Great Deal on Hot Tubs?

When is a BIG DEAL no big deal? An unfortunate part of our Hot Tub industry is the “BIG DEAL”! This is when a retailer prices their hot tubs higher than they really sell them for, then discount the tub down to their real retail price. Some customers get so wrapped up in “what they are saving” they don’t notice that they are still paying more, for the spa, than they would have from a dealer who is not playing games and just offering good everyday honest pricing.

Recently Drew and I had a customer in that insisted they were going to save $5000 if they bought a competitive product because the dealer was clearing out the spas (apparently they were specially made for some resort that could not take them all and they got a really good deal from the manufacturer yada yada yada … and now they were going to pass on the savings to the potential new spa owner). I know when you read this you are thinking “ya right, and then here some waterfront property in the desert”. But in the heat of the moment the customer was going for it! What was really unsettling was the spa in question did not measure up with other products (not just ours) that sell for less , everyday.

A couple of flags on this kind of deal: There are few (if any) spas that even have that kind of profit in the price. So to deeply discount a spa $2000-$5000 the dealer would be taking a loss no matter how the story may have been spun. If there is that much room in the price then the spa is most likely damaged or a second (check the warranty –with the manufacturer).

Some dealers will sound like they are discounting when really they are not. They will quote the “Manufacturer’s Suggested Retail Price” (MSRP). MSRPs are only valid if the manufacturer hasn’t inflated their pricing so their dealers can play the pricing game and show the “Big Deal”. A true recommended retail price from a manufacturer should be an average price of what the product normally sells for under normal conditions. When a spa dealer is discounting from a manufacturer’s retail price, ask to see at least one invoice that shows anyone has ever paid that price.

Properly priced Hot tubs do not have much wiggle room. Be sure to compare what you are paying for to what you are getting. Ignore the “starting point” all that matters is where you end up. The old adages are true: If the deal seems too good to be true, it probably is.

And if you want good oats you need to pay a fair price, if you are happy with the ones that have been through the bull, well they’re a little cheaper.

-Dean and Drew At Capital Iron Spas, Victoria