Hydro Spa "debtor-in-possession"

[thestallion]

Thanks Spa God all that you shared makes sense to anyone who knows about spas and also about how Costco works, don't get me wrong I love shopping there but the method of doing business simply does not work with every product. I know others (manufactures of pottery who almost lost their company due the Costco account. The allure of potentially so many sales blurs the bigger picture for many a small manufacture.

[D.P. Roberts]

I met some guys who had success growing their business through big box sales (in this case, Wal-Mart), and it sounds like they tried things the other way around. They made their own line of trading cards - they secured rights for Pokemon-type games & cartoons, and sold them to small retail stores that carried such things. They then began to see that their real chance for growth was to get their product carried in Wal-Mart. So, they changed their focus - instead of trying to grow their product, they became a supplier for other lines Wal-Mart was already carrying. They serviced Wal-Mart stores in a several state area, constantly traveling from store to store to set up displays. They knew that once they established themselves as a company Wal-Mart wanted to do business with, they'd get their chance. Eventually, Wal-Mart needed a new product, and they were the first ones to come up with a product to recommend - their own. They got the contract, and were then stocking their own product on Wal-Mart's shelves. They knew how to best manage their business to meet Wal-Mart's needs, because they'd been doing just that for years. They made a mint.

I think the moral of the story is that you really need to understand the "discount big box" way of doing things before you jump into it.

[The Spa God]

Yeah, Costco is a great place to shop for food but not for large appliances like spas. A word for the wise- DO NOT BUY SPAS FROM WHOLESALE CLUBS OR INTERNET DEALERS!! Buy from a local spa dealer who you know has been in business a while and can trust will be around a while. Also make sure that they provide the service themselves. These wholesale clubs and internet dealers do nothing but sell them. They do not service them and want nothing to do with you once they have your money. The reason Costco sold them so cheap was for that reason only - they did not have to deal with finding service companies to fix them, delivering them or picking them up if they were defective. You get what you pay for!

[New NW tub owner]

Yeah, Costco is a great place to shop for food but not for large appliances like spas. A word for the wise- DO NOT BUY SPAS FROM WHOLESALE CLUBS OR INTERNET DEALERS!! Buy from a local spa dealer who you know has been in business a while and can trust will be around a while. Also make sure that they provide the service themselves. These wholesale clubs and internet dealers do nothing but sell them. They do not service them and want nothing to do with you once they have your money. The reason Costco sold them so cheap was for that reason only - they did not have to deal with finding service companies to fix them, delivering them or picking them up if they were defective. You get what you pay for!

I disagree with this. I think it's fine to buy over the internet (or from costco) as long as you know that that is what you are getting. I am a DIY guy and I never expected (nor would have wanted) some tech to come out to my house and fix my tub, if it needed it. In my case, the Costco tub option was a great one that let me get a great deal on a tub. Obviously, though, if you are not a do-it-yourselfer, it is not a good option. If I were going to buy another new tub, I would look at the tubs that are being sold on ebay which look to be good deals, as long as you can handle the installation and setup yourself. There is no way that I would have ever gone done to some dealer and plunked down 10 grand for something like a hot tub. Never.

[thestallion]

I met some guys who had success growing their business through big box sales (in this case, Wal-Mart), and it sounds like they tried things the other way around. They made their own line of trading cards - they secured rights for Pokemon-type games & cartoons, and sold them to small retail stores that carried such things. They then began to see that their real chance for growth was to get their product carried in Wal-Mart. So, they changed their focus - instead of trying to grow their product, they became a supplier for other lines Wal-Mart was already carrying. They serviced Wal-Mart stores in a several state area, constantly traveling from store to store to set up displays. They knew that once they established themselves as a company Wal-Mart wanted to do business with, they'd get their chance. Eventually, Wal-Mart needed a new product, and they were the first ones to come up with a product to recommend - their own. They got the contract, and were then stocking their own product on Wal-Mart's shelves. They knew how to best manage their business to meet Wal-Mart's needs, because they'd been doing just that for years. They made a mint.

I think the moral of the story is that you really need to understand the "discount big box" way of doing things before you jump into it.

Don't get me the wrong for some products the Big Box stores are great for everyone, consumers, manufactures for all concerned, your friends in trading cards probably had next zero cost for warranty or returns, the only risk was probably sell thu (selling whats in stock). Items like spas where the margin is small and service and returns can get quite high, my friends with pottery was breakage and Costco expected full credit for every broken pot with out question as to who the responsible party was.

[deepchillie]

Ok, I looked at the costco.ca web site today. There are only 2 brands of spa..Aruba and Infinity... where are these hydrospas?

[unhappyHYDROSPAowner]

Ok, I looked at the costco.ca web site today. There are only 2 brands of spa..Aruba and Infinity... where are these hydrospas?

Hydro Spas are in the Costco stores. Not online.

[D.P. Roberts]

Don't get me the wrong for some products the Big Box stores are great for everyone, consumers, manufactures for all concerned, your friends in trading cards probably had next zero cost for warranty or returns, the only risk was probably sell thu (selling whats in stock). Items like spas where the margin is small and service and returns can get quite high, my friends with pottery was breakage and Costco expected full credit for every broken pot with out question as to who the responsible party was.

Don't get me wrong, I'm agreeing with you completely. I'm saying that you not only have to have the right product (like trading cards, but NOT spas, or apparently pottery), but you also must have the right business plan and organization to carry it out. If the stories posted above are true - and I have absolutely no idea whether they are or not - it sounds like regardless of the product quality, Hydrospa had big plans for how to manufacture spas, but no plans on how to support their customers or handle repairs, returns, etc.

[jmendoza17]

The whole thing actually is sad for the employees of the company, but its probably not fair to blame COSTCO. The owners were likely lured by the allure of big profits. Their service was not equipped to handle the demands of a mass market consumer business. While many like Willard got good units, many other like myself suffered the hassle of Hydros bad business decisions. Now it's time to pay the piper.

[thestallion]

I am not sure anyone is blaming Costco, just sharing what they know. Sometimes there seems to be a very fine line between speaking openly and having that interpreted as bad mouthing or being negative.

[jmendoza17]

I am not sure anyone is blaming Costco, just sharing what they know. Sometimes there seems to be a very fine line between speaking openly and having that interpreted as bad mouthing or being negative.

True. When I first read Spa god's post, I wrongly interpreted it as blame on COSTCO. On re-reading, it appears he attributes the Hydrospa downfall to their involvement with COSTCO, with no blame intended. The scenario he paints is thus probably very accurate. I notice the NW is noticeably absent from all the reasoned exchanges.

[The Spa God]

I was not really bashing Costco - it was not really their fault - Hydro spa was just not ready for the jump from small market to nationwide in that short of time. Once they partnered with Costco their phones were flooded with calls and they did not have the manpower to handle it. They hired on more and more people but is was not enough. They even had to stop voice messages being left on their CSR's phones because they never had time to answer them. They opened up a plant in Ocala just to handle the manufacturing of the Costco spas alone while thier other lines of spas were built in Clearwater. So I think part of any manufacturing problems there might of been was done in the Ocala plant because from my experiences with fixing them, there was not THAT many problems with any other of their lines of spas but the transportation and storage on Costco's end was not that great either. So the cost of labor for employees and the cost of service bills to fix the Costco spas was their downfall. Come next week I heard they will be wiping thier hands of Costco and starting over fresh.

[jmendoza17]

I was not really bashing Costco - it was not really their fault - Hydro spa was just not ready for the jump from small market to nationwide in that short of time. Once they partnered with Costco their phones were flooded with calls and they did not have the manpower to handle it. They hired on more and more people but is was not enough. They even had to stop voice messages being left on their CSR's phones because they never had time to answer them. They opened up a plant in Ocala just to handle the manufacturing of the Costco spas alone while thier other lines of spas were built in Clearwater. So I think part of any manufacturing problems there might of been was done in the Ocala plant because from my experiences with fixing them, there was not THAT many problems with any other of their lines of spas but the transportation and storage on Costco's end was not that great either. So the cost of labor for employees and the cost of service bills to fix the Costco spas was their downfall. Come next week I heard they will be wiping thier hands of Costco and starting over fresh.

I see that now. My apologies for the misinterpretation.

[ALASKA RECREATIONAL]

Hydrospa has files Chapter 11 Bankruptcy

Sept 18th 2007

Federal filing # 078616

Info # 1-813-301-5210

They owe me $15000 for Warranty work in Washington State.

[ALASKA RECREATIONAL]

TO: New NW tub owner

I have read your posts and think you [edited] have no idea what your putting on the Internet. Do you know anymore about a Hydrospa other then how to push a lot of buttons to turn it on. Im not pissed at Hydrospa, cause they owe me $15000 ( I was there Washington State & Alaska Warranty Service co.) I have serviced about 275 Hydrospa (warranty only) over the last 12 months and a LOT more over the years.. I have a (Hydrospa Costco 2020) and LOVE it. ! Anyway call me what you want, I don't care. Cause what I post on this site is TRUE and not a bunch of BULLSHIT like most of your posts. !

HYDROSPA has filed Chapter 11

SEPT 18th 2007 am EST.

Federal filing no. 078616

Call 1-813-301-5210 (find out for youself)

Now if you need more info and since you think you know everything about Hydrospa then call

Bob or Brian Wiley (owners of HydroSpa) and tell them why they went chapter 11.

Im sure they want to hear from you

OK, New NW tub owner it's your turn.

P.S. This web site had NOTHING to do with their bankruptcy.

[jmendoza17]

how could they file as you say in October 18th as you say? that hasn't yet occured?

ALASKA REC is correct. The first meeting of creditors is on October 18. Call the number.

[blacklegend7]

"Now if you need more info and since you think you know everything about Hydrospa then call

Bob or Brian Wiley (owners of HydroSpa) and tell them why they went chapter 11.

Im sure they want to hear from you.

Alaska Rec, i think it's very immature of you to post someone's personal cell number; You have no idea who read those blogs, and i know that you wouldn't want your personal informations published over the internet.

Come on, i know you're smarter than that, use better judgement, regardless of what your position is with them on a business point.

I'm sure that if he wanted his personal cell number published, it would have been available to the public.!!

[104 Degrees]

Alaska Rec, i think it's very immature of you to post someone's personal cell number; You have no idea who read those blogs, and i know that you wouldn't want your personal informations published over the internet.

Come on, i know you're smarter than that, use better judgement, regardless of what your position is with them on a business point.

I'm sure that if he wanted his personal cell number published, it would have been available to the public.!!

How long have you worked at hydro spa??

[blacklegend7]

How long have you worked at hydro spa??

i don't work for hydro spa. i just like to read forums, on how people get at each other. It's nothing personal toward him, just a poor judgement, based on MY standards;

Keep eating your cereals, and just keep it quiet !!!

[ALASKA RECREATIONAL]

I don't work for Hydrospa. I just fix their's and several other makes of spa.

Its strange how people get pissed off at reading the truth.

[ALASKA RECREATIONAL]

Well said Stevie.

As I said in the past post, New NW tub is a IDIOT. Other post asked if he was connected to HYDROSPA

and after reading his post I can say that " Hydrospa upper management made many mistakes but having an IDIOT like him in their company could/would NEVER happen. He doesn't have a clue as to what is happening with this company. For all the rest of you Hydrospa owners please post what you thing is all these engienering problem that this company has. I only know of 1 engienering problem and it was beening worked on and a service bullitin was being made up when they filed for bankruptcy. All the tub that I serviced in Alaska & Washington State (Model 2020) have had this easy mod taken care of.

[ALASKA RECREATIONAL]

Thank You Mod.

I would like to say "Im SORRY" for my personal atack on a other member of this forum.

It sucks being so right that you are wrong in the way you did it.

Here are some fact about HydroSpa

1. They make one of the BEST hot Tubs money can buy.

2. Their parts are MADE IN THE USA. Ya, they could have got their motors , heaters and Plastics from China and Mexico at a much cheaper price meaning MORE profits for them, Yet they bought MADE IN THE USA products for their Tubs. This keeps AMERICA working !!!!!

3. Their phone answering people always tried their hardest to make

our service area tub owners happy.

4. Hydrospa's customer support in N.W. Washington had improved greatly in the last 2 years.

5. If Hydrospa comes back next months, next year or whenever. I will support and work with them to make are service area the best in the industry again.

6. Hydrospa was a GOOD company to do contract work with.

7. This web site had NOTHING to do with this Bankruptcy.

Personal note

I hope Bob & Brain can get this company going again. When this company went Chapter 11

it not only efected 150 employees from this company, but all the suppliers and dealers are greatly affected too. How about G.E. (MOTORS) BALBOA (Brain Boxes) Magic Plastic and others... These are American's and some of them will lose their JOBS. I sure this weight is very heavy on the Wiley family

and that they will do and try everthing possible to put these Americans back to work.

Thanks Bob And Brian, I still have faith that you can and will pull this off.

[Roger]

Here are some fact about HydroSpa

1. They make the BEST hot Tubs money can buy.

2. Their parts are MADE IN THE USA. Ya, they could have got their motors , heaters and Plastics from China and Mexico at a much cheaper price meaning MORE profits for them, Yet they bought MADE IN THE USA products for their Tubs. This keeps AMERICA working !!!!!

3. Their phone answering people always tried their hardest to make the

our service area tub owners happy.

4. Hydrospa's customer support in N.W. Washington has improved greatly in the last 2 years.

5. If Hydrospa comes back next months, next year or whenever. I will support and work with them to make are service area the best in the industry again.

6. Hydrospa was a GOOD company to do contract work with.

7. This web site had NOTHING to do with this Bankruptcy.

I'm sorry but you have your opinion on number 1 mixed up with some facts.

[Weltonpool/spa]

Were a small equipment repair outfit in the st. augustine area of florida and have been doing business with Hydrospa over 10 years!! My dad and I were starting to wonder about the company when we couldn't get any motors for months!!!! Now that they filed for chapter 11 we now know why we couldn't get any motors....

We must now look for another wholesale supplier with prices comparable to Hydrospa.

My question is has anyone used Horizon Pool and Spa out of Arizona? How is their staff are they knowledgable? It says on their website 2 day shipping. HydroSpa was very good for the most part about sending out orders on time!!

Anybody have some thoughts on Horizon???

Thanks

[Dr. Spa]

Been dealing with them for years, and VERY happy with them. Spa Parts Plus is also quite good.