Wow, Hot Spring Highlife selling at Costco.

[wmccall]

re: Murray mowers sold more mowers each year at Wal-mart but ended up a bankrupt company.

I have heard Walmart really really really beats their vendors down on price.

I can personally attest to that. A good example was Sunbeam Blenders. Well known, but not a dominating force. Walmart forced them to sell a top of line blender to them below cost so they could have it as a day after Thanksgiving loss leader.  What you don't want to do that? I guess you don't want to sell to Walmart!

Where they really beat their vendors down is where they private label things and they are made by more than one company. Walmart tells company A and B that the other will produce them cheaper and they will buy more from them.  The public doesn't see the difference unless you can read bar codes.

[Warkovision]

OR, it will be the first step in eliminating the local dealerships. Since hot tubs are rapidly becoming appliance grade in reliability, they will no longer need the local dealer to take care of things. Sell all spas through Sears, Costco, Sams Club, Kmart, wall mart, Lowes, Home Depot, Menards, etc...All you need is a few appliance repair technicians in place to perform warranty service...bye bye local dealer! Is that a good enough reason to be pissed Term?

I'd be really leary of this setup as far as customer service goes. I've had my HS Vista for less than two years now and I've already had the auxiliary control panel replaced twice, one diverter valve replaced, a new grommet put on the water feature valve, and a jet replaced. I called my dealer and all was taken care of pronto. I'm kind of scared as to what will happen when I cross the five year mark though.

[salesdvl]

It should be the same procedure as now only instead of "OK sir, you're all set".  It will be "OK sir, you're all set, that'll be $300."

[hymbaw]

 However, we also haven't marketed or sold to that customer.

Watkins is also taking a smaller margin on the Costco spa (so they tell us).

If you advertise at all you HAVE marketed to that customer!! You probably pitched them a Sovereign, but you're right you DIDN'T sell them!

Watkins is taking a BIGGER margin.....Theirs plus the one that was intended for you!!

I understand that HS didn't consult with you before doing this and that you didn't have a choice, but to think this will benefit the dealer network is a reach. HS has some fantastic dealers with HS exclusive showrooms. I guess the exclusivity was only one way. HS is what they are because of their dealers, and this looks like a slap in the face to me. I respect the product and especially the dealers that I've come into contact with(in life as well as on this board). I feel for you and truely hope the benefits they are promising come to fuition.

Peace out, Much Love

[East_TX_Spa]

Just part of a much bigger plan.  I'm sure all the other major spa companies are working on 5 and 10 year plans as well that their dealers may or may not be aware of OR PART OF.

It's capitalism at work.

Beats the alternatives.

Terminator

[hymbaw]

Just part of a much bigger plan.  I'm sure all the other major spa companies are working on 5 and 10 year plans as well that their dealers may or may not be aware of.

It's capitalism at work.

Beats the alternatives.

Terminator

Depends where you are on the food chain.

[East_TX_Spa]

Depends where you are on the food chain.

And if you've made preparations for a rainy day.

That's where our SeaMonkey brand comes in to play.

Noah Middleman sez:
"Hell, don't pay retail!  Buy 'em duhrect from de factry! We tain't gonna be unnersold!"

[SerjicalStrike]

You said taint  

[Wisoki]

Well it aint yer hiney and it aint yer va&!ney....and I just want to keep this at the top for a while. You know, Part of the BIGGER PLAN!

You said taint  

[Zep]

re: I've had my Hot Springs Vista for less than two years now and I've already had the auxiliary control panel replaced twice, one diverter valve replaced, a new grommet put on the water feature valve, and a jet replaced.

Whoa!  

[East_TX_Spa]

All piddlin' things that have been identified, corrected, and will be replaced.  Not to worry.

Terminator

[Vinny]

re: I've had my Hot Springs Vista for less than two years now and I've already had the auxiliary control panel replaced twice, one diverter valve replaced, a new grommet put on the water feature valve, and a jet replaced.

Whoa!  

As I said earlier ... they ain't Maytags ... but then again neither are Maytags anymore. They breakdown almost as much as HS spas!

[East_TX_Spa]

700,000 and counting.

I wonder who's in second place?  I believe it goes something like this:

1. HotSpring Envoy
2. HotSpring Sovereign
3. HotSpring Vanguard
4. Sundance/Jacuzzi
5. HotSpring Jetsetter
6. Not sure, it really drops off from here on out.

Terminator

[Chas]

 

[stuart]

I went through this a few years ago with Vermont Castings...

They put a lower end line into Home Depot and told us that it would not even compete with us dealers.

I can't tell you how many times a customer that I sold on the quality of VC bought a cheaper one from Depot and said "yeah it was a little differant, didn't have as many features but it was a lot cheaper and hey it was a Vermont Casting after all! You really sold us on their quality!"

It's is a battle that I have fought for almost 3 years and this year they even cut our margin by 10% I'm going to drop the line and sell against them from here on out.

The shell design for that "Highlife" looks surprisingly like the Soverign that was thier top seller for so many years.

HotSpring made their name by making a simple, quality tub with good backing...when the competative race started the main line of HotSpring got pretty pricey while the Tiger River came in as the price point "HotSpring".

My guess is that if the word gets out to the general public that dealers will have a hard time maintaining their numbers out of their stores on the other models.

I don't think most dealers will feel the shock for about a year and by then it will be to late....