Non Compete

[friar96]

HS Dealers...

Do all the dealers work under a non compete - where as each dealer has a specific territory and the others are not allowed to sell into that territory?  I live on the border of two states and each hotsprings dealer is 25 minutes from my house.  The dealer of the state I live in would sell me the tub - but the dealer from the bordering state would not.  Just wondering how Watkins sets it up.  Seems like if this is the case dealers can set the price with little movement.

I got a great deal on my tub - but it took some strong negotiation back and forth.

Thanks for any insight.
Friar

[salesdvl]

Part of the dealer agreement is that they are supposed to deliver what they sell and service what they sell.  They try to eliminate a dealer from slashing price and screwing another dealer that is closer to the customer and then have to fix it without benefit of getting the sale.

[st18901]

I noticed that if you go to the HS website dealer locator, they will only give you the information for one dealer closest to you. I had to put in different neighboring zip codes in order to find another dealer (as the local one was out on a delivery and I needed parts pronto)
That would indicate some kind of territory thing.

[tonyp]

I have a dealer 5 minutes from me in NJ but they didn't have an Envoy filled.  Also I was not happy with them from my pool days.  I tried another dealer 25 minutes away in NY and ended up buying it there.  They delievered and have serviced it without a problem.

[ndabunka]

Almost every spa mfg will protect a dealers territory to some extent. In larger cities those territores are (of course) smaller. So, some may be able to drive 30 miniutes to the next store while others may have to drive 3 hours.  This protects the investment the owner of the spa store made in a location (to some minor exten). But, many stores will sell across those (imaginary) lines as those lines can sometimes be hard to define and police.  The BEST way to negotiate with ANY store (beit spas or soda pops) is to (1) be well informed and to (2) pit them against their competitors.  When I say competitors I don't mean JUST the local ones, but ALL dealers.  If a Jacuzzi store is trying to sell you a J385 for $9,500 but you can find ALL this information on the internet that indicates it SHOULD be $8K, then USE IT.  If there's a caldera dealer in town, pit them against the Hot Springs, etc.  In short, use all your resources to your advantage. Once the local dealer realizes that you are a serioous buyer and have done your homework, you should be better able to negotiate with them.  Good luck!

[Brewman]

It's not uncommon to have established territories in many businesses.  It's not in the manufacturer's best interests to have too many sellers in one area, especially for large ticket items.  

What I want to know is- Why are there so many Starbucks cofffe shops on the same street?

[J._McD]

It's not uncommon to have established territories in many businesses.  It's not in the manufacturer's best interests to have too many sellers in one area, especially for large ticket items.  
 
 What I want to know is- Why are there so many Starbucks cofffe shops on the same street?

Brewman, you pose an interesting question. I would suppose the answer to be, a pure matter of convenience and the willingness to afford.  

How far would you drive to get a starbuck's, 5 miles out of your way, or would it be a visual sighting that would trigger your interest?  And, how many of us in the population would be exclusively looking for a Starbucks?  For that matter, why wouldn't they just get a coffee at the local gas station, it's all the same isn't it.

There must be money in those $3 to $5 cups, if there are so many Starbuck's.  I just don't understand why they won't negotiate the price when I could choose to go to any other Starbucks, or I could even tell them I could get it cheaper at the gas station.

[Brewman]

 Personally I won't drive 3 inches out of my way to overpay for coffee.  Don't get me wrong- the stuff is good.  Too good.  I gave up smoking to eliminate an expensive (and dangerous) habbit- I don't want to exchange it for another equally expensive habbit.  

At $3 or $4 per serving (and no refills!) they must be making money hand over fist.  I guess that's where the get the name- StarBUCK$.

There was a movie- I think it was "Best Of Show" where 2 of the people in the movie met at Starbucks.  But it was 2 different Starbucks.  They were sitting at sidewalk tables across the street from each other.  I thought that was pretty funny.

[East_TX_Spa]

We operate like this:  If someone local buys a HS, TR, or Solana Spa from us, we will service it.  If they buy one out of Dallas or Texarkana or Houston, we will not service it.  If someone comes from Dallas or Houston or Texarkana to buy a spa from us, we will not sell it to them as we can not service it.  Not all dealers operate this way, I'm sad to say.

Terminator

[st18901]

 There was a movie- I think it was "Best Of Show" where 2 of the people in the movie met at Starbucks.  But it was 2 different Starbucks.  They were sitting at sidewalk tables across the street from each other.  I thought that was pretty funny.

It was Entourage, and yes that can and does happen in L.A.

so the nick, Brewman, is not coffee related?

[Spatech_tuo]

Personally I won't drive 3 inches out of my way to  
 
 At $3 or $4 per serving (and no refills!) they must be making money hand over fist.  I guess that's where the get the name- StarBUCK$.

 

It's legal, liqiud crack for the middle class. We just bought a new cheapo 15" color TV and a small simple DVD player for the kitchen counter for the same price as about 20 to 25 of their cups of "coffee". Go figure.

[Brewman]

It was Entourage, and yes that can and does happen in L.A.

so the nick, Brewman, is not coffee related?

No, it is beer related.  Homebrewing beer is one of my many hobbies.

[ndabunka]

I know this may sound strange to some of you but  "I just don't get the attraction to coffee".   I've never really been that "impressed with it's smell or taste.  I know that many people start their day off with the junk but to me and my wife.... It's a non-issue. Starbucks and their ilk would be out of business in a second. Now, ice cream on the other hand...

[Spatech_tuo]

Starbucks and their ilk would be out of business in a second. Now, ice cream on the other hand...

Wow, I could have written that. I average about 1 cup of coffee every 2 years but putting ice cream in my freezer is like giving heroin to an addict and asking him to hold it for you.

[Brewman]

They opened a Cold Stone Creamery store here last summer, and my son got a job there.
Talk about temptations..............

Their coffee flavored ice cream combo is pretty tasty!