In the competitive world of hot tub sales, pool and spa dealers are always looking for ways to attract a broader customer base and increase their market share.
One effective strategy? Appeal to customers of all price points. There are a number of competitively priced hot tubs on today's market that can still give budget-conscious buyers the luxury and relaxation a hot tub provides. In doing so, you'll expand your customer base, as these models can appeal to anyone — from first-time hot tub owners to those looking to purchase a secondary hot tub for their vacation home, or those simply wishing not to break the bank.
We spoke with Julie Pettis, executive vice president of Pettis Pools in Rochester, N.Y., about how this strategy has helped to increase her company's profit margins, build customer loyalty, and more.
THE BENEFITS
Pettis first entered the category of competitively priced hot tubs in the early 90s after a unique discovery. As she wandered through the rows of booths with her mother at the then MSPI show, a product caught her attention. "This booth was showcasing round, portable 120-volt, plug-in hot tubs in a spectrum of 31 colors (back then, that's how many colors they came in)," she recalls.
The hot tubs, branded Softub, jumped out to her as a fun and affordable product. "The following year (1994), we became official Softub dealers," she says. "And we quickly found the product's lower price point opened up a whole new market segment, attracting customers who had previously been unable to afford our starting hard shell tubs."
Pettis Pools has been a Softub dealer (a Softub is pictured here) since 1994. The company quickly found the product opened up a whole new market segment, expanding their customer base and increasing sales.
Now having carried the product through a number of economic events (i.e. the recession as well as the global pandemic), she says there is definitely an affordability factor with a competitively priced hot tub that gets more attention when times are tough.
"An entry-point hot tub is very palatable to a lot of people," says Pettis, "as the investment is not as high. There are more benefits than just the price tag, too. Oftentimes, these hot tubs have no site preparation, no electrical preparation, and the energy bill is lower. So when you put in all those factors, it becomes even more attractive to people — especially in times of recession."
She also finds that a competitively priced hot tub appeals to the younger demographic — which is sometimes hard to target — people with children, and even those reaching the age of retirement.
"Retirees like the simplicity," she says. "People who now have aches and pains really understand that hydrotherapy could help them, but the thought of the preparation and investment of a traditional hot tub can scare them away. They just don't want, at that point in their life, a lot of work."
This price point can also open up a bigger market to renters, particularly people who own Airbnbs, rent out their vacation homes, or even those that rent an apartment themselves. "People being unable to own a home is becoming more and more of a reality," says Pettis. "But with this price point, renters see a hot tub as something they can still enjoy, because if they do move even to another rental, they can easily take it with them."
Pettis Pools is currently on its second generation. Pictured here is Julie Pettis, executive vice president and owner, alongside John Napodano, president and owner.
UNIQUE SALES OPPORTUNITIES
Pettis has also found that her competitively priced hot tub category has opened doors to new sales opportunities, particularly the chance to get off campus.
"We find that we're able to make the most sales at fairs, festivals and home shows," she says. "Of course, most people that leave their houses to attend a fair didn't think they would be going home with a hot tub, but we find they just fall in love with the product."
And it certainly is easier on customers to make a spontaneous decision when the sales price won't break the bank. "It seems maybe less of a huge, huge purchase than splurging on a luxury hot tub," says Pettis. "This can be more of an impulsive, fun buy.
"It's also very quick from the time they purchase the hot tub to when it's delivered — the excitement does not wear off. It's almost instant gratification. They can be enjoying the tub they bought on opening day of the fair before the fair is even over."
Pettis says the company's current record for the most Softubs sold at the New York State Fair is 127 units over 12 days. "That was a good year," she says. Now, they are slowly working their way back up after the pandemic period.
"Unfortunately, during Covid, we could not attend any shows," says Pettis. "It will be nice to get back out there and do shows again at our usual level. Because at our height, we were doing 120 shows a year. Then, when things started reopening, we were at six. Now, we are up to 30 for this season, so we'll see how it goes."
A COMMON MISCONCEPTION
Pettis says there may be some common misconceptions about the competitively priced hot tub market, one being the quality of the product.
"I don't think anyone in this business would offer a product that would not be worth their customer's investment," she says. "But sometimes, it takes some education on our end to tell customers that this is still absolutely worth their investment. These hot tubs are built to last."
And that's why she thinks it's definitely a category worth considering. "There is a very strong niche for this product line, this price point. If you want to increase your business and increase sales, I strongly recommend this strategy."
This article first appeared in the August 2024 issue of AQUA Magazine — the top resource for retailers, builders and service pros in the pool and spa industry. Subscriptions to the print magazine are free to all industry professionals. Click here to subscribe.
