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I honestly believe you will find the mark-up is at 100%. I would say a $7000 tub actually has a dealer cost of around $3500. From my experience in car stereo, and other electronics, the markup ranged from 100-150%. I know for a fact that my spa dealer marks up all accessories at least 100%. He sold me a few extras, and upgrades at cost, and they were 50% of his asking price and less. I know his asking prices were competitive, because the only place I found cheaper was spadepot.com, and there price was in the ballpark.
Well said.
I honestly believe you will find the mark-up is at 100%. I would say a $7000 tub actually has a dealer cost of around $3500. From my experience in car stereo, and other electronics, the markup ranged from 100-150%.
Okies Dazed and Confused, one of the main reasons I wrote this entire diatribe was to try to help you and others with price anxiety. I see it was futile in your case I know we've argued the point before, but Im telling ya the average size spa dealer HAS TO make at LEAST 35% profit on a tub or they will go out of business. Dang it all to hell I know I am right here, would one dealer PLEASE back me up on this. If you GOTTA know what the real cost from the factory is divide the price you paid by 35%. Ill bet you a buck Im right + or - 10%I asked Steve a few months ago when he was selling spas if he would sell me a Spa that cost HIM $5000 for $6500 (30%). He EMPHATICALLY stated NO!If you cannot or refuse to comprehend what I am trying to tell you here , you will never own a tub IMHO.
It is L Tank. L for Luke. I'm not crying, I ordered my Caldera 7/31/04. I don't know where you're talking about competition. In my area there are only 3 dealers that carry premium brands. Other than those guys I would have to travel over 100 miles,and that is not a local dealer. There's no way these guys around here could stay in business at 35% markup. They don't do enough business. I will believe it is 100% percent mark-up until someone has the balls to tell me what the mark-up is.I'm happy with my purchase, the spa was worth what I was willing to pay. No more, No less. As long as people are willing to pay it, I don't care if mark-up is 500%.
What people need to remember is that industry is far too competitive to price themselves out in left field. (where dazed and Itank are playing catch I think)
I know the margins I have to maintain to keep my business open. I don't go below them or it ends up costing me money to work the deal. I know it sounds crazy, but the "margin" only becomes "profit" after ALL the bills are paid. And many of those bills are paychecks to people who depend upon my businesses to keep a roof over their heads.The biggest bills always go to the government of course, but don't get me started on that one....
Hey wait a minute, I pay roughly 25% in federal tax per year, that means I work every 5th year for free!!!!!
It I will believe it is 100% percent mark-up until someone has the balls to tell me what the mark-up is.I'm happy with my purchase, the spa was worth what I was willing to pay. No more, No less. As long as people are willing to pay it, I don't care if mark-up is 500%.