I know what a great dealer he is and praise him to no end (especially to friends looking for a spa). :D :D
So the dealer gets a new, loyal customer. Why the need for the "future service calls" bs???
drprwnap 8)
This is exactly our train of thought on the matter. We are here to sell spas, a lot of spas, and that is where we make our money. We are not looking to make our living from our service department. It is strictly there to make sure our customers remain happy and keep sending their friends and family here to buy spas.
None of our competitors even have a service department. It's all subcontracted between a couple of no account varmints that don't even have gas money to go out on calls most of the time. We have 3 full-time service techs and we take care of our own! ;D
Terminator
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So the dealer gets a new, loyal customer. Why the need for the "future service calls" bs???
drprwnap 8)[/quote]
Many times customers call with a "problem". When you arrive at their house, you realize that there is not a problem at all. This scenario happens often with new spa owners. The dealer only gets paid for true warranty related calls. If it is not a warranty issue, the dealer is out tech pay, gas, wear and tear etc... If they have not made enough on the sale of the spa, they will be less inclined to provide this level of service. The fact of the matter is warranty work is a break even prospect at best. Building a little extra profit to cover these scenarios results in timely service.
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I figured this would generate a quite a few responses. I may have not worded things quite the way I intended. Warranty work is definitely not a money maker(break even if you're lucky). I am here to service my customers first and foremost. I will gladly sell chems., accessories etc. to anyone. If you move your spa from out of state or from a great distance and it's under warranty I will service it. If you went an hour away to save money, have your selling dealer fix your problem. Just an example. I had a dealer about 40 minutes south of me who would sell a spa for little to no profit when he found out someone had been in my showroom. After delivery if the customer had a problrem they would be at the very bottom of the food chain for service or treated so badly they would call us for service. In a case like that I would service the spa but I will also charge them a trip charge and labor which is my right. This is not a charity. It is a for profit business. If you don't make a profit you don't stay in business very long. We will soon be celebrating 20 years so we must be doing something right.
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Kent ,this may start a problem, but, if a customer buys a tub from a different dealer in the same geographic area as my store he will not be getting service from me. Warranty work is not profitable. When we set the price for a tub we are not only factoring in cost of spa, shipping, etc. but the any possible future service calls. If a consumer moves a spa from a different locale and provides me with proof of purchase I will gladly service it. If you go 100 miles away to save $200.00 don't ask me to fix any problems under warranty. I would definitely be interseted to hear other dealers thoughts.
I am sorry but that is just plain nutty. I would do the service call and charge them a little mileage and try sell them other things as in chemicals, filters... and like alwaysperky stated you have a chance to pick up some new leads. I do not turn down any work. I understand warranty is not a profit center but it can be if you try a little.
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If you went an hour away to save money, have your selling dealer fix your problem.
This should be used as your opportunity to gain that customer back. If you pass on this chance you will lose out on new customers.
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This is not a charity. It is a for profit business. If you don't make a profit you don't stay in business very long. We will soon be celebrating 20 years so we must be doing something right.
AMEN!
Terminator
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So the dealer gets a new, loyal customer. Why the need for the "future service calls" bs???
drprwnap 8)Many times customers call with a "problem". When you arrive at their house, you realize that there is not a problem at all. This scenario happens often with new spa owners. The dealer only gets paid for true warranty related calls. If it is not a warranty issue, the dealer is out tech pay, gas, wear and tear etc... If they have not made enough on the sale of the spa, they will be less inclined to provide this level of service. The fact of the matter is warranty work is a break even prospect at best. Building a little extra profit to cover these scenarios results in timely service.
we have he same kind of issues in my biz, as far as customer error, or other non warrantee problems. we make it very clear when a service call is requested, if its not a warrantee related issue, a $68 trip charge + $65 per hour charge/ with a 15 minute minimum($16.25) charge applies. there are exceptions to every rule of course, but are not santa clause.
we do sell the service contracts i mentioned above, and honestly they make enough $ to cover our overall service costs + small profit.
i had asked earlier but got no response.. do any of you dealers offer any kind of long term service contracts?
i used to never buy them on other things i buy, but after a fiasco with a GE dryer very recently, i purchased the extended warranty plan on a $430 (NOT A GE PRODUCT, NEVER AGAIN) dryer for $89, to go from standard 1 yr to 5 years.i did this after i was told, my 12 1/2 month old dryer that was 2 weeks out of warrantee was going to cost $158 to fix.(it was $210 new) but i digress, just wanted to vent.....
since it sounds as though the warrantee reimbursement is not really working for most dealers, has anyone addressed it with their respective manufacturers?
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i had asked earlier but got no response.. do any of you dealers offer any kind of long term service contracts?
When I questioned my dealer about the 3 year warranty, they offer an extended warranty through them. Their whole thing was that the Artesian Island series is as good as their Platinum and Gold series that they really don't see the need but for those of us who are still nervous - we can get one.
I still think that if you went to a dealer and he/she was too expensive for the tub that ALL their products are going to be expensive. I can't see buying from a dealer an hour away to save $200 and now go to the local one and buy whatever else you need especially when you can buy through the internet.
I have a local dealer and he is expensive but people go to him. I have a friend who swears by them but for me they just are too expensive. YES, they need to make a profit but I don't have to shop them. I needed Algaecide from them for my pool, walked in and bought a quart for $24 a week later I went to Leslies pool supplies and bought a half gallon (a quart was $13.95) for the same price - It was the same ingredient 60% poly........... Both stores HAVE to make a profit but one is cheaper and I shop that store.
I have to say that if you moved into the area, the closest dealer should be forced to take care of you under warranty by the manufacturer. But if you bought from a different dealer then that dealer is responsible for you.
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I know this has been beat to death -- but I have one other item to share. I was and am still interested in an Artesian Antigua. My local dealer (that has most of the northeast tied up) offered to give me a deal and sell me the 29 jet model for $6500. From this forum I spoke with a person who bought the 38 jet model in Knoxville for $4200. I even called the store and they told me they sell the 29 jet model for $3900.
I sent an email to Artesian and they gave me a lame excuse and told me that thye TN store absolutely will not and can not sell and ship the spa to me in Boston.
M
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My local dealer (that has most of the northeast tied up) offered to give me a deal and sell me the 29 jet model for $6500. From this forum I spoke with a person who bought the 38 jet model in Knoxville for $4200. I even called the store and they told me they sell the 29 jet model for $3900.
Wow, that is an extreme difference. Are you sure this was apples to apples?
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I know this has been beat to death -- but I have one other item to share. I was and am still interested in an Artesian Antigua. My local dealer (that has most of the northeast tied up) offered to give me a deal and sell me the 29 jet model for $6500. From this forum I spoke with a person who bought the 38 jet model in Knoxville for $4200. I even called the store and they told me they sell the 29 jet model for $3900.
M
What are other spas going for in your area? I found that the Down East and Sweetwater were about the same price as the Island series.
If they are selling for a lot less - I would say walk away from that dealer and spa brand. If it's because of greed, then that dealer won't be around much longer but if it's the going price - then that's the price in your area. There's a person here that got his spa for $1,000 less than I got mine for - he got a steal and I believe I got a good price.
If the dealer does ship you the spa and you have problems, you might end up paying for service.
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Hello....
Something I wish more people could and would understand about Spas...The Market is in the bigger picture of things is VERY VERY SMALL...that is why you have dealers of a particular brand with a territory that is rather large .... If my understanding is correct the number of spas sold per year is less than 700,000 as many like to compare it to autos where annually sales exceed 16 million .....That is why there are not more dealers it is not an easy industry to succeed in....I am in no way in favor of those who do seem to be exceedingly higher priced than others...being in the industry I think a price difference of up to a $1000.00 can be acceptable based on your areas market there are genuine differences in the cost of doing business when it gets above that I myself have to go hummmm .....do keep in mind that at times there are a few dealers across the country who are no more than a catalog store where they show no tubs and are only a dealer because they might be a supply house or maybe a service center and a manufacture can not find another out let for their spas and as such these type of “dealers” with substantially much less overhead can sell for less these types of dealers are few and far between but do exist .....I think it is wise to shop and get the best deal possible however do keep in mind where you live and the type of dealer you are dealing with if they are a full service dealer you may pay a bit more but you are also getting more and again depending on circumstances up to a 1000.00 would not be out of line and also you may be the one who is on the low side of the scale ....Happy Shopping... :D
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Look at the post from this poor fellow/fellett. I'd guess they're bummin quite a bit thinking gosh, I might have even prepaid for service calls, and now I'm afraid I wont get service from anyone because I didn't buy the spa from them.
bulmer4nc
Ultimate Member
Even our Optima misses Hockey!!
Posts: 322
Dealer gone... now what?
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So... After all the debating about which spa to buy, we made our decision mostly based on how much we loved the local Sundance dealer. Well, 8 months later and they're gone. They still have a store that's about 2 hours away that I can call for support but that's a long way to go for supplies.
Anyone know of a place online that you can purchase Sundance supplies? Things like MicroFilters and socks for the footwell are mostly what I'm interested in.
Any thoughts?
Ken
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If it's the same dealer they are responsible for servicing the spa. Seems pretty simple to me.
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2005 Maxxus w/ steps, cover, lifter, chemical kit, and ozonator... and a free fishy toy :)
$10750 in St. Louis
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If it's the same dealer they are responsible for servicing the spa. Seems pretty simple to me.
Pretty simply perhaps...what you may not be factoring in is the cost of a trip out to service said spa! You bet your bottom dollar that they are charging for the trip.
We are strongly considering an Artesian Dove Canyon. Do we like it HELL YEAH! However, the dealer is located on the North side of Austin Texas....we live in San Antonio. Over 100 miles away and with traffic a good 2 hours driving (Austin traffic sucks) See where I am going?
I point blank asked them their warranty policy....oh yeah they will service it but each and every time it will be $75.00. Plain and simple.
Am I happy with this....HECK NO! Am I willing to put up with this???? Yes and I may not like it but I do understand it.
People state that the auto example is irrelevant or doesnt hold water kinda....let me use another auto example.....
Lets say I live in town X....
I LOVE Ferrari's!!!!!
I purchase a Ferrari wherever it doesnt matter.
However the nearest Ferrari dealer is 5 hours away maybe more.
I want warranty work done...what do I do? Either I find a Ferrari mechanic in town (pipe dream).....I have a Ferrari dealer come to me (NO WAY)....or I drive it to the place 5 hours away and have it fixed (BINGO!).
The problem with this is YOU are paying for the time and gas...does that suck...YES.
Now I doubt that the Ferrari mech would come out to you so you are left between a rock and a hard place.
Like I said....the dealer may be the one that has to service your spa...but they may not have to pay for the trip to and from your spa.
Just another take on the issue.....
BTW....just because the dealer wants to have a 10,000 sq foot showroom with palm trees and sand is his/her deal. If people are willing to pay that price then that dealer stays in business. If the people are not willing to pay that then they go under or reduce overhead.
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When you make the deal for the Dove Canyon have the dealer then exclude the travel charge. Get it in writing on the contract. They will back up that spa. I sell Sundance & HS and my next spa will be the Piper Glen. I have a 14 yr Cameo now. I'm tired of the lounge, it takes up 2 seats.
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you will find that in Tuscon the BIG DAWG dealer is L.A SPAS.I don't sell them I just know who runs the town. :o
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Moon,
Did you read my post?
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you will find that in Tuscon the BIG DAWG dealer is L.A SPAS.I don't sell them I just know who runs the town. :o[/quot
Tell that to Tucson Pool & spa or Patio Pool & spa. I'm sure they could use a good laugh.