Dealers----Price Increases

[Chubby Johnson]

Dealers......Do your hot tub prices increase on an annual basis or more often than that?   Do the price increases always originate from the hot tub manufacturer or for your own reasons?

                  How many times a year can any given manufacturer raise prices?  

               If you are willing to give up the information I would like to know which manufacturer most often increases prices and by how much.

                 What is the amount of the average price increase?

                 Do manufacturers or dealers ever lower prices on hot tubs?

            As dealers, do you ever increase the price of a floor model tub that you paid for months ago?

[Jacuzzi Jim]

 Most manufacturers have 1 price increase a year, and most dealer's mark up accordingly.  This next year should be interesting.  We may see no increase at all, or it may be substantial??  

  I know the freight rates are going up!!

 As far as floor models go, we discount if they have been ran awhile, that being said it depends how long its been running, if I get a guy that wants to try a specific model that I don't show wet, I fill it,  let him use it then drain it and sell for new of course.  Unless he wants to buy said unit, I may take a hundred or 2 off to push it out.

[Calypso]

Steel prices have gone up by over 40% which affects motor housings, stainless steel jets etc, oil has gone up by over 25% percent which affects plastics ABS bases etc and I am sure the shell must also be affected by some commodity prices. As you also stated delivery prices are skyrocketing. We have been hit by a 25 percent fuel surcharge on all of our trucking costs.

I would be very surprised if the new prices do not increase by at least 10 to 20% which means people may have to start looking at the big box stores as a $7000 spa could go up to $8400 which may be beyond some peoples budgets.

Hopefully  I am wrong but I am sure happy we bought our Calypso when we did.  

[Spiderman]

  I know the freight rates are going up!!

 

Just a little, hey?              Shipping has gone absolutely bonkers!

[Hillbilly Hot Tub]

Calypso is so hitting the nail with the hammer. We have been told to exspect tub prices to increase at least 10% this fall. The cost of everything is going up. Parts, chemicals, accessories ect, plus the freight is killing us, fuel surcharges of 20%...that has to be added on to the prices too. And people that want a special tubs that are shipped apart from the rest of a load, it costs even more...

It will be an intersting year in all retail aspects!

[Mr._Bubbles]

oops. :-?

[Calypso]

Remember that the big box stores will also be hit with a 10 to 20% prices increase.

The only way a manufacturer can keep the price the same with all of the commodity price increases is to "cheap out" on the construction of the components.

Beware of 2 pump 30+ jet 6 person spas that are selling for under $5000 in the coming years if commodity prices do not decrease

[Vanguard]

Steel prices have gone up by over 40% which affects motor housings, stainless steel jets etc, oil has gone up by over 25% percent which affects plastics ABS bases etc and I am sure the shell must also be affected by some commodity prices. As you also stated delivery prices are skyrocketing. We have been hit by a 25 percent fuel surcharge on all of our trucking costs.

I would be very surprised if the new prices do not increase by at least 10 to 20% which means people may have to start looking at the big box stores as a $7000 spa could go up to $8400 which may be beyond some peoples budgets.

Hopefully  I am wrong but I am sure happy we bought our Calypso when we did.  

Oil has gone up 25% since when?  A month ago?  

Oil is one of the primary ingredients in a spa.  The jets, siding, foam, PVC piping, valves, all the plastic on a spa, the shell - all oil based.  Prices are going to go up on spas just like everything else in the world if this price of oil persists.



POLITICAL PLUG:

Tell Congress to Drill Here and Drill NOW!!

[Jacuzzi Jim]

Oil has gone up 25% since when?  A month ago?  

Oil is one of the primary ingredients in a spa.  The jets, siding, foam, PVC piping, valves, all the plastic on a spa, the shell - all oil based.  Prices are going to go up on spas just like everything else in the world if this price of oil persists.



POLITICAL PLUG:

Tell Congress to Drill Here and Drill NOW!!

  Same with Alaska!!!   I lived there for 12 years, and love the wild as much as anyone.  But my car doesn't run on caribou chit!  Alaska is big enough they will move.

[Calypso]

POLITICAL PLUG:
 
Tell Congress to Drill Here and Drill NOW!!

Another option is to eliminate the large 8 cylinders trucks, SUVs and Hummers (relax just the vehicle  ) in favour of more fuel efficient vehicles. Less demand will drop the price of oil. Just a thought.  

BTW oil was $65 to $70 per barrel last june so it has almost doubled in a year.

[Micah]

Another option is to eliminate the large 8 cylinders trucks, SUVs and Hummers (relax just the vehicle  ) in favour of more fuel efficient vehicles.

We are doing this with our service vehicles.  We have been getting rid of our v8 trucks and replacing them with mini vans.  mini vans with no rear seats and filled with parts get about 28 mpg.  We started that transition 2 years ago, now it is really paying off.

[Gary]

I am sure all the intelligent realize that the global warming thing is just a scam to make money. I always use the think the Church was the biggest hypocritical thing, but Al Gore passed them right up like they were sitting still.

[Vanguard]

Another option is to eliminate the large 8 cylinders trucks, SUVs and Hummers (relax just the vehicle  ) in favour of more fuel efficient vehicles. Less demand will drop the price of oil. Just a thought.  

BTW oil was $65 to $70 per barrel last june so it has almost doubled in a year.

Nope - Not an option.  Just drill for more oil to let me fill up my 8 cylinder Nissan Titan pickup that gets 14 mpg.  It would cost me more to buy a fuel efficient car than to keep what I have, so just drill for more.  Let freedom ring!!

And, to stay on topic:

With a doubling in the price of oil in the last year, it is amazing the manufacturers haven't had to raise prices more.  I know my company is having to consider a price increase just on transportation costs alone.  Plus, we have a lot of resin based products as well.  The raw material costs just keep going up as many suppliers are not as willing to enter into long-term contracts.

[Spatech_tuo]

Another option is to eliminate the large 8 cylinders trucks, SUVs and Hummers (relax just the vehicle  ) in favour of more fuel efficient vehicles. Less demand will drop the price of oil. Just a thought.  

BTW oil was $65 to $70 per barrel last june so it has almost doubled in a year.

Are you suggesting the Government eliminate 8 cylinders? You can't regulate what people want; this is America. It’s a matter of Americans waking up and smelling the coffee not government telling them what coffee to drink. In this case plenty of Americans are switching to decaf on their own.

The price of gas can do plenty of eliminating of 8 cylinder vehicles by itself. I have a couple friends who need step ladders to get in their truck and they've gotten a commuter car because gas mileage is killing them if they try to drive their penile compensator trucks to work. I think we all know gas prices won't get back to last years levels. Car companies are quickly switching over truck factories to small car factories because they know that Americans are starting to make more rational decisions of what they should drive.

[Jet Sitter]

An editorial in this morning's Seattle Post-Intelligencer addressed the current proposal to lift the ban on offshore drilling in the US.  It noted that these reserves hold a total of 19 billion barrels of oil and stated that this is a small amount because this total would satisfy the current US demand for only 2.5 years, then it's gone and we're in the same situation.  They said that according to the Petroleum Institute, it would take at least a decade for us to see a drop of this oil even if the proposal is approved.  They suggest that "It's a mistake to wait until all oil fields run dry before we change our ways."

I know some of you will agree and some will disagree with this editorial - just passing it along.  As for price increases, how much of an impact would this have on the industry?  With most goods, as price goes up, demand goes down.  But it seems that many people who buy spas are pretty well off and would perhaps buy a tub if it cost $12K instead of $10K.  Is this true or no?