Are you having anxiety over making a spa purchase?

[bodguy]

I honestly believe you will find the mark-up is at 100%. I would say a $7000 tub actually has a dealer cost of around $3500. From my experience in car stereo, and other electronics, the markup ranged from 100-150%. I know for a fact that my spa dealer marks up all accessories at least 100%. He sold me a few extras, and upgrades at cost, and they were 50% of his asking price and less. I know his asking prices were competitive, because the only place I found cheaper was spadepot.com, and there price was in the ballpark.

You very well could be right, if the tub I bought cost the dealer $4000.00, I paid in excess of a 100% markup.  

But even with that knowledge, through months of research on this board, I know I got a great price on a great tub  

I just hope that with my posts people who really want a HS Vista or a similar tub can use the info I provided to get a good price, or even better one than I did!!

It's kinda like a family here you know

[bodguy]

Well said.

Thanx for confirming my theory Wetone!!!

[wetone]

I honestly believe you will find the mark-up is at 100%. I would say a $7000 tub actually has a dealer cost of around $3500. From my experience in car stereo, and other electronics, the markup ranged from 100-150%.  

There is enough compitition that this would not be possible.

[Steve]

Okies Dazed and Confused, one of the main reasons I wrote this entire diatribe was to try to help you and others with price anxiety. I see it was futile in your case  

 I know we've argued the point before, but Im telling ya the average size spa dealer HAS TO make at LEAST 35% profit on a tub or they will go out of business.  Dang it all to hell I know I am right here, would one dealer PLEASE back me up on this.  

If you GOTTA know what the real cost from the factory is divide the price you paid by 35%.  Ill bet you a buck Im right + or - 10%

I asked Steve a few months ago when he was selling spas if he would sell me a Spa that cost HIM $5000 for $6500 (30%). He EMPHATICALLY stated NO!

If you cannot or refuse to comprehend what I am trying to tell you here , you will never own a tub IMHO.

bodguy has just posted one one clearest posts on this subject. As most of you know, I really try to help and be respectful of real shoppers with good questions here. As for dazed, my patience has long passed and I truly believe he's playing us all. Nobody could take this proccess and "play games" for this long. 140+ posts? Come on dazed... you're busted.

I've had enough of dazed and I think it's time you took your crap elsewhere. Blunt, but we've been playing this game with you for far too long.

Demanding the cost is a sensless. Who the he11 are you to decide any one companies profit margin? Gimme a break...

Itank (short for "in the tank" I assume) wrote: "I honestly believe you will find the mark-up is at 100%. I would say a $7000 tub actually has a dealer cost of around $3500."

Not even worth responding to.

What people need to remember is that industry is far too competitive to price themselves out in left field. (where dazed and Itank are playing catch I think)  

Companies selling under 35% margins are offering great pricing. Just understand that these people demanding 95% off sales are also the type that want service immediately when something goes wrong. If your dealer isn't there to service your spa because of his "great pricing", don't be shocked when he's not there to honor any sort of warranty!

Steve

[ltank]

It is L Tank. L for Luke. I'm not crying, I ordered my Caldera 7/31/04. I don't know where you're talking about competition. In my area there are only 3 dealers that carry premium brands. Other than those guys I would have to travel over 100 miles,and that is not a local dealer.  There's no way these guys around here could stay in business at 35% markup. They don't do enough business.  I will believe it is 100% percent mark-up until someone has the balls to tell me what the mark-up is.

I'm happy with my purchase, the spa was worth what I was willing to pay. No more, No less. As long as people are willing to pay it, I don't care if mark-up is 500%.

[bodguy]

It is L Tank. L for Luke. I'm not crying, I ordered my Caldera 7/31/04. I don't know where you're talking about competition. In my area there are only 3 dealers that carry premium brands. Other than those guys I would have to travel over 100 miles,and that is not a local dealer.  There's no way these guys around here could stay in business at 35% markup. They don't do enough business.  I will believe it is 100% percent mark-up until someone has the balls to tell me what the mark-up is.

I'm happy with my purchase, the spa was worth what I was willing to pay. No more, No less. As long as people are willing to pay it, I don't care if mark-up is 500%.

Hey Luke, I don't think Steve was trying to be rude, I think I may have  hit a nerve when I brought up Dazed and Confused.

Gotta remember that when I use the 35% markup figure, I am using a figure from a well known small business model.  Whether it be 35%, 50% or 100% you acutally said it best, It doesn't matter if its 500%, You're happy!!  People who insist that they should only pay $500 over cost on a $7000 item (7.1%) will lay awake in bed at night thinking how they were screwed even if they got that price on a 7.1% margin!!!

[empolgation]

What people need to remember is that industry is far too competitive to price themselves out in left field. (where dazed and Itank are playing catch I think)  

just a little bit further guys... the dealers are over the fence  

[Steve]

It is L Tank. L for Luke. I'm not crying, I ordered my Caldera 7/31/04. I don't know where you're talking about competition. In my area there are only 3 dealers that carry premium brands. Other than those guys I would have to travel over 100 miles,and that is not a local dealer.  There's no way these guys around here could stay in business at 35% markup. They don't do enough business.  I will believe it is 100% percent mark-up until someone has the balls to tell me what the mark-up is.

I'm happy with my purchase, the spa was worth what I was willing to pay. No more, No less. As long as people are willing to pay it, I don't care if mark-up is 500%.

I'm happy you enjoy your spa Luke and you feel you got good value. My point was that I have the balls and already told you that most dealers will sell at 35%+ markup. This will vary on a number of things (too many to mention) and yes, the high end ($10,000.00 +spas) will be more in most cases. You can chose to believe that or not. My job isn't to beat you over the head trying to do so.

I don't know of too many markets that have a manopoly on their market. If these same companies feel they do, most shoppers will travel for better value. No mystery there. Soon this company that feels that they have the God given right to rip people off, will no longer be in business.

Business people don't go through the hoops (and costs) of starting a business to sustain it for just a year or two. As a shopper, we all have the right to shop. As it's been mentioned before, if you don't like it, walk out. That company will soon get the idea and rethink the way they do business. We have all the power as consumers.

Thanks for keeping me in line bodguy.

Steve

[Chas]

I know the margins I have to maintain to keep my business open. I don't go below them or it ends up costing me money to work the deal. I know it sounds crazy, but the "margin" only becomes "profit" after ALL the bills are paid.

And many of those bills are paychecks to people who depend upon my businesses to keep a roof over their heads.

The biggest bills always go to the government of course, but don't get me started on that one....  

[Steve]

Oh come on Chas. Who really cares? Salaries, lease, heating, vehicles, shipping, insurance, interest rates, discounts, etc. It can't add up to THAT MUCH can it?

Just give it away and make people like dazed happy. Where's the customer service? That's all they really want. They just want your cost. Let them decide how much your employees should make and I'm sure those other monthly bills can wait right? No prob.


Profit? Like you need that... tight wad!

Steve

[bodguy]

I know the margins I have to maintain to keep my business open. I don't go below them or it ends up costing me money to work the deal. I know it sounds crazy, but the "margin" only becomes "profit" after ALL the bills are paid.

And many of those bills are paychecks to people who depend upon my businesses to keep a roof over their heads.

The biggest bills always go to the government of course, but don't get me started on that one....  

Easy on the government Chas....if it weren't for your tax dollars (and mine) I wouldn't get paid. (Im active duty military) and I wouldn't have my Vista being delivered on Wed  

Hey wait a minute, I pay roughly 25% in federal tax per year, that means I work every 5th year for free!!!!!   Let see 24 years......dang it, Im working for free next year.

Boy that just bummed me out, now I feel like a Spa Dealer working on a 75% margin and I still have all those bills to pay with whats left.

And to top it all off Im gonna go broke next year with a zero margin!!!!!!!!!!

[ltank]

I paid $7100+tax for a Caldera Tahitian Utopia. That price included a $200(retail) cover valet,  48" storage steps w/handrail($269 retail, cover(? retail), and probably $100 worth of chemicals. Considering it will probably take the owner, and 2 guys at least 5 hours (counting driving), to set it up, I hope he has no more than $5000 in the spa.

If I were a dealer, I would probably start going up in price if someone kept badgering me. I think most dealers are good people trying to make a decent living at something they enjoy. Of the dealers I shopped, I only encountered one that really bothered me. They are my local Hotspring, and Sundance dealer. They are like those big car dealerships that continue to call you, and tell you our specials up this week, for $500 we can hold this price for you, have you made your decision yet? Blah, blah blah. I stopped by their store twice, and they were always having a BIG sale, This Week Only! They seem to think I was lucky they were around to sale me a spa. I want my dealer to make money, because I want him to be around 5-10 years from now, when I really need him.

[dazedandconfused]

'You very well could be right, if the tub I bought cost the dealer $4000.00, I paid in excess of a 100% markup.  

But even with that knowledge, through months of research on this board, I know I got a great price on a great tub'

How is paying 100% markup a great price on a spa??

As far as competition - there is none!  That is, intrabrand competition.  If you want HS you go to your local HS dealer.  HE has the market.  Hello, isnt that called a monopoly?  Other HS dealers will not sell to you if you are out of their region.  Again, protecting and creating a monopoly!  Isnt about time someone with a law degree step in?  Its time for this nonsense to end.

One problem with this forum is that there are too many dealers which of course promote the dealer and how their high prices are justified with future service, etc!  Gag me!  The dealer will service you regardless of what you paid.  He is making his money on selling add ons, chems, SERVICE, etc.  To think we are padding his pocket with more money on an inflated spa in addition to the profit on parts and service is sickening!

Oh well!  I will find my Cameo with options at a justifiable price - some day.  Some day my dealer will discover his conscious!

[Spatech_tuo]

Hey wait a minute, I pay roughly 25% in federal tax per year, that means I work every 5th year for free!!!!!  

Do you work in the Accounting dep't?

[Mendocino101]

It   I will believe it is 100% percent mark-up until someone has the balls to tell me what the mark-up is.

I'm happy with my purchase, the spa was worth what I was willing to pay. No more, No less. As long as people are willing to pay it, I don't care if mark-up is 500%.

Does Romans 8:28 mention having the "balls"......