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What's The Typical Spa Price Markup?


craighaggart

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There is no conspiracy going on in the spa world There is nothing driving up prices to an artificial high. ...Just like everything else the market settles in as businesses compete so what you really need to do is to shop around and compare as that's the way to gauge what you're seeing.

I don't think there's any sort of pricing conspiracy, and I pretty much agree with everything you said.

Just to be clear here, the sole reason I started this thread was because I basically do "come from another planet" when it comes to spa pricing: I have never bought one before and had no knowledge of the pricing setup. I joined this discussion forum to learn and to be at least a slightly educated consumer when it came time to negotiate the price -- and negotiate I will, regardless of how offensive that might be to certain spa dealers on this forum. As I have said again and again, a spa is an expensive luxury item. If I don't feel as though I'm getting a good deal, I simply won't buy it.

A full retail "take it or leave it" pricing strategy might work with some people, but it certainly does not work with everyone (ask any car dealer) and it is least likely to work with products that cost a lot, are widely available, and are not necessities. Things like ... spas.

-Craig Haggart

Sunnyvale, California

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I joined this discussion forum to learn and to be at least a slightly educated consumer when it came time to negotiate the price -- and negotiate I will, regardless of how offensive that might be to certain spa dealers on this forum. As I have said again and again, a spa is an expensive luxury item. If I don't feel as though I'm getting a good deal, I simply won't buy it.

A full retail "take it or leave it" pricing strategy might work with some people, but it certainly does not work with everyone (ask any car dealer) and it is least likely to work with products that cost a lot, are widely available, and are not necessities. Things like ... spas.

-Craig Haggart

Sunnyvale, California

A dealer who gets upset with a haggler doesn't get it just as a haggler who gets upset with a dealer who won't haggle doesn't get it. The dealer has the option to set a price for everyone to make a specific margin overall or they can price variably where they gets the same average but some pay more and some pay less(the hagglers). The customer has the option to say thanks but no thanks and walk away. Neither should take it personally.

BTW, my neighbor got a Saturn about 10 yrs ago and being that I could be honest I admitted I could never buy one for one simple reason. I am VERY much a haggler and I don't want to pay the same as everyone else, I've gotta work it. With the dealers I know some typically leave some haggle room, some far less. I've seen great special sale weekends where the price is definitely a deal but there is no room to move and a few have been turned off because they really need to get that "extra" offl but they don't realize the price is really really good for that weekend but it is not variable because it's not raised to the midpoint like Saturn does (not the normal sale granted). The comsumers can't really know so go right ahead and try to get the best deal you can though I will tell you that the best way to do it is to be firm AND respectful (some think they need to be an ass to get there).

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A dealer who gets upset with a haggler doesn't get it just as a haggler who gets upset with a dealer who won't haggle doesn't get it.

I agree once again with all you've said! I'm probably not all that much of a haggler in most cases, but with something like a car or a spa I couldn't feel comfortable just coughing up "list price" without trying to do better. With such an expensive purchase even a small discount can represent a fairly large amount of money.

-Craig Haggart

Sunnyvale, California

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I agree once again with all you've said! I'm probably not all that much of a haggler in most cases, but with something like a car or a spa I couldn't feel comfortable just coughing up "list price" without trying to do better. With such an expensive purchase even a small discount can represent a fairly large amount of money.

-Craig Haggart

Sunnyvale, California

But what do you do if you see something that shows a suggested list price and than is being offered at a discount of say $2000.00 if you saved another $500.00 what are you saving 500.00 or 2500.00 at what point is there a real bottom line and a real savings.

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For some reason, when talking about spas, people always seem to compare them to cars when speaking about pricing issues. I do not think they are same type of purchase and therefore, should not be assumed it is haggling type of purchase. In this day and age, a car is a must have item, it is difficult to survive without them. While some cars are basic forms of transportation and others are luxury class, it still does not compare to a Hot Tub, which is an enjoyment/relaxation item. It is true some spa dealers will increase their price, then allow the consumer to negotiate down, to what would be the regular selling price. Most spa dealers including myself, set the lowest price available, giving every person the same honest value, 365 days a year. If your brother or neighbor walks into our store, 2 months after you, they will be quoted the same price you were. And we include everything except the kitchen sink. Every spa comes with a deluxe cover, leisure concepts cover lifter, chemicals, steps, led light, delivery, setup and indoctrination. So, no need to haggle over extras, because everything is included. Most people appreciate the no nonsense approach and the value that they recieve, backed by service that is second to none. Yes, there will be just a few folks that will walk away, because they wanted to haggle. But, in the long run, even those folks,when they go out and shop,they make the comparison of what you are offering to the competition and probably will return later to purchase. Dave.

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Very nice Spa Guy. I wish all dealers worked like you do. Unfortunately, most don't and are harder to deal with than a used car salesman. I've bought just about everything in my life so far and buying a spa was the worst experience ever. Most dealers that I dealt with were terrible. What brand do you sell? It must be a good one.

For some reason, when talking about spas, people always seem to compare them to cars when speaking about pricing issues. I do not think they are same type of purchase and therefore, should not be assumed it is haggling type of purchase. In this day and age, a car is a must have item, it is difficult to survive without them. While some cars are basic forms of transportation and others are luxury class, it still does not compare to a Hot Tub, which is an enjoyment/relaxation item. It is true some spa dealers will increase their price, then allow the consumer to negotiate down, to what would be the regular selling price. Most spa dealers including myself, set the lowest price available, giving every person the same honest value, 365 days a year. If your brother or neighbor walks into our store, 2 months after you, they will be quoted the same price you were. And we include everything except the kitchen sink. Every spa comes with a deluxe cover, leisure concepts cover lifter, chemicals, steps, led light, delivery, setup and indoctrination. So, no need to haggle over extras, because everything is included. Most people appreciate the no nonsense approach and the value that they recieve, backed by service that is second to none. Yes, there will be just a few folks that will walk away, because they wanted to haggle. But, in the long run, even those folks,when they go out and shop,they make the comparison of what you are offering to the competition and probably will return later to purchase. Dave.

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Tyler,

Thanks, for the compliment. I sell Artesian Spas and could not be more pleased with the company and the products they manufacture. Sitting on your side of the fence, I quess it can be very difficult for a consumer,to shop for a spa. Not all brands or dealers are created equal. We have always taken a low key, low pressure approach, with no fake sales or gimmicks, just the same low price everyday. We don't bash the competition and we recommend wet testing, to be sure which spa is best. Maybe it is the right way, maybe not, but it works for us. After my 20 years in the spa biz, I agree with you, that the spa industry still has a lot of room for improvement, to break away from the used car sales mentality. Maybe, if the top manufacturers starting working together, instead of against each other and spent more time training spa salespeople and techs to be spa professionals and promote the positive benefits of spa ownership, maybe then more people will have a desire to shop for a spa. Otherwise, we will continue to lose sales to Boats,

Jet Skis, RV's and Big Screen TV's. I also, think our regional Industry Pool and Spa Shows, should be open 2 additional days, for the public to view all of the new spas each year, without the pressure of pricing or sales.

Goodluck and Enjoy the Hot Water! Dave.

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Having bought our spa about four months ago, the headache of haggling is still quite fresh with me. One thing I learned was to keep service in mind...it's not always all about price. After wet tests, we narrowed our choice down to two. One was at a large chain with a bad reputation and the other was at a spa company store. The chain was willing to toss in more freebies, but we ended up buying the other spa based on the wet test. They told us they would offer great service after the purchase, but we didn't know whether to believe them. Now that we have the spa, they have indeed been there for us to answer questions and do a little hand-holding. I really don't think we would have gotten that kind of service at the chain. In addition to asking about prices and haggling, ask for some references and call them! We had a neighbor who purchased the same spa before us and who was happy with the service; now another person bought the same one based on our recommendation and theirs. The follow-up is worth a lot; chains may haggle because they want to quick buck, but a store with fair but inflexible pricing may well be more stable.

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Having bought our spa about four months ago, the headache of haggling is still quite fresh with me. One thing I learned was to keep service in mind...it's not always all about price. After wet tests, we narrowed our choice down to two. One was at a large chain with a bad reputation and the other was at a spa company store. The chain was willing to toss in more freebies, but we ended up buying the other spa based on the wet test. They told us they would offer great service after the purchase, but we didn't know whether to believe them. Now that we have the spa, they have indeed been there for us to answer questions and do a little hand-holding. I really don't think we would have gotten that kind of service at the chain. In addition to asking about prices and haggling, ask for some references and call them! We had a neighbor who purchased the same spa before us and who was happy with the service; now another person bought the same one based on our recommendation and theirs. The follow-up is worth a lot; chains may haggle because they want to quick buck, but a store with fair but inflexible pricing may well be more stable.

I totally agree that it is not always about price, and to keep service in mind. I paid a little more for my spa than what i would have elsewhere, but the service is there. This isn't a plug for my dealer, but the guys at "Coconut Bay" in Thunder Bay have been awesome to me. They really didn't haggle with the price much (a little though), but there were a lot of extras they threw in to sweeten the deal. On delivery, Jim (owner) was great helping get it set on my deck and even giving my a few helpful hints for setting it up and enjoying it. They have helped me over the phone as well as in person, always making sure i am completely happy, and tossing me a product sample or something (like a little arctic spa bear for my daughter when i was in asking questions and she was with me). They respond to me quickly and with great eagerness any time i go into the store to have my water tested or filter cleaned or just to browse and are very friendly and service oriented. This, even after i have my spa, shows a good dealer IMO. They could be selling any other brand and i probably would have been glad to have gone with them, regardless of the tub (so long as it was quality).

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I totally agree that it is not always about price, and to keep service in mind. I paid a little more for my spa than what i would have elsewhere, but the service is there. This isn't a plug for my dealer, but the guys at "Coconut Bay" in Thunder Bay have been awesome to me. They really didn't haggle with the price much (a little though), but there were a lot of extras they threw in to sweeten the deal. On delivery, Jim (owner) was great helping get it set on my deck and even giving my a few helpful hints for setting it up and enjoying it. They have helped me over the phone as well as in person, always making sure i am completely happy, and tossing me a product sample or something (like a little arctic spa bear for my daughter when i was in asking questions and she was with me). They respond to me quickly and with great eagerness any time i go into the store to have my water tested or filter cleaned or just to browse and are very friendly and service oriented. This, even after i have my spa, shows a good dealer IMO. They could be selling any other brand and i probably would have been glad to have gone with them, regardless of the tub (so long as it was quality).

41 degrees F for a high here in Duluth yesterday!!! What is it Jan.13th? or March 13th Canceling ice fishing contests and hole drilling festivals all over the state. only 12-13 inches of ice on the local lakes. Usualy 24-36 inches by now. Great snomobiling cause we got a pile of snow but it's melting!!!! What's going on in Thunder Bay.

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  • 3 weeks later...

41 degrees F for a high here in Duluth yesterday!!! What is it Jan.13th? or March 13th Canceling ice fishing contests and hole drilling festivals all over the state. only 12-13 inches of ice on the local lakes. Usualy 24-36 inches by now. Great snomobiling cause we got a pile of snow but it's melting!!!! What's going on in Thunder Bay.

Spa price markups = 30-40percent. Does anyone disagree?

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  • 1 year later...

--HotSpring dealers only mark their spas up $10. But, they sell a lot of spas.

Terminator_

And who is the liar? :wacko::lol:

From what I can tell your mark ups are about 200% from wholesale.

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"-HotSpring dealers only mark their spas up $10. But, they sell a lot of spas.

Terminator_

And who is the liar? :wacko::lol: "

You seem to have answered your own question.

B)

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My mother told me to be leary of people who call themselves "nice guys" really!

Those are the "Wolves" in sheep's clothing.

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My mom told me to be leary of guys who call themselfs Eletrical Engineers, or the only reliable source for something. Anybody who self proclaims themselfs usualy is hiding something.

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Does anybody doubt, why I think the spa industy is disgusting in this country?

Iti is people like this guy who represent these companies and pretend to be owners and shoppers all over these message forum.

This guy is a shill for hot spring spas and he pretends to be something else.

I think that by the time I get through with this industry in my expose there will not be any Hot Spring spas.

Most of you disgusting sales people will be out of work, and there aren't any other industrys that sleaze bags fit in so well.

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Jim

I dont work in the hot tub industry. You know that. But if you want to come in here and "carpet bomb "these forums to try to drum up business for your failed company, insult people here, and speak of junk science I am going to throw it back at you.

You see, you moron, the dealers here won't talk trash (Unlike you DO). They are proffesionals. But since I am not in the industry, I have aboslutely not problem pointing out your LIES, your short commings, your falsehoods and all the garbage that you spew.

YOu come here as a salesmen and toss crap around.

I'm a specatator and I throw right back at you, because I know the rock you craweld out from under.

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