MSRP

[rosewoodsteel]

Would you say the rule of thumb is that dealers sell spas for around 80% of the Manufacturer's Suggested Retail Price (give or take)? 

[Tman122]

Depends on their margin requirements and your negotiating skill. You will likely pay a couple grand or more over their cost. If you could just do that. Make them an offer over their cost. Then try and figure out their cost.....tough one. Have em show you their invoice from the manufacturer. If you could find a wet model you like. or an unwrapped one that the dealer needs to push at year end.

[rosewoodsteel]

No other thoughts on MSRP and actual cost for a SPA?
What is the least amount off of the MSRP that you would sell a quality Spa for, Say a Sundance Maxus?

[hottubdan]

No other thoughts on MSRP and actual cost for a SPA?
What is the least amount off of the MSRP that you would sell a quality Spa for, Say a Sundance Maxus?

Ignore MSRP.  It may or may not mean anything.  It may or may not be related to cost.

[rosewoodsteel]

So, how does a consumer know where his starting point is when there is no constant?  For that matter, how do dealers price tubs?   Do they just grab a price from the thin air and charge folks that price?   
I know we have a lot of dealers here that could chime in on this.   Bueller?

Bueller?
 

[Tman122]

A dealer with high overheads will sell for more than a dealer with low overheads. Things like shipping costs, inventory, staff and other things determine where the dealer has to be over cost. I am sure the manufacturers make their recommendations to the dealers but I would bet none of them use it.

[Jacuzzi Jim]

 Being at the Seahawks game on Monday and paying 8 bucks for a plastic cup of beer    I wonder what the stadiums cost on a keg is.  That's some profit there!! 

[Hottubguy]

So, how does a consumer know where his starting point is when there is no constant?  For that matter, how do dealers price tubs?   Do they just grab a price from the thin air and charge folks that price?   
I know we have a lot of dealers here that could chime in on this.   Bueller?

Bueller?

I price tubs the same way I price everything else.  There are certain fixed costs I need to cover, be it commisions, rent, insurances, salaries, shipping, utilities and my own salary.  Plus you need to take into affect that we are covering these tubs for 5 years in the field at very little compensation from the factories.  When I add that all in that gives me an idea of what I need to make on the tub to stay in business.  Then I add something to that to actually make a profit.  Some popular tubs I get close to MSRP others I sell way under MSRP.  I get as much for my tubs as the market let's me.  In my area I compete with Hot Springs, Sundance, Jacuzzi, Hydropool and Master so because of the choices afforded to the consumer we half to be competitive.  Shop multiple brands that should give you an idea of what quality tubs go for in your area.  Looks like you are looking at Sundance so visit a Jacuzzi, Marquis, Hot Springs, Dimension dealers to get an idea what the same size tub is going for.  There must be one of those brands in your area

[Hottubguy]

Being at the Seahawks game on Monday and paying 8 bucks for a plastic cup of beer    I wonder what the stadiums cost on a keg is.  That's some profit there!!

I'm a Patriots season ticket holder and the noise that stadium generates makes Gillette stadium seem like you are in a library.  One of the things I want to do is attend a game out there at some point

[Dr. Spa™ Ret.]

Jeez...you guys are cheap. I pay $12, and it's a paper cup. Prolly going up next year, in the new stadium.

Being at the Seahawks game on Monday and paying 8 bucks for a plastic cup of beer    I wonder what the stadiums cost on a keg is.  That's some profit there!! 

[Jacuzzi Jim]

Being at the Seahawks game on Monday and paying 8 bucks for a plastic cup of beer    I wonder what the stadiums cost on a keg is.  That's some profit there!!

I'm a Patriots season ticket holder and the noise that stadium generates makes Gillette stadium seem like you are in a library.  One of the things I want to do is attend a game out there at some point

  Yeah it's pretty awesome!   My FIL has season tickets so I have been to quite a few games.. Can't wait for the playoffs   

[rosewoodsteel]

Ok, I see that at least a few dealers care to address this without going into their night club routines. (By the way, don't quit your day jobs. .
Let's change pace a bit.   I understand a dealer's need to cover their overhead and maintain a profit margin.  Fair enough.
But what about a factory that doesn't have dealer representation in an area.  How much over their MSRP should they charge a customer for an internet sale?   
Thanks again for your input.   

[Hottubguy]

Ok, I see that at least a few dealers care to address this without going into their night club routines. (By the way, don't quit your day jobs. .
Let's change pace a bit.   I understand a dealer's need to cover their overhead and maintain a profit margin.  Fair enough.
But what about a factory that doesn't have dealer representation in an area.  How much over their MSRP should they charge a customer for an internet sale?   
Thanks again for your input.   

They will probably charge you full msrp. Problem with doing this is you will probably okay too much then what happens if there are problems under warranty?  Who fixes the tub?  What brands are local to you?

[rosewoodsteel]

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.)

[Jacuzzi Jim]

 Not sure you are going to get what you are digging for..  Like Tman122 said it can vary across the board.    I had a guy come in today looking for an igniter for his pellet stove.   Our cost from the mnfg with shipping is 27 dollars, the price for the igniter is 40 bucks plus tax.   He said he found one on line for 30.   He said if I match the internet price and he would buy it.   WTF should we only make 3 dollars on a part that cost us 27?   I didn't do it and he left..   I don't own the business, but we also have over 60 employees that need to get paid.  Granted that part is a drop in the bucket to the company, but if we ran everything like that we wouldn't be around long and they have been around for over 40 years.    Spa's are maybe 10% of the overall business and sure we could sell them at a lesser markup but why?  You can't have all the other of our divisions carrying the spa dept. just to sell spa's.