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Author Topic: Wouldn't it be great if hot tub dealers did this?  (Read 4803 times)

D.P. Roberts

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Wouldn't it be great if hot tub dealers did this?
« on: May 26, 2007, 06:02:43 pm »
When you go to a GM dealer, you'll be able to test drive Toyotas and Hondas as well (read the article http://www.cnn.com/2007/AUTOS/05/25/gm_vs_camry/index.html. The idea is that GM thinks you'll really like their cars, and they'll benefit from a side-by-side comparison.

Wouldn't it be great if you could do that at a spa dealer too? Jacuzzi dealers could have a Hot Spring and Caldera spa to test, or whatever brands are available in the area. Shoppers would probably go there first for "one stop shopping". Sure, some shoppers might like the competitor's model, but they'd certainly get a lot more customers in the door.

I know there are a lot of dealers on here- would anyone consider doing this?
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Wouldn't it be great if hot tub dealers did this?
« on: May 26, 2007, 06:02:43 pm »

Jacuzzi Jim

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #1 on: May 26, 2007, 06:35:36 pm »
 We as a company have thought about getting together with the 2/3 other major dealers around here and in the spring/fall do a major sales event, everyone pitches in for the advertising it runs Thursday to Sunday or something along those lines.

 Basically everyone gets a chance to pitch there spas for the weekend to anyone interested in a spa.  which kinda happens anyway when one or the other or us runs an add, but this could be a major sales event for all the dealers to create the hype and get people who maybe on the fence as to buying a spa or not.

 Not quite worded right but you get the idea,  Hopefully there wouldnt be any price gouging and of course you would have special pricing but not so far out of line to cause price wars between the dealers so nobody makes out??

« Last Edit: May 26, 2007, 06:36:57 pm by Jacuzzi_Jim »

ndabunka

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #2 on: May 26, 2007, 07:09:13 pm »
Quote
When you go to a GM dealer, you'll be able to test drive Toyotas and Hondas as well (read the article http://www.cnn.com/2007/AUTOS/05/25/gm_vs_camry/index.html. The idea is that GM thinks you'll really like their cars, and they'll benefit from a side-by-side comparison.

Wouldn't it be great if you could do that at a spa dealer too? Jacuzzi dealers could have a Hot Spring and Caldera spa to test, or whatever brands are available in the area. Shoppers would probably go there first for "one stop shopping". Sure, some shoppers might like the competitor's model, but they'd certainly get a lot more customers in the door.

I know there are a lot of dealers on here- would anyone consider doing this?

Actually is not a bad idea.  I own a Jacuzzi and when I was considering running a non-jacuzzi shop, I did think that having the Jacuzzi on the floor side by side might give people a good measure to compare.

Heck, you already floorplan your own inventory.  How much harder would it be to buy a used Jaccuzzi, Hot Spring, etc and simply have them on the floor with your competitors "retail" prices on them?  I would not replace each new year but rather every 3 years or so.  This would also drive price competition.  Easy to say since I don't have a dealership but I did give it a thought.

I can see potential buyer comes in and see a $10,500 price tag on the Sundance Optima and then see a bullfrog of similar size for $8,200.  They can see and feel the jets in both.  At my dealership... the $8,200 would have been the price (flat, no negotiating).  At the Sundance dealer they would have to "wheel and deal" and STILL might not be able to get below $9K.  I thought it may be an effective approach.
« Last Edit: May 26, 2007, 07:13:39 pm by ndabunka »
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East_TX_Spa

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #3 on: May 26, 2007, 07:18:17 pm »
I seriously considered doing this.

Last week, a couple came in and bought a HotSpring Envoy and asked us to remove their 3-year old, 3 person Bullfrog spa.  Since Bullfrog is my major competitor around here, I wanted to set it up side-by-side next to a HotSpring Jetsetter 3-person spa.

Before I could get the Bullfrog, our delivery guys had cut it up with a Skil Saw and threw it in the dumpster.  They did save a jetpack for me, though.

I don't know about other areas of the country, but the dealers around here change brands 2 or 3 times/ year.  I think right now there is CalSpa, Sunbelt, and Dynasty being sold along with Bullfrog.

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eightisenough

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #4 on: May 26, 2007, 07:49:52 pm »
the way the Marquis dealer knocked the others was to say the factory in Oregon sets up each other spa and allows the dealers to test spo they can sell Marquis bettter.


mattNY

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #5 on: May 26, 2007, 07:58:21 pm »
I like the idea personally, but I'm not sure this applies to any product or product line, it would require some research on the part of hot tub manufacturers.  As described in the article, the reason GM chose to do this is because Toyota and Honda are outselling them more than 3 to 1 on midsize sedans, and in their research, consumers liked the GM sedans when all brand identifications were removed (read: they have lots of glitzy features that appeal to the consumer).  So they have "little to lose" since they can show a midsize sedan with a similar feature set next to the brand leaders at thousands less.  Then it's up to the consumer to weigh that against the perceived quality and longevity of the imports.  If you made a comparison to the spa world, this kind of scenario would apply to a Costco store putting a Hotsprings, D1, etc. spa next to theirs (glitzy features, same size/function, but literally thousands of dollars less with a tradeoff of brand quality).  

It also mentions in the article that GM "wouldn't even consider doing something like this with its SUVs" since they already have good market share.  I'm not sure at all that the top contenders would benefit by having competitor's models.  A customer could very well decide they like the styling or one particular feature of the competing spas.  As well, by having that other spa in your showroom, you're basically admitting that you have to prove yourself against it.  The Camry/Accord are the undisputed market leaders, so GM doesn't care and sells on price, but if a Hotsprings store has a Jacuzzi in it, they're lending credence to the idea that Jacuzzi is a worthy competitor just by the fact it's there, and if it also happens to cost the same or less...

I like Jim's idea more - have a single event where you can get "one stop shopping", though I think you inevitably get some mudslinging at those events (our warranty is better than Company X's because ___, their tub isn't as good as ours because ____, etc.).  I think you do generate more sales when people can look at a bunch of quality brands and make up their mind in a single day.

Quote
I don't know about other areas of the country, but the dealers around here change brands 2 or 3 times/ year.  I think right now there is CalSpa, Sunbelt, and Dynasty being sold along with Bullfrog.

I think I posted this once in another thread, our Hotsprings dealer has been around for 20+ years (though they suck - I wish they'd get some competition), Jacuzzi for 40+, Dimension 1 for 40+, Sundance for 20+, and they've all carried the same brands for at least the last 6 years or so.

Spiderman

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #6 on: May 26, 2007, 08:23:31 pm »
Quote

Before I could get the Bullfrog, our delivery guys had cut it up with a Skil Saw and threw it in the dumpster.  They did save a jetpack for me, though.


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D.P. Roberts

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #7 on: May 26, 2007, 09:29:26 pm »
Wow, thanks for the responses - I think I agree with all of you.

Jim, I like your idea - I've always thought the local home shows should do something like that. Not the Master-type home shows, but he local builder shows where people walk around new houses for hours, and then get really tired, & probably get a lot of people looking who might otherwise not be in a market for a tub ("Feet hurt? Check out our spas!").

ndabunka - I had the same idea as to price. You buy a spa every few years from your competition at their "sale" price, without haggling. You then put it beside your spa with your best deal on it.

mattNY - I think you're right about the competition thing. I doubt any dealers would put a Costco tub next to theirs, they'd put their "full service" competitor next to it. I think it would help: for example, in Term's case he could show that Bullfrog, not Costco, is his competition. If someone even mentions Costco, he points out that Costco spas aren't in the same "league" as HS & Bullfrog. He then points out how HS is superior to Bullfrog.  
It would be like a BMW dealer putting a Mercedes in their showroom instead of a Honda. There's nothing wrong with Honda, but the dealer, by not having a Honda there, is pointing out that Honda is not in the same league as BMW and Mercedes. If spa dealers are going to survive the "upstart" Costco brands, I think this will have to be their approach.
"It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." - Mark Twain

Mendocino101

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #8 on: May 27, 2007, 01:31:00 am »
While its a great idea, 2 things how many customers would think that you have not altered the competitive spa in some way and secondly so very few actually wet test I do not think it would be worth the investment. I like the idea but as a dealer even when asked a direct question about a competitor's product it is tough not been seen as being negative and yet at the same time is it fair to the consumer to less than open when you have a good insight to another's product. I prefer to focus on what we offer and to show the value in it.

wmccall

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Re: Wouldn't it be great if hot tub dealers did th
« Reply #9 on: May 27, 2007, 09:08:26 am »
Maybe we could put Jimmy boy in charge of this.
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Re: Wouldn't it be great if hot tub dealers did th
« Reply #9 on: May 27, 2007, 09:08:26 am »

 

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