Hot Tub Forum

Original => Hot Tub Forum => Topic started by: Steve on April 16, 2007, 05:04:11 pm

Title: How to prevent a "down year" in 2007
Post by: Steve on April 16, 2007, 05:04:11 pm
I've read a number of times how some dealers are experiencing slower sales than in past years. I believe as this industry becomes more competitive, sales are diluted to a degree but there are a number of things we can do as business owners to eliminate this as much as possible. Weather and the economy are things we can't change so there's no need to complain about those. Instead, let's focus on the things that dealers CAN do to improve their overall sales.

In my experience, the really great dealers haven't seen a lull in sales in the past couple of years but I'm talking those dealers that represent the top 5%. Why is that do you think? Because they know how the game is played and they aren't working harder.... they are working smarter!

I'm going to pass along some of my suggestions to all of you and in no way am I suggesting I have all the answers but if only a handful of these make a difference, it has been worth it. That, and you didn't pay anything to receive this info!  ;)

It's understood that upwards of 75% of annual spa sales are gained by sales events. Sit back in your store, advertise like crazy (spray & pray advertising is what I call it) and you’re in for a tough year! What I mean by this is that these MUST be sales driven events such as parking lot sales, off site sales, etc. I DO NOT put home shows in this category as these are RARELY sales driven. They are more targeted at the masses and no doubt you'll get a few sales but don't hang your hat on these! These are great if you are a newer business requiring exposure to the general public. Hand out some brochures and business cards is about it. It wasn’t always this way but the past 5 years has seen a change in home show climate where we’re seeing the cost to be in them is increasing while sales are falling sharply.

A well executed sales event has many facets to it and the better a sales manager or owner understands this, the more successful the event will be! It’s far more than a couple ads in the local paper or radio remote and a few spas kicking around! I have a very advanced checklist and if anyone would like a copy, PM me with your email address and I’ll send a copy to you.

It amazes me how some dealers complain about sales but when asked to provide their list of prospects, they stare blankly at me. If your closing ratio is 100%, then fine but if it’s not, you need to track these leads (prospects) and manage them properly! They are people that YOU KNOW are interested in buying a spa and you don’t have to pay for advertising to bring them in again! On average, it costs about $500 for each person that walks into your store when you look at your overall cost of your annual advertising budget so why wouldn’t you want to manage these properly? When you do a sales event, who are you inviting? Spray and pray advertising again? Hell no! Target your leads! I’m not saying don’t advertise but the reality is that your past prospects if managed properly, will generally make up over 50% of your sales in an event.

GET THEM IN THE DRY SPA! So many sales people miss this critical step. Comfort is a HUGE part of this sale and they need to be exposed to that.

Have a clear presentation and know what you need to cover. It will change slightly with each prospect but the key components MUST be discussed. Therefore, it requires a detailed presentation. Ask your staff for a copy of theirs and see what you get! Everyone should have the same story and if they’re all saying something different, you will lose credibility!

Does your store look like this is a good time to buy or is it just another day? Why should they buy today? If there’s no real value offer with a limited time, you have created no urgency to buy.

Understand your competition without slamming them and more importantly, UNDERSTAND YOUR POSITIONING AGAINST THESE PRODUCTS.  What makes you different and why should they purchase from you?

Have a closing area! A table with at least 3 or 4 chairs that has everything you’ll need to close the sale. Don’t just be an “information giver”. Guide them to this area where you can write up a quote just like you are writing up the sale. When done properly, this one sales technique can dramatically increase your closing ratio. Let me know if you want the full spiel!

Write up EVERY customer that you have done a full presentation to and ask for the sale. There’s some great salespeople out there but very few actually ask for the sale.(This is about 45 minutes long in my seminars so this is really the Cole’s Notes version of all of this)! Recall the aspects of the spa they liked and be sure to show the value.

Again, this information is a really brief overview and there’s so much more within each aspect but I wanted to share some of it with you in an effort to maximize your sales potential. Should any of you want to, I still do offer my services in a sales training capacity and my in-store sales course is a 6-8 hour seminar. The cost is almost free!   ;)

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: SpaNE on April 16, 2007, 08:26:45 pm
Here is a suggestion from a customer's perspective.  

1. Treat your customers with RESPECT.  
2. Be HONEST.
3. LISTEN to what they are telling / asking you.
4. Follow through on COMMITMENTS.
5. Say THANK YOU.
Title: Re: How to prevent a "down year" in 2007
Post by: hottub.pool_boy on April 16, 2007, 11:02:40 pm
Well done Steve. I'm pumped up with just reading your post!
Title: Re: How to prevent a "down year" in 2007
Post by: hottubdan on April 16, 2007, 11:18:31 pm
Quote
Here is a suggestion from a customer's perspective.  

1. Treat your customers with RESPECT.  
2. Be HONEST.
3. LISTEN to what they are telling / asking you.
4. Follow through on COMMITMENTS.
5. Say THANK YOU.

And I say well done Spa NE also.
Title: Re: How to prevent a "down year" in 2007
Post by: hottubdan on April 16, 2007, 11:21:41 pm
Steve,

Your points are well taken.  We are actually up this year by following many of your points.

I question the 75% of sales at events number.

I do not question working your prospects, selling professionally, asking for the sale, treating customers with respect and saying THANK YOU.

I will PM you for the cheklist you generously offered.  We have an outside event in a couple of weeks.

Dan
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 16, 2007, 11:58:53 pm
Quote
Steve,

Your points are well taken.  We are actually up this year by following many of your points.

I question the 75% of sales at events number.

I do not question working your prospects, selling professionally, asking for the sale, treating customers with respect and saying THANK YOU.

I will PM you for the cheklist you generously offered.  We have an outside event in a couple of weeks.

Dan

Great to hear Dan and I wish you all the best with it! Thanks for the PM and I'll send that off to you.

I don't suggest that any one number reflects all dealers worldwide but that has been my personal experience while working for a store that sold close to 400 spas annually. Maybe it was 70% but I'm real close! :) We did 4 major event sales every year and 2 home shows.

I didn't add the obvious thoughts on how to treat the customer as I believe that this should be a given. If people don't practice these beliefs in their stores, why would they be in a service related business?  :-/

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: anne on April 17, 2007, 03:09:48 am
Steve, you are clearly an experienced, knowledgeable and thoughtful salesperson, but from a customers perspective, I personally disagree with a few things that you said. I know that I'm probably a little more sensitive to/irritated by subtle sales techniques than average, so this perspective may not apply to many people.

1. I dont want a detailed "presentation" when I'm first shopping. Certainly I want detailed info once I have narrowed down my options and need to choose a tub, but I HATED walking into spa stores and getting the obviously canned, lengthy "spiel." I just want to look around, ask questions, and have some time ALONE to look around. I very much appreciate someone taking the time to help me, but I would rather be the one to initiate that. Maybe I'm weird.

2. "Limited time" offers just make me think of slimy sales tactics. This may work for some people, but I immediately lose respect for someone who pushes that. I realize that there are different degrees to which this technique can be taken, but I still dont like it.

3. If you guide me to sit down at a table for any kind of offer, or write up or whatever, I'm going to feel pressured and trapped. I agree this is a good idea for once a sale is established, but NOT early on. It reminds me of a car dealership.

I'm just giving my perspective. I'm in no way a professional sales person, and I realize that your guidelines may work well on the majority of the population. I am in the midst right now of planning a kitchen remodel, so I have been doing some medium to big-ticket shopping lately, and so I found your thread both interesting and representative of what I have been experiencing in the appliance/contractor/other professional services world.  Perhaps my recent shopping endeavors have also made me overly picky about sales tactics.

 :)
Title: Re: How to prevent a "down year" in 2007
Post by: caribbeansun on April 17, 2007, 08:15:49 am
Interesting thread,

Unlike Anne I crave information at the beginning and afterwards can narrow my questioning as I become more educated so I don't mind more detail at the beginning.

Limited time offers - do those really still work?  IMO there is no such thing.  Almost without exception you can always get that price again later on.  I understand the need to create a sense of urgency in order to get action but it's the oldest trick in the book.

Closing area - I understand the need for this but like Anne I wouldn't sit down.  When I'm ready to decide then I'm ready, if I get pressed before that I'll likely not return to that store.
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 08:45:47 am
Quote
Steve, you are clearly an experienced, knowledgeable and thoughtful salesperson, but from a customers perspective, I personally disagree with a few things that you said. I know that I'm probably a little more sensitive to/irritated by subtle sales techniques than average, so this perspective may not apply to many people.

1. I dont want a detailed "presentation" when I'm first shopping. Certainly I want detailed info once I have narrowed down my options and need to choose a tub, but I HATED walking into spa stores and getting the obviously canned, lengthy "spiel." I just want to look around, ask questions, and have some time ALONE to look around. I very much appreciate someone taking the time to help me, but I would rather be the one to initiate that. Maybe I'm weird.

2. "Limited time" offers just make me think of slimy sales tactics. This may work for some people, but I immediately lose respect for someone who pushes that. I realize that there are different degrees to which this technique can be taken, but I still dont like it.

3. If you guide me to sit down at a table for any kind of offer, or write up or whatever, I'm going to feel pressured and trapped. I agree this is a good idea for once a sale is established, but NOT early on. It reminds me of a car dealership.

I'm just giving my perspective. I'm in no way a professional sales person, and I realize that your guidelines may work well on the majority of the population. I am in the midst right now of planning a kitchen remodel, so I have been doing some medium to big-ticket shopping lately, and so I found your thread both interesting and representative of what I have been experiencing in the appliance/contractor/other professional services world.  Perhaps my recent shopping endeavors have also made me overly picky about sales tactics.

 :)

Great reply Anne and I appreciate your opinion on these points. I do however, want to point out a few things with regards to your 3 points;

1) Most that looking to spend this sort of money want as much information as possible. People crave information and it's what makes the www. what it is today. I don't suggest that anyone start in talking about all the features and benefits throughout the presentation. Again, I have an hour long seminar just on presentations! In a nutshell, the salesperson should be asking more questions than the consumer. I always teach this in a manner where we are assisting to buy and not selling them something. I can't provide you with what you want unless I fully understand your needs.

Some, if left alone for more than a couple minutes, feel they are being ignored so it's a fine line in sales. I always recommend to acknowledge anyone who comes in but to give them a minute or two unless they seem like they are looking for help. There's no right or wrong here as we're all different.

2) Limited time offers are NOT a TODAY ONLY price. I agree that there needs to be real value and yes, there are better times to purchase. That's why I suggest that dealers have a defined pricing strategy that offers real value at event sales and not perceived value. A dealer must be willing to take less margin during sales and make it a real sale. This is time limited with a specific end date. There's also times where the manufacturer might offer an add-on package or a price break for these items. There is also an end date to that.

I just want to be clear that I'm not talking about knocking a few hundred bucks off the spa for today only as yes, I agree that this is sleazy tactics.

3) With regards to sitting down at the end of the presentation, let me put it to you this way.
"Well Anne, that's everything I can think of unless you have more questions? What I'd like to do is sit down and just go through the package with you and give you an exact price. I want you to be clear on everything that comes with this spa and the EXACT price of it so there's no grey area or misunderstanding. Follow me..."

Most sales people scribble a few numbers down on a napkin and that's their "close". This alternate method is more professional, gives the consumer a detailed document that shows everything that comes with the spa, the real price at the bottom and all costs associated with this purchase. Again, most consumers want this information and they can take it home and discuss it. No pressure to make a buying decision NOW!

What I DON'T teach are closing techniques!!!! If your presentation is done properly, you are closing throughout! This is the right time to ask for the sale but I believe a no is a no. Deal with objections best you can and ask if that makes them more comfortable with this purchase but do not pressure the consumer!!

Hopefully that addresses your concerns Anne?

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: Polar Bear on April 17, 2007, 08:57:13 am
Great info. Thanks Steve.
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 17, 2007, 09:36:00 am
Steve,

Is "Asking for the Sale" as litteral as it sounds? (ie "Do we have a deal?" )   How does a salesperson "ask for the sale" ?
Title: Re: How to prevent a "down year" in 2007
Post by: SpaNE on April 17, 2007, 09:51:01 am
Quote
Steve,

Is "Asking for the Sale" as litteral as it sounds? (ie "Do we have a deal?" )   How does a salesperson "ask for the sale" ?

Steve already explained one example.


"Well Anne, that'a everything I can think of..."
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 17, 2007, 10:02:48 am
I didn't take that as "Asking for the sale" and thus my question.


I can see Anne's points and I too sometimes feel that way. It all depends on where I am  in the buying process. If I am ready to buy, and I can't get a salesman to work with me, I leave. I've done this many times with big ticket items (cars, TV's contractors).  But also, if I am just in "info gathering mode"  and I feel the salesman is really moving me to "close the sale" that day, I'm put off in a big way.    
Title: Re: How to prevent a "down year" in 2007
Post by: SpaNE on April 17, 2007, 10:06:59 am
Quote
I didn't take that as "Asking for the sale" and thus my question.

  

That's the beauty of the technique.
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 17, 2007, 10:17:37 am
Eh.

and I maybe wrong (and that's why I asked Steve for his specific technique). I think many sales folks go through everything, and lead to the "Well that's all I can think of" point,  as you said,  BUT never follow through and  actually "Ask for the sale"  I thnk this is a critical distinction.

I think Steve was  specifically making this distinction, between wrapping up a presentation, and "asking for the sale" and from my limited experenience,  think this is where most salesfolks loose potential sales.  Wrapping it all up and letting the customer leave the store with a written quote is not "Asking for the Sale".    Closing the deal. pushing for it. Asking for it.  If it's not a  clean clear distinct movement for the sale, then hedging around it could cost you the sale.

 (Guys, think of your dating techniqes in high school.  There's a difference between "Well Mary, that's all I can think of" and as you sit there on her front porch,  hopping she understands and givesyou a peck on the cheek, and says "Ill call you tomorrow  versus   actually being invited in and knocking boots with the Home Comming Queen.    However, as anne points out, it's a tough call,  this could get you a slap across the face.  Ahh sales.  ;)
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 10:47:22 am
Quote
Steve,

Is "Asking for the Sale" as litteral as it sounds? (ie "Do we have a deal?" )   How does a salesperson "ask for the sale" ?

This topic has always created an interesting debate between salespeople I've found. In short, yes, it's as literal as it sounds!!! Ask any successful salesperson in any industry and the answer will always be yes, ask for the sale.

Asking for the sale can happen in so many ways and some are more forward than others. It takes a certain amount of skill and understanding your prospect and where they are in their search for a spa to do it respectfully and tactfully.

Some get turned off by being asked but here's my take on it. You are researching and considering buying a spa. My income revolves around the amount of sales I make. You have taken the time to come in, listen to me and exchange information and been a part of building a brief relationship in trust for an item I have and that you want. I'm a total fool and in the wrong profession if I don't at least ask you for your business. You want to buy and I want to sell...it's a natural progression.

I've never taught "canned" lines for closing a sale or suggested a grouped set of words. It can be as simple as, "So, what do you think"? That line for me has been very successful but I also had a very good presentation that allowed me to not work as hard in the "close".

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: hotubinn on April 17, 2007, 10:53:08 am
If you don't "close", you don't eat!
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 10:53:43 am
Quote

Steve already explained one example.


"Well Anne, that'a everything I can think of..."

I would consider that the "journey to the close" and not so much a close in itself.
It's really all a part of getting your customer to sit down with you, understand the spa's features, the features they liked, the value, the ease of making the purchase and how you can help them make a good investment in themselves while gaining their trust.
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 10:55:44 am
Quote
If you don't "close", you don't eat!

Welcome to sales 101!!  ;D You are correct my friend!
Title: Re: How to prevent a "down year" in 2007
Post by: hottubdan on April 17, 2007, 10:55:59 am
Of course you have to ask for the sale.  That doesn't mean some sleazy closing technique.  I don't know what the stats are, but it is well known that a large percentage of sales presentations end without the salesperson asking for the sale.

To Anne's points...yes, there are different stages of shopping.  I, too, gather information.  I, too, want to be left alone part of the time.  However, the customer needs to be treated with respect and, even if the customer is information gathering, the salesperson needs to do what he can to move the sale along.  Sometimes people come in saying they are just looking, just gathering information, just thinking...and they leave with a new spa.

You never know. 8-)
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 11:03:23 am
Quote
Of course you have to ask for the sale.  That doesn't mean some sleazy closing technique.  I don't know what the stats are, but it is well known that a large percentage of sales presentations end without the salesperson asking for the sale.

To Anne's points...yes, there are different stages of shopping.  I, too, gather information.  I, too, want to be left alone part of the time.  However, the customer needs to be treated with respect and, even if the customer is information gathering, the salesperson needs to do what he can to move the sale along.  Sometimes people come in saying they are just looking, just gathering information, just thinking...and they leave with a new spa.

You never know. 8-)

Excellent points there! That has happened to ALL of us in sales and can happen often.

I know many good salespeople but they don't ask for the sale in most cases. These same people could be GREAT salespeople if they did.

How many of you approached someone and they told you they were "just looking"?. An hour later they have purchased a spa and are thrilled and can't wait to get it in their back yard! You have to be able to read people and that's why we continue to learn as salespeople and NEVER stop learning. It's a skill that takes a great many years to perfect.
Title: Re: How to prevent a "down year" in 2007
Post by: golferm on April 17, 2007, 11:23:59 am
I think one major point that needs to be added is: mirroring.  I've been in professional sales for almost 15 years, (retail and business to business) and you have to learn that the hard way, that if you don't mirror the consumer, you may not make the sale.

A person like Anne needs her "space", whereas I love being "sold" and given tons of information.  If you treat each client  the same, you will not get the results you're looking for.

IMHO....

Mark
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 11:33:26 am
OK, so part 2.

If we look back, we understand that it can take multiple visits for a consumer to purchase a large ticket item like a spa. Understanding that, why wouldn't we want to gain and manage our leads properly? What are you doing to keep your company top of mind to the consumer?

What are you offering if the prospect doesn't purchase while in the store? You can gain the lead ( which very few companies are doing) and stay on top of it but what else? I suggest to try and book an "in-home" consultation. This has many benefits. It's allows them the opportunity to have a professional go there, inspect the possible areas the prospect is considering putting the spa while addressing things like what side the cover will come off, directions of the steps, direction of the most popular seats in the spa they are considering relating to where they want to look out to in their yard.

You are also now in THEIR comfort zone. I had about an 85% closing ratio with "in-homes" due to the fact that people are more at ease at their dining room table than in the store. Take advantage of this!

We all know the importance of wet testing and it's critical to offer the ability to due so. After hours shows the consumer that are willing to really look after them and make sure their comfort is primary. If you have a wet test room that is private, all the better!

Here's something very few do. What if you offered your customer a free 30 day guarantee? If for any reason, they are unhappy with the purchase within those first 30 days, they can either exchange the spa for a different model or get their money back. Watch their faces when you tell them this! People love it and the reality is that by offering this, you will sell more spas! So what if you take back 2 or 3 a year? You will sell more spas and have far more credibility offering it than if you didn't. At worse, you can resell this still as a new spa or with a slight discount. We charged for delivery each way still so you're not loosing money by offering this.

In 10 years in retail, I had 2 customers take advantage of this. 1 didn't like the color and she felt horrible but we reordered her a spa and exchanged them when the new one came in. She turned out to be our best "non payrole" staff member and sent many people in as a referral that bought from me due to this! Once you get over the "fear" that every second customer is going to return the spa, you will find just how awesome this is! Consider the cost of delivery each way and the cost of the electrical. No one is going to use this a free weekend spa rental.

After the purchase, book a running test at their home. Show them how to use it and get them comfortable with their watercare. The easier they find this, the more they will enjoy it and the greater the chance of referrals. Get them to bring a water sample back to your store within the first week of using it. This is done for 2 reasons. You want them to get use to coming to your store for watercare and secondly, you want them to have GREAT water. Offer them a free gift for doing so as well as a "preffered customer" discount to keep them as your customer. There's nothing worse than building that relationship and then have them purchase their watercare at the local box store. Show the value of dealing with the professionals and don't lose that huge revenue!

Ask them for 3 referrals. After over 20 years in business, we did almost 50% of our business on referrals. It's a market very few capitalize on and it's usually an easy sale.

Gotta go to my real job now...  ;) Oh, and it's my Birthday today so be nice to me! The BIG 42!!!   One foot in the grave and the other on a banana peel.... :-[  ;)

Steve

Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 11:35:41 am
Quote
I think one major point that needs to be added is: mirroring.  I've been in professional sales for almost 15 years, (retail and business to business) and you have to learn that the hard way, that if you don't mirror the consumer, you may not make the sale.

A person like Anne needs her "space", whereas I love being "sold" and given tons of information.  If you treat each client  the same, you will not get the results you're looking for.

IMHO....

Mark

Good point Mark. That's part of the skill I was referring to in an earlier post. It's all about understanding your prospect and how they buy. No 2 people will purchase the same way and we need to react to each in a respectful manner that suits their personality. Good point!

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: knowsabit on April 17, 2007, 11:41:17 am
Salespeople need to take these comments by the customers very seriously.  Not everyone is the same person, i.e. not everyone wants a salesperson to regurgitate info on them.  Most of these "presentations" that we're taught are exactly the same sales tactics that are taught everywhere else just applied to that spa company's information that their marketing department thought up.

I have found great sucess in NOT using the presentations that my manufacturers devised.  I still have all of the info but it's only offered if the topic arises.  Customers seem to appreciate not having Chachi Cheeseball "wiz bang" them to death.

The sales game has changed; its about building trust and friendships.  Consumers are better informed and well aware of the overused sales tactics of yesterday.

http://www.magneticpersuasion.com/ Check this out.
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 17, 2007, 11:46:23 am
Thanks Steve. I'm enjoying this.  Sales has always fasincated me, as I've met some folks who have seen some outrageous success, and others who have done everyhting "right" and had the best product, but still not make a go ot it.    Also, to a certain extent, we are all salesmen.

Anyhow to play devil's advocate...I wonder,  you say you get 85% closure when you do an "at house" consulttion. I wonder if this is so much a function that they are in thier comfort zone, or the simple fact that bringing a saleman into thier home signals that they are further along the sales path than "just looking"?


I think it's a great tool, as if I am serious about buying, but not 100% sure on the purchase, if i give up my free time for you to come out,  I will have put some serious thought into the purchase and before you come over, talk with my spouse about "are we really going to buy from this person and review pricing and deals.  Or just use this expereince to pick his brain?" (I'm doing this with my decks. I've got one very exspensive architect who I made contact with at a home show INSIST he come to the house.  I know I can't afford him, but if he wants to spend the time desinging me a deck, while I pick his brian for details and what he suggests. then' that's fine.  ;)


Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 11:48:01 am
I don't believe anyone has suggested to use the same presentation in a cookie cutter format to all prospects. Your concern has been discussed previously and I thought we all got that.

There's a million different courses on sales and some are better than others.

My personal beliefs are that I like staying industry specific when it comes to sales training for MANY reasons. I don't have time to list all of them but like consumers, even us salespeople like different things!  ;)

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 11:52:48 am
Quote
Thanks Steve. I'm enjoying this.  Sales has always fasincated me, as I've met some folks who have seen some outrageous success, and others who have done everyhting "right" and had the best product, but still not make a go ot it.    Also, to a certain extent, we are all salesmen.

Anyhow to play devil's advocate...I wonder,  you say you get 85% closure when you do an "at house" consulttion. I wonder if this is so much a function that they are in thier comfort zone, or the simple fact that bringing a saleman into thier home signals that they are further along the sales path than "just looking"?


I think it's a great tool, as if I am serious about buying, but not 100% sure on the purchase, if i give up my free time for you to come out, I'm somewhat serious, and I will have put some serious thought into the purchase and before you come over, talk with my spouse about "are we really going to buy from this person? Or just use this expereince to pick his brian?" (I'm doing this with my decks. I've got one very exspensive architect who I made contact with at a home show INSIST he come to the house.  I know I can't afford him, but if he wants to spend the time desinging me a deck, while I pick his brian for details and what he suggests. then' that's fine.  ;)

 

It's certainly a bit of both. I'm sure that 15% just wanted my knowledge while the rest were at the next level of the purchase and ready to buy to some degree! It's why this is such an important step. If you can book an in-home, you know where your prospect is in the buying chain. Without it, you have no clue but your competition might! ;)
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 17, 2007, 11:59:05 am
Exactly.

For a second, I thought you were simply saying that due to folks being in their comfort zone,you can close 85% of the sales.  

What you are saying is:
If they are ready to have a salesperson come to thier home, they are further along the sales cycle than they may admit (or be aware of) and if you don't get yourself included in home consulation, chances are, you'll lose to another dealer who is.

The moral is not that at home consutlations are good because the customer is vunerable and you can take advantage of that,   but rather it's a signal they want a second date on their home turf and sales folks who don't look for this, or belive it's not worth thier time to trudge out thier are missing/oblivious to a GOLDEN invitation.

Not everyone needs/want  a home consultation,  but those that do, 85% of them will buy from the dealer that provides it. And you're not going to be invited unless you offer to go.  :)  Plus offering it, and they say yea maybe, gives you a wonderful topic for a call back in a week or so.  ;)  
Title: Re: How to prevent a "down year" in 2007
Post by: Wisoki on April 17, 2007, 02:11:52 pm
Every single customer that walks into my store "shopping" for a hot tub is EXPECTED to leave with a contract. They are here to buy, I am there to sell. Steve is quite generous with his "sales training" info. I on the other hand am not so generous. 15+ succesfull years in this industry and my knowledge and info is reserved for people that will affect my bottom line...The difference between a peck on the cheek and boot knockin' fun! If a dealer doesn't have enough foresitght to get out of his own head and show room, what makes you think they have enough ambition to on the internet and happen to read suggestions that my help their business grow. Thankfully most don't and the sooner this tough competitive market weeds out the bull $h!T the better. I'm relentless yet tired of talking about this brand and that brand as compared to my brand, knowing they don't even come close to being in the same quality catagory.
Title: Re: How to prevent a "down year" in 2007
Post by: Wisoki on April 17, 2007, 02:25:19 pm
I hope that wink means what I think it means. You go ahead and wait for a week before giving a call back. I've already called them that afternoon and the next day. You'll be left wondering what happened to your be back.

Quote
Not everyone needs/want  a home consultation,  but those that do, 85% of them will buy from the dealer that provides it. And you're not going to be invited unless you offer to go.  :)  Plus offering it, and they say yea maybe, gives you a wonderful topic for a call back in a week or so.  ;)  
 
Title: Re: How to prevent a "down year" in 2007
Post by: knowsabit on April 17, 2007, 03:16:57 pm
LOL.  You never lose a sale because someone feels uncomfortable with your "shock and awe" techniques?

After making numerous phone calls to their house starting ten minutes after they've left the store if they don't surrender and buy I will usually kidnap and hold for ransom one of their family members.  Usually a child or someone elderly.
Title: Re: How to prevent a "down year" in 2007
Post by: anne on April 17, 2007, 04:48:25 pm
Your clarifications make a ton of sense, Steve. And I agree with the "mirroring" idea. It is tough to know how different people want to be treated, so being sensitive to body language, and having good judgement probably goes a long way. I appreciate it when some one asks me right away if I have any questions, or need any help- if i do; great. If not, I just get irritable wieh they wont go away. Or at a big store, if then some one new comes up and asks the same thing!!!!

Great thread.
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 06:03:12 pm
Quote
Every single customer that walks into my store "shopping" for a hot tub is EXPECTED to leave with a contract. They are here to buy, I am there to sell. Steve is quite generous with his "sales training" info. I on the other hand am not so generous. 15+ succesfull years in this industry and my knowledge and info is reserved for people that will affect my bottom line...The difference between a peck on the cheek and boot knockin' fun! If a dealer doesn't have enough foresitght to get out of his own head and show room, what makes you think they have enough ambition to on the internet and happen to read suggestions that my help their business grow. Thankfully most don't and the sooner this tough competitive market weeds out the bull $h!T the better. I'm relentless yet tired of talking about this brand and that brand as compared to my brand, knowing they don't even come close to being in the same quality catagory.

The reason I'm doing this Frank is 2 fold. Being that I'm not in the spa biz anymore, I can share this information without feeling that I'm giving away advice normally privy to my dealers only and not their competition. I've always believed that they deserved my attention first as they were the ones feeding my family.

Secondly, I love the spa biz and even though this may seem like a grain of sand in the big scheme of things, anything I can do to help make this a stronger year for some is worth it. If someone reading this takes a portion of it or all of it and executes these ideas that they haven't been doing to date, they are going to sell more spas and everyone wins. We need to share our successes and our mistakes and THAT is what this forum is all about IMO.

This topic could be endless and it would be interesting to see what dealers feel are their weaknesses and collectively coming up with solutions. I think would powerful for the industry as a whole and at least help our very small group of visitors to this forum. Kinda like free love but different! ;D

Steve


Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 17, 2007, 06:09:50 pm
Quote
Your clarifications make a ton of sense, Steve. And I agree with the "mirroring" idea. It is tough to know how different people want to be treated, so being sensitive to body language, and having good judgement probably goes a long way. I appreciate it when some one asks me right away if I have any questions, or need any help- if i do; great. If not, I just get irritable wieh they wont go away. Or at a big store, if then some one new comes up and asks the same thing!!!!

Great thread.


Perfect.... I'm glad that explaination helped. I feel the same and my wife HATES shopping with me for my toys. I have a very high level of expectations for salespeople selling big ticket items and if I don't buy due to their selling style, I tell them why very clearly. In most instances, they didn't adjust their selling style to fit my buying style and instead, they got lazy and tried to close me before doing the work required.

Sales can be difficult but it can be very rewarding too! Personally, I'd love to teach it for a living but there's just soooooo many doing that. :'(
Title: Re: How to prevent a "down year" in 2007
Post by: thearm on April 17, 2007, 10:25:27 pm
Quote
Every single customer that walks into my store "shopping" for a hot tub is EXPECTED to leave with a contract. They are here to buy, I am there to sell. Steve is quite generous with his "sales training" info. I on the other hand am not so generous. 15+ succesfull years in this industry and my knowledge and info is reserved for people that will affect my bottom line...The difference between a peck on the cheek and boot knockin' fun! If a dealer doesn't have enough foresitght to get out of his own head and show room, what makes you think they have enough ambition to on the internet and happen to read suggestions that my help their business grow. Thankfully most don't and the sooner this tough competitive market weeds out the bull $h!T the better. I'm relentless yet tired of talking about this brand and that brand as compared to my brand, knowing they don't even come close to being in the same quality catagory.

Wisoki,
I find it amusing you believe you have a corner on what or how it takes to sell. Much of what Steve has offered is very good selling techniques for any sales people. I have found that after just shy of 30 yrs in the selling game about the time I think I have it figured out, I learn something else. By sharing idea's with other salespeople I am in a state of constant growth by trying new things. I am not afraid of my competition stealing my sales tactics. I believe my product is superior and I am as good or better than the competitor. Someone said it earlier best, treat everyone the same and you are doomed to being a so-so salesperson IMO.
 
Title: Re: How to prevent a "down year" in 2007
Post by: Wisoki on April 17, 2007, 11:46:03 pm
"What are you going to do today Wisoki?"

"The same thing I do every day arm.....try to TAKE OVER THE WORLD!"

Quote
Wisoki,
I find it amusing you believe you have a corner on what or how it takes to sell.
 
Title: Re: How to prevent a "down year" in 2007
Post by: hotubinn on April 18, 2007, 12:28:41 am
Quote

 Kinda like free love but different! ;D

Steve



A nice kinda of free love, FREE of that annoying burning sensation! ;D
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 18, 2007, 09:06:54 am
Quote

 can share this information without feeling that I'm giving away advice normally privy to my dealers only and not their competition. I've always believed that they deserved my attention first as they were the ones feeding my family.




Yea!   What's the typical Markup on hot tubs?  What's the biggest cash cow? N2 is all profit, that's why is pushed .  isn't it? (Come on, you can tell me, I won't tell anyone....).   That water testing thingy you guys have in the backroom, that's all just a bunch of lights and stuff and all the machine really does is see what  you have in your chemical inventory that isn't moving and print's it out suggesting the customer buy it.   I'm right, aren't I?


I knew it.  ;)
Title: Re: How to prevent a "down year" in 2007
Post by: hottbpete on April 18, 2007, 09:44:26 am

2. "Limited time" offers just make me think of slimy sales tactics. This may work for some people, but I immediately lose respect for someone who pushes that. I realize that there are different degrees to which this technique can be taken, but I still dont like it.

3. If you guide me to sit down at a table for any kind of offer, or write up or whatever, I'm going to feel pressured and trapped. I agree this is a good idea for once a sale is established, but NOT early on. It reminds me of a car dealership.

 

 :)
[/quote]

Being a sales guy for a few decades....and in marketing for the same, I always find it funny to hear from "non" sales.  There is always a tone of disgust.

Promotional pricing works, period.  Most people need to have a reason to make the decision, especially with non essential items.  In fact the same people that "do not like the sales tactics" I have found are the same ones who like a "deal"

Since I am an owner and bought one last year....this is what I liked:

An educated sales person.  Surprisingly, I found that at most dealers.  Unlike many "retail" places that their clerks have no idea what they are selling, I found the 6 dealers I visited knowledgeable about there products and their unique capabilities versus the competition.

A Good deal....everybody wants one .....period.

Flexibility for wet testing.  The dealer needs to remember that after the house and a car...a hot tub can be the next largest expenditure a family makes.

Good Selling.....

And remember....nothing happens until someone sells something! ;)
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 18, 2007, 10:43:36 am
Quote

 :)Being a sales guy for a few decades....and in marketing for the same, I always find it funny to hear from "non" sales.  There is always a tone of disgust.

Promotional pricing works, period.  Most people need to have a reason to make the decision, especially with non essential items.  In fact the same people that "do not like the sales tactics" I have found are the same ones who like a "deal"


I think what most are talking about here when it comes to the sleazy sale is the "today only" pricing that some weaker dealers use. It's lazy and most often designed to be a high pressure close because they have no other resources to draw from.

Here's what I do when it comes to the end of sale pricing... For those coming in on the last day of the sale, I would offer them the ability to hold the promotional pricing with a minimum $500 deposit. We would hold that for 30 days and it is totally refundable if they choose not to take advanatge of it. It's no pressure and allows them to complete their research and still come back at their leisure.

The fact remains that all sales have an end date. As I mentioned before, it's all about the pricing strategy and making these event sales work in a win/win scenario. The question for the consumer then becomes, is it a value priced sale and do I want to take advantage of this promotional offer now?

The worse thing you can do as a retailer is have a SALE sign out front ALL THE TIME!!

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: East_TX_Spa on April 18, 2007, 10:46:54 am
Quote

The worse thing you can do as a retailer is have a SALE sign out front ALL THE TIME!!

Steve

 ;D The dealer down the road from me has had their "Spa Sale" sign up for 3 years and counting! ;D

Terminator
Title: Re: How to prevent a "down year" in 2007
Post by: Zep on April 18, 2007, 11:26:59 am
This is just a minor detail....but as a consumer I always
feel uncomfortable when I walk into a sales type setting
and several salesmen are standing around.

Then when one starts to make contact with me all the
other guys stand around and kind of watch and listen.

Of course this automatically seems to increase the feeling
of pressure and  "all eyes are watching".
Title: Re: How to prevent a "down year" in 2007
Post by: East_TX_Spa on April 18, 2007, 12:18:35 pm
Quote
This is just a minor detail....but as a consumer I always
feel uncomfortable when I walk into a sales type setting
and several salesmen are standing around.

Yep, I feel the same way Zep.  It's like they're a bunch of goatsmellin' buzzards just hoverin' around giving you the beady eye (which I abhor)!

When someone walks into my store, I put my pants on and greet them by telling them to make themselves at home (acknowledge their presence whilst giving them space).  I then fiddlefart around a bit to let them get comfortable and then I approach them by talking about things completely unrelated to spas (their car, religion, politics, their wife's sexy walk).

If they haven't turned around and left at this point, I start telling them about the shortcomings of my competitors, how the owner of one store in particular is the biggest crook in Longview, the owner of another store lives in a motor home with his secretary while his wife remains in ignorant bliss at home 90 miles away, how the other competitor got ran out of town and changed their name, etc.

If that doesn't convince them to buy, I start hammering the lack of quality of the competing products, show them my filtration diagram, show them pictures of old broken down offbrand spas we've hauled off, etc.

At this point, they're feeling kind of low, so I give them beer to perk them up.  After 3 or 4 beers, they're feeling no pain and are feeling really confident about HotSprings' 6 Consumer's Digest awards and bottom drain...that's when I tell them "the good news".  I pretend to call my boss, who happens to have a demo model available if they act fast by putting down a deposit.  The credit card comes out, I tack on a "processing fee" that I tell them the government entity that oversees the spa industry requires, and write them up.

They are excited, I'm excited, I tell them to not let ANYONE know about the special deal they got as we can't do it for anyone else but them.  They leave happy, I light up a cigar, take my pants off, and wait for the next folks to walk through the door.

Works about 65% of the time.  At the prices we charge, that's good enough!

Terminator
Title: Re: How to prevent a "down year" in 2007
Post by: wmccall on April 19, 2007, 07:47:32 am
HAve any of you ever gone out of your way to be nice and attentive to a person you know wouldn't be buying  in hope that it could turn into a sale a year or two in the future, or is that too far to think ahead?  I remember we considered a hot tub several time at least 3 years before we finally made the purchase.  The interest had been there at least 5-7 years prior to that.
Title: Re: How to prevent a "down year" in 2007
Post by: Zep on April 19, 2007, 08:42:09 am
re: Unlike many "retail" places that their clerks have no idea what they are selling,

I have a friend that has been in the AC/HVAC supply business for many years
and he says people would be shocked at how many AC repair people don't
really know whats wrong alot of times and just start replacing stuff in the hopes
that what they replace will fix the problem.
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 19, 2007, 09:12:34 am
Quote
re: Unlike many "retail" places that their clerks have no idea what they are selling,

I have a friend that has been in the AC/HVAC supply business for many years
and he says people would be shocked at how many AC repair people don't
really know whats wrong alot of times and just start replacing stuff in the hopes
that what they replace will fix the problem.

In the electronis and computer industry, they call that "board swapping".  ;)
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 19, 2007, 09:36:55 am
Quote
HAve any of you ever gone out of your way to be nice and attentive to a person you know wouldn't be buying  in hope that it could turn into a sale a year or two in the future, or is that too far to think ahead?  I remember we considered a hot tub several time at least 3 years before we finally made the purchase.  The interest had been there at least 5-7 years prior to that.

Here's what happens to eliminate confusion. All salespeople should have an arsenal of questions that they are prepared to ask in their presentation. This is done to determine the correct spa, their level of preparedness, urgency (or not), etc. If I start off early in my presentation and determine that you aren't going to purchase this year (which I will specifically ask), I will go through everything you want me to in a somewhat abbreviated fashion but give you ALL the information you require to make a buying decision.

I will manage you properly as a lead and keep my product top of mind to you while inviting you to pre-sales and first buying opportunities. I will gain an understanding at each communication of your readiness to buy and respect your timeline.

By the time you are ready to make the purchase, we would have had a number of communications and hopefully I was able to get you in the store the few times to help build that relationship and level of trust.

It can easily take 6 months to 6 years for some people to make that buying decision on a spa. It's not up to the consumer to let the salespeople know, it's up to the salesperson to ask the right questions and alter their initial presentation to plant that first seed and watch it grow over time. In a store full of people, this can't take 2 hours to do.

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: caribbeansun on April 20, 2007, 07:45:41 am
As a consumer this has been an interesting thread to read.

I've looked at 5 dealers in the last couple of weeks and I can say that none of them had a clue how to sell.  One came close but has dropped the ball.  For those that might be interested here's what I encountered:

- Artic Spa - best of the bunch but still didn't have a clue.  Provided lots on good information, did an admirable job of trying to differentiate their product from the rest, had plenty of expensive marketing collateral which explains at least part of why their tubs are so expensive.  Did get me to sit in the tub dry, didn't offer a wet test, got my name, number and email address but hasn't followed up (this was 3-4 weeks ago), didn't ask for the sale, made some bizarre comment about "here's the price list but you can ignore it because our real prices are much less" which left me wondering what the hell that was all about.

- Jacuzzi - sales person didn't make much of an attempt to inform us, we had to ask numerous leading questions to get them to tell us anything about the product, didn't differentiate between product lines, didn't seem to be knowledgable about competitors products, after much proding did give us a bit around the jets used by Jacuzzi, didn't get any contact information at all, gave us the price for 2 tubs (yes, a total of 2 and not even the ones we had looked at), contradicted themselves about the salt water option that's available, did mention wet testing, didn't get us into a tub nor did they offer, didn't ask for the sale.

- Artesian - seemed to know their product pretty well and did differentiate from competitors products, had marketing collateral available for all product lines, didn't ask for contact information, did offer a wet test after hours and privately which differentiated them from all the others immediately as my wife would be horrified by the idea of being in her swimwear in the middle of an open store, didn't ask for the sale, did offer to come to the house but rather half-heartedly.

- Sundance - haven't been able to get into the store yet as they are closed on Sundays and Mondays, not open in the evenings and I don't remember when they are open on Saturdays - lots of "by appointment only" stuff on their sign.  Dealer is a member of this board by the way.  Frankly, if they can't be open other than when I'm at work what's the point?

- Vita - horrible!  One salesperson in the entire store, no eye contact, stood talking to buddies at the register the whole time (these were not customers) - basically we were outta there in less than 10 minutes.
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 20, 2007, 08:49:08 am
Quote
As a consumer this has been an interesting thread to read.

- Sundance - haven't been able to get into the store yet as they are closed on Sundays and Mondays, not open in the evenings and I don't remember when they are open on Saturdays - lots of "by appointment only" stuff on their sign.  Dealer is a member of this board by the way.  Frankly, if they can't be open other than when I'm at work what's the point?


That's a HUGE pet peeve of mine and would cross them off my list imediently.  >:(

Great post.  I'm curious, did you get a chance to go into a hotsprings dealership? I'm not  nesecarrly interested in talking about the tubs in this thread,  but, it's been my expereince that that sales folks there are seem to be better trained, and present themselves well.  I am curious if this is other people expereince as well?
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 20, 2007, 09:18:14 am
Quote
As a consumer this has been an interesting thread to read.

I've looked at 5 dealers in the last couple of weeks and I can say that none of them had a clue how to sell.  

Great feedback! It's interesting to note the lack of gaining prospects information for a database and follow up. It shows the importance of this one key aspect of sales and that chances are high that the competition down the street doesn't do it!

If someone asked me, what is the ONE key componant to increasing sales, I would respond with gaining and managing leads properly. It's amazing that very few do it... :o

Drewstar: Business owners are individuals and salespeople come in all shapes and sizes. No one manufacturer cookie cuts great salespeople. I've seen great salespeople in no-name stores and idiots in huge spa stores. Stereotyping any one brand as having better trained people would not be accurate in any way.

A quick example is that Beachcomber offered some of the best training available including Anthony Robbins and many other world class speakers. Would it be fair to suggest that all Beachcomber salespeople are advanced over any other group? It all depends on the individual and what they got out of it and how they transfer that information.

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 20, 2007, 09:27:26 am
Steve,

I wasn't trying to set steroe types.  But was noting my experinces and wondering if other's had similliar expereinces. Of course there are alway exceptions to the rule.

To go a bit further, HS is the industry leader. Why? Are thier tubs that Superior? Thier production abbility and structure?  Is thier marketing/adevertsing  that much better?  Market penetration? Sales training? Market inertia? (Success breeds success?). All of the above? None of the above? A mix?  

Since in this thread we are specifically discussing managing sales, I was curious if the industry leader, who by my experince have found them to be overall pretty good if others had the same experience and if so, what are they doing differently?  OR is my exerpeince not representative of the market as a whole?

Or, do you feel the Sales training and support across industry leaders is pretty much the same?
Title: Re: How to prevent a "down year" in 2007
Post by: East_TX_Spa on April 20, 2007, 10:01:21 am
I will tell you this drewstar, I cannot possibly imagine any other company being more committed to customer service training than HotSpring.  You start with Beginners Level, move to Advanced, and then by invitation only to Top Gun.  After Top Gun, a select few are invited to attend the Next Level.  It is incredible the amount of support you are given and it is all done from a standpoint of selling the positive, never as a negative.  I've said it many times before...I have never heard another company's name mentioned at any of the sales training I've attended except in passing.

Now, several HotSpring dealers sell lesser brands of spa as a secondary line.  In talking to some of these folks, I've asked them about the sales and customer service training they've received from the other manufacturers.  They inevitably laugh and say "What training?!  All they do is talk about how to sell against HotSpring and Sundance.  That's it!"  Most of them say the other brands don't even have formalized events, the RSM just comes and gives them their script.

I've been to 5 training seminars in going on 8 years.  At Top Gun, we worked from 7 am until 10 pm 3 straight days!  On the 4th day, they took us all to the USS Midway aircraft carrier, to Kansas City Barbecue, and then out for a great evening of food, drinks, and dancing at some Mexican food restaurant.  It was unbelievable the confidence a person gains by being given the opportunity to work with their peers in a setting that encourages the "students" to mold and modify the "curriculum".

That (and 100% No-bypass filtration) is what makes HotSpring Spas the world's #1 selling brand of portable spas and the industry leader for over 20 years! :)

Terminator  
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 20, 2007, 10:06:08 am
Term,

I asked my question, because I know you had mentioned sales training many times,  and I haven't heard it mentioned that much from other dealers. Now I agree that there are good salesfolks and bad salesfolks in every brand, but I do think proper training can make a difference between being mediocer and being great.  

I also remember a job posting here from another manufactuer/dealer taken from a trade magazine, where the recruiter specifically mentioned "Hot springs Training prefered".  That really stuck with me.  

Now, If you could just get out of the habit of roaming around the store with your pants off, your plan for world domination might come to fruition.  ;)
Title: Re: How to prevent a "down year" in 2007
Post by: East_TX_Spa on April 20, 2007, 10:09:01 am
I don't want to dominate the world, my friend (that's Wisoki's plan)...I just want to dominate the spa industry in East Texas, and that's something I CAN do without my pants...or shoes....or fear of global warming.

Term
Title: Re: How to prevent a "down year" in 2007
Post by: hottbpete on April 20, 2007, 10:15:43 am
I would also suggest to the sales people....

The first time someone comes in it is imerative to seperate your product from the others.  If you cannot do that, then there is no driving force to get the customer to come back to your store.  This is a 5-12k decsion....most people are going to look around.  If you are no different from the rest.....then it alweays comes down to price.
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 20, 2007, 10:35:23 am
Quote
I would also suggest to the sales people....

The first time someone comes in it is imerative to seperate your product from the others.  If you cannot do that, then there is no driving force to get the customer to come back to your store.  This is a 5-12k decsion....most people are going to look around.  If you are no different from the rest.....then it alweays comes down to price.

A USP (unique selling position) is critical as it's what seperates one brand from the next.
A USP is either within the product itself, marketing or in price. Price is the most difficult as you need to show greater value while maintaining quality and be priced lower than all competitors in your region.

Why does Arctic promote thermal lock, Beachcomber promote Protec, Hotspring promote 100% no bypass and so on? Because those are USP's and it allows them to be different from others. Not better than others nessecarily.... just different! The consumer needs to be aware of that!

Drewstar.... stop feeding the monkeys! ;)
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 20, 2007, 10:39:07 am
I was hoping to get insight, not turn this into a monkey spanking-feeding thread. Sorry.  ;)

You never did anseer me steve, as a former salesman, whats the deal with N2? Do yuo promote it because it works, or more so that there is a %100 mark up?
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 20, 2007, 10:41:01 am
Quote
I was hoping to get insight, not turn this into a monkey spanking-feeding thread. Sorry.  ;)

You never did anseer me steve, as a former salesman, whats the deal with N2? Do yuo promote it because it works, or more so that there is a %100 mark up?

Sorry, never sold it.

Anything I ever sold was for long term benefit and repeat business. Not to make a quick buck. If it didn't benefit the consumer, there was no benefit to me long term...
Title: Re: How to prevent a "down year" in 2007
Post by: caribbeansun on April 20, 2007, 10:50:11 am
There aren't any Hotspring dealers in my area so didn't get an opportunity to talk with them.

Hmmm - seems there is one afterall with the help of the dealer locator on the HS web site.  I'm going to go there this afternoon and see what they've got.

Quote

That's a HUGE pet peeve of mine and would cross them off my list imediently.  >:(

Great post.  I'm curious, did you get a chance to go into a hotsprings dealership? I'm not  nesecarrly interested in talking about the tubs in this thread,  but, it's been my expereince that that sales folks there are seem to be better trained, and present themselves well.  I am curious if this is other people expereince as well?
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 20, 2007, 10:51:38 am
Quote


Yea!   What's the typical Markup on hot tubs?  What's the biggest cash cow? N2 is all profit, that's why is pushed .  isn't it? (Come on, you can tell me, I won't tell anyone....).   That water testing thingy you guys have in the backroom, that's all just a bunch of lights and stuff and all the machine really does is see what  you have in your chemical inventory that isn't moving and print's it out suggesting the customer buy it.   I'm right, aren't I?


I knew it.  ;)

I thought you were just kidding around but I'll do my best.

Typical markup depends on a number of factors but good retailers will achieve a 35% profit margin or more. It's not huge (or as much as some may think) once the factors of overhead are calculated. As I've said before, dealers really aren't making money until they're selling more than 75-100 units annually.

Biggest cash cow IMO is ozone (and watercare products in general).

Water testing equipment is only as good as the operator... ;)
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 20, 2007, 11:33:46 am
Thanks Steve.

I was just thinking about this and was wondering if 03 was a good cash cow. After all, once it's sold and installed the 03 unit is pretty much self sufficent, as opposed to N2 and other chemicals which  keeps customers comming back and is a good revenue stream.

Yup, I figured the mark up would be that much to cover Overhead and operating costs
Title: Re: How to prevent a "down year" in 2007
Post by: caribbeansun on April 20, 2007, 03:21:56 pm
Okay, I went by the Hot Springs dealer and all I can say is that's 20 minutes of my life I'll never get back.

What an utter waste of time, didn't provide ANY information at all other than to say repeatedly "you have to try them to see the difference" - no kidding.  He asked me a question and then as I was anwering him he saw a Porsche through the window and walked away from me with some comment about how I'd like to have that (reminded me of Homer Simpson - "ohhhhh shinnyyyy").  My answer was that I really don't care about what people drive.  I asked what the key differences were in the lines he carried - answer "the jets" and that was it.  I mean come on people!  It appeared that I was more of an inconvience than anything else.  He didn't even want to talk about the HS models, he wanted to talk about Caldera instead.  I pointed out the different seat back of the HS - he made some non-committal remark about yeah the jets are different.  I asked about warranty - he handed me a brochure on the Caldera - gee, thanks for that. He then said that I should come back with my wife - why, so he could waster her time as well?

Without a doubt this was even worse than being ignored, I actually left this place feeling pissed off - I made the effort to find this place, drive there and go in.  It's hard to believe these guys have been in business for 40 years.

This person didn't do one single thing right on any level. >:(
Title: Re: How to prevent a "down year" in 2007
Post by: East_TX_Spa on April 20, 2007, 03:27:14 pm
I'm really sorry. :-[

I'd never seen a Porsche before.

Please give me one more chance!

Terminator
Title: Re: How to prevent a "down year" in 2007
Post by: drewstar on April 20, 2007, 03:32:23 pm
Quote
Okay, I went by the Hot Springs dealer and all I can say is that's 20 minutes of my life I'll never get back.

What an utter waste of time, didn't provide ANY information at all other than to say repeatedly "you have to try them to see the difference" - no kidding.  He asked me a question and then as I was anwering him he saw a Porsche through the window and walked away from me with some comment about how I'd like to have that (reminded me of Homer Simpson - "ohhhhh shinnyyyy").  My answer was that I really don't care about what people drive.   and that was it.  I mean come on people!  It appeared that I was more of an inconvience than anything else.  He didn't even want to talk about the HS models, he wanted to talk about Caldera instead.  I pointed out the different seat back of the HS - he made some non-committal remark about yeah the jets are different.  I asked about warranty - he handed me a brochure on the Caldera - gee, thanks for that. He then said that I should come back with my wife - why, so he could waster her time as well?

Without a doubt this was even worse than being ignored, I actually left this place feeling pissed off - I made the effort to find this place, drive there and go in.  It's hard to believe these guys have been in business for 40 years.

This person didn't do one single thing right on any level. >:(


Wow.

Did he at least have his pants on?

"I asked what the key differences were in the lines he carried - answer "the jets""

That's not a good answer?

But what if it's accurate?



Title: Re: How to prevent a "down year" in 2007
Post by: East_TX_Spa on April 20, 2007, 04:15:32 pm
All kidding aside, it sounds like you are having to deal with a dearth of ineptitude!  Some folks should just not be in the spa business as they give the entire industry a bad name.

I wish you luck in your search.  It's a crying shame you don't live in East Texas or you would probably have a spa by now. :(

Term
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 20, 2007, 08:10:57 pm
Quote
Okay, I went by the Hot Springs dealer and all I can say is that's 20 minutes of my life I'll never get back.

What an utter waste of time, didn't provide ANY information at all other than to say repeatedly "you have to try them to see the difference" - no kidding.  He asked me a question and then as I was anwering him he saw a Porsche through the window and walked away from me with some comment about how I'd like to have that (reminded me of Homer Simpson - "ohhhhh shinnyyyy").  My answer was that I really don't care about what people drive.  I asked what the key differences were in the lines he carried - answer "the jets" and that was it.  I mean come on people!  It appeared that I was more of an inconvience than anything else.  He didn't even want to talk about the HS models, he wanted to talk about Caldera instead.  I pointed out the different seat back of the HS - he made some non-committal remark about yeah the jets are different.  I asked about warranty - he handed me a brochure on the Caldera - gee, thanks for that. He then said that I should come back with my wife - why, so he could waster her time as well?

Without a doubt this was even worse than being ignored, I actually left this place feeling pissed off - I made the effort to find this place, drive there and go in.  It's hard to believe these guys have been in business for 40 years.

This person didn't do one single thing right on any level. >:(

Case in point Drewstar and the timing of this post was impecable! I'm sorry to hear that this happened but no one product is exempt from sales idiots. I do agree though that the major manufacturers do tend to have wonderful training though it's certainly not HS exclusive!
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 20, 2007, 08:13:10 pm
Quote
Thanks Steve.

I was just thinking about this and was wondering if 03 was a good cash cow. After all, once it's sold and installed the 03 unit is pretty much self sufficent, as opposed to N2 and other chemicals which  keeps customers comming back and is a good revenue stream.

Yup, I figured the mark up would be that much to cover Overhead and operating costs

Actually, O3 requires a chip or bulb every couple years which can half the cost of the ozone unit itself. Makes ya wonder just how much you're saving in watercare product eh? I do understand that some units have a longer life span but there's usually more of upfront cost associated with those as well.
Title: Re: How to prevent a "down year" in 2007
Post by: hottubdan on April 20, 2007, 09:05:16 pm
Quote

Actually, O3 requires a chip or bulb every couple years which can half the cost of the ozone unit itself. Makes ya wonder just how much you're saving in watercare product eh? I do understand that some units have a longer life span but there's usually more of upfront cost associated with those as well.
In my experience, most people do not change chips or bulbs.  Makes you wonder how much ozone is really being pumped into those hot tubs.
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 21, 2007, 10:10:43 am
Quote
In my experience, most people do not change chips or bulbs.  Makes you wonder how much ozone is really being pumped into those hot tubs.

I've had people tell me how great ozone is and that they have had it in their spa for 5 or 6 years and LOVE IT! Needless to say, it stopped working a number of years ago but hey, they love it right?! ;D
Title: Re: How to prevent a "down year" in 2007
Post by: caribbeansun on April 21, 2007, 10:18:05 am
I'm in Canada so no Texas sales folk and yes he had pants on which was just as well given his reaction to the Porsche  ::)

Well, stuff happens so no worries, there just won't be a sale for those guys.  I also won't be sending them any business and as with all interactions of this type people remember pain and discomfort so I'll likely end up telling more people about it but you never know.

What my trips to these various dealers proves is that it really doesn't take a whole heck of a lot to differentiate yourself in the market if you are willing to invest in some training and be an active dealer checking on what your sales force is doing - secret shoppers while sounding silly are really worth it - how many of you do this?

Yes you have to differentiate your product but you absolutely MUST differentiate yourself first - the product stuff just blends into mush over time but what leaves a lasting impression is the person you dealt with - get that right and carry a decent product line and you should do very well.

The one thing none of these places did was figure out (at least I'm pretty sure they didn't) what market I was shopping - asking me what my budget is won't get you that information.  It amazes me that so few sales people can ask simple, non-threating questions to qualify their leads.  If they had asked about my neighbourhood, asked why I wanted the hot tub is it because I work in a high stress job which should lead to a question(s) about what kind of work my wife and I do, how would it integrate into my landscape, observed my wife's jewellery, my watch and ring, the car I drove, asked a non-confrontational question around the financing offered.  The clues are all there and you can weave these into the sales patter without coming off as 20 question intimidating.  Of course most people look at the clothes and make a judgement based on that - really silly because I don't wear an Italian suit to shop for a hot tub, who does?

Sorry for the rant, my line of work is in buiness advisory so I'm forever amazed at how few companies actually attend to delivering the minimum level of service let alone exceeding expectations.  Every one of the companies I work with (across a wide spectrum of industries by the way) say they want to exceed customer expectations and at the beginning every one struggles just to meet the basic required level of service.  The competition is no better than they are and if all they do is meet the required basic level and then add on say 3 things to that they will stand out from everyone else around them, get those right and add 3 more, and so on - in a couple years you've got the best damn operation in the region and your sales and bottom line are proof.  It all has to start with the owner though and too often they just aren't willing to invest the effort, time, pain and yes, cost to get things right.  The funny thing is that this is all self-funding but most people never want to change anything they do.  They continue to do the same thing every day and expect a different outcome - good luck with that!





Quote

Case in point Drewstar and the timing of this post was impecable! I'm sorry to hear that this happened but no one product is exempt from sales idiots. I do agree though that the major manufacturers do tend to have wonderful training though it's certainly not HS exclusive!
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 21, 2007, 10:55:25 am
Well said. DAMN, us Canadians are sharp!  ;)

I agree that it all starts with the business owners and if they're not willing to properly invest in good staff by training, monitoring and paying them well, the result will be parallel.

That said, the largest challenge in retail is finding quality people…

Steve
Title: Re: How to prevent a "down year" in 2007
Post by: East_TX_Spa on April 21, 2007, 11:15:17 am
NOW it becomes clear...you're dealing with Canadian salespeople.  Bless their hearts!

Terminator
Title: Re: How to prevent a "down year" in 2007
Post by: Zep on April 21, 2007, 11:17:26 am

re: "...the largest challenge in retail is finding quality people…"

And in the service industry!

We are constantly looking for "super stars" and I suppose for
every "super star" there are at least a dozen "flakes....lazy.....
baggage....I don't wanna be at work" types that you have to filter out.

When you find those "diamonds in the rough"....super stars.....pay them
well......pamper them....they are indeed....very rare....kind of like #23!
 


(http://www.michael-jordan.ws/images/michael4.jpg)

Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 21, 2007, 11:20:58 am
Quote
NOW it becomes clear...you're dealing with Canadian salespeople.  Bless their hearts!

Terminator

It IS a little harder to close someone without the added benefit of a weapon to their head here but we manage...
Title: Re: How to prevent a "down year" in 2007
Post by: ZzTop on April 23, 2007, 09:34:48 pm
Happy Birthday STEVE!

ZZ
Title: Re: How to prevent a "down year" in 2007
Post by: Steve on April 24, 2007, 10:12:58 am
Quote
Happy Birthday STEVE!

ZZ

Cheers my friend. Hope all is going well for you!

My wife got me a skydiving package for my Birthday so I'm thinking she wants me dead! Like most, I'm worth far more dead than alive! ;)

http://www.edmontonskydive.com/Tandem.html

10,500 feet..... :o
Title: Re: How to prevent a "down year" in 2007
Post by: ZzTop on April 25, 2007, 03:56:22 am
Quote

Cheers my friend. Hope all is going well for you!

My wife got me a skydiving package for my Birthday so I'm thinking she wants me dead! Like most, I'm worth far more dead than alive! ;)

http://www.edmontonskydive.com/Tandem.html

10,500 feet..... :o

Steve I hope you get the DVD package as well so that we can watch you on U Tube

High Definition video and pictures of you in freefall
on a DVD with bonus footage $100
Title: Re: How to prevent a "down year" in 2007
Post by: caribbeansun on April 25, 2007, 08:31:16 am
I did the same thing on a recent trip to New Zealand - jumped from 15,000 feet - definitely get the DVD package as you will want it to remember the experience.

I would have gone again but the weather turned on us.

Enjoy!
Title: Re: How to prevent a "down year" in 2007
Post by: thearm on April 25, 2007, 09:05:00 am
Quote
Okay, I went by the Hot Springs dealer and all I can say is that's 20 minutes of my life I'll never get back.

What an utter waste of time, didn't provide ANY information at all other than to say repeatedly "you have to try them to see the difference" - no kidding.  He asked me a question and then as I was anwering him he saw a Porsche through the window and walked away from me with some comment about how I'd like to have that (reminded me of Homer Simpson - "ohhhhh shinnyyyy").  My answer was that I really don't care about what people drive.  I asked what the key differences were in the lines he carried - answer "the jets" and that was it.  I mean come on people!  It appeared that I was more of an inconvience than anything else.  He didn't even want to talk about the HS models, he wanted to talk about Caldera instead.  I pointed out the different seat back of the HS - he made some non-committal remark about yeah the jets are different.  I asked about warranty - he handed me a brochure on the Caldera - gee, thanks for that. He then said that I should come back with my wife - why, so he could waster her time as well?

Without a doubt this was even worse than being ignored, I actually left this place feeling pissed off - I made the effort to find this place, drive there and go in.  It's hard to believe these guys have been in business for 40 years.

This person didn't do one single thing right on any level. >:(

I had the same experience when shopping for a hot tub. I visited dozens of dealers and really none of them were very good.
1)Hot Springs dealer wanted to sell me what he had not what I had requested. Would not listen to me or could not get a call back from him.
2)Sundance dealer badmouthed the competition and came across very slick and a weasel.
3)Beachcomber was the best of any dealers and I wet tested there. Would have bought but tub didn't feel right for me or the wife. Also had a different sales person give me conflicting info on a wet test. This person should be taken off the sales floor imo.
Ended up buying Emerald from dealer who had been in business over 50 years. Gave me as much room as I needed. One price for each tub I looked at. No haggling, take it or leave it. A low key no nonsense here is quality tub and we will be here to back it up. SOLD, Did get a cash discount of almost 10%.
PS: Had to drive by at least 5 competitors to get to this store.