Job Opening

[Gary]

Never heard that.  What is your source?

I read it in Pool & Spa News, maybe they were wrong.

[East_TX_Spa]

I read it in Pool & Spa News, maybe they were wrong.

I'd appreciate it if you could provide a link to the article, I'd like to read it.  Thanks!

Term

[Steve]

Guess again. The days of spa sales reps making 6 figures are well in the past. Most of them are paid a decent salarie and earn a 1.5-2% commission on their dealers performance. None the less, not bad work if you can get it. The pay ranges from high 50s to mid 80s. It must have been rough for them last year as industry figures estimate the hot tub market down from 25-40% depending on your market. Of course Chas and Chris are exempt from that since Watkins numbers never fluctuate more than .5-1%  

I think we sometimes throw figures around that aren't always totally accurate. There are so many variables and it varies greatly geographically. I've heard many different figures that is suppose to represent the spa industry at a glance but the fact remains that no one knows for sure. . Kinda like ozone and cost savings associated to it, I've heard the industry was down 5-25% overall but there has been no data to back it up.
 There is also a very wide variety of pay structures out there at any sales positions although I don't doubt the figures you have produced are from your own experience only. The difference is that it's a mighty big world.

I don't know of too many reps that make under 6 figures. If you're not making more than that, get out as you can't afford your position. Commonly, it takes $25,000- $45000 to properly service a territory in expenses alone. In my experience, base salaries are no more. This is a sales driven position where you are paid based on sales. As in any sales, a higher base lower commission generally equates to lack of motivation to sell and therefore any rep position I have heard of has a draw period which switches to straight commission after a given period of time. Mine was 8%.

This position can generate a great income in the right territory and with the right company. At even a 5 or 6% commission structure, a territory which creates 2 million+ dollars in sales (which is pretty good) provides a decent income. There's a great deal of travel and stress associated with it but for the right person with the right skill set, it's a good job.

Lastly, overall I do believe the industry sales figures overall were down in 2006 from previous years. That said, the GREAT dealers had a record year for the most part in my experience. The Beachcomber store I use to manage had its best year ever  in 2006 than in the previous 22 years. What does that tell you? (Other than they did better AFTER I left)  

This industry is saturated with retail companies and very few understand the key strategies of retail. There's so many that are just "in" the spa business but don't focus their attention on it as pools and service are where their main source of income are. Then at the end of the year, they question why sales are down for spas... The companies "playing" with spas (displaying less than 8 spas on the floor) are going to fall by the wayside in the next couple of years as this industry becomes even more competitive and the stronger dealers rise. The bottom line is that if you are going to sell spas, learn how to do it properly or don't do it at all. My words of wisdom in my departure from this industry...  

Both pools and spas can be successfully retailed in one store but it takes a certain retailer that truly understands the strategies of retail to accomplish it. In my experience, that is about 5-10% of retailers.

I know, I know... I thought Steve was leaving....  

[Spatech_tuo]

I don't know of too many reps that make under 6 figures. If you're not making more than that, get out as you can't afford your position. Commonly, it takes $25,000- $45000 to properly service a territory in expenses alone. In my experience, base salaries are no more. This is a sales driven position where you are paid based on sales.

I know, I know... I thought Steve was leaving....  

Seeing that this is your area of understanding, are spa sales reps independent or are they employees for some companies and independent for others? That might explain the disparity in some of the nmbers people are throwing out there.

[hottubdan]

When you say income is six figures but travel expenses are up to $45000, net ncome is $60000 to $80000.  

Watkins guys have expense accounts.

When a rep is paying for his own travel expenses, i have found it to be a disincentive for him to do his job.

[Steve]

Seeing that this is your area of understanding, are spa sales reps independent or are they employees for some companies and independent for others? That might explain the disparity in some of the nmbers people are throwing out there.

Almost every manufacturer is looking to make this an independent position that I have seen and heard. Again, there are differing beliefs on this but I can only draw from what I've seen and heard.

Hottubdan wrote: When you say income is six figures but travel expenses are up to $45000, net ncome is $60000 to $80000.  
 
Watkins guys have expense accounts.
 
When a rep is paying for his own travel expenses, i have found it to be a disincentive for him to do his job.

I'm not clear how you came to this conclusion? It's 6 of one, half dozen of the other... Either you're paid to allow for your expenses on your own or paid less and have an account for expenses from the manufacturer. The end result is the same right? What the former DOES do is make you travel wisely... The key is to have a clear understanding on the cost to look after a given territory and know that you can directly effect your income as you grow it.

If I need to make $85,000 annually and I know it will cost me $30,000 to service my region, whether they pay me $115,000 total per year or $85,000 and cover my expenses with an account is the same thing. This position should pay a final income of 6 figures based on the commitment required to do it properly. I couldn't imagine the travel away from my family, stress and total commitment to all of the businesses while teaching them sales, marketing, profit margins, training, event selling, homeshows, cash flow projections, market positioning and the list goes on and on for any less. That's just my opinion though...

[Gary]

I'd appreciate it if you could provide a link to the article, I'd like to read it.  Thanks!

Term

I found the article and I stand corrected it stated and average of -25% from the industry. It did mention Hot Springs but no numbers.

[Spatech_tuo]

I found the article and I stand corrected it stated and average of -25% from the industry. It did mention Hot Springs but no numbers.

I think Gary should be made to send in a picture of himself for Term to Photoshop as he sees fit as punishment for this egregious error.

If the article is accurate that the industry was down about 25% yet one of the heavyweights was only down a single digit percentage (per Uncle Termy's inside source), it makes you wonder who was REALLY hurting.

[Gary]

Here you go.

[hottubdan]

Regarding independent rep and expenses.  I have had independents and typically they did not serve us as well, in terms of shoing up and helping out.  Maybe it was just them. :-/

[Steve]

Regarding independent rep and expenses.  I have had independents and typically they did not serve us as well, in terms of shoing up and helping out.  Maybe it was just them. :-/

If they want to improve your revenue and make money for themselves, they'll show up. When it's a "hand out" from a manufacturer, it can tend to be less urgent so I find it to be the opposite really. More than anything else and regardless of the manner in which money is exchanged, some just don't care enough to take a vested interest in your company.

I'm a true believer that fear motivates and the fear of being broke is very powerful!   It can tend to be easier to "coast" when you know there's a substancial base and/or lack of motivation to improve revenue at the dealer level and support them in the way that they should be. Like in any business...it takes all kinds....

Steve

[East_TX_Spa]

[Gary]

Not that was funny

[Wisoki]

Just local information. When they start dropping off, I'll let y'all know.

You're in Reno, right?  Who is going away, if you can share?

[Chas]

I have sold other brands over the years, and the reps who were independent had the annoying habit of trying to supplement their income by introducing me to other fine 'opportunities.' More than one of them tried to get me to carry competing products - not all were other spas, or other brands, but many were things that generally sell against tubs.

In 20 years of doing this, I have the greatest respect for my Watkins reps.

Rick S - my very first Rep from 1986 - is still with Watkins MFG Corp as far as I know - he is now head of International sales and I think he is based in Australia.

 8-)