What's the Best Hot Tub

Author Topic: MSRP  (Read 37183 times)

Tman122

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Re: MSRP
« Reply #15 on: December 05, 2013, 06:14:10 am »
Correction-
How much (percent wise) UNDER their MSRP should they charge a customer for an internet sale?   
(If we could just focus on price here. I understand the warranty / repair / customer services problems associated with an internet sale.)

OK here, this isn't what you are looking for and you won't get what your looking for. If an online manufacturer tells you there spa is worth 12,000 bucks then they made that number up to make you feel like your getting a good deal when you pay 6,000 bucks. even though the tub is only worth 3,000 bucks.
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Re: MSRP
« Reply #15 on: December 05, 2013, 06:14:10 am »

Hottubguy

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Re: MSRP
« Reply #16 on: December 05, 2013, 10:14:08 am »
TMan hit the nail on the head.  If you go on certain websites they have spas with MSRP's of over 12k but sell them for 4K.  Guess what it's probably not worth 2K.  Stick to a reputable brand.  What online brand are you currently looking at?

Dr. Spa™ Ret.

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Re: MSRP
« Reply #17 on: December 05, 2013, 10:26:28 am »
The very few online spa dealers I've known don't work off a % mark-up, but off a set price mark up. e.g. every spa they sell, regardless of their cost, they add on $700 (an arbitrary number I just made up)
If you can't sell it on eBay, it may not even qualify as landfill.

Retired (mostly) from the industry after 33 years...but still putzing around with a consumer information website, and trying to sell obsolete owners manuals

clover

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Re: MSRP
« Reply #18 on: December 05, 2013, 11:20:52 am »
Rosewood, we understand you are looking to get the "best price", but even then, will you be able to recognize it, and will you buy?  Like the $40 part illustrated by JJ, or will you too walk out the door.

We all want to sell spas, and believe it or not, people walk in all the time wanting to buy spas, but not everyone buys while they are there.  It truly is a game of numbers.  First there is the wholesale cost paid to the manufacturer, and then there is the truck that brings it to the dealer that varies by distance and direction with cost dictated by the price of fuel.

Once we get it, we prep it, get the steps we paid for, the cover we paid for, the cover lifter we paid for, the chemicals we paid for, and we load it on the equipment we paid for, and send it out to you with able bodied people who are capable in getting the tub where it has to go, and yes we pay them too.

Everybody thinks the salesman gets paid, and yes he does, while we also pay all of our help that serve the needs of our customers.  Unfortunately, sometimes things require additional trips that we pay for, and then there is the customers lack of understanding how the systems work and we go out to investigate customer issues that result from a lack of understanding why the heat doesn’t work when the spa is in economy, but we do that with a smile, a handshake, even though it was not a warranty problem, but a customer service issue.

Then you get back to the store where we have to pay our bills for maintenance, repairs, utilities, rent, insurance, et al, etc.

While your question is focused on price, and we all do that when we buy cars, etc., can I suggest that you look the people in the eye, develop a relationship that you feel is trustworthy, and buy with the faith and confidence the dealer needs your business, as much as you will need him again and again in the future for needs you will have.

If you are curious about the profit margin, and are impressed with the potential of $2,000, $3,500 or even $4,000 and you see that as excessive profit, OPEN A STORE and reap the rewards.   ;)

But keep this in mind, the customer can always walk away, as he did with JJ over a $40 part he could get for $30 on the internet.  Think for a moment, how much did it cost him in time and fuel to seek out the part and then not get it?

I once had a customer whose spa came off the production line on the 12th of December ready to ship.  He was anxious to get it for the family for Christmas, but the "independent" truckers were not traveling east until the holidays are over, because his family is important too.  When the customer put on a scene over an issue I had no ability to influence or control, I gladly refunded his money, as I never wanted to deal with his personality again, not even at twice MSRP.

Once you make your decision, you are going to enjoy a hot water soak, and you will begin to realize, you are making something hard, that should be easy.
Trying to be the unbaised voice of reason.

rosewoodsteel

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Re: MSRP
« Reply #19 on: December 05, 2013, 12:39:30 pm »
Clover, Dr. Spa, HotTubGuy and Tman,
Thank you for your thoughtful responses.  I appreciate you taking time out of your busy lives to address my post.

I guess I haven't made myself clear and for that, I apologize.

I understand that you guys have to pay your employees, pay your rent/mortgage, stock your shelves, provide customer service and make a profit that makes it all worthwhile.  You have a lot on your plate, and I appreciate that. 
My question was meant to be more about the manufacturer and his profit , not the dealer.  (Looking back, I see that I did not express this well, at all.)
Here is the scenario.    I am interested in a Spa that is made by a major manufacturer which does not have a dealer in my area. (Who this manufacturer is, is inconsequential.)  This is not a Costco, Amazon, Sam's Club type of low quality POS.   They have given me an MSRP and a price which is approximately 15% less than their "quoted" MSRP.    The reduced price is what I would pay for this tub.   (On paper, their warranty is good.  I would, however, have to deal with their contracted service people in my area when I have any warranty issues.   For the sake of this discussion, let's not get into the warranty and service issues relating to this type of deal, at this point, just their "discounted" price.)
15% does not seem like a big reduction in price, given that MSRP, to me, has always been a “straw man”, meant to be knocked down and given that this manufacturer, in essence, has cut out the dealer (you guys) and the dealer's margin of profit.   Please note that they do not have a dealer in my area, so they are not actually cutting out their dealer to make a sale. 
At any rate, I hope I explained myself a bit more.    This is why I had my initial question about the MSRP.

Your comments are appreciated
 

Dr. Spa™ Ret.

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Re: MSRP
« Reply #20 on: December 05, 2013, 01:47:46 pm »
In my experience, this is about right...actually better than right. Most times, in these situations, the manufacturer will sell it at MSRP. Believe me, the manufacturer is FAR MORE concerned about not pissing off, or irritating their dealers, that sell THOUSANDS of their product, then they are with making a sale directly to you. Whether there's a dealer in your area, or half way to the moon, it makes NO difference.

If there's even a 0.000000001% chance a manufacturer could lose a dealer for selling you a product directly, they wont sell you you...or will make it so expensive to you their dealers wont care.
If you can't sell it on eBay, it may not even qualify as landfill.

Retired (mostly) from the industry after 33 years...but still putzing around with a consumer information website, and trying to sell obsolete owners manuals

Jacuzzi Jim

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Re: MSRP
« Reply #21 on: December 05, 2013, 03:25:05 pm »
  I doubt there will be little if any haggling with a mfg. either beyond what they are giving you.     That being said any "major" mfg. that would sell a spa that way, really isn't a "major" mfg.   I could be wrong as I don't know what "you" would consider a major mfg.    Good luck with that!     

hottubdan

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Re: MSRP
« Reply #22 on: December 05, 2013, 06:13:53 pm »
Your 2nd post in the thread mentioned a Sundance spa.  I cannot imagine they don't have a dealer that can sell to you.  I cannot imagine any major manufacturer not having a dealer that can sell to you.  Curious where you live and what brands are close enough to sell to you and service your spa.  We deliver 2 to 3 hours away from warehouse.
Award winning Hot Spring dealer for a gazillion years.

Tman122

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Re: MSRP
« Reply #23 on: December 05, 2013, 07:28:17 pm »
I would think you could do better than 15% off MSRP at your closest same brand dealer. Ask em. Go get it yourself and find a local service guy.
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Hottubguy

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Re: MSRP
« Reply #24 on: December 05, 2013, 08:10:27 pm »
If you say who the manufacturer is and the price you will get answers to whether or not you are paying too much

Chas

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Re: MSRP
« Reply #25 on: December 06, 2013, 03:07:39 pm »
Tell my which HotSpring you would like, and I'll send you an exact price. HOWEVER, today is the final day to order a spa from the factory for this year (12/6/13), so it would have to be on hand.

Former HotSpring Dealer - Southern Cal.

rosewoodsteel

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Re: MSRP
« Reply #26 on: December 06, 2013, 07:00:08 pm »
Thank you, Chas.  Unfortunately, I just saw your post a few minutes ago.   I appreciate the thought.   

Sam

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Re: MSRP
« Reply #27 on: December 06, 2013, 10:16:26 pm »
MSRP is always just some bs number.  Factoring MSRP into a decision is an exercise in futility. 


Ryan VSO

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Re: MSRP
« Reply #28 on: December 13, 2013, 03:58:05 pm »
If the manufacturer offer you a factory direct pricing , you would at least get 35% deduction.


Sam

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Re: MSRP
« Reply #29 on: December 13, 2013, 04:19:51 pm »
If the manufacturer offer you a factory direct pricing , you would at least get 35% deduction.



Said the manufacturer that doesn't have a dealer network.  MSRP is manufacturers suggested retail price.  A manufacturer can suggest any retail price to make their customers think that they are getting a good deal. 

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Re: MSRP
« Reply #29 on: December 13, 2013, 04:19:51 pm »

 

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