Display pricing in showroom? Your thoughts..

[Steve]

Thanks all for your input and insight.

Here's my take on it.

If someone comes into my store and has been to a handful of stores, they immediately determine if ours are a "good value" by the price displayed. Let's face it, most shop by price and although I understand we all have budgets to work within, true value can't be determined by one price.

The customer see's a tub they like but at the last store they were at, the similar one was $500.00 less. Do you run the risk of letting them walk?

It's the same philosophy when someone comes in and ask's, what's the price of that spa... what's the price of that spa... what's the price of that spa. That just irrate’s me to no end. How can one truly determine value before finding out about a product. I don't want a sign to sell the spa, I want a salesperson to earn their money. Now granted, pricing will give people an idea of the type of spas they're looking at, but that's about it.

We've all seen it many times where someone comes in with a certain budget in mind, but often finds the spa that best suits their needs is a thousand or two more than what they thought it was going to be. The majority of the time, they have no problem spending that money to get what they want.

I guess the other aspect to consider is how you do business. Any price we quote will be what the customer pays for the tub. We have factory direct promotions that add value to any spa and we write everyone up that comes in looking at spas. Your closing ratio increases dramatically by doing that as well.

So after spending an hour with us, the customer not only knows about our company and product, they have a real quote with the pricing of everything included when they walk out the door. I don't mind doing it as it's so difficult to really compare apples to apples. They will also have all the extras marked down on that quote with a total savings.

We've done it this way for 15 years and it might be an issue for 4 or 5 people a year. When asked, I just explain that we want to take you through the entire process and let you decide if the pricing is really a good value or not. Without that knowledge, ricing means nothing. It's a starting point for many dealers that use it as a tool to build value on. They run the risk of "sticker shock" for sure but then try to make it a real value when they come down $1000.00 from that price.

Cars, appliances and such are items we have all purchased and we have an idea of brands and features and such. Hot tubs are a new purchase for 98% of the people walking into your store and I believe they deserve our time to take them through the buying process and let them decide if the product has value by then of the presentation. Just my concept anyway...

I see not many of you will be buying a tub from me anytime soon!!

Steve

[Brewman]

Thanks all for your input and insight.



I see not many of you will be buying a tub from me anytime soon!!

Steve

Perhaps not, but seeing as how I don't live in the same country as you, and the fact that I already own a spa.


I prefer that prices are marked on the stuff I am shopping for, but I would not rule out dealing with a store that did not have prices marked.  
You certainly seem to have a successful business model, so what you are doing must be working.  More power to you!
Brewman

[Electro]

Steve,                                      

I want to see a price posted on each spa.  Frankly, there is a big black mark in my mental picture of dealers of who do not post prices, no matter what the product is.  The same for cars, pianos, clothes, airplanes, firecrackers, food, houses, etc.  By the way, the best dealer that I encountered was a home seller in Arlington, Virginia in 1982 who posted prices outside on their new model homes, ranging from $139,999 to $489,999.

The dealer can easily tell customers who are interested if and how much the prices might be negotiated.  It works either way.  Note that Saturn cars are very successful with folks that just hate the whole negotiating thing.  They pay about midrange of what others might pay.  More folks than not like the negotiations, so that is your best bet.  Unless, you can have more than one store, in which you should definitely have one that negotiates and one that has a flat price.

Electro

[poopsy]

""The customer see's a tub they like but at the last store they were at, the similar one was $500.00 less. Do you run the risk of letting them walk? """""


Well...i dont knoe about there but here in denver colorado they do just that..let you walk and will even open the door for you...lol

I am serious..here is the setup....there is 1 store chain (lets say called spa1)..AND they carry sundance and sweetwater...then another store chain carries(spa2) sweetwater and caldera.. for example.

Ok  spa 1 and spa2 have 2-4 stores in the colorado area....and since they have a monopoly on the brands they set the prices....if you say spa 2 has a tub i like that is like your sundance tub but its 1000.00 less...they just say.....well ours is a better tub...blah blah blah...
and they WILL let me walk.....
Essentially all the stores do this cause no SEPERATE other owned store carries that same brand....so they have you in a bind-aka pricefixing in a way.
Now if there was another store(spa3) who carried the same tubs as spa 1 then you would have some serious competition. Meaning more reasonable pricing. I AM DEAD SERIOUS on this.

I just feel since dealers are set up like this they just let you walk away

[Mendocino101]

I agree that this probably happens, and certainly with customers who view price as the sole input into the buying equation it will always happen.  It need not though.  The dealer I started with helped educate me about the product line and helped get a spa filled for me to wet test.  We established a relationship during this process so that when I visited another dealer in the area who had posted prices MUCH lower, I went back to the first dealer to discuss price.  I wasn't going to beat him over the head and insist that he match or beat the price; neither did I think it was reasonable for me to pay that much of a price differential for the identical item.  We worked out a price that made both of us feel good.  During this process, I did not soak up much staff time at the second dealer, nor did I try to get the dealers into a price war.  I guess my point is that if the dealer can establish some kind of relationship with the potential customer, the dealer will not necessarily lose the sale to a lower-priced dealer.

...That really is the way it should be...and it was very nice and considerate of you to give that first dealer a chance to see if his price could be more inline with the other...not all shoppers will do that...not all dealers costs and or retail prices are always going to be the same but they should be with in reason...I hope you enjoy your spa...

[ndabunka]

Steve - The sign is the opener. The salesperson is the closer. It's that simple. It's up to the sales person to identify the value the client sees as a benefit and then to align that with the spa they are seeking. A good sales person can make the customer feel that the price is secondary. THAT's how to sell spas IMHO.

[poolboy34]

We don't post prices on our spas.  This is b/c we want the members of sales staff to get to know the customer and find out why they truly want a spa, and what features they want their new spa to have.  We also typically start our customers at the least expensive models and work our way up the chain to show the differences and build value into each spa based on the increasing number of benefits and features they offer.  Plus our prices are ALWAYS higher then our competitors and posting our prices on our spas would give our sales staff no opportunity to give a proper presentation.

Jason,
Store manager for a D-1 and caldera Spas dealer

[Steve]

We also typically start our customers at the least expensive models and work our way up the chain to show the differences and build value into each spa based on the increasing number of benefits and features they offer.

Personally, I think you are doing yourself and the sales staff a HUGE injustice by starting at the least expensive. I'm not saying to oversell your customer, but once you show them all the features and benefits of your higher end, they'll reach a point where they just to want to go without certain features.

By starting at the least expensive, you will sell spas to people that would have otherwise purchased a more expensive one. That I will guarantee Jason and I have done both for many years. I would seriously look at making a change in the way you present your line and you will sell more of the higher end spas. Believe me, and I think anyone who has been in sales for any length of time will tell you the same thing. It's well worth it and you will benefit from it as well.

Plus our prices are ALWAYS higher then our competitors and posting our prices on our spas would give our sales staff no opportunity to give a proper presentation.

This may be a reason that others talked about where you're afraid to show it based on your price alone. I wouldn't display the price even if we were the cheapest in town. Regardless of wether or not signage is used, it doesn't prevent the exact same presentation from your sales staff. Price may well be the first question some ask and I'm more than willing to give it, but at the same time, people making this purchase have disposable income to spend. They are in our stores (and not at a department store) for a reason. They want quality and a dealer that's going to look after them. Though value is critical, the question of pricing doesn't come up until later in the conversation in most instances I've found.

I think we as salespeople and business people put far too much emphasis on PRICE and less on value. This is why some get frustrated when shopping because we focus more on lowering price to show value than showing quality. Why is it we feel the need to lower price and display it when all we really want is the opportunity to show how great of a product we have and the reason why these people should be purchasing from us?

Steve

[ZzTop]

Thanks all for your input and insight.


I see not many of you will be buying a tub from me anytime soon!!

Steve

Steve don't worry you got in the back door.  After reading the many intelligent, thoughtfull and informative posts you have written, if I were in Edmonton you would be my Spa Guy.

I still like to see the price together with The model name and a  list of the features and added value features of each spa when I walk into a showroom.

With the Model and features listed it gives me a springboard to ask the Salesperson about the spa and get a brochure.

Keep up the good work,

regards, Zz

[Shut_Down_Stranger]

We don't post prices on our spas.  This is b/c we want the members of sales staff to get to know the customer and find out why they truly want a spa, and what features they want their new spa to have.  We also typically start our customers at the least expensive models and work our way up the chain to show the differences and build value into each spa based on the increasing number of benefits and features they offer.  Plus our prices are ALWAYS higher then our competitors and posting our prices on our spas would give our sales staff no opportunity to give a proper presentation.

Jason,
Store manager for a D-1 and caldera Spas dealer

I would not buy a spa from you.

Personally, I like to see the the "fair discounted street price" of the spa listed, without options. We can haggle over the extras and determine what is a fair price for those, but not putting the price on a spa is like negotiating in a foriegn street market with much more $$$ at risk.

Custormer thinks he is getting a good deal, until he finds out that he did not and he is forever angry and won't walk back in the door, or tell his friends about his positive experience.  

[Steve]

I still like to see the price together with The model name and a  list of the features and added value features of each spa when I walk into a showroom.

With the Model and features listed it gives me a springboard to ask the Salesperson about the spa and get a brochure.

Hey Zz and thanks. Just for clarification, we do have the model and details listed on each spa in the showroom but not pricing.

Take care my friend,
Steve

[Mendocino101]

I think that after being in retail sales for 27 years that the single biggest thing sales people do. Is to short cut the selling process...it is something you constantly hear about in training and yet it happens all the time.... it really is a disservice to the customer. . That if you do not take the time to find out the wants and needs of the customer you can than not try to match them with the product that bests fits those needs...the tough part is many times in things like a spa purchase is that when the price is posted people may not give the sales person the time to find the best spa that fits those needs.... and the sales person may not also have the chance to build any value into their product without a proper demonstration.... I guess the issue of price gouging is of fair concern…it is just something that has not been a part of the places I have worked…as well the competitive market keeping you inline...I have always thought it is better to be fair with people and that in the long term serves both yourself and the customer better….

[poopsy]

wait a sec.... correct me if i am wrong but what are a persons needs when looking for a tub? I mean....that seems a bit of more sales jargon to me...kind-of...no offence but....



most people want a tub to relax in right? I have been in maybe 20 hotubs total in my life and they all "do" the same thing.....bubble and relax you...i mean it isnt rocket science..right?

Now each company has its own bells and whistles but those bells dont really cater to a persons needs in a tub in general.Do you see where i am going with this? when i 1st went to look at tubs all i heard was> this one has more jets...thisone a lounger....colored lights....waterfalls..well for an extra 800.00 this one has a stereo....oh and this one a popup tv........

so please tell me how these can be considered needs? The hotub in general is a luxury item. if i walk in your store you asked me my needs i would wonder what angle you were going at.I would answer..well...my needs ar relaxation and quality...dependabilty...

So every store says this is their tub.,,,so as we all know a wetest is the clincher....more then price...cause even if the price is good ,if you dont like the wet test..its no sale.

So the problem really is when someone wet tests a few tubs and they all are decent..then he sees 1 is 7000 and the other is 8000..he must now factor price into it.
Maybe i am way outa line here..if so i am sorry ...but apart from size-color--lounger or not..i suspect everyones(or the majoritys) needs are the same....in fact just using the word needs seems a bit silly and glorifying that fact that its just a hot tub....

Its like a car...basically it goes from point a to point b...but some have this image of them in a sports car or suv or?  whatever so maybe its the same for hot tub......I just keep thinking of when i am driving around and see all these suv's with 1 person in them guzzling gass and looking spotless....slowing over rr tracks and thru small puddles when they have beefy suspension which was an advertised feature ...people really buy into all kinds of stuff it seems...

[Lori]

wait a sec.... correct me if i am wrong but what are a persons needs when looking for a tub? I mean....that seems a bit of more sales jargon to me...kind-of...no offence but....

Just a note, some people use hot tubs for therapy for medical conditions.  Arthritis and other conditions are benefited by the theray hot water will give, as well as the whirlpool effect!

Yes, most people by tubs for relaxation, I was one of those.  But there are people who have "needs" and if a sales person asked me, I would tell them.  

[Tubber]

 I wouldn't display the price even if we were the cheapest in town. Regardless of wether or not signage is used, it doesn't prevent the exact same presentation from your sales staff. Price may well be the first question some ask and I'm more than willing to give it, but at the same time, people making this purchase have disposable income to spend. They are in our stores (and not at a department store) for a reason. They want quality and a dealer that's going to look after them. Though value is critical, the question of pricing doesn't come up until later in the conversation in most instances I've found.

I think we as salespeople and business people put far too much emphasis on PRICE and less on value. This is why some get frustrated when shopping because we focus more on lowering price to show value than showing quality. Why is it we feel the need to lower price and display it when all we really want is the opportunity to show how great of a product we have and the reason why these people should be purchasing from us?

Steve

I whole heartedly agree with you. Quality and service are number one in most peoples mind. Granted your going to get the bottom feeders and penny pinchers who regret it down the road. However the higher percentage of tub shoppers are looking for A high Quality product thats going to last,and a high quality dealer thats going to be there when service is needed. This is a big investment for many people.

No prices in our store, I think they take away from the beauty of the tubs themselves.