Welcome to our forum.
BTW I am not in the spa business...or any business for that matter, just common sense economics here
20 tubs a year is super conservative. My local HS dealer sold 300 last year. So, using your numbers and assumptions, he made about 540k !!! Does this sound right? A dealer should easily sell 50 in his sleep - thats only 1 per week.
A helpful example of economics and why spas are so expensive; though one should keep in mind that they are example numbers not actual data from someone in the spa biz. And the HUGE assuption is that the dealer actually paid $7k for a spa sold for $10k.
I am very familiar with the numbers in the spa biz. I can assure you that a 30% percent margin on a spa is about normal. \Although the expenses he used were WAY underestimated. $1000 for rent? That is ubsurdly less than most dealers pay. 2 employees totaling $29,000 per year. That is laughable. Would you want one of those 2 part time employees servicing your $8,000+ spa?No cost for advertising. In my city a good size newspaper ad on a weekend costs close to $10,000. If you do that once a month its $120,000. A consevative yellow page ad is $10,000+ a year(if you only have 1 yellow page ad.)I could go on
This thread is daffy.
Nonsense.As a buyer, unless you are loaded, you have an obligation to yourself to spend only what is necessary to get what you want - within reason - in fairness.You also have an obligation to keep the dealer - whatever he may be selling honest and competitive too.This thread is daffy.
Yeah... I'm duck'n out of this one! Other than to say that bodguy has brought up some great points as a useful guideline to give these people that think all spa dealers are making 100 points on each spa sold a small clue.If you want to keep your local dealers honest, shop wisely and don't buy from the company you feel has poor value. Your decision to purchase elsewhere will be a loud voice to let them know that their pricing is out of line. It has nothing to do with knowing costs. That is so thoroughly laughable. Like the consumer has any clue what margins any one company needs to stay in business. Yeah, lets let them decide what they want to spend and let them have it at whatever price they feel is fair? Seems to make great business sense to me!! Steve