Homeshows & Value To Consumers

[Steve]

Since we're coming into the season of Homeshows, I wanted to bring this topic up.

I have read on a few occasions that some feel that prices are inflated to cover the expense of these events.
I tend to disagree with this. Now I can't speak for all dealers, but I have yet to see a company increase their prices for a Homeshow. Here's why;

Many dealers do a massive mail out to prospects who have visited their showroom in the past year. If you're not doing this as a dealer, you're crazy!
What would be the benefit to increasing your pricing? Nothing! Shows are a part of doing business and many good dealers actually budget for these annually in their sales and advertising. If you're not, you should be!

Most dealers recognize that getting out of the store is paramount to increasing annual sales and this has proven true for many, many years.

To counter the claim of increased pricing, most manufacturers offer additional incentives to their dealers for these events. Many last years models are cleared out as well as scratch & dents. These shows are designed to sell spas and going to one without a fantastic promotion, is financial suicide. If you as a dealer can't go without increased pricing and a great value to past and future prospects, don't go. But also don't expect a very good year in sales either.

My suggestion for you shoppers considering this purchase this spring is to do your homework now. Homeshows are generally higher pressure due to the small window of opportunity related to the length of the show. Have your questions and concerns ready and see all the dealers there. Don't hesitate to put a small deposit down at the show and confirm that it is refundable in writing on your invoice. Spend some time at the dealers showroom the following week in a quiet environment to confirm that you have chosen the correct model and make of spa. If there's a concern, get your refund.

I know many people that have purchased at shows and say that it's the best decision they've made. Just spend the time prior to the shows so you can determine accurately if you're getting the best possible value you can.

Steve

[Brewman]

I used our local home and garden show as a starting point.
There were a lot of different brands represented, and usually someone from the factory on hand to answer questions.  Just like the auto show- you can see a lot of variety in the same building.  
Once I narrowed my choices, I visited the dealers in person for wet tests, etc...
Brewman

[wmccall]

Steve,

I agree with your point, the key to succesful buying is doing your homework ahead of time. However, its hard to justify the statement that Dealers don't raise prices for shows since hot tub prices are generally a mythical thing anyway.  I think the main thing about home shows are the dealers that bring in the factory reps who are more high pressure, you have to buy today to get this price.  I would think the buyers at home shows are more impulsive than those visiting stores.

[Steve]

Two interesting responses...

Brewman pointed out that there is generally a wide selection that allows consumers to visit multiple brands under one roof. Very true and I agree if your not willing to make a purchase anytime soon. Show's have additional value in most cases and it's the reason why I suggest doing the majority of your homework prior to this event to justify purchasing if you feel you're getting good value.

Bill pointed out that prices are mythical to some to degree so it's hard to determine value. Again true if you haven't done your homework. Many consumers are smart shoppers nowadays. Could you imagine being a dealer and spending X number of dollars to display a booth and man it for 3 or 4 days only to try and promote a value that is less than what you could offer at the store a week prior? Why go in it then?

I'm not disagreeing that shows are expensive. Advertising in general is expensive but it's a fact of business. Again, why would I expect to go through the hassle and expense of a show knowing that many prospects that have been into my store previously are coming to the show to possibly buy and I can't show some additional value? It's pointless and if you're a dealer that's going to shows and either raising your prices or showing the same value as the weeks and months before, your wasting your time as well as the consumers time. There's no guarantee sitting in your store after spending $5000.00 in advertising that you're going to sell 10 spas that weekend. Do you raise prices after every major advertising campaign? No, so why are shows any different? Why should the consumer pay for a dealers lack of planning and budgeting?

If they're not offering good value, their sales will reflect that and those are the dealers complaining about lack of sales and how darn expensive those shows are.

When I did shows with Beachcomber, we averaged 25-35 spas in a 3 day show. We also showed better value and executed a very well thought out plan prior to the shows to get this result. Problem is, many dealers are lazy and expect to just show up and write 30 spas. These are the dealers that complain and consider raising prices the next show they go in.

Steve

[drober30]

I have always saved lots of money buying from a show. It is true that they want you to commit to the deal during the show to reserve the price they are offering.

The stipulation of "you have to buy now for this price" is not a deterrent o those who are ready to buy and know what they are looking for, however I have missed the boat before because I was not ready to buy and the show pricing was not offered after the show.

My wife shops with the attitude that if you can sell it for $xx now you can sell it for $xx later. I understand that deals do exist and the price may be lower to increase the quantity of items sold. Sometimes the manufacture will discount the dealers cost so the consumer can save in the end.

I look forward to our pool and spa show here in Michigan. It will be April 1st.

[stuart]

We have 10 to 12 home shows a year in our area where we used to have 3 to 4. In the past I was able to get discounts on the products from the manufacture for volume and shipping costs however, with that many shows the credible reason for a customer to purchase at the show has gone away as they feel that they can just go to the next show! Now it becomes a guessing game of trying to decide which shows to go to and where we will talk to the highest number of potential customers, the high cost of the show makes attending all of the impossible.

Finally, we have decided that a mass advertising campaign costing a lot less than participating in the shows offering the true discounts from the manufacture and savings from not doing the shows has worked better for everyone. We encourage the shoppers to look at the show but buy from the showroom. That way they can get most of their comparisons out of the way and are ready to make a decision when they come to the store. The problem here is that has driven some of the more high pressure companies that frequent the shows to come up with deceptive stories and high pressure tactics in order to sell at the show. I’m not willing to do that to make money..

We do attend some of the exclusive shows like the Christian Family Expo and the HBA show because of our affiliations and reputation with these groups so that we stay top of mind with them.

[East_TX_Spa]

For us, the home show is a pretty good venue.  It is the only one in town and we are the only spa dealer that bothers with it.

What we did this year was offer some packages (robes, towels, mugs, teddy bears, candy) for Valentine's and it worked well.  We sold 9 spas over the weekend (which is nice), but we got a tremendous amount of exposure by being featured on the news.

CEO

[jaw]

I did not buy at a home show.  Nor would I, the hard sell is a big turn off.  The now or lose it, that is always suspicious.

The value to a consumer of a home show, is the opportunity to see and touch many on the same floor and do at least a visual comparison.

That is it.

As Stuart said, and I figured, maybe higher volume meant a discount from the MFR, but as more and more shows and fairs occur, less and less sales take place.

[Chas]

Markets vary and there are no hard and fast rules. You must know what the price was at the dealership before you go to a show.

We aren't currently doing shows. This may change in the near future. If there is a show going on in our area, we offer a 'show special' which is a package deal on lifter, ozone, remote and so on. It is a real savings, and I can do it because I'm not paying to be at the show.

I always try to close folks prior to the show, and I advertise on the flier at the show and in the paper (who prints a hand-out guide to the show).

[wmccall]

Since we're coming into the season of Homeshows, Steve

I'm not sure if I have seen our local Master/Hydro dealer at one of these shows.  You will let me know if they ever bring in the "big gun" won't you?   I'll buy the beer and wings.

[Chris_H]

Hey guys,

I have a few questions.

I am just curious on how dealers close their customers during the show?  Do you have a closing area (like a table and chairs)?  

Do you completely accessorize the spas on display with umbrellas, cover lifts, planters, wood wrap around’s (no jokes please), and even maybe putting one in a gazebo?

Do you put prices directly on the spas showing the savings or do you use a book during the show?  

Do you use special financing for the show?  

Do you take your most popular models?  How many models do you take?

Thanks for your time,

Chris

[wmccall]

I've seen many with special,  "let me the hell out of here" closing areas.

[drober30]

Hey guys,

I have a few questions.

I am just curious on how dealers close their customers during the show?  Do you have a closing area (like a table and chairs)?  

Do you completely accessorize the spas on display with umbrellas, cover lifts, planters, wood wrap around’s (no jokes please), and even maybe putting one in a gazebo?

Do you put prices directly on the spas showing the savings or do you use a book during the show?  

Do you use special financing for the show?  

Do you take your most popular models?  How many models do you take?

Thanks for your time,

Chris

Chris the last show I was at had everything you mentioned.

Some did not display pricing and some did. All had gazebos and accessories!

[East_TX_Spa]

Since our home show comes so early in the year, we are usually left displaying leftover 2004 units and some of the less popular ones.  We decorate the booth with gazebos, surrounds, plants and have a table and chairs right in the middle.

There is never ANY pressure to buy at the show.  I have started inviting some of my existing customers to work at my booth and this has worked out GREAT!  It's a lot more credible having someone that already owns a HotSpring Spa tell them how they've enjoyed it for 15 years instead of me trying to do so.  My customers have helped me sell a bunch of spas lately.

What the existing customer gets for their help varies from ozonators to steps to chemicals depending on how many hours they work the booth.  Everyone has been very satisfied with this arrangement.

CEO

[wmccall]

.  I have started inviting some of my existing customers to work at my booth and this has worked out GREAT!  CEO

Other than my total lack of sales ability and my occasional tendency to say, "What are you stupid?" it sounds like a great idea.