Prices

[Michigander]

We have our laminated price sheet laying on the table where everyone can see it.  Every customer that walks through the door gets the same pricing.  The only exception is our "Spa of the Month" which we have started doing this year.  Instead of putting all the models on sale at once, we feature one spa and discount it.

Terminator

I think this sends a bad message to the consumer.  I have to wait until August to get the best price from these guys?  This would definitely be a turnoff for me.  If you have a better price that you can sell the tub for, why not sell the tub today rather than 6 months from now?

[zzaphod42]

I think posting prices speaks volumes about credibility.  If you hide your prices, my impression is (and it's been seen on this board) that your prices could change depending who you're dealing with.  

My Jacuzzi dealer has a binder with the specs of all the tubs and prices related to each one, which is readily available to see by the consumer.  

Another "large brand name dealer" has a sheet that is for their eyes only.  

When you think about the big purchases in your life, houses, cars, etc, they all have posted prices.  

Again, to me, not posting prices is a tactic better reserved for a sketchy used car salesman than a hot tub dealer.

IMO...

Mark

Instead of having price sheets lying around, what about having a list of prices which the dealer is always willing to show to the customer? This shows that everyone is quoted the same price, which is important for the customer and it forces the customer to speak with a salesperson, which is important for the dealership.  

[East_TX_Spa]

I think this sends a bad message to the consumer.  I have to wait until August to get the best price from these guys?  This would definitely be a turnoff for me.  If you have a better price that you can sell the tub for, why not sell the tub today rather than 6 months from now?

I certainly understand your point of view and that was something we considered before enacting this.

Bottom line is that we have lowered our profit margin per spa this year in the hopes of increasing the number of spas sold.  Each month, we will pick one of our most popular spas and discount it even further hoping to pre-sell several truck loads.  This is an incentive for us in that we can order our trucks and we don't have to guess which models and colors we will have to sell, they're already sold.

For the benefit of the customer, they come in looking to buy a Sovereign.  It is offered at a very good price.  When they find out they can get a bigger, more luxurious Envoy for just a few hundred dollars more, they go with the spa of the month.  They're happy they got a great deal, we're happy because our trucks come in, we unload them, and take them directly to the customer instead of the showrooms.  I've pre-sold 2 trucks of Envoys in the last 3 weeks.  Everybody wins!

Terminator

[jsimo7]

What is your truckload special price in Envoys??

[East_TX_Spa]

$7845 for the spa, cover, delivery, and water care products.  CoverCradle, Ozonator, Steps, SpAudio all extra.  Normally sell it for $8845 spa only.

Terminator

[J._McD]

Michigander, First, this is NOT a luxury product, but a discretionary one.

Secondly, We guarantee your satisfaction or your money back, because it is our job to satisfy our customers, and we have been in business for more than 21 years and handling a particular brand for more than 16 years.

You said, “Until I need service the value of the service is nothing”  If you don't value service, than you must not expect it.

But then, Why would you expect, as you say “the service should be just as luxurious.”

You state, "Which dealer has the best service after the sale?  The guy who charged the most or the guy that charged the least?"

That is a very interesting question.  The guy that charged the most is more likely to be there for you when you need him.  The guy that charged the least, well, you take your chances don’t you?  He may still be in business, he may still be handling the same brand and it may take him a week or two, or three, in the winter and then who said it will be free.  

Then there is always the service charges, trip charges or “reasonable repairman mileage charges and freight.”

You say, “I have to take the word of the guy who is selling to me on the value of the service.”  Yes you certainly do.  But then, have you no faith in relationships?

Again, “The place where I bought the tub from said that the price they quoted was the best price they could give on the tub.  So when I pushed him for extras he said no. When I shopped him (other dealers not letting them know the price I got) no one came close.”

I don’t believe that.  That would be unusual.  They usually will match the price.

[Spatech_tuo]

Until I need service the value of the service is nothing.

This is kind of like health insurance IMO. Those who are unfortunate to have to utilize it see the value up front. However, those who are healthy and rarely see a doctor probably also see the value in having health insurance as they have peace of mind that when they have a problem they have coverage.

I would hope you would not need to utililize your spa's warranty to see the value of it.

[J._McD]

Mowgli,

if you think comparing prices on this board is a waste of time, why have you been so prolific in doing so.  I have found it to be very insightful.  

You say, “I have to laugh at all this talk about the "fear factor”. (Do you not FEAR paying too much?)  A spa in most cases is a luxury purchase.  You are just shopping for a hot tub, it should be an enjoyable experience.

A Hot Tub is a discretionary purchase that we may choose to purchase and enjoy.  It is an enjoyable experience until it turns into a passion to find the cheapest price.  Find your price point and buy.  

When you take everybody’s time to learn about what they sell, they should at least have the opportunity to get your business.  Knowing a little bit about pricing and service sure helps to be able to make that decision.

Some people shop the shows and get really ripped.  That is really a shame.  I am sure if you had some level of expectation you surely wouldn’t be pressured into a deal from a traveling salesman making promises that will never come true.

[mowgli1]

The American Heritage dictionary defines luxury as " something inessential but conducive to pleasure and comfort" Sounds like a hot tub to me.
I stand by my statement about comparing prices. If  you are not getting prices in your market  the comparisons won't be of much value. I don't need you to tell me to find a price point and buy. I will buy when  I move to Tucson from a local dealer. None of the dealers I have talked to in Michigan have hesitated to give me information. I told them upfront about moving.
So lighten up on the fear and relationship crap. People are just shopping for hot tubs not transplant surgeons

[J._McD]

mowgli,

Discretionary = giving somebody authority to decide, giving somebody the freedom to make a decision according to individual circumstances.

Sorry to pull your trigger, I didn’t mean to dump in your wheaties.

I am certain dealers have given you meaningful information at their expense in both time and material.  This becomes part of their cost of entertaining uninterested shoppers who expect to buy elsewhere, when they get there.

[mowgli1]

What expense?  I was the only customer in the store on most of my visits. What materials? Their time to answer a few questions?   Also don't steal Stuart's lines.  They are funny when he uses them.

[poolboy34]

ok................it's settled then Hot tubs and spas are "Luxury items for those with Discretionary income" or how about "discretionary Luxury item"

[Michigander]

Michigander, First, this is NOT a luxury product, but a discretionary one.


That is a very interesting question.  The guy that charged the most is more likely to be there for you when you need him.  The guy that charged the least, well, you take your chances don’t you?  He may still be in business, he may still be handling the same brand and it may take him a week or two, or three, in the winter and then who said it will be free.  

Then there is always the service charges, trip charges or “reasonable repairman mileage charges and freight.”

Not to get too far in the details on my specific example, but the dealer that charged the least had been in the business longer.  The delear that wanted to charge more also charged a service fee.

The overall point of my post was to show that consumers (me) see the product we want to buy.  We do not see the service until we need it  then the value proposition still comes into play.  Not that the service is worthless.

Just like health insurance?  If my hot tub breaks at most I am out the cost of the Hot Tub.  If something happens to me the most I am out is many many many hot tubs.  Additionally the premiums I pay to my health insurance help offset the expense for my fellow coworkers who use the service. (BTW I do healthcare consulting, and if you would like some advice as to what level of policy you are buying for a fee I will provide consultation) This seems like one of those scare tactics that dealers use to sell their service plan.  Are you selling a quality spa?  Does the company (not the dealer) stand behind the product?  Tommy Boy quote coming...  "I could stick my head up a bull's butt to get a good look at the steak, but I would rather take the butcher's word for it.  

[J._McD]

Seems reasonable to me, service is a non-issue until we need it and it is not a factor in the price, but will they be there when you need it?  When you pay too little, sometimes the sweetness of a lower price is canceled buy the bitterness of poor service, sometimes leading to disappointment and anger.  

That’s when you come back to post how bad the guy is, but the price was cheaper and he took the business away from the other dealer, but then, not only was his price higher, you say he charged a service fee.  I see that you charge a fee.  Why is that?

We do sell a quality spa and have been selling this particular brand for more than 16 years.  How long has your dealer, the cheaper one, been selling the brand you bought?  Did you check either of them out with the BBB?  Maybe that could reveal how well they care for their customers and help with the decision factors.

BTW, whenever I go to the doctors, or pick up a prescription or have testing done, they charge me either a co-pay or sometimes a deductible.  Why wouldn’t everything be free or fully covered so I don’t have to pay anything?  

Tommy Boy is right, sometimes it is best to take the word of someone who knows.

[Soakin]

Back to the original question.... As a consumer, I prefer to see prices posted in the store, along with pertinent information such as seats, pumps, jets, etc -- what makes this model different from the one sitting next to it.  

Unless you have already settled on a particular model, there is a lot of info to process.  I don't even know which questions to ask until I have shopped for awhile, and it is nice to be able to look around on my own, walk back to the model I looked at first and see how it compares to the one at the end of the row.  Then I'm ready for some help.


As far as dealer concerns regarding customers walking out without making contact.... if the only way you can get your salespeople to talk to a customer is by forcing to customer to ask for prices, I think it is time to consider a new salesforce!

In regards to the question regarding whether I would be satisfied that the posted price is fair, and feel no need to negotiate... if you make it clear to customers that you offer the same price to everyone, I'll accept that ... after asking if you can do a little better on the tub I want!  If I were you I would make sure to play up the respect angle -- "we don't play games here, we offer our best price to everyone."  Even then, it will be hard to convince some potential buyers that your tub at $7000 everyday is as good a deal as the competitors "$10,000 tub that we are blowing out at $6999.99, this week only!"  Good luck on that one!