How to increase profits on every hot tub deal by upselling ‘necessities’

by jason_cramp | March 23, 2018 12:52 pm

By Mike Genova

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Experienced retailers know how to sell hot tubs. They know how to merchandise, as well as provide financing and service to consumers looking to invest in a hot tub for their backyard. However, many retailers are still not maximizing the profit potential of various hot tub essentials available in today’s marketplace. Products such as steps, surrounds, covers, lighting, rails, tables, and more. These products are not just accessories, but are, in fact, ‘necessities’ that allow the consumer to get the most enjoyment out of their hot tub.

Further, many of these products are not only designed to enhance functionality, but also to elevate the beauty of the backyard. Selling these products allows retailers to add a minimum of $300 to $500 in revenue on every hot tub sale. Now is the time for retailers to sit down with staff and learn about all of the different hot tub ‘necessities’ that can be added to every purchase. Retailers should place these products in their showroom so sales staff never forgets to upsell at least one of these items on every deal. By setting some ‘necessities’ sales goals, retailers can watch their revenues increase, leaving less money on the table.

Start with hot tub placement

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Placement of the hot tub is the first step in creating a backyard oasis for a new client. Most retailers experienced in selling hot tubs have the necessary knowledge required to select the best location for the hot tub on the client’s property. The question then becomes which ‘necessities’ can be added to the hot tub to provide practical solutions and esthetic appeal when addressing how it is going to be used. For instance:

• Does the client need additional lighting leading from the house to the hot tub?
• Would additional steps be beneficial?
• Is a safety handrail or a hydraulic lift required?
• What about a hot tub cover that might also provide privacy or double as a movie screen?
• Will surrounding seating and storage facilities suit the hot tub space?
• What is the best way to create or integrate the hot tub into the surrounding outdoor living space?

Jamie Burson, owner of Great Bay Spa and Sauna in Portsmouth, N.H., has been selling hot tubs for more than 40 years, and says the practical issues of placement often lead the discussion directly into the selling of ‘necessities.’

“It seems obvious, but we want our customers to enjoy their hot tub year-round,” says Burson.

Learning about how the hot tub will be used and by who, allows sales staff to start talking about the additional products available to make it easier for the homeowner to get the most enjoyment from their hot tub investment.

“Our experience helps us guide the customer to the best, most practical solution, while still fulfilling their desired look,” says Burson.

Most clients come in with an idea of what they want; therefore, hot tub retailers need to be able to suggest a variety of available products to help them achieve the look they are after. Consumers that have not owned a hot tub in the past, also do not think of the practical issues of using the hot tub or what accessories or ‘necessities’ will make his/her hot tub experience more enjoyable. Suggesting and selling these products provide value to the client while helping retailers increase profits.

Lighting

Lighting is a must-have feature for a hot tub, regardless of any other accessory. Consumers want to use their hot tub during the day and evening; therefore, lighting not only enhances the beauty and ambiance of the space, but also makes getting to and from the hot tub, as well as in and out of the water, safe and easy.

Christian Staples, the owner of Arctic Spas of Utah, always sells lighting packages to his customers.

“Not only are we selling landscape lighting for around the hot tub and nearby trees, we also have had a lot of success selling lighting that is built into the steps that lead up to the hot tub,” he says.

Amanda Donoghue, who handles dealer development at Coast Spas in Langley, B.C., agrees that lighting is one of the first areas to tackle when designing an oasis in or around the hot tub.

“Lighting sets the ambiance,” says Donoghue. “For instance, interior hot tub tables that are vibrantly lit with a multi-colour light-emitting diode (LED) lights, originating at the stem of the table, are visually appealing and provide additional lighting—and of course, a place to put drinks and personal items.”

Steps and surrounds

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When it comes to hot tub steps and surrounds, one of the most important aspects to consider when including these features is determining how the client plans to get in and out of the hot tub.

“We recommend steps and surrounds to not only increase the functionality of the hot tub, but to also enhance its visual appeal,” says Burson.

In fact, most retailers sell some type of step with every hot tub they sell.

“A hot tub step accessory is typically purchased on 95 per cent of the units we sell,” says Staples. “One of the most popular type of steps we currently offer are those that include an optional solar lighting feature, which illuminate the steps leading up to the hot tub. These steps are particularly well-suited for swim spas, which is a category that is growing exponentially.”

These types of accessories are extremely popular with consumers, as they complement the way in which many use their hot tub or swim spa. To this end, several manufacturers offer steps and accessories developed specifically to create more of a hot tub oasis. Retailers can sell these products all at once or a little at a time. For instance, products such as counter cabinets, tables, bars, shelves, umbrellas, stools, towel racks, and even planters, can be integrated with the hot tub in the backyard to create a co-ordinated finished space. Retailers not only need to display these products in their stores, but also need to recommend specific accessories that will offer their customers a unique, cohesive hot tub area.

Simple storage units where towels, chemicals, and aromatherapy products can be placed within arm’s reach of the hot tub can go a long way to enhance functionality and improve the overall hydrotherapy experience.

Selling a handrail, steps, lighting, and a storage cabinet quickly adds a minimum of $300 to $500 to the sale price of a hot tub. If a retailer sells 50 hot tubs each season and is able to add $500 to every sale, they can add approximately $25,000 more in total revenue—without any additional marketing costs.

Seating

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Retailers realize many clients are hoping to make the hot tub the centrepiece of his/her backyard or patio. So having seating areas and places to put towels and other personal items is important. Retailers need to display and point out these needs and recommend ‘necessities’ such as seating and storage. Further, recommending outdoor furniture that suits the needs of the hot tub owner is also an important aspect in the design of the hot tub space.

“We sell an outdoor furniture line comprising benches, chaise lounges, tables, and chairs of all varieties to complement any outdoor space,” says Burson. “Sometimes a client only has a tiny patio to work with so we show them some of our smaller tables and stools. However, if the client has a large deck they want to furnish to get more enjoyment out of the space, we show them how they can combine benches, coffee tables, gliders, and more to create the perfect seating and relaxing arrangement around the hot tub.”

Some hot tub designs lend themselves to starting the discussion about the surrounding backyard and what other ‘necessities’ the client may be interested in. Oran Wakelam, Coast Spas’ marketing manager, says his company created a specific hot tub line, which offers a vanishing-edge feature that makes it the perfect launching pad for discussion with the client about how his/her outdoor living space will be centred around the hot tub.

“We attribute the success of these hot tubs to the fact that not only do they have visual appeal, they also provide an impressive backyard focal point with the large infinity edge water-wall coupled with a raised 610-mm (24-in.) waterfall which creates a relaxing backyard paradise,” says Wakelam. “We know many outdoor seating and living areas are built directly around and below this hot tub water feature.”

Retailers that train staff to suggest products that complement the hot tub, will likely lead to additional revenues from add-on products.

Hot tub covers

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A cover is another practical point of consideration when selling a hot tub. The cover is truly necessary, but can be up-sold with value-added hydraulic lifts or high-end covers designed to last longer and hold up better to harsh winter elements. The cover is central to the hot tub and there are now many cover options available to enhance the esthetics of the patio, while at the same time providing much needed protection for any climate.

Covers are an essential component of the hot tub space; therefore, it is important retailers discuss the variety of options available.

“We only sell covers that not only stand up to the elements, but are also attractive,” says Staples. “We have had great success up-selling our customers to a rigid cover, which is available in eight colours to match the cabinet of the hot tubs we offer.

“These covers now also have six different ‘decorator’ overlays to match outdoor furniture and complement the patio décor.”

With the rise in the sales of swim spas as an alternative to a pool, many consumers are willing to spend the extra money on a high-end cover with an integrated hydraulic lift. They want ease of opening and closing; therefore, retailers should offer these options.

Hot tub covers also accomplish many esthetic objectives. For example, many customers are looking for a privacy screen from neighbours or a wind barrier (depending on the location of the hot tub). Planning for the cover and its placement when the hot tub is in use is all a part of the overall design.

“We also offer a fully automatic, lockable cover,” says Staples. “This cover has been extremely popular because it is attractive and provides shelter from the elements when soaking in the hot tub. “This cover becomes part of the backyard design for many of our customers.”

Having a plan for where the cover will go when the hot tub is being used, how it functions/operates, and how it co-ordinates with a hot tub is actually much more important than many think.

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“People often forget to plan for the hot tub cover,” says Burson. “If it is a burden to put on and take off, the cover can actually prevent the customer from enjoying their hot tub.”

For this reason, Burson’s company offers a cover with an integrated hydraulic lift that provides secure, easy-to-use, two-position opening and closing functionality.

“Ease of cover removal is often overlooked when it comes to hot tub landscape design,” says Donoghue. “Our retail store has been successfully providing design consultation services for our hot tub sales and a big part of our customer satisfaction comes from ensuring our clients have a means to open and close their hot tub with ease. Therefore, we have always offered a high-end cover and removal system with the hot tubs we sell.”

Up selling a hot tub cover instantly adds profit to a retailer’s bottom line. Adding a high-end hot tub cover can add as much as $1000 (or more) to any sale and can be easily included into a financing package. Now the same retailer that sells 50 hot tubs a year can add $50,000 in revenue by simply up selling the cover.

Hot tub ‘necessities’ enhance the backyard and boost the bottom line

Now is the time for retailers to sit down with staff and learn about all of the different hot tub ‘necessities’ that can be added to every hot tub sale. These products should be placed within a retailer’s showroom so sales staff never forgets to up sell at least one of these items on every hot tub purchase. Do not leave money on the table, by setting some ‘necessities’ sales goals, retailers can watch their revenues increase this season.

[7]Mike Genova is the owner, president, and CEO of Leisure Concepts, a manufacturer of spa accessories in Spokane, Wash. He has more than 35 years of experience in the hot tub industry and currently owns 11 patents on hot tub accessory products. Genova has pool construction and retail hot tub sales experience, including working as an independent rep for two major hot tub manufacturers. He can be reached via e-mail at mike@leisureconcepts.com[8].

Source URL: https://www.poolspamarketing.com/trade/features/increasing-profits-hot-tub-sales/

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