One thing dealers might not be clear about

[stuart]

Coleman had more than what we deemed acceptable at the time but that worked itself out. Beachcomber was the predominate company that did that which could have been a Rep issue but the people they set up as competitive dealers where everything from hearth products companies to furniture retailers that had no spa experience. Many people coming into the spa industry have dealt with products that had a much easier true margin to set and they do not always take into account all of the incidental costs involved in selling, delivering and servicing spas correctly. It has been the downfall of many in this area, if you don't make a true margin eventually you will no longer be able to afford to operate your business.

[wetone]

Some times a manufacture can put a dealer into a corner leaving the dealer no option but to drop them.

We were a Coast Mountain Spas franchise much like a Beachcomber. In three years we became one of there top five stores in volume, Canada & Europe. Coast Mountain Spas also builds an economy line of spas for the Rona chain (Canadian big box stores like home depot) in May of this year Rona bought out the Building Box, Coast Mountain Spas contract for economy spas tripled, they could not keep up, so they left ALL the dealers orders unfilled for 60 days then started extending delivery dates on orders in the system, all our order delivery dates got extended another 60 days,  waiting 4 month to get the spas, not an option, we brought in Artesian and D1 and had all the customer with orders come in, explained the situation, gave them the option of a full refund with interest or pick any spa from D1 or Artesian and have it in three weeks. They all choose higher priced replacements, got them in three weeks and everybody was extremely happy. Coast Mountain Spas came back 3 weeks ago asking for our business, we asked for a firm commitment in writing for reasonably delivery times, which they would not commit to. We no longer sell there spas, but service all there product under warranty which they support.

Coast Mountain Spas lost ALL of there dealers in Ontario this year because of the delivery problems.
Those dealers now sell Artesian & Coleman.

We also tell our customers that buy, if for what ever reason we ever stopped selling that brand we would still service the product with or with out the manufactures support.

[stuart]

we brought in Artesian and D1 and had all the customer with orders come in, explained the situation, gave them the option of a full refund with interest or pick any spa from D1 or Artesian and have it in three weeks.

What a very admirable thing to do!

[wmccall]

Random thought based on what some of you have said. Looking around Columbus, I don't know of a dealer in Columbus that carries a "main line" that others in the area do.  Despite being the largest city in Ohio, there are a couple of brands that aren't represented at all.  Its at least 50-60 miles out of town before you see any duplication.  Living in a larger city, I'm use to thinking 50 miles is too far for me to go for any major purchase, but I know some of you deal with dealers from further away.

There is some duplication on the lesser expensive models though.   One of the bigger stores in town carries Hot Springs and the Tiger River models, and they carry only the lower models of Cal and Viking, There is only one store carrying the whole Cal line.  

[Perk1]

Well, I purchased my HotSpring spa from a reputable dealer that had been(and still is) in business for over 20 years.  I bought my spa in Feb and in July I called them with general quesitons, only to find they dropped the line.  I was a little upset that this was not conveyed to me when i purchased the spa.  In hindsight, based on the deals they were offering, I am sure they knew they were dropping the line when they sold me the spa in Feb.  I still would have bought the spa but it would have been nice to know.

This dealer was approx 10 miles from my house.  When I questioned them about warranty work they referred me to the nearest Hot Spring dealer that was over 60 miles away.  I called this dealer and they assured me they would service me with no problems.  This made me feel better and I knew I was still backed by Watkins.  Within a month, the dealer that was over 60 miles away, opened a new store front selling HotSprings only 2 miles from my house.   I have been in the store several times and I have been treated just as if I had bought my spa from them  They are always professional, helpful, and courteous.  

I am not really sure what point I was trying to make here but I felt compelled to tell my 'dealer' story again.  Sorry to those who heard it all before...LOL

[stuart]

HotSpring is a line that most dealers would be nuts to drop and from the sounds of it the other dealer was bigger and representing the company better. It would be my bet that HS made that decision and needed to drop your dealer to let the other company open their new store...

[Wisoki]

Now that's what I call DEALER SUPPORT!

It would be my bet that HS made that decision and needed to drop your dealer to let the other company open their new store...

[stuart]

Now that's what I call DEALER SUPPORT!

I know that you were burned in a similar incident but you have to see the side of the Manufacture. They are in this to be successful and as long as a dealer is making every effort to give them the most that the region will produce I don't think most Manufactures would drop the little guy for a much larger dealer however, you and I both know that there are a lot of politics when dealing with the larger brands and you’d better cover your bases.

If you plan on selling a major brand in a high volume area you had better plan on giving everything you've got to be a major contender in the market or you will be replaced!

[East_TX_Spa]

Perk1,

Are you in Shreveport, perhaps?

This sounds exactly like what happened to enable our company to open our Shreveport store.  The local lawn mower shop was selling HS all over the south and not servicing their customers.  Watkins dropped them and asked us to open a store.  We have always taken care of HS customers whether they bought their spa from us or from another dealer.

Chris O.

[wmccall]

I am not really sure what point I was trying to make here but I felt compelled to tell my 'dealer' story again.  Sorry to those who heard it all before...LOL

Very approrpriate for this thread. Thanks.

[wetone]

A question just abit off topic.

How much power does a manufactures area rep. really have? Can he/she walk in to my store one day and say, there is a new dealer opening that want's to go excluve with the product, so your done? Taking into account my store is the largest in size and volume in the area and Service on every level has been top notch.

[HotTubMan]

A question just abit off topic.

How much power does a manufactures area rep. really have? Can he/she walk in to my store one day and say, there is a new dealer opening that want's to go excluve with the product, so your done? Taking into account my store is the largest in size and volume in the area and Service on every level has been top notch.

In Canada, yes, unless you have a contract. Even if they couldn't they could make you drop them through long shipping times, shipping errors etc.

[wetone]

Even if they couldn't they could make you drop them through long shipping times, shipping errors etc.

Would that not reflect very poorly on the manufactures product and image?

[HotTubMan]

YES

[Perk1]

Perk1,

Are you in Shreveport, perhaps?


Chris O.

No, actually I am in Southern NJ.  It was a very well established Niagara Pool dealer that carried both Master and HS.  When I went back recently looking at pool tables,I did inquire as to why they stopped selling the HS line.  They said they wanted to sell Master exclusively.  

The new dealer also has a store dedicated stictly to Hot Tubs while the previous dealer also sold pools/pool tables/foosball tables/etc. Not that it is bad to sell other things in your store but the sales staff at the new dealer really only have to 'know' spas.

Anyway, I think the bottom line is that as long as you have the backing of a 'major' manufacturer with a reputation for great customer service, then you will also have good dealer support.