Wow, Hot Spring Highlife selling at Costco.

[East_TX_Spa]

They are selling what?  In the store or the parking lot?

He was kidding.  It was a Ham Sandwich.

Terminator

[TN__HOT_TUB]

I'm a little more optimistic.

You have to think of things on a % basis.  Afterall, my grandmother thought she'd see folks paying $40,000 for a house (not to mention a car).

If anything, our economy has proved resilient.

I think the economy is really in trouble by the way things are going. Housing has flattened out and in some markets are receeding. People who bought housing with "special financing" are in trouble of losing their homes.

Gas prices, oil prices, electricity and natural gas prices are going up in an alarming rate... soon food and clothing prices will be going up because of this.

People pay more for their benefits which are being cut down.

Little by little these take their toll and the quality of life goes down. As far as the economy, who's buying a luxury item when you need to eat? How may people can afford a $400,000 or more house? How does a young couple starting out afford a $1300/month rent and save. How do people with children take them to the doctors and pay the copay + whatever their deductable is?

Yep, we're in for some hard times ...

[Wisoki]

Resilient, hell, growing!The national unemployment rate dropped to 4.7. It's lowest in 4.5 yrs. Statistics provided by the U.S. Dept. of Labor. Not used by permission, hmm could I go to jail for that?

I'm a little more optimistic.

You have to think of things on a % basis.  Afterall, my grandmother thought she'd see folks paying $40,000 for a house (not to mention a car).

If anything, our economy has proved resilient.

[Vinny]

Resilient, hell, growing!The national unemployment rate dropped to 4.7. It's lowest in 4.5 yrs. Statistics provided by the U.S. Dept. of Labor. Not used by permission, hmm could I go to jail for that?

They use armed forces figures when they have to. Also, they include things like people close to minimum wage ... how many people can afford things IF they make minimum wage. That was the big joke when Quail was VP ... he walked into McD's and proclaimed  'look, there are jobs available'. Yep, for $5.35 an hour!

Here in NJ there was a huge housing market that started in 2000, which is when I sold and bought my houses. I found one that I paid $200K for that's worth about $380K (or at least was) and I sold a 2 bedroom townhouse at a loss for $129K and it was selling for $295K last year.

There was a report on MSN Money about people buying houses with special financing deals to be able to pay for the house that are expiring soon. They got interest rates as low as 1% (teaser rates) and paid a lot of money for the house. Now their houses are starting to be worth less and the thought is if they fall below a certain threshold, they'll have to pony up some more money AND as the teaser rate expires, their mortgage will be going up tremendously ($800 per month).

Auto plants are closing up all over ... these people may not be able to find jobs.

The economy may be robust in some areas but it definately is flatening out or getting worse in others.

[grahamtasia]

Thats why HotSpring selling the Highlife over the internet is a terrible idea!

[East_TX_Spa]

I just received a transmission from the Mother Ship that dealer compliance is now over 90%.  That is all.

Terminator

[Anoroc]

I just received a transmission from the Mother Ship that dealer compliance is now over 90%.  That is all.

Terminator

Sound kind of like a cult

[Wisoki]

Truer words never spoken.

I just received a transmission from the Mother Ship

Terminator

[J._McD]

I just received a transmission from the Mother Ship that dealer compliance is now over 90%.  That is all.

Terminator

East Tx is the front man and he keeps stirring the stew with funnies, but when he made a not so nice remark about his step-sister brand, Caldera, he announced that he got word from the "mothership" that he shouldno't do that..  They apparently have a direct line access and are undoubtdedly experiencing some feedback.

As he said, "there is a bigger plan", but, to use his own words, he is"just a salesman", he doesn't really grasp or understand the ramifications of what is going on and only wants to make a joke out of it.  After all is said and done, he can go sell pick up trucks any time he wants to because he is "just a salesman", but in the meantime he is a devout, kool-aide drinking, HS salesman that communicates with the "mothership" and guards the front gate to the cult complex.  

Anoroc, you are begining to understand.  Now you should tell all HS the people that are trying to help you to send out one of those Highlife units "made by the maker of Hot Springs Spas", pay the difference between the $4,900 and the $5,699, and you should be happy in your new HS spa.  If you have the least bit of a problem, ask Costco to refund your money and go shopping again.  

The offer that you laid out does not seem to compare too well to the pricing represented by Costco, when you look at the differences for more than 9K.  Compare the Highlife to the Sovereign, determine the ratio of difference and apply that farmula to their offer.  

[Chas]

As he said, "there is a bigger plan", but, to use his own words, he is"just a salesman", he doesn't really grasp or understand the ramifications of what is going on and only wants to make a joke out of it.

[size=18]
Oh Yeah?!! [/size][/color]

[shabba34]

This is all hypothetical as well as estimations:

2006 Highlife spa from Costco Online:
$5,700.00

2006 Hotspring Sovereign from local dealer:
$7,700.00 (Estimate depending on location)

$2,000.00 Difference.  Why?

All estimates:

Waterfall:  $300.00
Stainless jet fittings:  $300.00
More filtraton:  $40.00
More Color Options:  $400.00 (Personal prefference)
Larger pump:  $300.00
CD Ozone System:  $400.00
Better Cover Lift:  $200.00
4 more YR of warranty(Including labor): $1,000-$1500
Proffesional Delivery incl.:  $200-$300
Etc...Etc...Etc...

Looks to have at least $3000.00 worth of differences(from a manufacturing standpoint).

Price goudging(spell)? [glb]I DON'T THINK SO![/glb]

[Wisoki]

So you are saying that since you've signed up to deliver these hot tubs, you are going to do it in an unprofessional maner?

Proffesional Delivery incl.:  $200-$300

[stuart]

pkud,
All of the things you mention are potentially justifications for price differences however the average Joe won't care. Here is my opinion of what most people will think

2006 Hotspring Sovereign from loc
Waterfall:  $300.00
Stainless jet fittings:  $300.00
More Color Options:  $400.00 (Personal prefference)

"Cool but not worth the dramatic price difference...After all it's the same spa for the most part and I'm saving a ton of money for the same quality so who cares about the bling..."

Better Cover Lift:  $200.00
Larger pump:  $300.00
CD Ozone System:  $400.00

"I can always add these things later on if I need to after I pay for the spa....."[/i]

More filtraton:  $40.00
4 more YR of warranty(Including labor): $1,000-$1500
Proffesional Delivery incl.:  $200-$300
Etc...Etc...Etc...

"I'm gonna buy one of those better filters just as soon as I get the spa home."

"The guy at the dealership said HotSpring makes very reliable spas so I don't mind less warranty for the price. Besides, he also told me that these where pretty easy to work on."

"I can buy a case of beer and get 6 of my friends to help put it in the back yard...how hard can it be, they said they do it with 2 guys!?"[/i]

Looks to have at least $3000.00 worth of differences(from a manufacturing standpoint).

Price goudging(spell)? [glb]I DON'T THINK SO![/glb]

I wouldn't call it price gouging, I would call it crippling the dealer.

IMO, knowing first hand some of the issues, questions and concerns customers have I think that having a good dealer on your side is worth most of that price difference regardless of the other things but most customers don't understand that until they own a spa for a few years.

What HotSpring has effectively done is to make the salesman’s job a whole lot harder by now getting them to justify their own product upgrades against a mega store with "deal" written all over it while making that salesperson believe that it's for their good.

How much commission do you feel the salespeople at the local dealers will receive when the dealer gets their $700 $1000? I promise that over 60% of the people that buy that Costco spa will take up an hour or two of "selling" time from these salespeople before buying at Costco.

If I were a HotSpring dealer I would personally be concerned over the issues that will arise here plus if the dealership gets involved, get paid and the customer decides to take the spa back to costco under their return policy does the dealer get charged back for their part?

If I where a HotSprings salesperson I would be even more concerned over the extra work I would have to do to help these people justify their "box store" purchase for no commision.

[Vinny]

pkud,
All of the things you mention are potentially justifications for price differences however the average Joe won't care. Here is my opinion of what most people will think
 
"Cool but not worth the dramatic price difference...After all it's the same spa for the most part and I'm saving a ton of money for the same quality so who cares about the bling..."
 
"I can always add these things later on if I need to after I pay for the spa....."[/i]
 
"I'm gonna buy one of those better filters just as soon as I get the spa home."

"The guy at the dealership said HotSpring makes very reliable spas so I don't mind less warranty for the price. Besides, he also told me that these where pretty easy to work on."

"I can buy a case of beer and get 6 of my friends to help put it in the back yard...how hard can it be, they said they do it with 2 guys!?"[/i]
I wouldn't call it price gouging, I would call it crippling the dealer.

IMO, knowing first hand some of the issues, questions and concerns customers have I think that having a good dealer on your side is worth most of that price difference regardless of the other things but most customers don't understand that until they own a spa for a few years.

What HotSpring has effectively done is to make the salesman’s job a whole lot harder by now getting them to justify their own product upgrades against a mega store with "deal" written all over it while making that salesperson believe that it's for their good.

How much commission do you feel the salespeople at the local dealers will receive when the dealer gets their $700 $1000? I promise that over 60% of the people that buy that Costco spa will take up an hour or two of "selling" time from these salespeople before buying at Costco.

If I were a HotSpring dealer I would personally be concerned over the issues that will arise here plus if the dealership gets involved, get paid and the customer decides to take the spa back to costco under their return policy does the dealer get charged back for their part?

If I where a HotSprings salesperson I would be even more concerned over the extra work I would have to do to help these people justify their "box store" purchase for no commision.

What Stuart ... although I didn't come up with it!

[hottubdan]

I promise that over 60% of the people that buy that Costco spa will take up an hour or two of "selling" time from these salespeople before buying at Costco.
.

If we get a shot at 60% of the people buying from Costco, and if we, as salespeople, are as good as we think we are, then we will convert some of them to our products.  I have the Classic Sovereign, which is much closer to the Highlife, that I can come much closer to in price with more features (ozone, better lift) and better warranty.  I can move them up and down in price, size, features, etc.