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.
