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Fixed Cost
Can you expand on that a little more?
i think there are several reasons for the difference, some mentioned above. we also live in a capitalist society (this is a GOOD THING) a dealer has to make money to stay open and provide service. if he undercharges, he goes bankrupt. if he overcharges, no/ low sales, and he could still go bankrupt.every market is different. for example: i have a 15 year old, 2200 sq ft house on a quarter acre lot, in va beach. houses in my neighborhood sell for $250-300k. several months ago, almost moved to ga(just 21 miles north of atlanta) and could have bought new construction, 3/4 acre lot, 3500 sq ft home with 1600 sq ft walk out basement (total just over 5000 sq ft) for $325k.you pay what the market will bear, which is often dependent on where you live...
Your house would be worth a million in Orange county. Not the same analogy. A Maxxus is the same in Va or Ga or Mi or Ca. I don't see how fixed costs warrant a $2000 per unit diference, $500- $800 maybe. But I don't sell spas for a living, so I defer to those that do.
to a point i agree, housing is more subjective.better example. i bought a conversion van last october. i wound up buying it thru an i-net site that specializes in hightop vans. the conversion company is quality coach in indiana. they have an authorized dealer here in my area (with in 22 miles) the local dealer wanted $3,680 MORE for the exact same unit that i got thru a dealer in indiana. i paid $565 to have it shipped here to my office, so the net difference was, i saved $3,115, again, on the exact same new vehicle. the dealer in indiana isn't santa claus, i know they made some money off the deal, and more power to them. i felt i got a good value for my moneyi am not a spa dealer, so i dont know what the mark up is. ther are some fixed costs, and some variable, depending on dealer volume, their shipping costs, etc.... but i strongly agree with the above statement, ITS A FREE MARKET. pricing is largely dictated by what the market will bear.i'm sure you COULD build a tub that seats 12-15, has 6 5-horse pumps, 150 jets, motorized cover, 50" flat screen tv, stereo,a cappucino maker, blender and waterproof wireless i-net mouse and keyboard.but who would buy a $25k hot tub?? you know.... it may not be that hard to add i-net access to your tub (assuming you have a tv already there, and cable). i wonder if any one makes a waterproof keyboard and mouse?
as to my van, there are 9 chevy dealers with in 35 miles of my home. where i have my service done is not even the dealer that sells quality coach conversions. chevy warrantees the chevy van, and gm corp pays the dealer for service work done, no matter if the dealer is here or anywhere else. quality coach has their own 3 yr warrantee on the conversion package. they will pay any chevy dealer for work required. (they already did once on my van, and i had no problems with them at all).part of my decision was to buy from a conversion van company with a great reputation for service and longevity in the biz. very similar to my hot tub search. i went to the dealer here that sells QC vans, and showed him the quote from the IN dealer, and the estimate for shipping. tried to work out a deal. he said no. his price is his price, take it or leave it. thats how a free market works. in this case i left it and bought the exact same thing (not similar, but exact) thru another dealer for a LOT less. as i work hard for my money, and i would assume everyone else does, i dont see why i should throw away $3k for no reason???HOWEVER, as they are nowhere near as many tub dealers as there are chevy dealers, so its a different ballgame. if you read back thru my earlier posts, you will see very clearly that i was at one point looking to buy tub online. as service is and will be an ongoing issue, i purchased locally from a rep. dealer, and strongly encourage others to do the same.on that note....HEY DEALER FOLKS. how does it work for you guys as far as servicing a brand you sell, but not an actual tub you sold? if its valid warrantee work, doesn't the maker pay you the same as if you sold it from your store? do you treat them differently? i notice chas is looking for a source for sundance parts, i dont think he even sells that line, but he is servicing them anyway. your thoughts?before we get to much farther off track......i still stand by my original statement. how much you pay can/is based on where you live and what your local market is like. AND IT SHOULD BE! healthy competition, for the most part, keeps everything balanced. if the michigan market is charging an average of $2000 more than the arizona market, and people are paying the price, as long as they do, the prices will stay the same..... sounds like they need a dose of competition....
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Topic: Prices around the country (Read 16242 times)
