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itsallgood

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We got our issue of pool & spa news today and I found the article very interesting. First, I was intrigued the the lawsuit against Gulf Coast. Does anyone know specifically what this was for? Second, I thought it was very interesting that "industry insiders" said Costco was underpricing the tubs by as much as $3k. Generally, on this site, you hear that they sell a $4K spa for $4K and people are kidding themselves if they think they are getting a $8K spa at that price. Granted, I have no idea who the industry insiders are, but it does make you pause to think.

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My husband talked to Infinity today and they have bought Hydro Spa. All Hydro warrenties will be honored through Infinity. Straight from the horses mouth. Hubby grew up in the industry since he was nine yrs. old, he has seen alot of crap fly but none like this. Ok , maybe that one time with Leisure Life trying to come back and Cal X to impersonate Cal Spa, it didn't last long!

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I talked with hubby about that last night 104. The wording was vague and again, we don't know who the insiders are. I tried to apply common sense and came up with this. Costco tells hydrospa they will buy x amount of units if hydrospa can supply them at a certain price. Hydrospa is thrilled, sits down in a board meeting and tries to figure out how they can sell their tub to costco for x amount of dollars. Someone suggests, for example, that they use a different kind of fitting because they can save money there. Possible, they go to one of their suppliers and says they can throw them alot of business if they can sell them a particular part cheaper. This supplier sits down and does the same things; tries to figure out how they can cut their cost. Everyone completely changes their operations and expands their companies to satisfy Costco. For awhile, everyone is happy. Consumers are able to buy an affordable spa and manufacturers are producing more product then ever before. In the end, the proverbial "putting all your eggs in one basket" prevails and many people lose their jobs. Getting back to "does anyone really think they can sell their spas for $7,500", probably not. I think they trimmed the fat as much as possible to produce their tubs at as low a cost as possible to gain Costco's business. I do think that consumers got a good deal on the spas, as long as they didn't think they were getting a top of the line spa. While common sense is not always correct, it does tell me that Hydrospa was not making huge profits on the units, or they wouldn't be in the position they are in now.

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I talked with hubby about that last night 104. The wording was vague and again, we don't know who the insiders are. I tried to apply common sense and came up with this. Costco tells hydrospa they will buy x amount of units if hydrospa can supply them at a certain price. Hydrospa is thrilled, sits down in a board meeting and tries to figure out how they can sell their tub to costco for x amount of dollars. Someone suggests, for example, that they use a different kind of fitting because they can save money there. Possible, they go to one of their suppliers and says they can throw them alot of business if they can sell them a particular part cheaper. This supplier sits down and does the same things; tries to figure out how they can cut their cost. Everyone completely changes their operations and expands their companies to satisfy Costco. For awhile, everyone is happy. Consumers are able to buy an affordable spa and manufacturers are producing more product then ever before. In the end, the proverbial "putting all your eggs in one basket" prevails and many people lose their jobs. Getting back to "does anyone really think they can sell their spas for $7,500", probably not. I think they trimmed the fat as much as possible to produce their tubs at as low a cost as possible to gain Costco's business. I do think that consumers got a good deal on the spas, as long as they didn't think they were getting a top of the line spa. While common sense is not always correct, it does tell me that Hydrospa was not making huge profits on the units, or they wouldn't be in the position they are in now.

Great reply :D

The one thing about the hudro spa i was hearing was, if it started when first pluged in, it would leak :o

Think about it.

John

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I talked with hubby about that last night 104. The wording was vague and again, we don't know who the insiders are. I tried to apply common sense and came up with this. Costco tells hydrospa they will buy x amount of units if hydrospa can supply them at a certain price. Hydrospa is thrilled, sits down in a board meeting and tries to figure out how they can sell their tub to costco for x amount of dollars. Someone suggests, for example, that they use a different kind of fitting because they can save money there. Possible, they go to one of their suppliers and says they can throw them alot of business if they can sell them a particular part cheaper. This supplier sits down and does the same things; tries to figure out how they can cut their cost. Everyone completely changes their operations and expands their companies to satisfy Costco. For awhile, everyone is happy. Consumers are able to buy an affordable spa and manufacturers are producing more product then ever before. In the end, the proverbial "putting all your eggs in one basket" prevails and many people lose their jobs. Getting back to "does anyone really think they can sell their spas for $7,500", probably not. I think they trimmed the fat as much as possible to produce their tubs at as low a cost as possible to gain Costco's business. I do think that consumers got a good deal on the spas, as long as they didn't think they were getting a top of the line spa. While common sense is not always correct, it does tell me that Hydrospa was not making huge profits on the units, or they wouldn't be in the position they are in now.

Great reply :D

The one thing about the hudro spa i was hearing was, if it started when first pluged in, it would leak :o

Think about it.

John

Did your Hudro spa leak after you pluged it in?

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My husband talked to Infinity today and they have bought Hydro Spa.

I have a recent "confidential" communication from poolandspa.com that suggests otherwise. Interesting. Ya just never know who to believe anymore! :ph34r:

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Wouldn't their liabilities have to outweigh their assets in order to file bankruptcy?

Definitely, but $10 million vs. $13 BILLION?

Only governments can work on that kind of deficits ;)

$13 BILLION is incorrect. The number is MILLION, according to court documents. There's no way a $10-mill company would rack up debt 1300x its value. (Unless you're Enron, of course :0

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