Factory Direct: What does it mean?

[East_TX_Spa]

A local competitor of our Tyler store has begun advertising that they are a Factory Direct Outlet for Artesian Spas.  They say that people can save money because they don't have to pay the middle man.

It seems to me that they have been and STILL ARE the middle man.  What am I missing?

Terminator

[Chas]

See now, here in California we have a name for that. It's called "dishonest marketing."

Some folks just get lazy and use the short form: "Lying."

I also have a competitor who does that for D1 of all people. I know D1 and the folks who rep it, and they are fine people. They DO NOT sell factory direct.

Makes it tough for those of us who want to deal straight.

[East_TX_Spa]

That's what I never could figure out.  If it is factory direct, it should be sold AT THE FACTORY.  Otherwise, they are a dealer, same as the rest of us.

Terminator

[Steve]

The word "sale" is so over used that companies get "creative" with their event wording to create interest and believable value. Isn't there a law against false advertising down there?

Maybe the rep isn't getting paid on spas sold during this? God forbid....  

[drewstar]

I thought the only way you could get "factory direct" was from a tent on the side of the road?  

[East_TX_Spa]

I just heard their ad again on the way to work.  It says they "are ONE of the largest Artesian Factory Direct Outlets" in the nation.

How many "factory direct outlets" does Artesian have?

Does Sundance or Jacuzzi have factory outlets?  I believe Markee (the forum member) works at a Marquis factory outlet store.  Hopefully he can explain it so that it makes sense.

I don't know of any HotSpring factory outlets.

Terminator

[Wisoki]

When I started in San Diego some years back, I worked at the Jacuzzi Factory Store. It was owned and operated by Jacuzzi. There were four of them. San Diego, Orange County, Los Angeles and the Wallnut Creek store at the corporate head quarters. They sold the S.D., O.C. and L.A. Stores to private dealers but maintained for a short period, the Wallnut Creek store. I say, if you can't walk through a door into the manufacturering facility, then you are not buying factory direct.  

I just heard their ad again on the way to work.  It says they "are ONE of the largest Artesian Factory Direct Outlets" in the nation.

How many "factory direct outlets" does Artesian have?

Does Sundance or Jacuzzi have factory outlets?  I believe Markee (the forum member) works at a Marquis factory outlet store.  Hopefully he can explain it so that it makes sense.

I don't know of any HotSpring factory outlets.

Terminator

[AAAAAAA]

Maybe its just the name they chose, kind of like buying a "superflat" television that isnt flat screen. They just decided to name it super flat.

Like they could of named the toyota Rav4 "doesthe1\4milein11secondsflat", doesnt mean anything, just a name haha. A missleading name of course.

[East_TX_Spa]

Maybe its just the name they chose

That's fine and dandy, except that they explicitly say in their ads that you can save thousands of dollars by eliminating the middle man.  I don't recall them ever saying they were factory direct until recently.  Maybe they are actually building the spas in their barn/showroom.  Then, it would be perfectly ethical to claim factory direct status.  Otherwise, I will have the opinion they are being deceitful unless someone can show me otherwise.

Terminator

[hymbaw]

I would think that the store has to be owned by the Mfg. to be factory direct not necessarily attached to the factory.

[Brewman]

Factory direct merchandise comes directly from a factory.
If you go to the factory, or their warehouse to pick up your own spa, I'd buy the line that it was factory direct.
If you go to some other building, like a spa store claiming to be factory direct, I'm less apt to believe.
 Someone is paying for that building and it's associated expenses, and the cost of moving the spas, and the salaries or commissions of those who are working at the "store".  That sounds pretty much like a middleman to me.  

Plus- factory direct doesn't mean that any savings are passed onto the consumer.  The "factory" could choose to retain any middleman money for themselves.  All merchandise has distribution costs of some type.  

I think that spa makers should stick to what they do best- make spas.  Let the dealers handle the sales and service end- that's what they do best.  It might be more efficient in the long run.

Isn't Thermospa factory direct in a way?  They don't have a network of retail shops run by independent business persons, so they should be able to pass a whole lot of savings onto their customers.  From what I've read, they don't.

[salesdvl]

Back in my retail days, the company I worked for advertised the same way.  Factory Direct.  The owner said that we bought from the factory direct rather than through a distributor.  I think these days "Factory Direct" is way over used.  

[Spatech_tuo]

I would think that the store has to be owned by the Mfg. to be factory direct not necessarily attached to the factory.

But they have a lease, same employee needs, etc. I know one manufacturer that has a factory direct store partially because the local dealer dropped them and they couldn't get anyone to carry their product.

Being Factory Direct sounds good in the sales pitch but it doesn't necessarily mean much. Heck, the people selling who sell spas in the Pennysaver from those storage units are more factory direct than most of these "factory direct" stores but I'm not sure I'd consider that such a great thing. Thermospas has been factory direct for years but that's not such a great thing. When I hear factory direct spas I don't get a warm fuzzy feeling.

[Mendocino101]

Please someone help me out here...but aren't we all "Factory direct dealers" here....I mean raise your hand if anyone is buying their spas from a distributor of some sorts....I think it is misleading but I guess we could all make the same claim of being Factory direct since we all buy direct from the factory.....Please do not think I am a advocate for making this claim but I just suppose we all could and as it was already said it does not mean much....

[Spatech_tuo]

Please someone help me out here...but aren't we all "Factory direct dealers" here....I mean raise your hand if anyone is buying their spas from a distributor of some sorts....I think it is misleading but I guess we could all make the same claim of being Factory direct since we all buy direct from the factory.....Please do not think I am a advocate for making this claim but I just suppose we all could and as it was already said it does not mean much....

I think factory direct is supposed to imply direct from factory to customer but it's been so muddled up over the past 10-15 years...