Trip fee's again

[Summitman]

We didn't discuss it because we do not charge trip fees.  We factor all of these costs into our pricing in order to give the customer one less thing to have to worry about.

Glad to know you're still enjoying your spa.  We are set up out at Maude Cobb Convention Center for the boat show all weekend.  Sold a Jetsetter and Grandee w/ SpaStone surround yesterday.  I've already sold more spas in January than I did from August until Christmas last year!  I figure folks have either realized that the sky is not falling or that it really IS falling and they might as well watch it fall from the comfort of a hot tub.

Gotta go...ya'll have a great weekend!

Terminator

Great to hear Term, we have had LOTS of people showing interest the past couple weeks, we may be showing some good sales numbers here shortly as well.  Im glad to know Im not the only dealer that feels the way I do about trip charges.

[michiganwinter]

As a consumer, I paid more for my tub than I could have elsewhere because the dealer is local and sold themselves on their excellent customer service and the wonderful spa warranty.  I paid $10,200 for the spa, steps, lifter, and spa butler. Others who bought the same spa and set up I believe have paid a lot less. To me, as a consumer, it was worth it to pay more and get better service. I am always willing to pay the local grocer more for the same produce than I am to the big chain, simply to help the local economy. Same thing for the spa dealer. I expect good service in return, and if the dealer didn't point out that I needed to pay for trip fees up front, and then charged me, I would be mighty pissed.

[Summitman]

What do most dealers charge for warranty trip fees?  $30 maybe

How many service calls throughout the warranty period of 3-5 years?  Lets say on average 3, sometimes more, sometimes less.

Thats 90 dollars worth of service calls that you want to charge the consumer.  It definetely adds up if your selling 200 spas a year, I can see that.  But why not just add 90 bucks onto your price of the spa and call it good.  The 90 dollars added to the cost of the spa is far better than hassling with VALUED customers whenever the spa they bought from you has a problem.   I just dont see the value in doing business the other way.  I would guess that half the people that buy a spa from you at some point will buy another spa from you.  Those that dont charge trip charges will be far more likely to sell that next spa to them as well.

[stuart]

What do most dealers charge for warranty trip fees?  $30 maybe

How many service calls throughout the warranty period of 3-5 years?  Lets say on average 3, sometimes more, sometimes less.

Thats 90 dollars worth of service calls that you want to charge the consumer.  It definetely adds up if your selling 200 spas a year, I can see that.  But why not just add 90 bucks onto your price of the spa and call it good.  The 90 dollars added to the cost of the spa is far better than hassling with VALUED customers whenever the spa they bought from you has a problem.   I just dont see the value in doing business the other way.  I would guess that half the people that buy a spa from you at some point will buy another spa from you.  Those that dont charge trip charges will be far more likely to sell that next spa to them as well.

In twenty years many customers have even bought 3 and 4 spas from me....In fact just sold a customer this week that is on their second spa and when I told them this new spa would still have a Co-pay on the service call they said "that's ok, we live in a world of co-pay!"

I probably do a lot of things different than many folks....I actually don't figure a finance charge in for 6-12 months SAC but rather show the customers upfront what it costs me and let them decide if they want to add it.

I also explain the delivery charge and what it is letting them know that every dealer "figures it in" on the "sale" price.

I'm not going to charge every customer an extra $90 on every sale to cover the fact that they could have 3 service calls possible. Most customers don't have service in the first few year (except D1) so I don't want to punish those that wouldn't.

The other thing I've noticed is that many calls like dirty filters, improper programming and wiring issues are more likely to be looked at harder by the customer if there is the potential for a trip fee.

I must be doing something right...I've sold well over 200 spas a year for many years and so far I haven't lost one sale that I know of to an internet forum even though I have no corporate representation or groups defending my brand here.

[Summitman]

I was just throwing something out there, thats all no more no less.  As far as your pop shot at losing deals here, you dont have to deal with false accusations and such pointed towards your brand.  Keep charging those trip charges, it sounds like its working out great for you!  

[Water Boy]

I must be doing something right...I've sold well over 200 spas a year for many years and so far I haven't lost one sale that I know of to an internet forum even though I have no corporate representation or groups defending my brand here.

Kind of hard to lose a deal on the internet when the brand you sell is never even brought up on here. I dont remember the last time a customer was on here looking at a Cal Spa. Just saying......

[Summitman]

lol
 

[zroger73]

In fact just sold a customer this week that is on their second spa and when I told them this new spa would still have a Co-pay on the service call they said "that's ok, we live in a world of co-pay!"

Consumers have been conditioned to accept lack of service, support, and quality products as the norm. Too many people shop by monthly payment alone and accept the first answer they are given without negotiation. This is part of the reason why so much cheap, plastic, inferior junk is sold these days.

[Shaamus]

Consumers have been conditioned to accept lack of service, support, and quality products as the norm. Too many people shop by monthly payment alone and accept the first answer they are given without negotiation. This is part of the reason why so much cheap, plastic, inferior junk is sold these days.

Not to lay it all at the consumer's feet by any means, but the shopper is not without sin here.  People are evolving into a throw away society.  The importation of cheap goods from overseas has convinced people that throw away and re-buy is preferrable to buy good and repair.  This trend isn't lost on manufacturers as it pads their sales over the years.  But we are killing the technician repairman.

Now in some markets like spas and hot tubs, the price point dive has attracted a new customer.  The low end opens up the market to casual spa owners instead of the hardcore, borderline hobbyists.  My stepdad is in his tub everyday so a $10k tub wasn't a problem to justify.

I think what some people don't understand is that a $4k-$5k tub is the entry-level version.  Yes, that's a lot of money to the average person, but at $4k-$5k the spa store can't afford to offer all the warm and fuzzies.  They don't make nearly what some people think they do.

As for trip fees, they need to be disclosed upfront.  But is that likely with most dealers.  Probably not.  Just like they don't tell you that the original cover will last 2-3 years and then you're looking at $300-$450 for a replacement every 3-6 years.  Should they volunteer the info?  Debatable.  I would, but I've never made my living by selling hot tubs.  The key is to be an informed consumer.  If warranty is selling you, ask to see it and then actually read it.  Ask about the maintenance costs.  Know what you're getting into as far as energy costs.  This is why I don't understand people buying from a mass-merchant.  Who do you ask?  Buying the 36 gallon jug of Tide at Costco is one thing, but a spa is another.

[clover]

While I understand where you are coming from on this Stuart, all dealers need to consider customer service. In the end, a dealership with excellent customer service will prevail in poor times as well as good times, because customers are the life-blood of any business. Start treating the customer with disrespect or what they see to be unfairly, and it will magnify and undo a lot of previous good that may have been done. This spa forum seems to be heavily trafficked by dealers. It is a very good medium to listen to the customers who pay for these spas and see what their take is on things.

Cheers

As I may recall, while you and others were shopping for the BEST hot tub you could find at the BEST price you were willing to afford, including spending extra time and expenses for traveling around and even out of state for, IF the dealer told you he would charge a "trip charge", there would be NO SALE and you would have been offended, because you are spending sooooo much on this item, you should be able to get it cheaper in spite of what the future holds.  It then becomes the dealers responsibility to pay the expenses to travel to the hot tub for service which could be 10 miles or even a 100 miles.  It is the perception of the customer that he is intitled to this type of service at NO CHARGE because he spent soooooo much.

We spent years subsidizing factory failures over bad glue, underpaid for the time consumed on repairs, and as Stuart has said, many dealers have been buried in expenses repairing manufacturer failures that are not adequately covered by warranties leaving the dealer holding the bag.  In addition, the customer lack of water care and maintenence leads to many repairs, ie failed pump seals leading to motor failure because of customer neglect, frozen fractures because they run the tub for 30 minutes every 6 hours in freezing weather.  It is presumed by the customer these are justifiable WARRANTY repairs when they are not.

It is like Stuart's first example, the other tub was great and nothing is said about it's failures, just the insulting attitude over a "trip charge" to cover the cost to attend to their needs (service) that some would never consider tipping for (ooppps).

This is a dealers problem that the manufacturer's depend on to correct tub deficiencies, many of which are consumer related and NOT necessarily product failure.  

This has been an issue for many years.  Dealers know the wholesale cost of the product they sell, the cost of getting the sale, their cost of doing business plus overhead, and the consumer want's it cheaper than others pay.  The only variable unknown is the lack of understanding (inteligence in some cases) of owning and maintaining a hot tub, and keeping it functioning probperly.  That includes knowing how to turn a diverter control to make jets work.  It is amazing how many stupid calls we respond to at our expense.  Yes, they do expect NO CHARGE and are shocked that we should even consider charging them for something they paid sooo much for.

[clover]

 

I never even asked about trip fees when I purchased my hot tub. I assumed any warranty repairs would be completely free of charge, as they should be. The small reimbursement from the manufacturer along with [glow]the healthy profit my dealer made [/glow]from my sale should cover incidentals....
… but [glow]there's a lot more profit in hot tubs [/glow]than in consumer electronics or cars..

One word, PERCEPTION, to quote you, “I assumed”, recommendation, open a dealership and get on the hay wagon!

....My Infiniti provides all these benefits and it's by no means the most prestigious brand out there. Also, warranties have increased on automobiles over the years. It used to be 12 months or 12,000 miles. Then the standard became 36 months or 36,000 miles. Most brands offer significantly longer standard warranties than that these days such as Hyundai's 10 year or 100,000 mile powertrain warranty...

BUY AMERICAN, obviously Hyundai is out to attract attention and to get business.  They haven’t even been around ten years.  While I am sure their product is worthy of consideration, as well as many of the other imports including yours, American manufacturer's suffer from the "Legacy cost" of a unionized work force, the mandates of government involvement, and the inability to import their products into competitor countries.  Go Figure

[Dr. Spa™ Ret.]

You ever read what a "power train" warranty covers? Or more importantly, what it DOESN'T cover (believe me, it covers WAY less than you think)? It's like the old spa warranties for life time structural warranty (basically meant it wouldn't crack AND leak water). About as good as as saying the spa wont be completely vaporized by lightening  


American marketing, and the consumers perception....tis a wonderful world...make that country  

If you'll excuse me, my spa dealer buddies and I are getting together for our weekly lear jet races.

[zroger73]

One word, PERCEPTION, to quote you, “I assumed”, recommendation, open a dealership and get on the hay wagon!

BUY AMERICAN, obviously Hyundai is out to attract attention and to get business.  They haven’t even been around ten years.  While I am sure their product is worthy of consideration, as well as many of the other imports including yours, American manufacturer's suffer from the "Legacy cost" of a unionized work force, the mandates of government involvement, and the inability to import their products into competitor countries.  Go Figure

Many of your "domestic" vehicles are more foreign than "imports". GM using engines and transmissions from China comes to mind. Many domestics being manufactured in Canada or Mexico come to mind as well. Then we have two of the most popular "imports" - the Camry and Accord - being assembled right here in the United States. I'm not trying to get into a political debate. I used to buy only Ford and GM vehicles. I finally got fed up with the quality issues and have been a happy owner of several non-domestic vehicles for several years now. I chose my Infiniti because it has a look, feel, and quality that I was unable to find in a domestic. The closest I found was a Cadillac CTS, but by the time I added the options I wanted it came in way too pricey. When the domestics offer the quality, overall value, and resale value of import vehicles then I'll consider switching back.