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[dnjsdad]

I don't know the markup in their current model, but when I bought my Platinum Elite I the markup was just shy of 15%. I know this because they loaded the spa directly off the delivery truck onto my trailer and the invoice for the entire shipment didn't get removed, I found it when I got home.

NightRyder

I make alot of purchases at costco and if you ask they have no problem telling there MEMBERS what the profit margin is, I believe that is the main difference is that you pay a MEMBERSHIP FEE, which is why they sell for less that and there tremendous purchasing power. As for there refund policy, I dont believe after talking with there manager yesterday in depth about this tub purchase that I want to make, that Hydrospa would benefit from giving costco members an inferior product and this is why "Costco has a arrangement with every single vendor that if a item is returned to the store, the vendor will refund 100% of the cost of that item to costco" now I dont know if that is in cash or more then likely a merchandise credit off of there next order, but as a consumer that does not really matter to me.

Also, someone mentioned in a post that it would be unethical to return a spa after using it for a year, I say if it has problems in the first five years return it, it will teach the vendors to make a more reliable product going forward. Just my 2 cents for what its worth.

Thanks,

Dnjsdad

[jmendoza17]

I make alot of purchases at costco and if you ask they have no problem telling there MEMBERS what the profit margin is, I believe that is the main difference is that you pay a MEMBERSHIP FEE, which is why they sell for less that and there tremendous purchasing power. As for there refund policy, I dont believe after talking with there manager yesterday in depth about this tub purchase that I want to make, that Hydrospa would benefit from giving costco members an inferior product and this is why "Costco has a arrangement with every single vendor that if a item is returned to the store, the vendor will refund 100% of the cost of that item to costco" now I dont know if that is in cash or more then likely a merchandise credit off of there next order, but as a consumer that does not really matter to me.

Also, someone mentioned in a post that it would be unethical to return a spa after using it for a year, I say if it has problems in the first five years return it, it will teach the vendors to make a more reliable product going forward. Just my 2 cents for what its worth.

Thanks,

Dnjsdad

Good point, but again I'll say this. Returning a spa is neither easy nor fun, so research thouroughly and choose wisely.

[Spa User Guy]

HotSpring dealers only mark their spa up $10 over wholesale.

Terminator

Out of curiousity and I expect this is likely proprietory information, about how much is that over invoice price? This too would vary depending on location as well would it not Mr. Terminator?

[East TX Spa]

Out of curiousity and I expect this is likely proprietory information, about how much is that over invoice price? This too would vary depending on location as well would it not Mr. Terminator?

About $10. Dealers closer to the factory only mark theirs up $5, or so I've heard.

Mr. Terminator

[wesj53]

Hydro Spas is cutting their own throat by putting spas at Coscto, so is Hot Spring. The dealers are going to be hurt by this and that will cause severe financial stress to those companies, which will ultimately result in them going out of business or being bought off like Jacuzzi/Sundance was. How many dealers did Jacuzzi lose over the Costco, Home Depot concept.

Jim, only time will tell about the impact of big box store sales but your point may have some merit. When I was investigating buying the HydroSpa Omni (a dealer model, not one you can buy from Costco), there were only 2 dealers in metro Chicago at the time (about 4 months ago). When I called both of them for pricing and wet test availability, they BOTH told me they were dropping the line due to continual product failures, poor customer service response, etc. I would have been suspect if only one had told me those reasons but when both independently offered me the same story, I thought it to be true. However, there still exists the scenario you paint and that is, independent dealers will not do business with mfgs who will undercut their sales efforts by selling cheaper models thru the internet or big box stores. I am an insurance agent and many of us see a growing trend of insurers who are "experimenting" with selling auto and home policies over the internet directly to consumers via their websites. I will personally NOT do business with a company that has intentions of cutting me out of the distribution channel yet will expect me to continue to be their "good soldier" and market their products. A partnership is based on good faith on both sides. Once that faith is destroyed, that relationship is typically gone forever.

[Davidny]

HotSpring dealers only mark their spa up $10 over wholesale.

Terminator

So if the dealer cost is $7000 the end user would pay $7010? How would the dealer stay in business?

[Trigger]

So if the dealer cost is $7000 the end user would pay $7010? How would the dealer stay in business?

Volume.

That, plus the retail mark up on rubber ducks is staggering.

[East TX Spa]

So if the dealer cost is $7000 the end user would pay $7010? How would the dealer stay in business?

HotSpring dealers are independently wealthy (we all own stock in Costco) and we just sell our regular line as a cover. Selling through Costco is where we make our bread and butter, and making it on both ends as well! That's what our competitor's haven't been able to figure out. It's pure genius!

Terminator

[wesj53]

Cmon guys, we consumers know that you dealers get all those volume rebates from the mfgs too!

[Chas]

Cmon guys, we consumers know that you dealers get all those volume rebates from the mfgs too!

Really? Where do I apply for those rebates?

[Davidny]

I came here looking for info on buying a spa. I bought one (brand withheld to protect the innocent, but it is not from costco) and am rather surprised to find a lot of quibbling over what should be a relaxing experience... you should be chillin' in your spas :-)

Now I'm buying lots of waterproof goodies, I picked up a submersible phone and set up a Balboa dolphin remote to control area lights & stereo (using IR relays) and am currently in the market for a rubber duckie and towel rack...

[Roger]

... you should be chillin' in your spas :-)

I am in my spa!!!!!

[wesj53]

I am in my spa!!!!!

Don't you know Roger you could electrocute yourself having a computer in your tub with you? And here I thought you were somewhat intelligent!?

[Spa User Guy]

So if the dealer cost is $7000 the end user would pay $7010? How would the dealer stay in business?

I believe Mr. Terminator has a sense of humor. I have seen Hotspring prices vary $2000 per model or more in stores no more than 200 miles apart, so obviously the markup is much greater than $10.00 and obviously the price does vary due to location. I'm sure this is a quite profitable business, word has it some of these "Hotsprings Dealers" have been doing business for 21 years or so. Like any business you gotta make a profit to stay in business.

[East TX Spa]

I believe Mr. Terminator has a sense of humor. I have seen Hotspring prices vary $2000 per model or more in stores no more than 200 miles apart, so obviously the markup is much greater than $10.00 and obviously the price does vary due to location. I'm sure this is a quite profitable business, word has it some of these "Hotsprings Dealers" have been doing business for 21 years or so. Like any business you gotta make a profit to stay in business.

I do want to apologize for being somewhat lighthearted on these forums. I should take things a bit more seriously as I realize that we are talking about hot tubs, after all. I will try to be more serious in deference to the subjects being discussed.

I, too, have seen somewhat nefarious pricing structures, as recently as this past week and right down the block from my very abode! The Little Tyke Spa Company was in town with a bunch of damaged spas for sale. They had cracks in the shells, blisters, warped cabinets, missing jets, etc. The people who were lucky enough to visit with them were sold spas that "normally" cost $9700 for $4700 because the shell had a barely noticeable crack in it. After all, a $5000 discount for a cracked shell seems reasonable, doesn't it?

Just think of all the poor suckers that paid $9700 for this spa! Those guys on the side of the road are angels straight from Heaven, I tell ya! Pure angels!

Terminator

[Stevie]

I believe Mr. Terminator has a sense of humor. I have seen Hotspring prices vary $2000 per model or more in stores no more than 200 miles apart, so obviously the markup is much greater than $10.00 and obviously the price does vary due to location. I'm sure this is a quite profitable business, word has it some of these "Hotsprings Dealers" have been doing business for 21 years or so. Like any business you gotta make a profit to stay in business.

$2000?? Ummm, I call BS.

And for those dealers that have been in business 20+ years, I commend them! These are dealers that have a long term business plan and obviously treat their customers right. You can't stay in business that long without doing MANY things that surpass the industry standard.

Hat's off to you!

[Chas]

The Little Tyke Spa Company was in town with a bunch of damaged spas for sale. They had cracks in the shells, blisters, warped cabinets, missing jets, etc.

Those guys on the side of the road are angels straight from Heaven, I tell ya! Pure angels!

Terminator

Wow - it looks like somebody dropped a HotSpring on it or something!

[Spa User Guy]

$2000?? Ummm, I call BS.

And for those dealers that have been in business 20+ years, I commend them! These are dealers that have a long term business plan and obviously treat their customers right. You can't stay in business that long without doing MANY things that surpass the industry standard.

Hat's off to you!

Stevie,

Hate to have to prove you wrong but I'm going to to so. I'm not kidding call for prices in Portland, Oregon or Seattle, Washington. Then call Kennewick, Washington, No BS, no brag just fact. These locations are about 200 miles apart and I guess prices are relative to the higher cost of living in Portland and Seattle. Sometimes it sux to live in the big city, costs more for some commodities. Don't get me wrong, I don't blame the dealers..business properties are more expensive to own and operate in those locations too. I have no affiliation with Hotsprings or the dealer in Kennewick, but I can recognize his prices are really reasonable based on prices I have seen posted in here, so I thought I'd spread the truth. Obviously there is some serious markup on spas regardless of what some of the dealers jokingly want us to think, just like cars and other things. As a consumer you have to bear this in mind and try to get the best deal you can by shopping around and sifting through the sheep dip.

[East TX Spa]

Obviously there is some serious markup on spas regardless of what some of the dealers jokingly want us to think, just like cars and other things. As a consumer you have to bear this in mind and try to get the best deal you can by shopping around and sifting through the sheep dip.

It's true and this is excellent advice.

Terminator

[Trigger]

Stevie,

Hate to have to prove you wrong but I'm going to to so. I'm not kidding call for prices in Portland, Oregon or Seattle, Washington. Then call Kennewick, Washington, No BS, no brag just fact. These locations are about 200 miles apart and I guess prices are relative to the higher cost of living in Portland and Seattle. Sometimes it sux to live in the big city, costs more for some commodities. Don't get me wrong, I don't blame the dealers..business properties are more expensive to own and operate in those locations too. I have no affiliation with Hotsprings or the dealer in Kennewick, but I can recognize his prices are really reasonable based on prices I have seen posted in here, so I thought I'd spread the truth. Obviously there is some serious markup on spas regardless of what some of the dealers jokingly want us to think, just like cars and other things. As a consumer you have to bear this in mind and try to get the best deal you can by shopping around and sifting through the sheep dip.

I don't get your point in relation to your statment that you are proving steve wrong?

You say there are price differnces between indepedent dealers hundreds of miles apart and claim you also understand why. I agree that as with most purchases, you need to shop around, but other than your last sentence, I'm at a lose for your post?

Did I miss something?

(and after waking up). Um. never mind. I see the poitn of issue. The $2000 differnce. (the quote feature lately hasn't been working well in my browser lately and the first part got lost in my browser). Sorry.

2000 grand differnce? I think that's significant.

[paintnsunni]

I was personally able to negotiate $1800.00 off the "I Think so dont shoot me" $10,600.00 list on sovereign" I do live in the city but I assume the factory charges the same to each dealership? That would make sense.

[Guzz]

I was personally able to negotiate $1800.00 off the "I Think so dont shoot me" $10,600.00 list on sovereign" I do live in the city but I assume the factory charges the same to each dealership? That would make sense.

The quote of $10,600 for a sovereign is so way off, you are either exagerating, or the sales person saw that you were a "negotiator", and he increased the price on you so you would feel good about getting a perceived "deal". Depending on the market, and what's included, you should pay around $7500-$8500.

[jmendoza17]

Can someone please repost info on direct buy?