Big shock for me (Dynasty)

[Steve]

I'm guessing there's a little more to it. Manufacturers don't pull the plug on a viable dealer that pays his account or is trying to.

Regardless, it's tough to read a story like that... :-/

Steve

[J._McD]

I'm guessing there's a little more to it. Manufacturers don't pull the plug on a viable dealer that pays his account or is trying to.

Regardless, it's tough to read a story like that... :-/

Steve

Yes they do, It happened in Chicago Metro area when a major manufacturer terminated several "mom and pop" dealerships to sell to a larger chain of stores, and again in Ohio.  

This industry is not about people, it's about numbers.

[wmccall]

Unfortunately, this is a HARD lesson to learn:

IF YOU PAID BY CREDIT OR DEBIT CARD:  Please contact your issuing bank to apply for what is known as a "chargeback".  (That is unless you still want to get your spa)

IF YOU PAID BY CHECK OR OTHER MEANS: Please be patient.  We are still working very hard for you, and will do everything we can to make sure your order is fulfilled.

Newbies considering a spa: ALWAYS use a credit card unless you are willing to take a risk...

Drewski

 :-/

When I bought my tub in '03, they only asked for 10% deposit and the rest due upon delivery.

[J._McD]

When I bought my tub in '03, they only asked for 10% deposit and the rest due upon delivery.

Not to create fear in the minds of all of our lurking shoppers, but it does no good to use a credit card and expect to request a "chargeback" if there is no money in the account.

It would be suggested that you apply a minimum deposit with the balance due upon delivery.  Life is full of risk and change.  It is virtually impossible to anticipate the future.  

It appears that anyone wanting to get into Hot Water should go shopping ready to make a decision, buy a floor model, pick it up or have it delivered right away, and sit back in your bubbling tub and count the stars every night rather than worry about the anticipation of risk.

[SDguy]

  That's really unfortunate for a lot of people. Sad story...

I couldn't fathom waiting 4 months for a spa. In cases where the customer just isn't ready for delivery, I understand.

If things go smooth, it's normally 2months and the spa is deliverred, hooked up, running, and customer is indo'd.

[Steve]

Yes they do, It happened in Chicago Metro area when a major manufacturer terminated several "mom and pop" dealerships to sell to a larger chain of stores, and again in Ohio.  

This industry is not about people, it's about numbers.

Let me try again...
I'm guessing there's a little more to it. Reputable Manufacturers don't pull the plug on a viable dealer that pays his account or is trying to 99.9% of the time.  

Regardless, it's tough to read a story like that...  

Steve




Better?

P.S. That's one dark and gloomy outlook you have there McD. :-/

[drewstar]

Not to create fear in the minds of all of our lurking shoppers, but it does no good to use a credit card and expect to request a "chargeback" if there is no money in the account.

It would be suggested that you apply a minimum deposit with the balance due upon delivery.  Life is full of risk and change.  It is virtually impossible to anticipate the future.  

It appears that anyone wanting to get into Hot Water should go shopping ready to make a decision, buy a floor model, pick it up or have it delivered right away, and sit back in your bubbling tub and count the stars every night rather than worry about the anticipation of risk.

J_McD,

If I put the spa on my credit card, and the spa is not delliverd, I am under the impression that I will be remimbursed for the charge through the Credit Card company. (who will then try to get the $$) from the dealer.
No? Doens't  it work like fraud protection?  

[Gary1911]

Yes they do, It happened in Chicago Metro area when a major manufacturer terminated several "mom and pop" dealerships to sell to a larger chain of stores, and again in Ohio.  

This industry is not about people, it's about numbers.

It's not just the Spa industry it's ALL about #'s. The manufacturers care about nothing more than the numbers. period!  Home Depot, WalMart, etc they are all the same CRUSH THE COMPETITION.  It happens and will continue to happen across the country.

There is more to the story, we will wait for more info.



Gary

[JJ]

My dealer uses a reputable finance company (Wells Fargo) to arrange financing for its customers.  They handled the whole thing.  I assume the finance company would not transfer the funds to the dealer unless they were reasonably sure of their financial stability.  Is that a bad assumption?

Also, would the finance compay come after the customer or the dealer if the tub never got delievered?

[wmccall]

Home Depot, WalMart, etc they are all the same CRUSH THE COMPETITION.  It happens and will continue to happen across the country.

Gary

Add Lowes to that list, I just put my 2 weeks notice in at the company I work for that is a Lowe's supplier.  Lowe's cost us 75 jobs this year to increase thier profits while keeping the consumer cost the same.

[wmccall]

My dealer uses a reputable finance company (Wells Fargo) to arrange financing for its customers.  

I will accept your experience and word that Well's fargo is a reputable company, but they are on my do not use list.  A while ago I tried a new cell phone carrier with their 2 week "no risk trial"  After deciding I wasn't going to keep the phone, I started filling out forms at those websites that sent me spam saying I was preapproved for $300k at 3%.  I used the cell phone number for that trial phone and I started getting all these calls from Wells Fargo.  So I know who spammers sell thier leads to.

[Wisoki]

Most dealers, unless they are amazingly liquid, use a floor plan company. Usualy Textron or Transamerica. The dealer places the order for the spas with the MFG. The MFG. verifies available credit with the financial co. and gets an authorization no. The MFG goes into production based on that authorization. the tubs come out of production and get shipped to the retailer. Once invoiced by the MFG, the financial co. THEN gives the payment to the MFG. As the dealership sells their spas they pay the financial co. for them, either when sold or upon floor check.

The thing I see is if this dealer were in their transitional phase of closing one floor plan account in favor of a better interest rate and terms, but neglected to tell the MFG and submitted an order, the only thing the MFG is going to see is the inability to get the tubs financed. My guess is lack of comunication on both sides.

Side note, in this months Pool and Spa News, Dynasty took out a full page add stating that "due to their unprecidented growth this year, they are not accepting any new dealer applications so they can focus on product r&d." To me...this sounds a little fishy.

All manufacturers I'm familiar with require payment in full before order goes into production.

[J._McD]

My dealer uses a reputable finance company (Wells Fargo) to arrange financing for its customers.  They handled the whole thing.  I assume the finance company would not transfer the funds to the dealer unless they were reasonably sure of their financial stability.  Is that a bad assumption?

Also, would the finance compay come after the customer or the dealer if the tub never got delievered?

The dealer does not get funds deposited to his account from the finance company until the purchaser signs a delivery acceptance form approving delivery of the goods thus, completing the transaction.

J_McD,
If I put the spa on my credit card, and the spa is not delliverd, I am under the impression that I will be remimbursed for the charge through the Credit Card company. (who will then try to get the $$) from the dealer.
No? Doens't  it work like fraud protection?  

Drew, you could be right, my first thought was charging back to a closed account, thus no funds.  I believe the credit card company would pursue it as a fraudulent transaction.

Let me try again...
I'm guessing there's a little more to it. Reputable Manufacturers don't pull the plug on a viable dealer that pays his account or is trying to 99.9% of the time.  
Regardless, it's tough to read a story like that...  
 
Steve
Better?
P.S. That's one dark and gloomy outlook you have there McD. :-/

Not to repeat myself, but it was a very large “reputable” manufacturer known to be in the top of our industry that did exactly what I said.  And they were “viable” dealers that paid their bills.  They just did not renew their annually renewable selling agreement and replaced them with a new account with a large chain of stores resulting in more units sold.  Yes, it would be a dark and gloomy outlook to have that happen.

The details of the Dynasty dealer situation are not known to us here as of yet and there are always two sides to every story, and I would imagine everyone has considered a myriad of different scenarios.  But, to read what is posted is a devastating thing to any dealer.  I would be very interested to know along with all of you what brought this situation about.

[hbcpa]

Sorry to hear about your problem. When I bought my HS Vanguard the dealer didn't even ask me for a deposit. We paid in full when it was delivered and set up. I live in Jacksonville, FL and the HS dealer has been here a long time and has a great reputation. Hope all works out

[mountainspa]

Side note, in this months Pool and Spa News, Dynasty took out a full page add stating that "due to their unprecidented growth this year, they are not accepting any new dealer applications so they can focus on product r&d." To me...this sounds a little fishy.

Dynasty was named by Lucite International as the Fastest Growing Spa Manufacturer in 2005 (based on market research studies conducted by Lucite).

We received a letter from Dynasty recently detailing the changes they are making to handle this growth.  They did mention taking out the ad in Pool & Spa News...the decision to not allow new dealers this year is based on the ability to meet the needs of existing dealers (who made the growth and expansion possible).  They have made major investments in people, processes and structures as well as considerable monetary investment.

Hope that takes away some of the fish smell...  

Bretta