Hot Tub Forum
Original => Hot Tub Forum => Topic started by: Micah on March 25, 2006, 03:28:19 pm
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As a dealer with several stores and Many years of experiance, I am asking for an honest opion from both customers and other spa dealers.
Last week when I purchased some new bedroom furniture I asked the salesman if I could put half down. He kindly informed me that payment was due in full. No other options were availible.
Last year when I purchased a new T.V. the store also required fayment in full at the time of purchase even though the delivery was over a week away.
Most of my customers at our store pay in full when they order the spa. There are always some that want to put half down or sometimes even pay only $1000.00 down and feel the should'nt pay the rest untill after the job is complete. Am I being unreasonable to ask for payment at the time of purchase. Is there another industry that let's you buy things and payfor it after it has been delivered.
I thank you all in advance for what I'm sure will be some interesting replies.
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My dealer asked and recieved 10% down. Â I just put 10% down on bathroom remodeling. Â In both cases the remainder was expected on installation.
I also just bought a big screen TV with a big recognized retailer and paid 100% of it.
With the first two, the dealer would have only been out some labor, everything else materials wise could be used somewhere else. Â If you are a dealer that has 1 or 2 tubs on your floor and limited storage, I could see where it would be a problem for you to special order a tub for a customer. Â But if I'm a hot tub customer, I'm probably going to do business with someone who has been around awhile so I know I'm not going to lose that 10%. Â
Now that is ironic because my dealer is now under investigation for fraud and dozens of people have totally lost their 100% deposits averaging $7-9K
In my hot tub and remodeling purchases I went with someone who could afford not getting their 90% for a month. I have to assume that cost is built into the price I paid.
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Most of our customers pay in full. Â We usually request 20% down to hold a spa with the balance due at delivery or the next day at the latest. Â If they don't come in and pay, we'll go back and pick it up. Â We've never had to yet. Â Heck, I even took a five-dollar bill as a deposit before as "good faith" money.
Terminator Â
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This is a great question.
Normally, I get paid in full the day the thing gets written up. I am especially interested in getting paid up front if the customer uses a credit card. Keep in mind: most card purchases cost the dealer about 1.65% or more.
My policy is: $300 or so will hold a price (as long as I can hold it)
Half down will order a spa.
Full payment the day before or at the latest the day of the delivery. We have a portable credit card machine to make it easy to get paid while standing at the customer's house.
We will do what it takes to help the customer, including financing of course, but those are my preferences above.
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 Heck, I even took a five-dollar bill as a deposit before as "good faith" money.
Terminator Â
And I thought taking a 20 dollar bill was bad but you got me beat there
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When I ordered my spa, it was 50% down and remainder at delivery.
In todays world, I wouldn't buy a large ticket item without putting it on a credit card...just for the added protection.
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Chas,
What happens when a customer finances the spa? Typically the dealer cannot get paid until the spa is delivered.
Thanks,
Chris
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I put half down when I ordered my Spa and was going to pay the rest at delivery. The problem was, I was on vacation, which the dealer knew. He had no problem holing it for two weeks and did not ask for payment then. I paid him though because I thought it was the right thing to do since it was my fault he could not deliver it.
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Chas,
What happens when a customer finances the spa? Typically the dealer cannot get paid until the spa is delivered.
Chris
Zactly. In that case, we get the application and contract signed and all approved in advance, and then we fax the paperwork to American General when the delivery crew gets back. They usually have a check in my hand that day or the next.
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There isn't a sale until ALL of the services are rendered, including delivery.
We will hold a particular spa for 90 days with a $500 deposit. The balance due at time of delivery.
My warehouse manager will call the customer the day before delivery and ask how they are going to pay the balance. If they want it on a credit card he will take the cc# over the phone, run it, then have them sign on delivery. If they want to pay with a check he will collect that BEFORE he takes the spa off the trailer. Financed tubs would have all the paperwork done at the point of sale.
They vast majority of customers have a check waiting at delivery. I do think you will gain some customers if you accept down payments or deposits. There have been times when I coaxed a deposit out of a customer to "hold a price" with the understanding that they are still in the shopping stage. That deposit gives them ownership in your brand and they will be defensive of your product while other dealers try to bash it.
I think that we have all learned on this board that people will get very defensive of the decisions that they make ;)
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I will order a spa with a $500 deposit, if they cancel I will give a full refund, and I have no problem selling an instock spa.
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they will be defensive of your product while other dealers try to bash it.
I think that we have all learned on this board that people will get very defensive of the decisions that they make ;)
Boy howdy is that true or what!?
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My HS dealer would take a couple hundred down to hold one of their older stock tubs.....the '04 J375, or the refurbished tubs. However, on one they have to order, they ask for 1/2 down, and the other half upon delivery.
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well i hope this is not a mistake but i just paid for my spa in full over the phone. Have not set up a date for delivery. Got to put in the service an pour a little more concrete of which the dealer is very much aware. Hope i didn't goof in that department. Dealer asked for 2G down and we paid in full. and so the fun begins.....
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if it's a reputable dealer, I wouldn't worry about it....over the phone, I assume credit card? There's your protection....do your thing, check later in person with them if you feel the need, and enjoy!
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Very Interesting topic Micah. I'm not sure if you can compare buying a TV with a spa though. I paid for my TV in full before it was delivered but it was from Circuit City. The probability of CC going bankrupt was very low.
I personally wouldn't leave more than a 10% deposit for a spa unless it was from someone I knew, i.e. Chas, 101, Terminator etc. There have been a couple of dealers in my area (lower end mfgs) who have skipped town somewhat like wmccall's story. I guess I'm more conservative than most. Just my two cents....
As a dealer with several stores and Many years of experiance, I am asking for an honest opion from both customers and other spa dealers.
Last week when I purchased some new bedroom furniture I asked the salesman if I could put half down. Â He kindly informed me that payment was due in full. No other options were availible. Â
Last year when I purchased a new T.V. the store also required fayment in full at the time of purchase even though the delivery was over a week away.
Most of my customers at our store pay in full when they order the spa. There are always some that want to put half down or sometimes even pay only $1000.00 down and feel the should'nt pay the rest untill after the job is complete. Â Am I being unreasonable to ask for payment at the time of purchase. Â Is there another industry that let's you buy things and payfor it after it has been delivered.
I thank you all in advance for what I'm sure will be some interesting replies.
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I think the more flexible you can be with your financing/downpayment structure, the more appealing you will be to customers of all walks of life.
My electrician said he'd do my work on Friday and bill me next week. My barber and favorite restaurant have the same policy....I pay as I exit ;D
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actually it was my debit card. not concerned about the dealer very reputable...can't wait....alot of crap to do...neither can my friends....or childrens for that matter. of course my friends are the only ones that actually volunteered to help with the install, go figure that.
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So, Do all manufacturers expect the money up front from their dealers?
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So, Do all manufacturers expect the money up front from their dealers?
Mine does....
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So, Â Do all manufacturers expect the money up front from their dealers?
Mine does to
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not even.
We ask for at least a $500.00 deposit. $500.00 will get the spa delivered to their house, payment due in full upon delivery.
Often times they(consumer) ask to pay more and we let them. $500 deposit is enough for us to order spa if it's not in stock. If the delivery is months off, we ask they pay as we go, thousand every month or so.
All deposits/ payments are 100% refundable.
If within a month they do not like the spa we'll upgrade or downsize with full purchase price in mind, or even take it away and refund 100%.
We do it all on a handshake, no contracts.
We promote most all of this. It promotes honesty and it forces the competition to do things similar or suffer.
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I purchased mine with 50% down, and then rest paid for after delivery. I expected my dealer to have some sort of portable unit to run my card before they brought the spa in, but he just had his delivery guys drop off the spa, and then called me later that day to confirm that he could put the rest of the balance on my card. I was prepared to pay for the whole thing when I bought it, but as he only asked for 50%, that was fine with me. It split the cost of the thing over 2 months (just happened to be that way with my credit card cycle) so that was sort of nice. Mine was a floor model, so that may have affected how he did the transaction.
While I understand that using a card costs the dealer a little bit, I cannot imagine making such a big purchase any other way. Mostly for security, but partially because of the points or miles earned.
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The dealer was running a 24 months same as cash deal (didn't know this until we agreed to place order...nice surprise).
I asked if they offered a discount for cash and they did not (finance done by outside company).
I guess the dealer was paid in full by having me finance the spa. The didn't ask for a downpayment whatsoever.
I still think the more flexible a dealer can be with finance options, the more customers they will attract. It might be advisable to notify the serious customer of your downpayment expectations...I wouldn't want to create an awkward moment when closing the deal.
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not even.
We ask for at least a $500.00 deposit. $500.00 will get the spa delivered to their house, payment due in full upon delivery.
Often times they(consumer) ask to pay more and we let them. $500 deposit is enough for us to order spa if it's not in stock. If the delivery is months off, we ask they pay as we go, thousand every month or so.
All deposits/ payments are 100% refundable.
If within a month they do not like the spa we'll upgrade or downsize with full purchase price in mind, or even take it away and refund 100%.
We do it all on a handshake, no contracts.
We promote most all of this. It promotes honesty and it forces the competition to do things similar or suffer.
I'm impressed, I'm sure its confidence inspiring.
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We typically run the gamut of $200 to $500 down, up to paid in full with the order. We sometimes will do 100% financed deals.
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Paid for my spa in full, by credit card, at time of order. Was offered financing but didn't go that route. I have often ordered furniture where I would pay 50% down and the rest on delivery. Just picked up a table today that way.
Paid 50% for my screens for my deck with the rest on installation and didn't pay anything for my under deck roof until the job was done, only because I wasn't asked to. Had they asked I probably would have put down a deposit.
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My dealer had a 90 days SAC so I took advantage of it.
In my business, computer networks, I order and install hardware and they have 30 days to pay. This is on invoices generally larger than the price of a spa.
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I went to the dealer the day before delivery to sign the 6 mo same as cash papers.
I found it interesting that the finance co (Aqua finance or something like that) called me 5days after install to make sure I was happy with everything. They said they would not fund the dealer unless I told them everything was done and I was completely happy with the tub and install. I was happy and they paid the dealer the next day.
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I found it interesting that the finance co (Aqua finance or something like that) called me 5days after install to make sure I was happy with everything. They said they would not fund the dealer unless I told them everything was done and I was completely happy with the tub and install. I was happy and they paid the dealer the next day.
The finance company we use did this for the first few years, but as I got to know the manager of the local branch better, and as the years mounted up, they stopped. We added a line on the bottom of the delivery form for the customer to sign:"received in good order." Trust is a good thing, once you've earned it - and it works both ways.
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My dealer asked for full payment before delivery. I would have prefered to pay after delivery and after I had full assurance the product was delivered an installed. I didn't put up a stink, as I ran the remaining balance through my Credit card (received bonus points from the CC company). and if thier was a dispute, I did have the option of of holding payment via the CC.
Had I not had the option, I think there might have been an issue. I am not comfortable paying 100% for a product or service I haven't received yet.
Even if you have the cash in hand for a product (TV, furniture, spa, etc), I think you'd be best served to pay for the transaction through a CC. Get the bonus points, pay off the item before interests hits, and have the security of being able to dispute a problem.
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I think that we have all learned on this board that people will get very defensive of the decisions that they make ;)
And Chas said:
Boy howdy is that true or what!?
Is this a bad thing?
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Every dealership I have worked at takes $500-20% down (unless financed) and balance due prior to delivery (day before, morning of).
As far a manufacturers taking money up front, one manufacturer I dealt with offered 1.5% for COD and 2% for cash up front. We would pass along the saving if a customer would pay 100% up front.
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I know I received a bargain. Only had to put $500 down for a 1 year price lock. Remainder due upon delivery/set-up
r100rs
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My dealer requested $2,000 down (about 25%) of the purchase price. I thought that was fair, but I woudn't have had a problem paying 50% as a down payment. The dealer ordered it at that time and has it waiting until I get my concrete poured.
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I'm actually surprised to see how many people pay 50% or more prior to delivery.
Personally, I wouldn't run the risk until I had something to show for it but that's just me. It could be any dealer and regardless of the product they carry, the manufacturer does not cover dealers that go out of business for refunds of deposits.
We asked for a minimum of $500 deposit and the balance on delivery. If it was a financed deal or deferral of payment, this was all in place and approved prior to delivery. I think every dealer should offer a complete refund on deposits unless you're using those funds to just make it! ;) It's just bad business otherwise and not a long term vision for staying in business.
Not offloading a spa until a cheque is picked up confuses me? It’s just a piece of paper equal to an IOU. It means nothing until it’s cleared. I’ve always said it’s like picking up a post-it note. It has the same value. Because of 2 instances where cheques bounced, we cleared all cheques prior to delivery or asked for it to be certified on delivery.
When purchasing a spa, don't look at it like you're buying from HotSprings or Jacuzzi...look at it like you're buying from Dave Peterson or Bert Robertson. Who are those people? Exactly! ;)
Most every manufacturer requires payment in full for tubs being shipped. Manufacturers are not finance companies and dealers do have options for flooring programs such as Textron, GE, etc. to prevent lack of cash flow.
Steve
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I agree with Steve. The thought of paying for something I don't have for the kind of money we talk about on this board makes me wince.
Anyone could be giving the last payment taken before filing for bankruptcy, closing the doors or just plain skipping town.
It points up the importance of dealing with a dealer who has both presence and reputation.