Wow, Hot Spring Highlife selling at Costco.

[hottub.pool_boy]

Hotspring got its first real kick start in early 80's with their FIRST mass merchant program. We were apart of that program with the two Home Centers my family owned. In 89' they canned the program and forced us to open a seperate store. They said we'd sell more. They were right.

Say what you will, it's more market share. Everyone guns for #1.

Will it be good? Time will tell. There's only a handful of States where Costco sells most of the spas.

The spa is only as good as the dealer or outfit you buy from. I feel for Anorac, but it's a dealer issue. Maybe they need to send their techs to the service school I'm sending mine to next week in Cali.

[Wisoki]

I'm guessing you signed up to be a delivery service for the CostCo. Hot Spring. Good luck with that $700 credit you can appply to future parts purchases. Sorry, I think it's a bad move any way you look at it. Between the lines in your post YOU say as much.

Hotspring got its first real kick start in early 80's with their FIRST mass merchant program. We were apart of that program with the two Home Centers my family owned. In 89' they canned the program and forced us to open a seperate store. They said we'd sell more. They were right.

Say what you will, it's more market share. Everyone guns for #1.
 
Will it be good? Time will tell. There's only a handful of States where Costco sells most of the spas.

The spa is only as good as the dealer or outfit you buy from. I feel for Anorac, but it's a dealer issue. Maybe they need to send their techs to the service school I'm sending mine to next week in Cali.

[J._McD]

Wisocki is right, there is a message between these lines...

Hotspring got its first real kick start in early 80's with their FIRST mass merchant program. We were apart of that program with the two Home Centers my family owned. In 89' they canned the program and forced us to open a seperate store. They said we'd sell more. They were right

They forced the issue then and the "family owned" business's are fewer today as the "bigger" sellers are the "way of the future"  But, The dealer will always be needed to please.

.....Say what you will, it's more market share. Everyone guns for #1.
 
Will it be good? Time will tell. There's only a handful of States where Costco sells most of the spas.

The spa is only as good as the dealer or outfit you buy from. I feel for Anorac, but it's a dealer issue. Maybe they need to send their techs to the service school I'm sending mine to next week in Cali.

Who wants to be #1, when there can only be ONE.  We all want to be GOOD.

Is this a sign of things to come afters the '80's and the '90's.  Small business and Family business are deeply imbedded in this industry and this bypasses both "small" and "family" in the name of MORE business.  

Can you possibly please all of those who will come to you with issues.  They may be few and infrequent at first, and maybe not.  

IF Anoroc bought from the internet, maybe he wouldn't have the problem he has, without recourse.

[Vinny]

I'm wondering if Costco is the test market for Masco. Remember they have a ton of stuff in HD and probably at Lowes and who knows who else.

Masco manufactures Delta Faucets, Mills Pride cabinets and more. Here's their link: http://www.masco.com/our_companies/index.html

Maybe Costco sells "makers of HS" but when will HD sell "makers of Caldera".

Stuart said it best with his Vermont Castings story. Anyone who thinks that corporate America (especially huge corporate America) cares about anybody is mistaken.

I bought my Delta faucet from HD, bought Mills Pride cabinets because they looked the same as the local supply house's Kraft Made cabinets (which HD sells too) at a fraction of the cost. ($100 linear ft vs $550 linear ft). I do buy my floors from a floor store only because I don't like what big box has to offer.

If it were me, I wouldn't embrace this as a great thing. Yes, you might make money on the service end but I probably would be looking for another line to sell and kick HS out of my dealership.

Remember Unions came into power because of what Mr. CEO did to the worker ... this is a modern day version.

[Bonibelle]

Vinny, Kraftmaid is also a MASCO product. They are a huge company and I'l bet that they are behind pushing Watkins products to Costco and who knows where else.
My take is either like Stuart has found out, people will associate the name with the product and say so what if I don't have as long a warranty, I can save enough buying at Costco to buy another tub in a couple of years (if I need or want to) OR they could associate the Costco offerings with the other lower end generic tubs that Walmart and Lowes and HD offer and that would pull the  Hot Springs name down  into that group. If you didn't know all that you do about hot tubs (so much I learned here) wouldn't you be inclined to take a chance on a Costco tub? I probably would have because of the association with the Hot Springs name.

[Vinny]

I was going to buy one from HD until I started researhing and realize that they aren't the same tubs. A friend of mine has a friend who bougt a HD tub and it cost them over $100 a month to run 4 years ago.

I knew Kraft Maid is a Masco company, as is another "high end" cabinet maker. Most people know nothing about what they buy, they don't research or care to know the details. I go to HD or Lowes and see a John Deere' lawn tractor and think 'WOW, it's a John Deere.

I agree 100% with everything you said!

[Bonibelle]

So I am not going to comment on my  monthly cost for my tub    I would be happy with $100.00 :-/

[shabba34]

Watkins MFG:

Nearly 900 dealers

50+ countries

50,000 spas sold every year.

Logically, would you believe that Watkins would put there entire dealer network at risk with a hasty business decision  All the Monday morning Quarterbacks need to just relax, and let the "Machine", ie: Watkins, do it's thing.  Everyone saying wait for this to happen, and wait for that to happen....Yeah, I'm still waiting to see JA take down Watkins for the past 6 years.  

It won't affect me either way.  Florida is not one of the 10 states that generate 80% of the business that Costco Online spa sales come from.

As dealer speaking to dealer:  If the presence of a HS product at "Costco Online" will effect me the way some of you are claiming, then due to HS being in direct competition with everyone of you, we are all at risk.

[Bonibelle]

I don't know this for a fact, but I bet this decision came from MASCO and probably was not particularly well recieved by Watkins. That is usually what happens. Someone at the top who decides to take a chance or who has a different vision in marketing makes this kind of decision. OR it could have been tied to the marketing of another unrelated MASCO product through Costco and somehow the spa business became part of the deal.
I just don't know why they want to mess with success...I could understand better if HS wasn't already at the top :-/

[shabba34]

I preface this with I don't know either, but how do you know they are messing with success?  There has to be some sort of evolution for any business to continue competing with what's out there.

[Vinny]

I have no way of knowing either about the master plan of HS or more importantly Masco. The CEO of HS DOES answer to the CEO of Masco and anyone who thinks otherwise is wrong.

As far as destroying a dealer network, stupider decisions have been made by CEO's ... Enron for instance. If anyone thinks that the Masco Corp cares one bit about it's HS dealers - your wrong. Heck big corporations don't even care about their own employees - goodby pensions, 2% raises and paying more for benefits while the CEO's enjoy who knows what.

It's all about how much money they can suck out of people's pockets.  50,000 tubs a year is great BUT 50,000 tubs a year without a warranty is even better and if they can have one of their own techs repair it - no profit sharing.

The US Auto Worker is down and out because of corporate greed - move plants down to Mexico, increase profits and blame the worker. A $35 per hour worker gets the shaft due to a $200 per week worker takes his or her place ... how many cars does that person buy?

[Bonibelle]

And I guess I look at it from an association perspective.
I associate the name Hot Springs with quality and the lion share of the spa market. When someone asks me about my tub, I will tell them I think it is the best, but there are also HS, Artesian, Sundance..etc. I wouldn't say go to Walmart or Lowes because you can do just as well. But I could say go to Costco and pick up a Hot Springs, take a chance that the same quality that has made it #1 in the industry was built into the tub that you will pay $$$$less for. Just like what Stuart said about the wood stoves. Just like I may buy a Kenmore dishwasher knowing that this year Whirlpool manufactured it for Sears and it is less expensive than the similar Whirlpool product. I am talking about consumer perception and the gadzillions of folks that don't research what they buy. My neighbor is looking for a tub for therapy. He is not a big spender, he is a farmer who has a lot of physical pain. I would feel confortable telling him to try the Costco spa because it is affordable and the company that makes it is the world's biggest, but he won't be paying top dollar.

If on the other hand, a consumer looks at the costco tub and says I need a bigger tub, he may go look at a HD dealer (or any other for that matter) or assume that the bigger tub at Costco will be on the same quality line as the HS offering.

I guess I am just giving you an Idea of how I think as a consumer. We all know how difficult the decisioin on which hot tub buy can be.

[grahamtasia]

As a HotSpring salesman,  I do not like the idea of selling the Highlife over the internet. I don't mind losing a sale to Sundance, D-1 and Marquis (my only true competition). That is gonna happen. Losing a sale because I am competing with my own brand is a mess.  HotSprings is a great spa and probably one of the "easiest" leisure items to sell. Buying a Watkins tub really is a no-brainer. Watkins is dropping the ball on this one. This spa will sell extremely well. In the near future I can see them selling the whole Watkins discontinued line, Classic-D, Landmark, Siberian, etc.. I hope my company refuses to be an authorized dealer.

[drewstar]

I don't think anyone can go to Costco and pick up the tub.

Isn't only being sold via Costco's internet site? All deliveries are made to the house, and I thought they would point you to a dealer if you needed service, no?

Dingberry Jim rambled how if a costco was next to a HS dealer, the dealer would wither.  But I was under the impression that the tubs wouldn't even be in the store?

I would think that HS would consider selling direct via the net,  but I would think this might violate the dealers agreement, So HS is using Costco's (A Masco partner)  internet and inverntory centers to sell without violating the dealers agreement....

?

[Anoroc]

I just came back from Sam's and they are sellling the HS.