Hot Tub Forum
Original => Hot Tub Forum => Topic started by: The_real_Clown_Shoes on May 08, 2006, 07:34:10 pm
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I, as most of you have probably surmised by now, am a Hot Spring dealer. However, we're in a market that is so overly saturated with competitive brands that I could probably name 10-15 brands our chem customers have (not counting Internet whack-jobs).
I recently had a woman come in who has a four-year-old Catalina spa with a real wood cabinet.
She wants to trade it in for a Hot Spring.
Question is this- she doesn't seem to be the "I'll list it in the paper and sell it myself for more money" type. How much should I give her for it in trade? Should I tell her we'll dispose of it for free when there's normally a charge? Let's just say she's deciding b/w Envoy and Sovereign for sake of argument (wants a loungered tub but is also one of those types that asks what she needs rather than tells what she wants- very "emotional" buyer if you're a Kool-Aid drinker).
Thoughts?
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Unless you have a way to refurbish and sell as used tub, haul it away for free.
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I'm not a dealer, but when I was looking to purchase a new tub, one dealer told me he would take the tub away for me, and when I mentioned I had a friend who might want it, he offered to deliver it to them . I didn't buy a tub from him, but that offer to move the tub was very tempting for me.
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We offer the following in this situation:
1. Offer a $400 credit towards purchase of a new spa
2. Offer to move the spa to a new owner or dispose of it
If they just want the spa removed, we put it in the alley behind our warehouse. When we come back the next day, it is usually gone.
Terminator
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We give $500 for the trade. Off list price, no negotiating after that. I do my best to convince them to put it in the paper or give it away. BTW - I have hooked up a couple of friends with sellers(cheap S.O.B.'s can't afford my stuff! ;D)
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Question is this- she doesn't seem to be the "I'll list it in the paper and sell it myself for more money" type. How much should I give her for it in trade? Should I tell her we'll dispose of it for free when there's normally a charge? Let's just say she's deciding b/w Envoy and Sovereign for sake of argument (wants a loungered tub but is also one of those types that asks what she needs rather than tells what she wants- very "emotional" buyer if you're a Kool-Aid drinker).
Thoughts?
Here's the problem as I see it. Granted, she wants a new spa so the other one isn't perfect but being that it's only 4 yrs old IF it's operational I'd worry that the old "we'll haul it away for free" may be interpreted as "well take it for free and resell it and pocket extra money". Be careful you don't alienate her with that as many feel their old spa has a market. If it's running she would be able to sell it on Craig's list pretty easily. I'd make an offer like Term mentioned unless she admitts that it totally falling apart. Tough to say without looking at it but they move there pretty easily and quickly.
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We give $500 for the trade. Off list price, no negotiating after that. I do my best to convince them to put it in the paper or give it away. BTW - I have hooked up a couple of friends with sellers(cheap S.O.B.'s can't afford my stuff! ;D)
Why do I think someone with out a hot tub to trade would aslo be able to buy a spa from you at "$500 offlist" ::) ;D ;)
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;)
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We trade in spas a lot...In fact I believe that many times we get a deal the competition wouldn't because we are a bit more upfront and fair with their trade in spa.
I usually explain it to the customer like this;
1. When we pick up a used spa for resale we charge our company $150 per hour for 2 men, spa dolly, truck, insurance (both liability and workman’s comp), all tools and equipment.
2. Before we can resell the spa we fill and test it, replace pump seals and repair anything else that it might need.
3. We replace filters, head rests and typically the cover.
4. We re-stain the skirt and repair what wood we can
5. When the spa is complete we refill it and test it again
6. The final costs we incur are chemical kit, commission to resell, labor for re-deliver to new customer and any warranty we give the spa.
All in all we have between $1000 and $1500 into a used spa before we give anything for trade. If we can make 20% or more above that and still give the customer money we do.
Most customers understand this when we explain it this way and don't expect much for trade in.
If the spa is not worth fixing up and reselling we figure that it costs us about $300 to remove and dispose of that spa with labor and trash fees. If the spa has good components that we can re-use like a new cover, pump or anything else we will credit that off of the $300.
The final thing that we offer the customer is that if they want to sell the spa or give it to someone else we will give them a discount on moving it and won't charge for the pick up time.
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;)
BUt I do understabd that you need to give the customer a sense of value.
Customer walks into spa dealer A "Do you take trade ins?"
"No, but I'l give you a deal on a tub"
As opposed to Spa dealer "B"
"Sure, we take trades...."
Both dealers sell the tub for the same price. but the customer might be more willing to shop Dealer B.
;D ;D
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;)
BUt I do understabd that you need to give the customer a sense of value.
Customer walks into spa dealer A "Do you take trade ins?"
"No, but I'l give you a deal on a tub"
As opposed to Spa dealer "B"
"Sure, we take trades...."
Both dealers sell the tub for the same price. but the customer might be more willing to shop Dealer B.
;D ;D
I personaly like Stewarts options.
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I don't play the games with pricing that a lot of dealers do. When I responded with ;) to your question, you should know that I have $500 to move PERIOD. I explain to the customer that they will likely get more for it out in the marketplace. Like Stuart I will give a discount on a spa move to whomever buys the old spa. Bottom line.......I don't want your spa.
I've found that customers would prefer to use that $500 on steps, covermate, etc. and pocket the $$$ that he gets from the sale of his old tub. Unless you would prefer the dealer gets that $$$ ;D
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I don't play the games with pricing that a lot of dealers do. When I responded with ;) to your question, you should know that I have $500 to move PERIOD. I explain to the customer that they will likely get more for it out in the marketplace. Like Stuart I will give a discount on a spa move to whomever buys the old spa. Bottom line.......I don't want your spa.
I've found that customers would prefer to use that $500 on steps, covermate, etc. and pocket the $$$ that he gets from the sale of his old tub. Unless you would prefer the dealer gets that $$$ ;D
I fully understand and agree with you.
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RE: Offer to move the spa to
a new owner or dispose of it.
Terminator....ya think Costco does this?
LOL
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RE: Offer to move the spa to
a new owner or dispose of it.
Terminator....ya think Costco does this?
LOL
No sir, that's a good observation. Actually, Costco just takes the orders. Local dealers do the rest.
I wonder if anyone's bought one yet?
Terminator
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RE: Offer to move the spa to
a new owner or dispose of it.
Terminator....ya think Costco does this?
LOL
No. But in 5 years, I bet alot of people who shopped costco will be comming into dealerships asking "Do you take trades?"
The dealer that says "sure!" will have a bunch of potential customers.
;)
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Here is a quote from my "Rantings" topic that got me calls, emails and comments from all over the industry both good and bad. It was meant to be somewhat sarcastic in a "Dennis Leary" kind of way. It says just about the same thing I did in the post above.
I’ve actually said this to customers since I wrote it but I smile as I do ;)….They were either looking to trade in a spa or buy one of our used spas and most of them have laughed and done business with us. Many people appreciate in your face blatant honesty in negotiations and it breaks the ice and sets people up for realistic expectations… try it!!
If I may add....
21. When I take a spa in on trade I charge myself $150 per hour for 2 men, spa dolly, truck, equipment, insurance, lost straps, phones, ect...
When we get it back we put in new seals, replace pillows, jets and usually a heater. Add to that 800 gallons of water for first and second leak test plus the cost of power and labor to make sure it works and stain it (and the stain). Next we put in a set of new filters, new cover and chemical kit.
If you think you can get a better deal from your neighbors cousin that is selling his spa because of divorce then go for it!
If you think I should give you $2000 for your trade that will cost me $1500 to get to the point that I'm comfortable with resell how about you see if Home Depot (or Costco) will take it in trade.
;D 8)