MSRP

[Ryan VSO]

Of course he can but even if he does have a protected dealer network , if theres no dealer in his area I dont see any reasons why he would not cut 35 % from that msrp .

[rosewoodsteel]

Vortex,

On average,  (percent wise) how much of a mark up do you think most dealers have for a spa?

[Ryan VSO]

Dealer work on a 35 % minimum margin up to 55 % and even 65 % on swim spas.

If the manufactuer price is 4000 $ for a regular tub , the distributor will make 10 % and dealer usually make 35 % .

so you are ending up paying : 4000/.90% = 4444 $ / .65 % = 6836 $ ( you have to add shipping , accessories , storage etc )

Swim spa usually cost 8-10 k to build depending if they use a galvanised steel frame or wood frame wich I would not recommend .

Hope this help

[hottubdan]

Getting off topic here.  However, the cheaper, smaller swim spas would cost 10-12 to build. The higher end ones are going to cost much more.

[Ryan VSO]

I have the price list for hot spring , master spa , vortex spas , catalina spas and they are under 10 k .. catalina is nearly 6500 $

[Ryan VSO]

When it come to swim spas , I guess they get more margin because of the shipping cost and i was refeering to a standard 15 feet long swim spa not a dual zone or 20 feet long swim spa.

[Hottubguy]

I have the price list for hot spring , master spa , vortex spas , catalina spas and they are under 10 k .. catalina is nearly 6500 $

Hot spring doesn't make a swim spa.

[rosewoodsteel]

Dealer work on a 35 % minimum margin up to 55 % and even 65 % on swim spas.
If the manufactuer price is 4000 $ for a regular tub , the distributor will make 10 % and dealer usually make 35 % .
so you are ending up paying : 4000/.90% = 4444 $ / .65 % = 6836 $ ( you have to add shipping , accessories , storage etc )
Swim spa usually cost 8-10 k to build depending if they use a galvanised steel frame or wood frame wich I would not recommend . Hope this help

So the price of a regular spa is inflated approximately 45% if it is purchased from a dealer?  Damn.

[Jacuzzi Jim]

Dealer work on a 35 % minimum margin up to 55 % and even 65 % on swim spas.
If the manufactuer price is 4000 $ for a regular tub , the distributor will make 10 % and dealer usually make 35 % .
so you are ending up paying : 4000/.90% = 4444 $ / .65 % = 6836 $ ( you have to add shipping , accessories , storage etc )
Swim spa usually cost 8-10 k to build depending if they use a galvanised steel frame or wood frame wich I would not recommend . Hope this help

So the price of a regular spa is inflated approximately 45% if it is purchased from a dealer?  Damn.

   Why are you so wrapped around what and how much a dealer marks up his spas to make a living, and pay his bills what difference does it really make?  It is what it is for any particular dealer.   To try and guess is a waste of time..   A dealer will only go so low on a spa, he knows what his margin is.       So again not sure what you are trying to accomplish here? 

[Tman122]

Dealer work on a 35 % minimum margin up to 55 % and even 65 % on swim spas.
If the manufactuer price is 4000 $ for a regular tub , the distributor will make 10 % and dealer usually make 35 % .
so you are ending up paying : 4000/.90% = 4444 $ / .65 % = 6836 $ ( you have to add shipping , accessories , storage etc )
Swim spa usually cost 8-10 k to build depending if they use a galvanised steel frame or wood frame wich I would not recommend . Hope this help

So the price of a regular spa is inflated approximately 45% if it is purchased from a dealer?  Damn.

None of Vortex's statement is true. Dealers work on all kinds of different margins. I am sure Vortex Spas makes about the same margins as any other manufacturer. They likely cheapin up the manufacturing process to make that happen. The more a dealer buys the bigger his margins can get. There are dealers that only make 10%

[rosewoodsteel]

Dealer work on a 35 % minimum margin up to 55 % and even 65 % on swim spas.
If the manufactuer price is 4000 $ for a regular tub , the distributor will make 10 % and dealer usually make 35 % .
so you are ending up paying : 4000/.90% = 4444 $ / .65 % = 6836 $ ( you have to add shipping , accessories , storage etc )
Swim spa usually cost 8-10 k to build depending if they use a galvanised steel frame or wood frame wich I would not recommend . Hope this help

So the price of a regular spa is inflated approximately 45% if it is purchased from a dealer?  Damn.

   Why are you so wrapped around what and how much a dealer marks up his spas to make a living, and pay his bills what difference does it really make?  It is what it is for any particular dealer.   To try and guess is a waste of time..   A dealer will only go so low on a spa, he knows what his margin is.       So again not sure what you are trying to accomplish here?

Sorry if I struck a raw nerve there, Jim.

[Ryan VSO]

The question was how much we can cut from the actual sale price if theres no dealer involved wich I answered ,  Vortex also own a quite large dealer network for other brands we sell and this is why I was able to provide the right number . Any dealer who operate a store with employees will need that 35 % margin and thats fine. Some custumer will prefeer to pay more to have that local dealer and some will prefeer to go whithout a dealer and save that money for somethin else and we have to respect this choice .

Vortex doesnt have any dealer in the Usa or canada because we go online , and you can be sure that  we dont make 35 % margin on a 12,995 $ swim spa that include a delivery and we are only using high end product and material but guess what we dont have to pay any rent , any employees etc so at the end custumer is saving money and the manufacture is controlling the product and making as much money as if they would have a dealer network.

We are always arguing with this old mentality of dealer network owner wich you seems to be part of wich i have alot of respect for because i was actually a dealer before starting to work for Vortex but the % of custumer who are willing to save money by cutting the dealer is growing year after year and as a business you have to consider that .


So yeah rosewood , for a regular hot tub its nearly 35 % and they need that margin to survive , for swim spa its something around 50 % of average wich I think is too much but guess what this is probably why we are selling so many right now so I am not complaining .

You can send me a private message for further questions , I think it will be better that way

[Jacuzzi Jim]

The question was how much we can cut from the actual sale price if theres no dealer involved wich I answered ,  Vortex also own a quite large dealer network for other brands we sell and this is why I was able to provide the right number . Any dealer who operate a store with employees will need that 35 % margin and thats fine. Some custumer will prefeer to pay more to have that local dealer and some will prefeer to go whithout a dealer and save that money for somethin else and we have to respect this choice .

Vortex doesnt have any dealer in the Usa or canada because we go online , and you can be sure that  we dont make 35 % margin on a 12,995 $ swim spa that include a delivery and we are only using high end product and material but guess what we dont have to pay any rent , any employees etc so at the end custumer is saving money and the manufacture is controlling the product and making as much money as if they would have a dealer network.

We are always arguing with this old mentality of dealer network owner wich you seems to be part of wich i have alot of respect for because i was actually a dealer before starting to work for Vortex but the % of custumer who are willing to save money by cutting the dealer is growing year after year and as a business you have to consider that .


So yeah rosewood , for a regular hot tub its nearly 35 % and they need that margin to survive , for swim spa its something around 50 % of average wich I think is too much but guess what this is probably why we are selling so many right now so I am not complaining .

You can send me a private message for further questions , I think it will be better that way

   You are only guessing and assuming what any particular dealers mark up is.  To rosewoodsteel it only matters to the dealers he is shopping, that being said I am not sure he is shopping nor I don't think he has mentioned which brands he is shopping. 

  And rosewoodsteel, no you did not strike a nerve!  I am just curious why you are so worried and curious as well to what a dealers mark up might be?     If your looking to go in with guns loaded and to get the best deal you can again it makes no difference they will again only go so low. 

[Ryan VSO]

I think he is just asking himself if he should buy online or go for a local dealer. Both ways are good and at the end its the custumer descision.

[Tman122]

You are right Vortex a customer should decide to buy online or from a dealer. If the compromises you make buying online are not that important to a customer then by all means. There are a heck of a lot of things that are great for buying online and I personally wouldn't buy them any other way. But Hot Tubs along with cars, 4 wheelers, motorcycles, houses, most cloths and a long list of other things I would never consider buying online. Like Brill himself says, if your just looking for hot water and bubbles and you can fix it yourself then by all means.