Hotspring Flair, Caldera Makena

[heliguy]

Hey everyone.

I moved almost a year ago and left my bullfrog R7L behind. Today I reached out to the local dealer on prices on the Hotspring Flair and Caldera Makena and got pricing for 14-15k base. This seems high to me, I'm in the northeast US. I'm all about supporting local business and buying a quality tub with local service, but a 3-5k (I think) pandemic markup seems excessive. Thoughts?

[Hottubguy]

On the Makena it’s a bit higher then where we are at but prices have shot up considerably in the last 8-12 months. I have a feeling they are going up again.  Freight especially for people in northeast (I’m in Mass) have more then doubled this past year

[heliguy]

That's what I am concerned about... I can certainly wait another 6 months if it drives prices down. I'm ready to buy now, but paying a 30-40% markup is insane..... Curious what input others have

[castletonia]

That's what I am concerned about... I can certainly wait another 6 months if it drives prices down. I'm ready to buy now, but paying a 30-40% markup is insane..... Curious what input others have

Prices will probably never go back down.  Only thing that will change is your ability to successfully negotiate more.  Waiting another 6-9 months to purchase will only result in you paying more than you would have today and waiting another 9-12 months to get the hot tub you want.

[heliguy]

I don't really agree with that. You may have more insight than I do, depending on who you are, but I expect more tubs available on the second hand market in the next year to two, and demand for new tubs to drop as more of the nation opens back up. I understand that demand is crazy high right now, but the tub industry can't possibly survive with 30% markups in perpetuity when the products are available elsewhere.

That being said, I'm not looking for a 2009 price in 2021, I am however looking for a fair price.

[Hottubguy]

I don’t really agree with that at all. Maybe 3-4 years down the road but most manufacturers are booked well into 2022 already. I have tubs sold for 2022 already as well. What do you think a fair price on a Makena should be?  What options are included in the price?  Which cover lift and step?  Salt, music or any other options?  I will tell you if it’s doable or if you are crazy lol.

[castletonia]

Most of the price increases are on the manufacturer's side, not the retailer.  I've been in the industry 20 years, never have I seen a wholesale cost increase followed by a wholesale cost decrease later on.  Pricing trends will eventually stabilize and return to how it was pre-Covid where year over year costs will either remain the same or increase slightly (1-3%) but that is probably 2-3 years away.  As I said, your ability to negotiate will return then as well, which is the biggest difference when buying now vs 2 years ago.

You state 30-40% markups above what you think the hot tub should sell for.  Do you have 2019 or 2020 pre-covid quotes to back up that assumption?  Just because someone somewhere bought a hot tub for a specific price doesn't mean that is what the hot tub does or should sell for.  I'm in the midwest, I know for a fact that shipping alone to the east coast adds at least $300-$500 hundred to the wholesale cost above and beyond what mine is.  My wholesale cost today on Hot Spring and Caldera is about 10% higher than it was in 2019.  The cost of all accessories has gone up.  The cost of chemicals has gone up.  And, on top of all this, pricing is projected to increase again in the coming months and likely again for 2022. Then, all of this is not taking into account the cost of living and the cost of doing business in certain geographic areas. 

I don't know who your dealer is or how reputable they are so I will reserve judgement on their pricing structure.  As Hottubguy said, list exactly what is included with those prices because depending on what is included, those could be very good prices or not. 

I have had a few customers that have said to me they want to wait until fall or spring of next year to purchase because they believe things will return to normal.  I respect their opinion but I also state that that is not a likely scenario and that no one in the industry believes that.  I personally believe it will be 2023 at the earliest before production lead times are not ridiculous but even then, it won't be the 4-6 week lead time pre-covid.