Thermospas selling through dealers.

[tinybubbles]

I just read an article that Thermospas will begin selling their spas in showrooms.  They will only be selling their Sparta line through dealers.  The dealers must agree to sell Thermospas exclusively.  Thermospas, not the dealers, will handle warranties, customer questions, and service calls.  

[hottubdan]

Where did you read that?  Is there a link?

[tinybubbles]

It's in the March 28th issue of Pool & Spa News, page 18.

[Steve]

Let's take a vote...

How many dealers here would consider carrying TS or even consider exclusively flooring them?

I guarentee you that there won't be an MSRP. It'll be, we want X number of dollars for a given unit and anything you sell over and above is your profit! If I can't service it and provide the after sales service, I wouldn't want it.

Times are tough in the spa biz I guess... I know they are here.

[BauerN]

Let's take a vote...

How many dealers here would consider carrying TS or even consider exclusively flooring them?

I, for one, would choose


[size=48]DEATH[/size]


first.

In giving up our service/warranty dept - we'd give away the best part of our store.  
We all know that there are a lot of good, reliable spas out there.  Fit and function matters most.  Would any of you dealers be the same without your own service/warranty?

[hottubdan]

Let's take a vote...

How many dealers here would consider carrying TS or even consider exclusively flooring them?

.

I vote no.  I am sure all dealers [glow]here[/glow] would vote no.

[wmccall]

It'll be, we want X number of dollars for a given unit and anything you sell over and above is your profit! .

Setting service aside, which is no small issue ,is the above different than any other dealer/brand?

[Steve]

Setting service aside, which is no small issue ,is the above different than any other dealer/brand?

In my experience...

I believe a strong dealer network should reflect (somewhat) consistant pricing. There are variables that effect this (cost of overhead, freight, etc.) but most strong manufacturers provide an MSRP to offer some degree of a level playing field so no one dealer is raping their potential customers. It is up to the individual but manufacturers have some insight into this as well. I can only speak to experience and my observations and communications.

I doubt you'll find an "A" dealer too far above MSRP and making huge points on their spas. Especially this day and age of spa sales and considering the level of competition out there. There will always be the "home run" dealer making 50 points but they generally aren't around long. We all know who there are (or were)...

[Spatech_tuo]

Setting service aside, which is no small issue ,is the above different than any other dealer/brand?

It will be a different line than they sell "door to door" for one very good reason. The spas they sell during their in-home presentations are sold at huge margins where they prey on the unsuspecting who have not shopped around and they're gone before the consumer can realize what happened, before they have a chance to compare elsewhere. They know they can't get away with that scam approach in showrooms because those people aren't like teh in-home buyers, they shop around so they develop a "separate brand" (I don't know if its in name only or they are really separate molds/spas) . I suspect they'll have more in the way of main line pricing though they'll save $ by keeping the service though the plant so the dealers don't do things like spend the Thermospas money on crazy ideas like servicing customers!

[Vanguard]

It seems to me they already tried to set up dealers on the west coast.  I remember them saying they had not sold as well direct on the west coast, so they were going to set up dealers.  I never did hear much after that.  Not sure if they never tried or if it just was a failure.

If I were a dealer, I wouldn't carry their spas.  How will they still sell direct and have a dealer?  What kind of prices are the dealers going to have to pay.  Part of their spiel is that they cut out the middle man.  Now they will have a middle man.  Will those $15,000 spas now cost $20,000 to the consumer?  Or will we really find out how cheap these spas are made since they'll have to be competitive with other manufacturer's dealer price?

[tinybubbles]

The article says they will only sell their Sparta line of spas through dealers.  These spas are currently only available overseas.

[Chas]

I imagine that there will be some dealers who have spas on their floor right now from a company which is going out of business, or is at the very least in financial distress. To them, connecting with a large company which seems to be solvent might be a welcome change. They can keep the service department for the spas they have previously sold, and for non-warranty work, of course. And T-spa would be looking for a good service provider in their area to do warranty work. Wouldn't it make sense to contact their own dealer first?

Or does T-spa send parts out to the spa owner and expect them to install them?

I don't get it.

 8-)

[Steve]

 And T-spa would be looking for a good service provider in their area to do warranty work. Wouldn't it make sense to contact their own dealer first?

 

This is the grey area for me too. Obviously, they will need to arrange to have a service contract in the locations of the dealers they set up so why not have their own dealers provide the service work? Why would I take on a line to have Joe's hot tub service company down the street service the tubs I'm selling?  :-? I think we're missing something here...  :-/

[hottubdan]

Jacuzzi used to operate that way in the pre-Sundance days.  They set up dealers to sell the product and independent service companies to provide the service.  I think a dealer could have both contracts.

[Steve]

Jacuzzi used to operate that way in the pre-Sundance days.  They set up dealers to sell the product and independent service companies to provide the service.  I think a dealer could have both contracts.

I don't know too many dealers that sell but don't offer service as well. Why would a dealer not want the service contract? I couldn't imagine selling my customer a spa and not having the ability to maintain the relationship or possibly give it to someone who could screw it all up for me and cost me future sales or referrals.

Anything out of my hands as a dealer such as contracting delivery people or service work can and most likely will negatively impact me as a dealer.

I'm just trying to figure why a dealer wouldn't want to service what they sell? If you can't service it, don't take on the line!