What Is The Mark-Up????

[crystal777]

OK....so I know you dealers wont tell me, but what is everyone's experience with pricing. Is asking for 10% off reasonable??? I was quoted $7600 for Sunrise Meridian. How much can I expect him to come down from that?

crystal777

[wewannahottub]

Oh, boy.  This question was beat to death many times with MSRP's flying in the air!!!
  :-?

[ndabunka]

The reality is that Hot tub dealer make a significant amount of profit on each spa.  In many cases, that is essential to keeping the doors open.  In other cases, it is simply the way the business works.  I don't know what a "Sunrise" spa is but that in and of itself may not be necessary.  Many, many of the lesser known brands simply place "fake" inflated prices on their spas and "say" they are giving you a discount.  ....Oh, yes the supersoaker 180000 is "normally" a $12,000 spa but I will sell it to you today for $4,700... Sound like a deal?  Nope, they NEVER sell is for the $12K list price but rather ALWAYS sell it to everybody for that same $4,700 price tag.  It's their particular way of lying to get a sale.

Others, have legitimate discounts.  Just because it's a name brand does not mean that it is safe to simply take a dealers word for the value of the spa.  One dealer may sell an Jacuzzi SUPER (fake name) for $9,000 and another in two states over may sell it for $7,200.  In many instances they both have the EXACT same costs.  It's just that the second dealer has decided to sell more at a lower price whereas the first dealer may be comfortable only selling one or two a month.

Bottom line is that the ONY way to figure out if you have a good price it to search these hot tub forums and discover what others have paid for the same (or nearly the same) tub as you are interested in.  Use the "SEARCH" button on the top of this page, put in your tub name and then read the post others have made.

[crystal777]

Did the search. Nothing on Sunrise Spas. Thanks for the info anyway.

crystal

[hottubdan]

OK, here is my take.  There are 2 kinds of hot tub dealers, those who make their livings selling hot tubs and those who sell pools and other products and for them, hot tub sales are an insignificant part of their business.  So, when the same spa is being sold for $7200 and $9000, I would guess the dealer selling for $9000 is a specialty retailer and needs to sell it for @ $9000 to cover his overhead, stay in business and take care of his customers.  The dealer selling for $7200 is either mainly selling other products, and/or providing terrible customer service or on their way out of business.

I have a pretty good knowledge of what various spas cost and I have seen some prices quoted on the forum over the years that are not sustainable if they are real.

[Jacuzzi Jim]

 I posted something earlier, then deleted it.  It just didn't come out right.   Dan what you said is right on.  I am simply amazed at some prices stated here. Specially for recently purchased Jacuzzis.  

 One thing I have noticed here is, one person can pay a said price for their spa. It doesn't mean someone else here in another part of the country will get the same price, but in turn it should give them a rough idea of what it should be or close to it.  

 But even that from what I have seen can be quite different.

 I do agree the dealer that charges a bit more will probably take care of his customers better. I am sure there are exceptions.

[hottubdan]

I posted something earlier, then deleted it.  It just didn't come out right.   Dan what you said is right on.  I am simply amazed at some prices stated here. Specially for recently purchased Jacuzzis.  

 One thing I have noticed here is, one person can pay a said price for their spa. It doesn't mean someone else here in another part of the country will get the same price, but in turn it should give them a rough idea of what it should be or close to it.  

 But even that from what I have seen can be quite different.

 I do agree the dealer that charges a bit more will probably take care of his customers better. I am sure there are exceptions.

I was responding to your deleted post.  It sounded all right to me.

[Steve]

The reality is that Hot tub dealer make a significant amount of profit on each spa.  

I gotta kick outa that! Spoken like a true spa dealership owner!!   Oh...wait a minute...

It's MUCH less than most consumers believe, I'll tell ya that!
Slightly more profit is made on the "top of the line" spas in a given line but when it's all said an done, the reality is that most dealers selling less than 75 units annually have to obtain serious revenue from other sources to survive. why is it you see patio furniture, BBQ's, pools etc in these stores? If the profit was as good as some believe, why diversify? :-?

Once overhead, commissions, delivery, freight, advertising, etc are all paid, the remainder of the profit in all honesty is peanuts. A “significant amount of profit” is not only exaggerated, but totally inaccurate.

A 30-35% mark up is not uncommon. Chemicals do offer greater profits as well as many accessories.
This is far from the jewellery industry @ 150%!

So a $7000 spa brings in about $2100 to play with. After all the costs aforementioned, there’s less than a grand of actual profit. Selling 20 or 30 spas a year doesn’t do much for a business. I do know that it cost about $1500 to open our store up for the day.

As mentioned by others, each dealer has their own strategy for pricing. Some mark it up and discount for perceived value, while others offer optional freebie items. Chances are that if you have counter-offered and are walking out the door and they don't stop ya, you know their lowest price!  

[Swell-Tub]

When I put money down on the Coast Radiance the dealer was able to drop the price from 15,500 to 13,500 when I tried to cancel the deal. Now it just happens that my company hired the Spa Salesman that showed me the spa. After I cancelled the deal he told me what range the dealer bought the spa for. This dealer always makes a large margin on his sales. Now after he pays the salesman commission, rent, utilities to have several wet tubs for customers, etc. I think that the number made more sense.

When you hear a tub is marked up 5K dollars you think you are being robbed. But consider what you paid last time to have your car worked on. A couple of weeks ago I had the timing belt, fan belts, and 6 spark plugs replaced on my Lexus. Cost was $725 (ouch). The point is any kind of dealer figures out what mark-up they will need to keep the doors open. If they charge too much then the dealer down the street will get the business. This is how commerce works.

I think the important thing is to look at what you want then compare prices and negotiate. When the deal is right then buy it. You do need to leave some profit on the table for the dealer or he won't be there the next time you need him. Now I don't sell tubs but I do like fair deals where both the customer and dealer win.

Just my 2 cents worth....
Scott  

[Steve]

Selling hot tubs has become too competitive for the most part, to allow for huge profits and gauging the consumer. If a business wants to stay in business, they have to price accordingly and at what the market can bare while considering their overhead and other costs.

I don't believe that there's too many spa dealerships making huge profits on a spa in this day and age. Not long term anyway...

[crystal777]

Wow, my original post just asked if 10% off asking price was reasonable. Never did get a straight answer on this one.  I'm beginning to think there are a lot more dealers than consumers on this site.

Also, I noticed everyone always says"Do A Seach"....Well before I post any question I always do a search....not much coming up on any of this stuff.

crystal777

[Spatech_tuo]

Wow, my original post just asked if 10% off asking price was reasonable. Never did get a straight answer on this one.  I'm beginning to think there are a lot more dealers than consumers on this site.

You never got a straight answer because there is no answer to that question.

I've worked with a dealer who will give a starting price and leave room for the customer to haggle. With that kind of dealer asking for 10% off is perfectly fine, expected and about the amount he leaves to wiggle.

I've also worked with a dealer that doesn't go that route but gives one price for all which was always fair (compared to the competition and knowing how the business works). Most customers appreciated the fact that it wasn't a game. Some couldn't get over the fact that they had to pay the same as everyone else because they were wheeler dealers who expect to fight it out. You could ask for 10% off but you weren't going to get it (under normal circumstances of course, exceptions I saw were things like two people buying as a team, inside contact, etc.). If you pushed really hard you could get some accessories at cost but certainly not 10% off the spa price.

Which type dealer are you working with? I don't know so I can't say whether you can get 10% off. Now I will say this, I would always TRY to get the best deal available. Give it a shot. The worst thing they can do is say no and either counter with a better offer or tell you the sale price they gave you is firm. Another thing to understand at that point is lowering the price is more difficult to the dealer than offering accessories at a lower price or my favorite, asking for store credit. If for instance, you get close and you want another $300 off and they say no way turn it around and ask for $300 in store credit. That is much more palatable to them and you'll need chems and other items after the sale anyway so it works for you as well.

[Hillbilly Hot Tub]

  I'm beginning to think there are a lot more dealers than consumers on this site.

You asked a dealer related question.

Also, I noticed everyone always says"Do A Seach"....Well before I post any question I always do a search....not much coming up on any of this stuff.

The tub you are asking about is not a popular or well marketed tub, so not many people know what it is.

Spatech is right. There is no specfic $$$ amout. It depends on overhead and how they run their buisness. When I quoate a price, its rock bottom. You send a friend in it will be the same price, you come in next week it will be the same. You may see some dealers having to put prices up because our overhead costs are continually rising  in all aspects lately.

crystal777[/quote]

[BubbaGump]

OK....so I know you dealers wont tell me, but what is everyone's experience with pricing. Is asking for 10% off reasonable??? I was quoted $7600 for Sunrise Meridian. How much can I expect him to come down from that?

crystal777

Ok,  I am  not a dealer of spas, rather I sell luxury autos.  I have been doing my homework for some time on this purchase and I have not heard of a Sunrise Meridian.  

We normally would not take 10% Off of our product, unless it was a regular customer.  We do sell some customers many cars over time.  I have one that has purchased 12+ in the last 10 years for himself and family.  He never asks for a discount, but he knows that he is getting one, while others come in with no history and immediately try and haggle.

My question is if they say, nope thats as low as we go, will you be satisfied?  If so, then just ask.  What is the worst that they can do?  Say no...  You could get $$$ off, or you may not.  If its something that you think you are entitled too and they say no, just walk away, and let them know it (10%) will close the deal, and you will give them 48 hours to think it over.  If they can do it, they will.

[Mendocino101]

Wow, my original post just asked if 10% off asking price was reasonable. Never did get a straight answer on this one.  I'm beginning to think there are a lot more dealers than consumers on this site.

Also, I noticed everyone always says"Do A Seach"....Well before I post any question I always do a search....not much coming up on any of this stuff.

crystal777

The way one dealer may price his spas asking 10% may be robbing yourself but at another store it may not do able at all. It all depends on who your doing business with. We try to be as fair as possible with all customers and offer competitive pricing up front. If was I selling at MSRP and someone wanted 10% off I would do back flips to make that deal. We are lower each and every day than 10% off. I think most dealers are closer to us than starting at MSRP.