Future looks positive
Even after the economic downturn experienced last year, one bright sign is the emergence of several dealers who experienced double-digit sales in 2009.
One reason for last year’s positive sales figures, which is also a good sign for future sales, is the fact more concrete hot tub dealers are considering acrylic hot tub units. Instead of passing on the opportunity to sell acrylic hot tubs, these dealers are becoming more open to quoting less-expensive, pre-plumbed hot tubs.
Not too long ago, developers had no problem paying $50,000 for an installed concrete hot tub (including deck and electrical). Today, developers are quite interested in hearing about a product, which includes installation, deck and electrical for approximately $30,000 to $35,000.
Many small condominiums and boutique hotels are being designed with rooftop hot tub locations, with installations favouring lighter, prefabricated acrylic hot tubs. Replacement units, required as a result of the Virginia Graeme Baker Pool and Spa Safety Act (VGBA), have also opened up opportunities for installation of prefabricated commercial units.
Commercial sales to increase
With the limited market for commercial prefabricated acrylic hot tubs and the support expertise required, this sector will not see any drastic changes in the number of manufacturers producing these products. This market is limited because only a small percentage of health clubs, hotels and condominium recreation centres are built on a year-to-year basis in comparison to the residential housing market. However, more dealers should see an increase in commercial sales and as they become more comfortable with the market, sales of prefabricated acrylic or other non-concrete hot tubs will continue to grow, thus increasing market share.
Dale Papke is CEO of HydroTher Commercial Hot Tubs, a Mississauga, Ont.-based manufacturer of commercial hot tubs, therapy tubs and swim-in-place exercise pools. He is also co-owner of PPL Aquatic, Fitness & Spa Group Inc., which specializes in design, construction, service and staffing support for commercial pool and recreational facilities. He can be reached via e-mail at dpapke@hydrother.com.
